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Extra resources for Airport Infrastructure: The Emerging Role of the Private Sector (World Bank Technical Paper)

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1 Ahmed Galal, Leroy Jones, Pankaj Tandon, Ingo Vogelsand, "Welfare Consequences of Selling Public Enterprises" World Bank, 1992. 7 In most developing countries, the demand for freight and passenger transport is growing faster than population and GDP growth rates. Moreover, the structure of freight transported has shifted dramatically. Globally, the share of raw materials moving between regions has declined while the share of cross-movements of manufactures and semi-manufactures has increased. Manufacturing exports now represent over 50% of total exports in low-income developing countries, more than 60% in middle-income countries, and in excess of 90% in Asia's newly industrialized economies.

17 Numerous articles and conference papers have appeared in recent years dealing with various aspects of airport management. However, the literature is limited on how different forms of airport ownership structures are responding to changes in strategic aviation policies, such as the consequences of airline deregulation. Due to the limited availability of literature and the diversity of structures and approaches, the study team complemented its research with visits to selected airports in three geographical regions.

Each authority is a non-profit corporation headed by a board of directors. Members are nominated by local municipalities and other representative local groups, but cannot be elected politicians or civil servants. Profits generated by LAAs are plowed back into future airport improvements, while losses are offset by Transport Canada through a reduction in lease payments. The LAAs are responsible for management, operation, and maintenance, as well as capital investment projects of the airports they lease.

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Airport Infrastructure: The Emerging Role of the Private Sector (World Bank Technical Paper) by Anil Kapur


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