Tuesday, 24 March 2020 – 09.00–17.00

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.

What is the private sector’s appetite for investing in airports?

 

08.00 –09.00 REGISTRATION & REFRESHMENTS ON ARRIVAL

09.00 –09.30 INTRODUCTION
Charles Schlumberger, Lead Air Transport Specialist, The World Bank

09.45 – 11.00 SESSION ONE: DEMOGRAPHIC SOCIAL AND ECONOMIC TRENDS IN AIR TRANSPORT
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. An understanding of market segments based on the evolving tastes and preferences of passengers is also a vital component in capitalizing on the return on customer experience and revenue generation. 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.

11.00 – 11.30 NETWORKING REFRESHMENT BREAK

11.30 – 13.00 SESSION TWO: FINANCING AIRPORT INFRASTRUCTURE THROUGH THE BUSINESS CYCLE
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.

13.00 – 14.00 NETWORKING LUNCH

14.00 – 16.00 WBP ROUND TABLES

16.00 – 16.15 Symposium Conclusions
Charles Schlumberger, Lead Air Transport Specialist, The World Bank

19.00 – 21.00 ACI AIRPORT ECONOMICS & FINANCE CONFERENCE & EXHIBITION WELCOME RECEPTION