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Development of business models for airports

AIRDEV

Development of business models for airports

Background & policy context: 

Air transport sector has been undergoing profound changes over the recent decades. Globalisation, political instability, terrorism and economic turmoil have driven the sector towards a turmoil. On the other hand, the sector continues to show a robust growth.

The major visible trends are: different growth rates across market segments, diversification of ownership, strong downward pressure on fares and cargo tariffs, liberalization together with abandonment of ownership restrictions and privatization of airlines hitherto government-owned, falling yields, cost cutting with a strong emphasis on labour costs, or intensify usage of electronic communications.

Airports have been searching for alternative sources of revenues; and many have evolved towards truly multi-business, multi-activities areas (with retail centres, logistics areas, business centres, etc), embracing the concept of City Airport.

Objectives: 
  • To Identify the interrelations between the different stakeholders of the airports (landside): shareholders, employees, clients, suppliers and surrounding communities;
  • To identify the value generated (tangible and intangible) within those interrelations allocated to the follow asset types: a) inside the airport: business relationships, structure, competence, financial; b) between airport and its hinterland: land use, socioeconomic development, infrastructures and governance;
  • To identify opportunities to improve relationships and value generation with clients, suppliers and communities;
Methodology: 

(1) new business models for airports - demand management; marketing strategies and financial investment options.

(2) flexibility, capacity expansion - product flexible capacity in investment model; discuss capacity decisions under uncertainty scenarios; focus on multi-objective metaheuristics to support decision making rational.

(3) hinterland effects - Value Network Analysis to understand connections between airports and hinterlands and mostly between airports and surrounding communities.

Programme Other: 
MIT Portugal Programme
Key Results: 

AIRDEV Project provide a better understanding:

  • on the design of business models for airports;
  • on the quantification of the hinterland benefits, with particular focus on the benefits generated from the evolution towards the concept of city airport
Partners: 

Portugal:
Instituto Superior Técnico; Oporto University; University of Beira Interior, MIT Portugal Porgram

 

Organisation: 
Instituto Superior Técnico (IST)
City: 
Lisbon
Contact country: