Privatizing Airports-Options and Case Studies

Traditionally, the air transport
sector--airlines, airports, and air navigation services--has
been in state hands. The private sector became involved in
the sector only recently, beginning with the airlines.
Privatization of airport infrastructure and private sector
participation in air navigation are also at an early stage.
The air transport sector will require large capital
investments over the next fifteen years to modernize
aircraft fleets, improve airport infrastructure, introduce
more sophisticated air navigation systems, and meet the
demand of new markets. There is no doubt that governments
will be unable to fund all necessary investments, and that
the private sector will therefore play an increasing role in
meeting the sector's needs. Table 1 in this Note
presents three options of private sector participation in
airports. Table 2 presents two options most suitable for
transferring airport activities to the private sector. The
Note also outlines cases of airport privatization in
Colombia, Jamaica, Canada, and Northern Ireland.