Fraport AG, which manages Frankfurt Airport (FRA) and holds interests in the operation of several other airports, increased its stake in Lima Airport Partners (LAP) by 10% to 80%, Fraport announced on May 24. LAP operates and manages Lima Airport (LIM), and has done so since 2001.
Fraport said in a statement that the acquisition of the additional stake “strengthens Fraport’s position as LAP’s main shareholder and airport operator during an important expansion and growth phase” for LIM. The expansion Fraport referred to is the US$1.5 billion plan to construct a new runway, terminal and related facilities and infrastructure at the airport.
LAP began phase one of LIM’s expansion in 2005, with expansions of the airport’s passenger terminal and construction of a cargo building with a daily capacity of 8,000 tonnes. Since then, phases one and two have been completed, but phase three faced years of delays before LAP and the government of Peru signed an amendment allowing the expansion program to move forward. The expansion finally kicked off last year.
Like many airports and carriers, LIM has reported a year-over-year decline in its cargo handle so far in 2019, and in April. LIM’s April handle stood at 19,981 tonnes, down 7.9%, y-o-y, and at 82,511 tonnes for the first four months of 2019, down 5.7%, y-o-y.