A Victory For Taxpayers: Kansas City May Privatize Airport Shuttle Service
Via Tony’s Kansas City, some very good news on the privatization front. The Kansas City Business Journal reports that Kansas City International Airport (KCI) may contract out its shuttle service to Standard Parking, which apparently already operates many of the airport’s parking lots. Not only would privatizing shuttle service save the airport money, but it would also bring KCI in line with many other airports that have already privatized the service.
The five-year contract would be worth $3.6 million a year, which Mark VanLoh, director of the aviation department, said would save the airport about $7 million during the length of the agreement. . . .
VanLoh said KCI (Code: MCI) is one of the only U.S. airports still running its own shuttles, and the costs and insurance headaches have gotten to be too much.
For example, the shuttles have been involved in about 50 accidents during the past two and a half years. Half of those resulted in lawsuits, with the city paying an average of $200,000 each. Under the contract, Standard would take over the insurance obligations.
The airport saves money, Standard makes money, and the service to customers continues. Sounds win-win to me. Indeed, Kansas City (and the state generally) should consider privatizing more of its services. Fortunately, the Show-Me Institute has a handy dandy list of proposals worth a look. The airport’s move is a step in the right direction.