OVERVIEW OF AVIATION PRIVATIZATION IN EUROPE, AFRICAN AND ASIAN COUNTRY
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
NUR IZZAH IWANI BT IBRAHIM @ ABD. RAHMAN
NURUL HARYANIE BT MISRAN
WANDEE BT JAMIL
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
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.
Privatization, airports, Build-Operate-Transfer (BOT), price-cap regulation, International Finance Corporation (IFC), airlines, International Civil Aviation Organization (ICAO)
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,...