PERU. Lima Airport Partners (LAP) – a Fraport majority-owned company – plans to begin a US$1.5 billion expansion of Lima Jorge Chavez International Airport in 2018, with a new passenger terminal and a second runway central to the project.
LAP and the government of Peru yesterday signed an amendment to the 2001 Lima Airport Concession, which makes it possible for LAP to move ahead with the expansion at one of South America’s fastest growing airports. The amendment outlines when and how the government should hand over land needed for the expansion of Lima International. The second runway will come in the first phase of the project, with other infrastructure following “to meet increasing traffic and to further enhance the customer experience at Lima Airport”, according to Fraport.
Peru’s capital city airport handled 18.8 million passengers in 2016 and recorded double-digit growth of +10.1% year-on-year. During the first half of 2017, Lima served about 9.7 million passengers, an increase of +8.4% compared to the same period in the previous year. Lima has registered a compound annual growth rate (CAGR) of +10.6% from 2001 through 2016. When LAP took over operations in 2001, Lima Airport received around four million passengers per year.
Fraport AG Executive Board Chairman Dr. Stefan Schulte said:
“We thank the Peruvian government for reaching this landmark agreement with Lima Airport Partners. This step forward is critical for Lima Airport’s continuing success as a win-win concession for all. One of the most successful airports in Fraport’s global portfolio, Lima has consistently achieved strong growth, a high level of customer service and recognition, and it offers great potential for Peru and South America.”
Lima Airport Partners CEO Juan José Salmón added:
“This comprehensive and mutually beneficial agreement with the Peruvian government will provide the necessary land and framework for advancing our major expansion of Lima Airport. We are proud of the achievements made during the first 16 years of the Lima Airport Concession. We are also excited to be on the threshold of developing the future potential of Lima Airport for the benefit of our passengers and partners, as well as Peru.”
Dufry recently upgraded its stores at Lima Airport, and stands to benefit from the long-term capacity increases and space expansion
The Peruvian Government granted Lima Airport Partners the concession for Lima Airport in November 2000. Officially beginning on 14 February 2001, the LAP concession now runs until 2041. LAP’s shareholders include Fraport AG with a majority stake of 70.01%, followed by IFC International Financial Corporation with 19.99% and AC Capitales SAFI S.A. of Peru with 10%.
During the first 16 years of the concession, LAP has paid out a total of about US$1.9 billion in contributions to the Peruvian state, while total capital expenditure has reached US$373 million. Currently, Lima is served by about 35 airlines flying to 23 domestic and 46 international destinations. In recent years, European carriers such as Air France, British Airways, KLM and Iberia have launched regular services to Lima. South American carriers LATAM and Avianca use Lima Airport for hub operations.
