Effect of Credit Ratings on Airport Financing and Management

• Main Authors: KATO, Kazusei, TEZUKA, Koichiro, LOW, Joyce M. W.
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2010
• 主題: Airport; Ownership; Revenue Bond; Credit Rating; Incentive Contract; Moral hazard; Hidden Action; Management Efficiency; Operations and Supply Chain Management; Transportation
• 在線閱讀: https://ink.library.smu.edu.sg/lkcsb_research/3265; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4264/viewcontent/02185.pdf

This paper analyzes the effect of airport ownership structure on management efficiency as reflected through their credit ratings. A game-theoretical model is proposed to examine the role of credit ratings in mitigating the moral hazard problem of public-owned airports. The analytical results derived from the model are then used to supplement a supporting case study. Notwithstanding the fact that the less competitive environment of a public-owned entity and its credit ratings might bring some welfare loss , this research concludes that public-owned airports have some advantages.