Airports-Public or Private

Wednesday, February 21, 2007

In today’s Austin American-Statesman newspaper, there is a report that the city 0f Austin officials are thinking of an idea to hand over its airport-Austin Bergstrom International Airport-on lease to private hands.
The report is well written, and the news is building up with comments, mostly against privatization so far, from austinites. It interests me as I am against this craze for privatization. Further, it interests me more to be aware that in a country which believes in private enterprise, also has its citizens voice their opinion against privatization. I hasten to add that I am not against private sector, but would like to go by merits of the issue.
I am on a second visit to this city, and my first step had been on the soil of ABIA, and the Airport ambience impressed me, more so, when I compare it to the airports in India.
There has always been an acrimonious debate whenever the government wants to privatize a service, an organization or anything it hitherto held control. Whatever arguments it puts forth, the objective is to reap revenues.
There is a wrong concept amongst the officials that things work better under private sector; are more profitable; are efficient in their operations; etc, Etc..What matters is a realization on the part of these officials that what sector should be under government control, and what should not be.
The report in the newspaper also mentions that some of the airports in Europe are privately run, and have mixed reactions both for and against the way they are run. It also says that the government run airports in Far East are rated very high.
In other words, we can say that this sector-Airports control- could be handled equally well by both the Public and Private sectors. But what can be attempted is, with the existing set up, to examine the feasibility of increasing revenues without causing hardships to all round community the ABIA is serving.
Presently, the airport revenues are to be used only for improving the airport as per federal law. Perhaps this rule could be modified at appropriate levels to seek a share of it for spending on other public works.
In the recent past, I read reports that ABIA has plans for increasing more flight schedules, which could fetch much revenue through increase in passenger traffic. It could also think of making it an international hub to flights from across Atlantic and the pacific. Well, that could be a potential revenue fetching area.