Airport governance reform: a strategic management perspective

Abstract

Reform of airport governance structures through corporatization, privatization and other approaches to commercialization is intended to attain a number benefits for air transport system stakeholders. While reformers often want managers to bring a commercial and strategic orientation to the operation of an airport they often create regulatory and governance structures that inhibit such an approach. This paper shows how different modes of governance tend to create trade-offs between stakeholder outcomes. It is suggested that different governance modes embody constraints and incentives that determines the type and quantity of managerial and financial resources that private sector agents will bring to the operation of airports. Additionally, the effectiveness of particular governance modes depends upon national institutional context.