AIRPORT STRATEGIC PLANNING

UNIT-1 INTRODUCTION

AIRPORT:
Airport, also called air terminal, aerodrome, or airfield, site and installation for the
takeoff and landing of aircraft. An airport usually has paved runways and
maintenance facilities and serves as a terminal for passengers and cargo.

Growth of Air Transport:

Many airports were developed for military rather than civilian purposes, especially
around
the time of the Second World War. Transferring them to civilian use, governments
decided which airlines would operate between which airports under the system of
government ownership and control.
Main airports were often developed as status symbols – the objective being to make
the country look strong and powerful – but the airports were not necessarily
customer-orientated or profitable. This did not matter, since they were government
owned and did not have private shareholders seeking a return on their investment.
Other regional
and local airports also tended to be publicly owned, often by local authorities that
were proud
and protective of their airport, especially given that it provided the region with
opportunities for connectivity.Many were created for regional development purposes.
In addition to being developed for political as opposed to market-orientated
objectives, the vast majority of airports – irrespective of size or ownership – have
traditionally focused on operational capabilities needed for safe and efficient
movement of aircraft, people and cargo.
They have not concentrated on the pre-determined needs and wants of customers,
nor operated as commercial enterprises with a focus on marketing.
The literature suggests that we are now in a marketing-orientated era that emerged
in the 1970s, characterised by companies that are focused on developing products
and services that meet customer needs and wants.
After decades of standstill in both strategic and competitive practices within industry
borders, the airport business has recently shown proof of new proactive, marketing-
driven approaches towards the market.
The role of airports has been evolving, from a mono-modal to a multimodal hub
approach, to the “multipoint firm” concept. This kind of enterprise seems, in its best
practices, capable of serving various demand clusters with an array of different value
propositions: attractions for tourists and aviation enthusiasts, congressional and
logistic facilities, shopping venues and consulting services appear the most relevant
ones. This section shows the evolving profile of airports towards the “airport as a
firm” concept.
This goal has been achieved through the implementation of more complex forms of
service packages in order to satisfy evolving needs of enriched audiences, rather
than identifying with the traditional audience, air passengers and air transport
employees only.

Airport Organization and Associations:

Every state has its own organizational format under which their airports should
operate. This will depend on the situation in the state concerned and will often be
strongly influenced by government policy. Airport organizational structure is
categorized as follows:
1. Airports under civil aviation administration
2. Autonomous airport authorities
3. Multipurpose authorities
4. Autonomous civil aviation authority
5. Private involvement in airport ownership and operations
6. Airport as a Business Enterprise Engine

1.Airports under Civil Aviation Administration

Most of the international airports are operated by a civil aviation administration or by
another
government department with parallel tasks. These functions generally include the
operation of route facilities and services, inspection of aircraft, issue of certificate and
licenses, activities related to the
approval or filling of air carrier forces and rates, negotiation of bilateral agreements
etc. are directly view under the government administration.
Airport is the separate body or department within the civil aviation administration
under the chief or head directly reporting to the Director General of Civil
Administration (DGCA).

2.Autonomous Airport Authorities:

An autonomous airport is an independent authority established with an objective of
operating and managing one or more airports. These types of airport administration
were found in Europe, United States and some parts of Asia Pacific regions. The
scope of autonomous authorities has expanded to its operation with an additional
management of overseeing the air route facility as well. ICAO recommends the
states, considering for establishing the authorities to manage airports and route
facility
or both with an aim of attaining improved efficiency and financial results. For
instance, Airports Authority of Thailand and Airports Authority of India fall under
this category.

Scope and Areas of Responsibility under Autonomous Authority

Before an airport authority becomes operational its charter or document has to be
developed for the functioning of airport, describing the scope of the services, which
an
airport authority is to be responsible for providing and operating. The major services
or areas are:
􀁺Aircraft Movement Areas
􀁺Passenger Terminal Facilities
􀁺Cargo Facilities
􀁺Aircraft Parking Areas
􀁺Hanger Services
􀁺Air Traffic Control including Communication and Metrological Services

3. Multi-purpose Authorities
Multi-purpose authorities operate not only airport facilities but also for one or more
other modes of transport, covering such facilities as ports, bridges and tunnels. To
name a few airports under the multipurpose authorities are San Francisco, Omaha,
Harlingen (Texas) governed by city authorities.

4. Private Involvement in Airport Ownership and Operations

In the recent past, there was movement towards liberalization in the ownership and
management of airports. Privatization in airport infrastructure started way back to
1987. British Airports Authority (BAA Plc) was the first airport to privatize during
1987.
Private participation means that the private sector has a role in the ownership and /or
management in the provision of airport services, that majority or ultimate ownership
remains with the government. Most common form of private involvement
used for airport management and operations are:
􀁺Management contract
􀁺Lease or concession
􀁺Transfer of minority ownership or control
􀁺Private sector ownership or operation of parts of the activities of an airport.

5. Airport as a Business Enterprise Engine

Aviation industry in 21st century is moving away from public support towards
selfsufficiency
and privatization. The main task for airports today is to build and operate
as efficiently as possible to reduce dependency on tax revenues and other subsidies.
Most progressive airports today are undergoing a radical change by increasing
efforts
on revenue enhancement. These airports are becoming an enterprise and increasing
their incomes by generating new revenue streams and business opportunities in the
airport.
Airport as a Shopping Mall
Airport as a Technological Park
Airport for Entertainment
Economic Progress and Financial Strength
Network Links
International Tourism
Generation of Labour Market

CLASSIFICATION OF AIRPORT’S AIRFIELD

COMPONENTS
Functions of Airfield
The chief functions of airfield are to oversee the Runway, Parking stands, Apron,
Safety and Security to aircraft while landing and take-off in the airport. Further, it also
manages the function of allocation of bay to the aircraft as per their size and nature
of
traffic.

Airfield Components
Airfield facility components comprise runways, taxiways, navigational aids, airfield
marking/signage and lighting. Terminal area facility components includes hangars,
terminal building, apron parking area, fuel quantity and storage size, public vehicle
parking, and airport access needs. Runways must be sufficient large to provide the
take-off and landing of commercial
planes.
Around 32 movements (landings and takeoffs)
per hour are possible on a commercial runway under optimal conditions. Airfield
activities are concerned with loading and unloading planes, maintenance and traffic
control. Their main objective is to entail services to aircrafts.

Runways and Taxiways

Airport infrastructure is acting as an imperative role in the growth of an economy.
Runways, taxiways, apron and terminals are the key areas in influencing the
functioning of airside management. These

Aerodrome Reference Code

Aerodrome reference code is selected for aerodrome-planning purposes in
accordance
with the characteristics of the aircraft for which an aerodrome facility is planned.
Airport Category Determination
Airport category is determined on the bases of maximum aircraft weight and type,
which is operating at the airport.
􀁺Runways: Runway is defined as a "rectangular area on a land aerodrome
prepared
for the landing and take-off aircraft". Runways and their associated taxiways are a
starting point for airport layout. Therefore, they have to be planned in relation
with other major operating elements such as passenger and cargo areas including
apron and buildings, vehicle parking, ground access and air traffic services, with
the basic purpose of supporting all parts of the system in balance. Runways are
categorized into:
􀂙Primary Runway, and
􀂙Secondary Runway
Primary runway is used in preference to others whenever conditions permit. 95
per cent of the aircraft take-off and land on the primary runway, whereas the
secondary runway is used as a replacement of primary runway. Runway basic
length, wingspan and wheel span of aircraft determines the aerodrome code.

Taxiway: Taxiway is defined as a "path on a land aerodrome established for

taxing the aircraft and intended to provide a link between one part of the
aerodrome and another", including:
Aircraft stand taxi lane: A portion of an apron designated as a taxiway and
intended to provide a thorough taxi route across the apron.
􀂙Apron Taxiway: A portion of a taxiway system located on an apron and
intended to provide a thorough taxi route across it.
􀂙Rapid Exit Taxiway: A taxiway connected to a runway at an acute angle and
designed to allow landing airplanes to turn off at higher speeds are achieved
on other exit taxiways thereby, minimizing runway occupancy times

AIR TRAFFIC ZONES:

Air traffic zone in aviation is a mass of limited airspace, normally around an airport,
which moves from the surface to a particular upper limit, put to save air traffic
operating to and from that airport.
This reveal that air traffic control at the airport is quite familiar with exactly which
aircraft are under that airspace, and can proceed to ensure aircraft are aware of
each
other, either utilising separation or by forwarding traffic information.
Some main key concepts are as follows:
1. Separation: Keeping a specified least distance between an aircraft and another
aircraft or terrain to save collisions, generally by needing aircraft to fly at set
levels or level bands, on set routes or in any directions, or by controlling an
aircraft's speed.
2. Clearance: Permission granted by ATC for an aircraft to move under some
conditions included under the clearance.
3. Traffic Information: Information provided by ATC on the position and, if
known, intentions of other aircraft likely to pose a hazard to flight.
4. Flight Rules: Aircraft may generally operate under Visual Flight Rules (VFR) or
Instrument Flight Rules (IFR).
APPROACH AREAS:

Following are the approach areas:

Customer-focused Approach Area:
Airports across the world are seeking to limit their reliance on aeronautical revenues
to generate resources to meet rising infrastructure demands. As a result, the market
is
witnessing greater focus on commercial revenues from “retailing, advertisements,
ground transport and property development to generate profits”. the trend is ensuing
in enhanced focus on customer-driven
profiles and the quality of airport facilities. Hence, multiple commercial opportunities
are being used to exploit the airports business and are viewed as more than air
service
providers.

Business Approach Area:

Airports are flattering profitable business enterprises based on the mounting
revenues
generated by non-aeronautical activities, in particular, Retailing, Car parking and
Catering. This trend is expected to create opportunities for airport management firms
and other companies keen on intensifying their businesses in the catchment areas of
airports. Currently, due to the demand from air carriers for the reduction of charges
and the aversion of governments to offer subsidies, airports can no longer rely
exclusively on aeronautical revenues to generate the resources needed for
infrastructural improvements. Therefore, to overcome this trend, airport professionals
are looking to boost the commercial revenues from retailers, advertisements, ground
transport and property development which offer a huge increase in the infrastructural
investments and even to directly generate profits

CONTEXT OF AIRPORT SYSTEM PLANNING

Planning is a systematic utilization of available resources in order to put in use
efficiently for better management. Airports are integral parts of the total air transport
system. The airport system planning is presented in flow chart form below:
Airport Planning System (APS) implies a broader perspective and encompasses in
the
development of airspace and Air Traffic Control (ATC) system and even the way in
which air services is provided. Further, it also addresses the financial pattern in
investing the navigational aids, ATC infrastructure, and aviation weather
monitoring/information system. APS
supports in the airport development to handle the rapidly increasing traffic levels. It
also extends to oversee the Airport Development Aid Program (ADAP)

Aims and Scope of Airport Planning System:

Coordination: It is an incessant and iterative process, which necessitates
coordination and support between Federal/State/Regional and local aviation
planning agencies.
National Interest: It should wrap the requirements of all sectors of civil aviation
and replicate a balance of their individual interests and the national need.
􀁺Economic and Social Objectives: The system plan should gaze ahead of
aviation
demand and infrastructure needs and consider economic/social objectives to be
advanced by commercial and private air transport.
􀁺Futuristic: ASP should portray current conditions and present a vision for
futuristic state, with the goals to be met in enumerating the criteria of success.
This would lay out a path of evolution from where we are to where we want to be.
􀁺Think Tool: ASP is used as a thinking tool, evaluating options via what ‘if’
scenarios. It should be useful in establishing and defending priorities and should
be corollary of business and marketing plans.

DEVELOPMENT OF AIRPORT PLANNING PROCESS:

Development of an airport master plan is recommended by ICAO, FAA, as the basis
for the comprehensive planning of individual airports. The major objective of master
plan is “to allow an orderly development compatible with the framework of local,
regional, national economic and transport plans with compiling national and
international aviation policies in protecting the environment aspects”. The process
should also inform public and private interest of aviation requirements, providing a
planning framework, which enables affected political entities to participate in the
planning and result in optimal use of land. It also demonstrates an airport’s
commitment to a sound business plan and so as to the airlines, to the users and to
its
contribution to the local and regional plans helping to remove uncertainties in the
community.
The Airport Master Plan presents the planners' conception of the definitive
development of a specific airport. It efficiently presents the research and logic form to
evolve and artfully display the plan in a graphic and written form. Master Plans are
applied to the modernization and expansion of existing airports and to the
construction
of new airports, regardless of their sizes or functional roles.
The master plan includes the phased physical planning of Airspace, airfield,
passenger
and cargo terminals, circulation, support and service facilities, ground access and
suitable disposition of these facilities. It also includes economic planning of capital
requirements and the associated costs/revenue streams together with a potential
mitigation measures. All these aspects of the planning follow forecasts of aviation
activity.
Airport Master Plan is used as a guide for the modernization and expansion of
existing
airports and to the construction of new airports. It comprises of suggested land use
on
land adjacent to the airport.

Steps in Preparing Airport Master Plan

General considerations:
(a) An airport master plan is only a guide for:
􀂍 Development of physical facilities of an airport
􀂍 Development of land uses for areas surrounding an airport.
􀂍 Determination of the environmental effects
􀂍 Establishment of access requirements of the airport
Types of Activity involved in the Master Plan Process:
(a) Policy/Co-ordinate Planning:
􀂍 Project Goals and Aims
􀂍 Develop work Programme, Schedules and Budget
􀂍 Prepare an Evaluation and Decision Format
􀂍 Establish Co-ordination and Monitoring Procedures
(b) Economic Planning:
􀂍 Study Analysis of Aviation Market features and Forecasts
􀂍 Determine the Economic and Social Benefits
􀂍 Study and Assessment of Area Economy
(c) Physical Planning Development:
􀂍 Air Space and ATC Provision
􀂍 Airfield Configuration (Including Approach Zones)
􀂍 Terminal Complex
(d) Environmental Planning:
􀂍 Prepare an Assessment of Natural Environment Conditions
(e) Financial Planning:
􀂍 Determine Airport Funding Source and Constraints
􀂍 Prepare a Financial Feasibility Study
Steps in the Planning Process:
(a) Prepare a Master Planning Work programme
(b) Inventory and Document Existing Condition
(c) Projection of Air Traffic Demand
Plan Update Recommendation:
(a) Master Plan or Specific elements should be reviewed annually
(b) Master Plan should be thoroughly evaluated and modified every year, if
changes in economic, operational, environmental and financial conditions
indicate an earlier need for such revision.

AIRLINE DECISIONS
In travel industry, many organizations use decision support systems to
improve decision making. In Airline Industry, companies even calculate the value of
passengers who will miss a connection because of a flight delay and they determine
the impact of booking the passenger on the next flight (Stair & Reynolds, 2013). In
aviation area, there are studies that has examined the aspects of decision making
processes such as airline profitability, revenue management, airline service quality
performance and so on (Bruce, 2016; Wu & Cheng, 2013; Hung & Chen, 2013). A
good example would be "the decision making based on passenger self-tagging."
Self-Service kiosks, web based check in and mobile boarding passes are actually a
part of a larger term which is known as the passenger self-tagging. Compared to
past, today airline companies offer more through web check-in and self-service
kiosk check-in. In addition to that, depending on the airline and/or flight passengers
can even enter their meal preferences by choosing one of the options or they can
simply pay for improvements in the service they will experience during the flight.
Check-ins are crucial since at check-in, the customer comes contact with the airline
for the first time on the journey. "It is here that perceptions of quality can be
communicated" (Edwards, 2005). A simplified passenger check-in procedures help
airline companies by saving time therefore reducing the costs and in the meantime
customers getting charged with extra fees depending on their luggage, therefore
reducing the number of baggage subject to handling (Gross & Schröder
Additionally, the airline self-service technologies are also very effective at minimising
company labour costs, occupancy of space, time and queues. On the contrary, the
studies have shown that customers often accept the use of self-service technologies
but they make customers anxious when the kiosks malfunction
Passenger Behavior

Passenger behaviour needs to be predicted before all else. Because if

passengers do not want to use self-service, there will be a problem. According to
Ueda & Kurahashi (2014) attaining higher cognition of self-service is a necessity
because reducing hesitation of passengers is possible by using lobby service agents
as they can urge passenger to use self-service kiosks.

Technology readiness is an important factor when it comes to prediction of

customer behaviour (Parasuraman, 2000). In their research, Lin & Hsieh (2006)
confirmed that the more satisfaction customers experience while using self-service
technologies, the more likely they are going to use it again and going to recommend
others. Therefore, firms need to understand the customer readiness to use self-
service technology services. Additionally, the role between customer and self-
service check-in kiosks must be assessed frequently so the effectiveness of IT
investment strategies can be calculated by the airline

OTHER AIRPORT OPERATIONS

Safety and security is an imperative role in all airport planning. Civil aviation
authorities must take appropriate initiative and must be vigilant to make safety a
priority. Among the most urgent safety issues are:
􀁺 Preventing Runway Incursions: Improve airport geometry to reduce the risk of
incursion caused by airport design.
􀁺 Design Standards: Ensuring that the airports must meet current design
standards,
which continue to play a major role in enhancing safety. Civil aviation authority
of a state should take care in overseeing the Runway Safety Areas (RSAs) at all
certificated airports in the country to reduce the risk of damage causing to
airplanes in the event of an under shoot, overshoot, or excursion from the runway.
􀁺 Improving Wildlife Hazard Management: The aviation losses worldwide
because
bird strikes are staggering in the last 40 years. Civil aviation authority should act
as a proactive role at the national and international level in addressing bird-strikes
and other wildlife hazards, as well as assisting individual airports in developing
wildlife hazard mitigation plans. The
greatest challenge to growth is to remain vigilant in safety oversight and instil a
culture of safety in airport management.