An introduction to financing airport infrastructure in the USA and elsewhere

Abstract

The managing and financing of airport infrastructure assets requires the linking of costs and controls to provide financeable projects. In the USA and many other countries, direct government payment is no longer considered the major source of capital for airport development. Airport infrastructure projects often require environmental and other regulatory processes and are sometimes controversial. These add to the time and costs required for the project. Airports in the USA and elsewhere are required to develop financial plans to attract private financial capital. Airports compete for private financing against other investment opportunities. Airport projects can be debt or equity financed. An airport must generally offer an attractive infrastructure project with low risks and reasonable returns in order to be successful in finding investors that are willing to fund the infrastructure development.