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THE UNITED KINGDOM: PAVING THE WAY FOR AIRPORT PRIVATIZATION - Coggle…
THE UNITED KINGDOM: PAVING THE WAY FOR AIRPORT PRIVATIZATION
Airports Act 1986
The first part of the Act
concerned with the then government-owned British Airports Authority
This reflected the overall aim of the conservative Thatcher government
utilities and communications
increase share ownership among the UK population.
The second part of the Act
required all airports with a turnover of more that £1 million in two of the previous 3 years to become companies
The most significant impact
has been the change in ownership patterns which have emerged
BAA
BAA subsequently dramatically expanded the retail part of its business
became a global player in airport management by having interests in airports in as diverse areas
the new situation at the regional airports gave them considerable more opportunity to commercialize their activities
Type of airport
full privatization
through a trade sale to a strategic partner
Southend airport is an example
partial privatization
gives them access to finance but also enables some local public control to be maintained
Newcastle and Norwich airport are example
establishing a joint venture company
Birmingham airport is an
interesting example
A few local authority airport owners remained strongly opposed to privatization
moves
Manchester airport
Its public sector status, however, meant that it was not free to expand internationally on equal terms with competing private airports
April 1999, , this situation changed with legislation
introduced to allow for the larger profitable regional airports which were still in local governments hands
Other airports in the UK
Belfast International was privatized by means of a management buyout
Highlands and Islands Airports Ltd, a stateowned company, operates nine airports in Scotland with the help of a government subsidy
Exeter, Humberside, Liverpool,
London Stansted,Norwich, and Prestwick, recorded a loss before depreciation and interest
BAA is group privatization => could ultimately lead to a demand for BAA to divest in one or more of its airports