Airport development is closely related to the regional economic development, in which airport investment plays a crucial role.
An airport investor, as the name suggests, invests in airports, though it is different from investing in other infrastructure. Investing in an airport basically brings in a dual income stream, bringing in money both on the aeronautical side and from passengers. Well-run airports tend to bring returns in double digits, which is markedly higher than the return on investments in other assets.
But airport investors do not just sit and wait for returns to flow in. Some of them actually actively boost profits by improving on infrastructural developments, which can lead to an increase in the number of passengers. Airport investors also play a great part in helping airports in their expansion efforts, such as building a new runway.
In the case of Changi Airports International (CAI), subsidiary of Changi Airport Group, one of the top ten airport investors in the world, it plays an active role in analysing new investment opportunities, and monitor the performance of assets against investment plans.
Current investments of CAI include Tom Jobim International Airport in Brazil, Vladivostok International Airport in Russia, and King Abdulaziz International Airport in Saudi Arabia.
Airports are generally highly contested assets sought after by not just airport operators but also soverign wealth funds, infrastructure funds and pension funds. Therefore, it is impressive that CAI has won the bid for countless development projects in growing aviation markets, and left its mark on over 50 airports in more than 20 countries.2017-12-05
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