New Development And Management Company Launches To Help Fuel Airport Growth
"We are on the brink of a new era in airport development and management," said Dan Chao, Executive Vice President and Managing Director of Bechtel Enterprises. "Governments around the world are seeking private sector participation and investment to improve their airport operations and increase their revenues. Our ability to bring together strong development and operations expertise, to provide equity investment, and to secure optimal financing will make Alterra a leader in this emerging privatization market."
The time is right for Alterra to launch this effort. With airport passenger demand expected to grow at a 4-5% annual rate through 2010, airport infrastructure requirements over this same period will approach US$350 billion. Historically, airports have been publicly owned and operated utilities, with limited competition. In the coming years, private sector participation in the aviation market is expected to increase dramatically, driven by increased air traffic, limited airport capacity, public sector budget constraints, deregulation, and a much more price and efficiency conscious customer base in terms of the many different users of airports. Alterra will have the benefits of Bechtel Enterprises' extensive experience as a developer and owner of successful infrastructure businesses to complement the traditional operator skills, all in one global entity. Alterra will also benefit from Bechtel's global relationships and its more than 30 years of experience in the design and construction of airport facilities.
"Bechtel's affiliation with Alterra is the latest example of a highly successful business strategy Bechtel Enterprises adopted in the early 1980s," added Jaime Guillen, Alterra's Chief Executive Officer. "Alterra, will provide a full array of services from planning, development, and investment through operations. We'll take an ownership position in airport facilities, not just for the short term, but as a continuing partner in the economic life of the communities we serve."
Alterra, through Bechtel Enterprises, has shareholder interests in London Luton Airport and is currently pursuing airport prospects in various parts of the world.
Alterra is headquartered in London, with regional offices in San Francisco, Singapore, and Mexico City.
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