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Financing Airports in 2020 - A Comprehensive List

Airports around the world have been suffering from steep declines in passenger traffic for most of the first half of 2020, leading to unprecedented losses in revenue.

According to ACI's forecast in May 2020, estimated decline in total airport revenues on a global scale is estimated to be US$39.2 bil in the second quarter and more than US$97 billion for 2020.

Regular cash flows from passenger operations have been severely affected and many airport operators have to obtain additional financial support from governments, commercial lenders and other institutions in order to stay liquid.

This article lists out the airport operators that have managed to obtain financial support from various sources in the first half of 2020, especially from governments.

It remains to be seen how successful the global airport industry will obtaining additional financing with the slow growth of the global economy and the need for funds to be allocated to other sectors.


On 1 May 2020, Aeropuertos Argentina 2000 (AA2000) announced that it had reached a framework agreement with a syndicate of four banks to defer payments on a three-year, US$120 mil debt facility.

On 13 Aug 2020, Argentina's Ministry of Transport announced that the country would make an investment of over US$1.4 bil in airport infrastructure over the next few years.


According to its 2Q2020 interim report, short-term loans of EUR 100.0 mil (US$118 mil) were taken up by Flughafen Wien as a result of the COVID-19 pandemic.


Sydney Airport Corporation launched a AUD 2 bil (US$1.4 bil) equity raising after reporting a AUD 53.6 mil (US$ 53.6 mil) loss after income tax for the six months to June 30.


On 3 July 2020, Bosnia's Federation government announced that it would provide BAM 2.9 mil (US$1.75 mil) in subsidies to four airports in the autonomous entity.The Mostar and Tuzla airports will get most of the money - BAM 0.93 mil (US$0.57 mil) each, while the airports in Sarajevo and Bihac will receive BAM 0.7 mil (US$0.43 mil) and BAM 0.3 (US$0.18 mil) respectively.


On May 28 2020, Brazil's National Civil Aviation Agency (ANAC) announced that it would postpone the payment of fixed and variable licenses for 6 airports in the country: Confins (MG), Galeão (RJ), Fortaleza (CE), Salvador (BA) ), Florianópolis (SC) and Porto Alegre (RS).


In 30 March 2020, Canada's Finance Minister Bill Morneau announced that the government would be waiving ground lease rents from March 2020 through to December 2020 for the 21 airport authorities that pay rent to the federal government. This support would help airports reduce cost pressures and preserve their cash flow as they deal with the effects of COVID-19 on their revenue streams. This would provide relief up to CAD 331.4 mil (US$251.7 mil), reflecting payments in the same period of 2018.


On 30 April 2020, the Ministry of Finance of the People's Republic of China announced that China would increase subsidies for small and medium-sized airports. The government would raise subsidies by 50% for airports that cross the 2 mil passenger throughput mark for the first time.


In May 2020, Copenhagen Airports entered into a two-year facility agreement totaling DKK 6.0 bil (US$0.96 bil) with a club of banks as well as waiver agreements with existing lenders, providing CPH relief from certain loan covenants until the end of June 2021; this to ensure that CPH will be able to continue to meet its financial and investment commitments.


In June 2020, The World Bank announced that it would provide the Commonwealth of Dominica with a concessional loan worth US$13 mil. Its purpose is to improve the overall regional air connectivity and upgrade the airport infrastructure to safely accommodate for diverted flights and other emergencies.


On 11 August 2020, The European Commission approved a German aid scheme to support airports in the context of the coronavirus outbreak. The scheme was approved partially based on Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU) and partially under the State aid Temporary Framework.

Under the scheme, which will be open to all operators of German airports, the German authorities at different levels (federal, state and municipal) will be able to:

1) Compensate airports for revenue losses directly caused by the coronavirus outbreak during the period 4 March - 30 June 2020, in the form of direct grants

2) Provide liquidity support in the form of grants, guarantees on loans, subsidised interest rates and deferrals of certain taxes and charges to airports facing liquidity shortages as a result of the restrictions that Germany and other Member States had to impose to limit the spread of the coronavirus.

Fraport obtained additional loans totaling nearly EUR 900 mil (US$1.07 bil) during the first quarter of 2020. On 31 March 2020, the Group had more than EUR 2.2 bil in liquid assets and committed credit lines, and since then these were additionally bolstered by more than EUR 300 mil.

It successfully placed two Eurobonds with a total volume of EUR 800 mil (US$946 mil) on the capital market in July 2020.

Hong Kong S.A.R

Airport Authority Hong Kong (AA) announced on 23 June 2020 that it had signed five-year HKD 35 bil (US$4.52 bil) loan facilities with 21 local and international banks. The facilities comprise a term loan tranche of HKD 17.5 bil and a revolving credit facility tranche of the same amount. The facilities will be used for funding AA’s capital expenditure, including that of the Three-runway System (3RS) project and for general corporate purposes.


On 7 April 2020, it was announced that the Ministry of Finance and Economic Affairs had decided to increase the share capital of Isavia ohf. by ISK 4 bil (US$29.6 mil) on the condition that the Company embark on infrastructure projects at Keflavík Airport during the course of the year.


Indonesia's President Joko Widodo issued Government Regulation No. 38/2020 regarding a PMN (state capital injection) for PT Angkasa Pura II IDR 881 bil (US$60.3 mil) on July 16 2020, with the capital injection coming in the form of state property transfers, not an allocation from the state budget (APBN).


On Aug 7 2020, Toscana Aeroporti defined an agreement with a pool of leading financial institutions comprising of Intesa Sanpaolo and BNL-BNP Paribas Group for a financing transaction of a total of EUR 85 mil (US$100.55 mil).


In the second quarter of 2020, the Grupo Aeroportuario del Pacífico, S.A.B. de C.V.(GAP) drew down on two credit lines, together representing MXN 2.0 bil (US$89.4 mil), one drew down in the Montego Bay airport for MXN 151.3 mil (US$6.8 mil), and issued long-term bond certificates (Certificados Bursátiles) for a value of MXN 4.2 bil (US$187.8 mil).

New Zealand

In April 2020, Auckland International Airport Ltd conducted an equity raising of up to NZD 1.2 bil (US$0.8 bil) via the issuance of ordinary shares in Auckland Airport, comprising an NZD 1 bil (US$0.66 bil) fully underwritten placement and a NZD 200 mil (US$ 132 mil) share purchase plan.


On 29 May 2020, KfW IPEX-Bank announced that it would provide EUR 95 mil (US$113.7 mil) worth of financing for part of the planned expansion and upgrade of Amsterdam Airport Schiphol.

The project includes a new passenger terminal, a new aircraft pier and additional infrastructure.

New Zealand

On 6 April 2020, Auckland Airport has announced that it was conducting an equity raising of up to NZD 1.2 bil (US$787.7 mil) to reinforce its balance sheet and ensure it remains well capitalised during this period of strict border controls and significantly reduced passenger numbers, with the aim of ensuring it is well positioned for a post COVID-19 recovery.


On 8 June 2020, a NOK 4.3 bil (US$486.9 mil) grant was approved by the Government of Norway to help alleviate the financial situation in Avinor AS.


On 22 May 2020, it was announced the fourteen Polish airports would be entitled to receive support under the government's anti-crisis programme, with the total amount of subsidies reaching PLN 142 mln (US$38.45 mil).


Airports in Russia will receive compensation for April–June 2020 amounting to RUB 195.4 (US$2.67) per passenger lost due to the coronavirus pandemic as compared with the second quarter of 2019.The government of Russia plans to allocate RUB 10.1 bil (US$140 mil) of subsidies to the airports for April–June 2020.

South Africa

In August 2020, South Africa’s state-controlled airports company ACSA has signed a new ZAR 3 bil loan (US$ 181 mil) with domestic banks and shelved major projects to shore up its finances in the coronavirus crisis,


Between April and May 2020, in order to strengthen the Company's liquidity, Aena signed loans with various financial institutions for a combined amount of EUR 2.3 mil (US$2.72 mil).


On 17 June 2020, the Government of Sweden proposed a capital injection of SEK 3.15 bil (US$363.2 mil) to Swedavia AB in the amending budget to be presented to the Riksdag, subject to approval from the European Commission.


In February 2020, before the outbreak of the COVID-19 pandemic in Europe, Flughafen Zurich placed a 15-year CHF 400 mil (US$ 440 mil) bond at a coupon of 0.2%. After the outbreak of the crisis, the airport operator took extensive measures to secure liquidity by suspending the dividend payment and fully drawing its existing credit facilities, of which a portion was repaid later. This was followed by a further placement of a 4-year CHF 300 (US$330 mil) bond at a coupon of 0.7% in May 2020.


Thailand's Treasury Department is considering reducing land rents for companies affected by the Covid-19. Among them is the Airports of Thailand (AOT), which requested a one-year rent reduction in land rent, citing lower revenues caused by the pandemic.

United Kingdom

On 1 May 2020, it was announced that The Northern Ireland Executive secured GBP 5.7 mil (US$7.5 mil) support for Belfast City Airport (BCA), City of Derry Airport (CODA) and to those associated airlines still operating passenger services.

On 31 July 2020, it was announced that Liverpool City Region had agreed to a loan of GBP 34 mil (US$44.75 mil) to Liverpool John Lennon Airport to "provide stability during the Covid-19 recovery period", according to the mayor. The financial package for Liverpool John Lennon Airport was approved by the combined authority amid a downturn in foreign travel

In early May 2020, Greater Manchester’s ten councils decided provide a finance package of more than GBP 260 mil (US$342.2 mil) to Manchester Airport Group amid growing fears about the impact of Covid-19.

A loan of GBP 6.8 mil (US$8.95 mil) for Cardiff Airport from the Welsh government is under consideration, after a loan GBP 21.2 mil was approved last year.

United States

The Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law by the President of the United States on 27 March 2020, includes US$10 bil in funds to be awarded as economic relief to eligible U.S. airports affected by the prevention of, preparation for, and response to the COVID-19 pandemic.

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