Privatisation not answer to efficiency

Privatisation is not the answer to making airports more efficient, and there is no evidence that private airports are more efficient than government-funded airports, according to the International Airport Transport Association (IATA).

Brian Pearce, chief economist at IATA, warned in a press conference yesterday that governments should be careful if their main aim with a move for airport privatisation is to raise cash.

“Governments are quite right to seek efficiency gains. What we’ve been very disappointed with is … we really couldn’t find the evidence that private airports are more efficient than government airports,” Pearce said, adding that five of the top six airports around the world are governmentowned, quoting studies.

“If governments are trying to get more efficient airports, privatisation is not the answer.”

He added that governments should look at ways to incentivise management at airports in order to raise efficiency.