Excerpt on Airports from http://www.etravelblackboard.com/index.asp?id=34499&nav=44
More Profits and Growth for the Asia Pacific Aviation in 2005 Thursday, 27 January 2005 .. ... ... .. ... ... The Big Issues The major issues affecting aviation and tourism in 2005 are: .. ... ... .. ... ... 6. Airports: Capital investment requirements soar " Providing adequate airport infrastructure to meet the needs of rapid traffic growth is an ongoing priority for governments in 2005 . While SARS provided breathing space for some congested airports, notably Bangkok and Guangzhou , in 2003, the recovery and strong subsequent growth has put pressure firmly back on capacity provision. Total passenger traffic surged by around 20% at Asia Pacific and Middle East airports in 2004, including a 20-25% increase in international passengers. Capital expenditure rose sharply in 2004, with global investment (excluding expenditure on new airports) rising 27%, including a massive 94% surge in the Asia Pacific region, according to an ACI sample. The total investment of USD31.1 billion in airports was the highest annual figure since ACI began collecting data in 1995. [ACI seems to stand for Airports Council International] The strength of investment in the Asia Pacific reflects airline expansion, market liberalisation and industry developments such as the arrival of the A380 in 2006 and the rise of low cost carriers, with their unique requirements. It also signifies the increasing attractiveness of airports as investment opportunities, given expectations for substantial, continuous growth in the years ahead. Governments, too, recognise this prospect . a fact that may well lead to the resumption of privatisation efforts in 2005 in Indonesia and new sale initiatives in China and India, as well as moves by some investors in privatised airports in Australia to sell down their stakes and realise capital value. Interest in Asia's airports has spiralled as a consequence of the emerging opportunities offered by privatisation and infrastructure programmes and substantial profits reaped by private airport investors such as Macquarie Airports, the owner of Sydney Airport and a number of airports in Europe . The robust response from the investment community to the proposed sales of Delhi and Mumbai airports in India , due to proceed in the first half of 2005, indicates the perceived value of directing funds into airports offering large growth prospects. European groups and, to a lesser extent, those in North America, see airports privatisations as risk-averse opportunities to gain entry to the buoyant regional aviation market. China , in particular, will provide expansive opportunities for foreign investment in 2005 following the transfer of its provincial airports into the hands of local governments on the mainland. Essential capital for building programmes will be sourced offshore, probably through joint venture arrangements, as the mainland airports seek to accommodate expected high levels of passenger and cargo growth, and the likely additional stimulation issuing from low-cost carrier entry."
