Thursday, February 28, 2013

Puerto Rican San Juan Airport Going Private

Bob Sechler, of the Wall Street Journal, has published an article unveiling Puerto Rico's plan to privatize its airport. The proposed plan is set to privatize San Juan's Luis Muñoz Marín International Airport, and is expected to generate 2.6 billion dollars.

The Federal Aviation Administration (FAA) initially announced an airport privatization program sixteen years ago, but the program has gained little momentum since. Stewart International Airport in Newburgh, N.Y was the only airport to go private under this program. Chicago's Midway Airport considered privatizing in 2009, but was unable to receive proper funding largely due to the financial crisis. Recently, Chicago has decided to reconsider the idea of privatization. One should expect other U.S. airports to keep a close eye on the outcome of Puerto Rico's privatization. Only time will tell if this will spark interest from other American airports to explore privatization.

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