On privatization, events, and Congressional meddling ...
Officials in Houston, subject of this issue’s cover story, are embarking on a major push into the international airport management and development arena. In time, they say, the FAA’s airport privatization program may begin to take root in the U.S., particularly in light of the deal signed in 2008 by Midway Airport in Chicago.
Comments Houston Airport System director Richard Vacar, “The reason this hasn’t happened in the U.S., Midway notwithstanding, is that governments cannot only get these grants for airports but they can borrow money with tax-free bonds. And as long as there’s this sort of endless capital via government agencies at low interest rates, it’s very difficult for a private operator to have an advantage.
“Every consortion put together [for the Midway bid] asked us about it. We didn’t think it had the kind of return that was going to be necessary.”
Robert White, who is the director of airport services for the HAS Development Corporation, adds, “Branson, Missouri is a good example of a privatized airport, but it is still looking at commercial flights. I think the up and coming thing for privatized airports in the United States are those that have more cargo logistics and specialty activity; they’re more of a regional economic development airport.
“Alliance Airport [in Ft. Worth] is a good business model.”
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A special report in this issue focuses on the event held in October to inaugurate A-380 service by Qantas into LAX. Agnes Huff, who was charged with managing and promoting the event, says that the current economic climate — and the environment itself — are affecting how planners approach such events.
“Because this airplane is a green airplane, we wanted to stay with that theme. In catering, we didn’t use disposables; we used actual dishes. We didn’t send out hard copy invitations; we used e-vites and did it through our computer system.
“Another example is the water cannon. We opted on behalf of the clients to decline doing the water cannon. It was not the right impression to create when the State of California is having a water shortage; and environmentally, Qantas and Australia do not approve of water cannons. Would that have added anything more to the visibility opportunity? Not really. The opportunity was that aircraft landing.
“I think the trend today in event management is simpler, less austentatious; less is more. That’s how companies want to be portrayed — doing the right thing for business and for the environment, especially for airports.”
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Finally, as we go to press, it looks as though Congress is failing in its attempt to tie the use of corporate jets to potential bailout money for automakers. Let’s hope the Democrats’ idea file gets more creative.
Thanks for reading.
