This paper investigates the regulatory aspects of exploiting Brazilian public airports under private regime. The proposition is
that the essential difference between leased or permit grants is the level of regulatory intervention by the Government, which
then determines the legal regime to which the airport exploitation is subject. The descriptive and exploratory methodology used
is based on previous literature on airport exploitation. The results indicate that airports exploited under private regime, that is,
those granted permits, are generally subject to a lighter regulatory intervention than those exploited under public regime, which
are granted a lease, hence the level of necessary regulatory intervention is the main criterion for determining which type of
grant shall be used for a certain airport. The conclusion also indicates that the level of regulatory intervention to which an
airport is subject will depend on the value of use to the collectivity that its operations generate. The optimal granting policy is an
ideal combination of types of grants directly related to the diversification of the airport services and the different levels of
regulatory intervention that they require.
The document summarizes Mexico's new Anti-Corruption Law, which aims to crack down on corruption in public contracting. It applies to both Mexican and foreign individuals and companies involved in federal procurement. The law establishes harsh fines and debarment from future contracts for corrupt acts like bribery. It also uniquely extends liability to Mexican companies and citizens for corrupt acts committed abroad. The Public Comptroller Office will investigate complaints and impose sanctions, with no option to appeal sanctions. The law brings Mexico in line with international anti-corruption standards and aims to reduce the billions lost annually to corruption.
PARISSTM is a wearable knee protection device embedded with wireless sensors to detect, prevent, and mitigate knee injuries like ACL tears in real-time. It will monitor balance, activity levels, and knee movement data to provide performance and injury risk information to users. The goal is to introduce revolutionary protective products that improve safety. There is a large and growing global market for personal protective equipment due to regulations and innovative technologies. Sensors In Motion plans to directly market PARISSTM to individuals at high risk of knee injuries and commercial industries to effectively enter this profitable market.
The document discusses a magazine project created by the author to challenge conventions of real media products. It summarizes how the magazine uses appropriate magazine forms and layout to look realistic. The target audience is described as teenagers and young adults interested in R&B music. Images and language are tailored to this group. The author also learned new skills in photography, design and using software like Photoshop to construct the magazine product.
El documento habla sobre posibles destinos de vacaciones, incluyendo la playa, Venecia y el Coliseo, preguntándose si tendrá suerte al visitar estos lugares notables.
The document summarizes Mexico's new Anti-Corruption Law, which aims to crack down on corruption in public contracting. It applies to both Mexican and foreign individuals and companies involved in federal procurement. The law establishes harsh fines and debarment from future contracts for corrupt acts like bribery. It also uniquely extends liability to Mexican companies and citizens for corrupt acts committed abroad. The Public Comptroller Office will investigate complaints and impose sanctions, with no option to appeal sanctions. The law brings Mexico in line with international anti-corruption standards and aims to reduce the billions lost annually to corruption.
PARISSTM is a wearable knee protection device embedded with wireless sensors to detect, prevent, and mitigate knee injuries like ACL tears in real-time. It will monitor balance, activity levels, and knee movement data to provide performance and injury risk information to users. The goal is to introduce revolutionary protective products that improve safety. There is a large and growing global market for personal protective equipment due to regulations and innovative technologies. Sensors In Motion plans to directly market PARISSTM to individuals at high risk of knee injuries and commercial industries to effectively enter this profitable market.
The document discusses a magazine project created by the author to challenge conventions of real media products. It summarizes how the magazine uses appropriate magazine forms and layout to look realistic. The target audience is described as teenagers and young adults interested in R&B music. Images and language are tailored to this group. The author also learned new skills in photography, design and using software like Photoshop to construct the magazine product.
El documento habla sobre posibles destinos de vacaciones, incluyendo la playa, Venecia y el Coliseo, preguntándose si tendrá suerte al visitar estos lugares notables.
Private Participation in Infrastructure - the legal and regulatory frameworks...Mauricio Portugal Ribeiro
This document provides an overview of Brazil's legal and regulatory frameworks for private participation in infrastructure projects. Key points include:
1) Brazil has extensively privatized infrastructure sectors since the 1990s, comparable to Britain.
2) The legal framework includes laws establishing guidelines for privatization and regulating concessions.
3) Studies show private provision of infrastructure in Brazil is generally more cost-effective than public provision due to various inefficiencies. However, comparing costs remains a challenge.
4) Competition is required for concessions, but regulators lack expertise for alternative models like yardstick regulation in some sectors.
Private participation in infrastructure - Brazilian legal and institutional f...Mauricio Portugal Ribeiro
Main features of the legal and institutional framework for Private Participation in Infrastructure in Brazil, a text produced for a OECD colloquium, in 2005.
The document analyzes different modes of airport infrastructure provision in India, including government-owned airports run by the Airports Authority of India (AAI), publicly-held airports like Cochin International Airport, and airports built through public-private partnerships (PPP) like Hyderabad International Airport (HIAL) and Bangalore International Airport (BIAL). It benchmarks the performance of AAI against international airports and finds that AAI has a high dependence on aeronautical revenues, low non-aeronautical revenue generation, and low productivity. The paper examines the financing, control structures, and revenue models of different airport infrastructure modes in India.
Disclosure of contract and license in the extractive industry sector, especially in oil, gas and mining are mandatory thing. Firstly, they are important to trace the income flws from extractive industry sector, and also to secure social and environmental justice. Contract and licensing documents of extractive industry sector always involve public resources and become the basis of many public policies for its fical, social, and environmental aspects. So the public has the right to know and aware of the content of those documents. Secondly, the disclosure publicly contribute to the decreasing of corruption practices usually done by government and companies collusion.
Thrdly, contract and licensing documents have been published by many countries in the world, at least 29 countries of them, such as Colombia, Ghana, Guinea, Iraq, Liberia, Peru, Timor-Leste, Philippines and United States. Even extractive companies like Rio Tinto, ExxonMobil, British Petroleum, SOCAR, Amaco, Lukoil, Elf and Statoil, Tullow Oil, and Kosmos Energy did so. Supports for publicizing the documents also come from international institutions like World Bank Group’s International Finance Corporation (IFC), International Monetary Fund (IMF), and the International Bar Association.
Gendarmerie Drones Used in National Security Missionsijdms
This research advocates support for the continuous development and modernization of the police and gendarmic forces, analysing the use of Drones in the operational activities of the Portuguese and Spanish security, police and gendarmic forces: the GNR and the Guardia Civil. Analysing the implementation and expansion of Drones, valuing how the use of these means is advantageous for the police service and for the operations of the GNR and Guardia Civil. Due to the major changes taking place in the world, it is crucial to rethink security and Portugal is gradually adapting to this reality, resulting in new demands for daily police service. The adopted methodology is based on the inductive method that allowed the data collected through analysis to be generalized of data on Drones of the Guardia Civil, appreciating their characteristics and use, with the aim of understanding and comparing their modus operandi regarding the use of Drones in the GNR. In short, it was possible to verify the importance and potential of Drones in surveillance, reconnaissance and target tracking missions having been carried out productive and important conclusions for building Drones capacity in the GNR.
ASSESSING THE RELEVANCE OF QUANTITY SURVEYORS IN PUBLIC PRIVATE PARTNERSHIP I...Audrey Britton
This document provides background information on public-private partnerships (PPPs) and their history dating back to the 1600s. It discusses how PPPs work, involving both public and private sectors bringing complementary skills to infrastructure projects. The definitions of PPPs from an American and Canadian perspective are presented. It is noted that Nigeria faces a huge infrastructure deficit and PPPs are seen as a way to attract private sector funding to close this gap. However, there are concerns about the lack of involvement of quantity surveyors in PPP projects despite their relevant construction cost management skills. The document aims to evaluate the relevance and roles of quantity surveyors in PPPs in Nigeria.
This document proposes service bonds as an alternative method to finance public utilities. It defines service bonds as certificates representing standardized quantities of services produced by public utilities, issued in given denominations. The definition establishes that service bonds securitize ownership rights, with the security representing the defined obligation. It notes services may derive from machines/equipment, human labor, or both. The document discusses how public utilities require huge financing and burden government budgets in Muslim countries. It analyzes utilities as producing commodities or services and how this impacts financing approaches.
Chapter 10: How to contract with the Colombian GovernmentTatiana Behar Russy
The document provides an overview of Colombia's regulatory framework for public procurement and state contracting. It discusses key aspects such as:
1) The main objectives of Colombia's procurement laws which aim to promote best practices, prevent corruption, and ensure transparency.
2) The different parties that can participate in state contracts including both national and foreign natural or legal persons.
3) The various modalities for contractor selection like public tenders, abbreviated selections, and direct contracting in certain cases.
4) Key elements of state contracts such as terms, payment schedules, dispute resolution mechanisms, and penalties for non-compliance.
5) Regulations regarding foreign participation in tenders and requirements for legal documentation.
DRONES IN SURVEILLANCE MISSIONS: CASE STUDY OF THE GENDARMERIE FORCES OF THE ...IJCI JOURNAL
The objective of this work is to support the continuous development and modernization of the Gendarmerie
Forces, analyzing the use of Drones in the police activities of the Portuguese and Spanish Gendarmerie
forces, examining the extent to which the implementation and expansion of these resources represent an
advantage for the police service and operations of the Gendarmerie. Due to the great changes taking place
in the world, it is crucial to rethink state security. The convergence of internal and external threats,
together with the increase in the feeling of insecurity on a global scale, are emerging factors that require
different strategies of the security forces, especially with regard to the support tools used. Thus, there was
a need to analyze the legal panorama of the Drones used in police, military and customs missions,
verifying their classification as state aircraft, verifying the current doctrine (civil, military and police),
taking into account the analysis of these scenarios. To this end, a methodology based on the inductive
method was adopted, which made it possible to generalize the data collected through the analysis of data
on the Spanish Gendarmerie force, appreciating their characteristics and use, with the aim of comparing
the modus operandi with the Portuguese Gendarmerie force.
This document summarizes key aspects of government contracting in Colombia. It outlines five principles: objectivity in selection, procedural economy, transparency, equality, and responsibility. It notes that foreigners may participate under reciprocity agreements. All individuals and entities wishing to contract with the government, whether Colombian or foreign, must register in the bidders' registry unless foreign entities have no domicile or branch in Colombia. Contractors must submit a performance bond, with some exceptions. Public-private partnerships are allowed for up to 30% public funding of private initiative projects through public tender.
The document discusses proposals for liberalizing India's industrial and foreign exchange policies by curtailing the role of the public sector, shifting from the MRTP Act to a new Competition Act, and moving from a control-based foreign exchange regulatory regime under FERA to a more liberalized management-based system under FEMA. It outlines the historical context and rationale for these proposed policy changes and shifts towards a more market-oriented economy.
Public Private Partnerships - - Copy.docxPeterMutui1
This document discusses public-private partnerships (PPPs). It defines PPPs as agreements between governments and private companies to deliver public services or infrastructure projects. PPPs aim to leverage private sector expertise and financing to supplement traditional public sector investment. The document outlines different PPP models based on risk allocation and ownership. It also describes the key parties involved in PPPs, including governments, private investors, contractors, and a special purpose vehicle (SPV) company. Finally, it notes that PPPs have grown globally in recent decades and that Kenya has pursued several infrastructure projects using the PPP model through a dedicated PPP Directorate.
This document discusses public-private partnerships (PPPs). It defines PPPs as agreements between governments and private companies to deliver public services or infrastructure projects. PPPs aim to leverage private sector expertise and financing to supplement traditional public sector investment. The document outlines different PPP models based on risk allocation and ownership. It also describes the key parties involved in PPPs, including governments, private investors, contractors, and a special purpose vehicle (SPV) company. Finally, it notes that PPPs have grown globally in recent decades and that Kenya has pursued several infrastructure projects using the PPP model.
This document discusses public-private partnerships (PPPs). It defines PPPs as agreements between governments and private companies to deliver public services or infrastructure projects. PPPs aim to leverage private sector expertise and financing to supplement traditional public sector investment. The document outlines different PPP models based on risk allocation and ownership. It also describes the key parties involved in PPPs, including governments, private investors, contractors, and a special purpose vehicle (SPV) company. Finally, it notes that PPPs have grown globally in recent decades and that Kenya has pursued several infrastructure projects using the PPP model through a dedicated PPP Directorate.
This document provides a summary of government procurement processes in Colombia. It notes that government procurement applies to state entities at all levels and aims to ensure transparency, efficiency and effectiveness in managing public resources. The key points covered include: an overview of the legal framework and principles of government procurement in Colombia; the importance of procurement for the economy; the scope of entities covered; exceptions; pre-requisites for participating such as registering in the Single Registry of Bidders and reviewing the Annual Procurement Plan; and who is eligible to participate in procurement processes.
This document provides a summary of government procurement processes in Colombia. It explains that government procurement applies to state, decentralized, and territorial entities and follows principles of transparency, free competition, objective selection, and legality. It also describes the Electronic System for Public Procurement (SECOP) that manages procurement processes online, the Single Registry of Bidders (RUP) for registering to participate in bids, and the Annual Procurement Plan (PAA) that identifies planned government contracts. The document provides an overview of the relevant laws and requirements for participating in Colombia's government procurement processes.
This document is a legal guide for doing business in Colombia that was prepared in March 2019. It provides an introduction to Colombia's economy and legal system. The guide is divided into 12 chapters that cover various legal topics relevant to foreign investment and business operations in Colombia, such as foreign investment protection, tax regulations, intellectual property laws, and government procurement. However, the guide notes that it is for informational purposes only and does not constitute legal advice. It advises readers to consult their own legal counsel regarding investment in Colombia.
This document discusses using usufruct bonds to finance public utilities. It proposes an alternative method of financing public utilities by transferring the financing burden to utility users and private sector investors. Usufruct bonds would be based on the Ijarah (leasing) contract in Shari'ah and allow investors to share in the usufruct (benefits) of public assets like water, electricity, and transportation systems. The document explores the fiqh foundation and potential structures of usufruct bonds, and compares them to other Islamic financing instruments.
Indonesian Civil Aviation Act of 2009: Aviation Safety, Security and Climate ...inventionjournals
The purpose of this article is to describe and analyze civil aviation and climate change regulations in Indonesia. This study specifically analyze the history of these issues¸ substance of the Civil Aviation Act of 2009 such as aviation safety and security; action to be taken to reduce climate change by Indonesia in the international level such as membership of UNFCCC. Further¸ its’ commitment to support ICAO,s recommendation, environmental measure project, cooperation with IATA and other agency, discussion with Switzerland related to climate change and domestic level such as policy approach to climate change, socialization and coordination of a national action plan, eco-friendly airport, alternative fuel for aircraft operation, the emission trading scheme, establishment of national committee on climate change, aviation biofuels and renewable energy at the airport, aircraft’s bombing water to fight forest fire. Finally¸ the conclusion and recommendation
O documento discute 3 áreas que precisam ser reformadas no Brasil para estimular o empreendedorismo: 1) o regime de organização das empresas para torná-las mais flexíveis, 2) a conexão entre pesquisa e mercado para comercializar novas tecnologias, e 3) as compras públicas para apoiar soluções inovadoras.
Infraestrutura executiva - Receita depende de outro modelo - Fabiana MelloFabiana Peixoto de Mello
O documento discute os planos de investimento dos principais aeroportos brasileiros para ampliar sua capacidade até a Copa de 2014. Os consórcios de Brasília, Guarulhos e Viracopos anunciam obras em andamento para entregar novos terminais e aumentar o número de posições de embarque e estacionamento. Os investimentos somam bilhões de reais para atender à crescente demanda esperada durante os grandes eventos esportivos.
Private Participation in Infrastructure - the legal and regulatory frameworks...Mauricio Portugal Ribeiro
This document provides an overview of Brazil's legal and regulatory frameworks for private participation in infrastructure projects. Key points include:
1) Brazil has extensively privatized infrastructure sectors since the 1990s, comparable to Britain.
2) The legal framework includes laws establishing guidelines for privatization and regulating concessions.
3) Studies show private provision of infrastructure in Brazil is generally more cost-effective than public provision due to various inefficiencies. However, comparing costs remains a challenge.
4) Competition is required for concessions, but regulators lack expertise for alternative models like yardstick regulation in some sectors.
Private participation in infrastructure - Brazilian legal and institutional f...Mauricio Portugal Ribeiro
Main features of the legal and institutional framework for Private Participation in Infrastructure in Brazil, a text produced for a OECD colloquium, in 2005.
The document analyzes different modes of airport infrastructure provision in India, including government-owned airports run by the Airports Authority of India (AAI), publicly-held airports like Cochin International Airport, and airports built through public-private partnerships (PPP) like Hyderabad International Airport (HIAL) and Bangalore International Airport (BIAL). It benchmarks the performance of AAI against international airports and finds that AAI has a high dependence on aeronautical revenues, low non-aeronautical revenue generation, and low productivity. The paper examines the financing, control structures, and revenue models of different airport infrastructure modes in India.
Disclosure of contract and license in the extractive industry sector, especially in oil, gas and mining are mandatory thing. Firstly, they are important to trace the income flws from extractive industry sector, and also to secure social and environmental justice. Contract and licensing documents of extractive industry sector always involve public resources and become the basis of many public policies for its fical, social, and environmental aspects. So the public has the right to know and aware of the content of those documents. Secondly, the disclosure publicly contribute to the decreasing of corruption practices usually done by government and companies collusion.
Thrdly, contract and licensing documents have been published by many countries in the world, at least 29 countries of them, such as Colombia, Ghana, Guinea, Iraq, Liberia, Peru, Timor-Leste, Philippines and United States. Even extractive companies like Rio Tinto, ExxonMobil, British Petroleum, SOCAR, Amaco, Lukoil, Elf and Statoil, Tullow Oil, and Kosmos Energy did so. Supports for publicizing the documents also come from international institutions like World Bank Group’s International Finance Corporation (IFC), International Monetary Fund (IMF), and the International Bar Association.
Gendarmerie Drones Used in National Security Missionsijdms
This research advocates support for the continuous development and modernization of the police and gendarmic forces, analysing the use of Drones in the operational activities of the Portuguese and Spanish security, police and gendarmic forces: the GNR and the Guardia Civil. Analysing the implementation and expansion of Drones, valuing how the use of these means is advantageous for the police service and for the operations of the GNR and Guardia Civil. Due to the major changes taking place in the world, it is crucial to rethink security and Portugal is gradually adapting to this reality, resulting in new demands for daily police service. The adopted methodology is based on the inductive method that allowed the data collected through analysis to be generalized of data on Drones of the Guardia Civil, appreciating their characteristics and use, with the aim of understanding and comparing their modus operandi regarding the use of Drones in the GNR. In short, it was possible to verify the importance and potential of Drones in surveillance, reconnaissance and target tracking missions having been carried out productive and important conclusions for building Drones capacity in the GNR.
ASSESSING THE RELEVANCE OF QUANTITY SURVEYORS IN PUBLIC PRIVATE PARTNERSHIP I...Audrey Britton
This document provides background information on public-private partnerships (PPPs) and their history dating back to the 1600s. It discusses how PPPs work, involving both public and private sectors bringing complementary skills to infrastructure projects. The definitions of PPPs from an American and Canadian perspective are presented. It is noted that Nigeria faces a huge infrastructure deficit and PPPs are seen as a way to attract private sector funding to close this gap. However, there are concerns about the lack of involvement of quantity surveyors in PPP projects despite their relevant construction cost management skills. The document aims to evaluate the relevance and roles of quantity surveyors in PPPs in Nigeria.
This document proposes service bonds as an alternative method to finance public utilities. It defines service bonds as certificates representing standardized quantities of services produced by public utilities, issued in given denominations. The definition establishes that service bonds securitize ownership rights, with the security representing the defined obligation. It notes services may derive from machines/equipment, human labor, or both. The document discusses how public utilities require huge financing and burden government budgets in Muslim countries. It analyzes utilities as producing commodities or services and how this impacts financing approaches.
Chapter 10: How to contract with the Colombian GovernmentTatiana Behar Russy
The document provides an overview of Colombia's regulatory framework for public procurement and state contracting. It discusses key aspects such as:
1) The main objectives of Colombia's procurement laws which aim to promote best practices, prevent corruption, and ensure transparency.
2) The different parties that can participate in state contracts including both national and foreign natural or legal persons.
3) The various modalities for contractor selection like public tenders, abbreviated selections, and direct contracting in certain cases.
4) Key elements of state contracts such as terms, payment schedules, dispute resolution mechanisms, and penalties for non-compliance.
5) Regulations regarding foreign participation in tenders and requirements for legal documentation.
DRONES IN SURVEILLANCE MISSIONS: CASE STUDY OF THE GENDARMERIE FORCES OF THE ...IJCI JOURNAL
The objective of this work is to support the continuous development and modernization of the Gendarmerie
Forces, analyzing the use of Drones in the police activities of the Portuguese and Spanish Gendarmerie
forces, examining the extent to which the implementation and expansion of these resources represent an
advantage for the police service and operations of the Gendarmerie. Due to the great changes taking place
in the world, it is crucial to rethink state security. The convergence of internal and external threats,
together with the increase in the feeling of insecurity on a global scale, are emerging factors that require
different strategies of the security forces, especially with regard to the support tools used. Thus, there was
a need to analyze the legal panorama of the Drones used in police, military and customs missions,
verifying their classification as state aircraft, verifying the current doctrine (civil, military and police),
taking into account the analysis of these scenarios. To this end, a methodology based on the inductive
method was adopted, which made it possible to generalize the data collected through the analysis of data
on the Spanish Gendarmerie force, appreciating their characteristics and use, with the aim of comparing
the modus operandi with the Portuguese Gendarmerie force.
This document summarizes key aspects of government contracting in Colombia. It outlines five principles: objectivity in selection, procedural economy, transparency, equality, and responsibility. It notes that foreigners may participate under reciprocity agreements. All individuals and entities wishing to contract with the government, whether Colombian or foreign, must register in the bidders' registry unless foreign entities have no domicile or branch in Colombia. Contractors must submit a performance bond, with some exceptions. Public-private partnerships are allowed for up to 30% public funding of private initiative projects through public tender.
The document discusses proposals for liberalizing India's industrial and foreign exchange policies by curtailing the role of the public sector, shifting from the MRTP Act to a new Competition Act, and moving from a control-based foreign exchange regulatory regime under FERA to a more liberalized management-based system under FEMA. It outlines the historical context and rationale for these proposed policy changes and shifts towards a more market-oriented economy.
Public Private Partnerships - - Copy.docxPeterMutui1
This document discusses public-private partnerships (PPPs). It defines PPPs as agreements between governments and private companies to deliver public services or infrastructure projects. PPPs aim to leverage private sector expertise and financing to supplement traditional public sector investment. The document outlines different PPP models based on risk allocation and ownership. It also describes the key parties involved in PPPs, including governments, private investors, contractors, and a special purpose vehicle (SPV) company. Finally, it notes that PPPs have grown globally in recent decades and that Kenya has pursued several infrastructure projects using the PPP model through a dedicated PPP Directorate.
This document discusses public-private partnerships (PPPs). It defines PPPs as agreements between governments and private companies to deliver public services or infrastructure projects. PPPs aim to leverage private sector expertise and financing to supplement traditional public sector investment. The document outlines different PPP models based on risk allocation and ownership. It also describes the key parties involved in PPPs, including governments, private investors, contractors, and a special purpose vehicle (SPV) company. Finally, it notes that PPPs have grown globally in recent decades and that Kenya has pursued several infrastructure projects using the PPP model.
This document discusses public-private partnerships (PPPs). It defines PPPs as agreements between governments and private companies to deliver public services or infrastructure projects. PPPs aim to leverage private sector expertise and financing to supplement traditional public sector investment. The document outlines different PPP models based on risk allocation and ownership. It also describes the key parties involved in PPPs, including governments, private investors, contractors, and a special purpose vehicle (SPV) company. Finally, it notes that PPPs have grown globally in recent decades and that Kenya has pursued several infrastructure projects using the PPP model through a dedicated PPP Directorate.
This document provides a summary of government procurement processes in Colombia. It notes that government procurement applies to state entities at all levels and aims to ensure transparency, efficiency and effectiveness in managing public resources. The key points covered include: an overview of the legal framework and principles of government procurement in Colombia; the importance of procurement for the economy; the scope of entities covered; exceptions; pre-requisites for participating such as registering in the Single Registry of Bidders and reviewing the Annual Procurement Plan; and who is eligible to participate in procurement processes.
This document provides a summary of government procurement processes in Colombia. It explains that government procurement applies to state, decentralized, and territorial entities and follows principles of transparency, free competition, objective selection, and legality. It also describes the Electronic System for Public Procurement (SECOP) that manages procurement processes online, the Single Registry of Bidders (RUP) for registering to participate in bids, and the Annual Procurement Plan (PAA) that identifies planned government contracts. The document provides an overview of the relevant laws and requirements for participating in Colombia's government procurement processes.
This document is a legal guide for doing business in Colombia that was prepared in March 2019. It provides an introduction to Colombia's economy and legal system. The guide is divided into 12 chapters that cover various legal topics relevant to foreign investment and business operations in Colombia, such as foreign investment protection, tax regulations, intellectual property laws, and government procurement. However, the guide notes that it is for informational purposes only and does not constitute legal advice. It advises readers to consult their own legal counsel regarding investment in Colombia.
This document discusses using usufruct bonds to finance public utilities. It proposes an alternative method of financing public utilities by transferring the financing burden to utility users and private sector investors. Usufruct bonds would be based on the Ijarah (leasing) contract in Shari'ah and allow investors to share in the usufruct (benefits) of public assets like water, electricity, and transportation systems. The document explores the fiqh foundation and potential structures of usufruct bonds, and compares them to other Islamic financing instruments.
Indonesian Civil Aviation Act of 2009: Aviation Safety, Security and Climate ...inventionjournals
The purpose of this article is to describe and analyze civil aviation and climate change regulations in Indonesia. This study specifically analyze the history of these issues¸ substance of the Civil Aviation Act of 2009 such as aviation safety and security; action to be taken to reduce climate change by Indonesia in the international level such as membership of UNFCCC. Further¸ its’ commitment to support ICAO,s recommendation, environmental measure project, cooperation with IATA and other agency, discussion with Switzerland related to climate change and domestic level such as policy approach to climate change, socialization and coordination of a national action plan, eco-friendly airport, alternative fuel for aircraft operation, the emission trading scheme, establishment of national committee on climate change, aviation biofuels and renewable energy at the airport, aircraft’s bombing water to fight forest fire. Finally¸ the conclusion and recommendation
O documento discute 3 áreas que precisam ser reformadas no Brasil para estimular o empreendedorismo: 1) o regime de organização das empresas para torná-las mais flexíveis, 2) a conexão entre pesquisa e mercado para comercializar novas tecnologias, e 3) as compras públicas para apoiar soluções inovadoras.
Infraestrutura executiva - Receita depende de outro modelo - Fabiana MelloFabiana Peixoto de Mello
O documento discute os planos de investimento dos principais aeroportos brasileiros para ampliar sua capacidade até a Copa de 2014. Os consórcios de Brasília, Guarulhos e Viracopos anunciam obras em andamento para entregar novos terminais e aumentar o número de posições de embarque e estacionamento. Os investimentos somam bilhões de reais para atender à crescente demanda esperada durante os grandes eventos esportivos.
Brazil’s deficient airport infrastructure was not a major issue until the country
was awarded the 2014 World Cup and the 2016 Olympic Games, yet for
years it had impaired the blossoming of high-value-added industries. Historically
Brazil has been able to manufacture high-added-value products at
low costs, but the costs of shipping those products to Europe, Asia or North
America – which purchase 70% of Brazil´s exports and are only reachable by
sea or air -- inhibit its competiveness. Many factors account for these costs,
but the country´s airport infrastructure should take much of the blame.
Este trabalho investiga os aspectos regulatórios da exploração de aeroportos públicos sob regime privado no Brasil. A
proposição é que a diferença essencial entre aeroportos concessionados e autorizados é o nível de intervenção regulatória pelo
Governo, que então determina o regime ao qual a exploração estará sujeita. A metodologia descritiva e exploratória utilizada é
baseada em literatura anterior sobre exploração aeroportuária. Os resultados indicam que aeroportos explorados sob regime
privado, isto é, os autorizados, são geralmente sujeitos a intervenção regulatória mais leve que aqueles explorados sob regime
público, que são concessionados, logo o nível de intervenção regulatória é o critério principal para determinar o grau de
interesse público nas operações do aeroporto. A conclusão também indica que o grau de intervenção regulatória ao qual um
aeroporto estará sujeito dependerá do valor de uso para a coletividade que suas operações gerarem. A política de outorgas ótima
é uma combinação de tipos de outorgas diretamente relacionada à diversificação dos serviços do aeroporto e aos graus de
intervenção regulatória que eles requerem.
O documento discute os desafios para a captação de demanda de carga no Brasil, apontando que a participação brasileira na carga aérea mundial é insignificante devido à política de aviação que não concede a quinta liberdade às empresas cargueiras, impondo custos logísticos adicionais, ao contrário de países competidores como Chile e China que têm políticas mais avançadas.
O documento discute a competição entre aeroportos e como ela está ligada à competição entre companhias aéreas. Apresenta como a estrutura de "hub and spoke" concentra passageiros e voos em poucos aeroportos principais, beneficiando as companhias aéreas e prejudicando a entrada de novos concorrentes. Também discute como a regulação tarifária e a alocação de slots aéreos podem afetar a competição dentro dos aeroportos.
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
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The Steadfast and Reliable Bull: Taurus Zodiac Signmy Pandit
Explore the steadfast and reliable nature of the Taurus Zodiac Sign. Discover the personality traits, key dates, and horoscope insights that define the determined and practical Taurus, and learn how their grounded nature makes them the anchor of the zodiac.
Prescriptive analytics BA4206 Anna University PPTFreelance
Business analysis - Prescriptive analytics Introduction to Prescriptive analytics
Prescriptive Modeling
Non Linear Optimization
Demonstrating Business Performance Improvement
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
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1. BTPS Journal of Transport Literature JTL|RELIT
Vol. 7, n. 1, pp. 65-82, Jan 2013
Brazilian Transportation www.transport-literature.org
Planning Society
Research Directory ISSN 2238-1031
The exploitation of public Brazilian airports under private regime: a
review of government leased and permit grants
[A exploração de aeródromos públicos brasileiros sob regime privado:
uma revisão das concessões e permissões]
Fabiana Peixoto de Mello, Dorieldo Luiz dos Prazeres*
Queen’s University, Canada, Agência Nacional de Aviação Civil (ANAC), Brazil
Submitted 9 Sep 2011; received in revised form 30 Jan 2012; accepted 9 Feb 2012
Abstract
This paper investigates the regulatory aspects of exploiting Brazilian public airports under private regime. The proposition is
that the essential difference between leased or permit grants is the level of regulatory intervention by the Government, which
then determines the legal regime to which the airport exploitation is subject. The descriptive and exploratory methodology used
is based on previous literature on airport exploitation. The results indicate that airports exploited under private regime, that is,
those granted permits, are generally subject to a lighter regulatory intervention than those exploited under public regime, which
are granted a lease, hence the level of necessary regulatory intervention is the main criterion for determining which type of
grant shall be used for a certain airport. The conclusion also indicates that the level of regulatory intervention to which an
airport is subject will depend on the value of use to the collectivity that its operations generate. The optimal granting policy is an
ideal combination of types of grants directly related to the diversification of the airport services and the different levels of
regulatory intervention that they require.
Key words: public airports; private airports; leased grants; permit grants; airport exploitation.
Resumo
Este trabalho investiga os aspectos regulatórios da exploração de aeroportos públicos sob regime privado no Brasil. A
proposição é que a diferença essencial entre aeroportos concessionados e autorizados é o nível de intervenção regulatória pelo
Governo, que então determina o regime ao qual a exploração estará sujeita. A metodologia descritiva e exploratória utilizada é
baseada em literatura anterior sobre exploração aeroportuária. Os resultados indicam que aeroportos explorados sob regime
privado, isto é, os autorizados, são geralmente sujeitos a intervenção regulatória mais leve que aqueles explorados sob regime
público, que são concessionados, logo o nível de intervenção regulatória é o critério principal para determinar o grau de
interesse público nas operações do aeroporto. A conclusão também indica que o grau de intervenção regulatória ao qual um
aeroporto estará sujeito dependerá do valor de uso para a coletividade que suas operações gerarem. A política de outorgas ótima
é uma combinação de tipos de outorgas diretamente relacionada à diversificação dos serviços do aeroporto e aos graus de
intervenção regulatória que eles requerem.
Palavras-Chave: aeroportos públicos, aeroportos privados, permissões, concessões, exploração de aeroportos.
* Corresponding Author. Email: dorieldo@gmail.com.
Recommended Citation
Mello, F. P. and Prazeres, D. L. (2013) The exploitation of public Brazilian airports under private regime: a review of government
leased and permit grants. Journal of Transport Literature, vol. 7, n. 1, pp. 65-82.
■ JTL|RELIT is a fully electronic, peer-reviewed, open access, international journal focused on emerging transport markets and
published by BPTS - Brazilian Transport Planning Society. Website www.transport-literature.org. ISSN 2238-1031.
This paper is downloadable at www.transport-literature.org/open-access.
2. JTL-RELIT Journal of Transport Literature vol. 7, n. 1 (2013)
1. Introduction
In 1990, to address the economic crisis that hit Brazil, the Brazilian Government initiated a
restructuring process of the public sector in order to strengthen investments and technology
and to improve the performance of public services. This process involved granting rights to
exploit public services to local and foreign non-state owned companies. The regulatory
framework for the restructuring process had been set out in the 1988 Federal Constitution and
its amendments.
The Brazilian airport infrastructure crisis added to the country’s commitment to host two
international events that urge the restructuring of the industry, which so far has been almost
totally dependent on governmental undertakings. Private sector entities have been publicly
disclosing their interest in their participation of public bids of grants to exploit existing
airports as well as in obtaining permits to build and exploit new greenfield airports, at their
own risk.
The Federal Constitution and the ordinary law in force - Law n. 7,565, dated 1986, Law n.
6,009, dated 1973 and Law n. 11,182, dated 2005 - state that airports are public interest
facilities that can be exploited either directly by the public sector, through the Government or
its state-owned undertakings, or indirectly by the private sector by means of a grant from the
Federal Government.
The grant for the private sector to exploit an airport may take the form of a lease or a permit,
according to the cited law. The law does not contain superfluous words pursuant to Brazilian
rules of law interpretation, therefore, the fact that the law provides for two different types of
grants indicates that they have different characteristics and should be used in different
circumstances.
The aim of this report is to analyze the main differences between leases and permits, as well
as the situations in which each should be used. The methodology was based on
bibliographical research of specialized literature and from a review of the law in force.
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This work is divided into sections: Section 1 introduces the analysis; Section 2, analyzes the
mechanisms to grant the exploitation of public interest services provided for in the law and
their respective exploitation regimes; Section 3 examines the possibility for use of permits to
grant the exploitation of airport infrastructure; Section 4 reviews the designation used by the
Brazilian Aeronautical Code; Section 5 argues that the need of regulatory intervention is the
criterion to determine the type of grant; Section 6 provides examples of airports exploited
under private regime in Brazil and worldwide; Section 7 argues that the operational features
of an airport do not influence the public interest in its exploitation; Section 8 presents
different approaches to the evolution of the provision of airport services and of the different
types of grants. This report is concluded with the suggestion that the Brazilian airport
infrastructure crisis can be relieved through public policies that adopt multiple types of grants
according to the prevailing interest in the exploitation of the airports.
2. Types of grant and exploitation regimes
There is no legal definition of public service in Brazilian law. The concept of public service
construed by Brazilian legal experts is derived from the French doctrine of the 1950’s. Public
service is considered to be all the services provided directly by the Government or its entities
or indirectly by non-state owned entities by means of a grant.
Article 21, Item XII, of the Brazilian Constitution enlists activities that shall be exploited
directly by the Federal Government or granted to the private sector by leases or permits and
airport infrastructure is among them.
The fact that an activity is enlisted as having a public service nature does not mandate it to be
exploited under the public regime. The exploitation of some activities granted to the private
sector may, and on occasion, should be, performed under private regime.
According to Couto e Silva (2009), “Brazilian Law, by line of principle, does not
acknowledge public function or public service, of any nature, that is not rendered by the
Government or by means of a Government grant. On the other hand, the legal regime to
which the public service activity is rendered is either entirely public, as it happens with the
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administrative services or is, in the case of commercial or industrial services, predominantly
private, but mixed with public law rules.”
The role of the Brazilian Government has shifted since the 1950’s from managers that directly
exploit the services to regulators that make the policies and audit their compliance.
Acknowledging and incorporating this historical change, the European Union has updated the
concept of public service, replacing it with Services of General Interest (SGI) and Services of
General Economic Interest (SGEI).
According to the Treaty on the Functioning of the European Union (TFEU), SGI are
activities, economic or not, deemed of general interest by the State and subjects to public
service specific rules. SGEI, on the other hand, are economic activities of public interest,
generally granted to exploitation by the private sector. SGEI are performed under private
regime even though ruled by specific public services obligations.
The telecommunications sector pioneered incorporating private and public regimes of
exploitation of public service into the Brazilian legal system. Nevertheless, electric energy
and port sectors also admit to the exploitation of services under private regime, granted by
permits. The legal regime that governs the provision of public services is determined
according to the type of grant for its exploitation.
Table 1 – Main differences between lease and permit
Lease Permit
Exploitation regime Public Private
Risk Guarantee of economic Grantee exploits activity at
balance of the contract its own risk
between the Brazilian
Government and the lessee
Service compensation Tariffs that have to be Free price
affordable (tariff cap or
productivity)
Title to property Property belongs to the Property belongs to the
Government grantee
Grant term Determined Determined or undetermined
according to the
Source: Espírito Santo Júnior, R.A.; Prazeres D.L.; Santana, E.M. (2010)
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3. The possibility of the use of permits to grant airport exploitation to the
private sector
The recent economic development Brazil is undergoing requires substantially high
investments in infrastructure to meet the existing and projected lack of capacity. The
investments have different ends according to the context in which the infrastructure is
required. Airports built and exploited by the private sector to serve predominantly private
interests but open to the public in general are a vital element of an optimal infrastructure
portfolio.
The Brazilian Government does not have the capacity to bear all investments needed to
support the economic growth and development, and for that reason, the level of responsibility
of the Brazilian Government cannot be uniform in all projects but has to be proportional to the
predominant interest in each of them. The Brazilian Government must have types of grants
that allow it flexibility to exert different levels of regulatory intervention. Permits have to be
used to offer legal certainty to the investments made by the private sector.
The law in force expressly allows the use of authorization as a grant of airport exploitation
rights to the private sector. The Brazilian Aeronautical Code (CBA) was approved by the
Brazilian law #7.565, dated 19th December, 1986. Article 36, Item IV, of the CBA states that
the exploitation of public airports may be granted by means of leases or permits. This grant
shall not be confused with the authorization to build and operate airports for the exclusive use
of its operators, whose services shall not to be commercially exploited. The permit to build
and operate provided for in Article 36, Item IV, of the CBA relates to airports open to the
public in general and that are commercially exploited. The 1986 CBA provision was emulated
in Article 21, Item XII, c, of the 1988 Federal Constitution.
The legal and constitutional possibility of using permits to grant airports exploitation to
private sector is acknowledged by Brazilian experts, such as: Farias (2005), Aragão (2007),
Prazeres (2011) e Espírito Santo, Santana and Prazeres (2010). In developed and developing
countries around the world, permits are used to grant exploitation of airports to the private
sector. Foreign experts such as Kapur (1995) and Heinke & Wei (2000) also acknowledge the
use of permits to airport undertakings.
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The following chart correlates the air transport and airport services to the respective types of
grant according to the rules of the CBA.
Table 2 – Grid of grant types in the Brazilian Aeronautical Code
Public Services Private Services
(commercial exploitation allowed) (commercial exploitation
forbidden)
Lease Permit Grant not applicable
Regular Air Transport Air Tax Private (exclusive) Air
Services Transport Services
(arts. 180 and 220)
(arts. 180 and 181) (art. 14, §1, §2, cc arts. 177
Specialized Air Transport and 178)
Services
(arts. 180 and 182)
Leased Airport Services Permitted Airport Services Private (exclusive) Airport
Services
(art. 36, IV) (art. 36, IV)
(art. 30, §2)
th
Source: Law n. 7,565, December 19 , 1986 (CBA)
The Brazilian aviation law established different types of grants to the provision of air
transport and airport services. In the case of air transport services, the type of grant was
determined based on the distinction of services rendered to the exclusive benefit of its
exploiter, deemed private, and the rest of the air transport services, deemed public. In the case
of airport services, however, the CBA does not specify the criterion that distinguishes a leased
and permitted public airport.
4. The designations of public and private aerodromes in the Brazilian
Aeronautical Code
According to the Brazilian Aeronautical Code in force, public service is the service
commercially exploited, and it can only be provided by means of a grant of the Federal
Government, which may take form of a lease or of a permit. Private Service, on the other
hand, is the service rendered exclusively or restrictively to the owner of the aerodrome, thus
its commercial exploitation is prohibited.
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Aerodromes may provide public or private services but airports are always public aerodromes.
Airports are equipped with buildings and facilities to support the provision of airport services
to the community and enable it for its commercial exploitation.
The legal designation of the terms public service or private service for an aerodrome,
according to the Brazilian law, is a function of its purpose or destination, and not of its
ownership. The legal concept of a public or private aerodrome has no relation to the
ownership of the airport or to the ownership of its operator. This elucidation is necessary
because of the terms public and private and their consequential legal effects, which are often
associated with the ownership of the airport or of its operator, even in the aeronautical sector.
For clarification purposes, a private aerodrome, that is, an aerodrome with restricted or
exclusive use by its owner, may become a public aerodrome if it starts serving the public in
general and is commercially exploited. To that effect, it has to obtain a permit and meet the
technical and operational requirements set by the National Aviation Agency – ANAC. The
former private aerodrome used for its owner’s convenience then becomes open to the public
in general, ceasing to be private, even though its ownership remains private, as taught by
Pacheco (2006, p. 81).
5. The criterion of regulatory intervention as determinant of the
appropriate type of grant for airports’ exploitation
We propose that the type of grant to exploit airport infrastructure opened to the public in
general will depend on the level of regulatory intervention, similarly to the criterion applied to
lease or permit air transport services.
There is public interest in regulating the standards a non-state owned airport should meet to
render services to the public in general, however, many non-state owned airports create
additional or marginal value of use to the collectivity as a whole. Only some of them create
value of use to the collectivity as a whole and when that universal value is created, it has to be
guaranteed by the principles that rule the Public Administration, such as regularity,
continuity, efficiency, generality, courtesy in providing the service and affordable tariffs.
Hence, airports that create universal value - value to the collectivity as a whole - shall be
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exploited under public regime and provided grants by means of a lease. Airports that create
value of use to the collectivity, but only in an additional or marginal fashion, shall be
exploited under private regime and provided a permit grant.
Therefore, leased airports services are provided on behalf of the Government because they
create universal value to the country and the interest in their exploitation is predominantly
public. Whereas, permitted airport services, despite serving the public in general, are
economic activities provided to the collectivity for convenience and at the exploiter’s (airport
operator’s) own risk.
Permitted airports are built, maintained and exploited to the benefit and at the risk of the
private interest that prevails over the public interest. Nevertheless, there is public interest in
its services to the extent that it benefits the surrounding collectivity. The benefit is not
exclusive or restricted to the airport operator itself, as it happens in the private (exclusive)
aerodromes, according to the designation of the CBA.
Espirito Santo Júnior, Prazeres and Santana argue that the exploitation of airport services
under private regime is a means to break entry barriers and allow new entrants. Consequently,
there is public interest in the provision of airport services under the private regime to create a
favorable environment for competition in a market that tends to be concentrated by its own
nature.
The provision of airport services under different regimes avoids unnecessary duplication of
infrastructures, stimulates competition in the sector, reduces the need for intervention of the
regulatory authority in the same level in all airports and reduces the governmental cost of
regulation.
6. Selected examples of airports exploited under private regime in Brazil
and worldwide
Punta Cana International Airport, originally planned and conceived to meet the Dominican
Republic resorts needs of airport services is an example of an airport exploited under private
regime. After nine expansions, it has become the airport with the greatest passenger
movement of that country.
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The Punta Cana International Airport is owned by the Punta Cana Group and is exploited by
Punta Cana Resort and Club. During the high season, the airport operates 250 weekly flights,
and on some weekends up to 65 international flights. Without this airport, the resort would
not prosper; the tourism industry represents an important share of the State revenues in that
region.
The Punta Cana International Airport is a public utility directly affected by commercial and
industrial activities of its investors because its existence and operation are essential to the
survival of the businesses it serves. It is not subject to the obligations inherent to conventional
public service because the business it serves - and not the Dominican Republic’s national
interest - is the main reason for its existence. It would not be adequate to exploit this airport
under public regime.
A similar situation is that of the Usiminas and Monte Dourado airports in Brazil, conceived
predominantly to support the convenience of the grantees that exploit them. These airports
also serve their surrounding communities, whether or not it is in relation to the interest of
their operators. These are examples of small cities in the hinterland of Brazil, in which the
businesses create economic flow as a result of their activities and, which in turn attract and
develop a small urban center dependent on this flow. These airports create an additional value
of use to the surrounding community but do not create a universal value of use to the country.
Nevertheless, they do stimulate regional economic development; hence there is a synergy
between the public and private interests, in which the private interest bears more weight.
The airport services provided at Usiminas and Monte Dourado airports have different
characteristics than those provided in conventional State owned or leased airports. Airports
exploited under the public regime (leased airports) provide services that meet the public
interest predominantly. The contractual obligations of leased airports include adequate
service, that is, services that meet conditions such as regularity, continuity, efficiency,
generality, courtesy in providing and affordable tariffs.
Airports exploited under the private regime (permitted airports), on the other hand, provide
services that meet the private interest predominantly, which is not to say that they conflict
with the public interest.
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London City airport draws attention because it was not designed to meet a specific business
need but to serve a niche in the market less available or less attractive to conventional
airports. Due to its limited capacity, London City Airport specializes in business aviation
flights, international medium to long haul flights and regular commercial aviation with mid-
sized mostly executive aircrafts. Built near the financial center of London, it provides
connections to other airports or locations through helicopter transport or through alternative
metropolitan transport services. Its services are more expensive than those of airports
exploited under the public regime. This happens because conventional airports prioritize
regular commercial aviation. In a congested market, business aviation has difficulty in
operating at conventional airports and suffers from lack of capacity. The London City airport
offers to business and general aviation the capacity it needs and the convenience that the
sector demands.
7. The irrelevance of capacity, function and exclusivity criteria to determine
the type of grant
A widespread error in determining demand is to assess the predominant interest in an airport
based on its capacity. In order to demonstrate this point, a comparative analysis of permitted
airports around the world was made. Permitted airports are those deemed to have been
exploited at the risk of their investors under minimum price intervention.
Table 3 – Grid of grant types in the Brazilian Aeronautical Code
Airport Country Grantee
Monte Dourado Airport Brazil Jari Celulose
Usiminas Airport Brazil Usiminas
Lanseria International South Africa Lanseria Airport 1993
Airport
London City International England London City Airport Ltd
Airport
Punta Cana International Dominican Republic Punta Cana Resort and
Airport Club/Grupo Punta Cana
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7.1. Operational Features
The correct nature of the regime under which the airport will be exploited is determined by
the predominance of the public interest over the private interest. The operational
characteristics of the airports, such as the runway, terminal or apron capacity and the number
of takeoffs and landings, do not distinguish the predominant interest in their exploitation.
There are non-state owned airports exploited under private regime with great traffic density
and large capacity for handling wide body aircrafts.
Table 4 – Pax Movement in Selected Private Airports
Airport Country Grantee
Monte Dourado Airport Brazil 10,031
Usiminas Airport Brazil 100,148
Lanseria International South Africa Unavailable
Airport
London City International England 2,708,582
Airport
Punta Cana International Dominican Republic 4,033,391
Airport
The Punta Cana International Airport, for example, works with two parallel taxiways, eight
boarding gates, 50 check-in desks, six baggage carousels and the capability to handle an
aircraft the size of a Boeing 747-400. According to the Dominican Republic Ministry of
Tourism data, in 2010 the entire country received around 4.1 million passengers while the
Punta Cana International Airport alone received 2 million passengers.
The infrastructure of the Punta Cana International Airport – a private airport - is far superior
to the Congonhas Airport in Brazil – a public airport. The Punta Cana International Airport
primarily serves the tourism industry and is privately owned and operated. The Congonhas
Airport is strategic to the country and it is clearly an object of public interest because it is the
second busiest airport in Brazil and is the most important connection between domestic
routes. Because the operational features of the airports do not determine their main purposes
or the interests that they serve primarily and are not determinant of their public or private
nature or the regime under which they should be exploited.
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Table 5 – Comparison between Congonhas Airport and Punta Cana International
Airport
Airport Length of Longest Runway Annual pax movement in
(m) 2010 (millions)
Punta Cana International 3,110 4,003,391
Airport
Congonhas Airport 1,940 14,481,370
The Lanseria International Airport in South Africa is also capable of handling large aircrafts
such as the Boeing 757-300 and Airbus A319. London City International Airport, however,
cannot handle large aircrafts because of its short runway (1.508m), the slope of its ramp
approach and because it is subject to noise restrictions to the urban environment.
7.2. Ability to handle international flights
The ability to handle international flights does not determine the predominant interest in the
infrastructure and, as a result, it does not determine the regime under which it shall be
exploited.
Special purpose airports may or may not be international depending on their functional roles.
The Punta Cana International Airport, whose special purpose is to serve the tourism industry,
is international; the Usiminas Airport serves the business unit and is considered domestic.
Reliever airports that provide alternatives to a congested area may or may not be international.
For example, London City International Airport, which serves the general and executive
aviation, is international. Lanseria International Airport, which is an alternative to the main
Johannesburg airport, operates domestic scheduled flights only, even though it is apt to handle
international flights.
7.3. Single or Additional Airports
In many cases, special purpose airports, such as the Usiminas Airport or the Monte Dourado
Airport, precede conventional airports. They supply a seasonal or insufficiently profitable
demand to regular commercial aviation until regional development reaches levels compatible
with the provision of services under public regime. They create the economic flow that
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generates development and airport demand. In other cases, reliever airports are secondary
airports in a region where the infrastructure is congested.
In each example, the fact that an airport is the single or an additional airport in a certain
region is irrelevant to determine the prevailing interest over its exploitation.
8. The evolution of the provision of airport services and the different types
of grants for its exploitation
Prazeres suggests that the types of grants for exploiting airport services go through a
transformation or evolution that consists of three subsequent phases. In each phase the
government adds less invasive types of grants. Each phase does not replace entirely the type
of exploitation of the previous one, but rather adds an addition type of grant increasing the
breadth and the flexibility of the portfolio. The author cites Article 36 of the Brazilian
Aeronautical Code to confirm his proposition:
“Art. 36. The public aerodromes will be built, maintained and exploited:
I – directly, by the Union;
II – by specialized companies of Indirect Federal Administration or its subsidiaries linked to the
Ministry of Aviation;
III – under agreements with states or municipalities;
IV – by lease or permits.”
The first three items correspond to the first phase when the Government has a de facto
monopoly over the provision of airport services, whether directly (Item I), or through State-
owned entities or federation units and municipalities (Items II and III).
The fourth item sets the actual grant of the infrastructure exploitation to the private sector.
This item corresponds to the second and third phases.
In the second phase, the de facto monopoly is broken and the government grants the private
sector the right to exploit the airports by means of leases. The lease is exploited under public
regime, so the government keeps a relevant power to intervene over the provision of the
granted services.
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In the third phase, Prazeres suggests the emergence of permits, in order to promote greater
efficiency in the provision of airport services. The emergence of the permits as instruments of
grant for airport exploitation is due to the increase in demand for air transportation that results
from regional economic development.
The demand for air transportation is a function of the demographics of the region and its
economic activity. In the same way the development of economic activity occurs gradually,
the demand for air travel will not grow suddenly to a size that makes it feasible to maintain a
regular route of commercial aviation. The first events of demand-increase may occur in
isolated sectors like those in seasonal or low density routes, such as tourism and cargo.
8.1. Temporal or Situational Approaches
The use of various mechanisms to grant exploitation of airport services can be examined
through a temporal approach and/or a situational approach.
8.1.1. Temporal Approach
In the temporal approach, the different mechanisms of exploitation set in Article 36 of the
Brazilian Aeronautical Code would be used in sequence to the extent of the economic
development and the demand for air services and airport expansion. Figure 1 below depicts
this proposition.
Figure 1 – Types of Grant
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8.1.2. Situational Approach
In the situational approach, the use of different mechanisms of exploitation provided in
Article 36 of the Brazilian Aeronautical Code is the result of public policies that use an
optimal combination of grant types to offer the most efficient portfolio of airport services to
the population.
The temporal and situational approaches are not mutually exclusive. The temporal approach
will always be used because the profile and development of the market play an important role
in the choice of exploitation regime. The situational approach adds flexibility by using all
types of grants to complement each other.
Conclusion
The level of economic development of a certain location is mirrored by the provision of
airport services. Economic development creates and increases demand for air transport
services, and consequently, for airport infrastructure.
The more developed and complex the airport system of a country, the more important it
becomes to have exploitation regimes with different levels of regulatory intervention. The
diversity of the types of grants provided for in the law brings flexibility to the public policy to
offer the best portfolio of airport infrastructure to the population as a whole and to specific
sectors.
Brazil faces an extreme lack of airport capacity that can be reduced through public policies
that use the option provided for by Brazilian law to permit the exploitation of airports in
which the prevailing interest is private. The permitted airport is exploited at the risk of the
private sector and does not create unnecessary and costly interference of the State in the
provision of its services (Borges, 2007).
Along the same lines, Payson e Steckler recommends that decisions made by the Public
Sector about the type of grant ought to take into account the intended level of regulatory
intervention to be imposed over the airport, according to its unique circumstances, and
through a case by case analysis.
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16. JTL-RELIT Journal of Transport Literature vol. 7, n. 1 (2013)
Brazilian law allows the grant of exploitation of airport services by means of leases or
permits. The difference between the types of grants is the regime under which the exploitation
will occur: public or private, respectively.
There is public interest in all airport undertakings that serve the public and not its owner
exclusively but the degree of interest varies according to the features of the business being
undertaken.
The assessment of the prevailing interest in an airport cannot be based on its capacity or
operational features. The public interest prevails when the airport creates universal value of
use to the country and not a marginal or additional value of use to a specific sector or
community.
The type of grant chosen depends on the interest that prevails in the exploitation of the
airport: if public, the grant will be a lease exploited under the public regime; if private, the
grant will be a permit exploited under the private regime.
The different types of grants are not independent of each other and should coexist; the optimal
granting policy is an ideal combination of types of grants directly related to the diversification
of the airport services and the different levels of regulatory intervention that they require.
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17. JTL-RELIT Journal of Transport Literature vol. 7, n. 1 (2013)
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