Non aviation revenue streams for airports
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Join Date: Jul 2003
Location: Ireland
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Non aviation revenue streams for airports
I was curious to hear peoples views on where the business model for the running of airports is likely to go.
We have already seen the decrease in the revenue from landing charges as many of these low cost carriers are holding airports to ransom by insisiting in paying nothing or next to nothing.
Everyones favourite CEO - MOL is I am led to believe of the opinion that airports in the future should be paying airlines as they are the ones bringing the people who will then spend their hard earned cash in the airport.
Where will this additional revenue came from, carparks, retail, advertising ???
Already many airport terminals are starting to resemble shopping malls.
Your thoughts ?
We have already seen the decrease in the revenue from landing charges as many of these low cost carriers are holding airports to ransom by insisiting in paying nothing or next to nothing.
Everyones favourite CEO - MOL is I am led to believe of the opinion that airports in the future should be paying airlines as they are the ones bringing the people who will then spend their hard earned cash in the airport.
Where will this additional revenue came from, carparks, retail, advertising ???
Already many airport terminals are starting to resemble shopping malls.
Your thoughts ?
niknak
Join Date: Dec 2001
Location: UK
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It largely depends on which side of the airport fence you sit - if you are the BAA, or one of the major regional UK airports (MAN, NEW, EMA etc), then new business from any operator is always welcome, but on your terms.
On the other hand, if you sit on the other side with annual passenger throughput of less than 1 million or so, new business is always welcome, but you can't be quite so dictatorial in forcing the operator to pay full charges.
Its common knowledge that the French capitulated to MOL and spent millions of Euros extending runways and improving facilities just so that Ryanair would operate into their regional airports, and in more than one case the airport does pay RYR to operate in to them.
However I doubt that this would ever be the case, ever, anywhere in the UK, largely because UK airports are independant companies which have to operate as such, many European airports are still owned and operated by local councils or chambers of commerce.
Also, don't forget that airport income from retail outlets is often vastly more than that made from landing fees.
On the other hand, if you sit on the other side with annual passenger throughput of less than 1 million or so, new business is always welcome, but you can't be quite so dictatorial in forcing the operator to pay full charges.
Its common knowledge that the French capitulated to MOL and spent millions of Euros extending runways and improving facilities just so that Ryanair would operate into their regional airports, and in more than one case the airport does pay RYR to operate in to them.
However I doubt that this would ever be the case, ever, anywhere in the UK, largely because UK airports are independant companies which have to operate as such, many European airports are still owned and operated by local councils or chambers of commerce.
Also, don't forget that airport income from retail outlets is often vastly more than that made from landing fees.
