Airport Operational Management - Myassignmenthelp.Com

Questions: Discuss how airport charges can affect the airport-airline relationship. Explain why airport security is one of the key concerns for airport management. Compare and contrast an airports measurement of service and quality of service and discuss some of the ways that they can be managed. Identify some of the sources of non-aeronautical revenue for airports and discuss why it is so important. Answer: 1. Impact of airport charges on the airport-airline relationship Airport charges are paid for using the airport facilities like freight charges, aircraft landings and airport infrastructure (Starkie, 2012). On the other hand, an airport is considered as a business entity, service provider and an operator that provide infrastructures and facility to different airplane companies (Bush Starkie, 2014). Hihara (2012) moreover portrays that airlines can be considered as partners, team players and allies of airports. It is evident that each airport operator involves airlines for the development of air transportation and airport. Moreover, Starkie (2012) stated that the airport authorities signed an agreement with the airport to establish a contractual relationship. Security charges are also incorporated in airline charges and thus, the greater is the amount of the airline ticket, better security services is obtained by customer. Bush and Starkie (2014) thus depicts that airport authorities need financial resource for maintaining their services and a por tion of this revenue is earned from the airline charges that is paid by the airline customers. The airline charges affects the airport-airline relationship directly as greater the amount paid by the airline services to the airport, the more privilege they are getting from the airport and their operators (Yang et al., 2015). Taken for instance, an airport that has a capacity of airbus of 558 people desire to accommodate an airbus of 770 people, the runway needs some infrastructural changes that on the other need financial resources. In such case, the cost of the airport charges gets increases which can be observes through rise in price of air tickets. 2. Importance of airport security for airport management Airport management emphasizes on crucial functionalities of airport facilities like- purchase of tickets, transfer of baggage and safe travelling of passengers (Graham, 2013). The major purpose of airport management is to safeguard the passengers and to run the airport system efficiently. Hihara (2012) furthermore stated that airport management also refers to the maintenance of passengers security, airport central management for providing services of billing calculations and management of departure sequences, airport resources management and others. Starkie (2012) depicts that apart from all these operations, airport security is the crucial element of airport management based on which customer can rely on the airline services. Airport authorities evaluate all the suspicious activities, airplane parts and functionality checks and also take effective steps to overcome unlawful interference. Kirschenbaum (2013) furthermore highlight that in order to accomplish all the process of airport safely, airport enforcement authority are hired. These people are liable for maintaining security of the airport services and protect the passengers from any attacks. Thus, it can be said that greater the security, more satisfied will be the customer and better brand reputation can be attained by the airport. Hihara (2012) furthermore portrays that effective airport security plan make it harder for an impulsive attack to succeed. The security is also related to the popper functionality of airplane that is handled through business intelligence and other computer services. All the data and information are easily manipulated from these devices all the security system are interrelated. Thus, airport member sitting from airport control room can easily assess the scenario within the airplane. Yang et al. (2015) stated that this approach is undertaken so that immediate action can be taken if any adversity occurs during the travel. This effective interrelation in airport security denotes t he efficient airport management and serves as a key factor for attracting more customers. 3. Airports measurement of service versus quality of service There are three five dimensions of quality through which the management of the airport can be analyzed. These fie dimensions of quality are- tangibility, reliability, responsiveness, assurance and empathy (Bogicevic et al., 2013). Aydin and Yildirim (2012) stated that tangibility refers to the physical environment of the airport; while, reliability refers to the performance of the services promptly and accurately to the passengers. Moreover, the third dimension of the quality that is responsiveness resembles to the airplane crew members will to help the passengers. Additionally, assurance emphasizes on promising attitude of the airport members that inspire passengers; whereas, empathy denotes to the provision of attention to each individual. Bogicevic et al., (2013) moreover argued the measurement of services is also measured through some indicators like- practical hourly capacity, gate departure delay, taxi departure delay, security clearing time, baggage delivery time, check-in to gate time, border control clearing time and finally customer satisfaction. On the other hand, the airport service quality depends on three aspects- service scape, service personnel and services (Aydin Yildirim, 2012). According to (Bogicevic et al., 2013), service personnel should maintain attitude, behavior and expertise in the airport operations effectively. However, in real time, passengers face difficulty due to faulty machines, delay in services and misconduct of some activities. In the case of airports measurement of service and quality of service, it can be said that in former case the rate of final result is observed like how many customer gets satisfied with the service but in later case the strategies through which customer satisfaction can be attained is valued. Ways to manage airports measurement of service In order to manage the airports measurement of service, the services of aircraft landing, parking, equipment use,and ground handling services should be improved. Bogicevic et al., (2013) stated that regular feedback from passengers regarding the airline services at the destination should also be implemented so that accurate aspects can be identified based on which further improvement can be incorporated. Graham (2013) moreover depicts that implementing technology for fast and accurate delivery of the service should also be adopted for enhancing the service quality of the airport. 4. Sources of non-aeronautical revenue for airports and importance of these revenue In order to determine the financial viability of an airport, assessment of non-aeronautical revenue has done. There are mainly five sources of non-aeronautical revenue- concessions, parking and airport access, rental car operations, land rent and advertising (Choo, 2014). The concessions are the amount that the shops like gift shops, restaurants and newsstands within the airport provide to the airport management. Postorino and Pratico (2012) moreover, stated that from parking and airport access, revenue is collected for utilizing the airports parking area by travelers. In rental car operations, the revue is collected from cars that are rented by the customers and the shopkeeper inside the airport. Choo (2014) furthermore depicts that land rent is the rent that is given to customers for golf courses, office buildings, hotels, farming or other uses; whereas, advertising revenue are collected for the purpose of advertisements placed on airport walls, billboards and buses. It is also fou nd that 55.2% of the revenues are collected from aeronautical revenue; whereas, 44.8% of the revue are from non-aeronautical revenue (Choo, 2014). Image 1: Aeronautical vs. Non-Aeronautical Revenue for U.S. Airport (Source: Choo, 2014) The importance of non-aeronautical revenue is that it helps in optimizing revenue per visitors for their airline tickets. It also provides the passengers all the necessary things from the airport (Postorino Pratico, 2012). Reference Aydin, K., Yildirim, S. (2012). The measurement of service quality with servqual for different domestic airline firms in Turkey. Serbian Journal of Management, 7(2), 219-230. Bogicevic, V., Yang, W., Bilgihan, A., Bujisic, M. (2013). Airport service quality drivers of passenger satisfaction. Tourism Review, 68(4), 3-18. Bush, H., Starkie, D. (2014). Competitive drivers towards improved airport/airline relationships. Journal of Air Transport Management, 41, 45-49. Choo, Y. Y. (2014). Factors affecting aeronautical charges at major US airports. Transportation Research Part A: Policy and Practice, 62, 54-62. Graham, A. (2013). Managing Airports 4th edition: An international perspective. Routledge. Hihara, K. (2012). An analysis of an airportairline relationship under a risk sharing contract. Transportation Research Part E: Logistics and Transportation Review, 48(5), 978-992. Kirschenbaum, A. A. (2013). The cost of airport security: The passenger dilemma. Journal of Air Transport Management, 30, 39-45. Postorino, M. N., Pratic, F. G. (2012). An application of the Multi-Criteria Decision?Making analysis to a regional multi-airport system. Research in Transportation Business Management, 4, 44-52. Starkie, D. (2012). European airports and airlines: Evolving relationships and the regulatory implications. Journal of Air Transport Management, 21, 40-49. Yang, H., Zhang, A., Fu, X. (2015). Determinants of airportairline vertical arrangements: analytical results and empirical evidence. Journal of Transport Economics and Policy (JTEP), 49(3), 438-453.