Tuesday, 22 September 2020 – 09.00–16.30 6th ACI-WORLD BANK ANNUAL AVIATION SYMPOSIUM The 6th ACI-World Bank Annual Aviation Symposium will be led by Charles Schlumberger, Lead Air Transport Specialist, The World Bank. Attracting senior representatives from airports, investment banks and financial institutions around the world, the Symposium will be an interactive and exciting forum of discussion. 08.00 –09.00 REGISTRATION & REFRESHMENTS ON ARRIVAL 09.00 –09.30 INTRODUCTION 09.45 – 11.00 SESSION ONE: DEMOGRAPHIC SOCIAL AND ECONOMIC TRENDS IN AIR TRANSPORT Patrick Lucas, Director, Economics, ACI World 11.00 – 11.30 NETWORKING REFRESHMENT BREAK 11.30 – 13.00 SESSION TWO: FINANCING AIRPORT INFRASTRUCTURE THROUGH THE BUSINESS CYCLE Brendan Sobie, Independent Analyst, Sobie Aviation 13.00 – 14.00 NETWORKING LUNCH 14.00 – 16.25 SESSION 3: FURTHER DETAILS TO BE ANNOUNCED SOON 16.25 – 16.30 SYMPOSIUM CONCLUSIONS 18.30 – 20.00 ACI AIRPORT ECONOMICS & FINANCE CONFERENCE & EXHIBITION WELCOME RECEPTIONWhat is the private sector’s appetite for investing in airports?
Charles Schlumberger, Lead Air Transport Specialist, The World Bank
As air travel continues to extend its reach to the world’s populations through affordable choices, the demographic composition of the world is changing. Whereas many advanced economies continue to experience an ageing population, major emerging markets have observed an expansion in their working age populations and increased living standards, which has contributed to a burgeoning middle class. The link between changes in population and income levels with air transport demand are evident. Thus, air transport forecasts are crucial for airport planning and the determination of future capacity requirements to support investment decisions. This session will provide a data-driven summary of the main demographic characteristics of the airport industry drawing on ACI’s World Airport Traffic Forecasts and the latest cutting-edge research from the ACI’s Airport Service Quality (ASQ) programme.
Dimitri Coll, Director, ASQ, ACI World
Twenty years after the historical peak of airport privatizations and the beginning of major expansions by both public and private operators, the interest of investors towards the airport sector moderated. As the U.S. economy marked the longest expansion in the American history—over 120 consecutive months as of summer 2019 following the Great Recession of 2008, and with the escalating trade tensions between the major economies, some indicators point towards a recession, with the associated slowdown in manufacturing output and downturn in business confidence.
Asset valuations across most industries including the airport sector are somewhat above historical averages, even though they can go even higher if investors believe that central banks will hold interest rates at lower levels for longer time. However, the historical patterns of late cycle point to a less favorable risk-return profile for assets as compared to the earlier phases of the business cycle, potentially representing a challenge for the airport industry in attracting financing to expand, modernize and efficiently accommodate strong air travel demand.
Michael Burns, Partner, Corporate Finance, PwC
Daniel Burkard, Deputy Chief Executive Officer, Moscow Domodedovo Airport
Charles Schlumberger, Lead Air Transport Specialist, The World Bank
