New financing opportunities for airports: Exploring the possibility of a speciality REIT

Ron Messer

Journal of Airport Management, 2011, vol. 5, issue 2, 123-133

Abstract: Canada's airports have undergone a massive decentralisation initiative whereby the federal government has devolved responsibility for what was once considered a public utility to the private sector. While the role of airports in Canada still includes economic development and being responsive to local needs, it is important to note that there will not be any government funding for airport expansion or refurbishment. Paying for infrastructure development is expensive and airport financing traditionally has involved corporate debt instruments. This paper explores the possibility of using equity as a means of financing airports, specifically in the form of a real-estate investment trust (REIT). Using a REIT as a financing vehicle can provide increased funding and lower risk for the expansion and maintenance of airport facilities.

Keywords: REIT; airports; corporate finance; infrastructure development (search for similar items in EconPapers)
JEL-codes: M1 M10 R4 R40 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://hstalks.com/article/1140/download/ (application/pdf)
https://hstalks.com/article/1140/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:jam000:y:2011:v:5:i:2:p:123-133

Access Statistics for this article

More articles in Journal of Airport Management from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().