The contract to operate and develop the first privatized major domestic airport – Midway (MDW) – has been awarded to the Midway Investment and Development Corp., made up of Citi Infrastructure Investors, Vancouver Airport Services and John Hancock Life Insurance Co.
The $2.521B, 99-year lease “marks a milestone in the growth of our company, and is a clear example of how we can leverage our success at home to develop the best airports in the world,” says Larry Berg, president and chief executive officer of the Vancouver Airport Authority. “Since the mid-’90s, our subsidiary, YVRAS, has grown from a great idea into a global airport operator, and we’re proud of this homegrown success.”
MDW offers service to more than 55 destinations and handled more than 19.3 million people and 304,000 aircraft operations in 2007.
“We are excited to undertake this extremely important infrastructure opportunity with our MIDCo partners, and look forward to working closely with the city of Chicago, the airlines, travelers and the community on this groundbreaking transaction.” says Felicity Gates, co-head of Citi Infrastructure Investors.
“We are pleased to be part of this excellent team that has secured the rights to operate Midway Airport and we look forward to working with the city and the airlines to provide excellent services to the traveling public,” said Robert Keough, managing director of transportation finance for John Hancock Life Insurance Co.
“This is an excellent opportunity for the company, our employees and our network of airports,” says George Casey, president and chief executive officer for Vancouver Airport Services. “In addition, we can continue to partner with British Columbian and Canadian firms exporting knowhow, knowledge and best practices. The experience we have in transitioning airports from government control to private sector management will benefit the operation at Chicago Midway Airport.”