Strategic airport planning and Marketing eMMy arSonval Maniriho

Strategic airport planning and Marketing

Strategic airport planning and Marketing

eMMy arSonval Maniriho

Notion Press Old No. 38, New No. 6 McNichols Road, Chetpet Chennai - 600 031 First Published by Notion Press 2016 Copyright © Emmy Arsonval Maniriho 2016 All Rights Reserved. ISBN 978-1-945926-00-6 This book has been published with all efforts taken to make the material error-free after the consent of the author. However, the author and the publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause. No part of this book may be used, reproduced in any manner whatsoever without written permission from the author, except in the case of brief quotations embodied in critical articles and reviews.

Contents Preface

ix

Abstract

xi

Chapter I: Introduction to Strategic Airport Planning and Marketing

1

1.0. Introduction

1

1.1. Definition of Concepts

2

1.2. Airport Structure

2

1.3. Growth of Air Transport

3

1.4. Airport Organization and Associations

5

1.5. Classifications of Airports, Airfields, Aprons and Ramp Components

7

1.6. Navigational Aids Located on Airfields

9

1.7. Factors for Airport Site Selection

11

1.8. Air Traffic Zones and Approach Areas

14

1.9. Context of Airport System Planning and Development of Airport Planning Process

18

Conclusion

34

Chapter II: Aircraft Characteristics Related to Airport

35

2.0. Introduction

35

2.1. Component Size

36

2.2. Component Size and Terminal Area

37

2.3. Apron Layout

37

2.4. Airport Capacity and Delay

38

Conclusion

47

Chapter III: Airport Planning and Surveys

49

3.0. Introduction

49

3.1. Runway Lengths

49

3.2. Runway Width

50

3.3. Runway Sight Distances

51

3.4. Taxiways

51

3.5. Clearances

52

3.6. Aprons or Ramps and Holding Apron

52

3.7. Runway Numbering

52

3.8. Runway Intersections

53

3.9. Planning and Design of Airport Terminal Area

54

3.10. Passenger Terminal Concepts

55

3.11. Air Traffic Control and Aids

56

Conclusion

65

Chapter IV: Airport Enterprise

67

4.0. Introduction

67

4.1. The Role and Scope of Activity of the Airport enterprise

67

4.2. The economic Impact on Countries and Regions: The Main Governance Patterns in the Airport Business

67

4.3. Airport Transport Value Chain

69

4.4. Airport Market Positioning

69

4.5. The Air Transport Value Chain Stakeholders

70

4.6. The Rise of Airport Marketing for the Aviation Related Business

73

4.7. Positioning Strategy, and the Five Different Alternatives

73

4.8. Airport Positioning Criteria

77

4.9. Airport Revenue Management System

77

4.10. Identification of Partners for Airport Development

80

4.11. The First ‘Quantum Leap’ of the Airport enterprise

83

4.12. Low Cost Airports

84

4.13. Airport Alliances and Management Contract

85

4.14. Management Contract

87

Conclusion

87

vi|CONTeNTS

Chapter V: The Development and Management of Non-Aviation Revenue

89

5.0. Intoduction

89

5.1. The Development of the Non -Aviation Related Value Proposition

89

5.2. evolution of Traditional Airport

93

5.3. Traditional Airport

94

5.4. evolutionary Patterns for Airport enterprises

95

5.5. British Airports Authority (BAA) and Non- Aviation Business

98

5.6. Best Airport in the World: The Case of Singapore Airport

98

5.7. Airport Marketing Planning: London City Airport

100

5.8. Airport Business Worldwide: Airports’ Performances

102

5.9. US and european Performance

106

5.10. Asia Pacific Performance

106

5.11. Middle east and Africa’s Performance

108

5.12. Air Transport Industry Outlook 2013–2016

110

5.13. Air Transport in Bric Nations

111

5.14. Trends in the 10 Largest Air Passenger Markets

111

5.15. Regional Growth Highlights

111

5.16. Demand Drivers for Airport and Airline Industry

112

Conclusion

113

Bibliography

115

List of Abbreviations

119

CONTeNTS|vii

PrefaCe

S

trategic airport planning and marketing defines initial commitment on how to develop and meet a range of possible future aviation market demands.

Anticipation of airport future is therefore a room for expansion and provisions for investment according to the need for airports design and infrastructure development to accommodate the desired volume of traffic and run airport enterprise as business entity. In order to understand what it means to strategically develop airport, all direct aviation stakeholders must have a sound foundation of strategic airport planning, marketing skills and an understanding of the key elements critical to achieve success in the business of air transport. I wrote this book to provide a framework for learning these necessary skills in a way that emphasizes the airport system planning and development of airport planning process. This book stresses the necessary skills in building and maintaining airport enterprise in order to make decisions that have economic impact on countries and regions. When we look at the dynamics of aviation industry, it is easy to see why it can be challenging to develop and market an airport in order to generate revenue. The present book gives an ideal approach on how to handle these airport planning challenges. I had three main goals in writing this book: • Filling the gap of knowledge in as far as strategic airport and marketing is concerned. • Facilitating, researching, and teaching airport planning and marketing. It is important to provide readers with the skills that are research-based from both the field of airline and airport management and other related disciplines. • To describe and explain strategic airport related concepts. This book uses realistic examples to help readers deeply understand what airport planning is all about. In addition to examples, I have used figures to clearly illustrate airline and airport concepts. Emmy Arsonval Maniriho

abstraCt

S

trategic Airport planning and marketing is a significantly improved approach that realistically accounts for rapid changes in the economy of countries, regions, airlines and airports.

It is said that dynamic strategic planning is like playing chess as a grand master - you look ahead many moves but only decide one move at a time. Dynamic strategic planning compares to master planning as grand master chess compares to beginner play. Fully updated, and reorganized to reflect the latest advances in the aviation industry, Strategic Airport Planning and Marketing, first edition, offers a comprehensive coverage of this challenging field. Airport enterprise, Growth of air transport, airport system planning, and design of the terminal, Airside and Airfield, Aviation and non-aviation revenue are discussed in detail. The First edition is a guide to the planning, development, and management of airports. It is a self-study tool, and aviation professional reference. Written by airline and airport management professional, this is an in-depth guide to creating effective and efficient airports. To achieve this objective, airport planning actors have to consider the whole from the initial planning, through the design of the facilities, to the ultimate management and operation of the airport. This book is at the forefront of current practice of the design, development, planning, and management of airports.

CHaPter I

IntroDUCtIon to strateGIC aIrPort PLannInG anD MarKetInG

1.0. INTRODUCTION Managing an airport is so complex and it is often said that managing an airport is like being mayor of a capital city of a country. Similar to a capital city, an airport is comprised of a huge variety of facilities, development activities, modernisation and expansion, systems, travellers, employees, strict rules and regulations. Also as cities strive for trade and commerce with other cities, airports must be accessible and be located where passengers and cargo can travel to and from other airports. Moreover, merely as capital cities find their place as part of its country and nation’s economy, airports must operate adequately as part of the country’s system of airports. In this book, strategic airport planning and marketing will be largely described for ultimate purpose of increasing knowledge in airport development, planning and marketing for the survival of airports business.

Objectives The objectives of writing this book are the following: 1. To inculcate in the minds of readers the knowledge of Airport planning 2. To define clearly the concepts related to strategic airport planning and Marketing 3. To Highlight the growth of airport transport 4. To provide classifications of airports 5. To present the factors affecting selection of airport site 6. To identify Air traffic zones and Approach areas 7. To point out the ultimate consumers in airline and airport industry 8. To indicate the role and scope of activity of Airport enterprise 9. To point out the economic and governance impact of countries and regions on airport business

10. To discuss the actors in air transport 11. To describe airports market positioning 12. To Provide tangible information on airport development 13. To discuss airport revenue management 14. To elaborate airport alliances and contract management 15. To indicate Commercial Airport philosophy 16. To cultivate the knowledge of airport marketing and planning

1.1. DEFINITION OF CONCEPTS Strategic Airport planning and Marketing has important concepts that overlap a wide spectrum of knowledge covered as the following: Airport: it is defined as a location where aircrafts such as fixed wing aircraft for example; Boeing and airbus and helicopters take off or land. Airport is extended to be a legal term reserved exclusively for those aerodromes certified or licensed as airports by relevant governing organisation after meeting specified criteria or regulating requirements. All airports are aerodromes but not all aerodromes are necessarily airports. Airport is principally intended for use of commercial service. The terms: “aerodrome, airdrome, airfield and airstrip” may be used to refer to “airports”. Aerodrome: It is any defined area on land or water intended to be used for arrival and departure of an aircraft. It may not be used for all scheduled flights and it may be provided with shelter and repair facilities to aircraft. Airfield: Airfield is simply the area which is used for landing and take-off of an aircraft. It may not be provided with facilities for passengers, shelter, service, and servicing of aircraft. Domestic airport: where airlines will be operating the flights within the country International airport: it is an airport which handles international air traffic and functions according to international aviation rules framed by International Civil Aviation Organisation (ICAO) as a UN entity since airspace which belongs to different countries is used under its agreement among member countries. This kind of airport serves as a place of entry and departure from the country. Moreover, the international airport has necessary facilities for customs, emigration and immigration procedures. Hangars: It is a large structure of an airport where an aircraft is stored and maintained.

1.2. AIRPORT STRUCTURE Airports are often described by their levels of activity. The activity, services and investment levels may influence on airport structure but the bottom-line structure of an airport is shown in the following diagram.

2|STRATeGIC AIRPORT PLANNING AND MARKeTING

Figure 1: Illustration of Airport structure

Airports are divided into two areas: 1. Land side areas: Includes parking area, train station area, terminal etc. 2. Airside areas: Include all areas accessible to aircraft including runways, taxiways and ramp. • Runways: it is a road where an aircraft can take off or land • Taxiways: An area between runway and ramp where an aircraft moves like a taxi • Ramp: An area where an Aircraft parks next to board passengers and baggage • Terminal: It is a main airport building where passenger can purchase tickets, go through security, check –in, board their aircraft through gates.

1.3. GROWTH OF AIR TRANSPORT International air transport grew at double-digit rates from its earliest post Second World War in 1945 until the first oil crisis in 1973. Much of the impetus for this growth came from technical innovation. The introduction of turbo-propeller aircraft in the early 1950s, transatlantic jets in 1958, wide-bodied aircraft and high by-pass engines in 1970 and later, advanced avionics were the main innovations. They brought higher speeds, greater size, and better unit cost control, as a result, lower real fares and rates. Combined with increased real incomes and more leisure time, the effect was an explosion in demand for air travel.

INTRODUCTION TO STRATeGIC AIRPORT PLANNING AND MARKeTING|3

Strategic airport planning and Marketing Strategic Airport Planning and Marketing exhibits the entire strategic conception and business plans for constructing airports, establishing master plan and running the airport operations. Why Airport Strategic Business Planning and Marketing? This book defines strategic planning and considers plan elements, review Planning Process and measuring airport success. It showcases the best management practices, aviation trends and strategic thinking, which are explained broadly. It is not possible, and it may look absurd if the airport companies fail to plan and market like other business enterprises. This book poses stress on strategic airport planning, operational and managerial planning, and on how to deal with all parties involved in airport development processes.

Emmy Arsonval Maniriho is the Co-Founder and CEO of Go Smart Aviation Ltd. With his vivid dream of becoming an expert in the aviation industry and his thirst for knowledge in many fields, he obtained an MBA in Airline and Airport Management, M.A. Human Rights, PGD in NGO Management, BA in Journalism and Communication, Diploma in Theology, Diploma in United Nations and International Understanding. He thus has broad knowledge and experience in international air transport, management, and tourism and hospitality management. He is keen to train and educate aviation aspirants. He has co-authored various scientific research papers which have been published in international journals. He has also written a number of articles. He has worked extensively as an expert in Public Relations, Communication Officer, as a Chief Editor and both a Radio and Print Journalist for more than five years. Emmy was born in Rwanda in 1986 and graduated from various Universities: Bharathiar University, Madurai Kamaraj University and from the University of Rwanda. He is a member of different organizations such as Indian Federation of United Nations Associations (IFUNA), Famille de Paix, and a member of L’Institut de Formation et de Recherche GeorgesHenri Lévesque (IFR-GHL), based in Quebec, Canada.

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