Question

Explain the various issues and challenges faced by Airport Privatization ?

Answer 1

Privatisation is process in which the organisation or any industry is being owned and controlled by private owners and not the government. Airport Privatisation have its own challenges and issues fas seen by the people around the globe which are:

1. Cost inefficiency: One major issue that can be seen after the airport privatisation was the cost inefficiency around the world. This issue is very prominent as companies would make and produce services and charge as accordingly from the customers which thereby turn into higher prices and charges as well. There is no systematic production of the services as profits are been given more importance than customer wellfare.

2. High Charges: Again as discussed earlier, privatisation would effectively lead to higher charges as well. It is because of thr fact that there is no indepedent regulation in the existence which would look for the people and do their benefits. Thus, this makes the charges go higher.

3. Inequality: As not everyone is having such income that one person is able to pay the higher charges and cost of the services of an airplane to travel, this also makes the income inequality bigger as people are not able to consume this service effectively.