1. Qué Pasa Magazine,Chile 2016-11-10
THE TWO WINGS OF SANTIAGO AIRPORT
ConstructionworksforSantiago airport’s new internationalterminalwillbegin
in the next few weeks. Two French companies – Groupe ADP (formerly
AéroportsdeParis)andVINCI –arein chargeof the project,bringingwith them
international experience in a myriad of other airports, such as Lisbon and Paris
– CDG. Santiago will be a joint venture and a stepping stone into the region.
AstheydescendontheirflightfromOrly,passengersnotice Lisboninternationalairport’stiredlook.
Lack of natural light, low ceilings and two over imposed runways that complicate simultaneous
landings deliver a false first impression. Despite its narrow corridors,the Portuguese hub is not at
capacity despite its almost 20 million passengers per year, a number only slightly higher than
Santiago airport’s passenger numbers even though it serves a very different purpose to Portela
airport.
French holding VINCIimplementedmany changes soon after purchasing 10 airports in Portugal at
the end of 2012. The company had to act fast to position Lisbon as one of the main international
hubs, instead of waiting for better facilities and new buildings. The approach instead, was an
investment on better technology to improve air traffic, moving low cost operations to a disused
secondary terminal, diverting international passenger flows and rearranging the shops and
restaurantlayoutto alleviateanalmostsaturatedterminal.The resultsspeakforthemselves,Lisbon
still hasn’treachedcapacitydespite apassengernumbergrowthinthe doubledigitsyearafteryear.

2. Lisbonwasthe firstexercise inthisscale forVINCIAirports,the subsidiarycreated fouryearsagoto
handle this side of the business,the same that today holds a 40% investment in Nuevo Pudahuel,
the consortiumthatwill buildSantiago’snew internationalterminal followinganinvestmentof $930
million USD. French firm Groupe ADP holds 45% and Italian construction company Astaldi the
remaining15%. Thanks to itsexperience inPortugal,VINCIhasstartedimprovementsatSantiago’s
current terminal,originallydesignedfor15 millionpassengers,aheadof the new boardingbridges,
expected to be completed by 2020. Nuevo Pudahuel will celebrate the beginning of construction
works for the new terminal, able to handle 30 million passengers a year, with a ceremony.
Santiago is the biggest project undertaken by VINCI and Groupe ADP outside of France, and this
experience willbe thedecidingfactor,aswellasdeterminingthe successbetweenthejointventure,
could be a stepping stone for each company’s growth in the region.
Paris– Charlesde Gaulle,operatedbyGroupe ADP,is currentlyracing to become Europe’sbiggest
airport; today it ranks second with 66 millionpassengers per year, just after Heathrow with 71
million.The constructionof newdepartureslounge(hallsK,LandM),the airport’scapacityhasbeen
increased from 47 million in 2006 to almost 80 million.
According to Franck Goldnadel, Groupe ADP’s Executive Director and head of Paris – Charles de
Gaulle andOrlyairports, theywanttobecome Europe’smain gateway.GoldnadelassuresthatCDG
offers the highest number of long haul international connections in Europe. The new terminals
aren’t the only way to achieve this goal; a marketing strategy designed for China, signage in
Mandarin andSkyTeamestablishing its European hub in Paris have all been determining factors.
A specialized retail division to examine passenger behavior is a key point, since retail today
represents30%of Groupe ADP’sprofits, acompanythatbills$3,200 millionUSDperyear.According
to Skytrax, CDG joined the world’s top 10 airports when it comes to leisure and services.
Santiagoairportwill benefitfromthisexpertise.BothGroupe ADPandVINCIacknowledge thatthe
current commercial premises distribution is not optimal; this will not only change for the new
terminal but the current terminal will experience some changes to improve sales, in the same
manner that both partners achieved it in CDG and Lisbon.
AntoninBeurrier–ExecutiveDirectorandHeadof InternationalOperations, mentionsthatSantiago
certainlyisa vehicle toasserttheir positioninthe continent. Despite recently sellingtheirminority
shares in 13 airports in Mexico, the group is looking to find a place in the region.Only a few days
ago, the Cuban government granted them the development of Havana, the first operation of this
kindinthe country.“We are veryactive inLatinAmericaandwe are planningtoopenanoffice next
year,”saysBeurrier,althoughhe doesn’tspecifythe countrysince otherthanSantiagoandHavana,
Groupe ADP is considering other opportunities.
One of these prospectscouldbe Riode Janeiro’sairport,where their tenderwasrankedinsecond
place.A fewweeksago, the Braziliangovernmentdisqualifiedthe winning proposal,providingthe
group with a foot in the door.
Beurrierassertsthat Latin Americais keyand the company will seekopportunitiesinairportswith
passenger numbers above 10 million a year that show potential and remark on the high growth

3. ratesof AsiaandLatinAmerica,withaconsiderationtowardsColombia, countrywhere VINCIisalso
considering prospects.
In 2012, same year that Groupe ADP bean expanding outside France, VINCI began its work in the
airport industry. After winning tender in France and Portugal, the company tried its luck in other
countriessuch as Japan and the DominicanRepublic.Todaytheyoperate 35 airports(Groupe ADP
operates21) and income ismore than$1,000 millionUSD,becomingone of VINCI’smostprofitable
subsidiaries. Latin America is also important for VINCI, but unlike Groupe ADP, size is not a
determiningfactor.Accordingto NicolasNotebaert,Headof VINCIConcessions,LatinAmericaisa
keyarea.Notebaertcontemplatesallopportunities,fromsmall terminalsliketheydoinFrance with
ToulontobigoperationssuchasKansai withalmost25millionpassengers. The companyiscurrently
tendering Medellin airport (7 million passengers) and in Asunción the Paraguayan government is
expectedtomake a decisionsoon. “Unlike the US, where airportsare managedby the state,Latin
Americais bigon the concessionsmodel.VINCIisan industryleaderandbelieve thatwe can grow
in thiscontinent,thisis whywe have investedinSantiago,the DominicanRepublicandalso in the
infrastructure sector, such as a new motorway in Bogota,” says Notebaert.
Brazil is the nextstep,but onlyafterVINCIsetsup a constructionarm inthe country.“We can’t do
it at the momentbecause the constructionsectorisinvolvedinthe LavaJato scandal,” he says and
adds that “today 60% of sales are agreed in France, we want that more than 60% come from
international markets because those are the areas growing.”
Both companies acknowledge different corporate cultures and way of doing business, but both
jointly agree that Santiago airport will benefit from better facilities and improved connectivity. A
year after taking the helm of the concession the new administrationhas opened routes to Rome,
London (fromJanuary nextyear) and low cost carrier NorwegianAirlineswill arrive in2017. There
is a common goal: positioning Santiago within the top 5 airports in Latin America.