The US Federal Aviation Administration signed off on Tuesday on a 40-year lease of Puerto Rico's Luis Munoz Marin Airport to Aerostar Airport Holdings, making it the first large US airport to be placed in private hands.
The deal for the Caribbean's busiest airport, with nearly 9 million passengers a year, is a milestone in Puerto Rico's privatisation programme and a bid to expand tourism to help an economy that has long been ailing.
Puerto Rico officials have valued the deal at USD$2.57 billion, which includes a USD$615 million up-front payment and annual revenue-sharing payments estimated to add up to USD$552 million.
The balance of the deal involves investment in modernising and improving the airport. Aerostar has pledged to invest an average USD$46 million in the facility each year, or more than three times the current USD$13.5 million average annual investment.
"The selected private operator is qualified to operate the airport, meets federal expectations regarding grant assurances, and can comply with general statute requirements relating to airports," the FAA said in a 40-page decision released on Tuesday.
AAH is comprised of Aeroportuario del Sureste, which operates nine airports in Mexico, and Highstar Capital, which has made investments in Baltimore and London and has close relationships with British Airways, Lufthansa and Air France.