The New York Times reports that the nation’s only privately financed commercial airport is set to open in Branson, Missouri.
Unlike government transportation projects such as the Big Dig, this private project has gone well so far: “ ‘I think it’s some kind of record,’ Jeff Bourk, executive director of the airport, said of the speed of the construction. ‘On other projects I’ve been involved in, there’s a lot more red tape.’ ”
On the broader issue of America’s airports, the Times notes:
Every one of the 552 airports providing commercial air service in the United States receives some kind of federal money, according to the Federal Aviation Administration, and these airports are owned by public entities, municipalities, transportation districts or airport authorities.
In airports, America embraces socialism, while free enterprise has taken hold abroad. Many major cities around the world have privatized their airports in recent decades, as I discuss here.
The growth in private airports faces a number of hurdles in America. One problem is that government airports receive federal, state, and local subsidies, which makes it hard for private companies to compete. Another problem is the tax‐deductibility of state/local (“muni”) bonds, which gives government facilities a financing advantage over private projects.
Thus, two reforms are obvious: end all federal subsidies for state/local infrastructure and repeal the tax deductibility of muni bonds. (Note that the Branson airport found an interesting way around the second problem).
Over time, these two steps would likely create a giant leap forward for privatized infrastructure in America.
Hat tip: Harrison Moar.