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Over the past several years, almost every major airport conference has included an agenda item that was either directly or indirectly related to airport privatization. In 1992, AAAE produced its own study on this topic that was subsequently updated in January, 1997. Likewise, in 1996, the U.S. General Accounting Office published an examination of airport privatization that provided background for the Federal Airport Privatization Program that was implemented this fall.
The worldwide demand for airport infrastructure funding is driving airport privatization efforts in almost every country except the U.S. Companies engaged in the business of airport management/ownership are increasing and many governments are in the process of evaluating privatization options. However, in the U.S., because of revenue diversion limitations and other issues, there are only a handful of U.S. airport privatization examples (Indianapolis, Burbank, Atlantic City, Albany and a few others).
This is not to say that interest in privatization of U.S. airports is not increasing. In September, 1997, the Los Angeles-based Reason Foundation published a policy brief titled "Airport Privatization Pilot Program (copy available through Janelle Olson, NWAAAE Executive Secretary). This brief, designed to stimulate privatization interest and dialogue, was mailed to mayors, city councils and transportation officials overseeing the 100 largest U.S. airports. Additionally, private management firms and consulting services are actively marketing privatization to communities and airport operators.
So, why is this important to us? Currently, the popular literature on governance and public services relates primarily to the elimination of bureaucracy and gains in government efficiency. Local officials are exposed to countless articles with anecdotal privatization examples. In many cases, local governments are short on financial resources and officials are looking for ways to (guess what) do more with less. In this environment, many airport managers may be faced with fielding questions about airport privatization and/or defending current management practices. Here in Eugene, city officials are beginning to consider and evaluate various methods, including private options, of providing public services.
During the past several months, I have had several discussions with Chapter members on this topic. There appears to be an interest on the part of some members to learn more about airport privatization. For example, what are the fundamental benefits and limitations of privatization of airport infrastructure? Is it likely that U.S. airports can be successfully privatized? These are professionally relevant questions for some of our Chapter members. If there is enough interest within the Chapter, we will explore providing a Chapter-sponsored opportunity for learning more on this topic from leaders in the field of airport privatization. If this idea interest you, please drop Janelle or myself a note prior to the March 13, 1998 NWAAAE Chapter Board Meeting.