Opportunity
Demand for air services at the Luis Munoz Marin International Airport, which serves San Juan, Puerto Rico, was shifting from a traditional "hub-and-spoke" system to a "point-to-point" model. However, tight restrictions placed on stakeholder engagement meant that consultation with the airlines involved was restricted.
Solution
Mott MacDonald was retained to review Puerto Rico’s aviation market and the island’s competitive position, produce a high-level base-case traffic forecast based on an economic assessment of the island and its growth prospects, and to provide an initial assessment of aeronautical charges, operational costs, and benchmarking.
Our aviation team provided specialized aviation market analysis and traffic forecasts to develop air passenger traffic and aeronautical revenue/expenditure forecasts for the airport as part of the delivery of privatization-related due diligence services.
We deployed staff with knowledge of running commercial airlines to improve confidence among investors when estimating the airlines’ competitive response and future traffic volumes. This enabled us to deliver a bankable traffic case for investment that supported Puerto Rico’s competitive position within the region and underpinned the consortium’s successful bid and commercialization strategy.
Outcome
San Juan’s airport was the first airport in a US jurisdiction to be run by a private operator under the FAA’s Pilot Privatization Program and continues Mott MacDonald’s track record of advising successful bidders on groundbreaking projects.