Case: Alcor Ventures

Download 7.65 Mb.
Size7.65 Mb.
1   2   3   4   5   6   7   8   9   ...   21
Market Potential:
The concept of privatization in the airport industry is something that is currently a very hot topic in the United States. In 1996, Congress authorized a two-year privatization pilot program, which allows the Department of Transportation to grant exemptions from certain federal statutory and regulatory requirements for up to five airport privatization projects. To date, Stuart Airport in New York and Brownfield Airport in San Diego have applied to join the pilot program. The U.S. is finding out what countries around the world have known: a government’s sale or long-term lease of an airport, an agreement to a privately owned firm can translate into cost savings as well as a lucrative revenue stream.
While in the United States airport privatization is more of a political scare tactic, in some second-world countries privatization is the only means of realizing necessary upgrades since many of these governments do not have the funding to initiate these upgrades on their own behalf. This need to upgrade the transportation infrastructure, especially for developing countries in the former communist bloc who long to sit at the table with the rest of the European Community, provides a unique opportunity for private investment. We believe that governments in countries like Romania are ripe for an airport privatization effort, which would include a contract to assume operational control of the airport. We believe that at least three airports in Romania, if upgraded to 20th-century standards, could yield a significant return on investment since the potential for expanded volume in these airports is so vast. Romania, as a function of its central location between Europe and the former Soviet republic and gateway to the Near and Far East, provides an excellent location as a hub for international travel for both business and tourism. This Design/Build/Operate/Maintain (DBOM) locks up revenue in design and construction management fees as well as the predictable revenue streams that make up airline paid rates and charges and the myriad services (such as refueling, baggage handling and retail tenants) within any airport.

Download 7.65 Mb.

Share with your friends:
1   2   3   4   5   6   7   8   9   ...   21

The database is protected by copyright © 2022
send message

    Main page