By Anil Kapur
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Extra resources for Airport Infrastructure: The Emerging Role of the Private Sector (World Bank Technical Paper)
Established in 1966, the British Airport Authority (BAA) was the first national airport authority to be run according to commercial practice. Several national airport authorities were created in the 1970s and 1980s, some of which were modeled on BAA. Examples of corporatized airport authorities include: The Israeli Airports Authority; Aéropuertos Espanoles y Navegacion Aérea of Spain (AENA) and Aer Rianta of Ireland; the Federal Airport Corporation of Australia (FAC); Infraero (Brazil); the Airport Authority of Jamaica (AAJ); and the Local Airport Authorities of Canada (LAA).
This increase in wealth was distributed unevenly, but with surprisingly positive consequences: foreign and domestic investors gained; some governments lost, but only marginally; employees as a group did not suffer in any case, and in a few instances profited substantially; consumers lost in only three cases as a result of much-needed price increases, but were not affected in five cases, and actually benefited in four. Behavioral changes within organizations were positive, with productivity increasing in three-quarters of the cases and remaining constant in the others.
It is increasingly clear that the emergence of regional and global trade relations will depend to a large extent on optimizing market efficiencies involving infrastructure. Over the last decade, governments faced fiscal crises that severely curtailed meeting critical investment needs in maintainance and rehabilitation of national stock vital for full participation in emerging global markets. To meet the urgent investment requirements and to increase competitiveness and sector efficiency, private sector involvement in infrastructure is a key element of economic growth strategies worldwide.
Airport Infrastructure: The Emerging Role of the Private Sector (World Bank Technical Paper) by Anil Kapur