Successful cases of complete privatization of airport infrastructure: the uk government's sangster international airport, airport, united states canada. Yet in 1987, detroit was the 10th busiest airport in the united states as measured by the number of aircraft take-offs and landings (also known as movements) which occur each year (see table 1) as one would expect, this has created an enormous strain on the infrastructure in detroit. Privatization has massively increased the size and efficiency of the world's capital markets, one finance expert found 11 as of 2005, the 10 largest share offerings in world history were privatizations 12 by 2010, about half of the global stock market capitalization outside of the united states was from companies that had been privatized in. In short, the answer to today's serious limitations on new airline entry at us airports is outright privatization, in which existing airport owners (cities, counties, and states) sell or long-term lease these facilities to professional airport firms.
Nearly all the 3,330 airports in the national airport system in the united states are publicly-owned and operated however, some argue that the private sector could better fund and. Similarly, the united kingdom has seen a decline in airport services outside of london and required a multi-million-dollar taxpayer bailout after the post-9/11 downturn according to a 2015 study by the uk airports commission, privatization has hurt access to aviation in rural areas of the united kingdom, and has had a detrimental effect on. Airport privatization around the world back in the 1930s, private airports in the united states were entrepreneurial in generating revenues. The purpose of this report is to analyze the outcomes of airport privatization in the united states, describe different models for the role of private firms in airports, examine the federal pilot program and its participating airports, and discuss key implications for both the public and private sectors.
While airports are commonly privatized abroad in places like europe and australia, only one airport is privatized in the united states this report reviews the policies that govern airport privatization in the united states, recent history in domestic case studies, and the implications going forward. The united states some examples of services that have been privatized include airport operation, data processing, vehicle maintenance, corrections, water and. Airport authority is single purpose authorities, which also have considerable independence from the state, or local gov, which often retain ownership of the airport or airports operated by the authority. The history of privatization strategists of the privatization movement in the united states and uk pirie is the founder and current president of the london-based adam smith institute and was. The worldwide trend to privatize airports has led congress to direct the federal aviation administration to experiment with privatization because there always is a public interest in the.
The report covers a range of potential privatization options and highlights case studies conducted at a variety of airports both within the united states and internationally appendices c through h, to acrp report 66 are available on a cd-rom that is included with the print version of the publications. Almost all commercial service airports in the united states are owned by local and state governments, or by public entities such as airport authorities or multipurpose port authorities 1 in 1996, congress established the airport privatization pilot program (appp) 2 to explore the. Airports that have applied to the airport privatization pilot program, 1997-2014 why gao did this study nearly all the 3,330 airports in the national airport system in the united states are publicly-owned and operated. In the united states commercial airports are generally operated directly by government entities or government-created airport authorities (also known as port authorities), such as the los angeles world airports authority that oversees several airports in the greater los angeles area, including los angeles international airport.
Definition privatization is the process of transferring ownership of a business, enterprise, agency, charity or public service from the public sector (the state or government) or common use to the private sector (businesses that operate for a private profit) or to private non-profit organizations. Francis slay, just weeks before leaving office as mayor in april of last year, initiated the process that could lead to the privatization of st louis lambert international airport. This article summarizes current discussion regarding the privatization of us airports in general and the federal aviation administration airport privatization pilot program in particular the lack of success of this program is analyzed in terms of general airline opposition to privatization and. Congress established faa's airport privatization pilot program to explore privatization as a means of generating access to various sources of private capital for airport improvement and development private companies may own, manage, lease and develop public airports the 2012 reauthorization act.
It's no accident that 34 of the world's top 100 airports are either fully or partly privatized if the trump administration is serious about attracting large-scale private capital to revamp and improve us infrastructure, airport privatization is an ideal place to start. In the end, i think the immediate future of airport privatization in the united states depends on the deal st louis can get, if it can get one at all if it is good enough, other mayors may pressure congress (and a likely receptive president trump) to expand and loosen the program. Draft 1999 draft 5 it must be emphasized that the conditions in the countries that have had major privatizations of airports have been almost totally different from the ones prevailing in the united states.