New scientific research finds that private equity (PE) firms are able to improve airports by increasing the number of routes served, the number of airlines operating, and the quality of food and shopping options at airports:
…Our central finding is that PE acquisitions bring marked improvements in airport performance along a rich array of dimensions such as passengers per flight, total passengers, number of routes, number of airlines, cancellations, and awards. Net income increases after PE acquisitions, which does not reflect lower costs or layoffs. In contrast, in the few cases where non-PE acquisitions bring some improvement, it appears to reflect targeting rather than operational changes…All Clear for Takeoff: Evidence from Airports on the Effects of Infrastructure Privatization
You can read the research online here.
Does anyone know an airport which could do with more routes, more airlines, more passengers, more food options and more shopping outlets while reducing flight cancellations?