EUROPE
STATE – of – ART
REPORT
FINAL VERSION
June, 2013, Budapest
Europe State – of – Art Report
1
EUROPE STATE – OF – ART
REPORT
FINAL VERSION
June, 2013, Budapest
Europe State – of – Art Report
2
Partnership Agreement between Lead Partner and Partners of “airLED: Local economic
development in airport catchment areas” - project No 4CE485P4
CENTRAL EUROPE PROJECT
Report authors:
Gábor Albert
János Berényi
Nóra Fejes
Viktor Serbán
Miklós Siska
Editing:
Miklós Siska
Drawings:
Viktor Serbán
Gáborné Török
Data sources:
see Sources and Annexes
Report done by:
KTI Institute for Transport Sciences Nonprofit Ltd.
Europe State – of – Art Report
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TABLE OF CONTENT
I.
EXECUTIVE SUMMARY..................................................................................................................... 6
II.
INTRODUCTION, AIRPORT CITY CONCEPT ....................................................................................... 7
II.1.
The role of the STATE-OF-ART REPORT in the airLED project ............................................... 13
II.2.
Key output requirements and scope of the State-of-Art Report .......................................... 15
III.
AIRPORTS AND AIRPORT REGIONS IN EUROPE ......................................................................... 16
III.1. General geographical overview of airports in Europe and interdependencies of air traffic
and socio-economic situation of airport zones ................................................................................. 16
III.2.
Passenger traffic of airports in Europe .................................................................................. 28
III.3.
Cargo traffic of airports in Europe ......................................................................................... 34
III.4.
Air traffic and ownership of airports in Europe..................................................................... 37
IV.
MARKET CHALLENGES FACING AIRPORTS ................................................................................. 40
IV.1.
Competition as a new driver of the changes of the airports ................................................ 40
IV.2
Reassessing market power .................................................................................................... 45
V.
AIRPORT DEVELOPMENT ............................................................................................................... 52
V.1.
Detailed analysis of selected European airport regions ........................................................ 52
V.1.1
Munich Airport .............................................................................................................. 55
V.1.2.
Zurich Airport ................................................................................................................ 57
V.1.3.
Vienna Airport ............................................................................................................... 59
V.1.4.
Prague Airport ............................................................................................................... 62
V.1.5.
Cologne-Bonn Airport.................................................................................................... 64
V.1.6.
Brussels South Charleroi Airport ................................................................................... 67
V.1.7.
Basel - Mulhouse Airport ............................................................................................... 69
V.1.8.
Bratislava Airport ........................................................................................................... 72
V.1.9.
Leipzig/Halle Airport ...................................................................................................... 74
V.2.
Key success factors for airport development ........................................................................ 76
V.3.
Key success factors for airport generated local and regional economic development ........ 77
V.4.
On and off-site airport development concepts ..................................................................... 79
VI.
VI.1.
CONCLUSIONS ........................................................................................................................... 81
Airport development criteria ................................................................................................ 81
Europe State – of – Art Report
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VI.2.
Airport impacts on surrounding regions ............................................................................... 83
VI.3.
Airport city: a dream or realistic ambition? .......................................................................... 84
SOURCES AND ANNEXES ....................................................................................................................... 85
Europe State – of – Art Report
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I.
EXECUTIVE SUMMARY
The airport city concept was developed in the USA by Dr. Kasarda considering
the facts that airports are never static, they are constantly evolving in form and
function. Most airports have developed significant non-aeronautical facilities,
services and revenue streams in addition to their core aeronautical infrastructure
and services.
In our study, in chapter 2 we present the theory and some doubts regarding its’
future, not only regarding on the future of airport cities but on the whole air traffic
business.
In chapter 3 we describe the European aeronautical market. Statistics of
passenger and cargo traffic, shares and structures of more than 500 European
airports is presented
We also try to summarize the recent developments of the European aviation
market with a focus mainly on the possibilities and challenges faced by the
airports. We also present some solutions appeared in the last years in Europe in
chapter 4.
Chapter 5 presents the main basic data and information regarding 9 different
European airports: their geographical and socio-economical situation, revenue
and EBIT, possibilities of development as they comment in their own annual
reports.
Finally we draw up some recommendations and conclusions regarding the
strategic development plans of European regional airports, with a focus on the
possibilities to their development as “Airport cities”.
Europe State – of – Art Report
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II. INTRODUCTION, AIRPORT CITY CONCEPT
To enable the project partners of airLED1 and other the future users of the output
documents of this project it is important to understand the current situation of airports
in Europe and especially in the Central-European region. It is very important to clarify
the idea and the real appearance of Airport Cities in the closer and wider
geographical “catchment area” of our project.
First of all it should be understood: what does “Airport City” mean, and what makes
an airport city different from other airports or other cities?
The concept was published more than several decades ago in the USA, by John
Kasarda. He is professor of management and director of the Kenan Institute of
Private Enterprise at the University of North Carolina’s Kenan-Flagler Business
School. He advises airports and government officials around the world on Airport City
and Aerotropolis development.
The concept was formed and developed during the time and regarding on the
evolution of airport cities in 2008. In this paper Dr. Kasarda summarized the concept
as follows2:
“Airports like cities are never static. They are constantly evolving in form and function.
Historically, airports have been understood as places where aircraft operate,
including runways, control towers, terminals, hangers and other facilities which
directly serve aircraft, passengers and cargo. This traditional understanding is giving
way to much broader, more encompassing concept known as the Airport City which
has became the 21st century way forward for many airports.
The Airport City model is grounded in the fact that in addition to their core
aeronautical infrastructure and services, major airports have developed significant
non-aeronautical facilities, services and revenue streams. At the same time they are
extending their commercial reach and economic impact well beyond airport
boundaries.
Airport Metamorphosis
Airport terminals are fast becoming luxurious shopping malls and artistic and
recreational venues. No longer restricted to magazine shops, fast food outlets, and
1
2
For more details please visit our website on www.airLED.eu
John D. Kasarda: Airport Cities: The Evolution; Chapter 1 (London: Insight Media, 2008)
Europe State – of – Art Report
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duty free, they now feature brand name boutiques, specialty retail, and upscale
restaurants along with entertainment and cultural attractions. Hong Kong
International, for instance, hosts more than 30 highend designer clothing shops.
Singapore Changi offers cinemas, saunas, and a tropical butterfly forest, while Las
Vegas McCarran has a museum and Amsterdam Schiphol a Dutch Master’s art
gallery.
Others doing things differently include Frankfurt – which has the world’s largest
airport clinic serving over 36,000 patients yearly – and Detroit Metro whose swank
420 room Westin Hotel is located just off its main terminal concourse as is Dallas Ft.
Worth’s Grand Hyatt hotel which serves as a fly-in virtual corporate headquarters for
many U.S. businesses. Beijing Capital Airport’s tenants include banks while
Stockholm Arlanda’s intensively utilised chapel conducted nearly 500 weddings in
2007. Most major airports, of course, are diversifying, expanding, and upgrading their
retail offerings, often incorporating shopping streets, gallerias, gourmet and culinary
clusters, and arts, entertainment, and cultural zones. These are being complemented
by local themed merchandise and dining outlets.
Given the significantly higher incomes of airline passengers (typically three to five
times higher than national averages) and the huge volumes of passengers flowing
through the terminals (up to 85 million annually compared to 8-12 million annually for
a large mall), it is not surprising that major airport retail sales per square metre
average three to four times greater than shopping malls and downtown shops. As a
result, their terminal commercial lease rates tend to be the highest in the metropolitan
area. In addition to incorporating a variety of commercial and entertainment venues
into passenger terminals, airports are developing their landside areas with hospitality
clusters, office and retail complexes, conference and exhibition centres, logistics and
free trade zones and facilities for processing time-sensitive goods.
Revenues from such developments are being reinforced by major financial streams
from advertising and parking. Consequently, many airports now receive greater
percentages of their revenues from non-aeronautical sources than from aeronautical
sources (e.g., landing fees, gate leases, passenger service charges). For some, such
as Atlanta, Dallas, Hong Kong and Schiphol, non-aeronautical activities contribute
approximately two-thirds of total airport revenues. These non-aeronautical revenues
have become critical to airports meeting their facility modernisation and aeronautical
infrastructure expansion needs, along with their being cost-competitive in attracting
and retaining airlines.
Since non-aeronautical revenue flows are rising and relatively predictable (i.e., they
are not as sensitive to business cycles in general), there is emerging interest in
securitizing them for major up-front airport capital infusions. This, together with airport
Europe State – of – Art Report
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monopoly or oligopoly position in major markets have made them favourite venture
targets of investment firms such as the Blackstone Group and McQuarie Bank, who
typically upgrade and expand airport commercial development to meet both user and
shareholder expectations. Such rapid expansion of airport-centric commercial
development is making today’s gateways leading urban growth generators as they
become significant employment, shopping, trading, business meeting , entertainment
and leisure destinations in their own right. These airports, in fact, are taking on many
features of metropolitan central business districts, increasingly operating as regional
and national points of multimodal surface transportation convergence and
commercial development. This evolution in function and form has essentially
transformed numerous city airports into airport cities.
Airport City Drivers
Airport Cities have evolved with different spatial forms predicated on available land
and ground transportation infrastructure, yet virtually all emerged in response to four
basic drivers:
1. Airports need to create new non-aeronautical revenue sources, both to
compete and to better serve their traditional aviation functions.
2. The commercial sector’s pursuit of affordable, accessible land.
3. Increased gateway passengers and cargo traffic generated by airports.
4. Airports serving as a catalyst and magnet for landside business development.”
The idea is worldwide accepted and accordingly used in the different development
projects and strategies of the airports not only in the USA, but on other continents as
well. The airport city could be considered as the physical internet that connect the
worldwide supply chains, the tourism nodes, places for face-to-face businesses and
fast-shipping needs of different types of business together. It connects a metro region
to the global economy, especially flows of time-sensitive products such as
microelectronics, pharmaceuticals, aerospace equipment, medical instruments, and
high-value perishables. The airport and its immediate environments are central nodes
in such national and global movements.
In this context the different activities at and around the airport should be
distinguished from one another. Güller and Güller 3 provide a useful framework for
classifying aeronautical and non-aeronautical activities. They describe three
categories of activities based on the extent to which they are related to air traffic:
 core aeronautical activities are part of the technical operation of the airport,
directly supporting the air traffic function;
3
Mathis and Michael Güller. From Airport to Airport City. Airports Region Conference, Barcelona
Spain, 2001.
Europe State – of – Art Report
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

airport-related activities have a direct relation to air-freight or air-passenger
movements, (e.g., logistics and distribution activities or terminal retail and
hotels). Their competitiveness and/or business revenues are closely tied to the
scale of air traffic;
airport-oriented activities choose the airport area because of the image of the
airport and its typically excellent ground accessibility. The price of land and
surface connectivity, rather than relation to air traffic, are key the factors in
determining those activities locating in the airport area.
Dr. Kasarda adds to this that “along with air traffic patterns, surface connectivity, and
land price, the nature of the local market (industrial structure and nearby resident
population commercial demands) play a role in the nature of airport-area
development and activities taking place. So do airport boundaries. Those airports
with limited developable land will see substantial airport-related and airport-oriented
commercial development taking place outside the fence. The boundaries of
numerous airports were established many decades ago, well before they assumed
significant commercial and competitive development roles. Yet ,just as urban
development did not stop at the political boundaries of metropolitan area central
cities, so airport-dependent development will not stop at the formal boundaries of
airports. Moreover, since airports areas are attracting businesses, workers, and
residents at a heightened pace (e.g., in the U.S., research has shown that
employment growth near airports has been growing considerably faster than the
metropolitan suburban area in which the airport is located), airport area commercial
development reflects employee and resident needs in terms of incidental services.
These include housing, recreation, food services, retail, health, child day care,
veterinary services, et cetera that growing numbers of airport and airports-linked
business employees desire (or even require). Often these needs are being provided
in large mixed-use (commercial/residential) developments in the airport region.
Hence, many airport areas have also become metropolitan population growth
nodes.”4
During the last decade the concept and real life examples have further evolved, and
nowadays professionals and researchers of the field speak about the “aerotropolis”.
As more and more aviation-oriented businesses were being drawn to airport cities
and along transportation corridors radiating from them, a new urban form has
emerged stretching up to 30 kilometres outward from some airports. Analogous in
shape to the traditional metropolis made up of a central city and its rings of
commuter-heavy suburbs, the Aerotropolis consists of an airport city and outlying
corridors and clusters of aviation-linked businesses and associated residential
development.
4
John D. Kasarda: Airport Cities: The Evolution; Chapter 1 (London: Insight Media, 2008)
Europe State – of – Art Report
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Dr. Kasarda also believes that “although most aerotropolis development to date has
been organic, spontaneous and haphazard – often spawning congestion and
environmental problems – in the future it can be markedly improved through strategic
infrastructure and urban planning.
 Dedicated airport expressway links (aerolanes) and airport express trains
(aerotrains) should efficiently connect airports to major regional business and
residential concentrations.
 Special truck-only lanes should be added to airport expressways, as should
improved interchanges to reduce congestion.
 Time-cost accessibility between key nodes should be the primary aerotropolis
planning metric rather than distance.
 Businesses should be steered to locate in proximity to the airport based on
their frequency of use, further reducing traffic while improving time-cost access.
 Airport area goods-processing activities (manufacturing, warehousing, trucking)
should be spatially segregated from white-collar service facilities and airport
passenger flows.
 Noise and emission-sensitive commercial and residential developments
should be sited outside high-intensity flight paths.
 Cluster rather than strip development should be encouraged along airport
transportation corridors with sufficient green space between clusters.
 Form-based codes should establish general design standards for airport area
buildings, walkways, travel lanes, landscaping, and public space.
 Place-making and way-finding enhanced by thematic architectural features,
public art, and iconic structures should make aerotropolis developments
interpretable, navigable, and welcoming.
 Mixed-use residential/commercial communities housing airport area workers
and frequent air travellers should be developed with easy commutes and
designed to human scale providing local services and sense of neighbourhood.
In short, aerotropolis development and sustainable "smart growth" can and should go
hand-in-hand.”5
But there are some doubts regarding Dr. Kasarda’s concept as well, which can’t be
ignored in the context of the airLED project as well. First of all the sustainability of air
transport in its present form should be considered, especially since it is completely
dependent on fossil fuels. The most severe consequence of this is whether the air
traffic could be maintained the as a business-as-usual functioning, as the petroleum
reserves of the earth are not inexhaustible. There is no airport without air traffic. The
aerotropolis development concept implies that air transport undergoes a radical
change in technology over the next 50 years.
5
John D. Kasarda: The Way Forward; Global Airport Cities; Insight Media, 2010
Europe State – of – Art Report
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The second doubt regards the concentration of those infrastructures around the
aerotropolis which are not unique to air transport. The aerotropolis concept
represents a concentration of high-value assets and the aerotropolis also would
become a hub for other critical infrastructure such as rail and road transport.
Therefore the aerotropolis is a much broader area for security risk than one airport
alone. The same observation could be applied to any conglomerations of
infrastructure that are equally exposed to security threats.
Last but not least there are doubts whether air transport has become a driver of economic
activity and trade at all, and thereby will it replace other components of international
economic development. Some researchers presume that the aerotropolis could be a major
partner in the development of an airport catchment area rather than a substitute for other
inputs into these systems, such as maritime, road and rail transport.6
6
Airport futures: Towards a critique of the aerotropolis model by Michael B. Charles, Paul Barnes,
Neal Ryan, Julia Clayton; http://www.sciencedirect.com/science/article/pii/S0016328707000699
Europe State – of – Art Report
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II.1.
The role of the STATE-OF-ART REPORT in the airLED project
As business markets become national and international in scale, airports and their
adjacent areas are increasingly being viewed as catalysts for local economic
development. Their ability to generate jobs and attract new business is being used in
many locations as a justification for public investments in new construction and
expansion in and around airports. Anticipation of new business activity also calls for
appropriate spatial planning. Yet few types of economic development have been as
poorly predicted and implemented as development around airports. Airports are often
located in poorer areas of the region, and because of the nuisance generated by the
aircrafts the situation tends not to improve. Hence economic development in the
vicinity of an airport has both economic and social impacts.
There is a massive amount of literature on the subject that mostly aims at quantifying
the economic impacts. However, there is no satisfying model that aims at analysing
various aspects of and interests linked to spatial and economic development. From a
local authority perspective, knowing the scope of investments and financial frames is
useful as it helps them to justify their involvement. However, in order to know how to
best accompany development processes, a qualitative analysis is more useful than a
quantitative one.
Integrated economic development linked to airports poses a major challenge.
Ambition to achieve this calls for the functional division of tasks and scope of
responsibility between cities and settlements in the vicinity of airports, and also the
strengthened cooperation between various stakeholders, such as municipalities,
development agencies and private companies.
The vision behind airLED project builds on the ongoing policy reflection with regards
to the ‘Airport City’ concept, advocating the importance of appropriately planned
airport-area development. In the frame of this concept, an Airport City is
characterised by all the functions of a modern metropolitan centre being located on
and immediately around major airport sites. It may entail arterial spines and clusters
of aviation-linked and also other businesses with systematically planned transport
connections radiating outwards up to 20 km from the airport.
The airLED project focuses on the economic development of catchment areas
around airports, taking into account the direct, indirect and induced impacts of airport
activities (both existing or expanding airports), all in the frame of polycentric territorial
cooperation and governance. This means that the project aims primarily at enhancing
the cooperation between public authorities and bodies concerned and having a stake
Europe State – of – Art Report
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in the economic development of areas surrounding a given airport. The project
partner expressed this goal in the Application Form as follows:
“The purpose of …'Regional and EU state-of-art' … is to set the scene
by gaining deeper insight into European trends as regards Airport City
development…(to achieve this it is needed) Desk research on sites with
'Airport City' characteristics, also synthesise outcome of EU reflections on
project topics so far, utilising the knowledge and experience of associated
partner such as ARC. Overview on what has been achieved in Europe."7
This study aims to present and provide an evaluation of the situation in the European
airport market, taking stock of the new tendencies, the new challenges airports and
surrounding regions face and the possible answers to these challenges.
The regional airports have a special status in the European air traffic. They are not
big enough to be unavoidable but on the other hand they are big enough to influence
their narrower and broader regions: both in terms of social and economic
development. Therefore is it indispensable to study the solutions – with both good or
bad results – of European regional airports, whether these answers are efficient or
whether it is necessary to find new solutions.
On the basis of some European examples every project partner of airLED is able to situate
their individual position in Central Europe and to create a vision on the future development of
their airport catchment areas. The study tries to give some general methodological approach
for investigating an individual situation hence they are different from airport region to airport
region, with all their unique characteristics and similarities as well.
7
Application Form of „airLED” project, page 41.
Europe State – of – Art Report
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II.2.
Key output requirements and scope of the State-of-Art Report
The State-of-Art Report concentrates on the following key factors of the various
airports of Europe:
 geographical situation of regional airports
 economic situation of regional airports (as business units)
 possible special role of regional airports in a liberalized air traffic market
 relations between efficient regional airports and the development of their
catchment areas
The EU State-of-Art report did not aim to discuss all of the questions and aspects
which appear in the literature. It concentrates on some basic points which are
indispensable to perform an analysis of the concrete situation of regional airports in
Central Europe. First of all the current situation of airports, in terms of their markets,
spatial development possibilities and relations with the stakeholders was evaluated.
As a second point of view the different possibilities of a regional airport and its
catchment area was considered whether what benefit the presence of the airport has
on it’s the narrower and broader region. Finally it a number of solutions and
strategies of airports and airport regions in Europe is discussed that made airports
and surrounding developments a success.
To achieve these goals statistical data of the European Union, annual reports of
airports and maps showing the geographical situation of selected airports, their
linkage to the central business district of the city and infrastructure and businesses
close to the airport were used. The aim was to demonstrate relations between
passenger and freight movements, issues of connectivity, the revenue structure and
profitability of airports also because airports are not only well concentrated points of
economic activity but – in a certain scale – own assets of the municipality they belong
to.
In the study there were used different statistical databases (Eurostat, ACI etc.), a large
number of publications appeared in the last decades (mainly on internet). On this basis we
elaborated several maps and tables in order to show the interrelations between airport
performance and it’s socio-economic background (population, GDP, structure of economy,
distance to CBD etc.) In this analysis we used the passenger and freight transport data of
around 70-75 airports and their NUTS3 level indicators depending the geographical location
of each airport8. In some cases there are more than one airport in one NUTS3 level region, in
this cases we merged the same socio-economic indicator to all airports of the region. We
didn’t aggregate the traffic data of these airports because they could be of different
characteristics (airport city or not, large passenger hub or mainly cargo base).
8
The list of airports and their NUTS3 regions see in the Annex; due to the different availability of
regional data in some analysis we couldn't use data of Italian airports
Europe State – of – Art Report
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III. AIRPORTS AND AIRPORT REGIONS IN EUROPE
III.1.
General geographical overview of airports in Europe and interdependencies of
air traffic and socio-economic situation of airport zones
The starting point of the analysis was an overview of the basic statistical data
available on European airports in order to understand which of them are or could be
considered as airport cities or aerotropolises already and which have the highest
potential to become one in the future. The focus of the analysis was the data
regarding the passenger flows, the commercial movements of aircrafts and air-freight
transport indices.
Aerotropolises and airport cities in Europe, 2012
1. figure
Europe State – of – Art Report
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Dr. Kasarda publishes every year the list and the status of the aerotropolises and
airport cities in the word9. The recent list includes 45 operational aerotropolises and
airport cities, of which 12 are located in Europe. In our continent there are 8 of the 39
aerotropolises and airport cities in developing status. The operational European
airport cities and aerotropolises are situated mainly in the central areas of the
continent while the developing ones are located in the peripheral zones. (The map of
1. figure doesn’t include Moscow!)
The operational airport cities and aerotropolises are situated in the most developed
areas of Europe. It should be remarked that the developments of airport cities or
aerotropolises begun in those regions as well, which regions had the most
possibilities of economic development in the early 2000. Unfortunately some of them
have had to suffer the consequences of the crisis, e.g.: Budapest Liszt Ferenc
Airport.
In the database of the EUROSTAT there are around 660 European airports included
of which there are published figures available on 510 airports, like passenger,
commercial movements and air cargo flows (in tonnes). Most of them are small, local
airports with moderate passenger flows and few destinations served (see: 2. figure),
only 314 facilities are major airports, which serve over 100 thousand passengers
yearly.
9
http://www.aerotropolis.com/files/2013_AerotropolisStatus.pdf
Europe State – of – Art Report
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Major airports in Central Europe
2. figure
Nevertheless the location of the main Central European airports is in quite strong
correlation with the economic development of the region 10 (data on NUTS3 level),
(see: 9. figure) independently from the distances between them within the country.
Also the more dense populated and more developed regions generate a significant
higher demand for air traffic services, both passenger and freight and as a
consequence there are more international or regional airports operating.
(In this chapter we will use two basic statistical coefficients: the
correlation coefficient – R – and the determination coefficient – R2 –.
The correlation coefficient shows the power of the stochastic
relationship between two different statistical variables. The value of the
correlation coefficient can be between -1 and +1. If the value of the
correlation coefficient is equal to 0, it means that there is no stochastic
interdependency between the two variables. If the absolute value of the
10
Source of figures 2-3: Eurostat regional yearbook 2012, European Commission;
http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-HA-12-001/EN/KS-HA-12-001-EN.PDF
Europe State – of – Art Report
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coefficient is 1, it means that there is functional relationship between
the two variables. In technical issues the values over 0,9 show strong
relationship, in socio-economic issues the values over 0,7 show strong
relationship. If the value is minus it means that the relationship is
reciprocal: the larger is one variable the smaller is the other.
The determination coefficient is the square of the correlation coefficient.
The values of a statistical variable can vary around the mean value of
the variable and the determination coefficient shows those percentage
of this variation which can be explained by the variation of the values of
the independent variable.)
We have analyzed the linkage between the air traffic (both passenger and freight) of
each airport and the average population, the GDP, the share of services in the GDP
and the employment in the NUTS3 region of the airport. Although there are quite
considerable differences between the sizes (territorial and as regards on population)
of the NUTS3 regions, it was possible to show this correlation between these factors.
The source of every data is the EUROSTAT Database 11 : the air traffic includes
passengers on board, and freight loaded and unloaded on each airport, GDP is
calculated on current market prices and in PPS (Purchasing Power Standard) etc. as
it is indicated in the database.
We have found that there are positive, but generally only medium strong correlations
between the air passenger traffic or air freight transport (as dependent variables) and
these independent variables. The most relevant indicator of them is the volume of
GDP followed by the number of employed persons and the population of the NUTS3
region of the airport. The relations between these variables are the strongest in case
of those airports which are not considered as airport cities or aerotropilises. It is very
interesting that the correlations between these variables and the number of
passengers or the air cargo volume are much weaker if we classify the airports by air
passenger number or freight volume.
For example the correlation between the amount of GDP in current market prices and
passenger traffic is almost 0,61 so the variation of this variable can explain more than
37% of the differences between the airports. It is very interesting, that there is
significant difference between the group of aerotropolises and airport cities and the
rest of the airports. In case of aerotropolises and airport cities (see 3. figure) the
correlation is only 0,32 meanwhile in case of the rests of airports (see 4. figure) this
ratio is almost 0,69. With other words: only 10% of air passenger traffic deviations
could be explained by the differences of GDP of each NUTS3 region in case of the
11
http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database
Europe State – of – Art Report
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airport cities and aerotropolises meanwhile almost the half (47%) of the differences of
the other airport’s air passenger traffic could be explained with this factor.
Correlations between different socio-economic indicators and air passenger
traffic/air cargo traffic volume, 2010
1. table
Population
GDP
GDP
(2)*
GDP
PPS
GDP
PPS
(2)*
Service
Service Employ(2)*
ment
GDP
per
capita
GDP per
capita
(PPS)
Correlation, airports
over 10 million pax.
0,1923
0,3479
0,0801
-0,0594
0,0057
0,2430
0,3701
0,2632
0,3186
-0,1084
Correlation, airports
below 10 million pax.
0,2470
0,2803
0,5000
0,1086
0,3443
0,2169
0,2466
0,3433
0,0134
-0,1971
Correlation, airport
city
-0,0183
0,3205
0,0477
-0,0840
-0,2122
0,3670
0,4873
0,0345
0,3131
-0,0592
Correlation, others
0,6307
0,6883
0,1609
0,3990
0,1102
0,3215
0,1541
0,6963
0,3335
0,0396
Correlation, total
0,4266
0,6094
0,2526
0,3148
0,0902
0,3799
0,3157
0,5274
0,4478
0,1109
*Correlation between indicator and air cargo volume
Among the airport cities and aerotropolises the air passenger (0,37) and cargo (0,49)
volume show medium strong correlation with the share of services in the GDP of the
NUTS3 region. It is not surprising hence this type of airport development supposes
the needs of this type of economy in the neighbourhood of those airports.
The relation between the amount of GDP or the level of GDP/persons don’t explain
very much of the differences of air passenger traffic volume if we classify the regions
and their airports by the number of traveller. In case of smaller airports even there
couldn’t be find correlation between the number of air passengers and the economic
development level of the region. In this case only the GDP volume and the air cargo
volume show some considerable correlation in the group of smaller airports.
Europe State – of – Art Report
20
Relation between passenger traffic and GDP, airport cities and aerotropolises
3. figure
Most airport cities and aerotropolises are developed near to the largest air traffic
hubs, they serve not only the population of the closer region but other regions as
well.
Relation between passenger traffic and GDP, other airports
4. figure
Europe State – of – Art Report
21
Nevertheless the air passenger traffic in case of aerotropolises and airport cities the
higher correlation can be demonstrated with the share of services in the GDP of each
NUTS3 region (see 5. figure).
Relation between passenger traffic and share of services in GDP, airport cities
and aerotropolises
5. figure
In case of the rest of airports the strongest correlation can be stated with the number
of employed persons (see 6. figure).
Europe State – of – Art Report
22
Relation between passenger traffic and employment, other airports
6. figure
We have studied the relationship between the economic growth and the air
passenger traffic growth in Europe as well. Due to the fact that in the Eurostat
database there are GDP growth data available only on NUTS2 level we merged first
the different, before mentioned European airport’s growth rates to their NUTS2 level.
Unfortunately economic growth rate data are available only until 2010 therefore we
were not able to include the last years’ tendencies in the study. So we realized the
calculations with the figures between 2007-2010. The correlation we obtained is
practical zero! It means that the changes in economic performance of the different
regions of Europe had no stochastic functional influence on the development of the
air passenger traffic of their airports (see 7. figure)! With other words: it is more
important the level of the economic performance of a region than the dynamism of
the economy!
Europe State – of – Art Report
23
Relation between economic growth and air traffic changes in Europe 2007-2010
7. figure
There is no functional relation between GDP and air traffic growth!
R² = 0.0131
50.0%
40.0%
30.0%
20.0%
10.0%
-20.0%
-15.0%
-10.0%
0.0%
-5.0%
0.0%
-10.0%
5.0%
10.0%
15.0%
20.0%
25.0%
-20.0%
-30.0%
air traffic, y/y
Linear (air traffic, y/y)
We also have studied whether are differences between the groups of smaller and
larger airports, or regional airports and airport cities or not. It is very important that
there are no differences between these groups: in every case the dynamism of the air
traffic volume of a region is independent from the changes of their economic growth.
For example in case of the airport cities in Europe the determination coefficient is
only 0,02! (see: 8. figure)
Europe State – of – Art Report
24
Relation between economic growth and air traffic changes in Europe 2007-2010
8. figure
There is no functional relation between GDP and air traffic growth!
Airport cities
R² = 0.0209
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
-15.0%
-10.0%
-5.0%
0.0%
0.0%
-2.0%
5.0%
10.0%
15.0%
20.0%
-4.0%
-6.0%
-8.0%
air traffic, y/y
Linear (air traffic, y/y)
The density of airports shows correlation with the share of R+D activity and the
characteristic (urban or rural) of the regions as well (see: 10. figure).
The urban areas and the R+D activity centres need more air traffic relation as other
regions due to higher incomes, higher movement activity rates both regarding on
business activities and holidays.
The higher income level of the population, the more important role of “contact
intensive” activities, like R+D, multinational companies’ headquarters, large
universities need and at the same time can finance the relative quick air traffic in
these regions.
Europe State – of – Art Report
25
Some air traffic generating factors in Europe, I
9. figure
GDP/inhabitants (PPS); EU27=100%
Inhabitants/km2; EU27=100%
Also the relative high density of airports can offer good connections between
destinations of larger distances when travellers can visit the other city within one day
without spending the night in the other place. The travel cost could be even smaller
then a night in a hotel and the meetings can be arranged at the airports without any
time loss of the travellers. On the other hand the density of airport offers good
connections for people to other cities for visit them within a weekend contributing by
this way to the development of city tourism as well.
Europe State – of – Art Report
26
Some air traffic generating factors in Europe, II
10. figure
Human resources in science and
Urban-rural typology for NUTS3
technology (% of the active population)
level
Europe State – of – Art Report
27
III.2.
Passenger traffic of airports in Europe
The Airport Council International Europe (ACI-EUROPE12), the European division of
the worldwide international organization of airports classifies the airports in 4
categories in one of their publications13:
 small regional airport have less than 5 million passengers/year,
 regional airports have 5 – 10 million passengers/year,
 secondary hubs have 10 – 25 million passengers/year and
 major hubs have more than 25 million passengers/year.
Of all European airports which have communicated data to EUROSTAT
 38,3% had less than 100.000 passengers in 2010;
 28,1% of the airports served 100.000-1,000.000 passengers in this year;
 21,6% of the airports had 1 – 5 million passengers and
 only 12,0% of the airports had more than 5 million passengers.
In other words: in Europe 88,0% of airports are small regional airports.
From the perspective of passenger traffic the data shows that
 6,1% of all the European airports are regional airports;
 another 3,9% of the European airports are secondary hubs and
 only 2,0% of the European airports are major hubs.
The 2nd table lists airports that are the biggest hubs in Europe. Some of them are
intercontinental hubs and some of them play “only” European-wide hub functions.
The average share of European passengers at those airports which have more than
100.000 passengers annually was 73,0% in 2010 (46,4 intra-EU international and
26,6% national passengers). At the biggest intercontinental hubs, notably in London
Heathrow, Paris Charles de Gaulle, Frankfurt am Main and Amsterdam Schiphol, this
share was less than 60%, although they handle the largest intra-European traffic as
well. In Europe there were only 13 airports where the non-EU member states’ citizens
represent a share above 40%. The remaining of these airports the connection
represents only a few special destinations and therefore this share could been less
than 60%.
12
ACI EUROPE represents over 450 airports in 46 European countries, which handle 90% of
commercial air traffic in Europe, more than 1,5 billion passengers each year; www.aci-europe.org
13 An Outlook for Europe’s Airports, Facing the Challenges of the 21th Century; ACI-EUROPE 2010
Europe State – of – Art Report
28
TOP 10 European airports’ passenger and cargo traffic, 2010
2. table
City / Airport
LONDON – HEATHROW
PARIS – CHARLES DE GAULLE
FRANKFURT – MAIN
MADRID – BARAJAS
AMSTERDAM – SCHIPHOL
ROMA – FIUMICINO
MUNCHEN
LONDON – GATWICK
BARCELONA
PARIS – ORLY
Passengers (thousands)
European
share of
Total
destinations
Europe
66 015
30 975
46,9%
59 001
31 589
53,5%
53 283
29 502
55,4%
49 831
37 399
75,1%
45 287
27 797
61,4%
36 720
27 692
75,4%
34 796
26 594
76,4%
31 407
23 075
73,5%
29 198
25 221
86,4%
25 568
19 010
74,4%
All these proportions show that the air traffic is very concentrated on a few locations.
There are only 30 airports in Europe which have more than 10 million passengers in
a year, but these airports served the 58,2% of all the 660 million passengers who
travelled between the European airports in this year. The 2. table shows the number
of arrivals to the larger airports of Europe. The main air passenger flows can be very
well observed: one part of the traffic is generated by those people who are flying to
the main holiday destinations of the Mediterranean region, the other large number of
persons travel because of business to the main business centres of the so called
“growth banana” regions, which are situated between London, Hamburg North of Italy
and North of Spain (see: 11. figure) And last but not least there is considerable air
traffic flow between the centres of Europe and the metropolises located in the
peripheral regions of Europe, like Moscow, St. Petersburg, Helsinki or Istanbul.
Europe State – of – Art Report
29
Main air passenger connections in Europe in 2010
11. figure
In some smaller airports almost the total of passengers (97 – 100%) are from the EU
(4 airports in France, 3 in Spain, 2 in Norway and 1–1 in Denmark, Greece, Portugal
and Sweden). Those airports also have a very special local importance, as they are
connected just with only 1–2 destinations and – except of Stockholm-Bromma airport
– have less than 1 million passengers in a year.
The remaining 301 airports European airports, which have more than 100.000
passengers in terms of intra-European traffic, served between 60-97% of the total
number of passengers in European destinations (see 12. figure).
Europe State – of – Art Report
30
Number of airports by intra-European traffic, 2010
12. figure
The “best connected” airports of Europe (TOP12) are listed below in 3. table.
TOP 12 European airports by number of connected airports, 2010
3. table
City / Airport
LONDON – GATWICK
AMSTERDAM – SCHIPHOL
PARIS – CHARLES DE GAULLE
LONDON – STANSTED
FRANKFURT AM MAIN
MUNCHEN
MADRID – BARAJAS
ROMA – FIUMICINO
BARCELONA
PALMA DE MALLORCA
LONDON – HEATHROW
DUBLIN
Europe State – of – Art Report
passengers
(thousand) intra –
European Union
31 407
45 287
59 001
18 586
53 283
34 796
49 831
36 720
29 198
21 080
66 015
18 427
connected
airports,
unit
96
93
90
90
89
86
75
73
70
64
60
60
31
The remaining 302 airports are connected to less than 60 other airports, most of
them (149 airports, 47,5% of the total number of European airports) have connection
to 10 other cities as a maximum.
In large countries like Norway, Sweden and Finland there are large distances
between cities and the air-traffic is the natural solution for long distance journeys.
Therefore in these countries one or more local hubs (like Helsinki) emerged, serving
the small other national airports that are also connected with other airports too. But
these hubs are mainly of local importance although they could serve some
intercontinental destinations as well.
In other large countries like Germany, France or the United Kingdom there are real
intercontinental hubs which play a regional role as well. But in these countries – aside
from these big intercontinental hubs – there are real regional hubs too, which are
connected with a large number of other cities in the country or in the larger
geographical region (e.g. Stuttgart, or Düsseldorf).
Number of airports by yearly flight operations, 2010
13. figure
The Mediterranean holiday destinations are also well connected within Europe,
mainly during the peak vacation season. Therefore in these countries there are some
airports with a large number of passengers that have limited regional importance
(from the point of view of the terrestrial traffic to other destinations within the country),
Europe State – of – Art Report
32
only the destination gives them a special significance, like the Greek holiday islands
(e.g. Corfu, Santorini etc.)
Not only the number of passengers and the destinations but the number of
operations is very concentrated. 66,7% of the majority of airports, have less than
20.000 operations (landing and take-off together) in a year. This means that the
mean figure for daily operations is less than 55. On the other end of the list are the
major hubs (2,5% of the total) that serve more than 550 landings and take-offs every
day. (see Number of airports by yearly flight operations, 2010
13.)
Also the frequency of the connections shows high concentration. The majority (66,0%)
of airports have generally less than 2,5 flights/day to the different destinations, only
4,0% of airports have more than 5 flights as an average to each of other airports. (14.
figure)
Number of European airports by connection intensity (flight/destination/year),
2010
14. figure
number of airports
Connection intensity
90
80
70
60
50
40
30
20
10
0
600
1,200
1,800
2,400
3,000
3,600
4,200
4,800
max. flight/destination/year
Connection intensity
Europe State – of – Art Report
33
III.3.
Cargo traffic of airports in Europe
The main air traffic hubs in Europe are not only the largest passenger air traffic hubs
but the largest air cargo centres as well. It can be stated that within the top 30
airports, the majority, 24 airports belong to the top 30 airports, both in terms of
passenger and cargo traffic handled. These 30 airports operate almost 9/10 part
(89,9%) of the total freight transport of all the European airports: in total 12,7 million
tons! At the same time these airports serve 56,9% of all the passengers (almost 725
million people) who are landing or leaving in European airports.
The dataset of Eurostat reveals, that air cargo traffic is dedicated mainly to
intercontinental transport, because the European destinations represent a much
smaller share, only 15,3% of the service (calculated by tons) compared to the
passenger traffic. The top 10 airports in air cargo transport are as follows (4. table):
Cargo traffic at the main European airports, 2010
4. table
City
Frankfurt
Amsterdam
London
Leipzig
Cologne
Liege
Luxembourg
Istanbul
Milan
Madrid
Airport
FRA
AMS
LHR
LEJ
CGN
LGG
LUX
IST
MXP
MAD
Total
freight
2 133 330
1 523 805
1 484 487
743 980
726 250
674 360
656 653
498 047
440 258
393 431
of which
Europe
232 491
111 940
78 163
293 189
245 780
110 629
61 363
42 662
12 442
31 489
share of
Europe
10,9%
7,3%
5,3%
39,4%
33,8%
16,4%
9,3%
8,6%
2,8%
8,0%
It is also interesting that some smaller airports, like Leipzig, Cologne and perhaps
Liege, are more focused on intra-European air cargo than the average airport in
Europe in spite of the fact that they also serve a higher share of intercontinental
transport as well.
Comparing the quantity of goods transported by air and the persons travelling by air
reveals a considerable difference: while there are a lot of passengers between the
large hubs of Europe and the Mediterranean area, the air cargo traffic is not too
important in these relations (see Main air cargo connections in Europe, 2010
Europe State – of – Art Report
34
15. figure).
But the transport of goods and mail is much more significant between the
key airports of Europe and the peripheral airports which are situated mainly in the
former Soviet Union.
Main air cargo connections in Europe, 2010
15. figure
Also it has to be highlighted that although generally the largest hubs are the most
important both in terms of passenger and cargo traffic, there are some airports which
play a decisive role only in terms of cargo traffic (see: Passenger and air cargo
traffic at some European airports, 2010
5. table). E.g. Liège has about 300 thousand passengers in a year but handles almost
675 thousand tons of cargo in a year. The situation is very similar in Luxembourg, in
Leipzig or in London East Middlands airport too. Moderate passenger traffic
combined with considerable cargo traffic: cargo traffic is the key although passenger
traffic is also important.
Europe State – of – Art Report
35
Passenger and air cargo traffic at some European airports, 2010
5. table
City
Airport
Passengers
(arriving and
departing), persons;
2011
Cargo (loaded
and unloaded),
tons; 2011
Leipzig
LEJ
2 263 668
743 980
Cologne
CGN
9 623 398
726 250
Liège
LGG
305 281
674 360
Luxembourg
LUX
1 790 791
656 653
London, East Midlands
EMA
4 259 816
266 498
Milan
BGY
8 416 961
112 249
Europe State – of – Art Report
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III.4.
Air traffic and ownership of airports in Europe
The ACI EUROPE publicised a study regarding on the ownership of the European
airports. The study analyses the data of 403 airports. These airports served more
than 1.336 million passengers in 201014. Most of these airports – more than 85% of
them – are totally or in major part public owned (see 16. figure). Only 8,7% (35
airports) are completely private. These totally privatized airports serve 13,8% of
passengers and 15,4% of freight traffic in Europe. The completely or in major part
public owned airports serve the 71,5% of passengers and 72,8% of air cargo.
Majority of airports are mainly public owned but the largest airports are mainly private
or totally private owned
16. figure
Share of airports by owners, passengers and freight
transport, 2010
100%
80%
60%
40%
20%
0%
Airports
Passengers
Freight
Public Part of admin.
Public Corporatised
Mixed private-public Public majority
Mixed private-public Public minority
Private Fully privatised
We analysed also whether are there considerable differences between the structure
of ownership of airports between the EU and non EU states. In France, Greece are
several airports part of the public administration meanwhile in the non-EU member
states only few of them although in some countries the only one airport is part of the
public administration (Belarus and Moldavia).Both in the EU members and in the nonEU member countries only 1 of 5 airports are completely or in major part private
owned. But the difference is considerable if we analyse the share of passengers
served in mostly private owned airports: Istanbul Atatürk Airport, Zürich Airport,
Moscow Domodedovo Airport and Antalya Airport are mostly private owned and they
14In
the different databases (Eurostat and ACI EUROPE) we have find data only of 238 airports of
them, or their passenger traffic were less than 100 thousand persons in 2010.
Europe State – of – Art Report
37
represent around 40% of the non-EU airport's passenger traffic. This share in case of
the mostly private owned airports is only about 25%.
The shape is different if we classify the airports by the passenger volume (see 17.
figure). The airports, which serve more than 10 million persons yearly, none of them
belong formally to the public administration meanwhile 6% of the smaller airports are
part of the public administration formally as well. Almost 1/3 part of the larger airports
are totally or in major part private meanwhile only 1/6 part of the smaller airports
belong mainly to the private sector. Due to this phenomenon more than 30% of the
passengers of large airports take off in mostly private owned airports but only 20% of
passengers of smaller airports use the services of private enterprises.
The private sector is more dominant in the larger airports, small airports are
public
17. figure
Share of passengers and airports by ownership of airport,
2010
Part of adm.
Corp. public
Public
Public majority
Public minority
airport
passenger
airport
passenger
airport
passenger
airport
passenger
airport
passenger
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Fully privatised
Mixed private-public
Private
Ownership of airport operator/passengers
100 000
1 000 000
5 000 000
10 000 000
15 000 000
If we are analysing that airports which have less than 5 million passengers in a year,
the dominance of the public ownership is more characteristic. Only 15% of them are
mainly private owned and they serve only less than 13% of the passengers of this
small airports. Part of these smaller airports serves mainly those public transport
needs in outer regions of Finland, Norway or Sweden which couldn't be satisfied
more effective with train or coach. In case of islands (Greece, Portugal, Spain) also
could be better to serve transport needs with aircrafts as with other way. But the rest
of small airports in France, Germany, Italy and in the United Kingdom have to
compete with other transport modes
Europe State – of – Art Report
38
Also the recent ACI yearly reports state that those airports which have less than 5
million passengers in a year are not profitable (see 18. figure), they cannot cover
their cost by their revenues15. The study was elaborated on the basis of economic
and financial results of 213 European airports which supported the work. These
airports represent 72,4% (1.362 million passengers) of total European air passenger
traffic in 2011.
Share of loss-making airports below 5 million passengers in 2011
18. figure
Airport is a high level capital intensive activity where the time of return of investment
– due to large construction works – is very large and these investments can’t be
extended or demolished in small steps. It could be one of the raisons why the smaller
airports are, or remained in public ownership. Therefore is very important to study the
particularities of the small regional airports whether have any speciality to offer to
enable them to convert to a profitable airport operation.
To find new financial sources for the smaller airports is even more crucial as these
airports which typically have less than 1 million passengers in a year cannot even
cover their operating costs from this revenue. The airports which have 1 – 5 million
passengers in a year also cannot finance all their costs, mainly the capital costs of
the airport, meanwhile the fixed cost are more than 80% of the total airport costs and
of which more than 30% are capital costs!
15
E.g. ACI EUROPE Economics Report 2012; https://www.aci-europe.org/policy/positionpapers.html?view=group&group=1&id=6
Europe State – of – Art Report
39
IV. MARKET CHALLENGES FACING AIRPORTS
IV.1.
Competition as a new driver of the changes of the airports
The ACI EUROPE ordered a study which was published last year regarding on the
situation of the competition of the airports in Europe. The short version of the
information captured in the study highlights the following facts. 16 (In this complete
chapter we summarize the main findings of the study.)
One of the conclusions of the study is, that “European policy makers and regulators
have yet properly to appreciate the extent of the changes that have taken place. This
is partly a matter of catching up with a still fast moving market but it is also because
the data have not been brought together in a comprehensive way at the European
level…”
The airports in Europe, but in other places of the world have double character: on
one hand these are fundamentally local businesses, on the other hand they
represent the most strategic key assets for the communities they serve. This
business cannot be moved to a better location if the demand decreases, all they can
do is aim to make their geographical position better, more competitive and more
attractive as their competing airports.
Due to the capital intensive nature of the function of airports, fixed costs represent a
large proportion: first of all the maintenance and replacement costs of infrastructure,
but also the extensive regulatory obligations in areas such as security, fire fighting
and airfield safety are not cheap either. But the most crucial loss for an airport is
when an airline ceases operations at that place. An airport cannot reduce its costs
correspondingly because this large infrastructure cannot be changed (in small) step
by step: the airport cannot shut down half a runway or lease its terminal for another
airport.
To lose every unit of traffic means not only that it will miss out the aeronautical
revenues from airport charges, but it also means loses on the non-aeronautical
revenue side as well, revenues from business areas such as shopping, food and
beverage, car parking and so on, as a result of the decreasing number of passengers
16
Martin Hvidt Thelle, Torben Thorø Pedersen and Frederik Harhoff: Airport Competition in Europe,
Copenhagen Economics, June, 2012 - ACI-EUROPE
Europe State – of – Art Report
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using its facilities. It should not be forgotten that today non-aeronautical revenues
account for almost half of airports’ incomes in the case of a large number of airports.
Lost revenues conspire to create an intense competitive pressure on airport business.
Therefore a good volume of passengers travelling through an airport is vital for
survival and financial sustainability. It is a natural incentive for the airport to seek to
enlarge its catchment area.
Airports, like any businesses, want to minimise their exposure to revenue loss. What
can be done in such a situation? What is the best way they can do that? There are a
lot of different solutions: roll up its sleeves, collect regional economic data, aim for
traffic incentives, introduce competitive (low) airport charges and work on marketing,
go out and get more clients. The good solutions vary airport by airport: focus on a
special activity like cargo, offer special services to passengers or to airlines or work
together with the shareholders (municipalities use to be shareholders of airports) and
offer not only airport services but attract investors to the surrounding area by special
spatial development policies.
Nevertheless European airports increasingly find that when they do that, they face
tough competition from their peers in what is now an expanded airport market. The
competitive pressures within the air transport sector have been underlined by broader
consumer empowerment thanks to the internet and better surface access links. In
other words: airports have a natural incentive to provide the best deal possible and
most efficient infrastructure if they want to attract passengers and airlines and avoid
those painful financial losses as consequence of large traffic losses. But the reality
today is that airports can and do lose costumers. In the nowadays liberalized market
the airlines and their passengers have far more choice when considering which
airport to use. When airports lose a customer, the nature of airport economics
ensures that the impact is extremely painful.
The scope of the changes, which have been realized on the aviation market over the
last twenty years, the deregulation of airline markets included, made airline business
models more focussed on the costs. In the meantime the technological developments
achieved have increased the operational flexibilities of airlines as well as the
information and choice available to passengers. Airports became more commercially
focussed entities, often privately owned or run at arm’s-length from government.
Twenty years ago, before the liberalization process, European airports were still
operated in an environment where national and state-owned airlines were strictly
regulated, with limited freedom to compete across borders. There were only a few
exceptions. Very much has been changed since then, with the liberalisation and
extension of the European aviation market. In a way this could be one of the clearest
Europe State – of – Art Report
41
success stories of a single European market. It has to be considered that this fierce
airline competition for passengers has implications for airports too.
The former beneficiaries of the regulated airport and airline market must now
compete with each other for passengers and airlines and these have now
significantly more choice than in the past. Even therefore the airports have had to
become more commercially focussed. The result of these changes is a more
competitive and dynamic airport market. However, airports are still too often regarded
as monopoly infrastructure providers. But the commercial reality is evidently very
different.
The competitive pressures on airports, resulting of the changes described above,
have to be seen in the context of the economic nature of those businesses. A large
part of airport costs are fix costs, partly a result of investment in infrastructure but
also because of associated operating costs. The bigger part of costs on safety and
security vary little with scale of traffic. This gives airports a natural incentive to attract
traffic to defray those costs, an incentive which has been accentuated by the growing
importance of commercial revenues. This transformed the whole concept of the
structure of airport’s infrastructure (buildings, roads etc.) setting up from airport retail
spaces or car creating large parking areas, which activities and the revenue
originating of those business now almost are as important overall as aeronautical
revenues. Airports are indeed two-sided businesses, engaging in a commercial
relationship with both airlines and passengers.
The profitability of an airport is therefore crucially dependent on traffic volume.
Revenues – air traffic, airport service and commercial related – increase in proportion
to passenger numbers while airport’s costs increase more slowly because of the high
fixed cost element. Airports therefore have to respond to increased passenger and
airline choice by competing to both retain and attract traffic, although they cannot
forget about cost reduction.
In many cases most airports cannot achieve the needed scale of passengers despite
their geographical position, which may confer some advantage relative to consumers
who live nearest the airport, they can attract only those people who live very close to
the airport. As a result, the competition will play out amongst the increasing number
of those passengers who have a choice between airports and amongst the airlines,
the latter now free to fly between any two points in Europe.
As a consequence of all above, airport behaviour is constrained by the presence of
competing airports and by the willingness of sufficient passengers and airlines to take
their business elsewhere if price or quality is not satisfactory. Although this sensitivity
of consumers to changes in price or quality, and any associated assessment of
Europe State – of – Art Report
42
market power, will vary from airport to airport there is substantial evidence that the
competitive pressures on airports generally are increasing, with a disciplining effect
on their behaviour.
The study has tested the strength of – and trends in – the competitive constraints on
airports using empirical data and models for the European aviation market and as a
result they were identifying three main changes driving competitive constraints on
airports:



more footloose airlines,
more choice for passengers and
more active responses from other airports.
Footloose airlines and passenger choice
Airlines are making use of the freedom they have to fly between European airports
and they have become more footloose, both able and willing to switch away from
airports if conditions are not right. Analysing all scheduled airline capacity in Europe
between 2002 and 2011 the research shows a high degree of switching by airlines as
follows:




Many routes open and close: around 2,500 new routes were opened in 2011
while 2,000 were closed (an increase in both cases around 500 over the data
of 2002).
A high degree of churn: the new line openings were around 20% of the total
stock of routes while some 15% of existing routes were closed every year.
Route closures mean durable traffic loss: because the lost traffic is not
usually readily replaced when routes close. In particularly where the airport
has been dependent on a single carrier to operate a route it is or could be an
enormous problem. Even where multiple carriers have operated a route the
withdrawal of one usually leads to a continuing traffic loss for many years
because of timetable variations, because passenger’s behaviour etc. As a
result of all these variations the airport’s profitability suffers.
Bases and hubs: nowadays airlines do not only open and close individual
routes but also open and close bases – or vary their size – at individual
airports. Such changes in airport bases have even greater impacts on airports
than the gradual and continuous modifications of routes. Although only few
hub and base closures occur in an average year, airports should to be ready
to compete both to defend existing base and hub operations but also to win
additional based aircraft. The problem is that the market is not boundless
therefore as a consequence if somebody attracts route(s) or base(s)
somebody else (one or more airports) is/are losing them.
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Airport responses
It can be stated that Europe’s airports are now more commercially focussed. Their ownership
structure and as a consequence their management has also been transformed over the last
few decades. During this period in total 80% of Europe’s airports have been reorganized as
corporations. Most publicly owned airports now operate as commercial entities although only
at arm’s-length from government. But private ownership is also a common feature of the
largest airports: nearly half of European passenger journeys now start at an airport that is
fully or partly owned by private shareholders. Therefore is not surprising that airports now
undertake greater marketing and route development activities as ever: 96% of all European
airports, small or large, are actively marketing their airports to airlines in order to capture as
large share of the market as possible . There is evidence of an increased marketing
spending as well. Airports have also, through incentive schemes and targeted investments,
sought to differentiate their products, so as to cater for different airline types. New airports
have also entered the market. There were 81 more airports in Europe with commercial jet
services in 2008 than in 1996. And, there have also been significant increases in capacity on
existing airports. This shows evidence that airports both spur competition and respond to it in
a market where customers have choice.
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IV.2
Reassessing market power
These above described phenomena demonstrate the increased flexibility of today’s
airline business models. That flexibility is particularly apparent among point-to-point
carriers but the growing trend towards consolidation of hub carriers is giving them
more choice than in the past as to where to base their capacity. These findings of the
mentioned study are also consistent with the publicly declared policies of many
airlines. Perfectly understandably, they seek to optimise the profitability of their
networks and are prepared to move their aircraft to do so. This proven willingness to
switch means that the threat of switching has a credibility which gives such airlines a
degree of buyer power relative to airports which is emphasised where they account
for a high proportion of an airport’s overall traffic. At 8 out of 10 of Europe’s top 250
airports the largest resident carrier delivers more than 40% of capacity.
Nowadays passengers have more choice than in the past. With the rapid
development in new routes, a large proportion of today’s passengers have a choice
between two or more airports. It can be demonstrated that the degree of choice now
available to passengers and how it has increased over recent years. This choice is
apparently certified in the following phenomenon:
 A large geographic overlap: Nearly two-thirds (63%) of European citizens
are within two hours’ drive of at least two airports. This gives significant scope
for airports to compete for passengers.
 More choice for local departing passengers: The increase in the number of
routes means that an increasing number of passengers can find a comparable
service at a nearby airport: on average around half of European airports’ local
departing passengers on intra-European routes have a choice of more than
one reasonably attractive substitute airport for their chosen route, and that
choice has increased significantly since 2002. The choice for departing
passengers has increased at all of the ten largest European airports.
 More choice for transfer passengers: between 2002 and 2011, the share of
transfer passengers with a realistic transfer alternative increased from 57% to
63%. In addition, the share of transfer passengers having the option of at least
one direct alternative increased since 2002.
 More price-sensitive and better informed passengers: Not only
passengers are becoming more price sensitive, in large part due to the
internet but the most price sensitive passenger segment, namely leisure traffic,
has grown the most. This means that, the market is overall more price
sensitive than even a few years ago.
 Destination switching: The greater share of leisure travel increases the
scope for destination switching as holiday makers and airlines are willing to
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switch one destination for another. As a result, resort airports in Spain, for
example, are in competition with airports in Greece or Italy. City break
alternatives also compete with one another.
The combination of these factors suggests that passengers have both a significant
and increasing degree of choice over which airport to fly from; and informed by easily
accessible information on the internet represents a competitive constraint on
European airports which increasingly have to make themselves attractive to
passengers.
Challenging the old presumption about market power
In the mentioned study five indicators were applied to assess the strength of
identified competitive constraints, namely:
 local departure market share;
 transfer market share,
 hosting multi-hub airlines;
 buyer power of larger carrier;
 inbound leisure share.
Applying these indicators to the data for 2011 across the 250 largest airports in
Europe the study shows that a majority of airports in all size categories are affected
by at least one of these constraints, and in many cases by several competitive
constraints with a cumulative impact on market power. The researchers found that
these constraints were increasing, and market power therefore weakening across the
board. This applies to all categories of airport, with many of the largest airports
subject to significant competition for transfer passengers as well as to airline buyer
power deriving from choice of hub by multi-hub carriers. Amongst smaller airports,
constraints emanate more from passenger departure choice and airline buyer power,
as well as, in some cases, destination switching.
It was also stated that airports of all sizes and categories are therefore subject to
many competitive constraints, increasing over time; and the cumulative impact these
competitive constraints is likely to be significant in many cases. While this cannot
amount to a determinative view on the market power possessed by European
airports the researcher stated that there is sufficient evidence to challenge the old
presumption of airports having significant market power. Rather, the starting point as
elsewhere in the economy should be that the existence of market power needs to be
proved rather than assumed.
On the basis of the analysis the researcher have concluded the following two
recommendations:
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

Economic regulation of airports should be avoided in areas where
competition is already effective. Retaining regulation in these circumstances is
likely to distort behaviours and outcomes to the detriment of customers; and
Economic regulation of airports should also be rethought in areas where
competition has yet sufficiently to develop to take more account of the
competitive constraints that already exist and the potential for competition to
develop further in line with current trends. There is a strong case for the
regulator standing back and allowing the commercial parties to negotiate
commercial outcomes subject only to limited regulatory recourse.
New business models on the airport market as answers to new challenges
In the last ten years from the enlarging process of the Union, the European citizens
have enjoyed the benefits of the growing trade and tourism connections between all
the regions of the continent. These benefits were also the results of the liberalisation
processes of the EU air-traffic market. But this process has a result the changing
business model in the air transport as well.
Governments are not willing to finance the airports’ infrastructure anymore and the
airline companies can get unrestricted to the Europe-wide airport network. So the
airports have evolved from being mere infrastructure providers – solely or mostly
dependent on public subsidies – to self financing, diversified and competitive
business enterprises.
On the other hand the crisis, which started in 2008 and with more or less intensity still
remains today, had a result that there were fewer and more dominant airline groups
on the market which could take decisions very quickly on launching or closing a new
airline service in a certain airport. This position is further supported by the fact, that
two-third of the European population have 2 or more airports at disposal within 2
hour driving distance from their residential neighbourhood. This competition will
increase also because the European airports aim to attract a growing share of the
passengers from the fast developing countries of the world too.
These competitive pressures mean that the business transformation of airports will
continue in the near future and therefore new business models will emerge. Each
airport is striving to leverage its unique market position and increase its economic
and operational efficiency.
Airports have become business in their own right and this fact has allowed them to
act as competitive driver for local and regional economic growth. The airport
operators employ 156 thousand people directly but in total 1.200 thousand
employees work on the airport sites. And for every 1.000 airport onsite jobs there are
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around 2.100 indirect jobs supported nationally. It means that these airport-related
jobs contribute €59 billion to the European GDP17.
As airport charges paid by airlines and passengers do not cover the cost of the
infrastructure they use, other revenue sources had to be found and developed.
European airports have thus become extremely efficient in generating revenues from
an array of non-aeronautical activities such as retail, restaurants and bars, parking,
conference centres, real estate, consulting, etc. These activities play an increasing
role in financing the modernisation and expansion of airport facilities. They currently
account for almost 50% of airport revenues, rising above 70% in some cases.
This development means that the airport business in Europe operates just in the
same way as other competitive concerns – winning customers and delivering a return
for shareholders, be they private or public, through operational and economic
efficiency although more than ¾ part of the European airports are publicly owned but
the society needs to invest the public sources also in a more profitable way.
Within Europe the crisis has accelerated the airline consolidation for network airlines,
but also for low cost carriers (LCC). This is likely to result in significant route network
concentration around 5 major airline groups, with the low cost segment becoming
dominant for intra-European traffic – and more prone than ever to move aircraft and
crews in search of the best market location. Overall, much fewer airlines for the
existing 500 European airports mean that like any other business, there will be
winners and losers at the end. Against this background, new airport business models
are emerging in Europe, away from the traditional ones:
 the hub airport,
 the regional spoke/hub destination airport
 and the leisure/low cost airport.
While they are not mutually exclusive, these new models involve tailor-made
approaches to leverage each airport’s unique market position and strengths. This
increasing specialisation reflects the need for each airport to secure their competitive
advantage over others through diversification and innovation.
The ACI classifies the different business models for airports18 by their level between
of established and emerging as follows:
 Airport network: co-ordinated airport group at national and/or regional level
(e.g.: AENA – Spain, LFV – Sweden, PPL – Poland, Manchester Airport Group
– UK)
17
18
An Outlook for Europe’s Airports, Facing the Challenges of the 21th Century; ACI-EUROPE 2010
An Outlook for Europe’s Airports, Facing the Challenges of the 21th Century; ACI-EUROPE 2010
Europe State – of – Art Report
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






Alliance anchor hub: hub where the major airline alliance groups connect (e.g.:
London Heathrow, Paris Charles de Gaulle, Frankfurt am Main)
Airport city: airport that provides all major services of a city, without leaving the
site (e.g.: Munich, Zurich)
Multi-modal port: airport city with strong intermodal connections (e.g.:
Amsterdam – Schiphol)
Airport as final destination: airport that provides a retail/service centre for their
own community (e.g.: Athens)
Business traffic: airport that tailors to business traffic (scheduled and/or nonscheduled) (e.g.: London City, Farnborough, Le Bourget)
“Low Cost” Base: airport which focuses on low cost airlines (e.g.: Bergamo,
Charleroi, London Stansted)
Freight platform: airport specifically catering to the needs of freight operations
(e.g.: Liege, Leipzig)
Other important fact is that today airports are not only instrumental in boosting
tourism but they act as a magnet for the establishment of new business. The
immediate proximity of a well-connected airport remains one of the top criteria for
company location. It also helps attracting skilled labour and facilitates economic
transformation. Moreover, for the islands and outermost regions of Europe airports
are the lifeline. It is therefore no surprise that airports have developed into economic
communities in their own right.
Around large hub airports these economic communities are now called Airport Cities,
reflecting the fact that these airports are economic engines comparable to the
metropolitan area they serve. Airport Cities have become a destination for business,
shopping and leisure, based on multi-faceted development. They are the new global
transportation and business centres of the 21th century.
Similarly, smaller airports have developed into dynamic micro-economies. Reflecting
their specialisation and niche market positioning in segments such as cargo,
business aviation or low cost point-to-point services, they have attracted warehouses,
business complexes, leisure activities and hotels to service and complement their
core business. In time many of these niche airports will evolve into larger ones, with
even broader activity and income bases.
The new models represent a changing role of airports in the employment too. The
airport offers the possibility to create now business and new jobs multiplying the
number of business, services and employees. In the European airports are 156
thousand people employed as direct operators of the airports (e.g.: in airport
management, maintenance, security etc.) while around 748 thousand people work for
airlines or handling agents at airports (e.g.: flight crew, check-in staff, maintenance
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crew etc.). But other 308 thousand people work on-site at airports in retail shops,
restaurants, hotels and nearly 314 thousand people are employed in the civil
aerospace sector (manufacture of aircraft systems, frames and engines etc.)
Only some examples:
 Paris Charles de Gaulle Airport (as an alliance anchor hub) offers about 90
thousand direct jobs on and around the airport and other 270 thousand indirect
or inferred jobs in the Roissy employment basin.
 Amsterdam Schiphol Airport (as a multi-modal port) represent nearly 2% of the
hole Dutch GDP and will increase up to 2,8% in 2015 attracting freight
companies and manufacturers who need the speedy delivery times for their
own businesses.
 Munich Airport (as a real airport city) is the second largest company of Bavaria
and is expecting 41 thousand employees by 2020.
Not only big hubs offer a lot of indirect and inferred employment but airports of all
sizes, even smaller regional airports like Birmingham International Airport, or
Gothenburg Airport.
On the other hand: not only airports but carriers are changing. In the liberalised
aviation market airlines have complete freedom to base an aircraft in any country or
fly between any two airports in EU. As a result new airlines business models have
emerged, fully reaping the benefits of a single aviation market. These so-called
“Point-to-Point Carriers” offer direct connections between two cities, whereas
traditional “network carriers” primarily operate in a hub-and-spoke system.
One key feature of Point-to-Point Carriers, such as Ryanair, easyJet or Sky-Europe is
their flexibility to open and close new routes. If the conditions at one airport are not
satisfactory to the airline or if the route is unprofitable, it may flexibly redeploy their
aircraft (often at short notice) to another airport with a better offer. Route openings
and closings (i.e. airline switching) respectively account for cca. 20% and 15% of the
market. In 2011 alone, cca. 2500 new routes were opened, while cca. 2000 routes
were closed. Is should be noted that also network carriers such as Lufthansa or Air
France increasingly offer point-to-point operations from secondary airports, such as
Marseille, Lyon, Nantes, Hamburg, Düsseldorf and others.
As a result of this market development, Point-to-Point operations represent a very
substantial share of the traffic at European airports. At airports with traffic of less than
10 million passengers a year, these carriers even represent the majority of traffic. 84%
of those airports which have more than 1 million passengers in a year cater for an
airline which comprises more than 40% of the airport’s capacity. In total 74% of intraEuropean routes are served by single carriers.
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On average, after the closure of a unique route (i.e. a route served by 1 airline) only
47% of the original capacity returns after 3 years. More than 90% of closed unique
routes are not operated in the year following the closure. This has important
repercussions on the competitive constraints on the airports – the ability (or the threat)
to close a route or to switch to another airport puts the airline in a dominant position
in its relationship with the airport. In the case of network carriers, the threat of dehubbing (i.e. to close a hub or to shift capacity to another hub of the same airline
group) constitutes an equally strong competitive constraint for hub airports. It is
considerable that since 2000 have occurred 5 cases of de-hubbing in Europe.
Not only airports and airline carriers but passengers are changing too. In addition to
more footloose airlines, passenger switching exerts considerable competitive
constraints on airports. In today’s market, passengers have easy access to travel
options and pricing and an increased choice when planning a flight journey. There
are more airports available to travellers and there is significant overlap of routes
serviced by neighbouring airports. The fact that these competing airports are serving
the same destinations means even more choice for passengers.
In addition, there are also more travel options available for transfer passengers. They
can also pick and choose their transfer hub. With this choice, passengers are now
more price sensitive than before. And last but not least, high-speed rail often
represents a good alternative to the plans on short distance. The railway stations are
in, or close to the CBD, there are no time using security controls or check-in
procedures, on the train is more space to move, etc. So rail typically captures 50% of
the market when air routes compete with rail journeys of less than 4 hours. The
passenger has the choice
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V. AIRPORT DEVELOPMENT
V.1.
Detailed analysis of selected European airport regions
In the following chapter we summarize some basic characteristics of different Central
European airports. Some of them are real Airport Cities (Munich, Zurich and Vienna)
while others are specialized airports (Low Cost Bases or Cargo Bases) or have no
speciality “only” are the airport of a capital city (Bratislava and Prague). The aim of
this chapter is to demonstrate that although relative older airports can be located
near to a rather larger economic centre but they are not always successful. On the
other hand an airport which is quite far from a CBD has to find a niche market in
order to be successful.
The chapter deals mainly with transport connection issues because other relevant
factors related with airport city developments (population and GDP amount, share of
services in GDP, population density, human resources in science and research etc.)
are not be easily influenced in relative short time and on district level, so they can't be
considered as “development projects” related variables. Nevertheless also these
information will be demonstrated.
Airport cities are always well connected not only with the CBD but with other
economically important regions. They have access to highways, railways and other
public transport lines. Also the city centre is within one hour distance by car. But on
the other hand airport cities are well connected by air too: well connected means that
direct connected with airports of other economically important cities.
The traffic connections and services related to the different airports –
this chapter – are resumed in the following (see:Connectivity of selected
European airports and city centres
6. table).
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Connectivity of selected European airports and city centres
6. table
AIRPORT
Munich Airport
Zurich Airport
Vienna
International
Airport
Vaclav Havel
Airport
CITY
Munich
Zurich
Wien
Cologne/
Bonn
Brussels South
Charleroi Airport
Brussels
Bratislava Airport
Leipzig - Halle
Airport
DESTINATION
(OPERATOR)
by car
30
38
by train
40
3:30-22:30
12
Munich Ostbahnhof
by bus
40
5:15-19:55
20
Munich Main Station
by car
15
by train
11
5:00-23:30
8
Zürich Hbf.
by car
17
by train
16
5:36-23:36
30
Wien Mitte
by bus
20
0:30-23:50
30
Wien Morzinplatz/
Schwedenplatz
by car
25
by bus
46
6:30-21:30
30
Hlavni nádrazi
by car
17
by train
16
0-24
20
Köln Hbf.
by car
51
by bus
60
7:30-23:59
30
Station Brussel-Zuid
by car
15
by bus
23
4:55-23:40
7-8
Basle Central Train
Station
by car
14
by bus
25
5:00-23:00
10
Central Station
by car
23
by train
26
4:30-22:30
40
Leipzig Hbf.
12
19
15
Prague
Cologne-Bonn
Grengel Airport
EuroAirport
AVARAGE
DISTANCE
AVARAGE
TRAVELING FROM THE OPERATING
FOLLOWACCESS
TIME FROM
CITY
INTERVAL
UP TIME
THE CITY
CENTRE [FROM - TO]
[MIN]
CENTRE [MIN]
[KM]
16
61
11
Basel
13
Bratislava
22
Leipzig
Every small chapter contains a short geographical description – including map about
transport connections of the airport –, data of the NUTS3 region of the airport
regarding population and GDP, the share of the most important services etc.
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We have collected data regarding on revenue, profitability and the share of air traffic
and non-air traffic related incomes of the airport. These information can contribute to
the understanding of the situation of each airport.
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V.1.1
Munich Airport
V.1.1.1. Geographical situation
The Munich Airport is located on the North of Munich next to the Munich-Vienna
highway (see 19. figure). The city centre is within reach of 40 minutes by car and
there are public transport service connections by “S-Bahn” too.
Situation of Munich Airport to the city centre
19. figure
Population and economic situation in the catchment area
More than 1,6 million people (1,3 million in the city of Munich and another 0,3 million
in the neighbourhood of the city) live in the immediate catchment area of the airport.
The population of the broader region is more than 4,6 million people. Munich, and the
broader Oberbayern region is one of the most important economic centres of
Germany and Europe as well. The GDP per capita (on the PPS basis) is EUR 40
thousand/person. The role of the tercier sector, in particular the info-communication
is very important: it represents almost 73,7% and 7,5% respectively of the GDP.
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V.1.1.2 Revenue
The Munich Airport is one of the Europe’s largest hubs and serves more than 37
million people and 286 thousand tons cargo. This airport is dedicated mainly for
passenger transport, the difference between its ranking by passengers and cargo are
6 positions. The airport is a complex and his revenue is growing in the last years
constantly. In 2011 the total revenue was €1.150,6 million.
V.1.1.3
Profitability
The Munich Airport as a company is generating profit for his shareholders, the EBIT
in 2011 was €334,6 million which represents 29,1% of the total revenue. This ratio
belongs to the higher profitability ratios of the European Airport operator companies.
V.1.1.4
Air-traffic-related and non air-traffic-related activities (units,
revenue, employees)
Munich Airport represents all the key “Airport City” characteristics. The air-trafficrelated activities represent about 52% of the total revenue and the other (commercial,
real estate, etc) are the other part of 48%. At and around the airport there are
different offices, hotels and other service providers active including medical centre.
The airport is one of the considerable employers, employing 6.864 persons Summary
on “what does this airports successful” – special services/activities at/around the
airport
The Munich Airport is one of the largest hubs in the European air traffic market. With
a strong, strategically managed system it has an acceptable profitability which is
based mainly on passenger transport and the development of non-aeronautical
activities like special medical services.
The airport buildings and service areas are surrounded on two sides by the runways.
Between the airport and the highway those buildings are located that belong to the
close neighbourhood of the airport but residential areas or other activities are located
further away from the airport.
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V.1.2.
Zurich Airport
V.1.2.1.
Geographical situation
The Zurich Airport is situated on the Nord of Zurich next to the “Unterland” highway
(see 20. figure). The city centre could be arranged within 13 kilometres by car but
there are public transport service connections by “S-Bahn” too.
Situation of Zurich Airport to the city centre
20. figure
V.1.2.1.
Population and economic situation in the catchment area
In the closer catchment area live almost 1,4 million people, the population of the
broader region is more than 3,0 million people. Unfortunately there are no
comparable data in EUROSTAT database for the region’s economy.
V.1.2.2.
Revenue
The Zurich Airport is one of Europe’s regional hubs and serves about 23 million
people and 286 thousand tons cargo as well as Munich. Therefore this airport is
dedicated mainly for passenger transport too, but the difference between his ranking
by passengers and cargo is only 1 position. The airport is a complex company and
his revenue is growing in spite of the bankruptcy of Swissair which used the airport
as base airport for the insolvency. In 2011 the total revenue of the airport reached
CHF 905,4 million.
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V.1.2.3.
Profitability
The Zurich Airport as a company is generating profit for his shareholders, the EBIT in
2011 was CHF 283,8 million which represents 31,3% of the total revenue. This ratio
belongs also to the higher profitability ratios of the European Airport operator
companies.
V.1.2.4. Air-traffic-related and non air-traffic-related activities (units,
revenue, employees)
The Zurich Airport is functioning also as an “Airport City”, although the air-trafficrelated activities represent about 64% of the total revenue and the other (commercial,
real estate, etc) activities gives the other part of 34%. At and around the airport are
different offices, hotels and other service provider active. At the airport are employed
1.570 persons.
V.1.2.5. Summary on “what does this airports successful” – special
services/activities at/around the airport
The Zurich Airport is one of the regional hubs in Europe. The new development plans
include the enlargement of the offer of hotels, restaurants, offices and other facilities,
including also a medical centre until 2017.
In the semi-circle in the South are situated the airport buildings and services, the two
runways crosses each other around the buildings. The airport is surrounded by the
residential areas of the neighbouring settlements
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V.1.3.
Vienna Airport
V.1.3.1.
Geographical situation
The Vienna Airport is situated on the East of Vienna next to the A4 highway (see 21.
figureError! Reference source not found.). The city centre could be arranged within 20
kilometres by car but there are public transport service connections by direct train,
“S-Bahn” and 3 bus lines too.
Situation of Vienna Airport to the city centre
21. figure
V.1.3.2.
Population and economic situation in the catchment area
In the closer catchment area live more than 1,7 million people, the population of the
broader region is more than 3,4 million people. Wien is the political and economical
centre of Austria with a strong and developed economy. The GDP per capita (on PPS
basis) is about EUR 40 thousand/persons. The strongest sector is the tercier sector
(88,0% of the total GDP in the region) and the info-communication business is also
very strong (8,6% of the region’s GDP).
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V.1.3.3.
Revenue
The Vienna Airport is one of Europe’s regional hubs and serves almost 20 million people and
200 thousand tons cargo. Therefore this airport is dedicated mainly for passenger transport
too, but the difference between his ranking by passengers and cargo is only 2 positions. The
Flughafen Wien Group provides complex infrastructure service. From the development and
maintenance of the infrastructure required for flight operations and handling to diverse retail,
gastronomy and parking management services and real estate marketing, nearly all activities
are supervised directly by Flughafen Wien AG or indirectly by their subsidiaries. As a
consequence, the Flughafen Wien Group covers the entire added value chain at Vienna
Airport. In 2011 its total revenue reached EUR 582,0 million, which represents a growth of
9,0% on a yearly basis.
V.1.3.4.
Profitability
The Vienna Airport as a company is generating profit for his shareholders, the EBIT
in 2011 was EUR 67,2 million, which represents only 11,5% of the total revenue
because it was less by nearly 35% as in 2010. The EBIT sunk in every segment: in
airport activities by 27,6% (from EUR 78,9 million to EUR 57,1 million), in handling by
98,9% (from EUR 15,1 million to EUR 0,2 million), in retail and properties by 20,2%
(from EUR 38,0 million to EUR 30,3 million). Only in others was changed from EUR –
3,4 million to EUR 4,7 million.
V.1.3.5
Air-traffic-related and non air-traffic-related activities (units,
revenue, employees)
The Vienna Airport is functioning also as an “Airport City”, although the air-traffic-related
activities represent about 78% of the total revenue and the other (commercial, real estate,
etc) activities gives the other part of 22%. At and around the airport are different offices,
hotels and other service provider active. With nearly 19,000 employees, of which the Vienna
Airport company is employing 4.525 persons, the airport region is one of the largest
employers in the eastern region of Austria.
V.1.3.6
Summary on “what does this airports successful” – special
services/activities at/around the airport
The Vienna Airport is one of the regional hubs in Europe. The company’s strategy is based
on its success factors – an advantageous geographical location, capacity, attractive tariff
system, high-quality services and security standards, close customer ties and opportunities
outside the airport site. This strategy is supported by the company’s growth potential: solid
financial management, sound growth in passengers and an extensive offering of
destinations.
With the rental of office space outside the terminal, the Flughafen Wien Group has created a
further profitable area of business as a supplement to traditional airport operations. Not only
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the airlines, forwarding agents and air traffic control, but a growing number of companies are
also benefiting from this close proximity to the airport and its dynamic business environment.
The properties owned by the Flughafen Wien Group therefore represent an important
location advantage and are in great demand, as is illustrated by the current high occupancy
rate of over 85%.
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V.1.4.
Prague Airport
V.1.4.1.
Geographical situation
The Prague Airport is situated on the West of Prague, within the metropolitan area,
next to the beltway around the city (see 22. figure). The capital centre could be
arranged within 16 kilometres by car but there are public transport service
connections by direct train and 2 bus lines connected to the metro lines too.
Situation of Prague Airport to the city centre
22. figure
V.1.4.2.
Population and economic situation in the catchment area
In the closer catchment area live more than 1,2 million people, mainly in the capital
city of the Czech Republic. To the broader catchment area could be counted almost
the whole republic because the quite good connections. Prague is the political and
economical centre of the Czech Republic with the strongest economy of the country.
The GDP per capita (on PPS basis) is about EUR 42 thousand/persons. The
strongest sector is the tercier sector (75,80% of the total GDP in the region) and the
info-communication business is also very strong (6,2% of the region’s GDP).
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V.1.4.3.
Revenue
The Prague Airport is one of Europe’s regional airports, which serves almost 12 million
people and 57 thousand tons cargo. This airport is dedicated also mainly for passenger
transport, while the difference between his ranking by passengers and cargo is only 2
positions as well. The Václav Havel Prague Airport is a part of the Czech Aeroholding Group,
created in 2011, together with the Czech Airlines and several air traffic related service
providers as ground handling, technical maintenance of aircraft etc. The company is a fully
state owned enterprise. In 2011 its total revenue reached CZK 2.287,3 million (EUR 91,5
million).
V.1.4.4.
Profitability
The Prague Airport as a company is generating profit for his shareholder, the EBIT in
2011 was CZK 302,0 million (EUR 12,1 million), which represents 13,2% of the total
revenue.
V.1.4.5. Air-traffic-related and non air-traffic-related activities (units,
revenue, employees)
The Prague Airport is functioning as a “Low cost base”; unfortunately there is no data
regarding on the share of air-traffic-related and other (commercial, real estate, etc)
activities. At the Czech Aeroholding are employed 1.814 persons. At and around the
airport are some offices, hotels and other service provider active.
V.1.4.6. Summary on “what does this airports successful” – special
services/activities at/around the airport
The Prague Airport is one of the regional airports in Europe. The company was recently
restructured with the aim to make it a more profitable and efficient entity of the group. As a
“low cost base” could offer good services for Czech citizens and foreign tourist for their
leisure and business flights within Europe.
The success of the airport is depending very much on the surrounding area’s success like
Prague itself and the neighbouring locations.
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V.1.5.
Cologne-Bonn Airport
V.1.5.1.
Geographical situation
The Cologne-Bonn Airport is situated between the two cities (see 23. figure). The
former German capital centre could be arranged within 24 kilometres, Cologne within
15 kilometres by car but there are public transport service connections by direct “SBahn” lines with both cities too. The airport is also connected to the CologneFrankfurt high-speed railway line. The airport is situated near to one of Europe’s most
dense highway network, to the German one also.
Situation of Cologne – Bonn Airport to the city centres
23. figure
V.1.5.2.
Population and economic situation in the catchment area
In the closer catchment area live more than 1,3 million people, mainly in Köln. In the
broader catchment area could be reached almost 4,4 million people; it is one of the
most dense populated areas of Germany. The Köln region is a very developed region
of Europe, the two cities belong to the most developed areas of the continent. The
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GDP per capita (on PPS basis) was EUR 30,3 thousand/persons in the region but in
the two cities it was considerably higher: in Bonn EUR 56,4 thousand/persons and in
the city of Köln EUR 43,0 thousand/persons. The role of the tercier sector and the
info-communication also was very strong in the last years. The share of the tercier
sector of the region’s GDP was 75,8%, and the info-communication companies gave
the 9,3% of the added value.
V.1.5.3.
Revenue
The Cologne-Bonn Airport is one of Europe’s cargo centres and regional airports as well,
which serves almost 10 million people but more than 726 thousand tons cargo. The airport is
dedicated mainly for cargo transport, the difference between his ranking by passengers and
cargo is 34 positions! This is the 5th largest cargo centres in Europe. The sales amount was
EUR 271.5 million in 2011, of which 65.5 % relate to airport tax and ground handling
services, 31.0 % to rental, leaseholds and supply services, and 3.5 % to other revenues.
V.1.5.4.
Profitability
The Cologne-Bonn Airport as a company is generating profit for his shareholder, the
EBIT in 2011 was EUR 21,2 million, which represents 7,8% of the total revenue. The
company could overcome of the decrease of the last years caused by the economic
crisis and could almost reach the same figures as in 2007.
V.1.5.5. Air-traffic-related and non air-traffic-related activities (units,
revenue, employees)
The Cologne-Bonn Airport is functioning – beside to be one of the greatest cargo bases in
Europe – as a “low cost base”. 65.5 % of the sales revenue is related to airport tax and
ground handling services, 31.0 % to rental, leaseholds and supply services, and 3.5 % to
other revenues. At the Cologne-Bonn Airport company are employed 1.785 people.
V.1.5.6. Summary on “what does this airports successful” – special
services/activities at/around the airport
The comfortable three-runway system together with the intercontinental runway as well as
the provision of numerous terminals and cargo halls provide for additional increase in air
traffic movements. The existing motorway and railway networks back up this development.
The extremely favourable climatic conditions are another positive aspect, since the airport is
located in a hardly fogbound region which is rarely affected by snow falls. These climatic
conditions are especially favourable for the cargo traffic, but also the passenger traffic, and
primarily promote services and the production industry.
Ten years ago, Cologne Bonn Airport was the first major airport in Germany to venture into
this new traffic segment. Thanks to low-cost, the airport was able to overcome the worst
crisis in its history. Many of the Germanwings passengers flew out of or into Cologne/Bonn.
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This Lufthansa subsidiary based in Cologne is today the third largest low-cost airline in
Europe, after Ryanair and EasyJet. Alongside Germanwings, other low-cost airlines, such as
Air Berlin, EasyJet, Norwegian, Air Maroc, Wizz Air, and as of May 2012 also Ryanair, fly into
Cologne/Bonn Airport, which after Berlin-Tegel continues to be the second largest low-cost
airport in Germany. The fact that the network carriers are integrating the low-cost model
more and more into their business programme underlines this success. The low price, the
general availability and online ticket reservation in the Internet have dramatically changed the
air traffic landscape.
Cologne Bonn Airport is successful with low cost. This model has created and safeguarded
many new jobs. At the same time, since 2002, the non-aviation area has almost trebled from
3,500 m² to approx. 10,000 m². The sales turnover in the shops, restaurants etc. has since
doubled to more than € 80 million. Today, passengers and visitors have excellent
opportunities of shopping in 33 stores and eating and drinking in 20 restaurants and bars.
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V.1.6.
Brussels South Charleroi Airport
V.1.6.1
Geographical situation
The Brussels South Charleroi Airport is a typical regional airport which is situated
next to the A15 – A7 highways (see 24. figure). The Belgian capital city centre could
be arranged within 45 minutes (60 kilometres) by car but there are public transport
service connections by direct bus and railway lines too. The airport is close to
different important economic centres of West Europe.
Situation of Brussels South Charleroi Airport to the city centre
24. figure
V.1.6.2.
Population and economic situation in the catchment area
In the closer catchment area live only 0,4 million people, but in the broader
catchment area, including Brussels could be reached more than 2,4 million people.
The catchment area is slightly developed than the Hainaut province. The GDP per
capita (on PPS basis) was EUR 21,4 thousand/persons, while on province level it
was only EUR 19,0 thousand/persons. In the province the most important sector is
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the tercier sector: 75,2% of the total GDP but the info-communication activity
represents only 2,9% of the added value of the province.
V.1.6.3.
Revenue
The Brussels South Charleroi Airport is a typical “low-cost base”. It serves more than 5
million people but there is no cargo traffic. The airport is a very important base of Ryanair but
other low-cost carrier as Wizzair and Jetairfly represent a considerable share of traffic too.
The yearly sales revenue of the airport were EUR 87,5 million in 2011.
V.1.6.4. Profitability
The Brussels South Charleroi Airport is generating profit for his shareholders, the
EBIT of the airport were EUR 16,6 million, which represents 19,0% of the total
revenue. The result was increasing comparing with the years before.
V.1.6.5. Air-traffic-related and non air-traffic-related activities (units,
revenue, employees)
Although Brussels South Charleroi Airport is functioning as a “low-cost base” the air traffic
related revenues represent only 6,3% of the total revenue of the airport while handling 58,1%
and other, non aeronautical incomes are 23,9% of the total. At the airports are employed 406
persons.
V.1.6.6. Summary on “what does this airports successful” – special
services/activities at/around the airport
Brussels South Charleroi Airport is successful offering services exclusively for low-cost
carriers and their passengers. The airport doesn’t intent to be more than a very cheap airport
with the necessary infrastructure and services their clients need.
Even the longer way to the final destinations of the passengers could be compensated by the
attractive prices and the very good connections to the main cities of Europe. There are no
more and splendent infrastructure as needed for serving passengers of the low-cost carriers.
The company’s management is focusing on guaranteeing an acceptable quality of services
for passenger’s needs and the appropriate working conditions of the staff.
The company started to elaborate a new Master Plan for the developments for the next 20
years, but the results are not known for the time being.
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V.1.7.
Basel - Mulhouse Airport
V.1.7.1
Geographical situation
The Basel-Mulhouse Airport is also a typical regional airport which is situated next to
the A35 highway (see 25. figure). Although the airport “belongs” to two cities and two
countries, both cities are close to him. Basel could be arranged within 6 kilometres
and Mulhouse within 22 kilometres by car.
Situation of Basel – Mulhouse Airport to the city centres
25. figure
V.1.7.2
Population and economic situation in the catchment area
In the closer catchment area live only 1,0 million people, but in the broader
catchment area, including Alsac and Haut-Rhin in France, Freiburg in Germany and
Nord-west Schweiz could be reached almost 5,9 million people. The level of the GDP
per capita (on PPS basis) in the Haut-Rhin sub-region is similar to the Hainaut
province in Belgium: EUR 21,8 thousand/persons but the whole region (not
considered the Swiss and German data) is developed. Not only the GDP per capita
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data is higher, but the role of air-traffic intensive activities is more important in the
region. The share of tercier sector is 74,7% and the share of the info-communication
is 3,4%.
V.1.7.3 Revenue
The Basel-Mulhouse Airport is a typical “low-cost base”. It serves more than 7,5 million
people but moved only a few tons of cargo. The yearly sales revenue of the airport were
EUR 101,3 million in 2011.
V.1.7.4 Profitability
The Basel-Mulhouse Airport is generating profit for his shareholders, the EBIT of the
airport were EUR 19,4 million, which represents 19,2% of the total revenue. The
result was almost doubled comparing with the year before.
V.1.7.5. Air-traffic-related and non air-traffic-related activities (units,
revenue, employees)
As Basel-Mulhouse Airport is functioning also as a “low-cost base” the air traffic related
revenues represent 63,0%, handling 26,0% and other, non aeronautical incomes only 11,0%
of the total incomes. At the airports are employed 494 persons.
V.1.7.6 Existing development plans
In the passenger sector there are prospects of extending the Eastern European connections,
of optimizing the range of classical business destinations and holiday flights as well as of
diversifying the choice of flights through attracting additional airlines. In the freight sector the
present old infrastructure will be replaced by a modern new freight terminal, which will be
adapted to the needs of local industry, particularly pharmaceutical firms. Another important
project for EuroAirport and the region is the direct railway connection to the airport. The
current planning of the project foresees its opening in 2017-18. Another future construction
project is the erection of a 2- and 3-star hotel complex with 200 rooms in immediate proximity
to the Airport Terminal.
V.1.7.7. Summary on “what does this airports successful” – special
services/activities at/around the airport
The extremely convenient location of EuroAirport at the heart of Western Europe and at the
crossroads of three economically thriving regions explains the airport’s success.
The scheduled flight network includes between 60 and 80 airports in about 30 different
countries, depending on the season. Normally they can be reached directly every day or at
least several times a week without changing. At EuroAirport more than 20 different airlines
handle approximately 80-100 daily scheduled flights. The market leaders are easyJet and Air
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France, followed by Lufthansa with its subsidiary Swiss International Air Lines, as well as
airberlin and British Airways.
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V.1.8.
Bratislava Airport
V.1.8.1.
Geographical situation
The Bratislava Airport is a small regional airport on the North-east of the city and it is
situated next to the D1 highway (see 26. figure). The centre of the Slovak capital
could be arranged within 30 minutes, 16 kilometres by car or passengers can travel
there by public bus transport too.
Situation of Bratislava Airport to the city centre
26. figure
The Bratislava Airport is situated quite near to Vienna Airport (less than 100 km) serving
almost the same population, like Charleroi and Brussels due to the possibilities of the
common Schengen borders.
V.1.8.2
Population and economic situation in the catchment area
In the closer catchment area live only about 0,6 million people, but in the broader
catchment area, including Bratislavsky kraj in Slovakia, Wien and Burgenland in
Austria and Győr-Moson-Sopron in Hungary it could be reached almost 5,4 million
people. Bratislava overtop the other Slovak regions in terms of economic
development figures. The GDP per capita (on PPS basis) is quite similar than the
developed regions of the continent: EUR 43,1 thousand/persons. Also the role of the
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tercier sector is quite high, it represents the 80,8% of the region’s total GDP and the
info-communication activity is important (5,6% of the GDP) as well.
V.1.8.3.
Revenue
The Bratislava Airport is also a typical “low-cost base”. It serves almost 1,7 million people but
moved only a few tons of cargo. Because of the moderate number of passengers and cargo
traffic the yearly sales revenue of the airport were only EUR 27,3 million in 2011.
V.1.8.4.
Profitability
The Bratislava Airport is not profitable for his shareholders, it means for the Slovak
state. The EBIT of the airport were EUR -3,1 million, which represents -11,3% of the
total revenue. The loss was less than one year before.
V.1.8.5.
Air-traffic-related and non air-traffic-related activities (units,
revenue, employees)
Although the Bratislava Airport is functioning as a “low-cost base”, since the crises the
number of passengers are decreasing (in 2007 2,2 million passengers comparing with 1,6
million in 2011) but the moved cargo volume is constantly increasing (2,0 thousand tons in
2007 and 20,5 thousand tons in 2011). The air traffic related and handling revenues
represent 72,3%, commercial services 18,8% and other incomes 8,9% of the total incomes.
At the airports are employed 621 persons.
V.1.8.6.
Summary on “what does this airports successful” – special
services/activities at/around the airport
For the time being there is no facts to be highlighted as “success” regarding on the Bratislava
Airport. The company suffered recently from a lot of different factors: loss of several domestic
carriers; persistent political influence; poor long-term planning for the airport due to frequent
fluctuations in top management etc. Nevertheless there are possibilities to find niche markets
in Central Europe between two larger airports like Vienna and Budapest, e.g. non-scheduled
flights or different destinations of different carriers.
The airport is also very good located for those travellers who are involved in the car industry
or in other flight sensitive activities and are visiting the triangle between Vienna, Budapest
and Zilina.
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V.1.9.
Leipzig/Halle Airport
V.1.9.1.
Geographical situation
The Leipzig/Halle Airport is one of the most important cargo hubs in Europe on the
North-west of the city and on the South-east of Halle, situated next to the crossing
point of the A9 and A14 highways (see 27. figure). Leipzig could be arranged within
16 kilometres and Halle 22 kilometres by car or passengers can travel there by public
transport (train, S-Bahn and bus), including intercity connections too.
Situation of Munich Airport to the city centre
27. figure
V.1.9.2.
Population and economic situation in the catchment area
In the closer catchment area live only about 1,2 million people, but in the broader
catchment area, including Sachsen it could be reached almost 4,2 million people.
The former GDR regions still are much less developed than the South-west part of
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Germany. The GDP per capita (on PPS basis) in Sachsen (region of Leipzig and
Halle) is still considerably below the level of Bayern or Baden-Würtemberg: EUR 21,1
thousand/persons. In the two cities are a bit higher: EUR 25,4 thousand/ persons and
EUR 22,6 thousand/persons. The role of the tercier sector is also less important
(56,6%) in the GDP of Sachsen although in Leipzig it is a bit higher: 61,4%.
Nevertheless the importance of info-communication activities is similar to other
developed regions: 5,8% of the GDP.
V.1.9.3.
Revenue
The Leipzig/Halle Airport is also a typical cargo base, although it serves as a small regional
airport too. It serves almost 2,9 million people but moved more than 743 thousand tons of
cargo. With this figure is the 2nd largest cargo basis in Germany, 5th in Europe and 26th in the
world. The airport is the basis of two large air cargo enterprises: Aerologic and European Airt
Transport Leipzig. There are other important air cargo carriers active at the airport e.g. DHL.
The airport belongs to the Mitteldeutsche Flughafen AG. but there is no data available on the
web regarding on financial facts of the company.
V.1.9.4.
Profitability
The airport belongs to the Mitteldeutsche Flughafen AG. but there is no data
available on the web regarding on financial facts of the company.
V.1.9.5.
Air-traffic-related and non air-traffic-related activities (units,
revenue, employees)
The airport belongs to the Mitteldeutsche Flughafen AG. but there is no data
available on the web regarding on financial facts of the company.
V.1.9.6.
Summary on “what does this airports successful” – special
services/activities at/around the airport
The success of the airport is based on their important role of Germany’s air cargo activity. It
is supported by the good location and connection by highways and railways as well.
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V.2.
Key success factors for airport development
After having studied the sample of some European airports of diverse characteristics
it can be stated that airports in Europe can be economically successful when they:

have a minimum level of traffic; passenger or cargo: 10 million passenger as a
minimum, in case of freight there is not stated a minimum level for achieving
profitability,

are well positioned on the changing air traffic market and have found the right
niche market, if needed,

have a clear developed business strategy and can realize it,

dispose of suitable economic background (purchasing power, strong airtransport intensive sectors etc.),

are good connected with the nearer and wider environment,

have possibilities to diverse their services.
It is not indispensable to dispose of all of these factors but some of them are crucial,
like strategic thinking and managing, good connectivity and the suitable economic
background.
The suitable economic background supposes the relative high level of GDP and the
importance of services in it. The most appropriate structure includes R+D activities,
research and IT institutions, financial services etc. with high air travelling needs. But it
is also very important that in the region of the airport live several million of population
as well.
These factors are the basis for frequent air journeys because of business but also as
leisure due to the relative high income level of those persons who are employed in
these sectors. Also these activities attract lots of business travellers to these
economic centres which generate needs for restaurants, hotels, exhibition centres or
air cargo services. Finally the relative high number of workplaces can generate
higher level housing needs close to the airport.
Smaller airports like Brussels South Charleroi can be more profitable than larger
airports (e.g. Vienna Airport or Cologne/Bonn Airport). But there is a risk for those
smaller airports to lose only one air carrier and as a consequence the results can fall.
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V.3.
Key success factors for airport generated local and regional economic
development19
For a large number of economic activities the good connectivity with other regions is
crucial, therefore airports constitute necessary infrastructure for this companies. This
economic role use to be mentioned as the “catalytic impact”, arising from the effect
that air service accessibility may have on the region, served by the airport. Access to
markets and external and international transport links are considered as “absolutely
essential” to business decisions. This catalytic impact operates through enhancing
business efficiency and productivity by providing easy access to suppliers and
consumers, mainly over medium and long distances. The global accessibility is one
of the most important factors for business location in all European regions.
On the other hand, large airports are often fundamental enterprises for their national
economies. For example the demise of Swissair had a very important impact for the
loss of the Swiss economy by the reduction of services of the Zurich Airport. As
another example can be mentioned the role of the Paris Charles de Gaulle Airport or
Amsterdam Schiphol Airport which are real multi-modal interchange nodes and
contribute to the development of not only the region but of the whole national
economy creating strategic advantages by their networking position and enabling to
enhance a broad range of economic activity, functioning as new development poles.
The global accessibility can be a basic decision element on business location
decisions. For example the good connections of the Vienna Airport have enabled
Vienna to provide the location for the East European headquarters of several global
companies and this is the case in Prague and Budapest as well. While the strong
“high tech” industries as a hinterland can also contribute to the economic
development of the airport and the airport regions like in the cases of the Nice,
Copenhagen or even of the Paris Charles de Gaulle Airport.
This “air intensive” business sectors can be the following:





Insurance,
Banking and finance
Printing and publishing
Coke, petroleum and nuclear fuel
Extraction
Based on the study of ACI and York Aviation: „The social and economic impact of airports in
Europe” January, 2004
19
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 Transport
 Communication
 Research and development
 Basic materials
 Computer activities
 Precision and optical instruments
 Other business services
This are activities which needs more air traffic services to develop their business by
contacting clients, suppliers and business partners.
Another important factor is the demand for services of the air traffic related activities
and airports. The multiplying effect of these activities can contribute to the
employment and the economic development of the region. Every million passengers
can support almost 3 thousand jobs on national level, 2 thousand jobs on regional
level and almost 1,5 thousand jobs on sub-regional level. In certain region air traffic
connections are crucial for the development of tourism like in Spain, Greece or even
Italy. But with the appearance of the low-cost airlines this sector took profit of the
development of short city visits as well.
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V.4.
On and off-site airport development concepts
In the spatial development planning theories have appeared several different
concepts which are on could be related with the airports’ development concepts.
Some of these different theories are interrelated or, with other words are different
stages or levels of spatial development of a certain area. In the following we would
shortly present some examples: airport city, airport corridor and intermodal hubs as
possible future ways of development of Central European airport regions.
Airport cities
The concept was created and developed by Dr. Kasarda in the United States. It
focuses on the complex development of the whole airport area including not only the
in-fence but out-fence areas. The concept is presented in details in chapter 2.
Airport corridors
Airport corridors can be developed between the airport area and the central business
district. (CBD) The development activity focuses on the area which is situated along
the transport corridor between the two important spaces: airport and CBD. Generally
the development have an initial, natural phase as individual, relative smaller
development are taken place influenced by more or less causal factors. In a more
matured phase the whole region, which is situated between the airport and the CBD,
is subject of a wider, mainly strategic spatial planning process.
Airport corridors can be developed between the airport or airport city and the CBD or
the metropolitan poles of a metropolitan area. The concept is based on the demand
for air traffic of certain activities. It could be the demand of businesses which need
relatively high volume of movements on medium or large distance (which could be
satisfied by air by the most appropriate way) independently of the fact that this need
appears as a need of the supplier, client or of business trips.
Examples can be shown in different cities of the world. Only in Europe there are
several airport corridors developed in Frankfurt, London, Paris, Amsterdam or in
Madrid between the large air traffic hubs and the surrounding area. But it has not to
be a major hub which can generate an airport corridor between the CBD and the
airport. The same development process can be observed in Zürich or in Barcelona.
Intermodal hub
Intermodal hubs could be the first stage on the way of the development of an airport
to an airport city or airport corridor. Neither the passengers nor the air cargo use to
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arrive at the airport, generally they have to change the transport mode and continue
travelling to their final destination. Therefore airports are usually smaller or larger
intermodal hubs as well where passengers can take a taxi or cargo can be loaded on
trucks as a minimum. Nevertheless it is recommended that passengers and cargo
could take the most appropriate transport mode they need for continuing the trip till
their final destinations. As wider and smoother is the offer of transport mode
possibilities at the airport as more successful could be the airport in the competition
for passengers and cargo.
Passengers and couriers are considering the total travel or transport time as they are
evaluating transport possibilities. Therefore not only the transit time within the airports
is important but also the transit time at the airports while changing transport modes.
The connectivity of the airport to the CBD or to the different regions in the hinterland
of the airport is one of the factors which will be considered as travellers or shippers
are evaluating the possibilities of the different airports which can solve their transport
needs.
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VI. CONCLUSIONS
VI.1.
Airport development criteria
While determining the airport development criteria it should be considered several
factors. These factors are related with the geographical, socio-economical and
topological circumstances of the airport. The different criteria are as follows:
 Geographical criteria
o The situation of the airport regarding on the main city/region it serves
o The situation of the competing airports
o The meteorological characteristics of the airport
 Topological criteria
o Main connecting transport modes
o Spatial development possibilities at and around the airport
o Land use around the airport
 Socio-economical criteria
o Population in the catchment area
o Economic situation in the catchment area (growth, structure,
employment etc.)
o Business attractiveness of the catchment area
Regarding on geographical situation it was demonstrated that in the core regions
there is a higher level of air traffic demand than in peripheral zones. The more
important cities can be arranged within acceptable time (within 1-2 hours as a
maximum) from an airport the more point-to-point connections are possible.
Because the fact that the majority of European citizens have possibility to choose at
least between two airports to flight to/from airports compete among each other in
level and specialities of services. The more competitive airport can attract more
passengers and on this basis can achieve better economic performance. (Below 5
million passengers yearly airports are rarely profitable.)
The role of an airport in the complete transport network influences the development
possibilities of the airport and its neighbourhood. The more variable and easy
connection possibilities with other transport modes contribute to the larger passenger
flow at the airport. It includes the connections to other airports as well.
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Airports need enough space to grow if needed (new runways, passenger areas
and/or other buildings and installations). Not only space but other infrastructures are
indispensable to attract enterprises which needs or offer services of/for the airport.
It is also indispensable that the nature of the neighbouring areas of the airport
shouldn't be controversy to the airport activities: in protected areas it isn't possible to
enlarge the airport and to attract more connections because of noise. It can also
negatively affect urbanisation developments.
The higher level of density of population contributes to the air traffic needs. It was
demonstrated that in denser populated areas people travel by air more frequently.
Also the higher living standard of the population generates more need for air traffic
because those people spend more for holidays or city visits. The higher level of
incomes is in strong correlation with the education and profession. In those service
sectors which generate more air traffic, the share of higher educated people is also
higher than the average in the economy.
It was also demonstrated that in those regions where the economic development
level is higher, where the share of service is higher, where the employment is higher,
the air traffic demand is also higher and as a consequence the possibilities of
profitability of airports are also better.
The more attractive a region for investors is the more enterprises and institutions
choose the region to settle down there. The large companies and institutions also
generate economic development and air traffic as well. That is demonstrated by the
fact as well that in those regions where the major air traffic hubs are, also several
headquarters of major international companies can be found there.
Nevertheless it is very important that the stakeholders should have a common vision
regarding on the future of the airport and their surrounding area to enable the airport
or airport region to develop the appropriate strategic development plan and to follow
the realization of this strategic development plan. It is shown that although most
organizations have a strategic development plan, but without the appropriate tools for
tracing, a high percentage of them can’t realize their strategic goals.
On the other hand, each airport has to consider their own possibilities and situation in
the recent competition for air carriers, passengers and cargo taking in to
consideration the financial possibilities of the shareholders for developing the airport
and their catchment area as well.
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VI.2.
Airport impacts on surrounding regions
It is demonstrated that airports are dynamic motors of economic development in their
smaller or wider catchment area by generating demand for services, materials and
jobs not only at the airport but at the airport supplying companies as well. Airports
make easier to connect business with other business situated on medium or long
distance of the airport region. These relationships can exist between persons but can
be developed between suppliers and clients as well of air transport intensive or
sensitive business sectors like finance, R&D or other, mainly businesses of high
added value.
Airports can have a positive impact on the tourist sector of their catchment area due
to better connections to the world, to the possible leisure travellers of other regions. If
there are possibilities for develop certain activities airports can help in concentrating
not only R&D activities of those certain activities but also education, suppliers or
clients of the activity in question, e.g. pharmaceutical industry or computer related
activities.
Nevertheless it can’t be forgotten the possible negative impacts of the airport like
noise and air pollution or safety problems (terrorism) when a high concentration of
high value added activities are concentrated in a certain and smaller area. Therefore
is also very important that airports have to prepare reliable strategic development
plans with these regards also.
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VI.3.
Airport city: a dream or realistic ambition?
Airport city has a double meaning: while it could be a business model for several
airports at the same time it is a new urban spatial development strategy for the airport
region. The first concept belongs to the airport business management theory but the
second is much more a concept of the municipalities of the airport’s surrounding area
although in many cases these municipalities are shareholders of the airports!
It is shown that airports need have a certain passenger flow to be able develop and
maintain such a lot of non-aeronautical business which can be considered as “airport
city”. Based on low-cost carriers and low-cost travellers can’t achieve the revenue per
sq.m. needed for the profitability of a top quality fashion shop or business centre at
the airport. The same could be considered if we are talking about air traffic related
services as aircraft maintenance or training of the airplane crew. It should be an
airport where move enough aircraft which can profit of these services or there should
exist enough service provider with the special manpower to offer these services at a
high quality.
At those regions where the airport serves 15 million people in a year and there are
direct flights to 40–50 destinations as a minimum while one air line carrier uses the
airport as basic airport, there could be considered the development as an “airport
city” offering a lot of non-aeronautical services for passengers and professionals in
the air traffic related businesses. And on the other hand at those airports is needed to
develop the offer of hotels and accommodations, restaurants, leisure and other
special services (e.g. medical care, or entertainment).
At these regions can be projected the spatial planning by developing the airport’s
surrounding area for air traffic related business activities and for residential area of
these employees. If the need is strong enough it can projected the development
between the airport region and the closest metropolitan poles for airport corridors.
But in the meantime it can’t be forgotten develop the multimodal hubs because an
airport of this level is functioning as a hub for the hinterland as well.
At airports and regions where these preconditions are not in place it is recommended
to consider other possibilities to be a successful airport. First of all it should be
studied the soci-economical environment of the airport and find the possible niche
markets which could be appropriate for the airport. It can be “low-cost base”, or
freight centre or other, special air traffic related activity. But in any case possibilities
and strategic goals have to coincide! The airport city could be a dream for somebody
while a realistic ambition for another.
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SOURCES AND ANNEXES
Sources and Annexes
Sources
1. John D. Kasarda: Airport Cities: The Evolution; Chapter 1 (London: Insight
Media, 2008)
2. Mathis and Michael Güller. From Airport to Airport City. Airports Region
Conference, Barcelona Spain, 2001.
3. John D. Kasarda: The Way Forward; Global Airport Cities; Insight Media, 2010
4. Airport futures: Towards a critique of the aerotropolis model by Michael B.
Charles, Paul Barnes, Neal Ryan, Julia Clayton
5. http://www.aerotropolis.com/files/2013_AerotropolisStatus.pdf
6. Eurostat regional yearbook 2012, European Commission;
http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-HA-12-001/EN/KSHA-12-001-EN.PDF
7. An Outlook for Europe’s Airports, Facing the Challenges of the 21th Century;
ACI-EUROPE 2010
8. ACI EUROPE Economics Report 2012; https://www.acieurope.org/policy/position-papers.html?view=group&group=1&id=6
9. Martin Hvidt Thelle, Torben Thorø Pedersen and Frederik Harhoff: Airport
Competition in Europe, Copenhagen Economics, June, 2012 - ACI-EUROPE
10. ACI and York Aviation: „The social and economic impact of airports in Europe”
January, 2004
11. http://www.aerotropolis.com/airportCities/publications
12. Annual reports of the studied airports
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Annex
Nr.
NUTS3 region
Airport
1
Wien
WIEN/SCHWECHAT
2
Arr. de Bruxelles-Capitale
BRUXELLES/NATIONAL
3
Arr. Charleroi
CHARLEROI
4
Arr. Liège
LIEGE/LIEGE (CIV)
5
Hlavní mesto Praha
PRAHA/RUZYNE
6
Stuttgart, Stadtkreis
STUTTGART
7
München, Kreisfreie Stadt
MÜNCHEN
8
Berlin
BERLIN/SCHÖNEFELD
9
Berlin
BERLIN/TEGEL
10
Hamburg
HAMBURG
11
Frankfurt am Main, Kreisfreie Stadt
FRANKFURT/MAIN
12
Frankfurt am Main, Kreisfreie Stadt
FRANKFURT-HAHN
13
Region Hannover
HANNOVER
14
Düsseldorf, Kreisfreie Stadt
DÜSSELDORF
15
Köln, Kreisfreie Stadt
KÖLN/BONN
16
Leipzig, Kreisfreie Stadt
LEIPZIG/HALLE
17
Byen København
KØBENHAVN/KASTRUP
18
Thessaloniki
THESSALONIKI/MAKEDONIA
19
Attiki
ATHENS
20
Dodekanisos
RODOS/DIAGORAS
21
Irakleio
IRAKLION
22
Vizcaya
BILBAO
23
Madrid
MADRID/BARAJAS
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Nr.
NUTS3 region
Airport
24
Barcelona
BARCELONA
25
Alicante / Alacant
ALICANTE
26
Valencia / València
VALENCIA
27
Eivissa, Formentera
IBIZA
28
Mallorca
PALMA DE MALLORCA
29
Málaga
MALAGA
30
Sevilla
SEVILLA
31
Fuerteventura
FUERTEVENTURA
32
Gran Canaria
GRAN CANARIA
33
Lanzarote
LANZAROTE
34
Tenerife
TENERIFE SUR/REINA SOFIA
35
Helsinki-Uusimaa
HELSINKI/VANTAA
36
Paris
PARIS/CHARLES DE GAULLE
37
Paris
PARIS/ORLY
38
Oise
BEAUVAIS-TILLE
39
Haut-Rhin
BALE-MULHOUSE
40
Gironde
BORDEAUX-MERIGNAC
41
Haute-Garonne
TOULOUSE/BLAGNAC
42
Rhône
LYON/SAINT-EXUPERY
43
Alpes-Maritimes
NICE/CÔTE DAZUR
44
Bouches-du-Rhône
MARSEILLE/PROVENCE
45
Budapest
BUDAPEST/FERIHEGY
46
Dublin
DUBLIN
47
Bergamo
BERGAMO/ORIO AL SERIO
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Nr.
NUTS3 region
Airport
48
Milano
MILANO/MALPENSA
49
Milano
MILANO/LINATE
50
Napoli
NAPOLI/CAPODICHINO
51
Catania
CATANIA/FONTANAROSSA
52
Bologna
BOLOGNA/BORGO PANIGALE
53
Roma
ROMA/FIUMICINO
54
Luxembourg
LUXEMBOURG/LUXEMBOURG
55
Riga
RIGA
56
Groot-Amsterdam
AMSTERDAM/SCHIPHOL
57
Miasto Warszawa
WARSZAWA/CHOPINA
58
Grande Porto
PORTO
59
Algarve
FARO
60
Grande Lisboa
LISBOA
61
Bucuresti
BUCURESTI/HENRI COANDA
62
Stockholms län
STOCKHOLM/ARLANDA
63
Västra Götalands län
GOTEBORG/LANDVETTER
64
Bratislavský kraj
BRATISLAVA/M.R.STEFANIK
65
Tyneside
NEWCASTLE
66
Greater Manchester South
MANCHESTER
67
Liverpool
LIVERPOOL
68
Leicestershire CC and Rutland
EAST MIDLANDS
69
Birmingham
BIRMINGHAM
70
Luton
LONDON/LUTON
71
Essex CC
LONDON/STANSTED
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Nr.
NUTS3 region
Airport
72
Outer London - West and North West
LONDON/HEATHROW
73
Surrey
LONDON/GATWICK
74
Bristol, City of
BRISTOL
75
Edinburgh, City of
EDINBURGH
76
Glasgow City
GLASGOW
77
East of Northern Ireland (UK)
BELFAST/ALDERGROVE
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