September 30, 2008
Citi Infrastructure Investors, Vancouver Airport Services and John Hancock Win Concession and Lease of Chicago Midway Airport
CHICAGO and RICHMOND, B.C. Sept. 30 /PRNewswire/ -- The Midway Investment and Development Corporation ("MIDCo"), comprised of Citi Infrastructure Investors, Vancouver Airport Services (YVRAS) and John Hancock Life Insurance Company today announced that it has won a US$2.521 billion, 99-year lease contract to operate and develop the first privatized major airport in the U.S., Chicago Midway Airport.
Chicago Midway Airport offers service to more than 55 destinations and consistently ranks among the top 30 airports in the U.S. for passenger volume. In 2007, it handled more than 19.3 million people and 304,000 aircraft operations. Together with the city's O'Hare Airport it serves the third largest metropolitan area in the U.S., with a population of 10 million people.
"This contract 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," said Larry Berg, President and Chief Executive Officer, Vancouver Airport Authority. "Since the mid-nineties, our subsidiary, YVRAS, has grown from a great idea into a global airport operator, and we're proud of this homegrown success."
"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," said Felicity Gates, co-head of Citi
"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, Transportation Finance, John Hancock Life Insurance Company.
"This is an excellent opportunity for the company, our employees and our network of airports," said 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 know-how,
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."
About Vancouver Airport Authority
The Airport Authority is a community-based, not-for-profit organization that operates Vancouver International Airport (YVR). Canada's second busiest airport, YVR expects to welcome 17.9 million passengers in 2008, and is the Official Airport of the Vancouver 2010 Olympic and Paralympic Winter Games. The Airport Authority is undertaking a $1.4-billion capital program that will ensure the airport meets the growing demand for air travel and continues to be developed as a premier global gateway and economic generator for British Columbia.
About Vancouver Airport Services
Vancouver Airport Services (YVRAS) is North America's leading global airport investment, management and development company. In 2007, the YVRAS network included 18 airports in seven countries including Canada. Total revenue earned across YVRAS-operated airports was $433-million. Its combined passenger traffic totaled more than 29 million. The company received the 2007 BC Export Award for Professional and Services given by the B.C. Government and Canadian Manufacturers & Exporters. YVRAS brings its global experience, world-class operating standards and commercial success to airports in vastly different competitive and cultural environments. YVRAS itself is a 50/50 partnership between award-winning Vancouver Airport Authority and CII and is CII's exclusive platform for investing in airport assets.
About Citi Infrastructure Investors
Founded in 2007 with offices in New York and London, Citi Infrastructure Investors, a unit of Citi Alternative Investments, a division of Citi, seeks to capitalize on the growing need for infrastructure funding around the world and increased private sector involvement in infrastructure related investments. CII manages equity investments in infrastructure assets and oversees a management company focused on the operation of these investments.
About John Hancock Life Insurance Company
John Hancock Life Insurance Company is part of John Hancock Financial Services, a unit of Manulife Financial Corporation. Manulife is a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners.
The Midway Investment and Development Corporation
Web Site: http://www.citigroup.com/http://www.johnhancock.com/http://www.yvr.ca/