The airport business in a competitive environment (original) (raw)

Airports have traditionally been considered as public utility providers, with little potential to develop significant market opportunities. Liberalisation of the air transport market around the globe has introduced new dynamics into the airport industry. The emergence of competition and the transition in ownership (towards privatisation or commercialisation) demand a different perspective in airport management. This paper aims at explaining the complexity of the airport business, in particular in what concerns the role of the airport as a firm that operates in a network of stakeholders, to produce a set of service packages targeted at several types of customers.

Airport governance reform: a strategic management perspective

Reform of airport governance structures through corporatization, privatization and other approaches to commercialization is intended to attain a number benefits for air transport system stakeholders. While reformers often want managers to bring a commercial and strategic orientation to the operation of an airport they often create regulatory and governance structures that inhibit such an approach. This paper shows how different modes of governance tend to create trade-offs between stakeholder outcomes. It is suggested that different governance modes embody constraints and incentives that determines the type and quantity of managerial and financial resources that private sector agents will bring to the operation of airports. Additionally, the effectiveness of particular governance modes depends upon national institutional context.

Privatization and Regulation: A Review of Airport Industry Practices

While airports were seen as purely public establishments for many years, today approaches to airport governance have been changing in many countries and private participation has become a part of many governments’ agenda. This study aims to examine methods, incentives and outcomes of private participation in airport management and operations and different regulation applications in different countries. Findings show that there are many similarities between countries both in incentives and outcomes of airport privatization. On the other hand, some country-specific reasons and results need to be examined in their contexts.

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