The valuation of an airport as a commercial enterprise

Purpose - The purpose of this paper is to question whether traditional cost approaches apply to the valuation of an airport now that they are no longer public utilities but very much commercial enterprises. Design/methodology/approach - The research discusses the business model, the ownership and the importance of non-aviation business for an airport. It examines the principles of company valuation and International Accounting Standards in determining an airport's value. Findings - The paper argues that an airport can be viewed as a specialist property company. A key issue is the role of separability of these assets. The paper concludes that previous research has taken a too restrictive view of this concept. An airport's value is therefore based on the valuation of its component assets according to common property valuation methods. Practical implications - The paper challenges the traditional view of airport valuation. Originality/value - The paper rethinks the way airports should be valued.