Concerned over an aviation infrastructure crisis, global airlines body IATA today asked governments to be cautious on airport privatisation, saying it was wrong to assume that the private sector had all the answers.
The 74th annual general meeting of the International Air Transport Association (IATA) unanimously passed a resolution calling on governments to prioritise the long-term economic and social benefits delivered by effective airports ahead of the short-term financial gains provided by a poorly thought-out privatisation.
"We are in an infrastructure crisis. Cash-strapped governments are looking to the private sector to help develop much needed airport capacity.
"But it is wrong to assume that the private sector has all the answers, IATA Director General and CEO Alexandre de Juniac said, as the chiefs and CEOs of close to 300 airlines adopted the resolution unanimously by a show of hands.
De Juniac asserted that selling airport assets for a short-term cash injection to the treasury is a mistake."