J.P. Morgan Asset Management Closes Airport Investments in Asia but Holds on to Canadian and Australia Airport Assets

Justin Lee

Singapore

September 30, 2023

A Porter Airlines Bombardier Q 400 approaches Billy Bishop Toronto City airport 27287082593

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J.P. Morgan Asset Management, with assets under management of US$2.8tn (as of 6/30/2023), is a global leader in investment management, offering global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity.

The asset manager’s current portfolio of airport investments includes Nieuport Aviation (operator of Billy Bishop Toronto City Airport in Canada) as well as IIF Cairns Mackay Investment Ltd. (operator of Cairns and Mackay Airport in Australia). It has recently disposed of its investments in Asia including Shanghai International Airport and Airports of Thailand.

In Feb 2019, J.P. Morgan Asset Management bought out the other members of the Nieuport Aviation Infrastructure Partners GP (Nieuport Aviation) Consortium — which owned and operated the passenger terminal Billy Bishop Toronto City Airport — including  InstarAGF Asset Management Inc., funds managed and/or advised by Partners Group, and Kilmer Van Nostrand Co. Limited.

Billy Bishop Toronto v2

© Wikimedia Commons

The consortium had initially acquired the Billy Bishop Airport passenger terminal reportedly for US$750mn from Porter Aviation Holdings in January 2015.

The airport handled 1.732 million passengers versus 2.774 million in 2019.

J.P. Morgan Asset Management also manages IIF Cairns Mackay Investment Ltd (IIF), which is a part of a consortium of shareholders which owns The Northern Queensland Airports Group, the operator of Cairns and Mackay Airports in Australia.

 

Cairns Airport Monthly Passenger Traffic Statistics (Aug 2023)

  Aug-23 Aug-22 % Change 12 mth - Aug 23 12 mth - Aug 22 % Change
Int'l 54,290 23,163 134.4% 384,562 61,655 523.7%
Dom 378,499 350,160 8.1% 3,884,393 2,997,085 29.6%
O&D 432,789 373,323 15.9% 4,268,955 3,058,740 39.6%
             
Transit & Transfer 11,011 10,044 9.6% 131,100 97,989 33.8%
Total  443,800 383,367 15.8% 4,400,055 3,156,729 39.4%

@Cairns Airport Website

 

In the 12 month period ended 31st August 2023, Cairns Airport handled 4.4 million passengers, a 39.4% increase in the number of passengers handled in the same period in 2022. International traffic grew by 523.7% to reach 384,562 passengers.

However, as of September 2023, international traffic at Cairns Airport is still lower than mid-2019 levels, and the city no longer has direct arrivals from Hong Kong or mainland China.

Nervertheless, Cairns Airport had also commenced the redevelopment of its international terminal in the early part of 2023. The redevelopment of the international terminal is being rolled out in stages to minimize passenger disruption.  The total cost of the upgrade is estimated to be around AUD$40mn to AUD$50mn.

 

Mackay Airport Monthly Passenger Traffic Statistics (Aug 2023)

  Aug-23 Aug-22 % Change 12 mth - Aug 23 12 mth - Aug 22 % Change

Domestic

 75,039 70,427 6.5% 836,088 698,897 19.6%
Transit & Transfer 4,572 5,879 -22.2% 60,611 58,815 3.1%
Total 79,611 76,306 4.3% 896,699 757,712 18.3%

@Mackay Airport Website

 

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