Airport Privatization Essay

863 Words 4 Pages
Airports are key enhancers of commerce and trade; they generate massive transportation and key economic benefits (Vasigh, 2007). Privatization of airports relates to transfer of ownership of airport from public ownership sector to private ownership (Jobs Consultancy, 2007). Privatization process aims at increasing of efficiency, competitiveness and viable financing of airports. Considerations on whether to privatize an airport are made by governments and the decision has a long-term impact that follows (Jobs Consultancy, 2007). A complete and thorough review of the decision is made for a government to come up with a decision whether to privatize an airport or not. The complete review is necessary to ensure the decision is viable …show more content…
United Kingdom has been privatizing its airports either fully or partially depending on the agreement made. British Airport Authority operates its own airports and its prices are regulated by the Civil Aviation Authority (CAA) together with the government and the competition commission. The CAA also regulates all the aspects of both security and safety. British Airways Authorities owns and operates all its airports and it is responsible for all the activities of airline services.
In the UK, the government of Mrs. Thatcher decided to transfer ownership of airports to the private sector, whereby British Airports Authority (BBA), United Kingdom’s main airport provider, was privatized through issuing a public share to the interested parties in 1987. The airports privatized included London Heathrow together with London Gatwick (Adam Smith Institute, 2002). Apart from the privatization of BBA in the United Kingdom, smaller and minor airports that were operated and owned by the government authorities are also being sold to private owners and operators. These smaller airports include Birmingham International, Luton, East Midlands and Bristol. United Kingdom has continued privatizing its airports since 1987 since its government feels that it has no good reason for either owning or operating an airport.
However, there has been a world-wide trend where airports are viewed as national prestige symbols in some countries (Adam Smith Institute, 2002). The government decided to
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