Privatization of public facilities, notably airports, has emerged as a strategic approach for governments aiming to enhance operational efficiency, reduce fiscal burdens, and tap into private sector innovation. This literature review critically examines the key drivers for the successful privatization of airports and other public facilities, focusing on the roles of total facilities management (TFM) and governance strategies. The study explores how direct and indirect governance—through comprehensive policies and procedures—influences the effectiveness and sustainability of privatization efforts. Emphasis is placed on cost efficiencies achieved via TFM and effective asset management, highlighting their impact on operational performance and financial viability.
The review identifies best practices and common challenges associated with the privatisation process by synthesizing findings from academic journals, industry reports, and case studies. The analysis reveals that robust governance frameworks are essential in ensuring accountability, transparency, and alignment with public interests. These frameworks facilitate better oversight and regulation, which are crucial for the long-term success of privatized facilities. Similarly, the implementation of TFM practices contributes significantly to cost reductions and service quality improvements by streamlining operations and optimizing resource utilization.
The interplay between governance strategies and TFM is underscored as a critical factor in achieving desired privatization outcomes. Effective asset management, supported by technological advancements such as automation and data analytics, further enhances efficiency and service delivery. The review concludes that a synergistic approach combining strong governance with efficient facilities management is vital for maximizing the benefits of privatizing public facilities like airports.
Recommendations for policymakers and practitioners include developing clear regulatory frameworks, fostering stakeholder engagement, and investing in capacity building for asset management. The study also highlights the need for continuous monitoring and evaluation to adapt to changing environments and to ensure that privatization objectives are met. Future research is suggested to explore privatisation’s long-term socio-economic impacts and assess the effectiveness of emerging technologies in facilities management.
Keywords: Airport Privatization, Governance Strategies, Total Facilities Management (TFM), Cost Efficiency, Asset Management.