Terminal 4 Case of Privatization at Jfk Airport

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Terminal 4 Case of Privatization at JFK Airport Introduction Airports play a vital role into the economy of a country. It helps to transport cargo, passengers, businessman etc. Along with the Air transportation, airports are responsible for a large part of a countries economy. Therefore, the government and airport managers are constantly looking for ways to make airports efficient, financially independent and competitive. Except one or two, all other airports are part of the National Airport System of the USA and they are government owned. Due to the problems with the recession in this country and the economical world crisis, the government finds difficult to keep airports efficient and competitive. The government has an urge to look for private sector investments for its airports, due to the lack of subside available for them. An important case of privatization is the Terminal 4 at JFK Airport. The terminal is managed by JFKIAT (JFK International Air Terminal), a joint venture between the following companies: LCOR JFK Airport, LLC, Schiphol USA Inc., and Lehman JFK LLC. And it was the first airport terminal being managed by a nonairline entity. (Boudreau, Reimer, & Beek, 2012, p. 90). Discussion When JFKIAT was awarded with the terminal in 1997, they built 2 concourses in a state-of-art fashion and increased the efficiency and capacity of the airport. Making a prime example of nonairline managed terminal and is the largest of its category in the New York Metro. (Boudreau, Reimer, & Beek, 2012, p. 90). However, another important transaction happened in 2010. Delta Airlines Inc., headquarters in ATL, and also with an international hub at JFK and a domestic hub in LGA, invested $660 millions in an expansion project and bought a non-majority stake of the JFKIAT. Meanwhile, the Schiphol bought the rest of the stocks becoming the owner with the

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