BRAZIL Looks Towards Airport Privatization

Jan. 10, 2012
Brazil is trying to find out a way to upgrade its aviation infrastructure in time for the 2014 World Cup and 2016 Summer Olympics, and carriers are concerned they will end up paying the bill for the country's airport expansion plans.

Brazil is trying to find out a way to upgrade its aviation infrastructure in time for the 2014 World Cup and 2016 Summer Olympics, and carriers are concerned they will end up paying the bill for the country's airport expansion plans.

Brazil sees airport privatization as part of the solution, with plans drawn up to award development/management contracts to private operators for Sao Paulo Guarulhos, Brasilia and Viracopos-Campinas airports. According to IATA CEO and DG Tony Tyler, there are specific bottlenecks in Sao Paulo and Rio and the government is fully knows it and clearly desires to do something about it. However, he added, carriers have some real concerns about the airport privatization process ongoing in Brazil. If a huge upfront investment is required to get the aerodromes ready for upcoming international events, carriers could end up having to belt out for it for a generation, he warned. It's very critical that the airport operator on the aviation front sets focus on offering the best service at the lowest cost, he said.

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