Task 3 by AL RZA BIN MOHAMED AL JOHAN https://padlet.com/2005106f/sfsvv658v8zgbpuu Made with charm en-us 2021-11-03 03:33:09 UTC 2021-11-03 04:10:13 UTC hello@padlet.com What are the economic impacts of an airport on a city/country? 2005106f https://padlet.com/2005106f/sfsvv658v8zgbpuu/wish/1863519043 1) Employment
An airport is a major source of employment
Singapore Changi Airport employ over 320,000 people (2014, IATA) in various jobs (including airport operator, airlines, ground handling agencies, concessionaires, government departments etc)

2) Purchase of goods and services
Airport employees usually reside in the communities near airport and spend their wages to purchase goods and services        
Similarly, airport businesses purchase goods and services from the communities nearby

3) Paying taxes
Both employees and airport businesses pay local taxes, which contribute to the wealth of the local economy
]]> 2021-11-03 03:34:13 UTC https://padlet.com/2005106f/sfsvv658v8zgbpuu/wish/1863519043 What are the pros and cons of the different operation model of airports? 2005106f https://padlet.com/2005106f/sfsvv658v8zgbpuu/wish/1863526205
1) Govt owned and controlled
Direct government control and operated, as part of a Public Service Department, with or without commercial orientation
Pros: More control of the standard of airport
Cons: Lesser commercialization
New York JFK International Airport

2) Govt owned and decentralized control
Government delegates control and operations to independent airport operators (e.g. Changi Airport Group)
Pros: More profits
Cons: Lesser govt control

3) Mixed public/private ownership and control
Partial private ownership through trade sales or strategic partnership
Private operators are actively involved in the management through a management contract
Pros: Efficiency advantages from using private sector skills and from transferring risk to the private sector. Potentially increased transparency.
Cons: 
  • Not all projects are possible (for various reasons: political, legal, commercial viability, etc.).
  • The private sector may not be interested in a project due to perceived high risks, or it may lack the capacity to implement the project.


4) Privately owned and operated
Exclusive private ownership is rare due to the need for government to maintain ultimate control of airports.
Only 2-3% of airports are fully private owned (e.g. UK and Australia airports).

London Oxford Airport (OXF/ EGTK)

Pros: Allows airports to diversify services without the fear of government control and interference.
Cons: The government has no control over the airport operation







gives the shareholders the incentives to study the processes and introduce automation.

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