GAP has commenced its operation of Norman Manley Airport claiming that it will invest $60 million to extend and modernise the Jamaican airport.
In accordance with the terms of the Concession Contract (“the Contract”) that was signed on October 10, 2018, the Company was granted 12 months for the transition and takeover of the operation and administration of KIN.
“To compete for the operation of Norman Manley Airport represents a strategic decision that will contribute towards GAP’s positioning and it will strengthen the development and growth of Jamaica’s main airports.” said GAP’s Director General, Raúl Revuelta.
The consolidation of KIN during 4Q19 is based on the current operation of the airport, which could change in the future. Current contracts for services received, as well as commercial contracts, may be renegotiated and bid out to improve the airport’s current financial and operating structure. Additionally, the new tariffs that are scheduled to be applied beginning January 1, 2020, will allow improvements in operating results and recovery of committed investments with the Government of Jamaica.
These figures are estimates based on certain assumptions that GAP’s management considers reasonable. Many of the factors that affect these assumptions and their estimates are out of the Company’s control and are subject to changes that could take place for the remainder of the year based on a variety of factors, including but not limited to, airline activity, domestic and international economic conditions and government regulations.
Please refer to the Company’s Annual Report for the period ended December 31, 2018, for a more detailed list of factors that could affect traffic performance, revenue and expenses.