Considering and Evaluating Airport Privatization (2012) / Chapter Skim
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Pages 18-20
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18 3.1 Specific Strategies Contracting of services or outsourcing refers to the delegation of operations from the public sector to a private entity that specializes in the operation, maintenance, or management of that activity.
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19 3.2.1 Maintenance Contracts Subcontracting with private companies for all types of services is routine for U.S. airports, including maintenance services (e.g., terminal cleaning, window cleaning)
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20 • Accesses private sector expertise for specialized functions • Applies private sector techniques to accelerate project delivery and reduce construction costs for capital improvements • If applicable, uses private agents for commercial development 3.4.2 Advantages The main advantages provided by service contracts include: • Provides potential to cut costs and optimize efficiency • Retains airport oversight of contracts to ensure compliance with airport goals • Reduces airport costs for employee salaries and benefits as well as post retirement expenses and liability (pension, medical, etc.) • Involves low implementation risk and complexity • Allows airport management to focus on core and strategic issues • Maintains airport owner control over land uses and facilities Airlines view contracting of services as a viable option towards a broader goal, such as lower costs or more efficiency at an airport.
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