Airport Privatization 2

1980 Words Jun 3rd, 2011 8 Pages
Airport Privatization:

Introduction:

Airport plays a key role of air transport; it has a big impact on development of economics in a country. Freight passengers and cargo to any part of the world and it allows aircraft to land and take off. An airport has to have a proper infrastructure, which consists of runaways, taxiways, apron, terminal for arrival and departure of passengers, terminal for freight and ground interchange. It should have a wide range of facilities; lounge for passengers, shops and a food court. For safety and security it has to have an air traffic control to monitor all the incoming and outgoing flights to take off and land, security personnel requires for baggage checks, individual screening using metal detectors, and
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In United states, commercial airports have traditionally been independent of the national control, operated locally by local or regional authorities and highly influenced by private interests, specifically the airlines (with enough power to decide major facets of airport management and development). While the other degree of participation of private interests in airports differs broadly among states and cities, major U.S. commercial airports are operated through partnerships between the government, local interests and private firms.

The Australian airport privatization began in 1994 when the Australian government announced the decision to sell 22 airports that were owned and operated by the Federal Airports Corporation (FAC). Under a long term leases, airlines are responsible extends to providing and maintaining terminal infrastructures, with the airport operator only the land for the domestic terminals that are under lease.

In other Asian countries, many major airports are expected to be privatized in the near future, including Tokyo, Hongkong, and several airports in India. The ongoing structural reform in airport sector has provided an opportunity for these airports seek funding from capital markets as well as strategic investors.

Types of Privatization:

* Share flotation * Trade sale *
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