Foreign investors line up for Chicago airport
Foreign investors are lining up to bid to operate Chicago’s Midway International Airport, the first major US airport to be privatised under a federal initiative launched more than a decade ago.
By Agencies |
CHICAGO: Foreign investors are lining up to bid to operate Chicago���s Midway International Airport, the first major US airport to be privatised under a federal initiative launched more than a decade ago.
City officials say six consortiums, which include firms from France, Australia, Germany, Canada and Spain, are vying to run Chicago���s secondary airport.
While many European airports were privatised years ago, all commercial airports in the US are currently operated and owned by local or state governments. Midway was the first major hub airport to apply for privatisation approval since the US congress established a pilot program in 1996 to explore the use of private operators at commercial airports.
Yet it remains unclear whether the effort will generate a backlash if a foreign firm is chosen, in light of security concerns raised after a failed effort by a Dubai group to take over major US ports.
���This will surely generate debate since there may be perceptions about foreign ownership of sensitive or critical transportation properties like we saw with the Dubai port deal,��� said Joe Schweiterman, a transportation professor at DePaul University in Chicago.
The city said that once the firms are determined to be qualified, ���the highest bid amount will be the only factor in determining who will operate the airport.���
���We are very enthused with the strong indications of interest we have received from teams wishing to operate Midway in what would be the first lease of a major US airport,��� said Paul Volpe, the city���s chief financial officer. A decision is expected in the next 8-12 months.
The deal must be approved by federal regulators and 65% of the six airlines operating at the airport. The private operator must also meet safety standards and the Transportation Security Administration will continue to oversee screening and security.
City officials say six consortiums, which include firms from France, Australia, Germany, Canada and Spain, are vying to run Chicago���s secondary airport.
While many European airports were privatised years ago, all commercial airports in the US are currently operated and owned by local or state governments. Midway was the first major hub airport to apply for privatisation approval since the US congress established a pilot program in 1996 to explore the use of private operators at commercial airports.
Yet it remains unclear whether the effort will generate a backlash if a foreign firm is chosen, in light of security concerns raised after a failed effort by a Dubai group to take over major US ports.
���This will surely generate debate since there may be perceptions about foreign ownership of sensitive or critical transportation properties like we saw with the Dubai port deal,��� said Joe Schweiterman, a transportation professor at DePaul University in Chicago.
The city said that once the firms are determined to be qualified, ���the highest bid amount will be the only factor in determining who will operate the airport.���
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���We are very enthused with the strong indications of interest we have received from teams wishing to operate Midway in what would be the first lease of a major US airport,��� said Paul Volpe, the city���s chief financial officer. A decision is expected in the next 8-12 months.
The deal must be approved by federal regulators and 65% of the six airlines operating at the airport. The private operator must also meet safety standards and the Transportation Security Administration will continue to oversee screening and security.
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