February 23, 2007
Privatize Bergstrom?
Ok... one privatization idea that might make sense
Mayor Will Wynn, at least, is convinced that the city should unload Austin-Bergstrom International Airport.The airport's revenue was $9.6 million above its expenses last fiscal year, city Aviation Director Jim Smith said, and the city has averaged $8.9 million in net income annually since 2001. But federal law prohibits the city from using that money outside the airport site, instead requiring that it be plowed back into airport improvements.
Governments nationwide have been entertaining offers for toll roads, state-run lotteries and airports from foreign investors awash in cash. Futrell said the city has received no airport lease proposal, verbally or in writing.
Wynn said he has been lobbying his council peers for several months on the subject, picking up on a move by Chicago Mayor Richard Daley to lease that city's Midway Airport.
"There's no financial reason whatsoever for the city to own the airport, as by law we can make not one penny from its operations or even property rentals," Wynn said Tuesday. "So why not explore a sale or a long-term lease that could net us hundreds of millions of dollars upfront that we could put toward any number of community needs, such as transportation?"
Of course, any 'lease' would have go to paying down the bonds used to finance the creation of ABIA. Honestly, this may be one of the few privatization ideas that makes sense.
Posted by mcblogger at February 23, 2007 09:29 AM
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