[StBernard] New Orleans Airport May Go Private

[Westley Annis]

New Orleans Airport May Go Private

September 28, 2009

The Federal Aviation Administration, which is overseeing a trial program to
privatize up to five U.S. airports, has given Louis Armstrong New Orleans
International Airport permission to become a private airport, USA Today
reported last week.

Having received FAA approval, airport officials may now begin searching for
private investors who are willing to pay to own the airport under the terms
of a long-term lease. Although the private owner-operator would keep profits
from running the airport, the arrangement could benefit New Orleans, too.
While the city would be stripped of its ownership and operational rights, it
could receive a windfall from the deal, which might also make it easier to
fund and execute future airport expansion and improvement projects.

Once it finds a private operator, New Orleans Armstrong airport will submit
its final privatization application to the FAA, at which point it will also
have to seek approval from the city council and from 65 percent of its
airline tenants. According to USA Today, the airport hopes to submit its
final application by fall 2010.

Currently, the only other U.S. airport to receive privatization approval has
been Chicago Midway Airport, which so far has had trouble finding a private
investor.