Exclusive extracts from this 120-page-long report:
- What is the business?
Airport operators derive the bulk of their revenue from lease agreements with passenger and cargo airlines, which pay aircraft landing and parking charges, and passenger fees. These revenues are used to determine the cost per enplaned passenger (CPE), a key indicator of the airport industry's financial performance. An increasing share of airport operators' revenues is generated from activities that are non-aeronautical in nature. They comprise fees from the rental of airport premises to airlines (maintenance facilities, offices, warehouses, etc.), the provision of passenger check-in and security services, food and beverage concessions, retail and service concessions, parking, car rental, and other miscellaneous revenues. […]
- What are the main markets?
The propensity to travel increases with wealth. Thanks to a growing middle class, which should be accompanied by higher spending power, people in emerging countries are set to travel more frequently in the long term. Given the vast size of China's and India's populations, more trips per capita means air travel has significant growth potential. However, while the number of average annual trips per capita in emerging economies such as China and India is poised to treble over the next two decades, mature regions such as North America and Europe will continue to show the highest number of air trips per capita. [...]
- Who are the key players?
European airports Frankfurt and Schiphol remain the best connected hubs in the world, while Paris-Charles de Gaulle and London-Heathrow are also ranked among the top 10 global hubs. Other well-ranked European hubs are Munich, Madrid-Barajas and Zurich. The leading hubs in the US are Dallas-Fort Worth, Atlanta, and Chicago-O'Hare. [...]
- How intense is competition?
The ongoing expansion in the aviation market is mainly fuelled by LCCs, which easily switch routes and aircraft between airports to optimise yields. This means airports now increasingly compete to appeal to LCCs in order to continue growing their business. In addition, FSCs are also becoming more “mobile”. For example, Lufthansa has moved 5 A380s from Frankfurt to Munich, from where it will launch services to the Asia-Pacific region in 2018. [...]