Today, the aviation industry supports 86.5 million jobs globally and contributes $4.1 trillion to global GDP, comprising 3.9% of the world economy. Airports, which facilitate the movement of 9.4 billion passengers annually, are pivotal to global connectivity and economic growth.

Innovative ownership and management solutions are crucial for financing growing infrastructure needs and addressing the energy transition,

To meet future demand, global airport capital expenditure (CAPEX) from 2021 to 2040 is forecasted to reach US$2.4 trillion, with US$1.7 trillion allocated to brownfield investments (upgrading existing infrastructure) and US$731 billion for greenfield projects (new airports)​. This investment is essential for accommodating passenger growth, preventing capacity constraints, and achieving sustainability goals such as Net Zero carbon emissions by 2050.

The Role of Private Investment

Increasing infrastructure demand highlights the vital role of private investment in airports. While Airports Council International (ACI) maintains a neutral position on airport ownership, it recognizes the need for stable, predictable, and consistent legal frameworks to encourage participation from private stakeholders.

According to ACI, in 2023, airports with private capital, including fully private, partially privatized, and public-private partnerships (PPPs), handled 45% of global passenger traffic in 2019, underscoring their significant contribution to the sector. In 2019, airport groups collectively contributed US$74 billion to the global GDP, supporting 2.7 million jobs worldwide​.

This economic impact underscores the value of private investment, particularly in markets where reliance on government spending alone is insufficient. Private investors have also driven significant CAPEX in airport development. Over the past decade, airport groups have contributed US$144 billion globally, representing 31% of brownfield investments.

In rapidly growing regions like Asia-Pacific, CAPEX intensity is notably high, reflecting the need for new facilities to keep pace with passenger volumes. Such investments enable airports to modernize infrastructure, improve efficiency, and meet evolving operational challenges. To attract continued investment, the ability to recover costs and generate proportional returns remains paramount.

Exploring Airport Management Models

Models such as the dual till arrangement, which separates aeronautical and non-aeronautical businesses for setting airport charges, are instrumental in ensuring financial sustainability while mitigating operational risks. Diverse airport management models have emerged to address evolving strategic and operational needs:

• Standalone airports: Independent gateways focus on local demand, operating efficiently under their management structures.
• Airport systems: In large metropolitan areas, multiple airports function under a single management structure, enabling resource optimization and improved connectivity.
• Airport networks: This model sustains smaller, potentially loss-making airports by cross-subsidizing operations. It is especially prevalent in regions such as Africa and Latin America, where maintaining regional connectivity is a public policy priority. 
• Airport groups: At the international or multinational level, airport groups operate gateways under a single ownership and governance structure. In 2019, airport groups handled 29% of total passenger traffic, 2.7 billion passengers globally—with Europe alone accounting for 1.7 billion. Notable groups include AENA and VINCI Airports which managed 370 million passengers and 318 million passengers ​respectively in 2024. These groups provide economic advantages and, by leveraging shared resources, enable improved workforce efficiency, as reflected in 30-40% outsourced employment ratios for smaller airports. Groups also enhance innovation and service delivery through knowledge-sharing frameworks, helping to improve performance metrics such as Airport Service Quality (ASQ) scores. Airports joining a group reported 1.3% average annual ASQ score improvements, compared to 0.9% for non-group airports.

Balancing Flexibility and Sustainability

Regardless of ownership, airport operators should be free to determine the appropriate management models best suited to meet public policy and/or strategic commercial objectives. Flexible models are essential for operational efficiency, financial sustainability, and long-term resilience.

Private investment and group models have proven their capacity to modernize infrastructure, address capacity constraints, improve service quality, and support the industry’s ambitious decarbonization goals. Moreover, airport groups foster innovation and operational improvements by centralizing governance, setting ambitious performance targets, and sharing technological advancements across their portfolios. These measures ensure that airports, regardless of size, can meet evolving demands sustainably and efficiently.

The Way Forward

To ensure a sustainable and resilient airport sector, the following actions are essential:

• Promote flexible ownership models: States must support diverse ownership structures, including private investment, PPPs, and airport groups, tailored to local needs and economic goals.

• Create stable, predictable frameworks: Establish legal and regulatory frameworks that attract private investors by ensuring stability, transparency, and consistency.

• Leverage economies of scale: Airport groups and networks should continue to share resources, expertise, and innovations to enhance operational efficiency and service quality, particularly for smaller airports.

• Facilitate capital investments: Encourage long-term CAPEX programs to modernize infrastructure, address capacity challenges, and meet future demand sustainably. 

• Balance public policy and commercial goals: Management models should integrate public policy objectives, such as regional connectivity and environmental sustainability, with commercial viability.

By adopting these measures, the airport industry can meet the growing global demand for connectivity, drive economic growth, and ensure sustainable operations that benefit stakeholders worldwide.

My acknowledgments to Patrick Lucas, Philippe Villard, and Michael Stanton-Geddes.

[Slava Cheglatonyev is Director of Economic Policy and Sustainability at Airports Council International (ACI) World. This article is adapted from one that first appeared as part of ACI World’s online blog.]

References

• ACI World (2021). Global Outlook of Airport Capital Expenditure: Meeting Sustainable Development Goals and Future Air Travel Demand. ACI World in collaboration with Oxford Economics.
• Air Transport Action Group (2024). Aviation Benefits Beyond Borders Report.
• ACI World (2024). 2024 Airport Key Performance Indicators.
• ACI World (2022). Value Creation by Airport Groups: An Oxford Economics Study.