University | Singapore University of Social Science (SUSS) |
Subject | EAS415: Airport Planning and Management |
EAS415: Airport Planning and Management Essay, SUSS, Singapore As the privatization of airports progresses throughout the world, airport commercialization dominated in the 1970s and 1980s
“As the privatization of airports progresses throughout the world, airport commercialization dominated in the 1970s and 1980s but, in the 1990s was the decade when airport privatization become a reality. But what is meant by ‘airport privatization’? It is a vague term that can have various meanings.
In its broadest sense, it’s associated with the transfer of economic activity or control from the public to the private sector. Privatization involves the removal of management to private hands, but not always ownership”
For that reason, we interpreted the types of airport privatization, where the main objectives of these types are for the efficiency of operations. To add-on, “the selection of the most appropriate type of privatization involves a complex decision-making process that ultimately will depend on the government’s objectives in seeking privatization”.
Also, we had found an example of privatized airport ownership in the United Kingdom, where they had successfully agreed upon new ownership for the future development of the airport.
And lastly, this report, therefore, has provided the lists of benefits and risks concerning the current and future airport operators in determining the success of airport privatization in the long run.
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