1.Discuss how airport charges can affect the airport-airline relationship.
2.Explain why airport security is one of the key concerns for airport management.
3.Compare and contrast an airport’s measurement of service and quality of service and discuss some of the ways that they can be managed.
4.Discuss why non-aeronautical revenue for airports is so important.
Introduction
Airport charges are mandatory and it plays an important role for betterment of airline and airport relation. This section covers the impact of airport charges on the relationship between airlines.
Body
The airport charges play a crucial role in developing airport-airline relationship. It helps in building safety growth of the international aviation by regulating all the safety measure in an economical and efficient way. It also promotes safety of airlines departing for air navigation. If airport charges are kept high some of the airlines can deny facilitating their services in that premises (Helmreich & Merritt, 2017). Thus, it can impact the overall relationship between the airlines and airport. Apart from that, it is required that airport provides guarantee bond payments and also pays the extra expenses of the airlines. This helps in building trust between airport- airlines relationships so that it can last longer (Orth, Frei & Weidmann, 2015). To maintain a healthy relation it is important that airport provide airlines with operational data, financial data, and innovative operating plans and give them the access to audit the airport finances. Thus the charges of airport should be reasonable or if it is kept high, extra benefits should be provided to the airlines (Qureshi, 2017). So, that they remain connected (Moulds & Lohmann, 2016). The lower financing cost by the airport is always enjoyed by the airlines. The airport charges are mostly increased when the passengers from that area are decreasing. Thus, increasing the fares help in earning good profit revenue. All the marketing, financial, operational and other factors influence the airline management (Yang & Fu, 2015). Thus, change in charges of airport will directly impact the relation between the airlines and airport.
Conclusion
The charges of airport directly affect the services and overall relation of airlines with airport.
It was found that increasing the fares will help in earning great profit but will influence airline management. It can be concluded that airport charges are used to build security system over the airport.
Airport security is one of the key concerns for airport management
Airport security is a key concern that promotes to maximize the security. The government authorities have also facilitated various ways in offering advance security for customers. This part covers the major reason why security is important in airport management.
It is true that airport security is one of the key concerns of airport management. As airport security covers the tools and ways that need to be used to protect the passengers, staff and airlines present at the airport from all the miss happenings and threats. Airport management should keep a very strong enforcement authority at the airport so that protection is controlled (Qureshi, 2017). Every airport is linked up with the local as well as international police departments so that culprit could be detected at the time of crime or threat. The security covers two components one is standardized screening which is compulsory to be undertaken by every passenger that enters the airport premises and also all the baggage and scanned to avoid the chances of risks (Kanki, 2017). Thus, it is important that high degree of safety measures should be undertaken so that risk is decreased. The airport security is the key concern as there are chances of transferring illegal weapons from one country to another (Yang & Fu, 2015). This could increase the chances of crime and attacks. Airport management should keep security as a key concern as mostly upper-middle class people travel from airways. It is necessary to fulfil their expectations by offering them high level of security (Skorupski & Uchro?ski, 2015). It is also necessary because poor security measure can risk the country by increasing the chances of terrorist attack (Pantouvakis & Renzi, 2016). Thus, airport management deals with the management of all the airports and airlines associated with it.
Conclusion
It can be concluded that security of airport is very important as it is classified into two sections one is standardized screening and other is baggage scanning to avoid the chances of risks.
Comparing airport’s measurement of service and quality of service
In this section service and quality of airport is measured and compared with other services. The motive of this comparison is to find ways through which overall quality of service can be improved.
Quality of services means offering additional services that will help the airport to bet the other competitors. The quality of service works on the motive to seek more customers (Lališ, Socha, Kraus, Nagy & Licu, 2018). Measurement of service covers the quality of service that is provided to the customers while there at the airport. It is important to improve the airport service quality so that process and operations go smoothly (Patankar & Taylor, 2017). Measurement of service is offering the list of services and facilities that is needed at the airport where as quality of service is used to improve the basic requirements. The quality of service helps in retaining the customers whereas measurement service is to capture customers.
Ways to improve the quality of service
The quality of service can be improved by building relationship with the customers so that they choose the airlines for lifetime travelling. The customers can be consistent by building trust and delivering the quality level of service (de Gramatica, Massacci,Shim, Turhan & Williams, 2017). The quality of service can also be improved by building various non-aeronautical activities at the airport so that customer’s satisfaction is achieved (Lališ, Socha, Kraus, Nagy & Licu, 2018). The ways through which quality of service could be provided is by developing technology so that process could be improved by making operations automatic. This helps in saving the overall time and making the process efficient. The airport design can also be improved by adding simplified directions and signs so that passengers do not get confused while finding their ways (Leese, 2016). The positive ambience and friendly staff at the airport helps in improving eth experience of people who are travelling (Lin & Zhang, 2017). Thus, the quality can be improved by aiming to make airports a place where passengers feel comfortable spending time.
Conclusion
It can be concluded that quality could be improved by building strong relations with the customers. It is also suggested that quality can be improved by building various non-aeronautical activities.
Importance of non-aeronautical revenue for airports
There are various factors through which revenue of the airport is affected. This topic discusses how non-aeronautical factors influences the overall cost of the airport. Thus, the answer outlines various ways through revenue and profit margin can be improved.
In the present trend, it is observed that constructing non-aeronautical services helps in boosting airport revenues. To increases the profit margins and the overall success of the airport non-aeronautical activities are undertaken (Diels & Schindler, 2016). The sources include rents that are gained from the shops at the airport, restaurants, newsstands and many more (Humphreys & Francis, 2016). Apart from the stores, revenue could be increased with the help of parking and airport access cost. Also, from that rental car operations present in or out the terminals also contribute in the revenue. The advertisement or promotion that is done on the airport walls are also the source of income for the airport income (Rony & Siddique, 2017). Thus, it can be concluded that non-aviation activities are becoming important for the airports. The performance of an airport is directly linked with the non-aviation activities. It is important due to increased competitors in the airlines the prices need to be kept low so that numbers of passengers are increased. As, the travelling cost is kept nominal the profit margin is earned using non-aeronautical activities (Albers, Baum, Auerbach & Delfmann, 2017). The other reason behind this is, the profit margins from non-aeronautical sector are comparatively high. Therefore, having a high non-aviation share is an attractive figure for managers and investors in the airport management (Graham, 2016). Some of the ways to improve the quality of service can be achieved by increasing the sources of non-aeronautical revenue for airports.
Conclusion
From the above discussion, it was found that non-aeronautical activities promote to enhance profit. It can be concluded that, due to increasing competition it is difficult to manage the profit margins. Thus, non-aeronautical activities are used to increase the overall profit.
References
Albers, S., Baum, H., Auerbach, S., & Delfmann, W. (2017). Strategic management in the aviation industry. Routledge.
de Gramatica, M., Massacci, F., Shim, W., Turhan, U., & Williams, J. (2017). Agency Problems and Airport Security: Quantitative and Qualitative Evidence on the Impact of Security Training. Risk Analysis, 37(2), 372-395.
Diels, E. A., & Schindler, C. (2016). Early Morning Concurrent Session: Aviation Management and Operations: Presentation: Analysis of Factors Related to True Airspeed (TAS) Calculation Utilizing the Handicap Procedure for the 2015 Women’s Air Race Classic.
Graham, A. (2016). Airport strategies to gain competitive advantage. In Airport Competition (pp. 109-122). Routledge.
Helmreich, R. L., & Merritt, A. C. (2017). Culture at work in aviation and medicine: National, organizational and professional influences. Routledge.
Humphreys, I., & Francis, G. (2016). The airport–airline relationship. Air Transport Management: An international perspective, 95.
Kanki, B. G. (2017). Aviation information management: From documents to data. Routledge.
Lališ, A., Socha, V., Kraus, J., Nagy, I., & Licu, A. (2018, March). Conditional and unconditional safety performance forecasts for aviation predictive risk management. In 2018 IEEE Aerospace Conference. IEEE.
Leese, M. (2016). Governing airport security between the market and the public good. Criminology & Criminal Justice, 16(2), 158-175.
Lin, M. H., & Zhang, Y. (2017). Hub-airport congestion pricing and capacity investment. Transportation Research Part B: Methodological, 101, 89-106.
Moulds, J., & Lohmann, G. (2016). An analysis of future trends in non-aeronautical revenue: A case study from Adelaide Airport. Journal of Airport Management, 10(4), 343-358.
Orth, H., Frei, O., & Weidmann, U. (2015). Effects of non-aeronautical activities at airports on the public transport access system: A case study of Zurich Airport. Journal of Air Transport Management, 42, 37-46.
Pantouvakis, A., & Renzi, M. F. (2016). Exploring different nationality perceptions of airport service quality. Journal of Air Transport Management, 52, 90-98.
Patankar, M. S., & Taylor, J. C. (2017). Risk management and error reduction in aviation maintenance. Routledge.
Qureshi. S. (2017). Winning Strategies For Delivering Quality Customer Service At Airport. Retrieved from https://www.customerservice.ae/winning-strategies-for-delivering-quality-customer-service-at-airports.
Rony, H. A. Z., & Siddique, N. A. (2017). An Explorative Study on the Factors Influencing Aviation Education in Bangladesh.
Skorupski, J., & Uchro?ski, P. (2015). A fuzzy model for evaluating airport security screeners’ work. Journal of Air Transport Management, 48, 42-51.
Yang, H., & Fu, X. (2015). A comparison of price-cap and light-handed airport regulation with demand uncertainty. Transportation Research Part B: Methodological, 73, 122-132.
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