Brazilian Airports Raise R$3.72 Billion for Government in Auction

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – Three European companies won concession bids for the administration of four Brazilian airports on Thursday, raising more than R$3.72 (US$1.2 billion) billion for the government.

The government hailed this successful auction, which obtained a 23 percent premium over what was initially expected, of R$3.01 billion, as a sign of the restoration of the country’s credibility by foreign investors.

“[The Success of auction] reveals the re-establishment of credibility and confidence in the country,” said Brazil’s president, Michel Temer on video through his social media.

“It was rumored that there would not even be bidders, but there were several bidders and a premium of about R$700 million. An absolute success,” Temer concluded.

Germany’s Fraport AG Frankfurt Airport Services group was awarded the airports of Fortaleza, for R$425 million (premium of 18.5 percent) and Porto Alegre, for R$290.5 million, (premium of 852.12 percent).

France’s Vici Airports won the concession for the Salvador airport for R$660.9 million (113 percent premium), while Swiss company Zurich International Airport AG won the concession for the Florianopolis airport by bidding R$83.3 million (58 percent premium).

“This result is extremely important because we are making an effort to get the country back on track and resume domestic and foreign investment, thereby generating thousands of jobs,” said Private Partnership Investment (PPI) Minister, Moreira Franco.

During a brief conversation with journalists after the auction, he added, “They are all companies with a tradition abroad and presence in airports that are very well evaluated.”

According to Moreira Franco passengers will start to see soon a change in service quality in these airports, with more comfort and state-of-the-art technology at the terminals.

ANAC (Brazilian Aviation Regulatory Agency) said the four terminals auctioned off on Thursday transport twelve percent of the total number of airline passengers in the country and the bids combined represent the largest private contribution to the airport system to date.