europe state-of-art 1st peer review workshop 3 – 5th june, 2013 budapest 1

Europe state-of-art

1st Peer Review Workshop

3 – 5th June, 2013

BUDAPEST

1

CONTENTIntroduction– The role of the State-of-Art Report in the airLED project– Key output requirements and scope of the State-of-Art Report– Methodology of the State-of-Art Report

Airports and airport regions in Europe– General overview of airports in Europe– Passenger traffic of airports in Europe– Cargo traffic of airports in Europe– Key demographic and economic (GDP) indicators for airport regions in Europe– Classification of airport hubs and metropolitan regions in Europe

Market challenges facing airports– Increasing competition– Rapidly changing environment– Footloose airlines and passenger choice– Airport responses– Reassessing market power– New business models

Airport metropolitan area developments– Detailed analysis of 10 European airport regions– Key success factors for airport development– Key success factors for airport generated local and regional economic development– On and off-site airport development concepts– Airport cities, airport corridors and intermodal hubs

Conclusions– Airport development criteria– Airport impacts on surrounding regions– Airport city: a dream or realistic ambition?

The role of the State-of-Art Report in the airLED project

• airLED project focuses on the economic development of catchment areas around airports in the frame of polycentric territorial cooperation and governance;

• The report presents the situation in the European airport market, the new tendencies, new challenges to face and new answers on these challenges;

• Regional airports are not big enough to be unavoidable but they are big enough to influence their society and economy, therefore it is indispensable to study the solutions – good or bad – of other regional airports;

• give some general methodological approach for investigating the individual situation of a regional airport.

Airport city conceptWhat does „airport city” mean? – A theoretical approach of dr. Kasarda

The Airport City model is grounded in the fact that

●in addition to their core aeronautical infrastructure and services,

●major airports have developed significant non-aeronautical facilities, services and;

●at the same time they are extending their commercial reach and economic impact well beyond airport boundaries.

Consequently, many airports now receive greater percentages of their revenues from non-aeronautical sources than from aeronautical sources.

Airport city conceptAirport Cities have evolved with different spatial forms predicated on available land and ground transportation infrastructure, yet virtually all emerged in response to four basic drivers:

•airports need to create new non-aeronautical revenue sources, both to compete and to better serve their traditional aviation functions;

•the commercial sector’s pursuit of affordable, accessible land;

•increased gateway passengers and cargo traffic generated by airports;

•airports serving as a catalyst and magnet for landside business development.

Airport city conceptAlthough most aerotropolis development has been organic, spontaneous and haphazard, in the future it can be markedly improved through strategic infrastructure and urban planning:•Dedicated airport links (by road and train)•Special truck-only lanes•Time-cost accessibility•Businesses located in proximity to the airport •Airport area goods-processing activities segregated from white-collar service facilities•Noise and emission-sensitive commercial and residential developments outside high-intensity flight paths•Cluster rather than strip development along airport transportation corridors •Form-based codes should establish general design standards for built ambience•Place-making and way-finding enhanced by thematic architectural features•Mixed-use residential/commercial communities - create the sense of neighbourhood

Airport city conceptDoubts regarding on Dr. Kasarda’s concept

• sustainability of air transport in its present form, especially since it is completely dependent on petroleum;

• concentration of those infrastructure around the aerotropolis which is not unique to air transport and its consequences on security threats;

• doubts whether air transport has become a driver of economic activity and trade, it could be a major partner in the development of an airport catchment area rather than a substitute for other inputs into these systems, such as maritime transport, road transport and rail.

Airport city conceptDoubts regarding on Dr. Kasarda’s concept

What does market need!? Videoton

Industrial park East

Industrial park South

Industrial park West

Key output requirements and scope of the State-of-Art Report

• geographical situation of regional airports;• economic situation of regional airports (as

business units);• possible special role of regional airports in a

liberalized air traffic situation;• relations between efficient regional airports

and their catchment area.

Methodology of the State-of-Art Report

Concentrate on basic points which are indispensable to analyse the concrete situation of regional airports in Central Europe and the current situation of airports in terms of •market, •spatial development possibilities and •relations with the stakeholdersWe use •the statistics of the European Union, •the different annual reports of airports and •maps

Airports and airport regions in Europe

Passenger traffic of European airports, 2010

• 38,3% less than 100.000 passengers,• 28,1% 100.000-1,000.000 passengers,• 21,6% 1 – 5 million passengers,• 12,0% more than 5 million passengers of which 6,1% regional airports (5 – 10 million passengers), 3,9% secondary hubs (10 – 25 million passengers), 2,0% major hubs (more than 25 million passengers)

Airports and airport regions in EuropePassenger traffic in Europe, air connections

Airports and airport regions in EuropePassenger traffic in Europe, high-speed train network

Airports and airport regions in EuropePassenger traffic of airports in Europe


Top 12 best connected airports

City / Airportpassengers (thousand)

intra – EUconnected

airports, unit

LONDON – GATWICK 31 407 96AMSTERDAM – SCHIPHOL 45 287 93PARIS – CHARLES DE GAULLE 59 001 90LONDON – STANSTED 18 586 90FRANKFURT AM MAIN 53 283 89MUNCHEN 34 796 86MADRID – BARAJAS 49 831 75ROMA – FIUMICINO 36 720 73BARCELONA 29 198 70PALMA DE MALLORCA 21 080 64LONDON – HEATHROW 66 015 60DUBLIN 18 427 60

Airports and airport regions in EuropeCargo traffic in Europe

Airports and airport regions in EuropeCargo traffic in Europe

City Airport

Passengers (arriving and departing),

persons; 2011

Cargo (loaded and unloaded), tons;

2011

Leipzig LEJ 2 263 668 743 980

Cologne CGN 9 623 398 726 250

Liège LGG 305 281 674 360

Luxembourg LUX 1 790 791 656 653

London, East Midlands

EMA 4 259 816 266 498

Milan BGY 8 416 961 112 249

Market challenges facing airportsConsequences of the liberalisation of the European air

traffic–Point-to-point connections instead via hub connections,–Low-cost airlines,–Footloose airlines instead basic, national airlines,–Restructuring former sport and military airports,–2/3 of European citizens live within 2 hours to 2 or more airports: increasing possibilities to choose;

Increasing competition on the airport market!!!

Market challenges facing airportsConsequences of the liberalisation on the European

airport market–Airline and airport businesses more COST FOCUSED,–Increasing private participation in airport business because of high capital investment needs (infrastructure, safety etc.),–High fixed cost ratio needs to be sunk by increasing non-aeronautical revenues,–Traffic volume is crucial: 85% of airports with less than 5 million passengers are not profitable,

Finding new business models is needed!!!

Market challenges facing airportsNew business modells for airports

• Airport network: co-ordinated airport group at national and/or regional level (e.g.: AENA –Spain, LFV – Sweden, PPL – Poland, Manchester Airport Group – UK)

• Alliance anchor hub: hub where the major airline alliance groups connect (e.g.: London Heathrow, Paris Charles de Gaulle, Frankfurt am Main)

• Airport city: airport that provides all major services of a city, without leaving the site (e.g.: Munich, Zurich)

• Multi-modal port: airport city with strong intermodal connections (e.g.: Amsterdam – Schiphol)

• Airport as final destination: airport that provides a retail/service centre for their own community (e.g.: Athens)

• Business traffic: airport that tailors to business traffic (scheduled and/or non-scheduled) (e.g.: London City, Farnborough, Le Bourget)

• “Low Cost” Base: airport which focuses on low cost airlines (e.g.: Bergamo, Charleroi, London Stansted)

• Freight platform: airport specifically catering to the needs of freight operations (e.g.: Liege, Leipzig)

Airport metropolitan area developmentsDetailed analysis of 10 European airport regions

– 1,6 million people, MUNICH– GDP: € 77,7 million,– 37 million passengers– 286 thou. tons cargo– Rev.€1.150,6 million– EBIT €334,6 million– Real airport city! – 48% of revenue non-aeronautical.


– 1,4 million people, ZURICH– 23 million passengers– 286 thou. tons cargo– Rev. CHF905,4 million– EBIT CHF283,8 million– Real airport city!– 64% of revenue aeron. – 36% of revenue non-aeronautical.


– 1,7 million people, VIENNA– GDP € 75,5 million,– 20 million passengers– 200 thou. tons cargo– Rev. € 582,0 million– EBIT € 67,2 million– Real airport city!– 78% of revenue aeronautical activity, – 22% of revenue non-aeronautical activity.


– 0,6 million people, BRATISLAVA– GDP € 18,3 million,– 2 million passengers– Only 21 th. tons cargo!– Rev. € 27,3 million– EBIT € -3,1 million– Low cost base– 72% of revenue aeronautical activity, – 28% of revenue non-aeronautical activity.


– 1,3 million people, PRAGUE– GDP € 38,6 MILLION– 12 million passengers– 57 thou. tons cargo– Rev. € 91,5 million– EBIT € 1,3 million– Low cost base– No data regarding on aeronautical and non-aeronautical revenue.


– 4,4 million people, BONN-COLOGNE– GDP € 139,9 million,– 10 million passengers– 726 thou. tons cargo– Rev. € 271,5 million– EBIT € 21,2 million– Freight platform– 66% of revenue aeronautical activity, – 34% of revenue non-aeronautical activity.


– 3,2 million people, MILANO-LINATE– GDP € 143,0 million,– 8 million passengers– 112 thou. tons cargo– Rev. € 644,4 million*– EBIT € 81,3 million*– Low cost base and cargo– 64% of revenue aeronautical activity*, – 36% of revenue non-aeronautical activity*.*Malpensa 1, Malpensa2 and Linate together


– 3,5 million people, BERLIN-SCHÖNEFELD– GDP € 99,5 million,– 7 million passengers– Only 4 thou. tons cargo– Rev. € 521,5 million*– EBIT € -74,4 million*– Low cost base– 68% of revenue aeronautical activity*, – 32% of revenue non-aeronautical activity*.*Berlin Schönefeld and Berlin Tempelhof together


– 1,5 million people, BRUSSELS - CHARLEROI– GDP € 77,9 million,– 5 million passengers– 0 thou. tons cargo!– Rev. € 87,5 million– EBIT € 16,6 million– Low cost base– 73% of revenue aeronautical activity, – 27% of revenue non-aeronautical activity.


– 0,8 million people*, BASEL - MULHOUSE– GDP € 18,5 million*,– 8 million passengers– Only 18 thou. tons cargo– Rev. € 101,3 million– EBIT € 19,4 million– Low cost base– 89% of revenue aeronautical activity, – 11% of revenue non-aeronautical activity.*without Basel


– 1,0 million people, LEIPZIG– GDP € 23,4 million,– 3 million passengers– 744 thou. tons cargo– Rev. not available– EBIT not available– Freight platform– Share of revenue aeronautical activity not available, – Share of revenue non-aeronautical activity not available.

Airport metropolitan area developments

To be continued…

europe state-of-art 1st peer review workshop 3 – 5th june, 2013 budapest 1

Documents

airports airports

airport corridors

airport boundaries

airport city model

airport catchment area

european airport market

airport city concept

dedicated airport links