Airport Business Mgmt - Polish Airport Market Analysis


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Airport Business Mgmt - Polish Airport Market Analysis

  1. 1. CA2003C – Airport Business Management Semester Paper Magdalena Anna Fas No. 07021435
  2. 2. CA200 C – Airport Business Management Semester Paper Table of contents: 1. Introduction ……………………………………………………………………………………….3 2. Market environment …………………………………………………………………………….4 a. Country data ………………………………………………………………………….4 b. Polish air transport market in the world …………………………………………….4 c. Polish air transport market – characteristics ………………………………………6 d. Present and future infrastructure …………………………………………………….7 3. Ownership issues ……………………………………………………………………………….12 4. Key management issues ……………………………………………………………………...14 5. Performance benchmarks ……………………………………………………………………15 5. Business partners ………………………………………………………………………………...17 6. Summary ………………………………………………………………………………………….18 7. Annex ……………………………………………………………………………………………..19 8. Bibliography ……………………………………………………………………………………..20 Magdalena Anna Fas No. 07021435 Page 2
  3. 3. CA200 C – Airport Business Management Semester Paper 1. Introduction Past twenty years have brought a great deal of changes in Eastern Europe. The region has been subject to a continuous stream of alterations in all areas of public and private life. Being the biggest and most-densely populated country east of Germany, Poland’s case was the most evident example of how difficult that change may be. Although still fighting ghosts of the past, two decades later the country prides itself with a stable economy growing at a considerable rate. EU access in 2004 and the recent admission to the Schengen area accelerated adaptation to the European norms facilitating business development and increasing citizens’ mobility. Air transportation has not remained unaffected in the course of transformation. Also, the post-EU-access LCC-invasion on Eastern Europe put additional pressure on nation’s airport infrastructure. A four-fold increase in passenger numbers over past eight years, estimated steady growth through 2030, still relatively low mobility of Poles and underdeveloped facilities are the major factors making Poland a good investment opportunity. Magdalena Anna Fas No. 07021435 Page 3
  4. 4. CA200 C – Airport Business Management Semester Paper 2. Market environment: In the following chapter the key features of the polish air transportation market will be highlighted to give the reader a broad background and enable a quick recognition of airport investment potential. a. Country data (also see Annex): Poland belongs to the largest countries of the European Union (EU) with a total area of 312.7 thousand sq. km. Its favorable location in the heart of the continent gives it a huge transit potential which has so far materialized mainly in road and rail transport. As per air transport, this opportunity is yet to be taken advantage of – relative weakness and internal problems of the country’s national carrier (LOT Polish Airlines S.A.) as well as a strong competition in the region (Lufthansa, CSA, Malev, Austrian Airlines, etc.) and infrastructure underdevelopment has prevented Poland from becoming a major player in the west-east transfer market. Population density of 122, below the European average, may be misleading as the urbanization rate is relatively high with estimated 75% of the 38 plus million Poles being concentrated around several major metropolitan centers or living in urbanized areas. In the course of transformation the structure of polish economy underwent dramatic change with employment structure shifting away from heavy industries and agriculture towards services. Currently, around 60% of active workforce belongs to the services sector the reminder being divided almost evenly between heavy industries and agriculture. A year on year increase of Poland’s GDP oscillates around the 5% mark positioning the country well for the future. b. Polish air transport market in the world In 2006 Polish airports saw more than 15.3 million travelers which constituted more than a 30% increase on the 2005 figures. In Europe, average airport traffic increased by 7% in the same period. Warsaw airport, historically the busiest polish airport, experienced the steepest increase handling over a million passengers more than year before. Krakow, Gdansk, Wroclaw and Katowice followed. Traffic forecasts are not unanimous about the bright future of polish market, although the polish Civil Aviation Office (ULC) gives more conservative growth estimates than for example the Regional Airports Association. Even so the ULC forecasts are positive and useful for formulation of the low growth scenario for passenger traffic growth at polish airports. Magdalena Anna Fas No. 07021435 Page 4
  5. 5. CA200 C – Airport Business Management Semester Paper Pax traffic development 2005 -2030 63.8 Polish airports 51.4 source: ULC 41.5 30.4 22.3 18.4 20.3 15.3 16.4 11.5 2005 2006 2007 2008f 2009f 2010f 2015f 2020f 2025f 2030f The International Air Transport Association estimates passenger traffic in Poland to grow ransport by more than 11% yearly through 2009 – the highest growth rate projected for airport traffic for anywhere in the world (among countries with a minimum of 2 million yearly travelers). ULC expects the traffic to grow at an at least 10% rate through 2010 with a pects stable 6-7% year on year growth until 2020. Such robust forecasts mean that polish 7% airports immediately require major investment in infrastructure as otherwise they will not be able to cope with the increased demand. Countries with over 2 million annual pax ranked by avarage annual growth rate in 2005 - 2009 source: IATA Poland China Czech Republic Qatar Turkey Romania Malaysia India UAE Pakistan Republic of Korea 0 2 4 6 8 10 12 Jordan % Growth Australia Magdalena Anna Fas No. 07021435 Page 5
  6. 6. CA200 C – Airport Business Management Semester Paper c. Polish air transport market – characteristics: The structure of air travel in Poland has changed visibly over last five years. Historically, the market share of regional airports was marginal due to a high centralization of overall traffic whereby the Warsaw airport held the primary role. Notably, the monopolistic position of PLL LOT S.A. made a great contribution to the prolonged discrimination of regional airports. The latter are however expanding at a fast pace, ation with checked-in passenger figures growing by two thirds on previous year’s figures both in two-thirds in 2006 as in 2007. Increase in passenger traffic in Warsaw did not exceed 15% per year in the same period. In 2007, for the first time did the regional airports handle more traffic airports than Warsaw which share in the overall traffic is expected to further decrease reaching some 40% by 2020. Polish Airport Market Passenger traffic at Warsaw Warsaw-Okecie - 2004 and regional airports 2002 - 2020 source: ULC WAW source: ULC KRK 4% 5% 2% 4% KTW 24 7% WRO 9% 69% POZ GDN 16 Other 9.9 9.3 8.1 7.3 Polish Airport Market - 7.1 2007 6.1 4.4 4.9 5.2 WAW source: ULC 2.7 1.9 KRK 1.6 9% 5% 5% KTW 7% 48% WRO 2002 2003 2004 2005 2006 2007 2020f 16% POZ 10% GDN Warsaw-Okecie Regional airports Other The robust post-2004 growth is for its most part attributable to the low cost carriers’ entry 2004 low-cost which greatly stimulated demand offering a convenient product at affordable prices. mand As shown at the chart below, the LCC participation in the polish market experienced a four-fold growth in the three years after the 2004 liberalization of the skies with major fold low-price airlines being Ryanair, WizzAir and easyJet. Unlike PLL LOT which has been g reorganizing its network around its Warsaw hub, LCCs opt for pointpoint-to-point proposition point that boost traffic figures in centers away from the capital and are as such welcomed in Magdalena Anna Fas No. 07021435 Page 6
  7. 7. CA200 C – Airport Business Management Semester Paper the regions. This trend shall continue into the future in spite of the current economic difficulties. Changes in market structure 2004 - 2006 source: ULC 100% 80% Other 60% LCC 40% PLL LOT 20% 0% 2004 2005 2006 d. Present and future infrastructure Currently, there are ten airports serving scheduled international traffic, of which the last traffic, four are small regional airports that experienced a particularly high growth in last 4 years: - Warszawa Okecie (WAW) - Krakow Balice (KRK) - Katowice Pyrzowice (KTW) - Wroclaw Strachowice (WRO) - Gdansk Rebiechowo (GDN) - Poznan Lawica (POZ) - Szczecin Goleniow - Rzeszow Jasionka - Lodz Lublinek - Bydgoszcz Szwaderowo Major airports - development 2004 - 2007 Source: ULC GDN POZ WRO KTW KRK WAW 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 Pax 2007 2006 2005 2004 Magdalena Anna Fas No. 07021435 Page 7
  8. 8. CA200 C – Airport Business Management Semester Paper Of the established airports (WAW, KRK, KTW, GDN, WRO, POZ), none is free of concerns related to the dynamic development of demand and all of them have a significant need for modernization of existing and/or conception of future facilities. WARSZAWA-OKECIE: Historically Poland’s principal airport serving the country’s capital benefits from its localization (10km from the city centre) and PLL LOT’s strong holding. Traffic growth at WAW was significant although way below the country’s average, giving a more reliable indication for estimated future growth. Steady increase in both passenger and cargo traffic transported by over 30 airlines into five continents are the main features of the airport. Currently, major improvement works are in place leading effectively to improved communication with downtown Warsaw. Notoriously underdeveloped, it has recently opened its third terminal (T2) which complements the T1 and the low-cost Etiuda Terminal. The latter started its operation in 2001 and, being conceived as a temporary solution, is to be shut down in near future. WAW WAW Passenger traffic 1996 - 2006 Aircraft Movements 1996 -2006 source: P.P. Porty Lotnicze source: P.P. Porty Lotnicze 140000 10000000 120000 8000000 100000 6000000 80000 60000 4000000 40000 2000000 20000 0 0 The airport’s future remains a question mark as there are several issues partly related to planning and partly to ownership structure: • present runway pattern limits the possibility of expansion – initial concepts to reshape it into single parallel set of runways that would allow for simultaneous separate use increasing the airport’s runway capacity; • shut-down of Etiuda terminal and a compulsory transfer of low-cost carriers to the T2 increased operational costs – a new low-cost airport serving Warsaw is being conceptualized north-north-west of the city in Modlin (ex-military airfield); • Central Airport for Poland – revolving concept, rather politically than strategically inclined, of building a large hub airport between Warsaw and Lodz; currently under review. Magdalena Anna Fas No. 07021435 Page 8
  9. 9. CA200 C – Airport Business Management Semester Paper A state-owned company P.P. Porty Lotnicze has full ownership rights to the airport also being its operator and main services supplier. The company’s nature limits the possibility of market-driven decision-making as it is highly dependent on the current line in politics. However, in recent years the airport has seen major improvements. KRAKOW – BALICE: In 2007, Krakow Balice Airport passed the 3 million passenger mark and continues its development as the largest regional airport in Poland. Given Krakow’s positioning itself as a modern creative city with strong traditions and cultural appeal, the airport’s traffic comprises a healthy mix of business and leisure traffic in domestic, short- and long-haul markets which reduces its seasonality. KRK KRK Aircraft movements Passenger traffic 2000 - 2007 2000 - 2007 source: Krakow Balice Airport source: Krakow Balice Airport 50000 3500000 40000 3000000 2500000 30000 2000000 20000 1500000 1000000 10000 500000 0 0 Krakow Balice Airport is split between military and civilian operations, the latter of which are managed by a limited company founded in 1996 - Krakow-Balice International Airport Sp. z o.o. The company’s ownership structure is pictured on a graph below. Magdalena Anna Fas No. 07021435 Page 9
  10. 10. CA200 C – Airport Business Management Semester Paper Airport operates with one runway sufficiently long to KRK accommodate most of available pas passenger fleet. Ownership structure Terminal capacity comprises of two facilities – T1 source: Krakow Balice handling international and T2 – domestic traffic. Airport Investments planned for the nearest future regard mainly 1.04% 22.73 0.04% modernization and expansion of taxiways and fast fast-exit % ways on the airside as well a further enhancements on as the airside. Due to airport’s popularity as a business partner among low-cost carriers and increasing traffic cost 76.19 % figures the need for a third low low-cost terminal and P.P. Porty Lotnicze another runway may soon surface. Malopolska Voivodship City of Krakow Authority KATOWICE - PYRZOWICE As other regional airports in Poland, Katowice International Airport underwent an accelerated development just after the EU access. Since 1991 the airport has been fully owned by a market traded company – Gornicze Towarzystwo Lotnicze that in spite of its close links to both PLL LOT and P.P. Porty Lotnicze managed to steer the airport away from politics. The airport benefits from a densely populated catchment area (some 11 million people live within 1.5 hour journey) and also is well positioned for cargo tr transport being in the heart of the most important polish industrial region. KTW has seen major improvement and/or expansion works ever since the GTL S.A. took over what was back then a mainly military facility. In around ten years two passenger terminals (capacity of 3.7 million) have been built along with a separate cargo facility. apacity Infrastructure on the airside has been expanded and up graded over the years as have up-graded the road and rail links to downtown Katowice and other cities in the region. KTW KTW Passenger traffic Passenger traffic 1996-2006 1996-2006 source: Katowice Intl. Airport source: Katowice Intl. Airport 2500000 2500000 2000000 2000000 1500000 1500000 1000000 1000000 500000 500000 0 0 Magdalena Anna Fas No. 07021435 Page 10
  11. 11. CA200 C – Airport Business Management Semester Paper Owing to the forecasted growth there is a well defined need for further growth. The well-defined future plans embrace construction of a third terminal and a second runway to mention the most significant issues. GTL S.A. is the airport’s operator also providing a host o of auxiliary services in passenger and cargo handling, flight catering, insurance and advertising through its subsidiaries. WROCLAW – STRACHOWICE Wroclaw International Airport serves south west Poland taking advantage of Wroclaw’s south-west strong economic positioning and cultural appeal. The traffic boomed in 2004 and figures were on the way up ever since forcing up grading works. The existing terminal up-grading has been modernized as have the runway and other airside infrastructure. WRO WRO Aircraft movements Passenger traffic 1996-2007 1996-2008 source: Wroclaw Intl Airport source: Wroclaw Intl. Airport 30000 1000000 25000 800000 20000 600000 15000 400000 10000 5000 200000 0 0 The airport is owned by Port Lotniczy Wroclaw WRO S.A., a publicly-owned company which apart of owned Ownership structure being the operator also provides a wide range of source: Wroclaw Intl. Airport services on the site. Owing to the growing traffic but also in a due course of preparation for the EURO 2012 games 27% 25% the airport will experience further expansion both on the airside and landside. 48% PP Porty Lotnicze Miasto-Gmina Wroclaw Wojewodztwo Dolnoslaskie Magdalena Anna Fas No. 07021435 Page 11
  12. 12. CA200 C – Airport Business Management Semester Paper The four airports described above belong to the largest polish passenger airports by size and as such are representative for Poland’s civil airports – up to a varying degree the same problems appear throughout the country: underdevelopment, obsolesce, problems with funding, etc. Additionally, aviation is still a battle ground for contradictory lines in politics and between the regions. This however, has been changing gradually as the EURO 2012 is approaching and more rational solutions take the lead. 3. Ownership issues Historically polish airports have been fully state-owned companies managed by a centralized body – Zarzad Ruchu Lotniczego i Lotnisk Komunikacyjnych (ZRLLK, Air Traffic and Civil Airports Office) that would also provide air traffic services in polish airspace. P.P. Porty Lotnicze (Airports State Company) was founded in 1987 by a governmental decree (Dz. U. Nr 33 poz. 185) as inheritor of ZRLLK’s functions. The act conferred the following tasks to P.P. Porty Lotnicze: • construction, modernization and management of civil airports (air- and landside); • provision of services for air passengers; • provision of services for air carriers (passenger and cargo); • provision of MRO for air carriers. P.P. Porty Lotnicze is main player in the polish market. Based on the before mentioned act, it directly manages three polish airports (WAW, RZE, ZGR) and holds significant shareholdings in the reminder (Bydgoszcz, Gdansk, Katowice, Krakow, Poznan, Szczeci, Szymany k/Szczytna and Wroclaw). The latter group has been transformed into privately owned companies in the 1990’s with similar ownership structures being a combination of P.P. Porty Lotnicze and local and regional authorities. Based upon the Air Law Act signed on July 3, 2002 (Dz. U. z 2006 r. Nr 100, poz. 696; with amendments) foreign ownership of polish airports is possible, it should however not exceed 49% of total shares to be regarded lawful. Additional restrictions are put on the issue of voting rights. The Air Law Act together with its amendments (post-2006 in particular) introduced a series of changes with regard to joint military and civilian use of airports. Recently, another piece of legislation has been approved allowing the Polish Military Property Agency to transfer its ownership rights over unused (ex-) military airports to respective civilian authorities. This measure should ultimately lead to a great part of existing Magdalena Anna Fas No. 07021435 Page 12
  13. 13. CA200 C – Airport Business Management Semester Paper facilities being converted for civilian use and a sharp increase in investment opportunities for both domestic and foreign investors. As shown on the map below, there is a broad range of locations throughout the country that has been pin-pointed for future civilian use development. These are mostly sports or (ex-) military facilities but also existing civil airports looking to modernize themselves as respective local authorities realized a regional airport’s value in the region’s development. Expansion of airport infrastructure in Poland became widely regarded as vital for the country’s development. Therefore it is treated as a priority in Poland’s negotiations for EU grants (i.e. the European Development Fund). Being a part of a larger European network (TEN-T), these projects receive significant money injections from the Community – possibly a sign of bright future in the eyes of investors. Magdalena Anna Fas No. 07021435 Page 13
  14. 14. CA200 C – Airport Business Management Semester Paper 4. Key management issues Polish airport market as any of the fast-growing underdeveloped markets has a tendency to be extremely ambivalent in the sense that the split between its positive and negative attributes becomes blurred at times. What today seems a drawback tomorrow may turn into an opportunity and vice versa. Therefore careful management is a must. In general terms, innovative but consistent and fact-based strategic planning seems to be the most important issue management will face regardless of the particular airport’s stage of development. Honest projection of traffic figures and market analysis compared against existing facilities will be a good start for strategy building. From there it will be possible to evaluate the need for: • physical expansion (meaning air- and land-side facilities, road and rail infrastructure improvements, staffing levels, etc.); • non-physical development (meaning expansion and improvements of services provided on site, increase in productivity, rationalization of processes, increase in concessionary revenue, airport’s marketing and increase of its share in public consciousness, improvements in stakeholders relationships, etc.); • funding (effective fund-raising will become increasingly important as more and more applications for state- and/or EU-funding are being registered). The country’s airports are still in a phase of catching-up with its European counterparts so tight operational and financial control will be crucial while executing the strategy. Several short- to medium-term challenges should be underlined: • EURO 2012 – severe workload and financial strain on the airport and its budget but it is crucial to complete all works as planned for a smooth operation during the games. Extra funding has been secured and should lead to significant improvements of airport infrastructure across the country in a relatively short period of time. Downside being that rush should not be a pretext for provisional solutions; • increasing competition levels in all dimensions (domestic, international, global) with strong, established airports in neighboring countries as well as possible difficulties with maintaining the interest of low-cost carriers; • implementation of more aggressive airport marketing so as to boost route development (and the airport’s general performance); • expansion of the European high-speed rail network – lobbying in favor of better rail and road infrastructure as a countermeasure; • entry of foreign airport operators seems inevitable and will put high pressure on P.P. Porty Lotnicze to make their own operations more efficient. • lack of market diversification – as for now mostly the low-cost segment has been evolving; there is a vital need of attracting full-service players to the market as Magdalena Anna Fas No. 07021435 Page 14
  15. 15. CA200 C – Airport Business Management Semester Paper they are more likely to require sophisticated infrastructure and services, thus generating higher revenue levels • ‘green’ airport business – as the society becomes more environment-conscious, pressure on airports will grow to introduce eco-friendly solutions. 5. Performance benchmarks As the market liberalization continues polish airports will operate on a more and more free-market basis. Also, because of its being immature relative to the Western Europe, there is a constant need of up-grading and catching-up with the continent’s standards. Therefore, polish airports like any others cannot be effectively managed without stringent means of operational and financial control that would not only give a clear picture of the performance of the airport in question but also position that airport in some kind of context on the international arena. Income ratios Traffic charges: Total turnover measures the degree of reliance upon traffic income monitors total commercial income-related efficiency Commercial income per pax (inclusive of concessions & car parking) measures ability to generate concessionary income (incl. Concession income per pax of all concessionary services) Duty- & tax-free income per intl. monitors the income from sales of tax- & duty-free goods departing pax per intl. departing passenger) Income from concessions other than duty-&tax-free Other concessions income per pax sales, excl. of car-parking measures income from public car-parking per passenger, Car-parking income per pax highly dependent on location measures income performance from noncommercial or Other income per pax concessionary areas (i.e. real estate) Staffing and cost ratios Staff costs per staff member measures avarage wage level at the airport Passengers per staff member measures staff productivity measures overall employee cost per output unit, not Staff costs per passenger including freight Other direct costs per pax measures other cash costs per unit of output includes real estate taxes, utilities, cleaning, car-parking Property costs per pax management, etc. Maintenance and equipment costs per measure of equipment operational and maintenance pax costs airport administration related costs, dependent on General costs per pax policing costs Financial ratios Earnings: Share a measure of profit after tax Dividend: Share amount of earnings paid out as a dividend Dividend cover proportion of earnings paid out in dividend Magdalena Anna Fas No. 07021435 Page 15
  16. 16. CA200 C – Airport Business Management Semester Paper measures the degree to which current debt can be Interest cover covered by current trading Debt: Equity a measure of financial risk source: BAA The set of benchmarks presented in the table above is a comprehensive representation of the wide array of airport operations and their financial aspects. Doganis and Graham proposed a simplified composition of benchmarks: Classification of cross-sectional performance measuring Costs Total costs per WLU Personnel cost per WLU Capital cost per WLU Revenue Gross revenue per WLU Gross revenue/expenditure ratio Labour productivity Gross revenue per employee WLU per employee Value added per unit personnel cost Capital productivity Assets per WLU Profit/net assets ratio Value added per unit capital cost Financial profitability Profit/revenue ratio Value added per unit staff and capital costs source: Doganis & Graham, 1987 For benchmarks to be effective it is necessary to be able to compare them against the industry data. Thus, it is fairly impractical to generate a unique set of indicators. Indeed, they should draw conclusions from the little commercially sensitive data that is available and be somewhat constant across the industry. Doganis and Graham’s proposal is based on WLU, or work-load units, equal to one passenger or 100kg of freight. Accordingly, performance profiles can be created for a particular airport whereby each individual indicator is measured against the industry average, which is normalized to the value of 100 (index value). Magdalena Anna Fas No. 07021435 Page 16
  17. 17. CA200 C – Airport Business Management Semester Paper Regardless of the method, one should bear in mind that the scope of activities and duties vary greatly (i.e. accounting methods, average salary, ownership form, etc.) affecting factual or depicted results and making a fully true comparisons almost impossible. What will the benefits of benchmarking be? Firstly, putting an airport within an international context will increase the management’s motivation to develop a consistent and realistic development strategy and allow for evaluation of its execution as the time passes by. Secondly, the chosen set of benchmarks gives a detailed picture of the financial and operational side of the business, potentially attracting customers. The management should not constrain themselves to comparing only data but also the more tangible aspects, i.e. introduce customer satisfaction surveys, develop positive community relationships, evaluate possibilities of ‘green’ business-making, etc. Altogether, different forms of comparison will enable more efficient operations from which all interested parties shall benefit. 5. Business partners Hochtief AirPort GmbH Founded in 1997, developed from a construction company Hochtief GmbH, based in Germany Hochtief AirPort GmbH has a proven record of within holistic airport management having built up an attractive and balanced portfolio of shareholdings in the airports of Athens, Dusseldorf, Hamburg, Sydney and Tirana. The company is interested in partial shareholdings securing long-term operator license providing a wide range of services from one source: - strategic airport management - tailor-made project development - investment services and partnership - aviation and non-aviation competencies - active location marketing Hochtief AirPort GmbH has been chosen due to the substantial success it achieved especially while turning-around the airport of Budapest. Transport & Logistics Consultancy Ltd. UK-based subsidiary of Hochtief AirPort GmbH, the company specializes in cargo and logistics consultancy providing expertise in the following areas: - operations planning - performance improvement - facility layout Magdalena Anna Fas No. 07021435 Page 17
  18. 18. CA200 C – Airport Business Management Semester Paper - operations design The choice is motivated by the need of exploring the cargo market and enhancing cargo facilities and operations at polish airports. AMS Studio Small Poznan-based design studio which made the news with its passenger terminal project for Lawica Airport in Poznan. The award-winning project of a terminal with maximum capacity of 2 million passengers per annum has an innovative form making it pleasant for travelers. Also, it has been designed to meet the latest international standards. The studio was chosen for its creativity and deep knowledge of both the industry’s requirements and local conditions. BUDIMEX S.A. One of the largest polish construction companies with a long track in large projects realization embracing numerous location within Poland, Germany, Eastern Europe, Russia and recently also Middle East in three main fields – general construction, transport infrastructure and environmental protection. Varied experience is what makes Budimex S.A. a good partner; engagement in construction of passenger terminals in Krakow and Poznan, air traffic control centre at WAW, office buildings for both P.P. Porty Lotnicze and PLL LOT as well as involvement in transport infrastructure (i.e. motorways, bridges, tube stations) and environmental protection construction (i.e. sewage treatment plants) give it technical expertise for advanced eco-friendly project designs and construction. 6. Summary For the Polish regions, the development of airports is an opportunity for better regional accessibility, a higher ranking as travel and investment destinations, higher expenditure both on the airports and in their vicinities, new jobs in air transportation as well as in tourism. They have become an underlying factor for development and are a basic prerequisite to be considered a viable localization for new businesses. As shown in the paper, there are numerous investment opportunities be it an existing airport or a planned one. It is the pro-active and well prepared companies that will Magdalena Anna Fas No. 07021435 Page 18
  19. 19. CA200 C – Airport Business Management Semester Paper Annex: source: GUS YoY change at major polish airports source: ULC 100% 80% 60% 40% 20% 0% WAW KRK KTW WRO POZ GDN 2005/04 2006/05 2007/06 Magdalena Anna Fas No. 07021435 Page 19
  20. 20. CA200 C – Airport Business Management Semester Paper PL Domestic Pax Traffic 2003 - 2007 source: ULC 120,000 100,000 80,000 60,000 40,000 2003 2004 2005 2006 2007 20,000 0 May Mar Nov Jan Feb Jun Dec Jul Oct Apr Aug Sep PL Domestic Pax Traffic 2003 - 2007 YoY change 30.00 source: ULC 20.00 10.00 0.00 -10.00 2003/2004 2004/2005 2004/2005 2005/2006 -20.00 May Mar Nov Jan Feb Jun Dec Jul Sep Oct Apr Aug Magdalena Anna Fas No. 07021435 Page 20
  21. 21. CA200 C – Airport Business Management Semester Paper Magdalena Anna Fas No. 07021435 Page 21
  22. 22. CA200 C – Airport Business Management Semester Paper Sources: 1. Urzad Lotnictwa Cywilnego (Civil Aviation Office) – 2. Ministerstwo Infrastruktury (Ministry of Infrastructure) – 3. Ministerstwo Finansow (Ministry of Finance) – 4. Polski Urzad Statystyczny (Polish Statistical Office) – 5. P.P. Porty Lotnicze – 6. Eurostat - 7. Airports websites: a. WAW – b. KRK – c. KTW – d. GDN – e. WRO – f. POZ – Magdalena Anna Fas No. 07021435 Page 22