Saturday, February 2, 2013

Holding Off On Chicago's Airport Privatization Deal

Joe Cahill, of, published an article urging Mayor Rahm Emanuel to reconsider privatizing Chicago's Midway Airport. Mr. Cahill preaches patience in making a decision, citing Chicago's recent parking meter privatization deal that quickly turned sour. Essentially, Mr. Cahill feels that the city would be best served by waiting for a better deal.
"Although economic conditions generally have improved, pricing for airport privatizations is still far off the peak. Where investors once paid more than 30 times an airport's earnings before interest, taxes, depreciation and amortization, deals are now likely to yield less than half that multiple."
The entire article is worth a read and can be found here. Below, Mr. Cahill sums up his conclusion regarding the proposed airport privatization.
"Holding off on a deal would produce the greatest benefit for the city, even if it means another major airport goes private first. Rather than selling at the bottom of the market, why not wait for prices to recover and learn from the mistakes of any city that rushes to the front of the privatization line?"

1 comment:

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