The resulting increased revenue stream, in addition to providing a return to the company's shareholders, will make possible a variety of airport improvements with less need to resort to costly borrowing. New York's Stewart International, for example, has huge potential for compatible development of business-park facilities on its extensive land holdings. National Express is more likely to turn this potential into reality than the State of New York, which has tried without much success to do so. Being a Good Neighbor. As privately owned airports become more successful economically, they will have the resources to address future externality problems as they may arise.
Governments worldwide have a poor track record when it comes to large development projects.
Yet another advantage of private development of new terminals and airports is the ability of a private owner or lessee to carry out such projects in a more streamlined manner. Most public-sector entities are constrained by various public procurement laws and regulations, which add to costs and lengthen the development process considerably. These savings were illustrated by the private development of Terminal 3 at Toronto, and are being seen again in the current replacement of Terminal 4 at Kennedy. Sale or Lease Proceeds. More recently, the Heritage Foundation used similar methodology and more recent market-value data from airport sales around the world.