Balanced Concessions for the Airport Industry
Delivering win-win outcomes for successful airport concession contracts
We are delighted to present our global guidance booklet, Balanced Concessions for the Airport Industry, which was commissioned by The International Air Transport Association (IATA) and researched by Deloitte. This is the second report on the topic of airport privatisation produced in conjunction with IATA, with the first report Airport Ownership and Regulation, providing practical guidance for governments considering or undertaking a change in airport ownership or operating models.
IATA and Deloitte are frequently engaged by governments seeking to put airport concession contracts in place as part of private sector participation programmes. Balanced Concessions for the Airport Industry goes a step further than our first report and responds to requests for support in avoiding common issues in concession contracts, which undermine the benefit of such programmes to the aviation sector, government and wider economy.
Together with IATA, Deloitte have defined the concept of a balanced concession and identified opportunities to structure contracts to deliver ’win-win’ outcomes for all stakeholders, which include customers, consumers, communities, asset owners and concessionaires. The booklet provides guidance for decision-makers in government institutions, airports and airlines who are considering, or impacted by, common issues in airport concession contracts.
“There are opportunities to improve how airport concessions have historically been designed to provide more balanced benefits to all airport stakeholders, including consumers. The booklet explores some of the common failures in how airport concessions have typically been designed and puts forward a range of solutions to support governments better design concessions for more balanced outcomes for the industry.” said Dorian Reece, Global Airport Lead at Deloitte.