Airport and Airline Relationships

Airport and Airline Relationships

Airports have become market driven businesses which require business-oriented leadership and organization. There is a need for the development of a strategic plan for the organization through air service development, aeronautical fee management as well as commercial revenue maximization and the management and control of capital and operational programs. From the perspective of the airlines, the airport is a point along their route system where there is enplaning, deplaning and transferring of passengers, cargo and freight. Airlines usually necessitate specific facilities and services at each airport with varied and unique requirements as requested by different airlines (Lee, Lavanya, Jacquillat, 2018).

Airport and Airline Relationships
Airport and Airline Relationships

Airport operators need to ensure that the demands of the airlines are met with the available resources. There are rapidly changing specifics for different airlines and airports usually find themselves constantly changing and refurbishing their facilities to meet the demands of the airlines. There is diligence and caution needed as airports accommodate the demands of airlines in that they do not stretch themselves in and ensure that the landside facilities of the airport are utilized in an effective and efficient manner. Landside facilities can be seen as not important to the airlines but the way they are operated, they can hamper effective working of the airlines.

Airlines and airports have different perspectives but they truly have a collective objective of making the airport a successful and established economic venture. The relationship between airlines and airport is established though user agreements which essentially establish the circumstances and methodologies of establishing, calculating and collecting usage fees and charges. The agreements also establish the rights and privileges that air carriers have. There are other agreements that can be reached like gate leases where an airport leases a gate exclusively to an airline and this is very good if an airport wants to expand its services to other airlines and penetrate new markets. Gate leases can offer entrepreneurial opportunities for airports, where they can reach an agreement with airlines to develop terminals that will be used by the airline (Lee, Lavanya, Jacquillat, 2018).

Airports should be allowed the opportunity to seek better ways of revenue generation, attracting more flights as well as cutting down costs. This can be done through the privatization of some components of the airport business in partnership with the airlines. Airports and airlines are two components of a vast industry that have different tasks and duties but their objectives are intertwined. There is a need to spur growth in both of these parts of the aviation industry and, airports need to be managed in a manner that makes business sense, and makes the most returns.

References

Lee, J. & Lavanya M. & Jacquillat, A. (2018). Dynamic Airline Disruption Management under Airport Operating Uncertainty.

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