Minister Says Government Is Ready to Intervene in Viracopos Airport Bankruptcy

RIO DE JANEIRO, BRAZIL – Aeroportos Brasil Viracopos (ABV), which is in charge of managing the terminal, has been under judicial reorganization since May 2018. Last week, a Federal Court ruling authorized the National Civil Aviation Agency (ANAC) to resume the procedure for ending the concession.

“We have plans A, B or C for Viracopos. We are ready for the bankruptcy decree, to intervene at the airport or to accept a request for re-bidding. The studies are set in motion to make the bidding. We could do it next year”, said Brazil’s Infrastructure Minister during the inauguration ceremony of the new International Airport of Florianópolis, in Santa Catarina, on Saturday, September 28th.

According to the minister, the problem is financial rather than operational. He said that regardless of its outcome, the terminal will continue to provide services to the population, but ruled out the option of state-owned INFRAERO retaking the management of the airport.

“Most importantly, users will not be unattended. We are ready to manage the airport until the arrival of the new concessionaire,” he said.

Judicial reorganization

Viracopos is the sixth busiest terminal in the country. In May last year, the concessionaire that manages the terminal filed a petition for judicial reorganization. The consortium made up of UTC Participações, Triunfo Participações and Egis holds 51 percent of the terminal’s control and INFRAERO holds 49 percent of the ABV shares.

In the petition, the concessionaire says that there was a loss of anticipated revenues and that it has asked ANAC to revise the concession contract. The regulatory body says the company failed to carry out the terminal’s extension works and, as a result, it imposed several fines on the concessionaire.

Following the judicial ruling, ANAC said that the forfeiture proceedings may proceed to decision by the body’s board of directors. The ABV has stated it will appeal. Next Tuesday, October 1st, an assembly of creditors is scheduled to discuss the judicial reorganization plan.

Concessions

During the inauguration ceremony of the Florianópolis airport, the Minister of Infrastructure reiterated the government’s concession program, which he termed “vigorous”.

He mentioned the 6th round of airport concessions, scheduled for October next year, when 22 terminals should be auctioned, out of a total of 41, The minister additionally mentioned several highways and port terminals.

“I think that Highway BR 101, in the South, will have the notice published now in October and the auction will most likely take place in late January or early February next year,” he said. “We are examining other bids and closing the structuring of some projects that will be sent to the Federal Court of Auditors,” he said.