WORLD ROUTES: One-to-One – Amit Rikhy, Airports Worldwide

Richard Maslen September 21, 2014

Our sister magazine, Routes News, talks to Amit Rikhy, senior vice president, corporate development and asset management for Airports Worldwide.

Q) Why has the group changed its name and rebranded to Airports Worldwide?
A) "The rebranding reflects the company’s focus on becoming a world-class airport platform for investing in, developing and operating airports globally. We felt that this new name more appropriately represents our company given that airports are our only business and we currently operate airports in the United States, Europe and Central America with a plan to grow our global presence."

Q) How does the group as a whole approach air service development at your portfolio of airports?
A) "Air service development and marketing (ASD) is one of the core functions of Airports Worldwide’s active asset management approach. This approach focuses on developing the airport’s key value drivers with the objective of protecting and enhancing shareholder value.
We have an ASD dedicated member of Airports Worldwide staff that actively and closely works with each of the airport’s route development managers to deliver the business plan objectives, manage relationships with existing and prospective airlines and key stakeholders (including other shareholders, regulatory, tourism agencies, etc), co-ordinate external consultants and meetings at the various airline conferences such as Routes, and proactively identify issues and risks and replicate best practices.
While we try to standardise things such as reporting processes and tracking tools and consolidate airline relationships, we focus on having a customised approach to each of our assets. In other words, our asset management process is not a cookie-cutter approach as we recognise that each airport has its own distinct profile with unique market, opportunities, challenges and stakeholders."

Q) Do air service teams across your gateways work together on city pair routes and other opportunities?
A) "Absolutely, the benefit of an airport platform such as Airports Worldwide is that we can develop multiple opportunities through the same relationship with existing and prospective airline partners. As appropriate, we are actively and proactively identifying city pair routes between our portfolio assets. However, we also remain flexible in establishing routes to competing airports."

Q) Does the group believe there are further expansion opportunities within the US?
A) "As the only US-based global airport investor-operator platform with investment in one airport public private partnership (PPP) concession and five management contracts at US airports, we continue to be committed to this market. However, we recognise that the US airport privatisation market has been relatively slower in its development compared with elsewhere globally.
However, we believe that patience and creativity with different structures will be required to develop the US market further. For instance, PPP structures similar to the one that Airports Worldwide is involved in with the Sanford Airport Authority is something that has significant potential to be replicated elsewhere in the US. Under this structure, we work collaboratively with our public sector partner, grow traffic, build a commercial business and maintain and develop the airport facilities.
Other structures such as those used by the PANYNJ for the development of T4 at JFK Airport and more recently for the Central Terminal Building at LaGuardia Airport could also be models for privatisation in the US. In summary, there are a number of potential opportunities in the US that could open up for PPPs in the airport sector."

Q) How did you start your career in aviation?
A) "My career in aviation started in consultancy and advisory to both governments and the private sector in airport development, finance, policy and privatisation. This then led to increasingly more senior roles in leading and executing on airport PPPs, acquisition, development and asset management."