The City of Mesa has two - both hangovers from World War II. Here are a few snippets of ideas and reasons
“If any U.S. city wanted to do a deal for its airport, there’d be a line of investors down the block tomorrow,” says DJ Gribbin, an infrastructure consultant who was the architect of the Trump administration’s 2018 plan to repair America’s aging roads, bridges, tunnels, and, also, airports. “There are literally hundreds of billions of dollars sloshing around investment markets wanting to invest in U.S. infrastructure today,” Gribbin added.
So why don’t governments jump at the chance?
The rest of the world knows what the U.S. doesn’t: that privatization pays. A lot. “It would, candidly, surprise most people in local governments in the U.S. to find out what their assets are worth,” says Tim Bath, a managing director at PJ Solomon, a financial advisory firm in New York and Houston that works with operators and investors on airport-privatization deals around the world. . .
To begin privatization, municipalities simply alert the FAA and fill out some paperwork. Then the federal government will send them up to $750,000 to defer some initial costs. The municipalities must hire lawyers and accountants, and set up meetings with private operators, financiers, and the airlines—who effectively have veto power over privatization deals under federal law—before the framework of a deal can take shape. That part is not so easy. “These are really complex issues that take a lot of highly detailed negotiating over months if not years,” says Steve Sisneros, who heads real-estate operations for Southwest Airlines.
"There is a lot of money out there for cities who need it right now,” Schmidt said, “and that can both help airlines and make better airports.”
So what are we waiting for?
Cities Should Sell Their Airports
Airport privatization can close gaping budget holes. It’s as close to a no-brainer as cities will find.
America’s airports may be mostly empty now, but they’re full of hidden potential—if local governments sell them
So why don’t governments jump at the chance?
The rest of the world knows what the U.S. doesn’t: that privatization pays. A lot. “It would, candidly, surprise most people in local governments in the U.S. to find out what their assets are worth,” says Tim Bath, a managing director at PJ Solomon, a financial advisory firm in New York and Houston that works with operators and investors on airport-privatization deals around the world. . .
To begin privatization, municipalities simply alert the FAA and fill out some paperwork. Then the federal government will send them up to $750,000 to defer some initial costs. The municipalities must hire lawyers and accountants, and set up meetings with private operators, financiers, and the airlines—who effectively have veto power over privatization deals under federal law—before the framework of a deal can take shape. That part is not so easy. “These are really complex issues that take a lot of highly detailed negotiating over months if not years,” says Steve Sisneros, who heads real-estate operations for Southwest Airlines.
"There is a lot of money out there for cities who need it right now,” Schmidt said, “and that can both help airlines and make better airports.”
So what are we waiting for?
