Topics: Airport, Privatization, Public sector Pages: 38 (11153 words) Published: August 14, 2014

I hereby declare that this dissertation is my original work and has not been submitted in any other university or institution of learning for academic purposes. The ideas contained in this dissertation are my own unless where acknowledged, cited and appropriately referenced.


Airports are increasingly being privatized as governments across the globe shift from regulated market systems to open market systems. Researchers have associated privatization with a range of benefits including increased efficiency, enhanced performance and better management. Researchers have also associated privatization with increased profitability, increased competition in a sector. Available literature indicates that privatization of airports benefits passengers and transporters due to lowered charges. The study aimed to establish the impact of privatization on airport profitability, efficiency, competition in the airline industry and aeronautical charges. The study adopted a mixed method design. An ex-facto research approach was utilized under the quantitative research design while descriptive and exploratory approaches were adopted under the qualitative phase. The study adopted both primary and secondary data. Primary data was collected from a convenience sample of 20 managers from Riyadh International Airport. The study established that airport privatization positively impacts profitability, efficiency, competition and aeronautical charges. Privatized airports are more profitable and efficient than public airports. Privatization enhances competition within the airline industry and lowers the aeronautical charges to customers. The relationship between the variables is however mediated by institutional or external environment factors such as airport size, size of aircraft and competition among others. Governments are encouraged to privatize airports. Nevertheless, strategic management is required for privatized airports to achieve the benefits of enhanced profitability and efficiency.

Table of Contents
1.0 Chapter One10
1.1 Introduction10
1.2 Background of the Study13
1.3 Problem Statement16
1.4 Purpose of the Study17
1.5 Research Objectives18
1.6 Research Questions18
1.7 Research Methodology18
1.8 Significance of the Study19
2.0 Literature Review21
2.1 Overview of Airport Privatization around the Globe21
2.2 Forms of Airport Privatization22
2.3 Factors for Airport Privatization24
2.4 Disadvantages of Airport Privatization25
2.5 Factors Influencing Impacts of Airport Privatization26
2.6 Relationship between Privatization and Profitability27
2.7 Empirical Evidence on Relationship between Airport Privatization and Efficiency28 2.8 Relationship between Privatization and Competition in the Airline Industry30 2.9 Influence of Privatization on Aeronautical Charges31

2.10 Chapter Summary32
3.0 Research Methodology34
3.1 Study Design34
3.2 Research Strategy34
3.3 Population35
3.4 Sample and Sampling Technique35
3.5 Data Collection and Instrumentation35
3.6 Data Analysis36
3.7 Ethical Considerations36
3.8 Limitations and De-limitations37
4.0 Findings & Data Presentation38
4.1 Secondary Data Presentation38
4.1.2 Data on Privatization and Profitability38
4.1.3 Data on Privatization and Efficiency44
4.1.4 Data on Privatization and Competition in the Airline Industry46 4.1.5 Data on Privatization on Aeronautical Charges47
4.2 Analysis of Primary Data49
4.2.1 Factors for Increased Privatization50
4.2.2 Management Perception on Impact of Privatization on Profitability52 4.2.3 Perceived Impact of Privatization on Airport Efficiency53 4.2.4 Perceived Impact...
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