Grantley Adams International Airport (GAIA) is poised for a major shift as it seeks to establish a public-private partnership for the operation and expansion of the airport. The new plans for the airport allow the government to retain ownership, but it would be run by a private sector company. Here, GAIA CEO Terry Layne explains his airport’s plan to invest millions in runway repaving and digitization efforts, such as automated passport control kiosks. Such efforts only promise to increase Barbados’ appeal as a tourism destination as new flights from Lufthansa make the island more accessible than ever

GAIA is the main gateway to Barbados and the eastern Caribbean. What are the major milestones that best reflect the evolution and current situation at the airport?

Right now, we are in the process of transitioning to a public-private partnership (PPP) arrangement for the airport, which is a major shift. The current company managing GAIA was incorporated in 2006. The company is 100% owned by the government, so the government will be handing the operation of the airport over to a private operator, but will maintain full ownership of the airport. That is a major milestone in our history. Obviously, we’ve had a rich aviation history here, as one of the only places besides New York that was privileged to receive scheduled British Airways Concorde transatlantic flights. We’ve always been seen as an aspirational destination; airlines have always done their best to ensure their product matches the market. Prior to joining GAIA, I worked for JetBlue, and Barbados was one of the first places to receive JetBlue’s premium service options. It speaks to the airport as a reflection of a country that has remained a top player in the region.

The airport is the entry hub for tourists and allows cruise passengers to reach their final destination. What has arrivals growth been like over the past few years and where are the passengers coming from?

We’ve seen year on year arrivals growth for the last four to five years. A major source of passengers for us has been the UK market. The US has grown significantly over that period as well, aided by regular flights with JetBlue and American Airlines. Canada is quite large as well, and regional traffic within the Caribbean plays a significant role. With Germany, we’ve not yet had much growth but we anticipate that to change with the introduction of the Lufthansa Eurowings direct flights coming in. This will be a very big boost for the airport and our role in the German market. It’s a market that has very high potential. With these new flights, we expect the levels of arrivals from Germany to increase, however it may take two to three years for the market to grow. You can introduce the flight, but it takes time to penetrate the market. Even if you’re in an origin like Frankfurt, you have to branch out to other cities. Barbados and the airlines market the route to these secondary markets, but it takes time. It also provides passengers in the secondary market the opportunity to visit Barbados via Frankfurt rather than coming through London, which is the current standard.

The airport runway will be repaved at a cost of $58 million. What is the operational impact of this investment?

We need to repave the runway because it has to be repaved every 15-20 years. We expect little operational impact because most of the work will be done at night. JetBlue has a middle-of-the-night flight, which will be impacted, but most of our traffic will avoid that time. It is a must because we need to have a good runway for planes to land on and we are due for the reinvestment.

The airport has also upgraded some services. How have the upgrades improved services and changed the passenger experience?

We implemented Automated Passport Control kiosks, which reduce time at immigration significantly. We were one of the first in the Caribbean to introduce that technology, and the first Caribbean nation to completely do away with landing card forms. There are other incremental updates and changes that we want to add to the system in the next couple of months that will make immigration even easier. In terms of baggage, in collaboration with the Barbados Revenue Authority, we have installed scanners on the arrival end that will scan for contraband and reduce wait time at customs. The additional screening will be more efficient because it operates on a risk-based approach whereby persons will be stopped when there is an identified need. That mandate has gone to the Barbadian Customs department and should streamline the process significantly. When a country makes these investments in infrastructure, it makes it a more attractive destination to investors, airlines and visitors. In terms of getting the word out about the changes, there is nothing better than word of mouth. We can spend millions in advertising, but a good review from a passenger who has experienced the upgrades and the improved experience goes a long way.

What is the impact in terms of expected growth with Lufthansa introducing the new flights from Frankfurt?

As I mentioned before, this new flight is a great step and indicator of interest in Barbados in the German market. We hope that Frankfurt will become a gateway and will create opportunities in new markets across multiple cities.

Can you elaborate on the PPP process for the airport and how it can potentially be of interest to German investors? Are there opportunities for them to become involved in the project?

If anybody in Germany is interested in airport operations, GAIA is a wonderful investment opportunity. We are in the second phase of the project. We have completed due diligence and have a Transaction Structure Report approved, so we know how the airport will run in this partnership and now we are looking for partners to express interest. We do have a lot of high-net-worth individuals who visit and live in Barbados. There are investment options related to airport operations, and I know that Prime Minister Mottley has developed a strategy for other investment opportunities in the country.

Investment in the airport itself is a sure chance for success because of how profitably the airport has been run over the past few years. The consistent interest from airlines and the potential for growth makes the airport a very worthwhile investment. In regard to high-net-worth individuals, as part of the pavement rehabilitation works, we are building space for additional hangars on the southern portion of the airport for people who may want to base their aircraft here. On the other hand, we have developed a Small Business Opportunity Program with reduced-rent kiosks within the airport terminals that are allocated for local entrepreneurs. The scheme will allow them to have exposure for their goods with an international audience, and provide a more diversified commercial experience for passengers.  On the whole, Barbados is at the cusp of a transformation. Prime Minister Mottley has outlined ways in which she wants to transform the Barbadian economy and with that, I know there will be many other opportunities for FDI into the country. The airport is just the start of this.

Do you have any final words for readers of Die Welt regarding opportunities in Barbados?

People don’t know they have options unless you let them know. We need to get our name out there. Barbados had some economic issues in the past, but Prime Minister Mottley has done a tremendous amount of work during her first two years to turn Barbados around. This now allows us to get back out there and promote the Barbados brand. Prime Minister Mottley’s vision is global. While the US, Canada, and England are comfortable markets for us, it is clear that we need to think beyond that. Our passenger traffic and investment have to be at new levels to aid our economic recovery. The Government has established new diplomatic relationships with countries we haven’t engaged with deeply before, with the intent of creating investment opportunities and other incentives that will make Barbados a more attractive destination.