THE PUBLIC BENEFITS OF PRIVATIZING LOGAN AIRPORT

Boston's Logan Airport is an underutilized asset of the Commonwealth of Massachusetts. The airport has an estimated market value of $786 million, if it were to be offered to investors to operate on a for-profit basis. Under private ownership, Logan could be profitable without federal aid and without increasing landing fees, due to savings on operating costs, increased retail sales, and a $3 per-passenger fee. This would generate sufficient revenue to permit investment of $50 million/year in airport improvements, possibly including a long-needed commuter runway to reduce airport delays (now costing users $26 million per year). Logan Airport, Inc. would be a better neighbor, paying $25 million/year in property taxes to Boston and host-community fees of $1 million/year each to Chelsea and Winthrop. In addition, residents of East Boston, Chelsea, and Winthrop could become co-owners of the airport if the company gave $500 in stock to every registered voter. Over the next five years, the airport company would also pay $29 million in federal corporate taxes and $10 million in state corporate taxes.