Privitization Of Airports Essay

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Privatization of Airports

For 51 years Bergstrom Air Force Base was home to fighter pilots, bombers, troop carriers and reconnaissance jets. It was the first port of call for President Lyndon B. Johnson on his trips home to LBJ Country aboard Air Force One, it was where Chuck Yeager, the first pilot to break the sound barrier, once brought a disabled jet to rest in an emergency landing. In September 1993, in the path of military cutbacks Bergstrom Air Force Base was closed. But the timing was fortuitous, because the closure came as the city of Austin, Texas was considering where to build a new airport. In 1993, the expected economic loss to Austin from the Bergstrom closure was estimated at $406 million a year and a loss of some
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The private sector increasingly has come to view airports as an attractive investment; airports serve a dynamic growth industry--commercial aviation--and represent essential infrastructure with a near monopoly. Qualified private airport operating companies have materialized and others will evolve, while successful public airport operators are seeking to expand to provide airport management services--generally as part of broader investor groups. As a result, substantial numbers of airports will come to be operated by a worldwide network of airport operators. These worldwide operators will engage in healthy competition with each other to be efficient and offer superior services, and thus support the objectives of the investor groups in which they participate. The city of Austin expectations by privatizing were: „h Accountability. Private contractors are paid for results. This gives them an unwavering focus on performance that can rarely be sustained in a public agency. Moreover, private contractors operate under the very real possibility that if their performance is found lacking, the contract may end. This accountability is transferred directly to employees who must deliver top-notch performance to preserve their position in a private organization. „h Performance-based Compensation. Just as private contractors are

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