Question

1. Discuss impacts of Airport Privatization. Mention the advantages and disadvantages with example.
2. How is Sustainability defined in Aviation and how can this be achieved over the time?

Answer 1

Privatisation as mechanism to promote competitiveness which enhances the efficiency of state owned enterprises. The airports were mainly operated by the private firms and achieving higher efficiency. The privatised airports are effective not only in attracting new airlines and also producing route development strategies. The new regulatory framework through the privatisation will also improve the conditions. Inevitable temporary effects of terminal and runway construction, and renovations lead short run effects. The relation between airport ownership and the performance played an important role. The private owned firms are more efficient and more profitable.
Advantages of privatisation of airport:
Greater efficiency: The benefits from the privatisation re more than the public sector. The Automation processes make reliable and low cost airports.
No loss of taxpayer money: Airports should be run by money which is generated by the flights, not by the public. The source of revenue is mainly based on the collection from passengers, airlines and advertisements etc. They do not want any grants from the tax payer.
Competition and lower cost: The number of airports in important cities will increased through the privatization. This will increase the competition level. This will increase the incentive to reduce the cost.
Upgrades and investments: The airport construction is capital incentive business. This will leads to the innovation of new technologies in this field. This will improve the cost and efficiency of the airports.
Disadvantages of Privatisation:
Expensive financing: Private companies don’t have cheap financing. Te competitive private companies increase the operational efficiencies, which affect the financial system.
Legal hurdles: The sales of airports can be used for only for airport related cost b the government.
Vested interest from airlines: There is a big interest of airlines to keep the airport in public hands. The public enterprises enjoy large amount of benefits than the private.
Climate change occurred due to the expansion of private airports will increase. Aviation contributes 2 percent of human made carbon dioxide emissions. The reduction of emission through efficient aircraft design and high developed technology. There should be a need for commercialisation of sustainable and alternative aviation fuels. The sustain use of fuels will enhance the level of pollution and the development in the future. There is high bright in future for the aviation. There is a high level recommendation from efficient policy makers and government working will improve the aviation in the future. There is several policies which took in the novel period will ensure the future goals of airport companies. There is a high scope for aviation in future to make a global community.