A “cautious approach” must be taken when considering airport privatisation and governments must consider long-term economic benefits rather than short-term financial gains.

That’s the message from the International Air Transport Association (IATA) 74th Annual General Meeting in Sydney, with the organisation’s director-general and chief executive Alexandre de Juniac stressing it was “wrong” to assume the private sector has “all the answers”.

He said: “We are in an infrastructure crisis. Cash-strapped governments are looking to the private sector to help develop much needed airport capacity. But it is wrong to assume that the private sector has all the answers.

“Airlines have not yet experienced an airport privatisation that has fully lived up to its promised benefits over the long term. Airports are critical infrastructure.

“It is important that governments take a long-term view focusing on solutions that will deliver the best economic and social benefits. Selling airport assets for a short-term cash injection to the treasury is a mistake.”

IATA said its member airlines resolved to urge governments considering airport privatisation to focus on long-term benefits; learn from new financing models and alternative ways of tapping private sector participation; and make ownership decisions based on consumer interests.

"There is no one-size-fits-all solution,” added de Juniac. “A broad range of ownership operating models exist that can meet a government's strategic objectives without a transfer of control or ownership to the private sector.

“Globally, many of the most successful airports are operated as corporatized entities of governments. Governments need to evaluate the pros and cons of different models taking into account interests of all stakeholders, including airlines and customers.

“The most important thing is that airports meet the needs of customers and airport infrastructure users, at a fair price. And to do that, user consultation must be an integral part of the consideration process.”

In addition to cautioning on privatisation, IATA has called on governments to intensify efforts to spread the economic and social benefits of aviation by removing onerous barriers to the free movement of people across borders.

Its 'Open Borders' strategy calls on leaders to review visa requirements and remove unnecessary travel restrictions; include travel facilitation as part of bilateral and regional trade negotiations; link registered-traveler programs; and use API data more effectively and efficiently.