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Groups all airport activities into three broad divisions –administration, operations and technical services. Shows that airport organizations operate in a highly dynamic policy environment which has economic, political and social dimensions. Suggests that airports and all these elements have a mutual impact on each other, and that airports should be sensitive to, and carefully manage, such impacts to enhance the former′s smooth and efficient functioning. Sees changes in the ownership profile of airports as being important in making airport organizations more efficient. Such changes may be in the form of privatization, contracting out some airport activities to private firms,combined public and private ownership of airports, increased autonomy for government‐owned airports, the creation of holding corporations,commercialization and the creation of competitive dynamics for government‐owned airports. Considers the airport policy‐making body and airport manager to be vital instruments in the drive towards more efficiency. Suggests also that the creation of airport policy‐making bodies that provide quality policies, and the selection of highly qualified airport managers, are important factors in encouraging efficiency.

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