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Public-Private Partnerships |
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InterVISTAS has a long track record in assisting clients on the buying and selling sides of the privatization process. Services include:
Airport Privatization & FinanceFrom facility evaluation, feasibility studies, due diligence, stakeholder negotiations to regulatory advocacy, financial analysis, cost mitigation, risk and pricing strategies, InterVISTAS staff has a long track record in assisting clients on the buying and selling sides in all aspects of the privatization process. InterVISTAS financial services optimize financial performance by tailoring revenue enhancement and cost mitigation initiatives in a way that is consistent with the unique strategic directions of each operator. The approach considers industry trends and best practices, develops risk strategies in volatile markets, and various approaches to pricing.
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 Schiphol JFK Terminal 4 Privatization Bid (U.S.A)InterVISTAS staff fully integrated with the bidding consortium (Schiphol USA/LCOR) for the development of the 42-year old International Arrivals Building (IAB) in New York. |
 Queen Alia International Airport Privatization (Jordan)InterVISTAS served as the technical consultant to the Government of Jordan and the International Finance Corporation of the World Bank as they prepared for private sector investment in the redevelopment of Queen Alia International Airport in Amman, Jordan. |
Skopje and Ohrid International Airport PPP Transaction
CONTACT
Clients
Airports
- JFK IAT T4
- Syracuse
- LAWA
- Queen Alia
- Buffalo Niagara
Airlines
- Air China
- Air New Zealand
Government and Industry
- Argentina
- Afghanistan
- New Zealand
- Japan Air Transport Institute
Reference Projects
PROJECT SHOWCASE
Schiphol JFK Terminal 4 Privatization Bid (U.S.)
InterVISTAS' staff fully integrated with the bidding consortium (Schiphol USA/LCOR) for the development of the 42-year old International Arrivals Building (IAB) in New York.
Our team provided comprehensive analytic and strategic planning support across the entire spectrum of the consortium's successful capture of the IAB Redevelopment Project.
THE RESULT: The brand-new, state-of-the art Terminal 4 at New York JFK Airport became the first privatized airport terminal in the U.S.
The retail revenues at Terminal 4 more than doubled after the new building became operational.
- Long-term macro (economically driven) and micro (based on analysis of individual airlines) traffic forecasts
- Feasibility study support, analysis and due diligence
- Development of capture strategy
- Revenue Analysis
- Peak and off-peak pricing strategy
- Facilities evaluation
- Air carrier marketing strategy
- Airport security plan
- Other operational plans for regulatory compliance
- Pre-bid through post-bid strategy development
- Negotiation support
- Tenant lease strategy and negotiations
- Public and government relations
- Financial closing and bond issuance support
- Interaction with the investment banks and rating agencies
- Operations planning and concession development
- Information technology planning
- Transition planning
PROJECT SHOWCASE
Queen Alia International Airport
PROJECT NAME: Queen Alia International Airport Privatization
CLIENT: Government of Jordan, International Finance Corporation
TIMEFRAME: June 2006 - Ongoing
Innova has served as a technical consultant to the Government of Jordan and the International Finance Corporation of the World Bank as the two prepare for private sector investment in the redevelopment of Queen Alia International Airport ("AMM")in Amman, Jordan. Innova was selected to prepare activity forecasts financial forecast at AMM.
The primary tenant at AMM is Royal Jordanian Airlines ("RJ"), which is in the process of implementing a new strategy at AMM focused on local traffic in and out of Amman as well as traffic connecting between its long-haul flights and new short-haul flights to destinations in the Levant Region (pictured). The existing terminal facilities are not appropriate to support this strategy.
Innova prepared thirty-year forecasts of activity by integrating a top-down assessment of the impact of economic activity in Jordan and the Levant Regions on aviation activity with a bottom-up analysis of how activity would likely be accommodated by RJ and other airlines at AMM as well as by other regional airports. Innova's CoPilot model was used to evaluate the viability of RJ's business plan. Innova's report included fully detailed future flight schedules for three future years critical to the development of the airport.
Innova also prepared a financial model incorporating the activity forecast that evaluates alternatives for revenue generation, operating costs, and capital expenditure plans on the value of various privatization scenarios.
- Prepared Passenger and Cargo Forecasts;
- Developed Operational Forecasts;
- Developed Commercial Plan;
- Developed Financial Model;
- Advised on appropriate privatization model;
- Evaluation of Royal Jordanian's Tenant Strategy;
- Reviewed CAPEX Plan;
- Benchmarked O&M expenses including personnel requirements.
PROJECT SHOWCASE
Development and Implementation of Regulatory Framework for Compliance with Airport Service Quality Objectives through Aeropuertos Argentinos 2000
CLIENT: Organismo Regulador del Sistema Nacional de Aeropuertos (ORSNA)
TIMEFRAME: October 1999
Innova Aviation Consulting advises the Government of Argentina on a variety of regulatory issues relating to the implementation of privatization of the Argentine airport system.
In services provided to the Organismo Regulador del Sistema Nacional de Aeropuertos (ORSNA), Innova has developed methods for measuring and achieving compliance with airport service quality objectives throughout the system operated by Aeropuertos Argentinos 2000. The methodology recognizes the positive step-wise affects that construction of new infrastructure will have on service quality and the possibility of service deterioration during construction projects. The quality measures included areas critical to safety and security ("critical areas"), airfield operating areas, terminal buildings, areas essential to high levels of service ("essential areas"), aeronautical support systems and facilities, terminal support systems and facilities, terminal roadways, and ground access capabilities.
Innova also developed a formula for adjusting aeronautical rates and charges associated with airport operations. The formula, by Argentine law, had to take into account traffic levels, cost-efficiency improvements, quality of service, compliance with investment commitments, and return on investment. Innova wove these diverse variables into a formula that incorporates incentives for satisfactory performance and penalties for unsatisfactory performance.
Finally, Innova advised ORSNA on the establishment of policies and procedures to ensure that decisions taken by that agency were fully informed by an open and transparent regulatory process. This included establishing a schedule for regulatory proceedings and rules of procedure.
PROJECT SHOWCASE
JFK International Air Terminal
CLIENT: Amsterdam Airport Schiphol
TIMEFRAME: October 1994 - Ongoing
Innova has worked extensively for Amsterdam Airport Schiphol over the last 12 years, supporting its entry into the New York market through its critical role in the JFK IAT consortium, as well as its activities at home and in privatization/airport management around the world. The majority of these projects have involved Innova traffic and operations forecasts.
For the JFK IAT project in particular, Innova was retained by Schiphol's U.S. subsidiary, Schiphol USA, to assist in obtaining the right to redevelop the 42 year old International Arrivals Building (the IAB; now known as the International Air Terminal, or IAT) at JFK International Airport in New York. Paired with LCOR, a major New York developer, and eventually Lehman Brothers in a consortium eventually to become known as JFK IAT, Schiphol prepared a winning bid on this $1.4 billion opportunity. The unique IAB redevelopment project required the developer to build the new terminal around the old one while existing facilities were used by more than six million passengers each year.
Innova's role as airport consultant included (and in many cases continues to include) traffic and operations forecasting, financial and feasibility analyses, pricing, due diligence, carrier marketing and regulatory compliance. Innova assembled a dedicated team that integrated fully with the Schiphol USA/LCOR capture team in the pre-bid, bid development, post-bid, post-win and pre-closing periods. The Team's interaction with the client was seamless. Specific services included:
- Long-term macro (economically driven) and micro (based on analysis of individual airlines) traffic forecasts that became the basis for the financing feasibility study supporting the bond issuance;
- Feasibility study support, analysis and due diligence;
- Development of capture strategy;
- Analysis of aeronautical revenues and development of the peak and off-peak pricing strategy, including creation of an advanced formulation model to evaluate various airline mix scenarios in the terminal;
- Facilities evaluation;
- Air carrier marketing strategy;
- Development of airport security plan and other operational plans for regulatory compliance, including negotiations with the FAA for approvals;
- Pre-bid through post-bid strategy development and execution and support to negotiations with the Port Authority;
- Tenant lease strategy and negotiations;
- Public and government relations;
- Support to financial closing and bond issuance of US$934.1 million, including close and extensive interaction with the investment banks and rating agencies;
- Development of several volumes of reports, together with Innova's opinion regarding the financial feasibility of the project;
- Operations planning and concession development;
- Information technology planning;
- Transition planning.
As this list demonstrates, the Innova Team provided comprehensive analytic and strategic planning support across the entire spectrum of the Schiphol USA/LCOR consortium's successful capture of the IAB Redevelopment Project. Initially, the Innova Team developed preliminary traffic forecasts and pre-feasibility studies, followed by bid preparation support and advice on bid strategy - advise that was instrumental to the consortium's success. Once the Port Authority of New York and New Jersey had elected to negotiate with the consortium, Innova helped prepare the consortium for those negotiations.
After selection, the consortium turned to Innova for leadership in preparing the analyses underlying a revised feasibility study in support of a $934 billion bond issue, including the component traffic forecasts, facility plans, peak spreading analyses, pricing analyses and regulatory strategies. The consortium also relied on Innova to develop an effective airline negotiation strategy, as well as a longer-term airline-marketing plan.
Innova developed and assisted in the implementation of the consortium's airport security plan and in its selection of a security contractor. In addition, Innova conducted a wide range of due diligence activities to ascertain the potential impact of various Port Authority actions on the viability of the project, as well as to verify the Port Authority's representations.
Currently, Innova is devising and executing strategies to secure the most advantageous mix of airline tenants. This effort includes the marketing and negotiations associated with those strategies for the construction, concession development, transition and compliance aspects of the project.
Innova prepared all busy hour and busy day forecasts and schedules (including FIS hour-by-hour flow estimates and equipment/movements by carrier) to determine the adequacy of facilities planning and its constraint on activities. This encompassed a state-of-the-art peak profiling analysis, evaluating the likelihood, and impact of individual flights being moved from peak to off peak hours and its implications for the traffic forecasts and facilities plans.
Innova also assessed the implications of the traffic flows on the number of check in desks and gate area, including the development of a gate and check in counter-processing model. Finally, Innova reviewed the financial implications of the phased expansion design of the terminal, and the likelihood of carrier movements requiring such expansion. The bond investment community and the bond rating agencies subjected all of these analyses to the strictest scrutiny.
Most recently, Innova successfully facilitated the negotiation of a letter of intent between JFK IAT and Delta Airlines, pursuant to which terminals 2, 3 and 4 at JFK will be combined into one joint terminal venture between IAT and Delta, and Delta will develop a major hub at Kennedy. Innova continues to work on all aspects of finalization, implementation and financing of this transaction.
PROJECT SHOWCASE
Queen Alia International Airport
PROJECT NAME: Queen Alia International Airport Privatization
CLIENT: Government of Jordan, International Finance Corporation
TIMEFRAME: June 2006 - Ongoing
Innova has served as a technical consultant to the Government of Jordan and the International Finance Corporation of the World Bank as the two prepare for private sector investment in the redevelopment of Queen Alia International Airport ("AMM") in Amman, Jordan. Innova was selected to prepare activity forecasts financial forecast at AMM.
The primary tenant at AMM is Royal Jordanian Airlines ("RJ"), which is in the process of implementing a new strategy at AMM focused on local traffic in and out of Amman as well as traffic connecting between its long-haul flights and new short-haul flights to destinations in the Levant Region (pictured). The existing terminal facilities are not appropriate to support this strategy.
Innova prepared thirty-year forecasts of activity by integrating a top-down assessment of the impact of economic activity in Jordan and the Levant Regions on aviation activity with a bottom-up analysis of how activity would likely be accommodated by RJ and other airlines at AMM as well as by other regional airports. Innova's CoPilot model was used to evaluate the viability of RJ's business plan. Innova's report included fully detailed future flight schedules for three future years critical to the development of the airport.
Innova also prepared a financial model incorporating the activity forecast that evaluates alternatives for revenue generation, operating costs, and capital expenditure plans on the value of various privatization scenarios.
- Prepared Passenger and Cargo Forecasts;
- Developed Operational Forecasts;
- Developed Commercial Plan;
- Developed Financial Model;
- Advised on appropriate privatization model;
- Evaluation of Royal Jordanian's Tenant Strategy;
- Reviewed CAPEX Plan;
- Benchmarked O&M expenses including personnel requirements.
