Samenvatting Airport Business

Airport Business

Lecture 1:

Recap year 1:
 What is an airport
o Connection between land based and air and/or air/air traffic
o Infrastructure based
o Node in a worldwide network
 What are the main business areas of an aiport
o Aeronautical
 Landing fees
 Passenger fees
 Aircraft parking fees
 Handling gees
 Other aeronautical fees
o Non-aeronautical
 Concessions
 Rents
 Direct sales
 Car park
 Recharges
 Other non-aeronautical revenue
o Airport city development
 Who controls the airport fees and charges
o Is an airport allowed to make a profit on airport fees and charges
o What is the role of airlines and government
 What is the cost structure of an airport
o Maintenance of infrastructure and facilities
o Depreciation
o Staff

Business model:
 A business model describes the value an organization offers to various customers
and portrays the capabilities and partners required for creating, marketing, and
delivering this value and relationship capital with the goal of generating profitable
and sustainable revenue streams

4 Building blocks:
1. Traffic based revenues
a. Aeronautical revenues
b. Related non-aeronautical revenues
2. Location based revenues
a. Airport city development
1. Real estate
2. Others like tourism, landside commercial activities
3. Supporting activities or services to stakeholders

, a. Business areas in the region (SADC-concept)
b. Handling and security services
c. Dedicated companies
4. Investments in other airports or companies
a. For Schiphol:
1. Regional Airports in the Netherlands
2. JFK IAB, Brisbane Airport, ADP
3. Shopping areas at airports
 Only block 1
o Traffic based revenues can be found at any airport with commercial traffic
 Blocks 2,3 and 4 will differ per airport and depend on airport organization, local
opportunities and size of airport

Business drivers:
 Business drivers are the key inputs and activities that drive the operational and
financial results of a business
o Define per block what drives business: what parameters drive revenues, cost
and risks per block
o What drives traffic based revenues, costs and risks
o How can an airport profit from its location, what are costs and risks
o What are the revenues, costs and risks related to services and investments in
other businesses
o Are business blocks dependent or independent
 Are developments of revenues, costs and risks related to eachother or
not
 Formula:
o Revenue = volume x price
 What influence/dedicates volume
 What influences/dedicates price levels
 Cost structures
o What influences cost structures
 Investments, depreciation, maintenance, staff and other
 Risk profile
o What developments would have a major impact on the revenues and/or
costs of a business block

Major developments in airport business today:
 Retail declining
o Constant decline of airport shopping revenues due to internet and lack of
differentiation between airport prices/offering and downtown shopping
o Only food and beverages seem to be increasing
 Airport fees and charges under pressure by airline business models
o LCC and FSC try to lower airport fees and charges
o Airport charges today are high percentage of total ticket price for passenger
 Capacity shortage demands additional investments
o High investments in infrastructure but no additional traffic

, o Sustainability requires new facilities and operating procedures that are more
costly
 Limited growth due to societal concerns
o Environmental hinder
o Reduction of opening hours for operations

Stages of airport development:
 .




Airport City:
 An airport city is an efficient, multi-modal hub for air, rail and road transport. It is a
location that offers 24-hour services and facilities seven days a week to its visitors as
well as to the international companies situated there

Donut Economy Model:
 .