While airport privatization is commonly prevalent in Europe and Australia, circumstances unique to the United States limit the usefulness of privatization in solving airport problems, the Eno Center for Transportation said in a recent report.
The organization examined the argument private sector investors have made for giving over airport parking, concessions, and landing fees to their control. Their governmental proponents of privatization have argued that such a transfer could see enhanced airport infrastructure investments, leading to better runways, modernized terminals, and improved ground access.
“Airport privatization proposes to bring the two together: governments give airport investment and management responsibilities to a private company that keeps excess returns, and then invests to attract more air service and passengers,” the Eno report said.
Only one airport in the United States is privatized, and while privatization may seem like the answer, Eno urges caution, saying policymakers need to do a better job of understanding what they are trying to fix before implementing such a change.
“Most privatization efforts today are either ideological or are rooted in asset recycling efforts for one-time government cash infusions for other priorities,” the report said. “The latter can be a positive net gain, but does not solve any specific airport problem nor does it give airport owners flexibility and control in the long term. Privatization for its own sake is bad public policy. But airports should have it available as a tool and evaluate it along with all other options.”