ORIX-VINCI Airports Consortium selected as Preferred Negotiation Right Holder for the Kansai and Osaka International Airports concession (Japan)
10 November 2015 - 7:00 am - Acquisitions - Japan
- A 44-year concession starting April 1, 2016
- Annual traffic of 34.6 million passengers
The consortium made up of ORIX Corporation, a leading integrated financial services group, and VINCI Airports, an airport concession holder and operator with proven expertise in prime contractor services, today announced that the New Kansai International Airport Company (“NKIAC”) has selected the ORIX - VINCI Airports Consortium as Preferred Negotiation Right Holder for the 44-year Concession for Kansai International Airport and Osaka International Airport.
This success is the result of the strong partnership between ORIX and VINCI Airports, underpinned by complementarities between the two companies: ORIX, with a strong footprint in Kansai, has always looked beyond the realms of its main business as financial services provider, and VINCI Airports whose successful track-record in airports operation has recently been further reinforced in Portugal, Cambodia, France and Chile.
ORIX and VINCI Airports have decided to join forces in order to develop the Kansai economy, in particular through the opening of new direct routes.
ORIX and VINCI Airports will set-up a concessionaire company to enter into a project agreement with NKIAC by the end of 2015. ORIX and VINCI will have the same shareholdings (40% each), and minority shareholder companies from the Kansai region will hold 20% overall.
The airports’ operations are scheduled to be transferred to the concessionaire company at the end of March 2016. During this period, ORIX and VINCI Airports will work closely with NKIAC, the airports’ employees, business partners and the local communities to outline the forthcoming plans and processes, and get feedback from these stakeholders who will be crucial to the operations of the airports in the future. ORIX and VINCI Airports will outline next steps and further details of their plans in the coming months.
Kansai International Airport, opened in 1994, is located on an artificial island in the middle of Osaka Bay. It serves both as international hub and domestic airport, with a traffic of 20 million passengers. Osaka International Airport, often called Itami Airport and opened in 1939, is the primary domestic airport for Osaka city, with 14.6 million passengers.
Together, Kansai and Osaka international airports, welcoming 34.6 million passengers (in fiscal year 2014-2015), represent the second busiest airport group in Japan. The growth in traffic last year (+7.4%) has been supported by the excellent results of tourism in Japan and the development of the low-cost carriers for which the Kansai International Airport is the main hub in the country.
The total funding plan of the concessionaire company is 260bn JPY (c.1.94bn EUR) of which 80bn JPY (c. 597m EUR) shall be paid out of shareholders contributions.
With this new acquisition, VINCI Airports enters the top 5 ranking of world leaders in airport management, with a total of 27 airports and more than 100 million passengers operated annually. This move underscores VINCI Group’s international ambitions in this field. These two airports mark VINCI Group's first major success in Japan, outlining VINCI international development strategy.
Bringing its long history of providing innovative financial services and its real estate development and operation know-how to Japan’s first full-scale airport concession business, ORIX will continue to strengthen and expand its infrastructure asset management business in the future.
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses. Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since its first overseas expansion into Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in a total of 36 countries and regions across the world. Moving forward, ORIX aims to contribute to society while continuing to capture new business opportunities and sustain growth by promoting acceleration of its corporate strategy “Finance + Services.”
About VINCI Airports
VINCI Airports, an emerging leader in the international airport sector, manages the development and operations of 25 airports: 11 in France, 10 in Portugal (including the hub of Lisbon with 18 million passengers in 2014), 3 in Cambodia, and one in Chile (since October 2015), generating revenues of 717 million euros in 2014. Its network of airports, served by more than 100 airlines, handled 47 million passengers in 2014. Through its expertise as a comprehensive integrator and the professionalism of its 5,400 employees, VINCI Airports develops, finances, builds and operates airports, leveraging its investment capability, international network and know-how to optimize management of existing airport infrastructure, facility extensions and new construction. VINCI Airports is a subsidiary of VINCI, world leader in concessions and construction with more than 266 000 projects in 100 countries and 185 000 employees.
VINCI is a global player in concessions and construction, employing more than 185, 000 people in some 100 countries. We design, finance, build and operate infrastructure and facilities that help improve daily life and mobility for all. Because we believe in all-round performance, above and beyond economic and financial results, we are committed to operating in an environmentally and socially responsible manner. And because our projects are in the public interest, we consider that reaching out to all our stakeholders and engaging in dialogue with them is essential in the conduct of our business activities.