The Impact of Privatization on State-Owned Enterprises Performance and Efficiency: Case Study of Sudan Airways
Regulation, Antitrust and Privatization Journal, Vol. 3, Issue 35, February 23, 2011
58 Pages Posted: 14 Feb 2011 Last revised: 26 Jul 2011
Date Written: February 14, 2011
The current paper analyzes the impacts of privatization of Sudan air carrier, Sudan Airways. The hypothetical framework in this study is that alternative policies other than privatization are feasible. Sudan airways represents the sovereignty of the country carrying its flag, its objectives is in discrepancy with the foreign shareholders objectives. Experience shows that privatization needs large amount of capital plus qualified managerial, technical, financial and marketing cadres. Before privatization there was a reconstruction plan improved the performance of the company. That encouraged more work to improve efficiency and generate profits. Sub-private companies performing on profit means that can be created to increase higher benefits to the company, such as special flights, hotels and catering, cargo and partnerships with other companies. Mildest forms of privatization and load shedding may be possible in present circumstances. That means keeping state enterprises with the public sector and reforming them as the course to those concerned with efficiency of government services. Attaining social values and subsidized prices sometimes can be more profitable than commercial profits. Dominance of foreign shareholders may affect the objectives of the firm as it is also vulnerable to corruptions. Besides, losing state ownerships, with weak controlling can be harmful to the functionality of the firm.
Keywords: Sudan Airways, State Enterprises, Privatization, Efficiency
JEL Classification: E6, E66, E69, G2, G3, G20, G30, G31, G32, G33, G34, G35, G39, H00, H1, H2, H11
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