Privitization Of Airports

2868 Words6 Pages
bulb-icon

Recommended: Objectives of privatisation in airport

Privatization of Airports

For 51 years Bergstrom Air Force Base was home to fighter pilots, bombers, troop carriers and reconnaissance jets. It was the first port of call for President Lyndon B. Johnson on his trips home to LBJ Country aboard Air Force One, it was where Chuck Yeager, the first pilot to break the sound barrier, once brought a disabled jet to rest in an emergency landing. In September 1993, in the path of military cutbacks Bergstrom Air Force Base was closed. But the timing was fortuitous, because the closure came as the city of Austin, Texas was considering where to build a new airport. In 1993, the expected economic loss to Austin from the Bergstrom closure was estimated at $406 million a year and a loss of some 1000 jobs. But with the possibility of utilizing the prior Bergstrom Air Force Base as an airport the Austin economy was expected to have an opportunity to rebound and even improve these results from the base closure by privatizing the airport. The trend worldwide toward airport privatization presents an exciting and dynamic opportunity for the flying public, governments, operators and investors. The overall success of privatization of airports has been seen by the sale of long-term leases for three of the largest airports in Australia for $2.6 billion. Following this success, the Government of Australia announced their plans to privatize fifteen more airports. Several Latin American airports already are in private hands. Major airports in Argentina, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela are already concessioned or scheduled for privatization over the next two years. Smaller airports in Central America and the Caribbean also are to be privatized. In Europe, a significant number airports have been privatized and opportunities are imminent in Germany, Portugal and elsewhere. Governments in Southeast Asia, Africa, and the world over also are developing airport privatization plans. Why has this marked trend emerged and why did the city of Austin choose to act in this capacity? Governments in many cases do not have the financial capacity to invest in airport expansion as well as meet other needs of their citizens. They are recognizing that on one hand there are limits to their own knowledge of, and expertise, in managing airports; and, on the other, that such expertise can be provided by others with the effe...

... middle of paper ...

...ith great interest in foretelling whether the actualization of Austin-Bergstrom is as much as a success in the practical as well as it appears to be in the theory.

Bibliography

Bibliography American Statesman, (1999). Airbase to Airport: A model transition [Online]. Available: URL: http://www.austin360.com/news/features/local/0131recycle.html [1999, January 31]. Austin360.com, (1998). Airport¡¦s neighbors hear city¡¦s noisy plans. [Online]. Available: URL: http://www.austin360.com/news/features/local/1015noise.html [1998, October 15]. National Center for Policy Analysis, (1999). Privatization trends. [Online]. Available: URL: http://www.public-policy.org/~ncpa/pd/private/priv.html [1999]. United States General Accounting Office, GAO/NSIAD-96-149 - Report to the Chairman, Subcommittee on National Security, International Affairs, and Criminal Justice, Committee on Government Reform and Oversight, House of Representatives, (1996). August 1996 MILITARY BASES - UPDATE ON THE STATUS OF BASES CLOSED IN 1988, 1991, AND 1993. [Online]. Available: URL: www.gao.gov [1996, August]. SFA Gazette, (1999). Military Base Development [Online]. Available: URL: www.sfa.com.

Word Count: 2753

Show More
Related

  • The Effects Of Corruption In Upton Sinclair's The Jungle

    702 Words  | 2 Pages

    In the Travel Pulse article "Airlines Leaving Us Little Choice – Like A Monopoly," posted by Rich Thomaselli, the practice of monopolization is observed in the airline industry. The author criticizes large airlines on their growth that has led to at “93 of the top 100 [airports], one or two airlines controlling a majority of the seats” (Thomaselli). The scornful article was written after recent events that have caused the Department of Justice and five States to sue two of the biggest U.S.

    Read More

  • 1978 Airline Deregulation Act (ADA)

    1477 Words  | 3 Pages

    Airlines have constantly had to adapt to fuel prices, strikes, and an ever-changing economy. During the hearings held on the federal government’s regulation on the airlines, an East Boston constituent asked Kennedy, "Senator, why are you holding hearings about airlines? I've never been able to fly," Kennedy replied: "That's why I'm holding the hearing. " It is information like this that you truly realize the overall impact of what deregulation has had on the airline industry. References The runway to the final four.

    Read More

  • JetBlue

    1701 Words  | 4 Pages

    In 1978, deregulation removed government control over fares and domestic routes. A slew of new entrants entered the market, but within 10 years, all but one airline (America West), had failed and ceased to exist. With long-term growth estimates of 4 percent for air travel, it's attractive for new firms to service the demand. It was as simple as having enough capital to lease a plane and passengers willing to pay for a seat on the plane. In recent news, the story about an 18-yr British...

    Read More

  • BAE Automated Systems (A) Analysis

    2523 Words  | 6 Pages

    Denver International Airport Construction and Operating Costs. (1997, July 5).University of Colorado Boulder. Retrieved April 28, 2011, from http://www.colorado.edu/libraries/govpubs/dia.htm

    Read More

  • Case Study: Qantas

    1629 Words  | 4 Pages

    According to the International Air Transport Association, 2001 was only the second year in the history of civil aviation in which international traffic declined. Overall, it is believed that the IATA membership of airlines collectively lost more than US$12 billion during this time (Dixon, 2002).

    Read More

  • Airline Deregulation

    1036 Words  | 3 Pages

    "Problems" in the airline industry have not risen due to too much competition within the industry. To the contrary, Washington regulators should turn the industry loose in any more ways that it can. Lowering restrictions to enter the market place, emphasizing private ownership of aviation matters, and encouraging open and free competition within the scope of anti-trust law should be the goals of the Clinton Administration. Instead of heading towards re-regulation, Washington should get out of the airline business for good.

    Read More

  • Jetstar Case Analysis

    1885 Words  | 4 Pages

    In lights of the PESTLE model, the political factors bring both opportunities and threats to Jetstar’s new proposal. Since this proposal focus on the Australia-India low price airline market, the analysis conducts involving Australia and India political environments. There are two potential opportunities in this political environment. Firstly, the Australian government has the incentive to boost the development of tourism between the two countries (Tourism Australia 2012). With the support of government, the start of the new route could be easier. For example, American government erects legislation to increase competition of the airport ‘by forcing these airports to increase the availability of scarce facilities’ (Williams 2015). Such legislations and regulations as well as financing investment or subsidies from government could directly help the airline company cut the cost. Similarly, Australian government could also have powerful intervention to influence aviation market. Thus, it is a big opportunity for Jetstar to the new route expansion if it acquires the

    Read More

  • American Airlines Business Analysis

    1567 Words  | 4 Pages

    1- Issues The main issue of this case is the lack of profits of the airline industry, an industry that should be more than profitable due to the large amount of customers, the necessity of using airlines’ services and the high prices charged by most of these airlines. What we are going to deal with is, why is this happening? And how is American airlines dealing with this problem?. To be able to discuss how American airlines wants to regain profitability, we must identify and analyse different issues such as, the company’s background, the airline industry as a whole, the demand for air travel, the marketing strategies, the distribution systems, pricing policies etc.

    Read More

  • A military base in my community

    677 Words  | 2 Pages

    Military bases are found in many communities across the United States of America. Some bases were first built and then communities formed around then. Other bases were built in communities that already existed. There are bases that were built where the government had to buy land from farmers in order to build the bases. The area planned for the base in my community, is a natural conservation area, behind a school and a large residential area. The base will also border the sea. Military bases can have several impacts on the community, it residents, on the environment, on the ecosystem, and on the water surrounding the base. A military base should not be built in my community.

    Read More

  • History of United Airlines

    610 Words  | 2 Pages

    As aviation matured, airlines, aircraft manufacturers and airport operators merged into giant corporations. When cries of "monopoly" arose, the conglomerates dismantled.

    Read More

  • Southwest Airlines Case Study Solution

    707 Words  | 2 Pages

    Before to select the proper alternative, three alternatives were analysed and evaluated under four decisions criteria: customer experience, cost, growth rate / market penetration and ease to implementation (See Exhibit 2: Factor Analysis). Between all the alternatives, it was suggested that Southwest Airlines enters to New York City by bidding the slots and gates at the LGA (See Exhibit 3: Alternatives Analysis). This alternative sustains the challenge of changing the customer experience which means adding more flights from and to the East; furthermore, entering to new markets will reinforce “the power of the network” through LGA. At the same time, this decision will allow signing more code-sharing agreements with other airlines flying to international destinations and offer new products and services to LUV customers as loyalty rewards, in-flight internet, onboard duty-free purchases, etc.; as a result of this, it will increase passenger’s insights and experiences by flying with Southwest Airlines. Nevertheless, there is potential risk by selecting this alternative, in the recent years the energy prices has had a huge increase affecting costs, fares and even capacity needed, however Southwest Airlines has been able to hedge fuel for decad...

    Read More

  • Government Impact On Airline Industry

    1367 Words  | 3 Pages

    Before we discuss government intervention and its affect on an industry’s competition we must first seek to understand the five forces framework. The theory, discussed in 1979 by Micheal Porter seeks to evaluate the attractiveness of an industry. Throughout this essay I will explore the theory and then relate government action and its well-documented affects on the airline industry.

    Read More

  • The Airline Industry: SWOT

    882 Words  | 2 Pages

    Tom, Y. (2009). The perennial crisis of the airline industry: Deregulation and innovation. (Order No. 3351230, The Claremont Graduate University). ProQuest Dissertations and Theses, , 662-n/a. Retrieved from http://search.proquest.com/docview/304861508?accountid=8364. (304861508).

    Read More

  • London Heathrow Airport

    1066 Words  | 3 Pages

    Airports can be considered as important national resources of most countries in the world. The main responsibility of an airport is in transportation of people and goods and in internal and global business. They are where the nation’s aviation system connects with other modes of transportation and where state responsibility for managing and regulating air traffic operations intersects with the role of governments that own and operate most airports. However, most major airports are owned and operated by the private sectors. This is due to several reasons such as to improve efficiency and economic performance, be more competitive as well as to maximize the community’s return from the airport assets in which public enterprise found out to be less efficient in term of its production and management.

    Read More

  • Lufthansa Case Study

    1197 Words  | 3 Pages

    Additionally, deregulation and liberalization has accompanied the globalization of the airline industry, so that companies have had to compete against each other in new markets, as well as to gain entry into new territories. The rise of low cost local and regional airlines has made the competitive environment difficult to maneuver for large, formerly-state-subsidized national carriers. This has resulted in the need for strategic alliances between airlines in order to attempt to protect market shares and profits (Friehe and Curti, n.d.).

    Read More

More about Privitization Of Airports

Open Document