Brazil once again deserves a historic investment to Aena, which was won this afternoon in a public auction for the largest batch of airports in the seventh round of concessions in that country. The Spanish company, which has offered without any competition, will manage 11 new places in the country, including the second with the highest passenger traffic.
The lot is headed by the São Paulo infrastructure of Congonhas, which essentially handles the domestic traffic of Sao Paulo and hosts, for example, the air bridge with Rio de Janeiro. Aena has paid 231% over the starting budget, with an initial canon of 2,450 million reais (470 million euros) compared to the 740 million reais that Civil Aviation (Anac) had set.
In addition to this amount, according to the concession regulations, 1,639 million Brazilian reais (312 million euros) must be disbursed as mandatory commitments. The total amount of the operation, therefore, is 4,089 million Brazilian reals, approximately 780 million euros.
Aena has explained that the management of these 11 airports entails an obligation to pay a variable consideration with a grace period of four years, consisting of a percentage of gross revenue that increases from 3.23% to 16.15 % annual. According to the planning and studies carried out on the necessary investments, an investment of close to 5,000 million Brazilian reais (955 million euros) is expected, 73% of which is expected to be made in the first phase of the concession. , until 2028. The signing of the contract is scheduled for february 2023.
Congonhas traffic in 2019 reached 22.8 million travelers. Together with this asset, Aena will operate for 30 years, with five more of possible extension, the airports of Campo Grande, Corumbá, Ponta Pora, Santarem, Marabá, Carajás, Altamira, Uberlandia, Uberaba and Montes Claros. Between the 11 they received 26.8 million passengers in 2019, 12% of the country’s air traffic in that year.
This step by Aena becomes its largest operation outside of Spain, above the one it already carried out in Brazil in 2019 with the award of the airports of Recife, Jazeiro do Norte, Joao Pessoa, Campina Grande, Aracaju and Maceió (Northeast Region). Then Aena offered an initial canon of 1,900 million reais (437 million euros at the time), to which investments are also added for 30 years.
long term bet
Aena has dared with this movement when the effects of the pandemic are still kicking in and traffic is in the recovery phase. The company chaired by Maurici Lucena has already closed the first half with a net result of 164 million, after two years of heavy losses due to the collapse of activity. The traffic volume of its airports is 18 percentage points from that registered in the first half of 2019.
The situation generated by Covid-19 had a major impact on his first investment in Brazil, but there has always been talk of a long-term business. The insistence by this market also challenges the economic instability generated by inflation and political noise.
Aena’s Brazilian network will increase to 17 airports, becoming the first operator of this type of infrastructure under concession in the country. In addition to this presence, it has the management of London-Luton and holdings in Mexico, Colombia and Jamaica.
15 airports auctioned. The auction promoted by Aviacion Civil in Brazil has included three lots of different sizes. In total, 15 airports have been distributed, of which 11 have gone to Aena. The assets awarded have a market share of 15.8% of domestic traffic in Brazil.
Competition. North Block 2 has been the only one for which there has been a battle between two bidders: Vinci and Consorcio Novo Norte. The lot grouped the airports of Belém and Macapá. The initial minimum fee was 56.9 million reais and the investment was 847 million reais. The package has gone to the hands of Novo Norte for 125 million reais, which implies a premium of 119%.
About the initial budget. The Campo Marte and Jecarepaguá airports have been handed over to the General Aviation group. The operator will be the XP Infra IV fund, whose bid was 141.4 million reais, which equals the starting price. Civil Aviation demands subsequent investments for a minimum of 552 million.
Doubts. The expected absence of the local operator CCR, leader in the sector in Brazil, in the fight for the largest lot auctioned, and the recent early reversal of the Viracopos airport (Campinas), have marked the auction in recent weeks.
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