Privatization could be full privatization or just partial privatization. Financial implications of the idea of privatization must be thoroughly revised so that a clarified and transparent decision would be made. Ownership of airports takes place in many different forms. It could be through management articulating new investment programs such as selling of assets; management contracts; and private and public partnership agreements. Objectives of airport privatization includes modernization of both land and air-side facilities of the airline, minimize public or rather government interruption in airport management and operations, facilitate utilization of private capital and funding, building and financing airports, and or finally improving of service quality and efficiency (Vasigh, 2007).
Traditionally, airports have been managed, operated and owned by the government entities. United Kingdom started privatizing its ai...
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...n there long enough in the United Kingdom and hence most airports in UK are privately owned such that they generate a lot of profits due to passenger traffic despite the high government charges in airline fees.
In Conclusion privatizing of airports is generally meant to facilitate private financing for airport development, increase efficiency and upgrade its facilities. This has largely contributed, to fully or partial privatization of airports. Airports sought to expand and diversify their financial sources of funding for development purposes.
List of References
Adam Smith Institute, (2002). Plane Commonsense.
Retrieved from: http://adamsmith.org/80ideas/idea/70.htm
Job Consultancy, (2007). New Interest in US airport Privatization.
Retrieved from: http://www.leighfisher.com
Vasigh, (2007). Airport Privatization. Retrieved from: http://www.airports.org
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