Airport Privatization Essay - 863 Words

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) to gether 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 toShow MoreRelatedPrivatization of Airports750 Words   |  3 PagesPRIVATIZATION OF AIRPORTS 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. 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But the legislation winding its way through the legislative maze that is Congress does anything but move towards increased privatization. S. 1331, sponsored by Senator John McCain (R-AZ), would make itRead MoreTransportation Service Administration and Aviation1387 Words   |  6 Pagessecurity acts and the creation of TSA, what does that mean? Prior to November, 2001, airport security was contracted by either the airport or the airlines to the private sector. The Aviation and Transportation Security Act required all airport security personnel be employed by the federal government. (Rahn, 2001) Was it necessary for the federal government to federalize airport security? The debate for privatization suggests that the functions of entire bureaucracies should be contracted out to private