Abstract
Purpose This paper aims to answer the following question: Is PPP a financially viable alternative for the management of regional airports in Brazil? Design/methodology/approach The methodology is based on the case study of the innovative model of Zona da Mata Regional Airport management. It was used Value for Money as a method to compare this case with the conventional airport management alternative. Findings It was observed that, when compared to the airport management alternative through contracting third parties, the public–private partnership (PPP) provided a reduction of almost 70% of public spending on the management of this infrastructure. Besides the financial advantage, other benefits of this PPP contract were also observed. Research limitations/implications The analyses carried out in this study are not exhaustive and can be improved and remade as the life cycle of the PPP contract studied is progressed. Practical implications It was concluded, from the results found, that PPP is an efficient alternative for the management of regional airports in Brazil, and the model can be replicated for similar airports. Originality/value When analyzing the results of this innovative project of managing a regional airport through a PPP, this work made it possible to measure the positive impacts of this alternative and demonstrate the potential of the PPP as an alternative for the management of other regional airports in Brazil.
Highlights
Research limitations/implications – The analyses carried out in this study are not exhaustive and can be improved and remade as the life cycle of the private partnership (PPP) contract studied is progressed. It was concluded, from the results found, that PPP is an efficient alternative for the management of regional airports in Brazil, and the model can be replicated for similar airports
According to data from the Air Transport Yearbook of 2015 (ANAC, 2016), from 2008 to 2017, the number of passengers that paid for air transportation in the Brazilian domestic and international market increased from 63.5 to 112.5 million, which represented an increase of 77 per cent
In a context of fiscal restrictions by the Federal Government and sub-national governments, the analysis proposed in this work is mainly financial, seeking to compare, from the point of view of public spending, the alternative of managing regional airports through PPP and public management by the Government of Minas Gerais
Summary
According to data from the Air Transport Yearbook of 2015 (ANAC, 2016), from 2008 to 2017, the number of passengers that paid for air transportation in the Brazilian domestic and international market increased from 63.5 to 112.5 million, which represented an increase of 77 per cent. In the same period, the Federal Government, constitutionally responsible for the management of airports in Brazil, was unable to make large investments in the Innovation & Management Review Vol 16 No 4, 2019 pp. The strong growth of aviation, in a period of low capacity of direct investments by the public sector, was one of the reasons that led the Federal Government to promote the concession of the airports to the private initiative. Despite the success of such concessions, there is still a large number of regional state and municipal airports that require investments and modernization in the country
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