Privatization of Airports

Decent Essays


Conceptual Understanding of the term ‘Privatization’

‘Privatization’ is a generally a process through which the ownership and control of a government entity is transferred to a private entity. The transfer can be either in whole or partial. Different connotations of the term ‘privatization’ as enumerated in various articles and journals are as follows :
1. Movement of an entity from the federal government to a local or quasi-governmental agency where a private sector mode would be used.
2. Political policy of the national government.
3. Government entity which is partially owned by private sector.
4. Transfer of state owned enterprises to private economic agents in order to gain the benefits occurring under private ownership.
5. Contracting out of service delivery to private organisation.
6. Policy of structural change that might cause state owned enterprises to behave like private firms.
7. Expansion of Private sector participation without ownership.
8. Private Sector Financing.
Anne Graham in the book “Managing Airports” has clearly demarcated the differences between Airport Commercialisation and Airport Privatization as follows: Airport commercialization: The transformation of an airport from a public utility to a commercial enterprise and the adoption of a more businesslike management philosophy. Airport privatization: The transfer of the management of an airport, and in many cases the ownership as well, to the private sector by a variety

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