How can you identify new sources of funding for airport development?

1 Leveraging public-private partnerships

Public-private partnerships (PPPs) are agreements between public authorities and private entities to share the risks and rewards of delivering airport infrastructure and services. PPPs can provide access to private capital, expertise, and innovation, while allowing public authorities to retain control over strategic objectives, regulatory oversight, and quality standards. PPPs can take various forms, such as concessions, leases, joint ventures, or management contracts, depending on the level of involvement and responsibility of each partner. To identify potential PPP opportunities, you need to assess the feasibility, suitability, and attractiveness of your airport project, as well as the legal, regulatory, and institutional framework that enables PPPs in your jurisdiction.

2 Applying for grants and loans

Grants and loans are financial instruments that can help you fund airport development projects that have a clear public benefit, such as enhancing safety, security, accessibility, or environmental performance. Grants are non-repayable funds that are usually provided by government agencies, international organizations, or foundations, based on specific eligibility criteria and application procedures. Loans are repayable funds that are usually provided by banks, development agencies, or multilateral institutions, based on the creditworthiness and repayment capacity of the borrower. To identify potential grants and loans, you need to research the available programs and sources, understand the requirements and conditions, and prepare a compelling business case and project proposal.

3 Diversifying revenue streams

Revenue diversification is the process of generating income from different sources and activities, beyond the core aeronautical operations of an airport. Revenue diversification can help you reduce your dependence on landing fees, passenger charges, and other traditional sources of income, as well as increase your resilience to demand fluctuations and market shocks. Revenue diversification can involve expanding or optimizing your non-aeronautical services, such as retail, food and beverage, parking, advertising, or real estate development. It can also involve creating or joining new ventures, such as cargo, logistics, or tourism services. To identify potential revenue diversification opportunities, you need to analyze your current and potential customer segments, market trends, and competitive advantages.

4 Engaging stakeholders and communities

Stakeholders and communities are the groups or individuals that have an interest or influence in your airport development project, such as airlines, regulators, employees, customers, suppliers, investors, or residents. Engaging stakeholders and communities can help you identify new sources of funding for airport development, as well as gain support and legitimacy for your project. Engagement can take various forms, such as consultations, surveys, workshops, forums, or partnerships. Engagement can help you solicit feedback, ideas, suggestions, or contributions from your stakeholders and communities, as well as build trust, transparency, and accountability. To identify potential engagement strategies, you need to map your stakeholders and communities, understand their needs and expectations, and design appropriate communication and participation channels.

5 Adopting innovative technologies and practices

Innovative technologies and practices are the new or improved ways of doing things that can enhance your airport development project, such as design, construction, operation, or maintenance. Innovative technologies and practices can help you identify new sources of funding for airport development, as well as improve your efficiency, quality, and sustainability. Innovation can involve adopting or adapting existing technologies and practices from other sectors or industries, such as digitalization, automation, or circular economy. It can also involve developing or testing new technologies and practices that are specific to your airport project, such as renewable energy, biometrics, or modular design. To identify potential innovation opportunities, you need to scan the external environment, benchmark your performance, and foster a culture of creativity and experimentation.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?