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.
Why should the governments be open to privatization of airports ?
For necessary capital
The question is asking why governments should be open to the privatization of airports. To answer this, we need to consider the context given in the passage.
The passage discusses the rapid growth projected in the aviation sector, with air travel expected to increase significantly by 2037. This growth presents a challenge as current airport infrastructure may not be sufficient to handle the expected increase in passengers. A funding gap of $78 billion is identified, highlighting the need for capital investments to expand and improve airport facilities.
Let's evaluate the options given:
- Because there is a battle for growth: While growth is certainly a factor, the passage does not indicate that governments should privatize airports solely because of a growth battle.
- Because they own many airports: This is true, but the passage suggests that ownership is a reason to consider privatization for funding needs, not a reason in itself.
- To limit the government control of the aviation industry: The passage does not emphasize reducing government control as a primary reason for privatization.
- For necessary capital: The passage clearly states that there is a $78 billion funding gap for necessary capital investments in airports, making this a strong reason for governments to consider privatization.
The most compelling reason from the passage for the governments to be open to privatization is the need to cover the significant funding gap in capital investments. Privatization can attract private investment necessary to meet these financial demands.
Therefore, the correct answer is For necessary capital.
Similar Questions
The principles of effective writing useful for both students and teachers are
(a) Stress on hyperboles
(b) Liberal use of adjectives
(c) Clarity
(d) Conciseness
(e) Correctness
(f) use of complex sentences
Choose the correct option from the following:Given below are two statements − one is labelled as Assertion A and the other is labelled as Reason R.
Assertion A: Pedagogy and social interaction are two major result-oriented activities of a teacher
Reasons R: Communication has a limited role in both these activities
In the light of the above stated two statements, choose the correct option from the choices given below:Successful educational communication is dependent upon the skills of
(a) Understanding the negative characteristics of the audience
(b) Verbal communication and body language
(c) Estimating time for audience impact
(d) Analysing the audience needs
Choose your answer from the following options:Effective educational communication is
A key element for effective classroom communication is
What is the key for making airports function efficiently ?
What is the growth rate in aviation apart from the five intra-region markets?
How do airlines see the move for privatization of airports ?
(a) Feel that costs are high
(b) Governments should be cautious
(c) Interest of the aviation sector is important
(d) It decentralizes the authority to control
Which of the following is the focal inference of the author in the passage ?
In a classroom, communication becomes effective when participants are:
(a) Active
(b) Empathetic
(c) Heterophilous
(d) Homophilous
(e) Silent
(f) Uncritical
Code :
Important Questions from Effective Communication
- Writing will need to meet a number of requirements to successfully pass the readability stage
They are
(i) Sentences must be well formed syntactically
(ii) Sentences should not be below a minimum length
(iii) Recursion must be kept to a minimum
(iv) Choice of words should invary
Choice the correct answer from the options given below : - Effective Development Communication is influenced by which of the following factors ?
(i) Dissemination of Information
(ii) Use of the Information by users
(iii) Location of the users
(iv) Size of the audience
Code : - Arrange the steps in preparing and delivering a public speech :
(i) Organise your speech.
(ii) Rehearese and deliver your speech
(iii) Select your topic and purpose
(iv) Analyse your audience
(v) Research your speech topic
code : The principles of effective writing useful for both students and teachers are
(a) Stress on hyperboles
(b) Liberal use of adjectives
(c) Clarity
(d) Conciseness
(e) Correctness
(f) use of complex sentences
Choose the correct option from the following:Given below are two statements − one is labelled as Assertion A and the other is labelled as Reason R.
Assertion A: Pedagogy and social interaction are two major result-oriented activities of a teacher
Reasons R: Communication has a limited role in both these activities
In the light of the above stated two statements, choose the correct option from the choices given below:
