Description
Airport budgets are prepared for one fiscal year. The budget planning experts consider basic operating expenses and revenues made for the period. The amount of expenses and revenue generated depends upon the size of the airport in terms of operations and the number of services airport provides. Let us see more about how airport financial management takes place.
Developing and maintaining an airport needs a large amount of funds. The principle sources of this capital include:
- Government grants
- International organization loans that are required to be repaid in the same foreign
- currency
- Commercial loans from national financial institutions, which are usually available at
- highest interest rates
- Equity or bonds from commercial capital market including private investors, and
- investments banks
- Extension of credit from contractors and suppliers
- Foreign governments invest in airport development for under-developed nations
- Retained earnings
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