Brazil Mulls Reducing Stake In Airport Concessions

The Brazilian government is considering selling half of its minority stake in five major airports to raise cash and help plug a swelling budget gap, a local newspaper reported.

The government, through state civil aviation infrastructure agency Infraero, owns 49 percent of the five airports, located in Brasilia, Belo Horizonte, Rio de Janeiro, São Paulo and Campinas. It had sold majority stakes in them beginning in 2012.

Infraero would be willing to reduce its stake to about 25 percent, newspaper O Estado de S. Paulo said, citing one source with direct knowledge of the plan.

A plan by engineering company UTC Engenharia to exit Aeroportos Brasil, an investment vehicle that owns 51 percent of Campinas-based Viracopos airport, could lead Infraero to sell part of its 49 percent stake in that property.

Infraero, which has a right of first refusal on UTC's stake in Aeroportos Brasil, could sell up to 39 percent of Viracopos, a person with direct knowledge of the deal said.

Located between Sao Paulo and Campinas, Viracopos is one of Brazil's fastest-growing airports.