THE PERFORMANCE OF BAA BEFORE AND AFTER PRIVATIZATION

This paper discusses the performance of the former British Airports Authority (BAA) before and after privatization, and more specifically with its technical efficiency. BAA was privatized under the Airports Act of 1986, in July 1987. The paper considers to what extent technical efficiency changed following privatization using data envelopment analysis. The study finds that privatization had no noticeable impact on technical efficiency, and that technical efficiency within BAA is a composite of varying performance across the different airports operated by the company over time.