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Privatize Mattala Airport !!
After 1987, when the United Kingdom privatised the BAA, the interest for privatization has been increasing across the world. In fact, more than 20 countries have completed the sale or lease of airport facilities so far. Some of them are: Argentina, Australia, Austria, Bahamas, Bolivia, Cambodia, Canada, Chile, China, Colombia, Denmark, Dominican Republic, Germany, Hungary, Italy, Japan, Malaysia, Mexico, New Zealand, Singapore, South Africa and Switzerland.
In the United States, commercial airports have traditionally been independent of the national control, operated locally by local or regional authorities and highly influenced by private interests, specifically the airlines (with enough power to decide major facets of airport management and development). While the degree of participation of private interests in airports differs broadly among states and cities, major U.S. commercial airports are operated through partnerships between the government and private firms.
The preferred model of privatisation of airports in Europe has been the sale of equity. This was pioneered by the United Kingdom with its initial public offering of 100 percent shares of the former BAA in 1986. After being privatised, BAA, plc has become one of the biggest international participants in the airport industry.
The Australian airports privatization program began in April 1994 when the Australian Government announced its decision to sell 22 airports (in several phases) that were owned and operated by the Federal Airports Corporation (FAC). A particularity of the Australian airport landscape (also seen in the United States) has been the use of the lease model for management of domestic terminals. Under long-term leases, airlines are responsible for all operational features at the terminal.
In addition, at some airports, including Melbourne and Sydney, airline responsibility extends to providing and maintaining terminal infrastructure, with the airport operator providing only the land for the domestic terminals that are under lease.
In other Asian countries, many major airports are expected to be privatised in the near future. Among them are those in Tokyo, Hong Kong, and several airports in India. Currently, the airport landscape in China can be defined by a group of prospering big airports (especially those in Beijing, Shanghai, Guangzhou and Shenzhen). The ongoing structural reform in airport sector has provided an opportunity for these airports to seek funding from capital markets as well as strategic investors.
In Latin America, the most common way of privatising airports has been through concession contracts. Concessions allow a country to retain ownership of airport assets while private promoters carry out the investments required. Additionally, the lack of developed capital markets presents a major hurdle for other ways of privatisation.
After 1987, when the United Kingdom privatised the BAA, the interest for privatization has been increasing across the world. In fact, more than 20 countries have completed the sale or lease of airport facilities so far. Some of them are: Argentina, Australia, Austria, Bahamas, Bolivia, Cambodia, Canada, Chile, China, Colombia, Denmark, Dominican Republic, Germany, Hungary, Italy, Japan, Malaysia, Mexico, New Zealand, Singapore, South Africa and Switzerland.
In the United States, commercial airports have traditionally been independent of the national control, operated locally by local or regional authorities and highly influenced by private interests, specifically the airlines (with enough power to decide major facets of airport management and development). While the degree of participation of private interests in airports differs broadly among states and cities, major U.S. commercial airports are operated through partnerships between the government and private firms.
The preferred model of privatisation of airports in Europe has been the sale of equity. This was pioneered by the United Kingdom with its initial public offering of 100 percent shares of the former BAA in 1986. After being privatised, BAA, plc has become one of the biggest international participants in the airport industry.
The Australian airports privatization program began in April 1994 when the Australian Government announced its decision to sell 22 airports (in several phases) that were owned and operated by the Federal Airports Corporation (FAC). A particularity of the Australian airport landscape (also seen in the United States) has been the use of the lease model for management of domestic terminals. Under long-term leases, airlines are responsible for all operational features at the terminal.
In addition, at some airports, including Melbourne and Sydney, airline responsibility extends to providing and maintaining terminal infrastructure, with the airport operator providing only the land for the domestic terminals that are under lease.
In other Asian countries, many major airports are expected to be privatised in the near future. Among them are those in Tokyo, Hong Kong, and several airports in India. Currently, the airport landscape in China can be defined by a group of prospering big airports (especially those in Beijing, Shanghai, Guangzhou and Shenzhen). The ongoing structural reform in airport sector has provided an opportunity for these airports to seek funding from capital markets as well as strategic investors.
In Latin America, the most common way of privatising airports has been through concession contracts. Concessions allow a country to retain ownership of airport assets while private promoters carry out the investments required. Additionally, the lack of developed capital markets presents a major hurdle for other ways of privatisation.
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