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Federal government raises R $ 3.7 billion with auction of four airports

PPI

Winning bidders expected to invest R$ 6.6 billion in projects to improve services in Fortaleza, Salvador, Florianópolis and Porto Alegre

The federal government raised R$ 3.72 billion with the concession of four Brazilian airports this Thursday (16). The result was better than initial estimates of R$ 3.014 billion, which means a 23% premium for the actual amounts.

The four airports involved, namely those of Fortaleza (state of Ceará), Salvador (Bahia), Florianópolis (Santa Catarina) and Porto Alegre (Rio Grande do Sul), will now be operated by private enterprise. The expectation is that the winning bidders will invest R$ 6.6 billion to improve services. Projects planned include extensions of passenger terminals, aircraft aprons and landing and takeoff strips, as well as increases in the number of boarding bridges and car park availability.

Data from the Ministry of Transport, Ports and Civil Aviation shows that the four airports account for 11.6% of all passenger flow in Brazil, as well as 12.6% of cargo and 8.6% of all aircraft.

German company Fraport AG Frankfurt Airport Services won the auctions to operate both the Fortaleza and Porto Alegre airports. The Salvador auction was won by French operator Vinci Airports, and the Florianópolis airport will be operated by Zurich Airport AG (Switzerland).

How the auctions work

As determined in the bid notice, the four airports were auctioned simultaneously. The winner was the company which offered the highest signing bonus (or "initial fixed contribution", i.e. the minimum auction amount allowed plus the premium offered). The amounts will be paid upon execution of the concession contracts.