Plan puts Gary airport privatization in holding pattern

A new strategic business plan developed for Gary/Chicago International Airport recommends any effort to privatize the airport be deferred until its value can be built up enough to make it attractive to investors.

"If you look at the Gary airport, it is an airport that's losing money, and it takes outside money to support it," said Dan Muscatello, the Landrum & Brown managing partner who oversaw the plan's development. "It would be hard to put together an attractive deal."

The plan points out that privatization at this time could create a number of hurdles for the airport, including jeopardizing some federal grants it receives.

"Attracting investors for a facility without commercial traffic, confronted with substantial financial challenges, and hampered by a poor public image is at best unlikely," the plan states.

Privatizing the airport long has been talked about and promoted by both Gov. Mitch Daniels and more recently Gary Mayor Rudy Clay. It has become a hot-button issue in Gary politics, with some potential rivals to Clay weighing in against privatization.

Clay was out of town Thursday and did not attend the Build Indiana Summit where the strategic business plan was unveiled.

Muscatello said farming out management of airport operations to a private company remains an option for the airport.

Gary/Chicago International Airport Authority President Nate Williams confirmed the option of contracting out airport management is being examined.

"We are looking at that," Williams said. "As the mayor said a couple of days ago, everything is on the table."