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Regional airports can receive up to R$4 billion from the government to attract private initiatives

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Private jets at São Paulo Catarina Executive International Airport (JHF) in São Roque, São Paulo state, Brazil, on June 21, 2023. Brazil’s only private airport plans to double the number of hangars as demand for air travel increases. executive jets increases. Photographer: Maira Erlich/Bloomberg

The federal government can make billion-dollar investments in regional airports to make them attractive and facilitate the concession of terminals to private groups from 2025 onwards, said the deputy executive secretary of the Ministry of Ports and Airports, Fábio Lavor Teixeira, this Thursday.

According to him, the amounts to be applied are being negotiated with the Ministries of Planning and Budget and Management, but could be between R$3 billion and R$4 billion.

“We are refining this process…We can anticipate investments and with that you reduce the ‘capex’ for him (investor) and this makes the process more attractive”, Teixeira told Reuters during an event in Rio de Janeiro.

“We are talking to the ministries to find out what freedom we would have to receive budgetary resources in the coming years to make the investment…it would be around R$3 billion or R$4 billion”, he added.

This week, the federal government began a campaign to present the regional airport concession project, called AmpliAR, to companies and operators already operating in the country.

Over the last few years, Brazil has promoted the concession of its main airports to the private sector, leaving only the smaller terminals, which are less profitable and even loss-making.

Santos Dumont airport, in Rio de Janeiro, is the only large terminal that remains under state control. “We have also been talking to international groups and they continue to look at airports, ports and waterways,” said Teixeira.

READ MORE: Guarulhos airport concession is extended in exchange for R$ 1.4 billion in investments

When asked which groups and companies would be interested in Brazilian regional airports, the secretary cited Fraport, Changi, Aena and other operators that have already competed for concession auctions in the country.

“They already know our modelling, our legal and regulatory framework as well and so they would have the confidence to continue investing”, he stated.

AmpliAR Program

In the first phase of the AmpliAR program, the focus will be on 51 aerodromes located in the North and Northeast, regions that according to the ministry have airport infrastructure deficits (two airports in Acre, 15 in Amazonas, one in Amapá, 11 in Pará, four in Rondônia and one in Tocantins).

According to the ministry, in the coming days, a public consultation will be opened to collect contributions from States, municipalities, concessionaires, Infraero, airlines and other entities in the sector, to discuss the model.

The idea is that the auction of airport blocks should take place in the first half of 2025. There is still no date for the launch of the notice for concessions for regional terminals, according to Teixeira.

“As the large airports have already been tendered, the definition of blocks has to be done very carefully. That’s why the strategy of making investments on the part of the government because then you keep their (operators’) revenue guaranteed, reduces the risk and the account closes in the black”, said the secretary

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