Passengers will only start to notice improvements at Congonhas in 2023 Edilson Dantas/Agência O Globo

Passengers using Congonhas Airport, in São Paulo’s South Zone, will start to see improvements in its infrastructure from 2023, according to experts consulted by O GLOBO. First come specific changes, such as a stronger Wi-Fi signal, more signage and new waiting-area seats, based on what happened at other airports conceded to the private sector. The concession contract with Aena is expected to be signed only in February.

The major structural changes, involving works to expand and improve the terminal’s infrastructure, such as boarding areas, check-in, baggage drop and claim, customs and immigration, should take place over the next five years, experts say.

— Under the tender notice, the new concessionaire will have to invest BRL 2.5 billion over the next five years. Only at the end of this period will passengers actually have a new Congonhas Airport. The difference compared to Infraero is that the private concessionaire is required to offer adequate services and infrastructure to expand the terminal’s capacity — says David Goldberg, partner and director of Terrafirma Consultoria, which prepared the market studies and economic-financial modeling for all the airports in the 7th round of concessions.

More space

In theory, this means an end to crowded boarding and arrival areas and slow baggage delivery. Today, Infraero estimates the terminal’s capacity at 17 million passengers/year. In the studies prepared for the concession, the government estimated that this number could reach 35 million in the coming years.

In the Technical, Economic and Environmental Feasibility Study (EVTEA), the consultants recommended that, to meet all the space expansion requirements, a new terminal would need to be built. The building would be erected where Gol’s maintenance hangars and headquarters, the air taxi service and the terminal’s remote apron are currently located. But the tender notice does not provide for a new terminal.

In practice, Aena is not required to build a new terminal, but will need to meet the space expansion requirements set out in the tender notice with whatever solutions it deems feasible. Aena said that, since the concession contract has not been signed, decisions will be made later.

Attorney Luis Fernando Zenid, infrastructure partner at DSA Advogados, notes that the deadline for the new concessionaire to make the improvements at Congonhas is five years, while at the other airports in the 7th round of concessions it is 36 months. This shows the complexity of modernizing an old terminal with limited space.

— The road ahead for Congonhas will not be easy, and the concessionaire will need a plan to resolve the conflicts that arise, whether with users, neighbors or airlines. Passengers will certainly have to put up with a lot of construction work in the coming years — says Zenid.

More competition

Another expected change is an increase in slots (rights to land and take off) from the current 40 to 44. This means there will be an expansion in the supply of flights and, depending on how the National Civil Aviation Agency (Anac) distributes them among airlines, competition should increase. This may be reflected in ticket prices.

— With more competition, more flights and the possibility of attracting new airlines, passengers may benefit from lower ticket prices — says infrastructure attorney Luiz Felipe Graziano, partner at Giamundo Neto Advogados.

Another change consumers will soon see is a larger offering of shops, cafés and restaurants at the terminal — giving it a “shopping mall” feel. The tender notice does not require the concessionaire to implement these changes. But this is an important source of revenue and concessionaires are interested, as retailers pay to set up shop at the airport, in addition to passing on a percentage of sales.

— Although more shops bring more competition, product prices end up being higher. This happens at any airport in the world — says Goldberg, of Terrafirma.

He notes that there will be investment in items invisible to passengers but which improve the terminal’s safety — and help expand its capacity. For example, readjusting the distance of aircraft at the fingers (jet bridges).

— It does not mean the airport is unsafe. But by correcting these small “infractions”, runway capacity is freed up, improving safety conditions — says Goldberg.

Story originally published in O Globo (in Portuguese), on 08.20.2022, by João Sorima Neto.