Airport Privatisation - How Should Airport Operators and Investors React to Changing Market Conditions
P Forbes, Alan Stratford and Associates (part of Sinclair Knight Merz Europe Ltd), UK
The downturn in the air transport market as a result of global economic recession and US terrorism has posed a serious question mark against the future of airport privatisation. How should potential airport operators and investors now react to the new market conditions? What are the financial returns from airport investment and, from a government perspective, does privatisation increase airport competition and efficiency?This paper will examine the latest techniques in airport traffic forecasting, revenue and cost projection, airport charges regulation, project finance and risk assessment. Possible models for airport infrastructure development will be reviewed including PPP (Public Private Partnership), BOT (Build Operator Transfer) and BOO (Build Own Operate) development. Key market trends will be evaluated, including the growth in global airline alliances, low cost airlines and increasing concern over environmental issues, together with their potential implications for future airport growth.
The analysis will draw on case studies of recent privatisation projects at Sydney, Manila, Lima and Larnaca airports.
Association for European Transport