Infrastructure investment needed in airports

There is talk about Trump’s infrastructure investment plan but the details are sketchy.  When we talk about infrastructure we need to see investment in our airports.

The estimates show 86% of the world airports are owned and operated exclusively by a government. While having a small 14% share of global airports under private ownership, that share is responsible for 44% of worldwide expenditure in 2014. (BCA, Feb. 2017)

In Europe, 53% of airports were publicly-owned as of 2016, a much lower percentage than in America.  Europe has the highest percentage of privately-owned or operated airports. It is time America privatized its airports ! 

Models of privatized airport (from BCA )

• Freehold -full private-sector ownership and management.

• Listed companies -full or partially listed on the stock exchanges.

• Concessions or leases -good for a limited time, include BOT [built-operate-transfer] schemes where the private sector finances and builds projects and has contracts with public sector governments to purchase those assets at a later time.

• Management contracts – private sector manages but doesn’t own those assets.

• Government-owned companies –participation of government-owned companies in other airports as private investments or for a fee.

History

Congress passed the Airport Privatization Pilot Program in 1996. However, little has been done under that pilot project. The path ahead to privatization is long and arduous. In a future post, I will explain what a PPP is and how they’ve been successfully used for large infrastructure projects.

#GoSALT #SALT @truthgundlach #BillAckman @jeweljk #DanielLoeb @ericschmidt @MikeTyson #SamZell @MariaBartiromo #JamesChanos @ldelevigne https://t.co/hipZuDihf5

— Max Cantor (@FinancierGuru) May 16, 2017

“The only airport currently privatized under the program is Luis Munoz Marin International in San Juan, Puerto Rico. The winning bid was submitted by the Aerostar consortium, and the deal was finalized in 2013. The company paid $615 million up-front and agreed to invest $1.2 billion in the airport over the 40-year term of the lease. Aerostar will also share airport revenue with the government. So far, the company has made renovations to the airport’s two terminals, including new retail stores and automatic baggage scanners.” –Cato Institute, Nov. 21, 2016 study

Top 10 Private Jet Airport in the U.S.A. (via Blog Flyprivately)

1. TETERBORO AIRPORT, NEW YORK

The primary private jet airport for Manhattan and the entire New York City area, Teterboro Airport is located just on the other side of the Hudson River to the city centre. It’s one of the busiest private jet airports in the world and has five FBOs, and 23 hangars.

       2. VAN NUYS AIRPORT, LOS ANGELES

Van Nuys Airport is just 30 minutes by car from downtown Los Angeles, making it one of the busiest private jet airports in the world. The premiere choice for those looking to get in and out of LA all while maintaining convenience.

        3. MCCARRAN INTERNATIONAL AIRPORT, LAS VEGAS

Often on our Most Stunning Airport Approaches Top 10 list, Las Vegas McCarran Airport gives you a unique view of the famous strip from above. While the airport does also cater to commercial flights, it does have a terminal exclusive for private aircraft.

         4. WESTCHESTER COUNTY AIRPORT, NEW YORK

Also known as White Plain Airport, Westchester County Airport is only three miles from White Plains – but also serves the New York City area, as it is about 33 miles north of Midtown Manhattan

         5.WILLIAM P HOBBY AIRPORT, HOUSTON

Located just seven miles from downtown Houston, William P Hobby Airport serves both private jet traffic, as well as commercial flights.

Read them all at PrivateFly