JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announces it has won the exclusive 12-year contracts to run the advertising operations of Brasilia Juscelino Kubitschek International Airport and Natal São Gonçalo de Amarante International Airport in Brazil, starting on 1 November 2015.
Following their concession by the Brazilian government in 2011 and 2012, Brasilia airport is now 51%-owned by Corporación América and 49%-owned by Infraero, while Natal airport is wholly-owned by Corporación América. This is JCDecaux's first contract with the Argentinean company Corporación América, the world's largest private operator in terms of number of airports with 54 platforms under management.
Brasilia International Airport, Brazil's second-largest and Latin America's fourth-largest airport with 18.1 million passengers in 2014 and 20 million passengers predicted in 2015, has just undergone an estimated $1 billion renovation plan. Located in the heart of the country, Brasilia is the political capital of Brazil with 2.9 million inhabitants. Brasilia International is the largest national airport hub for the country's main cities and is attracting an increasing number of international flights.
The Natal airport complex, which opened on 31 May 2014, is Brazil's newest airport with annual passenger capacity of 6.2 million. It recorded passenger traffic of 2.5 million in 2014. Natal is the capital of the state of Rio Grande do Norte, which has 1.5 million inhabitants, is one of the most popular tourist regions in Brazil, and is the country's second-largest petrochemical centre.
JCDecaux's media offering for these two contracts will be highly digitalised with the installation of iVision networks and LED screens within the terminals, as well as lightboxes and large-scale wall branding. The exterior will also be upgraded with large communication structures. Advertisers and their agencies will benefit from JCDecaux's new and innovative advertising solutions.
These two airports further expand JCDecaux's exclusive airport offering in Brazil, which includes Rio de Janeiro Galeão International Airport and Salvador de Bahia Luís Eduardo Magalhães International Airport. With, for the first time, an exclusive, comprehensive and coherent offering encompassing two of the country's four largest airports and certain platforms owned by Infraero, JCDecaux continues to establish its business model in Latin America, thereby consolidating its position as the world's leading player in airport advertising.
Martin Eurnekian, Co-CEO of CorporaciónAmérica, said: "We are delighted to have signed this contract with JCDecaux, the number one player worldwide in airport communication, whose high standards of quality match those of Corporación América. These long-term contracts for the Brasilia and Natal airports confirm our commitment in Brazil and demonstrate our strategy of entering into partnerships with the world's most successful companies with the shared goal of enhancing the passenger's experience.
We want to help consolidate Brasilia's position as the country's main national hub and Natal Airport's status as a symbol of Rio Grande do Norte's growth through its connections with the rest of America and Europe.
We would like to thank Jean-Charles Decaux and all of his team for the confidence they have shown in us. We would never have succeeded in managing 54 airports worldwide without entering into strategic long-term partnerships. We confirm our wish to accompany the growth of new airports in America, Europe and Asia, and welcome new opportunities to enter into other agreements with JCDecaux around the globe."
Jean-Charles Decaux, Co-CEO of JCDecaux, said: "We are very happy with this first partnership with Corporación América, a company that since 1998 has succeeded in becoming the most important private operator in terms of the number of airports in the world. The Brasilia and Natal airports are two key platforms in the establishment of a national network for JCDecaux in Brazil, with a qualitative and targeted offering that will meet the expectations of political and economic decision-makers in the world's sixth largest economy.
Brazil air passenger traffic is projected to be one of the fastest developing in the world, more than tripling in size between 2011 and 2031*. At this time, it should account for more than 500 million passengers. The Brasilia and Natal airports will serve as a showcase for the Group's capacity to propose digital products and services that can transform an airport's environment and enhance the passenger's experience whilst ensuring optimal visibility for advertisers and their brands."
* Source : DKMA