Brazil Aviation Infrastructure

David Stewart, Head of Airports

Aviation Industry Day 2 24 August 2012, Brasilia

Maximise Air Traffic Services

Find opportunities for additional airspace improvements

Implement system and equipment efficiencies

Expand training of new technologies

Simplify approval procedures

Aviation Industry Day 3 21 August 2012, Brasilia

Congested Airports

Highly Congested

Congested

Aviation Industry Day 4 21 August 2012, Brasilia

Passenger Growth

Airport Passengers 2012 Passengers 2014

Sao Paulo (GRU) 26.77 Million 37.18 Million

Sao Paulo (CGH) 15.48 Million 20.51 Million

Brasilia 14.15 Million 21.18 Million

Rio de Janeiro (GIG) 12.23 Million 21.15 Million

Rio de Janeiro (SDU) 7.81 Million 8.72 Million

Recife 5.93 Million 8.93 Million

Sao Paulo (VCP) 5.02 Million 9.58 Million

Source: SNEA

Aviation Industry Day 5 24 August 2012, Brasilia

Issues

Poor Consultation and transparency

Lack of CAPEX efficiency

Inadequate service/performance

NEED FOR CONTINUOUS IMPROVEMENT

Aviation Industry Day 6 24 August 2012, Brasilia

Desired Approach

Open, transparent and meaningful consultation

Agreed investment priorities supported by business cases

Clear, credible and accepted benchmarking

Aviation Industry Day 7 24 August 2012, Brasilia

Desired Approach

Measurable and accountable cost efficiency targets

Service Level AgreementsRobust independent regulation and

appeals

Aviation Industry Day 8 24 August 2012, Brasilia

Typical Privatization Models

Sale of airports to private companies and financial investors

Long-term leasing of airport assets to private investors

Long-term leasing of airport facilities to airlines.

Aviation Industry Day 9 24 August 2012, Brasilia

Success Criteria?What does a “successful” privatization look

like?How should “success” be measured?

• Return on Investment?• CAPEX?• Airport Capacity?• Levels of Service?

Panel Discussion