Analysis of Regional Airports Deployment Investments: Evaluation of Investment Alternatives Using Real Options



Analysis of Regional Airports Deployment Investments: Evaluation of Investment Alternatives Using Real Options

Authors

Graziele Moura, University of Brasilia, Eliezé Bulhões De Carvalho, University of Brasilia, Carlos Henrique Rocha, University of Brasilia

Description

This study aims to develop airports in investment analysis methodology in order to measure the investment viability in certain regions, using the Theory of Real Options to analyze what are the best options across the different variables.

Abstract

The airline industry in Brazil has always been in a strategic part due to the influence on economic growth , facilitating the integration of the country and the expansion of tourism . But for this to be possible it is necessary investment in airports in regions that are not currently assisted by this kind of transport. The Brazilian scenario shows the need to allow access to airports the population living in areas that currently do not have this type of transport . But for this to be possible it is necessary that these investments are attractive for airlines and airport operators . Being that despite the large investment in the airline industry in recent years the investments are insufficient against the growth in demand that has nearly doubled in this period , ending the year 2013 with over 135 million passengers , according to latest yearbook available from Infraero . And in recent years the government saw the need for a concession the major airports of the country to the private sector , to ensure investment and in order to increase the quality of service . Considering the need for investment in the sector and the strong growth in demand in recent years this study aims to develop airports in investment analysis methodology in order to measure the investment viability in certain regions , using the Theory of Real Options to analyze what are the best options across the different variables . Considering important factors for the future investor , including the risk of investment in infrastructure and their returns . In this way , we seek to tailor investment possibilities that are allowed in Brazil , such as partnerships with the private sector through public private partnerships and concessions.

Publisher

Association for European Transport