Non-aeronautical Activities Research Articles

Exploring the Performance of International Airports in the Pre- and Post-COVID-19 Era: Evidence from Incheon International Airport

Considering the socio-economic importance of Incheon International Airport, this study explored the changes in its aeronautical and non-aeronautical efficiency between 2001 and 2021. The study was conducted to measure and observe the changes in efficiency during the pre- and post-pandemic era of COVID-19. We employed a two-stage analytical approach to obtain the results using a set of desirable and undesirable variables. For the first stage, we employed a novel network data envelopment analysis–window analysis model to find the efficiency measures; for the second stage, we applied the Tobit regression analysis to observe the impact of some control variables on efficiency levels. The empirical results from the efficiency analysis stage revealed that, although the pandemic negatively affected the efficiency of this airport, the gain from appropriate strategies mitigated the excessive efficiency decline. Moreover, aeronautical activities showed better efficiency than non-aeronautical activities during the study period. In addition, further investigation of the second-stage analysis implied that an outbreak of pandemic diseases such as COVID-19 would dramatically impact international hubs such as Incheon International Airport; however, focusing on the import and export activities, in addition to increasing the connectivity with other airports, would improve the efficiency.

Развитие предпринимательской деятельности аэропорта в условиях цифровой транcформации экономики

The purpose of the study is to determine the share of non-aviation revenues of domestic and foreign airports in the structure of its financial results, to determine the distribution of these incomes from entrepreneurial activities in directions at Koltsovo (Yekaterinburg) and Tolmachevo (Novosibirsk) airports. The scientific novelty of this study lies in comparing the share of non-aviation revenues of domestic and foreign airports and bringing quantitative indicators in the areas of business activities of Koltsovo and Tolmachevo airports. As a result, indicators of non-aeronautical activities were identified by share and by direction, the results of an analysis of global trends in the development of airport business in the context of the formation of a digital economy and the threat of a pandemic are also reflected, data are given on changes in the structure of non-aeronautical revenues of airports, and a conceptual model for the development of entrepreneurial activity of Russian airports is proposed.

Analyzing passenger behavior in airport terminals based on activity preferences

Airport terminals are facilities that provide a variety of activities related to both the preparation of the passengers for their air trip (aeronautical) and their free time inside the terminal (non-aeronautical). In the last years, the number of non-aeronautical activities has substantially increased and significantly diversified both before and after the security checkpoint. The established role of non-aeronautical activities forces planners and managers to better understand passenger behavior. The potential of discrete choice models for the exploration of passenger behavior is analyzed in this paper. For the demonstration of the methodology, Lisbon Humberto Delgado International airport is used as a case study. Data is collected through a revealed and stated preference survey inside the terminal at the area before the security checkpoint. Activity-choice models are developed to identify the factors that affect the choices of the passengers over the area where they conduct non-aeronautical activities. Forecasts show that when increasing the percentage of passengers who conduct the check-in online and have planned their activities before arriving at the airport, the passengers’ preferences to conduct non-aeronautical activities only after the security checkpoint increase. This paper shows the contribution of developing discrete choice models in the better comprehension of passenger decisions over the activities they perform in an airport terminal.

Airport Competitiveness Analysis from Aircraft and Passenger Movement

Air transportation development is strictly related to airport competitiveness, since the airport management seeks to improve the capacity to produce services, increase passenger and aircraft movement, improve revenues from aeronautical and non-aeronautical activities, and optimise the other items related to the competitiveness of this type of organisation. In this sense, this study seeks to identify variables associated with the competitiveness of airports, based on their infrastructures, operations, and locations, which can influence the decision-making of airport managers continuously and efficiently. An analysis of the seven busiest Brazilian airports, in terms of aircraft and passenger movement, has been made, and multivariate data analysis has been used through a multiple regression, verifying the relationship between the variables of airports competitiveness, such as the total area of the airport site, number of aircraft parking positions, number of airlines, quantity of aircraft movementlandings and takeoffs, total number of passengers and the GDP of the city where the airport under study is located. The results present an index of competitiveness for each airport analysed after the data mathematical treatment, showing the coefficients at the general equations form aircraft and passenger movement.

Settlement of Railway Track on Reinforced Ballast Overlain by Clayey

Air transportation development is strictly related to airport competitiveness, since the airport management seeks to improve the capacity to produce services, increase passenger and aircraft movement, improve revenues from aeronautical and non-aeronautical activities, and optimise the other items related to the competitiveness of this type of organisation. In this sense, this study seeks to identify variables associated with the competitiveness of airports, based on their infrastructures, operations, and locations, which can influence the decision-making of airport managers continuously and efficiently. An analysis of the seven busiest Brazilian airports, in terms of aircraft and passenger movement, has been made, and multivariate data analysis has been used through a multiple regression, verifying the relationship between the variables of airports competitiveness, such as the total area of the airport site, number of aircraft parking positions, number of airlines, quantity of aircraft movementlandings and takeoffs, total number of passengers and the GDP of the city where the airport under study is located. The results present an index of competitiveness for each airport analysed after the data mathematical treatment, showing the coefficients at the general equations form aircraft and passenger movement.

Profiling airport travellers based on their perceptions, satisfaction and intention to recommend food and beverage services

Consuming Food and Beverage is one of the most frequent non-aeronautical activities that passengers enjoy at airports and that significantly contributes to airport profitability. Despite this, there is still limited research aimed at analysing passengers’ consumption behaviour of F&B. With the aim to contribute to this somewhat under investigated research area, this study applies a factor-cluster analysis on a sample of 1,139 airport travellers. Results from factor analysis reveal four underlying dimensions of F&B perceptions (i.e. atmospherics, staff quality, value of money, product quality) and one dimension related to satisfaction and intention to recommend airport-based F&B services (i.e. “satisfaction and intention to recommend”). Cluster analysis applied to the scores of the five factors reveal that three clusters exist (i.e. “enthusiastics”, “neutrals” and “price sensitives”). Chi-squared analysis tests show that significant differences exist based on socio-demographics (i.e. age, education level, employment status), travel-related variables (i.e. frequency of travelling) and flight-related variables (i.e. flying and check-in modality). Contributions to the theory, managerial implications and limitations to the study are discussed, and suggestions for further research are made.

Commercial (Business) Parks in the Landside Areas - Research and Polemical Approach

According to the forecasts of the development of air traffic in Europe by 2030, it will be doubled. Along with the dynamic development of the industry, branch and its infrastructure, the area around airports is becoming a place of concentration of diversified commercial activity-economic, investment, business, cultural etc. The vicinity of airports, airport-related zones, especially in the immediate vicinity, are convenient roundabouts are convenient locations for commercial (business) parks due to high availability of air transport, supply of land for investment and infrastructure investment for these areas. They are managed from the level of airports as part of their non-aeronautical activities or by entities independent of the airport. The strength of these locations is demonstrated by the activities of airport managers, investors and local government officials whose goal is to attract foreign companies (users of modern real estate in so-called airport towns). The aim of the article is to analyze the development processes of these functional space structures, including those related to the Gdańsk Lech Walesa Airport. Theresearch process uses the methodology developed by ACI (Airport Council International), and some results and opinions are the effect of in-depth studies and author’s experience.

Assessing Non-aeronautical Activities at Cairo International Airport

Nowadays, airports enterprises are not limited with the aviation services but they include also the non-aviation ones. Thus, they are targeting to enlarge their commercial activities for the purpose of gaining revenues. Therefore, there is a growing attention towards the development of these activities. The objective of this research is to assess the non-aviation (non- aeronautical) activities at Cairo International Airport by comparing it to Singapore Changi airport. A checklist was formulated based on the non-aeronautical services provided at Singapore Changi airport containing 9 main items divided into sub-items related to the main one. Data collected depend on the observation at Cairo International airport and from the navigation of the two websites of both. The overall findings refer to the marked gap between Singapore Changi airport and Cairo International airport especially in the entertainment and passengers’ services for the businessmen and the VIPs.

Investigação sobre a relação entre as características do terminal de passageiros aeroportuário e as receitas não aeronáuticas

Com os elevados custos associados do setor aéreo, os aeroportos enfrentam um grande desafio que é o de maximizar suas receitas. Para isso, nota-se que a ampliação das receitas provenientes de atividades não aeronáuticas aparece como uma possível solução. Nesse contexto, o objetivo deste artigo é realizar um estudo econométrico sobre as receitas não aeronáuticas dos aeroportos da rede Infraero, a fim de entender sua relevância para o operador, e quais parâmetros influenciam a captação desse recurso. A partir dos resultados obtidos observou-se que a participação da Receita Não Aeronáutica (RNA) sobre a Receita Total aeroportuária é de 54% e que os parâmetros mais relevantes para explicar tal receita dessa natureza são: (i) movimento de passageiros, (ii) área do terminal de passageiros, (iii) capacidade do estacionamento e (iv) lojas após o controle e inspeção de segurança.

Modelling Passengers’ Activity Choice in Airport Terminal before the Security Checkpoint: The Case of Portela Airport in Lisbon

Airports are transport facilities that accommodate both processes related to the passenger air-trip and usually many non-aeronautical activities. This paper aims to explain and predict passenger activity choices at the airport terminal area before the security control. Lisbon Portela airport was used as a case study and pertinent data was collected at the airport by the authors. A multinomial Logit model was estimated to explain passengers’ choices regarding activities in the terminal and more specifically, whether passengers choose to perform only aeronautical activities before the security checkpoint or they choose both aeronautical and non-aeronautical activities. Aspects such as travel frequency, travelling for business, performing the check-in online and having planned the activities before arriving at the airport influence the passengers towards not performing discretionary activities before security. Passengers travelling to international destinations while not living in the city of the airport and passengers arriving at the airport accompanied by friends or relatives were more likely to use the non-aeronautical areas. When testing an increase in the proportion of the passengers who complete the check-in online from 30% to 70%, we found that the share of the passengers who perform only aeronautical activities would increase from 47% to 53%. This modelling approach can be used when analyzing scenarios of the airport's operations in the future considering changes in passengers’ behavior.

The concept of business model: evidence on non-aeronautical activities from the Italian airport industry

The business of non-aeronautical activities in airports has evolved into a particularly dynamic and competitive industry during the last decades. Indeed, the intense competition within the airlines' sector and changes in airport ownership patterns have led to the reduction of profits derived from aeronautical activities. As a consequence, attention has been shifted towards commercial returns and non-core airport services. According to this preamble, this paper aims to offers an analysis of the business model concept in the airport industry by considering the specific case of non-aviation revenues (NARs). In addiction, the paper tries to present a theoretical analysis on the relationship between business strategy and business model in the specific context.

Quantifying the Effects of Activity Concentration at Airports on Public Transport Using an Iterative Reduction Procedure

Airport locations are increasingly the place of non-aeronautical activities. This is driven by airport operators seeking non-aeronautical revenues and real estate investors attempting to profit from major airports as high value locations. The resulting higher densities lead to more travel to and from the location. Travellers induced by non-aeronautical activity are likely to behave different than those induced by aeronautical activity. Consequently, there are potentially not only more, but also more public transport prone travellers. This can improve the viability of operating high quality public transport services. However, as demand of the different traveller groups is likely distributed differently, it also needs to be studied whether the superimposed demand affects the peaking behaviour of travel demand in a beneficial, balancing, or negative, exacerbating, way.For the analysis, an iterative reduction procedure is proposed that begins with a network of highest quality services. Considering demand elasticity and minimum loads to viably operate a service, network elements are degraded and demand is recalculated iteratively until only viable services remain. This procedure is applied to a case study of Zurich, where large scale commercial activities and a public transport hub are located at the airport. It was found that the non-aeronautical development already contributes decisively to public transport use and without it, severe service reductions might be necessary. Furthermore, the compound demand distribution is more even than that of the individual traveller groups, resulting in a landside transport hub that can be operated more efficiently than facilities in conventional locations. Future growth of the airport location will increase this effect and further service expansions may become an attractive option.It is concluded that the high connectivity of airport locations is an opportunity to drive development patterns conducive to public transport use. In addition, airports can be efficient locations for transfer centres as there, if their locations are suitable, sustained high demand with less variation throughout a day allows for a better utilisation of services and facilities.

Effects of non-aeronautical activities at airports on the public transport access system: A case study of Zurich Airport

Many planning authorities and airports study measures to increase public transport use for airport ground access and egress. At the same time, an increase in real estate development at and around airports is occurring, both due to airports seeking new revenue possibilities and other developers attempting to profit from high value locations. This paper considers non-aeronautical activities at large airports, largely commercial centres and transit hubs, as land uses that have the potential to improve the situation for operating public transport services. In order to assess potential benefits and disadvantages, four research questions are considered: (1) Can the additional travel volume reach levels at which it has a significant impact? (2) To what extent do non-aeronautical activities influence the public transport access system? (3) Is the resulting demand distribution better or worse regarding peaking behaviour? (4) Is there a potential for the resulting overall demand to bring about capacity shortages?A case study is conducted at the airport of Zurich, Switzerland, which finds that non-aeronautical activities in the direct airport vicinity have led to a situation where the operation of public transport services is much more viable due to overall higher passenger numbers and a more even distribution throughout the day. It is concluded that locating non-aeronautical activities at airports can, in addition to providing commercial benefits to developers, lead to a situation where improved public transport services become feasible.

Policy approaches to public transport at airports—Some diverging evidence from the UK and Australia

The growth of aeronautical and non-aeronautical activities at airports not only creates capacity constraints but also has a substantial impact on the airport’s environmental footprint. This paper discusses the different approaches to ground access at airports in the UK and Australia. In the intensifying debate on how to address transport congestion and the related environmental degradation (i.e. CO2 emissions), public ground transport can be seen as a potential cornerstone in an airport’s effort to address the issue. It is hence unsurprising that a key element of the UK airport approach has been to promote a shift from the private car to more sustainable transport options for both passengers and employees. Surprisingly, Australia appears (despite its relative poor environmental performance) to focus much more on the expected growth of aviation activity and measures that will aid in addressing the resulting road congestion. In contrast to UK airports, Australian airports do not use environmental targets or educational measures in their ground access plans. Our findings and the lessons learned from the UK approach suggest that more sustainable ground transport strategies could aid Australian airports in reducing their transport congestion and resulting carbon footprint.

In praise of hybrids

In setting cost-based airport charges, there has been an extended debate on the relative merits of single till regulation (under which aeronautical charges are set to cover all costs less non-aeronautical income) and dual till regulation (under which aeronautical charges recover only aeronautical costs, with non-aeronautical income not taken into account). As non-aeronautical activities are often highly profitable, airlines typically strongly support single till approaches in order to benefit from these profits, while airports correspondingly typically support dual till. In this polarised arena, hybrid approaches tend to be portrayed by academics, airports and airlines as unsatisfactory second bests, lacking in rigour. In contrast, this paper explores the drawbacks in the extreme positions, and examines why hybrids may have significant practical advantages. In particular, a hybrid approach may reduce the setting difficulties and perverse incentives associated with single till, while offering the prospect of lower charges than dual till. The paper goes on to examine some of the practical implications of different approaches to deriving the commercial contribution and the benefits of hybrid approaches for transitional purposes. Overall, it concludes that hybrid approaches, despite their neglect, have major practical benefits and should form an important option in regulatory considerations.

Two faces of airport business: A non-parametric analysis of the Italian airport industry

In this paper, we use data envelopment analysis to evaluate the impact of regulatory reforms on the technical efficiency of 28 Italian airports between 2000 and 2006. The analysis utilizes two model specifications for airport activities: the first includes aeronautical activities, and the second both aeronautical and non-aeronautical activities. This allows evaluation of the impact of commercial activities on overall airport efficiency. The results show that different model specifications of airport activities can substantially affect policy conclusions; and that major sources of efficiency gains can be obtained from airside activities, private-capital inflows to airport management companies, types of concession agreements and the liberalization of handling services.

Managing Neoliberal Urban Spaces: Commercial Property Development at Australian Airports

Airports are remaking Australian cities as they remake themselves as privatised enclaves of commercial entrepreneurialism. In line with overseas trends towards airport cities, all major federally leased Australian airports now derive a significant proportion of their revenue from non-aeronautical property development. New land uses such as direct factory outlets, big-box retailing, and even brickworks have proven most controversial. State governments, local councils, community groups, industry, and professional associations have expressed concerns about these commercial developments with statutory responsibility for development approvals vested solely in the federal government. The paper draws on the concept of ‘actually existing neoliberalism’ to interpret the making of the new market-driven airport spaces, the controversies which have ensued, and the re-regulatory interventions of the Commonwealth required to address community tensions. The debate about development of non-aeronautical activities on federally leased airport land is explored through the lens of the National Aviation Policy Review. The recommendations of this Review aim to incrementally reconfigure the policy commitment to ‘light handed’ regulation but future planning conflicts seem inevitable.

Real estate, factory outlets and bricks: A note on non-aeronautical activities at commercial airports

This note considers the degree of complementarity of non-aviation activities to airside activities at airports in relation to airport governance and regulation. A simple economic model of airport operations is employed to draw the distinction between complementary and non-complementary non-aviation activities by airports and the effect of these activities on aeronautical prices and competition.

Evaluating the potential impact of alternative airport pricing approaches on social welfare

One of the key issues air transportation policy-makers face is whether it is preferable from a regulatory perspective for airports to adopt a single-till or dual-till pricing approach. This study analyzes the potential loss of social welfare as a result of adopting a single-till or dual-till approach in three airport pricing scenarios. Findings show that the single-till approach is preferable where excess capacity of aeronautical services exists, while the dual-till approach is preferable where capacity is fully utilized or already over-utilized. A single-till approach induces airports to bear financial losses from aeronautical services and subsequently a cross-subsidy by profits raised from non-aeronautical activities is required. The dual till-approach enables congested airports to break even on aeronautical service and pursue profits from non-aeronautical activities.

Revenue and investment management of privatized airports and air navigation services—a regulatory perspective

Along with the burgeoning need for an increase in airport capacity to accommodate the demand for increasing air transport capacity comes the issue of proper fiscal management of income derived by airports and air navigation services providers. Airports are showing much success at earning income from shopping malls, car parks, boutiques and other similar activities within the airport premises. Non-aeronautical revenues, as this income is called, has risen from 30% of the total airport revenue in the late eighties to 52% today. Airports are keen on using their commercial revenues to help cover the costs of huge investments being made on infrastructure. However, the “single till” approach, which is widely used and takes into account both charges imposed on airlines and passengers for using aeronautical services and income derived from non-aeronautical activities as a single income source when setting charges, has been criticized as creating a cross subsidy whereby profits from commercial activities are used to offset aeronautical costs. Intrinsic to the issue of revenue and investment management are considerations of cost pricing and liability and duties imposed upon a privatized entity, which in turn have to be managed if successful revenue and investment management were to be accomplished.