Essays on Privatisation and Business Management of European Airports Case Study

Download full paperFile format: .doc, available for editing

The paper "Privatisation and Business Management of European Airports" is a great example of a case study on management. After a conversation on privatization in the sector, this paper reviews the working and financial performance of European commercial airports by evaluating these in mixed public-private and fully private ownership to those in public control. The results of partial factor productivity (PFP), financial ratio (FRA), and data development analysis (DEA) are overview for this purpose to further explore divergences and their attribute to the degree of privatization. It also includes reviews on performance changes and changes in ownership.

The final perspective is the privatisation of airports and their impact on both management and business. There are significant differences between private and public owned airports. The public group is not homogeneous and presents structural variations between fully and partially privatized companies. Mainly we can see that difference is in operational management, utilization of assets, and capital. Privately managed or owned airports are more cost-effective whereas publicly owned airports generally produce more revenue that makes these airports obviously stronger in the financial presentation. “ Liberalisation, deregulation, and privatization have been in the limelight of economicdiscussion for more than a quarter of a century.

The aviation industry has been sharplyimpacted, including airports. In Europe, the final stage of air transport liberalization came intoeffect on April 1st, 1997. But this freedom could be meaningless until slot allocation and airtraffic control problems are resolved. Accommodating the projected traffic growth demandssubstantial additional investment, which in turn requires considerable private sector capital. ” (Button)Methods of Privatizing AirportsThere are several techniques, approaches, or methods of privatization that have not only been proposed but had been implemented. Some of them are discussed hereunder: Stocks Floatation: The public offering of different shares or stocks flotation as a secondary or initial offering is considered as the most common and popular technique of privatizing airports.

This can be practiced either in the international or domestic capital market or through both of them. Stock floatation or a public offering of shares could include the sale of partial or full shares from existing shares or through issuing of new shares.

References

Advani, A., 1998. Market orientation . The case of airport privatization. PhD thesis. Oxford:

University (Bodleian D203268).

Airline Business, 2003. The airline industry guide 2003/04. Sutton: Reed Business Information.

Airports Council International, ACI Europe, 2003. Airport charges in Europe. Brussels: ACI.

Airports Council International, ACI Europe, 2004. The social and economic impact of airports

in Europe. Brussels: ACI/York consulting.

Airports Council International, ACI Europe, 2005. Building for the future . Paying for the

airports of tomorrow. Brussels: ACI.

Aviation Strategy, 2003. Airports: Industry trends and key privatisation issues. Aviation

Strategy 7 (10), 6-10.

Aviation Strategy, 2004. The case for investing in airports. Aviation Strategy 8 (12), 4-6.

Backx, M., Carney, M., Gedajlovic, E., 2002. Public, private and mixed ownership and the

performance of international airlines. Journal of Air Transport Management 8 (4),

213-220.

Bates, J., 2004. Global airport developers: End of the gold rush? Airport World 9 (1), 14-16.

Black, A., Wright, P., Bachman, J. E., 1998. In search of shareholder value. London: Financial

Times/Pitman Publishing.

Coelli, T., Prasada Rao, D. S., Battese G. E., 1998. An introduction to efficiency and productivity

analysis, 5th printing 2001. Dordrecht/Norwell: Kluwer Academic Publishers.

Dempsey, P. S., 2000. Airport planning & development handbook . A global survey. New

York: McGraw-Hill.

De Neufville, R., Odoni, A., 2003. Airport systems: Planning, design, and management. New

York: McGraw-Hill.

Deutsche Bank, 1999. European airports . Privatisation ahead. London: Deutsche Bank AG

European Equity Research.

Deutsche Bank, 2000. Airports: Dawn of a new era. London: Deutsche Bank AG European

Equity Research.

Learmount, D., 2003. Europe gives Single Sky go-ahead. Flight International 164 (4913), 4.

LeTourneur, C., 2001. The bricks and mortar of global commerce. Airport World 6 (6), 36-40.

Morgan Stanley Dean Witter, 2000. Airports: Flocking to the super-hubs. London: MSDW

Transportation/Equity Research Europe.

OfConnor, A., 2002. Cross equity deals win support. Janefs Airport Review 14 (4), 8-10.

OfConnor, A., 2005. Private finance rebounds. Janefs Airport Review 17 (6), 13-14.

OfToole, K., 2002. Cost equation. Airline Business, 18 (7), 42-44.

Rappaport, A., 1998. Creating shareholder value, 2nd ed. New York/London: The Free Press.

Standard & Poorfs, S&P, 2002. European airport review. London: S&P European Project

Finance & Transportation/Infrastructure Finance Ratings.

Standard & Poorfs, S&P, 2003. European airport review. London: S&P European Transport and

Project Finance/Infrastructure Finance Ratings.

Standard & Poorfs, S&P, 2004. European airports credit survey. London: S&P Project Finance

& Transportation/Infrastructure & Leveraged Finance.

Vickerman, R., 2002. Private financing of transport infrastructure: Some UK experience. Paper

presented at the October Workshop on Applied Infrastructure Research, Berlin.

Vogel, H.-A., 2004. Airport privatisation and performance. PhD thesis. London: University of

Westminster.

Watson, A., Beeby, H., 2002. Money matters. Passenger Terminal World, June, 66-70.

Download full paperFile format: .doc, available for editing
Contact Us