Airport Privatization

TRB’s Airport Cooperative Research Program (ACRP) Report 66: Considering and Evaluating Airport Privatization addresses the potential advantages and disadvantages of implementing various approaches to airport privatization.

Nearly all the 3,330 airports in the national airport system in the U.S. are publicly-owned and operated. However, some argue that the private sector could better fund and operate airports than public owners. GAO reported in 1996 that many barriers to full privatization existed in the U.S. In 1996, Congress created the Airport Privatization Pilot Program (APPP) which reduced some of the barriers to privatization. However, over the program's 18 years only two airports have privatized and one of them has reverted to public control. This report describes (1) the experience with the APPP; (2) challenges airport owners and investors face to full airport privatization; (3) the potential effects of airport privatization; and (4) reasons why airport privatization is more prevalent outside of the U.S., and stakeholder views on the APPP. Tables and figures. This is a print on demand report.

The possible sale or lease of commercial airports in the U.S. to private companies has generated considerable attention in recent years. Such cities as New York and Los Angeles have considered privatizing their airports. This report examines: the current extent of private sector participation at commercial airports in the U.S. and foreign countries; the current incentives and barriers to the sale or lease of airports; and the potential implications for major stakeholders, such as passengers, airlines, and local, state, and Fed. gov't's., should airports be sold or leased.