Airport privatisation: A successful journey?. (October 2020)

• Record Type: Journal Article
• Authors: Graham, Prof Anne
• Is Part Of: Journal of air transport management. Volume 89(2020)
• Publication Date: 2020-10
• Subjects: Efficiency -- Impacts -- Privatisation -- Regulation -- Success -- Airport; Airlines -- Management -- Periodicals; Aeronautics, Commercial -- Management -- Periodicals; 387.7068
• DOI: 10.1016/j.jairtraman.2020.101930
• Languages: English
• ISSNs: 0969-6997

Abstract

Abstract: It is now over 30 years since the first airport privatisation occurred with BAA in the UK in 1987. Therefore, the aim of this paper is to assess the impacts of this development and evaluate its effectiveness, using examples from all over the world. It begins by considering some key issues such as the extent of government involvement; the selection of operator/investor; the choice of network/group versus individual operations; and the relevance of economic regulation. This then leads on to an investigation of measures of success, particularly in relation to efficiency and service quality. Reflecting on the privatisation journey, the paper defines key changes that have occurred concerning how privatisation is considered now compared to its early days in terms of motivation, geographical reach and type of model, investor and sale. It also highlights the importance of the regulatory and competitive environment and briefly considers the impact of the coronavirus pandemic in 2020. Highlights: The airport privatisation journey from 1987 to 2020 is assessed. Key issues are the extent of state involvement and group vs individual operations. Findings related to economic performance are inconclusive. Competition and regulation as well as privatisation should be considered together.