Streamlining Government-Run Airports: Strategies For Takeoff

Airports are a vital part of the travel industry, with nearly three million people travelling by air every day in the United States alone. The management of these airports is a complex process, with some operated by local or state governments, and others by independent airport authorities. These authorities are responsible for the behind-the-scenes operations, and are funded by a variety of sources, including taxes, bonds, rental fees, and other government-levied taxes. This article will explore the challenges and potential solutions for improving the efficiency of government-operated airports.

Funding and investment

Independent airport authorities are considered special district governments, separate from general-purpose local governments like cities and counties. They vary in size from small, rural airports to large international connectors. These airport authorities are typically governed by a board of directors or commissioners who are legally authorised to carry out the airport's business without direction or control from local government officials.

Funding for these airport authorities can come from a variety of sources. They can issue bonds, charge rental fees, and determine the amount of tax to be levied by the sponsoring government in support of airport operations. Additionally, public airport authorities can be funded via taxes or bonds, which can result in total revenue or expenditures that are higher than what is generated by airport operations alone.

The 2022 Census of Governments (CoG) identified 435 independent special districts operating as airport authorities, airport commissions, or port authorities across the United States. These independent airport authorities are responsible for the behind-the-scenes operations at public airports. In addition to these independent authorities, local and state governments may also operate airport authorities.

To ensure adequate funding and investment in government-operated airports, it is crucial to explore a diverse range of funding sources and establish effective governance structures. By doing so, airports can maintain their infrastructure, improve operational efficiency, and provide a safe and seamless travel experience for passengers.

Quality and efficiency

To improve the quality and efficiency of government-operated airports, there are several strategies that can be implemented.

Firstly, automation can play a crucial role in streamlining passenger processing, reducing the time spent at checkpoints, and enhancing the overall passenger experience. This not only increases operational efficiency but also boosts passenger satisfaction by providing a smoother journey through the airport. Automated systems can efficiently collect and analyse data, providing valuable insights into passenger behaviour, traffic patterns, and operational performance. This enables airports to make informed decisions to enhance services and infrastructure.

Additionally, advanced technologies and data analytics can be leveraged to improve communication, resource management, and overall operational performance. For example, an advanced air traffic management system can reduce aircraft taxi times and increase runway efficiency, as demonstrated by the case study at Incheon International Airport in South Korea.

Furthermore, software solutions such as Better Virtual Queuing can be implemented to manage passenger demand and improve operational efficiency. This can lead to benefits such as improved passenger flow, increased passenger satisfaction, and reduced wait times.

By addressing these inefficiencies, government-operated airports can create a seamless travel experience, benefiting all stakeholders involved. This includes higher passenger satisfaction, reduced costs for airlines, and enhanced revenue opportunities for airport operators.

To summarise, by utilising automation, advanced technologies, and data analytics, government-operated airports can significantly improve their quality and efficiency. This enables them to better manage passenger demand, enhance operational performance, and ultimately, provide a more positive experience for travellers.

Privatisation

Private equity (PE) is also playing an increasing role in airport privatisation, with dedicated infrastructure funds purchasing airports. In a global study of 459 airports in 2007, it was found that 24% had full or partial private ownership. A similar situation existed in Europe in 2008, where 13% of airports were owned by public-private shareholders and 9% were fully privatised. These privately owned airports handled proportionally more European passenger traffic (48%) as private operators are predominantly found at larger airports.

The benefits of airport privatisation can include increased efficiency and service quality. However, it is important to consider the extent of government involvement, the selection of operators/investors, and the choice between network/group versus individual operations.

Regulatory and economic oversight

Airport authorities are typically governed by a board of directors or commissioners legally authorised to carry out an airport's business without direction or control from county commissioners or other local government officials. Independent airport authorities are considered special district governments that are separate entities from general-purpose local governments like cities and counties.

Airport authorities vary in size of operations from those that manage very small, often rural, airports to international connectors such as the San Bernardino International Airport Authority in California.

Airport authorities can issue bonds, charge rental fees and determine the amount of tax to be levied by the sponsoring government in support of airport operations. Public airport authorities can be funded via taxes or bonds. This means that total revenue or expenditures for airport authorities may be higher than what is generated by the airport operations alone.

In addition, local governments such as counties and municipalities, and state governments, may also operate airport authorities. They are all responsible for the behind-the-scenes operations at public airports.

Public safety

Improving public safety at government-operated airports can be achieved through a number of means. Firstly, airports should focus on improving security. Biometrics-based processing, for example, can be used to confirm a traveller's identity by comparing facial scans to passport images already on file. This technology is used by US Customs and Border Protection and supports homeland security, defence, and justice missions. Airports should also ensure that passengers feel safe and that their personal information and belongings are secure.

Another way to improve public safety is to streamline airport operations. Efficient communication channels and operations allow airport managers to monitor daily workflow effectively and alert employees or passengers of any changes. This makes employees' jobs easier and allows the business to achieve more in less time, increasing the chances of travellers having positive experiences and returning. Tracking airport traffic flow also allows managers to recognise and use consumer and tech trends to create better resource management strategies and respond proactively to future delays.

Finally, Congress can help airports meet their infrastructure needs by adjusting the outdated federal cap on the locally set Passenger Facility Charge (PFC) user fee. The PFC is a local user fee that is required by law to be used to fund FAA-approved airport improvement projects. Modernising the cap is key to providing airports with the ability to set their own levels based on locally determined needs to ensure the continued safety, security, and improvement of their facilities.

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