ACI Europe, an industry association that brings together some 400 airports in 45 European countries recently published a report saying that there were two kinds of airport. Those with inadequate traffic, and those with inadequate capacity. The former had to be mondernised, the latter expanded. In this spirit, European airport operators are planning to invest at least $60bn by 2025. This level of investment is often too much for state owners, which has led to huge growth in private investment in the field, spurred on by privatisations in bother western and eastern Europe.

The second largest airport operator by passenger traffic is the French company Aéroports de Paris (ADP). Last spring, the French government incorporated the company as a 100 per cent state-owned limited company as a first step towards floating it. A first offering is expected in the first half of 2006. The privatisation will follow the British model, as will a planned restructuring of the company. Around the world, airport operators are earning growing sums from letting retail units and other types of property in the airports – an attractive source of revenue, in a world where landing fees are tightly regulated.

Among the eastern European airports, Warsaw remains in state hands, while Prague airport, along with its recently opened new terminal, is to be floated next year. The Czech government is looking not for a strategic partner, but an institutional investor who could finance the airport's expansion.

The Slovak government has received four bids for the sale of a 66 per cent stake in the airports at Bratislava and Kosice. A decision is expected shortly. Flughafen Wien is regarded as the frontrunner, though some suspect the company wants to get its hands on Bratislava airport to prevent it from emerging as a competitor. The privatisation of Varna and Brugas airports in Bulgaria has already resulted in legal action. Copenhagen Airports won the tender, but the contract was annulled by a Bulgarian court, which said the Danish company had insufficient experience. The government had to hold discussions with the two other contenders, Fraport of Germany and Vinci of France, the court ruled.