Airport Bench Marking -Global Perspective

8/14/2019 Airport Bench Marking -Global Perspective

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AIRPORAIRPORT

BENCHMARKING-GLOBABENCHMARKING-GLOBALPERSPECTIVEPERSPECTIVE


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IntroductionIntroduction

An economic benchmark is a standard by whichbusiness performance is measured.

The report measures and compares the performance ofseveral pivotal aspects of airport operations.

Productivity

employee productivity,

capital productivity Revenue generating efficiencies of the respective

airports


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IDENTIFICATION OF PROBLEMIDENTIFICATION OF PROBLEM

Indian airports besides having adequateresources are not able to make properutilization of such resources.


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ObjectivesObjectives

To study and compare the performance of severalimportant aspects of airport operations.

To examine the relationships between variousperformance measures and airport characteristics to

provide better understanding of the observed differencesin airport performance.

To identify best practices for possible incorporation intothe organizations procedures to increase efficiency,

quality and customer satisfaction.


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Contd...Contd...

Identify effects of

Ownership and Institutional forms

Extent of focus on non-aviation (commercial) activities

Extent of outsourcing

on productivity, unit cost, financial performance, and AirportUser Charges

o

To provide Indian airports with meaningful globalcomparison of airports.


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ScopeScope

Nine airports each have been selected from threedifferent geographical regions these are AsiaPacific, Europe, and North America.

For individual analysis the airports with consistentdata on number of runways have been selectedtaking into consideration number of gates as well

as terminal size to reveal efficiency. In some cases data are only available for a group

of airports instead of an individual airport.


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PARAMETERPARAMETERS


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LABOUR PRODUCTIVITY2) Passenger per employee

3) Aircraft movement per employee

4) Workload unit per employee

5) Aggregate output per employee

SOFT COST INPUT PRODUCTIVITY8) Passenger per unit of soft cost inputs

9) Aggregate output per unit of soft cost input

Economic variables


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FINANCIAL RESULTS2) Total revenue per passenger

3) Revenue per employee4) Revenue per movement


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TERMINAL PRODUCTIVITY MEASURES2) Passenger per gate

3) Passenger per square meter terminal area

RUNWAY PRODUCTIVITY6) Aircraft movement per runway

Capacity variables


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ECONOMIC PARAMETERS :ECONOMIC PARAMETERS :

Reveals that its employees are more efficient as they are imparted withregular training to handle passengers. Another reason for this is moreautomated systems being practiced inside the airport terminalsLa Guardias terminals are operated directly by airlines which reduces

the need for more number of employees.


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Efficient employeesTechnically advanced processesAircraft movements for this airport are 5 times incomparison to Oslo and Brisbane and also has efficient staffto manage it.


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Flat governance and management structure.Less international traffic hence demands for less employeesto handle domestic passengers as they require to be servedwith less number of facilities.


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Technologically advanced as compared to other airports for

performing it operations.Being part of Europe it gets updated to new technologiesevery now and then.Winner of the award for punctuality three times by

association of European airlines (AEA).


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Airport provides wide range of passenger and aircrafthandling services by its own.Enjoys economies of scale and feels no need to outsourcethese activities.


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3 new airlines and 23 new non stop destinations have been addedwhich exploit the added capacity with the new terminal.Increased route network by low cost carriers and traditional networkhave realized the potentials of the airport.Business and tourist travel has grown in recent past.


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FINANCIAL RESULTS:FINANCIAL RESULTS:

Most of the Terminal Activities are performed directly bythe Airlines and Major operations are concessioned.More share of non aeronautical revenue.


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Passenger has to pay on his/her ticket for international service ordomestic service as the case may be.Best airport worldwide makes the airport earn by facilitating largernumber of passengers.


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Minimum landing charges is Rs 150000 even when discount is offeredduring off peak period.The airport has more frequent flights with smaller aircrafts which

provides advantage by charging the minimum landing fees.Total operating revenue is very high with high operating margin i.e.67%

TERMINAL PRODUCTIVITYTERMINAL PRODUCTIVITY


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TERMINAL PRODUCTIVITYTERMINAL PRODUCTIVITYMEASURESMEASURES

Practices swing area concept so makes best utilization of its gates.Most of the airlines make use of aerobridges which makes sure that

passengers of particular flight pass through the airline by which they

are going to travel and avoids confusion.


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The airport handles less number of total passengers and also only 3%of international traffic which uses terminal for more time.It has huge space available as compared to passengers it handles, thisensures passengers to feel comfortable inside the terminal building.


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RUNWAY PRODUCTIVITYRUNWAY PRODUCTIVITY

LHR is the third largest airport worldwide the airport and is able to handlemaximum aircrafts per runway because of the parallel runways facilitatesimultaneous operations.Being the busiest airport in passenger traffic handling it is well equipped withtechnologies in the airside to speed up the operations..

It has rapid exit taxiways makes possible maximum utilization of the runways.


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La Guardia International Airport ranks

highest in 4 parameters which makesthe airport an overall benchmark forpracticing strategies worldwide.


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RECOMMENDATIONSRECOMMENDATIONSAirports contract with third party

terminal operators as maximum numberof employees are required in terminal tohandle passenger operations.

Outsourced to airlines which isoperating from that terminal as thiswould resist an airline to deteriorate theservices and it would provide services

more efficiently for the reason toimprove the operations for its ownairline passengers being served.


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Runways built are able to operatesimultaneously as this would make surethat available staff is utilized properly atgiven point of time.

Multitasking manpower.

Indian airports need to take make or

buy decision carefully. Provide passengers with varied services

of better quality.

Increase retail space as it involvesnegligible cost on the part of the airportoperator but provides greater revenue.


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Airport operator can charge premiumcharges if the regulatory authority

allows.Develop competition among airlines to

use the airport.

Practice swing area concept.

Rapid exit taxiways to speed up theoperations per hour to meet growingdemand in future.


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OVERALL SUGGESTIONSOVERALL SUGGESTIONS

Market India, by building a powerful andunique position for the reliable, safe,value-for-money, tourist-friendly brand.

Initiate by playing on volumes to reapthe benefits of economies of scale.

Development of real estate, services,

cargo operations, lounges, basics, F&Boutlets.


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BibliographyBibliography

Air Transport Research Report (ATRS)-2007

Part I Summary report

Part II Full Results and Analysis

Part III Airport Profiles, Methodologies and Data description

www.indiastat.com

Research methodology methods & techniques-C.R. Kothari

www.atrsworld.org- Airport Benchmarking Report by Prof. TaeH. Oum

Airport Benchmarking To Maximize Efficiency 6 July 2006 byAirport Council International
http://www.indiastat.com/http://www.atrsworld.org-/http://www.atrsworld.org-/http://www.indiastat.com/


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Thank YouThank You

Airport Bench Marking -Global Perspective

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