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Brazil Airport Auctioning

By August 30, 2022 No Comments

Recently Brazil, on 18th August, at the B3 stock exchange, auctioned 15 airports for a time spread across thirty years, including three of the most vital in aviation in two of the largest cities.

One batch in the concession category includes Congonhas, where airlines contend for the most profit-making slots and serves as an essential spot for operations, warehousing, and maintenance activities.  And the other batch in the concession category includes Rio-de-Janeiro’s and Sao Paulo’s airports, Campo-de-Marte, and Jacarepagua’s.  And the final group consists of the north block- which consists of Belem and Macapa airport, both having closeness to the  Amazon entry point enjoys competitive bidding. 

Campo-de-Marte and Jacarepagua, in the aviation block, were the first to be sold at the auction for a lone bidder – XP Investimentos, a Brazilian financial group. Tulio Machado, Head- of Infrastructure Investments, later held a press conference to clarify that Egis, a French airport operator is not the partner but is in the contract for five years. And they are looking forward to utilizing the concessions awarded to benefit the aviation sector. He further stated that they plan to expand the Congonhas airport terminal and build safe operations for the aviator sector to grow. Hence with growing takeoffs and landings, revenues also swell. 

Apart from gaining through commercial revenues, XP Investimentos explore ways to take advantage of the revenues through real -estate. Like the Avenida-Olava -Fonterra holds importance from the strategic real-estate point of view, and XP Assets look forward to taking advantage of it. Along with the neighborly association, the Brazilian association for general aviation, via court, tried initially to stop the auctioning of Congonhas. The former reasoned with the increase in noise levels, with the latter proposing banning businesses from the airports, among other suggestions like building the runway, terminal, etc.

Another significant player in the race for auction bidding was CCR operates more than twenty airports but opted out due to the failure of approval from its board just two days before the auction. Another player interested in the bid was real-estate major JHFS also opted out of the auction process. 

Only 150 people witnessed the Congonhas auction, witnessing the winning bid by lone bidder Aena, a Spanish group that offered 231% above the minimum and the $342 million difference. 

 

For the northern block, live bidding took place, and the auctioneer took three minutes between the biddings till Vinci airport. Novo Norte syndicate won the bid in the auction.

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