ADILET BAIGUTTIEVMEREKE UATAYKHALIDA DIKHANBAYEVA SUNGAT SOVETOV Sovetov

AIRPORTKTW AVIATION PROJECT

PHASE 1

CATHMENT AREAGROUND ACCESEBILITY BUSSINES MODEL

UITM 2015

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AVIATION PROJECTPhase 1

Table of contentsBUSINESS MODEL.......................................................................2OWNERSHIP......................................................................................2DEVELOPMENT OF AIRPORT.............................................................2AVAILABLE LITERATURES CONCERNING AIRPORT BUSINESS MODEL:3CHARACTERISTICS OF KATOWICE AIRPORT.....................................4GROUND ACCESSIBILITY OF KTW...................................................5GROUND ACCESSIBILITY OF KTW...................................................5DEFICIENCIES OF PUBLIC TRANSPORTATION....................................8RECOMMENDATION FOR IMPROVEMENTS.........................................8FUTURE GROUND ACCESSIBILITY DEVELOPMENT.............................8GROUND TRANSPORTATION AT NATIONAL, REGIONAL AND LOCAL LEVEL...............................................................................................9MARKET POSITION OF KATOWICE AIRPORT.....................................9CATCHMENT AREA FOR KTW AIRPORT...........................................9APPROACHES TO DETERMINE CATCHMENT AREA...........................10CATCHMENT AREA ANALYSIS........................................................11FACTORS DETERMINING CATCHMENT AREA...................................12CATCHMENT AREA OVERLAP.........................................................12KATOWICE CATCHMENT AREA.......................................................12CALCULATION ON KATOWICE AIRPORT CATCHMENT AREA...........13REFERENCES...................................................................................17

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BUSINESS MODEL

OwnershipThe owners of Katowice airport is joint stock company Upper Silesian Group that was founded by government in 1991 for develop the air industry in region.

Development of airportIn 2015, the center of European Union Transport Projects decides to invest money for "development of Infrastructure in order to increase the operational capacity of Katowice Airport" the relevant documents were signed with Upper Silesian group.

The project includes 5 tasks:

The modernization of the existing, and construction of a new hangar organization of water and wastewater system - Stage I ( upgrading the

drainage system at the airport ), construction of a new CARGO base - stage 1 (construction of cargo apron

and taxiway E0), construction of an arrivals terminal Organization of water and wastewater system - Stage II (construction of

aircraft de-icing station).[1]

The total value of the project is 182 million PLN, of which close to 71.5 million PLN will be co-financed by the f co-financing from the Cohesion Fund ( Operational Programme Infrastructure and Environment).Several of the projects listed in the project have already been completed - such as the modernization of the existing hangar and the construction of a new hangar and the reorganization of water and wastewater - Stage I. The remaining tasks will be completed by September 2015.[1]

Single till Single till recognizes the demand and revenue complementarities between aeronautical and Non-aeronautical services.Dual till

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Focuses only on the regulated business to avoid distorting the commercial, non-aeronautical Airport service provisions.[3]

Available literatures concerning airport business model: Review of Airport Business ModelsComprehensive Review of Airport Business Models, Zhang Qin 1 Dec 2010[2]

1) Government owned and Operation modelExample: Asia-Pacific, Africa and Latin America. 2) Public Private Partnership3) Partial/Full PrivatizationIt has become the fundamental feature of aviation industry since 1987Evolution of airport business models, Kelly Dungey[4]

Paxopolis business model (oriented on passengers)Aerotropolis business model (Logistic hub, oriented on cargo)Airport city business models (Combined)Traditional Airport Business Models

General aviation airport categories [5]

Role Description

National Supports the national and state system by providing communities with access to national and international markets in multiple states and throughout the United States.

Regional Supports regional economies by connecting communities to statewide and interstate markets.

Local Supplements communities by providing access to primarily intrastate and some interstate markets.

Basic Links the community with the national airport system and supports general aviation activities (e.g., emergency services, charter or critical passenger service, cargo operations, flight training and personal flying).

Unclassified

Provides access to the aviation system.

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Definition of Airport Categories [5]

Commercial Service Airports are publicly owned airports that have at least 2,500 passenger boarding each calendar year and receive scheduled passenger service.

1) No primary Commercial Service Airports are Commercial Service Airports that have at least 2,500 and no more than 10,000 passenger boarding is each year.

2) Primary Airports are Commercial Service Airports that have more than 10,000 passenger boarding is each year.

Cargo Service Airports are airports that, in addition to any other air transportation services that may be available, are served by aircraft providing air transportation of only cargo with a total annual landed weight of more than 100 million pounds.

Characteristics of Katowice airport

The stake holders of Katowice airport is join stock company Upper Silesian group which was founded Katowice airport for develop the regional aircraft industry and support the economy of this region. In addition, Katowice airport is public serve airport, which oriented in passenger’s flights, moreover airport also dealing with Cargo but the number of cargo operations a small compare with passengers flights. Airport in Warsaw is only one hub airport which dealing transit passengers in Poland others is only secondary airports include Katowice. By materials what we have in this report as a conclusion for characteristics of Katowice airport we prepare main bullets for describe it shortly.

Regional Public service Government owned Commercial service: Primary Secondary airport Passenger oriented Non Cargo

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Ground Accessibility of KTW

KTW Airport is located in the town of Pyrzowice, 30 km northwest of Katowice, and is accessible via the new highway opened between the Podwarpie junction and the terminal building. Passengers traveling by car from Katowice should take the S86 express road and follow the signs to Pyrzowice.[11] There is an hourly bus service between Katowice city center and the airport. The bus leaves every full hour from Katowice Main Railway and stops near Altus Building, Novotel Katowice and in Sosnowiec (Center Milowice Shopping). It takes approximately 50 minutes to get from center of Katowice to the airport.[1]

Ground accessibility of KTWAirport’s bus

Katowice Centre - Katowice International Airport Katowice International Airport - Katowice Centre Matuszek Buses run everyday:

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Kraków - Katowice International Airport – KrakówP-Air PyrzowiceEkspres.pl Bus Services (WIZZ AIR official carrier)Routes: Kraków – Katowice Airport Częstochowa – Katowice Airport

Bus connections from other largest cities of the region, such as Krakow (about 75 minutes travel), Czestochowa and minibus - inter alia from/to Opolo, Wroclaw etc. are also available[11]

The example for taking the bus from the airport, I have taken the schedule of

the arrival flights and busses then added to it around 45 minutes that will take

some time for passport controlling and taking your baggage. It is almost

suitable but not for every one.I have calculated below how long the

passengers have to wait.

10:00 FRANKFURT (FRA)LH 1356 10:45

10:35 STOCKHOLM - SKAVSTA (NYO)W6 1202 12:50( have to wait 30 min)

10:50 OSLO - TORP (TRF)W6 1216 14:40(have to wait 3hours and 5 minutes)

11:30 LONDON - LUTON (LTN) W6 1002 14:40(have to wait 2hours and 25

minutes)

12:30 SCHONEFELD (SXF) IZ 461 14:40(1hour 25 minutes)

14:20 MALMO (MMX) W6 1210 15:20( have to wait 15 minutes)

14:35 LONDON - STANSTED (STN) FR 8266 15:20

The best option for you is to get tickets on :

It provides a connection to the following places on the map:.

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[10]

If you have a lot of time and the same time you do not want to spend money and you would like a bit observe this city you can take local buses (KZKGOP no:85,17)connect to the city of Bytom where one can change for bus (820,830) to Katowice (820,830), which is the cheapest but time consuming option.

Two more options to reach to the center or to other cities you can either take a taxi or to rent a car

The taxi can drive you from Airport to the following cities.The taxis provided by Airport also.

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[1]

For example to reach to the center of Katowice (40km)will cost 160zlotych,

So you have to choose best option to you.

Deficiencies of public transportationDeficiencies of public transportation services to KTW Airport is rarely night line bus and there is no direct connection by train

Recommendation for improvements Recommendation for improvements by building a train station in Katowice airport is providing direct rail connection from Katowice city, Krakow, which will improve the markett.

Future ground accessibility developmentNow there is no big need in the improve of the ground connection to the airport. There is a possibility to put some more express morning trains from Krakow to Katowice. On one hand, technically such step will increase the catchment area of the KTW airport. However, the reality will be so, that the KRK airport will become more competitive. It is bigger and provides more convenient connections to more destinations. So the improve of the connection between the two cities may extremely decrease the success of the KTW airport.

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Ground transportation at national, regional and local level Ground transportation developments

- Increase area of the parking space

- Construct smooth roads for comfortable ride

- build more gas stations

- Improve Railways

- increase the number of buses

Market position of Katowice Airport :

Passengers:

2007 - 1 995 914

2008 – 2 426 942

2009 – 2 364 613

2010 – 2 403 253

2011 – 2 544 124

2012 – 2 550 848

2013 – 2 544 198

2014 – 2 695 735

2015 – 2 722 907[1]

Catchment area for KTW Airport.Catchment area is the area from which a city, service or institution attracts a

population that use their services. Where most of the outbound passengers come from, or where most of the inbound passengers trip to, so the airport marketers will tend to focus their marketing attempt on this area.

Katowice Airport is situated over 34km from the center of Katowice. Junction of A1 Motorway, A4 Motorway and S1 Expressway to Katowice Airport. The airport is

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located near the important communication routes of Poland and Europe.  Central location – in Upper Silesia – a very large and continually growing region with huge economic potential (the Katowice agglomeration, special economic zones, new industrial investments). The Silesian region is the most industrialized and urbanized regions in Poland and is amongst the most developing regions in the country.[1]

The Katowice International Airport in Pyrzowice serves the most industrialized region in Poland, one of the most urbanized areas of Europe.11 million inhabitants are estimated to live within 100 km of Katowice. This is a larger catchment area than many airports in Europe.[12]

Approaches to determine catchment areaCatchment areas based on isochrones (with in which it is possible to reach the airport

or around the airport) analysis (The area within a given isochrones indicates the area over which it is possible to reach the airport in a certain time) isochrones for Katowice International Airport in Pyrzowice is possible to construct two-hour drive-time, or two-hour public transport isochrones.

The available direct airline connections and attractive offer of low-cost carriers as well as internal analysis all lead to a potential extension of the Krakow Airport catchment area. This area includes parts of territories of neighboring countries –Czech Republic and Slovakia – and is located within a radius of 190 km from the airport, with access time of circa 120 minutes. This area includes around 11 million people.

A distinction can be made between primary & secondary catchment area:

Primary catchment area: It is the nearest area around any retail store. As it will have maximum number customer visiting store from this area. People in this area will be having demand for all kind of product offering from specific retail store. Primary catchment area marked below in the map with the driving time of 60 min (1 hour).[13]

Secondary catchment area: This area is little far away from primary area. Generally people from this area will have less visits than primary area and will have less demand. As there can be other stores in their neighborhood. It can be within 5 kilometer radius from the store. Secondary catchment area marked below in the map with the driving time of 120 min (2 hour). [13]

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Catchment area analysisCatchment area analysis could therefore provide an initial indication of the patterns

of substitution between the various neighboring airports, but methodological differences between catchment area analysis and the definition of the relevant market framework mean that supplementary evidence would need to be considered when defining the relevant geographic market. This analysis is based on actual usage patterns, and so requires few assumptions to be made in order for it to be undertaken. A catchment area analysis calculates distance zones to various locations, based on associated customers. 

Real catchment area depends also on the type of passenger. It is supposed that business passengers tend to value their time more than recreational passengers do. According to CAA study, (CAA 2011) business passengers are not keen to spend more than an hour getting to and from airport. On the contrary, two-hour transport time is still acceptable for recreational passengers.

Catchment area analysis can support forward-looking analysis by providing useful evidence of the potential for the developing KTW Airport for the population domiciled in their proximate districts. The abstract nature of this analysis means that it is not influenced by actual passenger choices and underlying market conditions such as economic regulation or ownership structure, and so can suggest the potential for competition under different market conditions.[7]

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Factors determining catchment area Land area Distance Language spoken Population Income Parking Marital status Drive time Employment level

Potential passengers within this areas will make their choice of airport dependent number of factors, including fare levels, service level, preferred airlines, parking and so on.

Catchment area overlapCatchment areas illustrate overlaps between all airports in the regions being

considered. However, the services offered at these airports may be differentiated in such a way that limits competition between them. Consequently, there could be fewer airports in the same relevant market than indicated by the catchment area analysis.

Overlapping catchment area for KTW includes 2 major airports such as, Krakow and Wroclaw in terms of 2 to 3 hours’ drive time, passenger service, comparison of ticket price, standard of airline, flights timetable, airport infrastructure, and last but not least the distance to airport are the key issues for passengers during the purchasing process.

Surface travel times and overlap maps can provide a helpful indication of the districts from which the Katowice airport may potentially attract passengers, while the overlaps suggest the areas over which there could be more competition for potential passengers. However, such maps do not take into account any variations population densities in the different districts, which could influence the importance of a district to an airport. For example, a populous district over which four airports’ catchment areas overlap would suggest that there could be a greater potential scope for competition than the same overlap over a sparsely populated district.

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Katowice catchment area

Calculation on Katowice airport catchment areaDescribing the catchment area is a process usually using map as a tool. Our source of

the maps is Google maps, calculating the routes (travel time by car to the airport). The table of 30 calculated points each on the distance of 2 hours driving by car to the airport is above. As we can see it is a circle, but by drawing concentric circles around the airport based on maximum allowable access time because of different quality of roads and different geographical situation around.

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Reference Points

X Coordinate

Y Coordinate

1 50.0158 20.939762 50.114548 20.8469483 50.156799 20.7391914 50.208202 20.5742385 51.585003 19.1332876 51.141993 17.0349537 50.367586 17.4036388 49.438522 18.7726429 49.533438 19.447552

10 51.782823 19.44556911 51.451577 18.65081312 50.261550 17.38993013 51.458050 18.82506614 51.162038 16.95977915 51.663971 19.64235616 51.656839 19.65385217 49.992632 17.45446718 49.897421 17.57178919 50.128711 17.06282920 51.661663 19.37505821 50.525229 20.69493222 50.517569 20.56482223 50.615266 20.75159024 51.135196 17.02722525 51.069659 17.30737626 51.468333 18.85095527 51.382705 18.62573528 51.265991 17.99402229 51.052397 17.69189830 51.093815 17.834720

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Population

Approximately a total of 10500000 people inhabit the catchment area of Katowice airport.

Reference Points

X Coordinate

Y Coordinate

1 50.636863 17.6162262 51.043268 17.0055343 51.016060 18.6240524 50.384983 17.6564215 51.203425 19.1469186 51.200327 19.4963747 51.235401 20.0862738 51.219373 20.8677529 50.798163 20.485644

10 50.916524 20.70835911 50.777790 21.08738712 50.607013 21.20537313 50.428882 21.27678414 50.322032 21.68053215 50.116416 22.08153316 49.942713 21.83708517 49.680401 21.76567418 49.304889 21.26130219 49.597491 21.51228720 49.100081 20.19942121 49.150407 20.82564222 49.056903 20.29280523 49.062789 18.92170824 49.437493 18.78712625 49.679793 18.36964526 49.756153 18.00709627 49.936805 17.89174028 50.086832 17.69123929 50.494189 17.59032830 50.317386 17.571102

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And population of overlap between catchment areas of Katowice airport and Krakow aiport is approximately 7300000

References1. The official website of Katowice airport2. Comprehensive Review of Airport Business Models, Zhang Qin 1 Dec 20103. https://www.iata.org/policy/Documents/single-till.pdf 4. Evolution of airport business models, Kelly Dungey5. Federal aviation administration 6. Official website of Krakow international airport7. Civil Aviation Authority (2011), Airport market power assessments, Catchment area analysis

Working Paper, October 20118. Journal of Transport Geography, Volume 15, Issue 4, July 2007, pp 231–244 wpdata.pl //

http://wbdata.pl/dostepnosc-drogowa-polskich-lotnisk (referred on: 17/11/2014)9. Lieshout R. (2012), Measuring the size of an airport’s catchment area, Journal of Transport

Geography, Volume 25, November 2012, pp 27–3410. http://www.tigerexpress.eu/pl/

Katowice catchment area Katowice and Krakow overlap are

Gminy and Cities PopulationGminy and sities

population

Łódzkie2 537

564Śląskie

4 629 989

Opolskie1 015

583Katowice 408 000

Śląskie4 629

989tarnowski 193652

ostrzeszowski 725896wielicki 245285

 bełchatowski 119556

 oświęcimski 178555

1/2 łódzki wschodni 54888

ostrava 800000

radomszczański136

006,00czestohowa 300027

Powiat koniński 123000Bielsko-Biała 502645

wielicki 245285

 oświęcimski 178555

total of overlap 7 258 153

tarnowski 193652

Katowice 408 000

total10 367

974

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11. Wikipedia, the free encyclopedia12. The Regional Impact of Low-Cost Carriers - case study of Katowice and Skavsta Airports13. Mandeep Kumar, NITK Surathkal

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