The Task
We were commissioned with the critical task of conducting comprehensive due diligence and creating an accurate revenue forecast, encompassing all non-aviation activities for the concession period, on behalf of an international airport operator, who planned to participate in the tender for the airport concession.
Our Approach
To accomplish this task, we employed a robust approach based on information gathered from an in-depth analysis of all available data that could impact the commercial operation, extensive site visit, a comprehensive review of downtown commercial operations, the application of global best practices, and benchmarking with other comparable airports.
During our rigorous due diligence, we accounted for multiple factors that could potentially impact revenue, such as the commercial and financial impact of a proposed re-design of the terminal layout, for which we provided key commercial input, recommended new concepts and revised contractual conditions. We factored in all viable scenarios before preparing a revenue forecast with different sensitivity scenarios.
The Result
Our input significantly contributed to the commercial strategy, resulting in the highest valuation for commercial parameters from all the bids. Overall, our client was initially classified as the second-best candidate in the bidding process, but the outcome was later overturned, and our client’s bid was declared the winning offer. However, the tender process is now set to be re-launched.