Privatization of Airports - 750 Words

PRIVATIZATION 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. 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 â€Å"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 varietyShow MoreRelatedAirport Privatization Essay863 Words   |  4 PagesAirports 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 go vernments and the decision has a long-term impact that followsRead MoreAirport Privatization 21980 Words   |  8 PagesAirport Privatization: Introduction: Airport plays a key role of air transport; it has a big impact on development of economics in a country. Freight passengers and cargo to any part of the world and it allows aircraft to land and take off. An airport has to have a proper infrastructure, which consists of runaways, taxiways, apron, terminal for arrival and departure of passengers, terminal for freight and ground interchange. It should have a wide range of facilities; lounge for passengers, shopsRead MorePrivatization, Commercialization and Deregulation of Airports1795 Words   |  8 PagesTOPIC: Privatization, commercialization and deregulation of airports – incentives for airport to compete and maximize profits. Increasing importance of airport concession revenue – affects performance of different airport regulations, and leads to evolving vertical relationships. As competition in the airline market intensifies, airport-airline relationship becomes increasingly important. Discuss the impacts of airports on airline competition – focus on airport performance and airline-airport relationshipRead MoreBenefits Of Airline And Airport Privatization1971 Words   |  8 Pagesturbulence and uncertainty in this increasingly low margin market. Although separate entities, airlines and airports are interdependent and could not operate without the other. A major consequence of deregulation is airline concentration and strong economic drivers are pushing towards even further concentration and consolidation (Doganis, 2006). UK airport regulation was reformed with airport privatisation, enabling a long term focus to meet international demand and to maintain a customer focused businessRead MorePrivatization Of Public Service Privatization1039 Words   |  5 PagesBecause governments found that they can not afford their varying brands of socialism in most of countries, privatization has been popular in the last decades. Public service privatization is the progress to transfer the public service, which is owned by governments, to the private firms whatever it is a profit or non-profit firms. As concerned, privatization can provide a lower price to public and more efficient services from privatised companies. However, it will also create some problems such asRead MoreDelta Airlines And Los Angeles International Airport1715 Words   |  7 PagesDelta begins a transition to Terminals 2 and 3 on the north side of the airport. While this doesn’t help with today’s delay, our goal is to greatly improve your travel experience with more terminal space, more gates and much shorter taxi times after we complete our move on May 17. Thanks for your understanding, we’ll get you to your gate as soon as we can. (Huber, 2017) Delta Airlines and Los Angeles International Airport is also promoting heavily on websites, You Tube, and local news channelsRead MoreStrengths And Weaknesses Of Airport Security799 Words   |  4 Pages I. Summary Airport security is necessary for the safety and efficiency of airlines today. Attacks involving airlines have been â€Å"among the deadliest in terms of human lives and economic impact,† even though relatively few attacks have occurred using airlines compared to other terrorism methods (Szyliowicz, 2011, p.2). Airport Security has been administered using a government-operated system since the Aviation and Transportation Security Act was enacted in 2001. The Transportation Security AdministrationRead 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 privateRead MoreLisbon Airport : International Airport803 Words   |  4 Pages Lisbon Portela Airport (IATA: LIS, ICAO: LPPT) is located 4.5 miles from city center of Lisbon, Portugal. Lisbon Airport is an international airport that has grown over the years fortifying the gateway to Europe, South America and Africa. The airport has two runways: runway 03-21 (148ft x 12484ft) and runway 17-35 (148ft x 7874ft). Lisbon Airport has two terminals, the main terminal: terminal 1, and terminal 2, where most of low cost carriers operate. The airport serves as a hub for TAPRead MoreAirline Industry1221 Words   |  5 Pagesprofit of $9 billion in 2011. After the recent credit crunch, economies are now coming back to normal, business travel is increasing and investments in the airlines are now rising. Political/Legal influences Privatization Over the years airlines have undergone large-scale privatization; previously a significant portion of airlines industry was government-owned. Privatizing the industry has led to drastic increase in the number of air service providers and the airline travellers. Legal provision