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AIRPORT DEVELOPMENT International News Each Issue of Airport Development Focuses on a Different Region of the World, with Global News at the End of This Section

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AIRPORT DEVELOPMENT International News Each Issue of Airport Development Focuses on a Different Region of the World, with Global News at the End of This Section Page 1 of 14 10 February 2021 No. 1138 DEV Published biweekly – available by annual subscription only – details & order online at: www.mombergerairport.info Publisher: Martin Lamprecht [email protected] – Founding Editor: Manfred Momberger News Editors: Paul Ellis [email protected] – Marnix (Max) Groot [email protected] Momberger Airport Information by Air Trans Source Inc. – international news & data – published since 1973 AIRPORT DEVELOPMENT International News Each issue of Airport Development focuses on a different region of the world, with global news at the end of this section. A list of past focus regions published in recent years can be downloaded from the Bonus section in the subscriber pages of our website. Focus Region: South America Other Regions from page 11 ARGENTINA Aeroparque Jorge Newbery Airport, Buenos Aires’ domestic airport and the nation’s second busiest, is being upgraded, enabling the airport to handle international flights. The USD 62,56- million project will include lengthening and rehabilitation of the runway, the installation of new navigational aids, and enlargement of the passenger terminal. About USD 44 million will be used for the maintenance and rehabilitation of the runway and to extend it by 615 meters (2,000 feet). This will enable the airport to receive heavier and larger aircraft such as the Airbus 330. It will open the airport not only to flights to and from neighbouring countries but also to countries as far away as Peru. The project will be completed in February 2020 and is part of a larger program to upgrade the nation’s airports (see next article below). Some industry actors have complained that the funds are being allocated to expand the airport, when other urgent needs are pressing the entire industry, with aircraft on the ground and a low turnover due to the COVID-19 pandemic. It is estimated that air traffic will take two to three years to return to 2019 levels. In addition to this slow recovery, Latam Argentina, the second largest carrier at Aeroparque and the one that was slated to take the most advantage of the regionalization of the airport, has ceased operations. As a result, the metropolitan area will have three major airports: Ezeiza, with less air traffic because of the post-pandemic scenario; Aeroparque, expanded and with less activity than expected; and Palomar, where the low-cost airlines currently operate. #1138.1 The Argentinian government has announced that USD 1.4 billion will be invested in upgrading the country’s airports, despite the downturn due to the COVID-19 pandemic and the overall complicated socio-economic outlook in the country. The announcement was made late last summer (2020) by Mario Meoni, Argentina’s minister of transport. A total of 223 projects will be undertaken at 43 airports. Details are still sparse, but projects will include the remodelling of passenger terminals, installation of new ILS systems and runway lighting, the upgrade and construction of new control towers, and the upgrade of road infrastructure and parking lots. Investments will be made both by the government and the private sector (see next article). #1138.2 Aeropuertos Argentina 2000, Argentina’s largest airport operator, has pledged to invest USD 2.5 billion after receiving a 10-year extension for its airport concession. The company's concession was extended until 2038 after the Alberto Fernández administration extended a previous agreement, which would otherwise have ended in 2028. Aeropuertos Argentina 2000, owned by its parent company, Aeropuertos de Corporación América, operates 35 airports in the second-largest economy in South America. The move comes as the airline industry struggles to recover amid a historic crisis due to the global slowdown in travel caused by the COVID-19 pandemic. The International Air Transport Association (IATA) Copyright © 2021 - Momberger Airport Information - www.mombergerairport.info Page 2 of 14 10 February 2021 No. 1138 DEV notes that Argentina implemented the second strictest lockdown measures in the region. It estimates that passenger volumes will not return to pre-pandemic levels before 2023 or 2024. As part of the extension, the company commits to investing USD 2.5 billion and plans to spend USD 1.4 billion of that in the first seven years. The company will likely turn to the markets at some point during that period to finance its initial investment, according to Martín Eurnekian, the president of Aeropuertos Argentina 2000. The company is in talks with the government to determine how infrastructure investments will be allocated as priorities have changed because of the pandemic, said the operator's chief executive, Daniel Ketchibachian. Estimates show that Argentina has ended 2020 with a 77 percent drop in air traffic compared to 2019. Around three-quarters of the company's revenues are directly related to passenger traffic, and the rest is related to the activity of cargo, which registered a decrease in volumes, although it remained uninterrupted during the pandemic. #1138.3 BOLIVIA Bolivia is looking to turn Viru Viru Airport in Santa Cruz into an international hub. This was stated by the country's president, Jeanine Áñez, who presented and signed “Supreme Decree 4347” last fall, through which it allows "renegotiating and signing a new Memorandum of Understanding under new terms." In 2019, Groupe ADP was chosen, with the signing of a Memorandum of Understanding under the government of Evo Morales, for the design, construction, operation, maintenance and financing of the Viru Viru International Airport hub, the country’s busiest, in which ADP committed to an investment of USD 420 million. The concession will last for 30 years. With the approval of the new decree, a “Superior Council” council is created with representation from all relevant stakeholders: the ministries of Public Works, Development Planning and Economy, the Airport Administration and Auxiliary Services to Air Navigation (AASANA), and Bolivian Airport Services (SABSA). This Superior Council may modify, renegotiate, and sign a new Memorandum of Understanding with the preferred bidder. It is currently unclear what the consequences of this decree are for the MoU signed with Groupe ADP. #1138.4 BRAZIL Brasília “President Juscelino Kubitschek International Airport” will develop an airport city. Early in 2020, Brazil’s third busiest airport was granted the environmental license to develop commercial, leisure and service facilities on the airport property. Plans include the construction of a shopping centre, a hotel, an events and cultural centre, an entertainment park, a club, a multipurpose space, department stores, educational institutions, and a hospital. The total development area is 721 hectares. #1138.5 The expansion works at Fortaleza Airport has been concluded. The runway of “Pinto Martins International Airport”, the nation’s 11th busiest, has been extended by 210 meters (690 feet) to 2,755 meters (9,040 feet) in length, allowing the airport to receive larger and heavier aircraft. The expansion and rehabilitation of the passenger terminal had been completed earlier. The expansion included a new check-in area with 40 counters for domestic flights and 20 positions for international flights, eight new gates with boarding bridges, an elevated access road connecting to the departures level, and the replacement of all baggage conveyors. The airport is run by Fraport Brasil S.A. Aeroporto de Fortaleza, a subsidiary of Fraport AG Frankfurt Airport Services Worldwide. In 2017, Fraport won a 30-year concession, which started in August 20217. The operational takeover of the airport followed in early 2018. #1138.6 A project to extend the runway at Porto Alegre “Salgado Filho International Airport” is underway. The runway at the airport, the nation’s tenth busiest, will be extended from 2,280 meters Copyright © 2021 - Momberger Airport Information - www.mombergerairport.info Page 3 of 14 10 February 2021 No. 1138 DEV (7,480 feet) to 3,200 meters (10,500 meters). The project should have been underway already but was delayed by drainage issues at the airport, which needed to be studied, as well as the COVID-19 pandemic. The project is scheduled to be finalized in December 2021 but that is subject to change. A new International Cargo Terminal is also under construction. With an area of 10,615 square meters (114,260 square feet) it is twice the size of the existing facility. The spacious layout of the new complex will enable better stacking and improved storage capacity and cargo processing. The project will have new administrative areas and modern offices. The project requires an investment of USD 9.5 million and works are scheduled to end in the second half of 2021. The new International Cargo Terminal will virtually triple the cargo processing and handling capacity, from 35 thousand to 100 thousand tons per year. Several other projects have recently been completed, such as the expansion of the passenger terminal and the construction of a parking garage. Like Fortaleza, the Porto Alegre Airport is run by Fraport Brasil, a subsidiary of Fraport AG Frankfurt Airport Services Worldwide. The Porto Alegre Airport Concession Agreement is effective for 25 years from August 29th, 2017. The Concessionaire is responsible for the expansion, modernization, and maintenance of the airport infrastructure. Fraport Brasil fully took over the airport’s operations on January 2nd, 2018. #1138.7 Several projects to construct greenfield airports are likely to be delayed due to the COVID-19 pandemic. They include the New São Paulo Airport (NASP) project. The project, awarded to infrastructure company CCR, involves building a new airport to serve the Sao Paulo metropolitan area that would complement the existing airports. After the final phase is completed it should be able to process 50 million passengers annually. The runways will be built to accommodate the world's largest aircraft, such as the Airbus A380. The Capex is estimated to be at USD 2 billion.
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