Overview of Aviation Privatization in Europe, African and Asian Country

Only available on StudyMode
  • Download(s) : 55
  • Published : May 14, 2013
Open Document
Text Preview
PUBLIC SECTOR ACCOUNTING
(PSA 521)

OVERVIEW OF AVIATION PRIVATIZATION IN EUROPE, AFRICAN AND ASIAN COUNTRY

PREPARED BY:
NUR IZZAH IWANI BT IBRAHIM@ABD RAHMAN 2010554633 NURUL HARYANIE BT MISRAN 2010572197
WANDEE BT JAMIL2010558697

GROUP : AC220 8B

PREPARED FOR :
ASSOCIATE PROFESSOR DR. ASMAH ABDUL AZIZ
PERSONAL BIOGRAPHY

NUR IZZAH IWANI BT IBRAHIM @ ABD. RAHMAN
2010554663

NURUL HARYANIE BT MISRAN
2010572197

WANDEE BT JAMIL
2010558697

Contents

ABSTRACT3
KEYWORDS3
INTRODUCTION4
OVERVIEW OF AVIATION PRIVATIZATION IN EUROPE, AFRICAN AND ASIAN COUNTRIES5
Argentina – Its pitfall and the problems behind it5
Turkey – A Privatization through BOT7
Kenya Airways – A Successful Story9
Malaysian Airlines Considering Privatization10
Germany-Fully privatized and partially privatized12
Privatization in United Kingdom14
IMPLICATION OF PRIVATIZATION16
RECOMMENDATIONS17
REFERENCES18

ABSTRACT
This paper focuses on the privatization of airports in six different countries which are Argentina, Turkey, Germany, United Kingdom, Malaysia and Kenya. The analysis aims to highlight the objectives, implementation and the government rules towards privatization of airports. This paper also aims to identify to what degree privatization contributes to or enhances the performance of the airports. The study measures the change in any given indicator of performance whether the privatization on the airports are successful or not. For each country, privatization occurred by fully privatized or partially privatized with residual public ownership. Moreover, the study also stress on the implication of privatization towards the countries. One of the implication is it will reduce burden of the government to bear high expenses. Privatization programme also invented so that it can contribute towards growth and development of economy. In addition, this paper also focuses on the recommendation in order to deal with the privatization.

KEYWORDS
Privatization, airports, Build-Operate-Transfer (BOT), price-cap regulation, International Finance Corporation (IFC), airlines, International Civil Aviation Organization (ICAO)

INTRODUCTION
There have been many term in recent times to express the process of converting the scope of the public sector to the scope of the private sector. However it was common to use the term of privatization. This term has appeared numerous definitions of privatization, some say that it’s as a transfer of ownership of the project from the public to the private sector. In direction of this privatization, Privatization Masterplan was established in 1991 in order to enable that both public and private sector to be better informed about policies under this programmed (Economic Planning Unit Prime Minister's Department, 1991).

Airport privatization first began in 1987 when former British Prime Minister, Margaret Thatcher, decided to privatize many of the country’s public services to raise public funds (Myers, 2006). For the first time ever it had been spread around the world. Even though at that time only a few that have been successfully privatized, we can expect this trend gradually become increase over time. From a business perspective, airports make a smart investments, since they generally have good credit ratings, earn substantial revenues, and have almost a full monopoly on the market (Myers, 2006). Airport privatization primarily had its own purposes and objectives but somehow not all were successful. In this paper we will look on airport privatization in six different country and it successfulness in achieving the goal.

OVERVIEW OF AVIATION PRIVATIZATION IN EUROPE, AFRICAN AND ASIAN COUNTRIES Argentina – Its pitfall and the problems behind it
There are more than 20 international airport can be found in Argentina and about 200 smaller regional or Airfield (ICAO, 2013b). Until 1997,...
tracking img