Impact of privatization on airport performance: Analysis of Polish and British airports

Abstract

This paper surveys the changes in ownership patterns and profitability at British and Polish airports. The analysis is intended to compare the financial effectiveness of the main British airports before and after their privatization and to use the British experience as a benchmark when considering the effectiveness and aims of selling Polish airports. The analysis covers year 1986 and 2005 in UK and period 2000-2007 in Poland. The efficiency is measured in terms of the earnings generated by each passenger using EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization). The main aim of the paper is to present different ways of privatisation and to verify the efficiency of the British model. Results of the analysis are intended for establishing some policy considerations and to analyze some possible implications which could arise from a future privatization of the Polish airport system.