The Importance Of Airport Concession

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Airport Finance Most airports around the world are under full government ownership whether national, regional or local and are financed mainly through revenue gained from airport activities (aeronautical and non-aeronautical). The other options used to fund airports are ticket surcharges, fuel taxes, bond issues and Airport Improvement Fees (AIFs). Moreover, the cost of infrastructure improvement and building new airports has become so expensive that some governments have now privatized, or allowed the private sector to assume ownership of a certain number of large airports (IATA IAI, 2013). Airport Concession Airport concession is defined as a business located at the airport that engages in the sale of good or services to the public under an agreement with the airport (Lawa, 2016). A Concession is also defined as a payment that the airport authority charges the owner or manager of an operation to conduct commercial activities in the airport (vojvodic, 2011). All the …show more content…

The other key issue is connectivity. Many airlines now see themselves as primarily connecting, rather than the destination. Therefore, airlines place great emphasis on number or airlines that connect at an Airport and the number of destinations served. Airport performance measures Airports can use certain tools to measure their own performance to check whether their operations are in-line with the airport objectives. Airport performance measures are designed to help airports around the world in their performance management efforts by providing a useful set of performance measures across a number of categories. The measures are divided into six categories, referred to as Key Performance Areas (KPAs). The 42 individual measures are referred to as Performance Indicators (PIs) (Wyman, 2012). 1. Performance

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