Governments need to use caution when considering the privatization of airports, the International Air Transport Association (IATA) said at its annual general meeting this week.
IATA members unanimously passed a resolution to urge governments to prioritize the social impacts of an effective airport and long-term economic goals over short-term financial gains through privatization.
Globally, 14 percent of airports have some privatization. This small percentage of airports, however, handles 40 percent of air traffic.
Airport privatization has yet to live up to its promise, Alexandre de Juniac, IATA CEO and director general, said. Private sector airports are more expensive to operate with no gains in investment or efficiency, he said.
“There’s no one-size-fits-all solution,” de Juniac said. “A broad range of ownership operating models exist that can meet a government’s strategic objectives without a transfer of control or ownership to the private sector. Globally, many of the most successful airports are operated as corporatized entities of governments. Governments need to evaluate the pros and cons of different models taking into account interests of shareholders, including airlines and customers.”
The IATA urges governments to use rigorous regulation to lock-in the benefits of competitive airport infrastructure and make informed decisions on ownership and operating models.