Tony Tyler, IATA’s director general and CEO, has warned that better governance is needed of private investment in airports.
In a speech to leaders of Asia Pacific airlines in Tokyo yesterday (November 19), Tyler warned: “Private capital is not a panacea.
To be successful it must have a strong governance structure embedded in regulation that keeps the consumer in mind when setting parameters on price and quality.”
He cited India as an example of where airport capacity has been expanded with private finance, but the terms of the contracts have left carriers in the region “struggling to make ends meet”, while investors have been disappointed with returns.
“[Contracts] must set reasonable expectations on returns –in line with airports being public utilities, not hedge fund investments,” he said.