Privatization of Airports
For 51 years Bergstrom Air Force Base was home to fighter pilots, bombers, troop carriers and reconnaissance jets. It was the first port of call for President Lyndon B. Johnson on his trips home to LBJ Country aboard Air Force One, it was where Chuck Yeager, the first pilot to break the sound barrier, once brought a disabled jet to rest in an emergency landing. In September 1993, in the path of military cutbacks Bergstrom Air Force Base was closed. But the timing was fortuitous, because the closure came as the city of Austin, Texas was considering where to build a new airport. In 1993, the expected economic loss to Austin from the Bergstrom closure was estimated at $406 million a year and a loss of some 1000 jobs. But with the possibility of utilizing the prior Bergstrom Air Force Base as an airport the Austin economy was expected to have an opportunity to rebound and even improve these results from the base closure by privatizing the airport.The trend worldwide toward airport privatization presents an exciting and dynamic opportunity for the flying public, governments, operators and investors. The overall success of privatization of airports has been seen by the sale of long-term leases for three of the largest airpor
Governments in Southeast Asia, Africa, and the world over also are developing airport privatization plans. They also bring a level of expertise in improving customer service that may not be as well developed in the public sector. The city's construction schedule was constantly changing which made it difficult for the Air Force to plan its cleanup activities. Contractors develop expertise to compete effectively. Environmental Protection Agency and U. The city was going to pay to remove the hill. Governments rarely act quickly enough to develop or use leading edge technology. Some house the Texas National Guard. Since the inception of actually privatizing Bergstrom for the new airport and after years of haggling, the city and the airlines that serve Austin signed off on an agreement assuring that when the airport opened there would be planes flying in and out of it. Smaller airports in Central America and the Caribbean also are to be privatized. Why has this marked trend emerged and why did the city of Austin choose to act in this capacity? Governments in many cases do not have the financial capacity to invest in airport expansion as well as meet other needs of their citizens.
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