The document discusses the evolution of the airport industry and business models over the past 30 years since European liberalization began in 1987. It outlines the key impacts on airports, including a shift from traditional operators to commercialized airport companies that leverage non-aviation revenues. The business model has expanded to view airports as multisided platforms serving airlines, an airport city, and consumers. However, airports now face both conjunctural and structural challenges to their traditional aviation revenues from factors like digitalization, requiring strategic shifts to capture more value from their expanded customer bases.

1. LOW COST IMPACT
ON AIRPORTS:
NEW CHALLENGES
There are no more airport operators
ARPT.CO Ponte de Sor, 24-27 May 2018

2. 1. INDUSTRY
2. BUSINESS MODEL
3. CHALLENGES
SUMMARY
ARPT.CO

3. 30 YEARS OF
AIR TRANSPORT
LIBERALISATION
IN EUROPE
INDUSTRY
ARPT.CO

4. 1987, '90, '92 - EU liberalisation packages
EU Liberalisation Strategy - 4 pillars:
- competition (consumer)
- capacities (slots, atc)
- cost (handling, charges)
- access (internal market)
1987 - 1st privatised airport: BAA
2017 - 16% (priv), 25% (mix), 59% (pub)
LCC - Ryanair (1984!), EasyJet (1995)
2015 - LCC: 41% seat capacity EU
INDUSTRY 1987-2017
ICAO
A. GRAHAM

5. INDUSTRY 1987-2017
AIRPORTS
FSC
- vulnerability
- competition EU
- LCC subsidiaries
- consolidation
- Non EU competition
- product unbundle
LCC
- market penetration
- pan-european focus
- core service: LC
- secondary airports
- business, feeder traffic
- ancillary revenues
- LHLCC, ULHLCC
AIRLINES
ARPT.CO
Secondary
- LCC dependency, incentives
Capital
- impact LCC - FSC, incentives
- capacity, congestion
- non-aviation strategy
HUB
- capacity, congestion
- relevance EU megahubs
- airport city & aerotropolis
- multihub policies
- airline network racionalization
- EU airport feed Middle East
- non-aviation strategy

6. ARPT.CO
INDUSTRY 1987-2017
INDUSTRY - STRONG GROWTH STAGE
ACI EU
AIRPORTS EU 2012-2017AIRPORTS EU: PAX 2016-2017

7. 1986 - 2016: +3.7x PAX, + volume & speed
ARPT.CO
INDUSTRY 1987-2017
KEY IMPACT: EXPANSION OF CLIENT BASE
0.984 B
2015
PAX WW
28%
BOEING/ICAO
LCCPAX PER YEAR (MILLION)

8. FROM
AIRPORT OPERATOR,
TO
AIRPORT COMPANY
BUSINESS MODEL
ARPT.CO

9. BUSINESS MODEL
ARPT.CO

10. BUSINESS MODEL
ARPT.CO

11. Traditional
Globalization
Commercialization
Brand AVIATION
AIRPORT-CITY
CONSUMER
ARPT.CO
BUSINESS MODEL
BUSINESS MODEL (R)EVOLUTION

12. BUSINESS MODEL
ARPT.CO
AIRLINES REGION PASSENGER
INTERMODAL PLATFORM
INDUSTRIAL ENTERPRISE
PARTNER ECONOMIC DEVELOPMENT ACI EUROPE
RIGAS DOGANIS
ASHTON ET AL.
AIRPORT COMPANY: Key Stakeholders - Business Model
AVIATION AIRPORT CITY CONSUMER

13. BUSINESS MODEL
ARPT.CO
AVIATION AIRPORT CITY CONSUMER
VALUE CREATION & CAPTURE
AIRPORT COMPANY: Business Model - Key Competences - KPIs
Pax/m2, Pax/hora €/m2, €/Pax €/Pax, SoW, CLV
OPERATIONAL
EXCELENCE
PARTNERSHIP &
ALLIANCES
CUSTOMER
INTIMACT

14. CONJUNTURAL
VS
STRUCTURAL
CHALLENGES
ARPT.CO

15. Economic regulation
Airport charges
Capacity constraints
Environment constraints
Security constraints
Airline network racionalization
Airport EU feed Middle East
CHALLENGES
Structural pressure on AVIATION BUSINESS

16. USD 2.5 to 5 billion revenue maybe at risk over
the next 5 years
3 to 6% operacional margin
60% airport EU, have Chief Digital Officer to
lead digitalization
Airlines, Travel Retail, and Amazon!
ARPT.CO
DIGITALIZATION
THREATS TO
NON-AVIATION
BUSINESS
CHALLENGES
R.BERGER

17. ARPT.CO
CHALLENGES

18. ARPT.CO
CHALLENGES

19. ARPT.CO
CHALLENGES

20. ARPT.CO
CHALLENGES
STRATEGY, NOT
TECHNOLOGY,
DRIVES BUSINESS
TRANSFORMATIONKANE ET AL. MIT

21. CHALLENGES
ARPT.CO
AIRLINES REGION PASSENGER
AIRPORT 3.0 - VALUE CAPTURE
AVIATION AIRPORT CITY CONSUMER
CONSUMER STRATEGY: compete for SoW in passenger Customer Journey

22. CHALLENGES
ARPT.CO
(C)USTOMER
Everyone Is a Customer, Even Non-Paying Customers
(C)USTOMER-BASE
Customer-Base Is The Mother Of All Growth
(C)USTOMER-UTILITY-VALUE
There Is No Such Thing As The Core-Business
NEW ECONOMY, NEW RULES
3 C(s) of Multi-Sided Platforms

23. CHALLENGES
ARPT.CO
FROM
AIRPORT OPERATOR
TO
AIRPORT PLATFORM
Airlines, Travel Retail, and Amazon!

24. CHALLENGES
ARPT.CO

25. THANK YOU
Nuno M. Brilha
ARPT.CO Ponte de Sor, 24-27 May 2018