Abstract
This article summarizes current discussion regarding the privatization of U.S. airports in general and the Federal Aviation Administration airport privatization pilot program in particular. The lack of success of this program is analyzed in terms of general airline opposition to privatization and the inherent advantages to the airlines of the current airport financial system. Those advantages are primarily (a) the historic cost method of calculating landing fees and (b) the subsidization of the capital improvement program. Reference is made to other airport financial systems that may be more successful, such as the management of Indianapolis Airport by the British Airport Authority U.S., Inc.
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