Airport Terminal Privatization

Paper Summary:

Until recently, national governments of most countries have long been the sole owners and operators of their domestic and international airports. At present, a growing number of countries have been exploring ways to more extensively involve the private sector as a means to provide capital for development and improve the efficiency of all airport operations. This paper outlines the reasons why privatization is taking hold, how it may be financed, who is taking part in this strategy, who benefits from privatization and the time frame for privatization projects.

The paper makes use of tables.

Table of Contents:

Introduction
Airport Terminal Operations - Past and Present
Problems
Business Foundation and Mission for Growth Expectations
Focus of Privatization
Marketing Edge
Benefits
Limitations
Where Privatization is Taking Hold
Facilitators of Change
Streamlining the Process of Changeover
Financial Objectives
Paying for the Metamorphosis
Raising Capital
Market Promotion and Acceptance
Target Market - Concessionaires
The Benefactors - Good Business Breeds More Business
Airlines and Other Service Providers
Labor and Workforce Efficiency
Conclusion

From the Paper:

"The costs involved with basic ATO are relatively fixed. In government operated airports, there is generally no correlation to the potential amount of retail sales revenues, travel volume and pedestrian traffic.
Besides federal grants, other major sources of funding for airport development are passenger facility charges, bonds, and airport revenue. With FAA approval, airports can collect up to three dollars in facility fees from each traveler. In the United States, the FAA administers federal grants that are made available from the Airport and Airway Trust Fund to help support capital development projects that enhance airport capacity, safety, security, and noise mitigation. Most grants are allocated on the basis of a legislated apportionment formula and set-aside categories earmarked for specific types of airports or projects. Also, the FAA also has the discretionary authority to allocate the remaining funds on the basis of needs identified by airports. With FAA approval, airports can charge facility fees from passengers as well.
Financial analysis, retail planning and economic impact studies all help to combine philosophies on what approach to take when finding the money and resources to make the plan a reality."

More papers on Airport Terminal Privatization:

• Research Paper # 25441 : "Privatization for Toronto's Airport"
• Essay # 52902 : "The London-Corbin Airport"
• Descriptive Essay # 104445 : "Norfolk International Airport"

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