Managing Airports, Second Edition: An International Perspective

292 Pages·2003·3.54 MB·English

by  Anne Graham

Managing Airports
Butterworth-Heinemann
An imprint of Elsevier
Linacre House,Jordan Hill,Oxford OX2 8DP
200 Wheeler Road,Burlington MA 01803
First published 2001
Reprinted 2002
Second edition 2003
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Managing Airports
An international perspective
Second edition
Anne Graham
AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD
PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO
Contents
List of figures vii
List of tables ix
Preface xii
Acknowledgements xiii
Abbreviations xv
1 Introduction 1
2 The changing nature of airports 8
Traditional airport ownership and management 8
Moves towards commercialization 10
Why privatization? 12
The privatization timetable 17
Types of privatization 18
The globalization of the airport industry 37
Impact of airport globalization on users 48
3 Airport economics and performance benchmarking 54
Industry profit levels 54
Revenue and cost structures 56
Factors influencing costs and revenues 59
Measuring economic performance 61
4 Service quality and its measurement 74
Increasing emphasis on quality 74
Measuring the quality of service 76
Service level agreements 82
Level of delays 85
Quality management at airports 91
Contents
5 The airport–airline relationship 98
The structure of aeronautical charges 98
The level of aeronautical charges 104
The impact of aeronautical charges on airline operations 104
The airport regulatory environment 111
Regulation of privatized airports 112
Slot allocation 120
Ground handling issues 126
The US experience 129
A new airport–airline relationship 132
6 The provision of commercial facilities 140
The importance of commercial facilities 140
The market for commercial facilities 142
Approaches to the provision of commercial facilities 149
The commercial contract and tender process 153
The ending of EU duty- and tax-free sales 158
The impact of 11 September 2001 163
7 The role of airport marketing 178
The birth of airport marketing 178
The nature of airport competition 180
Marketing concepts 182
Airport marketing techniques 188
Norwich airport 199
8 The economic impact of airports 203
The wider picture 203
Airports as generators of economic activity 204
Measuring the direct,indirect,and induced impacts 206
Airports and economic development 212
9 The environmental impact of airports 219
Growing concerns for the environment 219
The main impacts 220
The role of other transport modes 229
The social consequences 236
Environmental management 237
Sustainability and environmental capacity 245
10 The impact of 11 September 2001 and future prospects 251
Overall effect on the air transport industry 251
Airport traffic levels 253
Airport financial performance 255
Security issues 259
The insurance problem 264
Future prospects 265
Index 272
vi
Figures
1.1 Airport passengers by world region,2001 2
1.2 Airport cargo tonnes by world region,2001 3
1.3 Airport aircraft movement by world region,2001 3
1.4 The world’s 20 largest airports by total passengers,2001 4
1.5 The world’s 20 largest airports by cargo tonnes,2001 4
1.6 The world’s 20 largest airports by air transport movements,2001 4
1.7 The world’s 20 largest airports by international terminal
passengers,2000 5
2.1 Ownership of Vienna airport until 1992 15
2.2 Ownership of Vienna airport after IPO in 1992 15
2.3 Ownership of Vienna airport after secondary offering in 1995 15
2.4 Ownership of Vienna airport after changes in 2001 16
2.5 Total passengers at Vienna airport,1979–2001 16
2.6 Total revenues – Vienna Airport Group,1979–2001 16
2.7 Traffic at Australian airports,1996–7 32
2.8 Profitability at Australian airports,1996–7 32
2.9 External capital funding at large US hub airports,2000 35
2.10 External capital funding at small US hub airports,2000 35
2.11 Total passengers at Amsterdam airport,1989–2001 38
2.12 Profitability – Schiphol Group,1989–2001 38
2.13 Organizational structure within the Schiphol Group,2002 40
2.14 Financial results of TBI,1994–2002 44
3.1 Percentage share of aeronautical revenue at ACI airports
by world region,2001 57
3.2 Cost per WLU for European airports,2001 67
3.3 Revenue per WLU for European airports,2001 67
3.4 WLU per employee for European airports,2001 68
3.5 Revenue per employee for world airports,2000–01 69
3.6 Total factor productivity for world airports,1999 70
4.1 Passenger survey results at Brisbane airport,2001–02 90
Figures
5.1 Aeronautical charges and taxes for an international B737–800
turnaround in 2002 at world airports 105
5.2 Landing and passenger charges as a share of total costs for UK
airlines,2000 107
6.1 Non-aeronautical revenue per passenger at ACI airports by
world region,2001 147
6.2 Concession revenue:Brussels airport,2001 147
6.3 Concession revenue:Washington airports,2001 148
6.4 Airport retail revenue per square metre in 2000/2001 159
6.5 Non-aeronautical revenue share (%) at
European airports,1998–2001 163
6.6 Profitability – Aer Rianta,1992–2000 167
6.7 Retail space at BAA UK airports,1990–2002 169
6.8 Revenue sources for BAA,1999–2002 171
6.9 Profitability – BAA,1999–2001 172
7.1 Total passengers at Southampton airport,1990–2002 199
7.2 Total passengers at Norwich airport,1990–2002 201
8.1 The economic impact of airports 205
8.2 Employment at European airports in 1996 207
8.3 Employment at Gatwick airport in 1997 210
9.1 Existing and planned rail links to airports 231
9.2 Public transport usage by passengers to and from the airport,2001 232
9.3 Mode of surface transport used by passengers at London
Heathrow airport in 2001 233
9.4 Mode of surface transport used by employees at London
Heathrow airport in 1999 233
10.1 Airport passenger growth by world region since 11 September 2001 254
10.2 Average annual pax-km forecasts of main regional flows,2002–21 268
viii
Tables
1.1 Growth in passenger numbers at the world’s 20 largest airports 6
2.1 Airport privatization through share flotations 20
2.2 Airport privatization through trade sales 22
2.3 Airport privatization through concession agreements 24
2.4 Airport privatization through project finance 25
2.5 Ownership patterns at main UK airports,2003 29
2.6 Traffic and profitability growth at main UK airports,1987–2001 31
2.7 Privatization details of Australian airports 33
2.8 TBI’s expansion into the airport business,1995–2002 44
2.9 PlaneStation airports operated by Wiggins in 2003 50
3.1 Profitability for 30 major airport operators,2001–02 55
3.2 Airport operating revenue sources 56
3.3 Average revenue and cost structures at European airports,
1983–2001 58
3.4 Revenue and cost structures at a selection of European
airports,2001 58
3.5 Performance indicators commonly used to assess economic
performance 64
4.1 Service standards used by Manchester airport 76
4.2 Criteria most frequently used to measure quality of service at
ACI airports 79
4.3 Summary of QSM scores 2001–02 at BAA London airports 80
4.4 Overall passenger satisfaction levels:best performing airports
from IATA’s 2001 global airport monitor by size of airport 81
4.5 BAA London airport ‘best endeavours’service level targets,1999 83
4.6 GSSs agreed at Manchester airport in 2002 84
4.7 Increasing scheduled journey times at congested airports 86
4.8 Delays at major European airports on intra-European
scheduled services,2002 87
Tables
4.9 Proposed service quality elements to be included in the
regulation of BAA London airports 88
4.10 Survey results of seven major airlines at Brisbane airport,2001–02 90
4.11 Static quality indicators at Brisbane airport,2001–02 91
5.1 Main aeronautical charges at airports 103
5.2 New growth and new route discounts available at Aer
Rianta airports,1994–9 on airport fees 109
5.3: Discounts given to each airline at Aer Rianta airports,1998–2001 109
5.4: New route discounts available at Aer Rianta Airports
2001–03 on passenger,landing,and parking fees 110
5.5 IATA’s criteria for airport economic regulation 116
5.6 The ‘X’value used for the UK airport price caps 117
5.7 The ‘X’value used for the Australian airport price cap for 5 years
after privatization in 1997–8 119
5.8 Slot co-ordination status of major airports in the EU 122
5.9 Key features of the 1993 EU slot allocation regulation 123
5.10 Key features of the 1996 EU ground handling directive 128
6.1 The different markets for commercial facilities at airports 146
6.2 Concession income at BAA London airports,2000–01 157
6.3 Short-term impact of the loss of intra-EU duty- and tax-free
sales on airport revenues 161
6.4 Changes in non-aeronautical revenue at UK airports,1998–2001 164
6.5 Aer Rianta’s involvement in international retailing activities,2002 166
6.6 Key developments in BAA’s retail strategy in the 1990–2000s 171
7.1 Number employed in airport marketing at selected regional airports 179
7.2 Alternative low-cost airports within Europe 181
7.3 The airport’s customers 183
7.4 Factors affecting the choice of airports 184
7.5 Passengers reasons for choice of UK airport in 1998/99 185
7.6 Airline and tour operators marketing support costs
at Manchester airport,1998–2003 190
7.7 Elements of agreement between Ryanair and BSCA 192
7.8 Main catchment areas of London City airport,2002 197
7.9 Passenger profile at Southampton airport,2000 198
7.10 Passenger profile at Norwich airport,1999 200
8.1 Employment impacts at European and North American airports 211
8.2 Economic impacts at Washington,Brisbane,Geneva,and
Vienna airports 216
9.1 Emission charges at Swedish airports in 2002 226
9.2 Targets and commitments – Heathrow airport surface access
strategy,2002 234
9.3 Key environmental performance indicators at airports 238
9.4 Environmental,economic,and social expenditure and savings at
Heathrow airport,2001/2002 239
9.5 Key events in the development of Manchester airport’s
second runway 241
9.6 Manchester airport’s ‘green charter’ 242
9.7 Main environmental indicators used by Copenhagen airport A/S 244
x