Dissertation
INVESTIGATING THE IMPACT OF AIRPORT PRIVATIZATION ON PROFITABILITY, EFFICIENCY, COMPETITION AND AERONAUTICAL CHARGES
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Declaration
I hereby declare that this dissertation is my original work and has not been submitted in any other university or institution of learning for academic purposes. The ideas contained in this dissertation are my own unless where acknowledged, cited and appropriately referenced.
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Date......................................... Abstract
Airports are increasingly being privatized as governments across the globe shift from regulated market systems to open market systems. Researchers have associated privatization with a range of benefits including increased efficiency, enhanced performance and better management. Researchers have also associated privatization with increased profitability, increased competition in a sector. Available literature indicates that privatization of airports benefits passengers and transporters due to lowered charges. The study aimed to establish the impact of privatization on airport profitability, efficiency, competition in the airline industry and aeronautical charges. The study adopted a mixed method design. An ex-facto research approach was utilized under the quantitative research design while descriptive and exploratory approaches were adopted under the qualitative phase. The study adopted both primary and secondary data. Primary data was collected from a convenience sample of 20 managers from Riyadh International Airport. The study established that airport privatization positively impacts profitability, efficiency, competition and aeronautical charges. Privatized airports are more profitable and efficient than public airports. Privatization enhances competition within the airline industry and lowers the aeronautical charges to customers. The relationship between the
Name:
Course:
Lecturer:
Date:
Declaration
I hereby declare that this dissertation is my original work and has not been submitted in any other university or institution of learning for academic purposes. The ideas contained in this dissertation are my own unless where acknowledged, cited and appropriately referenced.
Name:.....................................
Signature.................................
Date......................................... Abstract
Airports are increasingly being privatized as governments across the globe shift from regulated market systems to open market systems. Researchers have associated privatization with a range of benefits including increased efficiency, enhanced performance and better management. Researchers have also associated privatization with increased profitability, increased competition in a sector. Available literature indicates that privatization of airports benefits passengers and transporters due to lowered charges. The study aimed to establish the impact of privatization on airport profitability, efficiency, competition in the airline industry and aeronautical charges. The study adopted a mixed method design. An ex-facto research approach was utilized under the quantitative research design while descriptive and exploratory approaches were adopted under the qualitative phase. The study adopted both primary and secondary data. Primary data was collected from a convenience sample of 20 managers from Riyadh International Airport. The study established that airport privatization positively impacts profitability, efficiency, competition and aeronautical charges. Privatized airports are more profitable and efficient than public airports. Privatization enhances competition within the airline industry and lowers the aeronautical charges to customers. The relationship between the