Airline/Airport Relationship
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Airline/Airport Relationship
I was wondering what sort of issues airlines and airports have with each other from an operational and financial point of view.
Is there anyone out there who could give me an idea of what can cause disagreements, disruption, and friction?
After all, as well as the passengers, airlines are the airports’ customers yet I sometimes get the feeling that airlines’ needs can often be ignored by airports especially when it comes to new developments like a new terminal or making changes to the existing terminal.
If an airline contributes to the cost of developing a terminal it gives them more power to influence the airport to suit their needs but I am curious about situations where this does not occur.
Apart from landing fee negotiations, what problems do airlines encounter at airports? If airlines are not part of the planning process or their input is too low then how can their needs be met? An example might be lack of sufficient office/crew space in a new development due to lack of consultation. I have come across airports where relations with airlines are appalling!
I’m sure there are examples of good relations with airports and if anyone has experience of that I’d also like to hear. It can’t all be bad!
There’s no need to name airports or airlines in any replies. I’m simply curious about the interface between airlines and airports in general.
Is there anyone out there who could give me an idea of what can cause disagreements, disruption, and friction?
After all, as well as the passengers, airlines are the airports’ customers yet I sometimes get the feeling that airlines’ needs can often be ignored by airports especially when it comes to new developments like a new terminal or making changes to the existing terminal.
If an airline contributes to the cost of developing a terminal it gives them more power to influence the airport to suit their needs but I am curious about situations where this does not occur.
Apart from landing fee negotiations, what problems do airlines encounter at airports? If airlines are not part of the planning process or their input is too low then how can their needs be met? An example might be lack of sufficient office/crew space in a new development due to lack of consultation. I have come across airports where relations with airlines are appalling!
I’m sure there are examples of good relations with airports and if anyone has experience of that I’d also like to hear. It can’t all be bad!
There’s no need to name airports or airlines in any replies. I’m simply curious about the interface between airlines and airports in general.
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Airports have to work with the airlines to try and meet their needs, otherwsie there is always the option for them to take their business elsewhere.
Low cost airlines (Ryanair) can be very demanding for the airport authority because they demand ever increasing standards to help them achieve short turnarounds, on time performance and cost effectiveness. Airlines such as these may demand simplified processes / facilities to reduce their costs but these come at a cost to the airport as their facilities are usually designed for a diverse type of airline traffic (unless of course you look at the ex-military airports which offer simple processes and negotiating the terminal is quick and uncomplicated). Often the airport will offer 'competative' landing fees and airport charges to attract these airlines. The benefit for the airport is attracting an airline which can rapidly grow the airport's passenger numbers which increases revenue through things such as car parking and retail spend. These reduced fees however do mean that the airport may not be in a financially robust position to invest in the types of facilities the airlines demand at no additional cost.
On the other hand you have full service airlines such as BA which have their different challenges. Working relationships can often be more productive as these airlines are willing to invest. i.e.
investment in T5.
Airlines don't always consider the consequences of their actions on the airport and consequently their own service. i.e. airline implements new policy which the airport is not consulted on,can not therefore faciliate so it impacts on other aspects of the operation - finally impacting on the service offered to the airline's customers. Great ideas not thought through?
Low cost airlines (Ryanair) can be very demanding for the airport authority because they demand ever increasing standards to help them achieve short turnarounds, on time performance and cost effectiveness. Airlines such as these may demand simplified processes / facilities to reduce their costs but these come at a cost to the airport as their facilities are usually designed for a diverse type of airline traffic (unless of course you look at the ex-military airports which offer simple processes and negotiating the terminal is quick and uncomplicated). Often the airport will offer 'competative' landing fees and airport charges to attract these airlines. The benefit for the airport is attracting an airline which can rapidly grow the airport's passenger numbers which increases revenue through things such as car parking and retail spend. These reduced fees however do mean that the airport may not be in a financially robust position to invest in the types of facilities the airlines demand at no additional cost.
On the other hand you have full service airlines such as BA which have their different challenges. Working relationships can often be more productive as these airlines are willing to invest. i.e.
investment in T5.
Airlines don't always consider the consequences of their actions on the airport and consequently their own service. i.e. airline implements new policy which the airport is not consulted on,can not therefore faciliate so it impacts on other aspects of the operation - finally impacting on the service offered to the airline's customers. Great ideas not thought through?
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Kapella
Your email suggests that airlines have problems with airports, however IMO i think these are often bought on by themselves. Numerous postings on this forum suggest the demand from airports to various places but at times, airlines, like sheep, play 'safe' and head for congested and overcrowded airports and then moan about poor service, competition etc etc
Many airports, and I think the UK ones are at the forefront at this, work increadibly closely with current or potential airlines and I agree that often many of the problems associated to airports are self imposed by the airlines, often because handling agents, which are appointed by the airline, not the airport are under staffed or resourced.
Your email suggests that airlines have problems with airports, however IMO i think these are often bought on by themselves. Numerous postings on this forum suggest the demand from airports to various places but at times, airlines, like sheep, play 'safe' and head for congested and overcrowded airports and then moan about poor service, competition etc etc
Many airports, and I think the UK ones are at the forefront at this, work increadibly closely with current or potential airlines and I agree that often many of the problems associated to airports are self imposed by the airlines, often because handling agents, which are appointed by the airline, not the airport are under staffed or resourced.
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blahblahblah,
I see what you mean re my post. I realise that it can often be the other way around and you're right, handling agents can be the weak link in the whole process.
I have come across an airline that didn't inform an airport until very late in the day that they would be using ULDs. Needless to say the airport at that point had no space left to deal with additional ULDs. They sorted something out but it put a lot of pressure on the airport.
That's the sort of example I'm looking for without being specific about what airline or what airport.
Thanks both of you for your comments.
I see what you mean re my post. I realise that it can often be the other way around and you're right, handling agents can be the weak link in the whole process.
I have come across an airline that didn't inform an airport until very late in the day that they would be using ULDs. Needless to say the airport at that point had no space left to deal with additional ULDs. They sorted something out but it put a lot of pressure on the airport.
That's the sort of example I'm looking for without being specific about what airline or what airport.
Thanks both of you for your comments.
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The global airlines association - IATA, and the global airports association - ACI, are at war with each other at the moment. This IATA Press Release will give you some idea.
Basically, the airlines have come to the realisation that the more they reduce their internal cost base, the bigger the proportion of external costs from suppliers and service providers who are basically monopolistic. It all came to a head after 9/11 when traffic levels dropped and airports simply increased their charges to maintain their income levels.
The situation will probably improve as they (airlines & airports) come to the realisation that they face the same long-term challenges, but towards the end of last year yhe relationship was just about rock-bottom.
Basically, the airlines have come to the realisation that the more they reduce their internal cost base, the bigger the proportion of external costs from suppliers and service providers who are basically monopolistic. It all came to a head after 9/11 when traffic levels dropped and airports simply increased their charges to maintain their income levels.
The situation will probably improve as they (airlines & airports) come to the realisation that they face the same long-term challenges, but towards the end of last year yhe relationship was just about rock-bottom.
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Viability
Originally Posted by The SSK
The global airlines association - IATA, and the global airports association - ACI, are at war with each other at the moment. This IATA Press Release will give you some idea.
Basically, the airlines have come to the realisation that the more they reduce their internal cost base, the bigger the proportion of external costs from suppliers and service providers who are basically monopolistic. It all came to a head after 9/11 when traffic levels dropped and airports simply increased their charges to maintain their income levels.
The situation will probably improve as they (airlines & airports) come to the realisation that they face the same long-term challenges, but towards the end of last year yhe relationship was just about rock-bottom.
Basically, the airlines have come to the realisation that the more they reduce their internal cost base, the bigger the proportion of external costs from suppliers and service providers who are basically monopolistic. It all came to a head after 9/11 when traffic levels dropped and airports simply increased their charges to maintain their income levels.
The situation will probably improve as they (airlines & airports) come to the realisation that they face the same long-term challenges, but towards the end of last year yhe relationship was just about rock-bottom.
Can major airports go bankrupt? And what are the effects to the airlines that operate from the airport up to the time the airport folds? Or to the place served by the airport?
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Originally Posted by chornedsnorkack
Can major airports go bankrupt? And what are the effects to the airlines that operate from the airport up to the time the airport folds? Or to the place served by the airport?
Regional airports are another matter, they can't deliver the same passenger volumes to the retailers, and if they offer airlines 'take it or leave it' fees the airlines might just leave it. However, they are normally owned (and subsidised) by local or regional authorities or in countries like Spain or Finland they are part of a national airport authority and cross-subsidised from the profitable hub.
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Airline/Airport relationship
The two groups have differing needs and therefore there will be friction. The airlines want to get into an airport, offload, onload and depart as quickly as possible. They want their passengers to check in quickly and go to the gate and board. They want baggage and freight delivered to the aircraft promptly.
Airports make money out of passengers spending as they go through the airport so they put shops and other attractions in the way to delay people going through to the aircraft.
Airlines plan for next season or maybe next year. Airports have to plan 10 years ahead to get through the planning and construction processes. Ask an airline what aircraft it will be using 10 years ahead and they have no idea.
Airport managers are generally bureaucrats who don't meet passengers. Airline managers at airports are operational people dealing with the next turnround. The two jobs need different types of people.
Airports make money out of passengers spending as they go through the airport so they put shops and other attractions in the way to delay people going through to the aircraft.
Airlines plan for next season or maybe next year. Airports have to plan 10 years ahead to get through the planning and construction processes. Ask an airline what aircraft it will be using 10 years ahead and they have no idea.
Airport managers are generally bureaucrats who don't meet passengers. Airline managers at airports are operational people dealing with the next turnround. The two jobs need different types of people.
