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Brazil advances with concession plan for 22 major airports

16 from 2020 from September to 13: 42
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Boings of the main airlines operating in Brazil

The Court of Auditors gave the green light and the fruits of these airport concessions will result in investments in the order of 14,5 billion in 30 years

The Civil Aviation Agency of Brazil (Anac) authorized the concession of 22 airports after changes in the conditions of next bids. “Given the new economic situation and the civil aviation scenario after the Covid-19 pandemic, it was necessary to revise the demand projections for passengers, aircraft and cargo, as well as the readjustment of the economic and financial models previously adopted in this round of concessions”, Anac said in a statement.

The green light from the country's Audit Court is now the only remaining authorization for the concessions the government plans to offer through three blocks in the first quarter of 2021, combining more profitable airports with less profitable ones.

As part of the new conditions approved by Anac, the minimum tariff was reduced to 133 million reais, from 408 million for the southern block and from 22,5 million to 8,2 million in the case of the central block. For the northern block, the minimum rate was increased to 48,2 million from 38,7 million.

Concessions will require a combined investment of BRL 14,5 billion over its 30-year periods, down from the 17,8 billion originally projected.

President Jair Bolsonaro's government plans to offer a total of 43 airport concessions during his term, which ends in 2022, as part of a major push to reduce the state's role in the Brazilian economy.

Airports have been severely affected by the pandemic due to the brutal drop in passengers and experts do not foresee any short-term recovery for the struggling sector.

In the first seven months of the year, the number of domestic flights fell 51%, according to Anac.

The concession blocks

O north block will comprise the airports from Manaus, Tabatinga and Tefé in the state of Amazonas, Rio Branco and Cruzeiro do Sul in Acre, Porto Velho in Rondônia and Boa Vista in Roraima.

The airports in the central block will be Goiânia in the state of Goais, Palmas in Tocantins, Teresina in Piauí, Petrolina in Pernmabuco and São Luís and Imperatriz in Maranhão.

The southern block will comprise Curitiba, Foz do Iguaçu, Londrina and Bacacheri in the state of Paraná, Navegantes and Joinville in Santa Catarina and Pelotas, Uruguaiana and Bagé in Rio Grande do Sul.

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