Paris (People's Daily) – France's Toulouse-Blagnac Airport (ATB) embraced an exceptional and historic year last year after its traffic bounced to a record-setting 9.6 million passengers, or a 3.9 percent growth from 2017, said the airport’s operator, four years after a transaction that brought in Chinese investors.

People arrive at the Toulouse-Blagnac airport. (File photo: VCG)

The investment of China Airport Synergy Investment Limited (CASIL), which bought 49.99 percent stake of the Toulouse airport for 308 million euros, came at a time when the French government commenced a privatization plan to cut its public debt and harvest capital for new technology sectors. 

The acquisition was completed in 2015 between French authorities and CASIL Europe, a French entity created by Chinese state-owned enterprise Shandong High Speed Group and the Hong Kong-based investment fund Friedmann Pacific Asset Management.

The deal marked the first China-France cooperation in the airport and made CASIL the first foreign private firm to invest in and become the biggest shareholder of a major French airport. 

Back to four years ago, the stake takeover negotiation had a bumpy start due to voices in France worrying about the future of this capital airport in southeast France, also home to European aviation giant Airbus.

Two undelivered Airbus A320neo seen parked at Toulouse Airport, Southwestern France, April 15, 2016. (File photo: VCG)

By building a new terminal and improving facilities like hotels, restaurants and shopping centers, foreign investment from China brought in new vitality to the airport. The airport’s capacity was expanded to 12 million passengers annually by the end of 2018. 

Last year, the airport set a new record by receiving 9.6 million air travelers, growing by 28 percent compared to that before the entrance of CASIL investment and much higher than the target it set in the acquisition agreement. There was also a 50% increase in international passengers.

The jump was also boosted by the increase of low-cost routes, which currently represent 41 percent of the traffic. ATB has risen to France’s third largest regional airport following Lyon and Nice, on the way of transforming itself into an international hub. 

“For the first time, international traffic has overtaken domestic traffic,” said Philippe Crébassa, CEO of the ATB.

Ryanair has announced it will open a new base in ATB with 11 new routes in winter, 2019, raising its total routes to 20. The UK EasyJet was said to be involved in a negotiation to increase its fleet based in Toulouse. 

Since the acquisition, ATB has won the "Best French Airport" award in the 3-15 millions of passengers category delivered by Que-Choisir and the "Most efficient airport of France" by Flight-Report. Exchanges between Toulouse and China increased as well, especially in terms of direct lines and tourism.

Despite the success, a dispute rose in 2017 between the airport's French public shareholders and CASIL Europe, accused by the former to desire to "maximize its dividends". 

Now seeing the first phase of its investment in ATB near its end with all the growth measures implemented, CASIL decided to sell its share and discussions are under way.