THE FINANCING OF AIRPORTS

Some of the major problems arising in the field of airport financing are discussed. The extent of capital investment funds needed by an airport depends not only on the amount of traffic, and the expected growth, but also on what facilities the airport plans to finance and what facilities are to be financed by third parties. Other circumstances (on which the airport has little influence) which could determine financing requirements are also listed. Uncertainities which can be introduced by the delays in obtaining planning permission and the starting date of construction work are discussed. The application of commercial principles to airport operation is discussed with reference to the situation in the Federal Republic of Germany. Comments are made on the financing of expenditure by shareholders. The question of whether the airport should be privately run, and the question of adequate security for loans from credit organizations are considered. The reasons why some airports are profitable and others are not are noted, and the reasons why some airports have deteriorated in recent years are listed.

• Corporate Authors:

  Bauverlag GmbH

  Wittelbacherstrasse 10
  6200 Wiesbaden,   Germany 
• Authors:
  • von Laun, K
• Publication Date: 1971-12

Media Info

• Pagination: p. 71-84
• Serial:
  • AIRPORT FORUM

Subject/Index Terms

• TRT Terms: Airport operations; Airport planning; Capital investments; Credit; Economic factors; Expenditures; Finance; Nationalization; Ownership
• Subject Areas: Aviation; Economics; Finance; Terminals and Facilities;

Filing Info

• Accession Number: 00155496
• Record Type: Publication
• Source Agency: Massachusetts Institute of Technology
• Files: TRIS
• Created Date: Sep 28 1977 12:00AM