Airports make different plans for different needs

Airports make different plans for different needs
Business Times
Published: 2008/06/09

THE sky above Asia is no longer dominated by government-backed airlines as more people are jetting point-to-point with affordable flights served by low-cost carriers (LCCs).According to the Centre for Asia-Pacific Aviation, LCCs now account for some 10 per cent of airline capacity in the region, up from just one per cent six years ago.In fact, the LCC fleet in the Asia-Pacific is poised to almost triple to 1,000 planes by 2020.

The changing face of air travel means that airport operators must also adjust their facilities and services accordingly. Airport operators now have to contend with both full-service airlines and LCCs.Balancing their needs was one of the issues highlighted at the recently concluded third Airport Council International (ACI) Asia-Pacific Regional Conference and Exhibition, held in Australia.Some 250 airport operators and industry partners converged at the 100,000-population seaside town of Cairns in Queensland to discuss issues affecting the industry and brainstorm ways to build growth and sustainable markets.Many shared the view that different airports require different strategies.

Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Seri Bashir Ahmad said that different airlines have different expectations of airport operators. Speaking at a discussion panel on "Infrastructure Development for Airports - Balancing Low Cost with Full Service", Bashir said that LCCs want airports to adapt to their operational requirements and support their business model, and that they expect free or minimum charges and high incentives.If the LCCs were the ones initially to change the rules of the game in the air travel industry, the full-service carriers are now adjusting their business models in response to the challenges that have surfaced.Bashir observed that the business models of all airlines, full-service as well as low-cost, are changing.He said full-service carriers have taken to offering low fares, while LCCs are venturing into long-haul services."So, it is important for airports to acknowledge this evolution and adapt to the changing requirements of these carriers," Bashir said.Even if an airport has a dedicated LCC terminal (LCCT), it does not mean that all LCCs will use it.Jetstar Airways, for instance, prefers to use the full-service terminal at the KL International Airport in Sepang."Similarly, up to now, AirAsia does not operate at Singapore's LCCT," Bashir said.MAHB manages and operates 39 airports in Malaysia, out of which five are international. It also has operations in Kazakhstan, India and Turkey.

Another speaker, Sydney Airport associate director (Macquarie Airports) Shelley Roberts, said that Macquarie has different strategies for different airports.It manages Sydney, Copenhagen, Brussel and Bristol airports, among others.

Meanwhile, Cairns airport, which is being upgraded, is adopting a common-use concept.Cairns airport executive general manager Kayleen Collins said the airport is building the most efficient terminal space for all carriers.According to Collins, LCCs contribute 18 per cent of domestic and 26 per cent of international passengers at the Cairns airport."The preferred option is to build the most efficient terminal space for all carriers."We balance demands of low-cost and full-service through cost- effective design of the airport," she said, adding that the LCCs and full-service carriers have to share all the facilities at the airport.