Olivier Jankovec, a seasoned expert in the aviation industry and General Director of Airports Council International (ACI EUROPE), has highlighted the potential benefits of airport concessions in Montenegro. According to Jankovec, these concessions could lead to improved airport infrastructure, better service quality, a more diverse commercial offering and expanded flight connections.
In an interview with the Bankar portal, Jankovec explained that the core benefit of airport concessions lies in leveraging aviation industry expertise, capital, and adherence to high international aviation standards. This approach aims to modernize and expand airport operations, ultimately benefiting both travelers and the national economy.
A concession involves granting a private operator the rights to develop and manage airport infrastructure. For Montenegrin citizens, this means a private company will commit to investing in and managing airports to enhance their efficiency and services, as well as develop air connections. Contrary to some public misconceptions, this does not equate to selling airport infrastructure to private investors. Instead, concessions allow for the development and management of airports over a specified period, after which the government can decide whether to extend the concession. This model also ensures that taxpayer money is not used for airport infrastructure development; rather, the private company assumes this responsibility, and the government benefits from additional revenue generated by the concessionaire for other projects, Jankovec noted.
In the short term, Jankovec pointed out that concessions can lead to quick improvements in airport infrastructure and services due to the significant investments they attract.
“This enhances the passenger experience and operational efficiency, which is highly valued by airlines using the airport. It also improves the airport’s competitive position. Long-term benefits include sustainable infrastructure development, technological advancements, adherence to best sustainability practices, and increased air connectivity, which in turn promotes tourism and economic growth. Importantly, each 10% increase in direct connectivity can boost GDP per capita by 0.5%. However, challenges include ensuring that the concessionaire meets performance standards set in the agreement and managing the transition smoothly. Potential drawbacks may involve the need for stricter regulatory oversight to protect public interests, which the government must ensure and monitor,” Jankovec explained.
He emphasized that to maximize the benefits of this model, it is crucial to select a concessionaire with substantial international experience and a proven track record in airport development and management.
“Effective airport management requires a blend of strategic vision, operational efficiency, customer-focused services, and a strong commitment to sustainability. Key factors include robust leadership and management practices, investment in infrastructure and technology—particularly through digital innovation—and adherence to international standards and best practices. Additionally, strong safety and security management systems, effective route development, and marketing strategies are essential, and a focus on sustainability and environmental protection should be prioritized. Whether managed by the state or a private company, these factors are crucial for delivering high-quality airport services and achieving sustainable growth,” Jankovec added.
Regarding concerns about potential job losses, Jankovec acknowledged these worries are valid but noted that private operators often bring new business opportunities and efficiency improvements that can lead to job creation over time.
“It is essential that concession agreements include provisions for employee protection, such as retraining programs and safeguards against mass layoffs. Transparent communication and collaboration with employees and unions are also crucial for addressing these concerns and ensuring a smooth transition,” he emphasized.
Jankovec concluded that Montenegro should focus on several key criteria in this process.
“Firstly, the selected company should have a proven track record in successful airport management and development. Secondly, financial stability and the ability to invest significantly in infrastructure should be ensured, along with a commitment to improving and maintaining the quality of airport services. Additionally, clear plans for route development and destination promotion, as well as defined environmental protection and sustainability policies, are necessary. Finally, to address job security concerns, provisions should be made to protect employee rights and ensure job stability. By focusing on these criteria, Montenegro can ensure that the concessionaire will positively impact the aviation sector and contribute to the overall economic growth of the country,” he concluded.
