news updates between our biweekly newsletter editions
Fraport takes full control of Slovenia's Ljubljana Airport
November 25, 2014
German Airport conglomerate Fraport has taken over a further 22.4% stake in Slovenia's Ljubljana Jože Puncik Airport’s operator Aerodrom Ljubljana and now owns 97.9% of the company. The Germans will pay 57.3 million euros for the 22.4% stake at 61.75 euros per share. The price per share equals the price Fraport paid to a consortium of sellers, including the state, last month, when it took over 75.5% of Aerodrom Ljubljana for 177.1 million euros. Fraport plans to expand passenger and cargo traffic at Ljubljana Airport, as well as increase profits and the number of employees. In a statement, the CEO of the German company, Stefan Schulte, said, “We are here as long term investors. We are looking for a long term development of Ljubljana Airport”.
The CEO of Jože Pucnik Airport, Zmago Skobir, believes the acquisition on behalf of Fraport is a major milestone in the airport’s development. Mr. Skobir expects new airlines and routes to come as the deal is finalised. Air Serbia has already announced plans to double its frequency from Belgrade this December, while Swiss International Air Lines will commence daily flights from Zurich to the Slovenian capital starting March 29, 2015. Furthermore, Adria Airways will launch new routes to Berlin and Stockholm next summer. Fraport’s development plans for Ljubljana Airport are similar to those drafted by Aerodrom Ljubljana. Its first task will be to provide an even better service to passengers and the German operator has committed itself to modernising the current passenger terminal. However, projects for the construction of a new terminal and a new runway will depend on passenger growth and are not planned in the near future.
Fraport, officially known as Frankfurt Airport Services Worldwide, manages Europe’s third busiest airport - Frankfurt. In addition, the company also runs several major airports across the world including Cairo, Delhi, Hanover, Pulkovo Airport in Saint Petersburg and Jeddah in Saudi Arabia.
Three consortiums in the second stage of Greece's airport privatization
November 25, 2014
All three consortiums interested in the privatization of Greece’s regional airports have made it to the second stage of the tender, which concerns binding bids, state sell-off fund TAIPED decided on Monday.
The fund’s board ratified a recommendation by its consultants for accepting the validity of the binding offers by Corporation America SA-METKA, by Fraport AG-Slentel Ltd and by Vinci Airports SAS-Aktor Concessions SA for the concession of the rights of use, operation and management of 14 regional airports around the country.
The next step to the completion of the tender process will take place on Tuesday, as the TAIPED board will open the money offers of the three bidders as well as the valuation of the independent assessor. However, it is highly unlikely that a preferred bidder will emerge on Tuesday, as each offer is complicated and the proposed investments in the upgrading of airports will also have to be assessed, too reports Kathimerini.
Klia2 Delay Due To MAHB's Failure To Meet Stakeholders' Requirements
November 25, 2014
Malaysia Airports Holdings Bhd (MAHB) failed to meet the requirements and proposals of the stakeholders in the construction of the new low-cost carrier terminal, klia2, which resulted in the completion delay and cost overruns from RM1.7 billion to RM4 billion.
This was the conclusion made by the Public Accounts Committee (PAC) after a one-year investigation on the project, and it subsequently proposed the Auditor-General to conduct a comprehensive audit on the construction of klia2.
PAC Chairman Datuk Nur Jazlan Mohamed said the project did not follow the original plans to build a low-cost terminal but instead was changed to a hybrid airport concept without considering the needs of the stakeholders and consumers.
MAHB was reported to have failed to complete the klia2 by its target date of September 2011 and the terminal was only opened on May 2, 2014.
Over $330M to be invested in reconstruction of Astana Airport
November 24, 2014
The total volume of investments in the reconstruction of Astana Airport in Kazakhstan will be equal to 60 billion KZT ($331.556 million; 180.96 KZT = $1), vice president of logistics at Kazakhstan Temir Zholy National Company JSC, Kanat Alpysbayev said.
He made the remarks at a briefing at the Central Communications Service under the President of Kazakhstan.
“Kazakhstan Temir Zholy also conducts work on the reconstruction of Astana Airport. The total volume of investments primarily in expanding the current passenger capacity will be equal to 60 billion KZT,” he said.
Alpysbayev added that a new terminal will be constructed and large scale reconstruction of runways and taxiways will be conducted.
The vice president said the passenger flow of the airport will increase from the current three million to seven million people per year after the reconstruction and construction of a new terminal.
Earlier, Kazakh President Nursultan Nazarbayev said that 29 billion KZT will be allocated for the reconstruction of the runway and terminal of Astana Airport in 2015.
3 years of construction for Orlando airport’s $1.1B expansion
November 24, 2014
Orlando International Airport has taken one more step closer to getting its $1.1 billion expansion going strong.
SchenkelShultz Architecture announced it completed the master plan for the Greater Orlando Aviation Authority's planned expansion and work now can get going on three major pieces of the project:
Expansion of the airport's automated people mover and $215 million intermodal transportation hub planned to accommodate three other passenger rail projects, including Central Florida's $1.3 billion commuter rail SunRail; the $2.5 billion All Aboard Florida Miami-to-Orlando intercity train; and the planned magnetic-levitation train Maglev, set to connect to the Orange County Convention Center.
Renovations of the existing ticket lobbies on the airport's third floor
$114 million in expansion and improvements for international travel on Airside 4
"Those were the three big things that came out of the capital improvement plan as part of the overall GOAA master plan," Tom Chandler, president and COO of SchenkelShultz, told Orlando Business Journal. "The process has started on all three initiatives. It's a five-year master plan, and essentially, there's going to be a series of major construction projects ongoing at the airport for the next three years. It's jobs, it's a boost to the economy — it's all the things we've been hoping for."
The bigger plan for a south terminal has up to 120 domestic and international gates, the potential for 1,000 hotel rooms, 750,000 total square feet of retail and concessions, and more.
Redesign Plans for Newark Airport's Terminal C unveiled
November 24, 2014
Newark Liberty is getting a much-needed face-lift with new designs for Terminal C, which primarily serves United Airlines.
Thanks to a $120 million investment from OTG Management, which runs chef-driven restaurants at 11 North American airports, AD100 designer David Rockwell was given free rein to design multiple areas of the terminal, from new eateries to passenger lounges. In the world of air travel, Rockwell may be best known for the marketplace at JetBlue’s T5 terminal at JFK, which opened to fanfare in 2008. Now he’s aiming to bring a similar makeover to Newark, with 55 new dining venues ranging from a noodle shop to a beer garden to a clam bar.
Technology will also be improved across the board, with nearly 6,000 iPads being added to the dining facilities as well as the gate waiting areas. Visitors will be able to swipe a credit card and order food from any of the restaurants, while iPads at the waiting areas will allow passengers to check on their flights and browse the Internet. And with 10,000 power outlets throughout the terminal, travelers will be able to power up before spending hours on an airplane—a vast improvement for anyone who’s been caught with a nearly-dead mobile phone pre-boarding.
Work has already begun, with completion expected by late 2016. See some of the designs for dining spaces and passenger lounges by the Rockwell Group.
Latin America will invest billions of dollars in airports
November 13, 2014
Latin America will invest billions of dollars next year to upgrade, expand and build new airports in one of regions with the world's fastest growing traffic, according to BNamericas' latest Intelligence Series report Outlook: Big Promises for 2015.
According to estimates from airlines operating in Latin America, about 30% of regional flights in 2013 involved airports operating at overcapacity, with the figure jumping to 35% in 2014.
Brazil has a US$2.87bn plan to build 270 small regional airports through public-private partnerships, while Mexico is expected to launch a tender for the construction of its new US$12.6bn Mexico City airport in 2015.
Chile is tendering a US$633mn concession to expand and operate Santiago's international airport, while Colombia will award two airport tenders - totaling US$333mn - for the expansion, operation and maintenance of airports serving the cities of Barranquilla, Neiva, Armenia and Popayán.
More projects are in the pipeline in Paraguay, Peru, Venezuela and Uruguay.
Bahrain Duty Free posts $15.2m net profit
November 13, 2014
Bahrain Duty Free has reported a net profit of $15.2 million in the first nine months of the year, up 12.3 per cent compared to last year.
The company’s net income rose to $5.9 million in the third quarter, which is a 44.7 per cent increase compared to the same period last year.
This exceptional growth came on the back of the disposal of an investment, earning a profit of $1.4 million.
Sales in Q3 were $18.3 million, ahead of last year by 4.6 per cent, while operating costs were down 2 per cent. Profits before investment income were 8.9 per cent.
Around 4.7 million passengers traveled through the airport during the nine-month period, an increase of 10.8 per cent, contributing significantly to the sales performance of $54.9 million.
Operating costs grew by 2.1 per cent only, resulting in operating profits increasing by 11.4 per cent.
“The first nine months profits were excellent and complemented the company’s operational and investment strategies. In addition to passengers, the marketing campaigns, product variety and enhancement to customer service impacted on increasing the sales,” said Farouk Al Moayyed, chairman of Bahrain Duty Free.
Plans For New Airport Terminal Building in Bermuda
November 13, 2014
The Government has reached an agreement with the Canadian Commercial Corporation [CCC] to pave the way for the construction of a new purpose built airport terminal building, Finance Minister Bob Richards announced today.
The Minister said the construction phase will “produce hundreds of much-needed jobs for Bermudians,” and the “financing will rely entirely on the future revenue streams from the new airport itself.”
Speaking at a press conference, Minister Richards said, “Today the Bermuda Government is announcing a historic agreement with the Canadian Commercial Corporation [CCC] to pave the way for the re-development of the Bermuda airport, including various sources of financing. This re-development will involve the construction of a new purpose built terminal building.
“The redevelopment of the Bermuda airport represents one of the most important capital projects ever undertaken on our island shores. It will play a crucial role in the renaissance of the Bermuda economy while also being one of the most costly. Its success will be paramount to all in Bermuda.”
“One might ask, ‘Why do we need a new airport?’ The airport is Bermuda‘s principal gateway, the place where travelers to our island get their first impression. What do we want that impression to be? We want that first impression to be consistent with the brand that Bermuda presents to the world and that brand can be summed up as, ‘First Tier, First Class, First World.
“That is the brand we want to convey, whether the traveler is arriving for business or leisure. Certainly the current terminal building, with sections dating back to the 1940's, does not convey that branded message.”
“Our intention is that the financing will rely entirely on the future revenue streams from the new airport itself,” added Minister Richards.