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.
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