AAPA: IATA challenges privatized airport model

Airport privatization has been a failure that mostly leads to higher fares for airlines but no service benefits, a study soon to be released by IATA finds. IATA has conducted what it says is an extensive study of airport privatization and expects to release it in the next few days. IATA director general and CEO Alexandre de Juniac said that as governments struggle to fund infrastructure investments—particularly for airports—many see privatization as the solution. “We have no issue with injecting private sector mentality into the operation of an airport. But our message to governments on infrastructure is that airports perform better in public hands. That is the conclusion of three decades of largely disappointing experiences with airport privatization. The primary focus of airports should be to support local and national prosperity as an economic catalyst. But in private hands, shareholder returns take top priority. And we struggle with costs at privatized airports as far flung as Paris, Sydney and Santiago... To date, we have not seen any long-term success stories. Our message to governments on airport privatization is to be cautious and to consult the industry before making any decisions.”<br/>