Governments and regulators need to initiate appropriate private investment in airports, Airports Council International (ACI) World recently said at the 2018 World Aviation Forum in Fortaleza, Brazil.
Private investment improves service quality at airports, helps deliver strong traffic growth, and increases in capital expenditure, the trade association said.
“With global passenger numbers forecast to double by 2030, stakeholders in the aviation industry are in broad agreement that investment in airport infrastructure is critical to the global economy and global connectivity especially in achieving the United Nations’ Sustainable Development Goals,” Angela Gittens, ACI World director general, said during a panel discussion on investing for growth and strategies for aviation development. “A range of objectives may lead to consider privatization and this policy option is becoming more common. Of the top 100 airports for passenger traffic, the number with private sector participation grew to 51 in 2017, five more than in 2016.”
Gittens also noted that in 2017, the top 500 airports had 39 percent private sector participation. “Single airports, airport systems and airport networks provide significant value creation for airlines, passengers and the communities they serve,” she said. “Economies of scope and scale enable airport networks to generate significant efficiencies in terms of costs and charges to airlines, while providing customers with a high quality of service.”
Air traffic is forecasted to surpass 22 billion passengers by 2040, increasing 4.5 percent annually.
If governments are unable to make necessary investments, other funding sources must be found to accommodate traffic growth, Gittens said.
Privatization is a valid option to address shortcomings in existing airport infrastructure, the panel concluded.