Brazilian President, Luiz Inacio Lula da Silva, signed a decree allowing the privatisation of Sao Gonçalo de Amarante Airport in Rio Grande do Norte state, 11km from the state capital Natal (Business News Americas/Agencia Estado, 09-Jun-2010). The decree will allow the National Civil Aviation Agency (ANAC) to commence preparation of a tender to complete the airport's construction and operate the terminal, making it the first concessioned airport in the country. The tender is expected to be launched in 2H2010 and is expected to be valued at approximately BRL1 billion (USD544 million). Camargo Correa and Andrade Gutierrez have expressed interest in the project. Phase I is budgeted at approximately BRL800 million (USD432 million) and is expected to be completed by 2012. The airport, on which construction has been stalled since 1998, has already received BRL105 million (USD57 million) in federal funding through the country's growth acceleration plan (PAC). Approximately 90% of earthworks, 10% of drainage and 25% of paving works have been completed with the Federal Government planning to invest approximately BRL155 million (USD84 million) by year-end to complete these works. However, the airport's runways, take-off and taxiing lanes have yet to be constructed. Once the airport opens in 2013, it will be the largest terminal in Latin America and the seventh largest in the world, with capacity to handle 5 million passengers p/a.
Brazil PM signs decree to privatise Sao Gonçalo de Amarante Airport
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According to data from LOT, its restructuring has left it with a fairly efficient cost base by legacy airline standards and this will be important in competing with LCCs (but there is still a cost gap with LCCs). LOT's growth will focus on long haul but will need short-haul European feed – and partnerships. Although LOT no longer appears to be considering leaving the Star Alliance, it remains excluded from American and Asian JVs. Further, those JVs preclude members from working with LOT. Partnership growth will be as critical as it will be challenging.
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The big five can be expanded into a big seven to include Turkish Airlines and the Aeroflot Group, although these two had contrasting growth rates in 2016. A chasing pack of middle sized airline groups includes three LCCs (Norwegian, Pegasus and Wizz Air) and three legacy airlines with varying challenges to establishing sustainable profitability (SAS, Air Berlin Group and Alitalia).
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