This Frost & Sullivan research service titled World Airports – Financial Evolution and Market Dynamics provides an overview of the global airport market. It provides valuable information on the current trends in the market and also includes a description of the worldwide penetration of the market by major airport companies. This research study analyses the complex airport value chain as well as the competitive structure of the market.

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Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Global Airports

The following technologies are covered in this research:

• Aeronautical revenues: Aeronautical revenue sources are those directly associated with airport infrastructure related charges such as aircraft landing and taking-off fees, aircraft parking charges, passenger services fees. Aeronautical charges are imposed for the provision and use of an airport’s runway, apron and terminal facilities.
• Non-aeronautical revenues: Non-aeronautical revenues refer to revenues from rentals from commercial outlets or concessionaires within airport terminals and from passengers.
• Flight Operations: Flight operations include air traffic services (tower, runaway traffic, apron and taxiway services and gates) and telecommunications.
• Terminal Operations: These include safety (fire protection), security and police as well as emergency services
• Ground Services: Ground services include luggage services, in-flight services and cargo services. Some of these services also include passengers' handling, ticketing, baggage cargo and mail handling, load control, operations and flight planning, ramp handling, line maintenance and engineering, representation and accommodation, supervision and administration, surface transport.

Enhanced Customer-focused Approach to Result in Diversification of Airport Revenue Sources

The air transport industry, one of the world’s fastest growing industries, is assuming greater importance in the economic and social development of countries worldwide. The growing diversification of airports’ revenue sources is an indicator of the evolving integration of airports into the economies in which they operate. Accordingly, as airports are becoming attractive business centres that aid in boosting urban economic growth, the trend is resulting in enhanced focus on customer-driven profiles and the quality of airport facilities. In recent times, airport traffic in big hubs has exhibited a notable increase. Accordingly, a remarkable level of consolidation of air traffic away from secondary hubs and towards big ones has emerged and the anticipated consolidation of the hub system is expected to drastically transform the distribution of air traffic among airports.

Airports across the world are seeking to limit their reliance on aeronautical revenues to generate resources to meet rising infrastructure demands. As a result, the market is witnessing greater focus on commercial revenues from retailing, advertisements, ground transport and property development to generate profits. "The importance of non-aeronautical revenues is a good indicator of the new model of business-oriented airport operators entering the industry and the emergent importance given to customer service," says the analyst of this research service. "Hence, with multiple commercial opportunities being exploited, airports are increasingly being viewed as more than air service providers."

Long-term Success to Depend on Development of Core Airport Operations

"Success in the global and competitive airport industry will require marketing and new business development skills beyond those that currently exist," remarks the analyst. Thus, airport operators will need to demonstrate key competencies in core airport operations such as technical operations, facility management and safety as well as the management of traditional airport activities such as airport planning. Future development of the airline industry will be determined by an enhanced commercial approach, urgent intensification of capital expenditure and deregulation of the value chain.

The deregulation of the industry will further segregate this value chain, creating opportunities for new operators to make a foray into the industry, thereby fostering efficiency gains as a result of intensifying competition. Moreover, airport operators would do well to enhance process efficiency by reducing airport costs and the charges levied on airlines. Further, the strategic location of airports, their size as well as the catchment area are crucial factors that will assist in attracting investments, thus contributing to passenger growth.

Chapter 2

• Airport Markets: Employment by Region (World), 2003
• Airport Markets: Airport Activities (World), 2005
• Airport Markets: Airport Revenues by Source (World), 2003

Chapter 5

• Airport Markets: Regional Airport Revenues by Source (World), 2003
• Airport Markets: Airport Capacity Main Limiting Factors, 2005