Holger Linkweiler, Managing Director, AviAlliance: “We are focused on situations where we can bring knowledge and added value – for example, if infrastructure expansion
or operational optimisation are required.”
AviAlliance is one of the world’s leading private industrial airport investors and managers. Its balanced portfolio currently comprises shareholdings in five airports – Athens, Budapest, Düsseldorf, Hamburg, and Tirana – which together handled 62.8 million passengers in 2014. AviAlliance Managing Directors Holger Linkweiler and Gerhard Schroeder outlined the company’s strategy and investment criteria to Ross Falconer.
AviAlliance has, for many years, been involved in the planning, financing and operation of airports. It was formerly known as HOCHTIEF AirPort – an independent, wholly-owned subsidiary of HOCHTIEF, which bundled together all of the group’s airport management activities. In 2013, HOCHTIEF sold its shares in HOCHTIEF AirPort to the Public Sector Pension Investment Board (PSP Investments) of Canada, after which the company was renamed AviAlliance.
The current AviAlliance portfolio includes shareholdings in five airports – Athens, Budapest, Düsseldorf, Hamburg, and Tirana – and the news across all of these is positive in terms of passengers and also awards. Hamburg Airport was commended in the ‘10-25 million passenger’ category at the recent ACI EUROPE Best Airport Awards, while Budapest Airport was commended in the ‘5-10 million passenger’ category.
In conversation with Airport Business, the AviAlliance Managing Directors Holger Linkweiler and Gerhard Schroeder articulate a clear and progressive vision for the investors’ continued growth. Outlining AviAlliance’s key investment criteria, Linkweiler commented: “The first, and most important one, is the quality of the catchment area, which includes a stable legal environment. We are also focused on situations where we can bring knowledge and added value – for example, if infrastructure expansion or operational optimisation are required.”
Local stakeholder expertise
AviAlliance is open in principle to investing in airports of all sizes, but prefers an annual throughput above five million, believing that this allows the flexibility for good management to create real added value. As an investor it likes to be involved on board level, and also in terms of operational optimisation. Schroeder explained that local stakeholder involvement is absolutely vital.
Gerhard Schroeder, Managing Director, AviAlliance: “As an investor, we appreciate very much the local management teams – they develop the airports in line with the needs of the catchment areas and the regions around them. In that context, it’s always helpful to have a local partner who understands the local specifics.”
“This is a very important characteristic of AviAlliance,” he said. “On one hand, airports are international, global businesses, but they are, at the same time, very local businesses. As an investor, we appreciate very much the local management teams – they develop the airports in line with the needs of the catchment areas and the regions around them. In that context, it’s always helpful to have a local partner who understands the local specifics.”
So, in principle, AviAlliance likes the airports in which it invests to be run by local management on a day-to-day basis. There are specific situations – such as major capital expenditure plans, or difficulties with regards to airlines – in which it is a hands-on investor. “In these kinds of situations, we are ready to help, but clearly in cooperation with the local management,” Linkweiler added.
Looking ahead, AviAlliance is positive about the continued development of its existing portfolio, and has plans to expand into other regions, including Asia, South and North America. “We are looking globally at expansion. If we look at the statistics and traffic forecasts in Asia, there will be a lot of growth,” Schroeder noted. “I think the key to success is to better understand the culture, and as well to work together with local partners to improve the common investments.”
It is clear from our discussion that AviAlliance is a long-term investor with financial power, and a clear and ambitious vision for its future growth, focused on airports with a stable framework, freedom to optimise the asset, and potential for long-term growth.
