Spain's Privatisation Consultative Council (CCP) recommended (21-Oct-2013) the privatisation of up to 60% of airport operator AENA. The CPP recommended building a core group of three-to-five investors holding 20-30% of the operator, through individual shares of 5-10% each. Candidates would be invited to submit their bids, and the investors then selected from among the pool of candidates. An IPO would then be launched to bring the total amount of private capital in the operator to 60%. The CCP's recommendations were solicited by AENA and are now to go before Spain's Council of Ministers for approval before the privatisation process can begin, according to Europa Press. The Government cancelled its previous attempt to privatise AENA in 2011 due to the unfavourable investment climate at the time, and now faces the challenge of revitalising traffic at Madrid Barajas Airport to stimulate interest in the operator, as Barajas accounts for 20% of revenue. AENA is the world's largest airport operator in terms of passenger numbers and reported EUR2.7 billion in revenue in 2012 and EUR13 billion in debt. [more - original PR - Spanish]
Spanish privatisation council recommends privatising 60% of AENA; searching for 3-5 investors
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The annual airport construction overview report for 2017 focuses on Latin America and Africa, two regions that are often overlooked but which make their contribution to the global total of activity. One of them, Africa, is surprisingly strong in new airport construction, as long as the funding can be found, which is no easy task.
The total known global investment on airport projects continues to grow, and hovers close to the USD1 trillion mark; and with Asia Pacific the overall leader.
There are, however, anomalies, with some regions witnessing many projects but small investment figures, and vice versa. This report attempts to explain those anomalies while offering a breakdown of the biggest projects in each region.
AENA: Spain's airport operator must cut charges, but airline yields are already falling
After much delay, in late Jan-2017 the Spanish Council of Ministers approved the airport regulation document setting AENA's airport charges for the next five years. The headline numbers include a 2.2% annual decline in charges from 2017 to 2021, equivalent to an overall cut of 11% through the period.
The legal framework prevents tariff increases before 2025, but the outcome was in contrast with the Spanish airport group's own proposal to freeze charges. Strong traffic growth of 11% to an all time high level of 230 million passengers in 2016 may have influenced the regulator's decision.
In response, AENA has decided to remove an incentive mechanism which rewards airlines for traffic growth with airport charge discounts. The removal of discounts is estimated to offset the 11% reduction by one third.
In fact, this discount scheme has been quite effective in stimulating traffic growth in recent years. However, traffic growth in Spain was also boosted in 2016 by high airline capacity growth switched from other (risk) markets. Airline yield declines are probably noticeably heavier than AENA's regulated price reduction.