Under Promise and Over Deliver 1
PuttingThird-TierAirportstoWork
Putting Third-tier
Airports to Work
Ben Hargreaves
2 June...
Under Promise and Over Deliver 2
PuttingThird-TierAirportstoWork Introduction
What is a 3rd-tier airport?
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5,000,000
10,0...
Under Promise and Over Deliver 3
PuttingThird-TierAirportstoWork
0
100,000
200,000
300,000
400,000
500,000
600,000 ASP
HTI...
Under Promise and Over Deliver 4
PuttingThird-TierAirportstoWork
0
100,000
200,000
300,000
400,000
500,000
0 1 2 3 4 5 6 7...
Under Promise and Over Deliver 5
PuttingThird-TierAirportstoWork Lower Volume Traffic
Yield
COSTSREVENUE
YIELD
-
PuttingTh...
Under Promise and Over Deliver 6
PuttingThird-TierAirportstoWork Lower Volume Traffic
Pax characteristics dictate potentia...
Under Promise and Over Deliver 7
PuttingThird-TierAirportstoWork Airport City Concepts
What is an Airport City?
PuttingThi...
Under Promise and Over Deliver 8
PuttingThird-TierAirportstoWork Airport City Concepts
Planning your Airport City
Consider...
Under Promise and Over Deliver 9
PuttingThird-TierAirportstoWork Airport City Concepts
Planning your Airport City
Consider...
Under Promise and Over Deliver 10
PuttingThird-TierAirportstoWork
Putting External Resources &
Relationships into Place
Pu...
Under Promise and Over Deliver 11
PuttingThird-TierAirportstoWork Relationships
Start with existing relationships
Develop ...
Under Promise and Over Deliver 12
PuttingThird-TierAirportstoWork Viability
Yes:
Terminal concessions
Other dependent exte...
Under Promise and Over Deliver 13
PuttingThird-TierAirportstoWork Conclusion
Understanding of:
Traffic Characteristics
Cos...
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Putting third-tier airports to work - a presentation by Ben Hargreaves, REHBEIN Airport Consulting

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Ben Hargreaves, National Manager - Aviation, REHBEIN Airport Consulting delivered this presentation at Airport Development 2010 a conference hosted by Asia Pacific Aviation Business Magazine and Informa.

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Putting third-tier airports to work - a presentation by Ben Hargreaves, REHBEIN Airport Consulting

  1. 1. Under Promise and Over Deliver 1 PuttingThird-TierAirportstoWork Putting Third-tier Airports to Work Ben Hargreaves 2 June 2010 PuttingThird-TierAirportstoWork Introduction The nature of lower-volume traffic ‘Airport City’ concepts External resources & relationships Viability & sustainability Conclusions: Critical success factors Topics
  2. 2. Under Promise and Over Deliver 2 PuttingThird-TierAirportstoWork Introduction What is a 3rd-tier airport? 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 SYD MEL BNE PER ADL OOL CNS CBR HBA DRW TSV NTL LST MKY MCY ROK ASP 1st-Tier Source: BITRE PuttingThird-TierAirportstoWork Introduction What is a 3rd-tier airport? 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 ADL OOL CNS CBR HBA DRW TSV NTL LST MKY MCY ROK ASP KTA 1st-Tier 2nd-Tier Source: BITRE
  3. 3. Under Promise and Over Deliver 3 PuttingThird-TierAirportstoWork 0 100,000 200,000 300,000 400,000 500,000 600,000 ASP HTI BNK AYQ KGI WGA HVB PQQ ZNE DBO PBO EMD BDB GET ARM OLP WAY TIS WEI GFF MIM ALH LEA RVT LDH PKE MRZ DRB CVQ TRO GFN FLS BRT MEB NRA MNG PTJ CPD BLT MOV Introduction What is a 3rd-tier airport? 2nd -Tier 3rd-Tier Source: BITRE PuttingThird-TierAirportstoWork Analysing the Nature of Lower Volume Traffic
  4. 4. Under Promise and Over Deliver 4 PuttingThird-TierAirportstoWork 0 100,000 200,000 300,000 400,000 500,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Average Daily Return Services AnnualPax('000s) Lower Volume Traffic Volume vs Frequency 36-seat 19-seat 50-seat 74-seat 78-seat 104-seat 180-seat 144-seat PuttingThird-TierAirportstoWork Lower Volume Traffic To minimise unit costs, keep flow constant High business travel demand Multiple routes Minimum competition Airline schedules dictate unit cost Pax characteristics only minor influence Costs
  5. 5. Under Promise and Over Deliver 5 PuttingThird-TierAirportstoWork Lower Volume Traffic Yield COSTSREVENUE YIELD - PuttingThird-TierAirportstoWork Lower Volume Traffic Yield The fundamental measure of viability Key question: Is it acceptable? To maximise yield, understand drivers of cost and revenues
  6. 6. Under Promise and Over Deliver 6 PuttingThird-TierAirportstoWork Lower Volume Traffic Pax characteristics dictate potential Commercial offer dictates realisation Understand your passengers! ‘Speak’ to them Speak to people who know them Airlines Concession operators Revenue PuttingThird-TierAirportstoWork Adapting Airport City Concepts to the ‘Village’ Airport
  7. 7. Under Promise and Over Deliver 7 PuttingThird-TierAirportstoWork Airport City Concepts What is an Airport City? PuttingThird-TierAirportstoWork Airport City Concepts Mix of aviation and non-aviation activity Activities derive value from airport location Non-aviation uses do not compromise future aviation growth Links with & enhances regional economy Planned & coordinated to leverage synergies What is an Airport City?
  8. 8. Under Promise and Over Deliver 8 PuttingThird-TierAirportstoWork Airport City Concepts Planning your Airport City Consider Regional Economic Drivers Consider Stakeholders Inventory Existing Activities Identify Opportunities Map Relationships PuttingThird-TierAirportstoWork Airport City Concepts Planning your Airport City Aircraft Maintenance E.M.S. / Disability Bachelor Aviation Studies Waste Management Alternative Energy Food & Beverage Manufacture Catering Auto Maintenance L.A.M.E. Training/ Apprenticeships Educational Campus TAFE/CSU Packaging Manufacture Careers Advice/ Showcase Logistics & Distribution Supply Chain Car Rental Detailing Wash Facilities Biofuels Light Engineering Electro- Technology Simulator Manufacture & Mtce Serviced Offices Parking Service Retail Residential Suburb ICT ‘Virtual Business’ Regional Showcase / Interpretive Centre Convention/ Meeting Facilties Airline Pax Regional Transport Hub Airport Operations Training Rail Training Commercial Flying Training Military Flying Training Training for Trainers
  9. 9. Under Promise and Over Deliver 9 PuttingThird-TierAirportstoWork Airport City Concepts Planning your Airport City Consider Regional Economic Drivers Consider Stakeholders Inventory Existing Activities Identify Opportunities Map Relationships Allocate Precincts VISIONING PuttingThird-TierAirportstoWork Airport City Concepts Be flexible Things may not turn out as planned Opportunities will evolve Have a master plan Consider holistically to maximise synergies Fundamental to strategic objectives Other Considerations
  10. 10. Under Promise and Over Deliver 10 PuttingThird-TierAirportstoWork Putting External Resources & Relationships into Place PuttingThird-TierAirportstoWork Relationships Integrated planning Council-run airports have unique advantage Work hard to develop relationship Strategic Plan Key tool for discussion and alignment Essentials
  11. 11. Under Promise and Over Deliver 11 PuttingThird-TierAirportstoWork Relationships Start with existing relationships Develop a marketing strategy Consider partnering Don’t lose sight of the big picture Review overall plan frequently Implementation PuttingThird-TierAirportstoWork Viability and Sustainability: Servicing the Community
  12. 12. Under Promise and Over Deliver 12 PuttingThird-TierAirportstoWork Viability Yes: Terminal concessions Other dependent external activities Connectivity No: Neither sufficient nor essential for success Other factors are equally critical Does pax traffic matter? PuttingThird-TierAirportstoWork A Viability Case Studies B Existing on-airport businesses Adjacent development Clear regional economic plan Available land Integrated strategic planning Pre-existing linkages X X X X X X
  13. 13. Under Promise and Over Deliver 13 PuttingThird-TierAirportstoWork Conclusion Understanding of: Traffic Characteristics Cost and Revenue Drivers Pay Attention to Yield Thorough Visioning Strategic Master Plan Solid Stakeholder Relationships Critical Success Factors PuttingThird-TierAirportstoWork Thank you T: 07 3250 9000 E: ben.h@lar.net.au M: 0413 316908

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