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Airport Privatization Privatization means reducing government involvement in the provision of services to State Corporation. In reference to airport privatization, the government hires private sectors to provide services such as cleaning, shuttle transportation, and operation of various service activities. In the United States, the first commercial airport was mostly controlled private sectors which play the significant role which offers services such as leasing terminals and delivering most airport services. This private participation allows the airports to operate efficiently, efficient and to be commercially oriented in all investment decision .majority or the airports across the world, are managed and owned by the state government, (De Neufville, 1999). Currently, this scenario has change and the countries now lease, sell or dispose of the majority of its shares for an airport to reduce its participations to the private sectors.In the case of United States, economic and legal constraints have discouraged the increasing rates of privatization of US airports. In contrary federal aviation administration has extensively permitted some forms of privatization that include giving authority private sectors to build and lease terminals or outsourcing management staffs, perhaps they have shown a lot of dangers that is associated with the full privatization of the company. Furthermore, many commercial airports across the world have tried to reduce their dependence on the government assistance and therefore make their operation more businesslike.US airports have formed a mechanism of reducing their operation costs and facilitate proper service delivery by collaborating with
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