Master in Aerospace Engineering

Lecture #6: Models of airport ownership and

regulation

Airports
Prepared by: Ismael Ordóñez Manjón
 Lecture #6:
Models of airport ownership and regulation
INDEX

1. Introduction
2. Ownership and Management of airports
3. Organizational structures
4. Regulation
5. Single till vs Dual till
6. User charges (Aero Revenues)
7. Financing capital investment
8. Nominal vs real and the “per pax approach”.

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 1. Introduction
 The institutional, organizational and financial characteristic of airports are changing in
the last decades :
 Airport Privatization: the state makes the decision to transfer the airport assets to
private companies as they understand that it is the most efficient way to satisfy
the air transport needs of their people.
 Airport concessions: need of financial resources either to develop new facilities
(emerging markets as South America or Asia) or to cope with high levels of debt Gatwick: Privately owned
due to recent developments (Europe, Japan)
 We are moving from the traditional model that places airport management in the
hands of a central bureaucracy in the national government to a model that emphasize
autonomous management, typically in the form of an airport authority as well as
participation by private investors in the ownership of airports
 This transformation also has affected airport organizations as they need now to
contend with legal, financial, planning, public communications, administrative, human
Santiago de Chile: Airfield managed
resources, environmental, engineering/technical, commercial and operational issues. by the State, Terminal concession to
a private company
 As airports are transferred to private companies, concerns about their
quasimonopolistic position in serving origin and destination traffic appear. To solve this
issue, economical regulation is set to control how airports charge their users. The focus
has been on regulating aeronautical charges through target rates of return, price caps,
and restrictions on the annual rate of increase in unit charges.
 We will finally review different sources to finance capital investment projects form
government grants to bonds. The ability to obtain favorable terms for the financing
depend large part on assessments performed by credit rating agencies.
Barcelona: Managed by a state owned
company

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 2. Ownership and management of airports
 Airport ownership: We need to be careful with the term “ airport privatization”, as it generally do not mean that the
ownership of the assets are transferred from the state to a private company.
 Concession: The rights and obligation of developing, maintaining and operating the airport are transferred
(generally for a long period of time , 15 to 40 years) to a company (“the airport operator”). After this period the
asset returns to the State who can either re-concession it or keep it. This company can be either privately owned,
state owned or a combination of both. The scope of the concession is also variable. Sometimes is the full airport
what is transferred, most of the time air navigation is kept by the government and sometimes only the Passenger
Terminal is transferred to a concessionaire.
 “Full” privatization: the property of the asset is transferred to a company owned by private investors. The State
do not keep any right
 We will list the seven most common combinations of owner / operator and give some examples of airports where it is
in place.
Owned by a combination of Until the 1990s it was by far the most common Greece (excl.
national, regional, and/or local around the world. Typically, a Ministry of Atheens). Managed
government and operated by a Transportation is responsible for the management by the Ministry of
A
branch of the national of all airports in a country and appoints civil Transport
government. servants to carry out these functions at each (Government 100%)1
airports
Owned by a combination of Usual in countries with strong tradition of Chicago/ O’Hare; Los
national, reg. and/or local decentralized admin. Many of the most important Angeles /
B government and managed by a airports in the US, including some of the busiest International.
branch of the local or regional airports in the world are operated by departments
government in city or county governments.
1. The Greek government is launching a privatization process of their regional airports in different batches and also the Crete airport

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 2. Ownership and management of airports
Owned by a combination of The objective here is to obtain expert airport Contracts that former
national, reg. and/or local management, responsive to local conditions and BAA had in US airports
government and , possibly, of take advantage of best practices elsewhere. in the 90s. Fraport
C private interest and operated operating Cairo,
under a management contract Riyadh and Dakar.
by a publicly or privately
owned company

Owned by a combination of This model applies to some of the busiest airports Port Authority of New
national, regional, and/or local in the world. York and New Jersey
government and managed and The authority manages and operates the airport. (La Guardia, JFK,
D operated as an autonomous A board of directors appointed by the shareholders Newark)
airport authority (the state, local government ) acts as the authority AENA (before going to
governing body . the IPO); Schipol

Majority owned by a
combination of national, reg.
and/or local government with
private minority shareholders,
E with some shares possibly
traded publicly (stock market);
managed and operated as an
autonomous airport authority
Because of the presence of private interests in their Fraport (Frankfurt
ownership, this model require thoughtful Airport); Aéroport de
contractual and regulatory arrangements to balance Paris (Paris Airports),
and protect the interests of the general public and Aena (if privatization
those of the private investors. is performed as
planned)

1. The Greek government is launching a privatization process of their regional airports in different batches and also the Crete airport

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 2. Ownership and management of airports
Owned fully or in the Usually the airport is managed by company The best know of these cases is
majority by private that is owned by various shareholders. The HAH (owned by multiple private
investors, with some company has an independent board appointed shareholders) who runs Heathrow
shares possibly traded by the shareholders that is accountable for the , Glasgow , Aberdeen and
F
publicly, operate as an airport results. Southampton airports. Most
autonomous airport airports in the UK are operating
authority under this model (Gatwick,
Edinburgh, Lutton, Stansted…)
Concessions A private company (usually formed by financial Guarulhos (Sao Paulo), Gaelao (Rio
investors and an “airport operator”) is de Janeiro), Lima, Delhi….
G
responsible to run the airport for a certain
period of time
 Global Airport Operators: a new type of airport operator has emerged since the 1990s as a result of the airport
privatization trend.
 Fraport: apart from Frankfurt, it helds majority stakes at the airports of Antalya, Lima, Varan and Burgas (Bulgaria)
and minority stakes at the airports of Delhi, Xian, St. Petersburg and Hanover. Also has management contracts at the
airports of Cairo, Jeddah, Riyadh and Dakar.
 Aena: Owns a 51% of Luton airport in the UK, has showed interest in multiple concession processes.
 Vinci: apart form a minority stake in AdP, operates ANA (Portuguese airport authority) and has shown appetite in
many airport privatization processes
 Ferrovial Aeropuertos: operates 4 airports in the UK. Seeking to expand its activity in other airports around the
globe.
 Corporación America: Argentinian operator that also operates airports in Italy and will build the new Cusco Airport
SUBJECT: Airports © Ismael Ordóñez Manjón, 2014
 3.Organization Structures
 The structure of an airport’s organization depends on the role the
airport operator assumes in the operation of the facility. This may
vary from a largely brokering function with minimal operational
engagement in many on-airport activities (the U.S. model) to direct
line involvement in many of the airport’s functions (the European
model)

 The management structure may be divided into staff and line

functions.
 Staff departments are those who provide direct managerial
support to the airport director or general manager. Often
relatively small in size in terms of personnel, they are engaged
in decision making that has an impact on the whole organization
 Line departments are the portions of the organization engaged
in the day-to-day operation of the facility. In comparison with
the staff departments, they usually require heavy staffing. The
size of the staffing will also depend on the level of outsourced
activities or scope of the operations (e.g. the security search of
the passengers is a very staff intensive activity. Sometimes it is
kept within the airport operator as it is a key factor for
customer satisfaction. It may also be outsourced to security
companies. Even in some countries this activity has to be
performed by governmental bodies)

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 3.Organization Structures
 Some options of airport organograms:
 Option A: Staff and line departments all report directly to the airport director. This is the normal situation at
small airports. CEO

Planning Finance Eng. / Maint Operations Commercial Legal

 Option B: For larger airports. The increasingly busy line departments reports through a deputy director, while
staff departments are in a clos supportive role to the director
Director

Finance / HR Legal

COO

Eng. / Maint Operations Commercial

 Option C: A CEO to which different Chief Executive Officers report. Each of them manage a branch of the
company.
CEO

Legal CFO COO Airside

CIO CCO
HR Landside

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 3.Organization Structures
 Heathrow org-chart

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 3.Organization Structures
 Heathrow org-chart - COO

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 3.Organization Structures
 Heathrow org-chart - CFO

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 4. Regulation
 Regulation is motivated by the concerns of the potential abuse of the quasimonopolistic position that airports
enjoy in serving origin / destination traffic.
 The airport privatization movement has led to growing awareness of the need for regulatory safeguards to
protect the public interest from potential conflicts with the goals of the private investors. For example: private
investors may be less willing than publicly held entities to invest in capacity expansion projects. They may also
be more likely to increase airport user charges .
 The ICAO council has stated that airport operators may recover “the full cost, but no more” of aeronautical
facilities. Full cost includes: the cost of operations, maintenance and management and administration, as well as
interest on the capital investment, depreciation of assets, and, when conditions permit, a fair return on
investment.
 By contrast, most of the non-aeronautical revenues of airports are largely unregulated.
 There are different ways to monitor and regulate charges:
 In the great majority of countries, a central government agency is in charge of it (e.g. CAA in the UK)
 Sometimes, charges are regulated by the concession agreement for the period of the concession.
 The three most common approaches used by regulators are:
 Specify targets (or upper limits) on the rates of return on investment that airports may earn
 Mandating “upper limits” (“caps”) on the unit rates that an airport operator may charge in a particular
year
 Restricting the annual rate of increase of unit charges.
 When private investors are part of the ownership/management of the airport, apart from a return on
investment criteria, the evolution of the rates is usually linked to a certain service level and/or capital
investment program through bonuses or penalties.

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 5. Single Till vs Dual Till
The single-till regulation model
identifies all airport assets (the
Single till Hybrid till Dual till
asset base), and costs and revenues
related to these assets are Aeronautical Non-aeronautical Aeronautical Non-aeronautical Aeronautical Non-aeronautical
considered when setting up the revenues¹ revenues² revenues¹ revenues² revenues¹ revenues²
tariffs

The dual-till system divides the

company's airport assets into
regulated and non-regulated
divisions % of non-aero till
Single till Aero till or specific non- Non-aero till Aero till Non-aero till
aero services
The regulated assets usually consist
of all aviation activities, while
commercial activities comprise the
non-regulated activities Target rate
of return Target rate Target rate
Tariffs are set based on revenues, of return of return
costs and asset base related only to
regulated activities Traffic
forecast Estimation Traffic Traffic
of maximum forecast Estimation forecast Estimation
aeronautical CPI-X
Notes: of maximum of maximum
1. Aeronautical revenues typically include unit charges aeronautical CPI-X aeronautical CPI-X
landing fees, parking fees, passenger Asset unit charges unit charges
and cargo fees, control and security base3 Asset Asset
fees, infrastructure usage fee,
base3 base3
handling fee, etc
2. Non-aeronautical revenues typically
include duty free and retail,
advertising, car parking, food &
beverage, property, etc
3. In a single till environment, the asset
base (RAB) relates to all the assets of
the airport whilst in a dual till
environment, the RAB relates only to
the assets supporting the aeronautical
revenues. Finally, in a hybrid till, the The regulatory till chosen needs to balance the needs of the various stakeholders of the regulated airport
RAB relates to all the assets
supporting the revenues included in
the regulated perimeter

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 5. Single Till vs Dual Till
 Single Till: Non aeronautical revenues finance aeronautical charges.

 All variables in real terms

RAB Opening
Balance
- Non
+ Opex Aeronautical
= Revenue
Average RAB
CAPEX
Regulatory
depreciation
- Required
Aeronautical
Regulatory Return on Revenue
Depreciation RAB

= x

WACC Required Aero Revenue

RAB Closing Max. Tariff
balance (Cost of = (real terms)
X Factor
capital) Estimated Passengers

 X Factor: factor used to update every year (in real terms) the maximum tariff
 Yearly nominal increase of tariffs: RPI +/- X%
 Regulatory period (in case of UK): Five years WACC (real pre tax) = Ke x we x [1/ (1- t)] + Kd x wd
Ke = Rf + βe x ERP
Kd = Rf + Spread

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 5. Single Till vs Dual Till
 Dual Till: Non aeronautical revenues are not taken into account to set tariffs

 All variables in real terms

RAB Opening
Balance
+ Opex
=
Average RAB Required
CAPEX Aeronautical
Regulatory
depreciation Revenue
-
Regulatory Return on
Depreciation RAB

= x

WACC Required Aero Revenue

RAB Closing Max. Tariff
balance (Cost of = (real terms)
X Factor
capital) Estimated Passengers

 X Factor: factor used to update every year (in real terms) the maximum tariff
 Yearly nominal increase of tariffs: RPI +/- X%
 Regulatory period (in case of UK): Five years WACC (real pre tax) = Ke x we x [1/ (1- t)] + Kd x wd
Ke = Rf + βe x ERP
Kd = Rf + Spread

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 5. Single Till vs Dual Till
Single Till Hybrid Dual Till

• All revenues taken into account to

• Some non-aero revenues are • Two separated tills (regulated vs non
determine tariffs
Principle considered to calculate airport tariffs regulated activities)
• Non regulated revenues cross-
(e.g. car park) • No cross-subsidizing of revenues
subsidize operational costs

• Significant decrease of aeronautical

Interests for tariffs revenues • Airport charges expected to be higher • Increase of aeronautical tariffs
Airlines and pax • Limited incentive to develop traffic by than single till but lower than dual till • Commercial revenues not shared
the operator side

• Increase of costs for airlines and

• Decrease of aeronautical revenues and
Stability and • Complexity with regards to definitions passengers
commercial revenues for the airport
visibility and boundaries • Complexity with regards to definitions
operator
and boundaries
• Attractive in terms of upside potential
• Low incentive to develop commercial • High incentive to develop commercial
Incentive to bur uncertainty regarding potential
activities or to improve aeronautical activities, associated revenues kept by
improve activities change in the regulated and non-
activities airport operator
regulated baskets

Fair remuneration
• Commercial activities not fairly • All aeronautical and commercial
of capital • Fair
returned activities profitable
employed

Examples

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 5. Single Till vs Dual Till
 Arguments Supporting single till:
• The travelling public is the eventual beneficiary of
lower airline costs that result from single till, as
some or most of the savings are passed on to
customers through fare reductions in a competitive
system
• Non-aeronautical activities exist and thrive at thrive
at airports because of the passengers that airlines
bring in. Without airlines, no revenue or profit
would be derived form these activities. Airlines
therefore entitled to some of the resulting benefits
by paying lower user charges. In fact, the more
price incentives have at an airport, the more traffic
and non-aeronautical business they will generate.
• Airport operators have monopoly power regarding
non-aeronautica services and often apply
monopolistic pricing to these services. They should
not be allowed to benefit from such practices by
retaining all resulting profits, as the can du under
dual till.
SUBJECT: Airports
 Arguments Supporting dual till:
• Airlines are already protected from monopolistic
pricing through regulatory caps on the rate of return
of the airport operators can seek from aeronautical
facilities. There is no reason why airlines, which are
for-profit organizations, should not be charged for
the fair cost of the facilities and services they
require.
• Only aeronautical revenues should be subject to
economic regulation, the commercial side of the
airport business should not be a factor in such
regulation.
• At congested airports and at hubs they dominate,
airlines are unlikely to pass on to their passengers a
significant part of the cost savings they achieve
through the single till
• Single till leads to charges for aeronautical facilities
and services below the true costs; this results in
economically inefficient use of airport resources,
especially at congested airports.
• The profits generated from commercial activities at
airports reflect the premium location for such
facilities that airports provide, not monopolistic
pricing
© Ismael Ordóñez Manjón, 2014
 6. User Charges (Aero revenue)
 When analyzing airport revenues, we differentiate between:
 Aeronautical Revenues: The tariffs that are paid by the different user of the operational facilites such as runways, taxiways, air-
bridges, terminal facilities, cargo facilities , etc.
 Non aeronautical Revenues: the rest of revenues. (commercial, car park, real state, etc.)

 As we have shown, aeronautical revenues tend to be regulated in most of the airports.

 The way these aeronautical tariffs are charged to the users varies largely from one country to another. We will list some of the most usual
tariffs and explain how they are commonly calculated
 Landing fee: It is the fee that an aircraft pays for the use of the airfield, that is, of the runway and taxiway systems of the airport. In
the overwhelming number of instances, the landing fee is linked to the weight of the aircraft (usually the MTOW).
 Aircraft Parking charges: usually differentiates whether the stand is a contact one (connected to the terminal by an airbridge) or a
remote one. The amount paid use to be linked with the time of stay and whether it is a domestic or international flight. Sometimes
additional charges are added in the 400Hz network or the air conditioning support is used
 Passenger service charge or passenger fee: Use to account for the majority of the aeronautical revenue (70-85%). They intend to
cover the costs related to the use of the passenger buildings. Generally differentiate between domestic, international and transfer
passengers
 Security Charge: also paid by the passengers. Very common after the September 11 th to finance the increase in the security
measures established
 Other charges on: fuel service, cargo (usually per ton), ground handling charges, etc.
 Air Navigation charges: generally a pass-through. Usually differentiated by en-route fee , TWR control and apron control

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 7. Financing Capital Investments
 Because of the large amounts of required capital, financing airport projects is always a central concern of airport owners and operators.
SOURCES of Funds
 Government Grants (e.g. AIP in the USA and European Regional
Development Fund or EU Cohesion Fund
 Special-Purpose User Taxes (e.g Passegner Facility Charge in the
USA)
 Low-cost Loan form International or National Development Banks
(e.g. World Bank, African Development Bank, etc.)
 Operating Surpluses: It means that the airports is able to fund the
“Capex” with the cash that they generate from their operations
 Loan From Commercial Banks
 Bonds
 Private Financing against specified rights to the airport revenues:
 BOT: Build Operate Transfer contract: a private group
undertakes to finance all or part of a development project
against specified rights to its future revenues. This may
involve just a single facility , a complex or the entire airport.
In this case, the private group may become the airport
operator.
SUBJECT: Airports
COST of Funds
 The availability of airport operators to obtain favorable terms for
financing of capital investment depends in large on their credit
rating by specialized companies in this field, such as Moody’s,
Standard and Poor’s, and Fitch. Each of these companies has its own
rating methodology for airports, but the factors they take into
consideration could be summarized as follows:
 Market strength (geographic location, regional economic
characteristics such as demographics, disposable income,
etc; origin vs hub)
 Air traffic characteristics (air traffic forecast, range and
market share of airlines at the airport, strength and
commitment of these airlines to the airport)
 Physical infrastructure (utilization of existing facilities, need
of new ones…)
 Management and operations ( cost recovery method and its
adequacy to meet the airport needs, contractual terms in
airline agreements, concession contracts, etc.)
 Financing (existing debt burden, cover ratios, cash
reserves…)
 General context (political climate; environmental concerns
and disputes)
© Ismael Ordóñez Manjón, 2014
 7. Financing Capital Investments
 Example from Fitch

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 7. Financing Capital Investments
 Due to the complexity of its business model, there are a number of key criteria that need to be taken into account when valuing an airport
Capex programme
 Scale and stage of development of capex
programme
 Although increasing capacity in the long
term, reduces FCF for valuation
Revenue diversification
 Potential to increase revenues generated
from non-aeronautical activities (duty free,
other retail, food and beverage, car park,
real estate etc) and ability of the operator
to do so are key factors
 Low margin ground handling activities
generally seen as non-core and disposed
of by operators
Traffic profile
 Traffic growth potential of the airport
compared to anticipated global traffic
growth
 O&D vs transfer
 O&D traffic offers stability but price sensitive
 Transfer traffic offers reduced pressure on
charge but uncertainty in sustaining position
 Destination coverage network, domestic vs
international, leisure vs business,
seasonality factors, etc
Management control/operatorship
 A material issue for airport operators
that do not own assets, or do not have
infinite concessions
 Concession length: longer contracts reduce
major renegotiation risk and provide
visibility over future cash flows
Capital structure
 Leverage as not dangerously high (unless
large investment projects are near
completion and high capex spend is tailing  Surface available is a major concern for
off), but capital structure should be efficient
 Ability to re-lever the business is a
significant driver
SUBJECT: Airports
Geographic location
 Positioning of the region as a
leisure/business centre or transport hub
 Capital city or regional airport?
 Size and wealthiness of catchment area
 Quality of surface access infrastructure
from city centre to the airport, proximity
and intermodality
Key areas
of focus
for
investors
Land reserves
future development of airport operations of
ancillary activities
 Real estate in particular can be a significant
value driver (airport city concept)
Competitive positioning
 Major airport infrastructure with significant
landside capability, and a captive airline
and passenger base make hub status very
desirable
 Threat from airports within same catchment
area mitigated by hub status
 Risk from feasible land based means of
transport (high speed rail, roads etc),
especially on short haul routes
Capacity
 Significant land side capabilities can be
developed if there is room for expansion,
and regulations and ownership allow it
 Are runway, terminal and aprons capacity
available to accommodate future growth?
Airline base
 Exposure to financial strength and competitive
positioning of flagship carrier
 Integration within airline alliance strategy a key

factor
Ability to develop new routes or develop
relationship with new airlines to drive future traffic
growth
 Access to LCC market offers significant short-
haul traffic with unrivalled growth potential
 Trade off between full service (higher yield)
and LCC (higher volume)
Economic regulation
 Set the allowed evolution of aeronautical
tariffs on a year by year basis
 Single-till or dual-till pricing regulation
(latter is preferred)
 Dual till demonstrates regulator commitment to
user’s covering costs and hence encourages
development on non-aeronautical activities
giving top-line growth potential for airport
Cost structure
 Cost saving structure (degree of operating
leverage) to improve profitability
 Headroom available to reduce staff cost or
dispose off less profitable non-core
activities
© Ismael Ordóñez Manjón, 2014
 8. Nominal vs Real.
The per pax approach
 When we say that an amount of money is expressed in nominal terms it means that it is the revenue or cost that will be received or paid at this point in
time.
 When we say that a magnitude is expressed in real terms we eliminate the effect of inflation. Always we need to say to which point in time (usually
year) the real magnitude is referred to
 We always use magnitudes in real terms to project costs, revenues etc. in our forecasts.
 A very common tool is to calculate the revenue/cost per pax and then make assumptions on how it will evolve. It is important to apply this
methodology using magnitudes in real terms. The same is applicable when using benchmarks (to be consistent all magnitudes must be referred to the
same year)
 The easier way to transform nominal to real is by an inflation index that is calculated as follows:
2010 2011 2012 2013 2014 2015 2016
Inflation 1.8 3.2 2.4 1.4 -0.1 0.6 0.9
Inflation % 1.8% 3.2% 2.4% 1.4% -0.1% 0.6% 0.9%
Index 0.933 0.963 0.986 1.000 0.999 1.005 1.014

Year < 2013 We set 1 in the Year > 2013

Indexn+1 / year of Indexn-1 x
(1+Inflationn+1) reference (1+Inflationn)

Analysis
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Capex Nominal M€ 945 2,085 2,243 1,868 1,639 1,536 2,074 2,226 1,613 1,442 1,336 553 281 507 507 507
Capex Real (p2013) M€ p2013 - 1,288 2,758 2,879 2,327 1,976 1,788 2,349 2,422 1,761 1,546 1,388 561 281 - 504 499 490
YoY Growth % 114% 4% -19% -15% -10% 31% 3% -27% -12% -10% -60% -50%

Passengers mppa 144.6 143.1 153.8 166.1 181.3 193.6 210.5 203.9 187.6 192.8 204.4 194.2 187.4
YoY Growth % -1% 8% 8% 9% 7% 9% -3% -8% 3% 6% -5% -4% Real = Nominal / Index

Cummulated Capex M€ p2013 1,288 4,045 6,925 9,252 11,227 13,015 15,364 17,786 19,547 21,093 22,481 23,042 23,324
Cummulated pax mppa 144.6 287.7 441.5 607.7 788.9 982.5 1,193.0 1,396.9 1,584.5 1,777.3 1,981.7 2,175.9 2,363.3

Cummulated capex/ Cummulated pax

€/pax p2013 8.90 14.06 15.68 15.22 14.23 13.25 12.88 12.73 12.34 11.87 11.34 10.59 9.87
2001-2013
Cummulated capex/ Cummulated pax
€/pax p2013 2.89 1.50
2012-2013

 Tip: when inflation is positive (as normally is) magnitudes in real terms after the year of reference are lower than in nominal terms and vice-versa

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014

 References
 Main References:
 Neufville, R. / Odoni, A. (2013). Airport System: Planning, Design and Management, Mc Graw
Hill – Chap. 8 & 9
 Ashford, N. J. / Stanton, H. P. M. / Others (2013). Airport Operations, Mc Graw Hill – Chap. 1

SUBJECT: Airports © Ismael Ordóñez Manjón, 2014