Two ways to tap into monopoly profits from airports

Most investors can’t get their hands on airports. Here are two ways you can

Airplane in Athens Airport in Greece
(Image credit: Getty Images)

Airports can be excellent investments, especially if they are situated in the right location. Even if they are not ideally located, airports’ monopoly nature often provides a competitive advantage over other types of infrastructure asset. Unfortunately, most airports are owned by large private-equity companies and are not readily accessible to the average investor. There are a few select opportunities available.

One of those is Athens International Airport (Athens: AIA). It began life in 1996 under a build-own-operate-transfer (BOOT) model, whereby the Greek government took a 55% stake and investment firm Hochtief (later named AviAlliance) owned 45%. Traffic grew steadily in the early 2000s until the global financial crisis and the subsequent Greek debt crisis. Traffic flying in and out of the airport declined for six straight years after the crisis, and the airport became a prime target for Greece’s creditors.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.