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Changi Will Return Galeão Airport to the Union, Leading the Minister of Infrastructure to Announce the Postponement of the Santos Dumont Auction
On Thursday, the 10th, it was announced by the Minister of Infrastructure, Tarcísio de Freitas, that the auction for Santos Dumont Airport will likely only take place in the second half of next year, along with the auction for Tom Jobim International Airport (Galeão).
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Singapore’s Changi company, which manages RIOGaleão, has made the decision to return the airport’s concession to the Union, through formalization with the National Civil Aviation Agency (Anac).
The auction for Santos Dumont Airport was scheduled to occur in the seventh round of airport concessions. According to the G1 Rio, the auction will now take place in the eighth round.
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“The 7th round was already being followed autonomously, with Santos Dumont isolated. This move by Changi generates another approach for us. With the return, it does not make sense for Santos Dumont to be isolated. We will study both airports together”, stated Tarcísio.
With expectations of Galeão Airport being underused, the Santos Dumont auction has drawn criticism from business leaders and authorities, particularly from the City Hall of Rio and the State Government, as it would cause losses to the city and the state.
“This is something very interesting that, in this model, we will be able to consider both airports together. What was being thought changes. And we quickly adapted to this. The return resolves a series of issues and alleviates numerous concerns”, the minister added.
For the Governor of Rio de Janeiro, Cláudio Castro (PL), the return of the airport would be a great opportunity to relaunch the auction alongside the Santos Dumont auction, as he posted on social media: “We will work to enhance both airports and achieve the best outcome for the state”, he wrote.
Additionally, Castro also stated that guidance had already been provided to the Working Group analyzing the model to ensure that Changi’s choice “becomes an instrument for recovering the airport system in Rio de Janeiro”.
Criticism from the President of Alerj
Deputy André Ceciliano of the PT, President of the Legislative Assembly (Alerj), clarified in a statement that the announcement of the return of the Galeão concession “is terrible for Brazil’s image, for the economy of Rio de Janeiro, and yet another result of the lack of coordination in the airport infrastructure of the Southeast region, especially in Rio de Janeiro”.
Ceciliano further added: “Here, the self-cannibalism allied with the Covid crisis has made Galeão’s operation unfeasible, and today it is unappealing even to large international investors. Receiving the news that the group operating the world’s most modern airport, Singapore’s, is performing poorly is dreadful for those who want to invest in infrastructure in Brazil”.
“For me, who has always fought for the balance of operation between the terminals in the Center and the Island, it is clear that, with this announcement, Santos Dumont’s bidding must be immediately suspended to discuss a new model for Rio de Janeiro that makes the operations of Galeão International Airport viable, not only for passengers but also for cargo movement and aircraft maintenance”, he concluded.
Compensations to Galeão Airport Concessionaires
According to Tarcísio de Freitas, Changi and Infraero will need to be compensated by the Government. However, there is a possibility that the Union will assume the payment or that the new concessionaire, selected via an annual grant payment, will do so.
The National Secretary of Civil Aviation, Ronei Saggioro, explained that Infraero should also be compensated because the public company is a minority partner of Changi in Galeão, holding 49% of the concession.
“The special purpose company has 51% ownership by Changi, and 49% ownership by Infraero. So, Infraero is a minority in this process, but it jointly participates through the concessionaire in the relicitation, and it will have the right to compensation in proportion to its share”, he stated. According to Saggioro, calculations regarding the compensations will be made, and the payment will be proportional to the percentage of participation. “That’s how the mechanism works that we have already been applying in other airports as well”, the secretary concluded.
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