1.1 BackgroundAirports can be considered an important national resource of most countries in the world. The primary responsibility of an airport is in the transportation of people and goods and in domestic and global affairs. They are the places where the national aviation system connects with other modes of transportation and where state responsibility for managing and regulating air traffic operations intersects with the role of the governments that own and operate most airports. However, most major airports are owned and operated by private sectors. This is due to several reasons including improving efficiency and economic performance, being more competitive as well as maximizing the return for the community from the airport assets where the public enterprise has proven to be less efficient in terms of production and management. London Heathrow The airport is a major airport owned and operated by the privatized company formerly known as British Airport Authority (BAA plc), now Heathrow Airport Holdings. Heathrow Airport Holdings owns and operates four major airports in the United Kingdom, including London Heathrow, Aberdeen, Glasgow and Southampton. However, in this case study, London Heathrow would be the main interest of the author to examine the effect of its privatization and find the possible impacts it could have on the economy and society at large.1.2 Definition of Airport PrivatizationAccording to Airport Corporate Research In the Program's Privatization Guide, privatization refers to the shifting of government functions, responsibilities, control, and in some cases ownership, in whole or in part, to private sponsors (ACRP, 2012, p. 1). The term airport privatization often refers to the transfer of an entire airport to... middle of paper... Airport Holdings is considered a good example of a privatized company operating in a regular market. While there are around 41 airports handling passengers and cargo in the UK, the market is highly regionalised. In particular, all airports operated by the company, including London Heathrow, have a near-monopoly located in the economically important area of ​​south-east England, with only limited competition from other UK airports (Parker, 1998) . Works Cited http://www.heathrowairport .com/about-us/company-news-and-information/company-information/our-historyhttp://www.leighfisher.com/global-experience/guidebook-considering-and- evaluating-airport-privatization#sthash.sMcjrO6S .dpufhttp://reason.org/news/show/apr-2013-airport-privatization#sthash.sVnRrSOF.dpufhttp://reason.org/search/resultshttp://www. heathrow-airport-guide.co.uk / history.html