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Question

Read the following passage carefully and answer the question.

For all the disagreement in the industry about the future of aviation, on one point : ‘There is going to be a lot more of it. The world’s air passengers flew a combined 7.64 trillion kilometers in 2017. By 2037, that will rise to 18.97 trillion kilometers, with about 40% of increase happening within five intra-regional markets : China, India, North America, Europe and South-east Asia. That is sparking a battle over the biggest bottleneck holding airports. The governments that still own many of them should be more open to privatisation to cover a $ 78 billion funding gap in needed capital investments. Airlines, airports’ biggest customers see things differently. Costs at privatised terminals are higher and governments should be cautious about such actions in the interests of expanding the aviation sector as a whole. Privatising an airport does not necessarily make it more efficient. A study has found there was little difference between the performance of airports 100% owned by commercially-oriented Government corporations and those majority controlled by private businesses. The key is instead to avoid the structures where the incentives for managers are confused or misaligned, such as where private companies are brought in as minority investors or where managers are swayed by political imperatives. There is a better solution out there, but it is not likely to be very attractive to incumbent airlines, airports, or passengers enamored of the current generation of gleaming terminals : build more, cheaper airports.

Which of the following is the focal inference of the author in the passage ?

This question was previously asked in
UGC NET 2018 Paper 1 Question Paper (8-Jul-2018)
The correct answer is

Private ownership of airports does not mean efficient management.

To determine the focal inference of the author in the passage, we need to understand the overall message and key points presented by the author.

The passage discusses the expected future growth in the aviation sector, noting a substantial increase in global air travel by 2037. It addresses the challenges faced by airports, particularly the bottleneck issue, and suggests that governments consider privatization to meet capital investment needs. However, it also highlights the concerns of airlines about increased costs at privatized terminals and notes that privatization does not automatically lead to more efficient airport management.

Let's evaluate each option:

  1. The option "Private ownership of airports does not mean efficient management" aligns with the author's explicit statement that "Privatising an airport does not necessarily make it more efficient." The passage highlights that performance differences between government-owned and privately-owned airports are not significant, primarily if they are commercially-oriented.
  2. The option "Government-owned airports are known for high performance" is not directly supported by the text. Instead, the passage suggests that both government-owned and private airports could perform similarly when commercially-oriented.
  3. The option "Growth of the aviation industry is distorted" is not the main focus of the passage. The passage discusses growth but does not suggest distortion. It instead addresses how to manage growth effectively.
  4. The option "Airports are not an obstacle to the growth of the aviation industry" contradicts the passage. The passage clearly identifies airports as a "biggest bottleneck," suggesting that they are indeed an obstacle if not managed effectively.

Based on the passage and the analysis of the options, the correct answer is that private ownership of airports does not mean efficient management, as emphasized by the passage's focus on the inefficiencies potentially arising from privatization.

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Similar Questions

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  7. Why should the governments be open to privatization of airports ?

  8. What is the growth rate in aviation apart from the five intra-region markets?

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