This study provides an in-depth analysis of the universes top airdromes in the civil air power industry every bit good as their client satisfaction degrees. Developing this work involved both desk and field researches in which quantitative methods were adopted during informations aggregation and analyses. The desk research focused on garnering background, fiscal and market-related information about the airdromes under survey while the primary research collected informations on their client satisfaction degrees. Consequences of analysed informations showed that airdromes with high rider traffic are faced with the job of over crowdedness.
This frequently leads to holds and long queuing hours for air hoses and riders severally. There was a high degree of rider dissatisfaction with in-migration, security and usage testing times. It was besides found that these airdromes are in despairing demands of enlargement plans because they presently lack sufficient capacities to manage their rider and aircraft volumes. In the visible radiation of these findings, it is recommended that capacity enlargement programs be developed and executed every bit shortly as possible. To cut down over crowdedness, take-off and set downing times should be tightly controlled and rationed among air hoses.
Advanced engineering can be employed at security and in-migration checkpoints to increase efficiency and cut down rider line uping times. Furthermore, airdromes should portion best patterns among themselves to increase industry public presentation.The Civil air power industry is one of the fastest turning industries in the universe. In 2006, it contributed $ 336 billion to the GDP and straight employed 4.8 million people ( Air Transport Action Group, 2008 ) .
Airports make up a major sector of the civil air power industry and in 2008 they generated worldwide grosss of $ 85 billion. In the same twelvemonth over 3.5billion riders were handled and 4.3 million employees worked on airdrome sites worldwide ( Karantzavelou, 2008 ) .The intent of this research is to look into the top 10 airdromes within the civil air power industry and to research rider satisfaction with their services. The airdromes under probe were chosen from Airport Council International ‘s ( ACI ) ranking of airdromes worldwide based on entire rider traffic in 2008.
The tabular array below shows the selected airdromes.The undermentioned subdivision is a reappraisal of bing literature on the airdrome industry after which the research methodological analysis employed for this survey is presented. Section four is the analysis of collated informations and the concluding subdivision concludes this work.Airports provide the installations required for interchange between air and surface conveyance. Aeronautical and non-aeronautical activities constitute the chief gross bring forthing beginnings for airdromes. The former includes proviso of tracks, taxi strips, aprons and terminuss while the ulterior comprises land handling, auto parking, grants and commercial services to clients ( Oum, Yu and Fu, 2003 ; Janic, 2007 ; Lorenzo, Luca and Giovanni, 1999 ) .
Non-aeronautical activities generates over 50 % of entire gross in major airdromes worldwide ( Graham, 2009 ; Schimm et al. , 2007 ; Basso and Zhang, 2008 ; Morrison, 2009 ; Zhang and Zhang, 2010 ) . Airports were ab initio entirely owned by authoritiess but many have late been privatised ( Carney and Mew, 2003 ; Humphreys, 1999 ) . Some authors describe bing ownership signifiers ( Oum, Adler and Yu, 2006 ; Vasigh and Gorgidooz, 2006 ; Pitt, 2001 ) but many focal point on how denationalization has impacted on airdrome ‘s efficiency, fiscal public presentation and safety ( Bruijne et al. , 2006 ; Oum, Yan and Yu, 2008 ; Vogel, 2005 ) . Although these surveies show higher public presentation in in private owned airdromes, it should be noted that airdromes vary in footings of location, substructure and regulative governments.
These factors frequently affect an airdromes public presentation therefore they should be considered when executing comparative analyses.
2.2 Airport Industry
This industry generated US $ 85billion in 2008, an addition of 10.6 % from the old twelvemonth ( ACI, 2008 ) nevertheless non-aeronautical activities accounted for about half of this figure ( Davitt, 2008 ) . Growth was driven by increased rider traffic but there may be a diminution this twelvemonth due to the recent economic downswing. The airdrome industry is characterised by fluctuation in ownership and regulative constructions, engineering, substructure and services ( Oum, Yu and Fu, 2003 ; Reinhold et al. , 2010 ) . Harmonizing to Fuhr and Beckers ( 2007 ) airdromes in United States are publically owned with private engagement through contract direction and rentals.
This contrasts with dominant ownership signifiers in Europe particularly UK where most airdromes are to the full privatised ( Gillen and Niemeier, 2007 ) . Denationalization has increased competition among airdromes ( Starkie, 2002 ) nevertheless, Barrett ( 2000 ) points out that competition is reduced when one company owns many airdromes.
3 World Top Airports
Airports compare their end products in footings of aircraft motion, riders and cargo traffic ( Fry, Humphreys and Francis, 2005 ) . However, Graham ( 2005 ) argues that aircraft motion is non an ideal measuring because it ignores aircraft size and type which are critical for measuring airfield operations. ACI ‘s most recent airdrome ranking by entire rider traffic was published in 2008 ; Chicago ORD, London-Heathrow and Los Angeles International airdrome ( LAX ) were among the universe ‘s top 10 ( ACI, 2008 ) . A survey by Schwartz ( 2009 ) showed that LAX has deficient capacity to pull off its high rider volumes which has led to increased client dissatisfaction.
A similar state of affairs is seen in Heathrow and Chicago ORD airports where traffic congestion and capacity jobs are doing client holds and service dissatisfaction ( Assaf, 2010 ; Humphreys and Morell, 2009 ; Barrie and Schofield, 2006 ; Johnson and Savage, 2006 ) . Therefore it can be inferred that increased rider traffic topographic points unsatisfiable demands on an airdrome ‘s installations ensuing in riders ‘ dissatisfaction.
The intent of this survey is to look into the universe ‘s top 10 airdromes with the highest one-year rider traffic. The cardinal steering inquiry is “ How were these airdromes able to accomplish their position? ” In add-on, we explore passenger satisfaction Heathrow airdrome. This research adopted quantitative methods during informations aggregation and analysis. A questionnaire study was used to garner primary informations while secondary informations was sourced from one-year studies, diaries, published statistics, official web sites etc. Questionnaires were administered through self-delivery for the benefits of decreased costs and answering convenience ( Bryman and Bell, 2007 ) . The questionnaire had largely close-ended inquiries and used a five point Likert-style evaluation system ( See Appendix A ) . Prior to the study, it was tested on five postgraduate pupils of Brunel Business School to guarantee lucidity and construction.
Convenience trying method was used due to limited resources and easiness of handiness. A upper limit of 40 respondents were targeted and after the study, collected information was translated into statistical formats utilizing Microsoft Excel. An analysis of the collated information is presented in the undermentioned chapter.
4. Research Findings and Analysis
This sector focuses on the research findings and discusses collated informations utilizing statistical graphs.
The first three subdivisions present an in-depth analysis of Chicago O’Hare, London Heathrow and Los Angeles International airdromes ( see full informations in Appendix B ) . After this follows an analysis on consequences of the questionnaire study so ends with a treatment subdivision.
4.1 Chicago O’Hare International Airport ( ORD )
ORD is owned by the City of Chicago and stands approximately 29km/18miles northwest and cardinal Chicago, in Illinois State, USA ( Airport-guides, 2010 ) . In 2008 it was ranked as the 2nd busiest airdrome when it handled approximately 71 million riders nevertheless, this was an 8 % lessening from the old twelvemonth ( ACI, 2008 )Figure 4.0: Passenger Traffic in ORDAircraft motion in 2008 dropped to 880, 000 although it had steadily been worsening since 2004. This may be due to the enterprise of its operators to bear down really high congestion fees during peak periods ( Johnson and Savage, 2006 ) .
Figure 4.1: Aircraft Motions in ORD
4.1.1 Airport Features
ORD has 4 terminuss with 180 Gatess and 6 tracks ( Airport-guides, 2010 ) . In 2003, its operators embarked on a modernisation plan to add a track and spread out the bing 1s ( Chicago Airport System, 2003 ) .
This was anticipated to assist cut down holds by 79 % ( Chicago Airport System, 2004 ) nevertheless ; it still suffers from utmost congestion ( Johnson and Savage, 2006 ) . ORD has one chief control tower and a smaller that serves the new track in its northern wing ( Hilkevitch, 2008 ) . In the terminuss, L-3 Linescan 110 TRX systems are used at checkpoints to heighten in-line luggage showing, security and rider motion ( Business Wire, 2004 ) . ORD offers assorted commercial services to its clients including auto parking, concern services, duty-free stores and eating houses. It besides has a multilingual touch screen “ Virtual Concierge ” work station with information in eight linguistic communications ( Chicago Airport System, 2006 ) .
In 2008, ORD had a market portion of 45 % in the part, a diminution from 51.
7 % in 2004. Despite this diminution, it ‘s runing grosss increased by 34 % to $ 655.5 million within the period.Figure 4.2: ORD ‘s FinancialsOver 50 % of its gross was generated from aeronautical activities despite the uninterrupted diminution in aircraft motions at ORD.Figure 4.3: ORD ‘s Revenue BreakdownORD ‘s major bearers are United and American Airlines who claim 86.5 % of the airdromes ‘ capacity.
A major rival to ORD in footings of domestic riders is Midway International Airport. It ‘s location near Chicago ‘s downtown country enables it offer more convenience to domestic travelers ( Centre for Asia Pacific Aviation, 2009 ) . General Mitchell International Airport besides competes with ORD through handiness of low-priced flights ( Mutzabaugh, 2010 ) .
Los Angeles International Airport ( LAX )
LAX is owned by the City of Los Angeles and operated by Los Angeles World Airports ( LAWA ) . Located in California State, USA, it is the most of import airdrome in that part ( LAWA, 2010 ) . In 2008, it was ranked as the universe ‘s 6th busiest airdrome by ACI when it handled approximately 60 million riders. However, this was a lessening of 4.
2 % from the old twelvemonth.Figure 4.4: Passenger Traffic in LAXAircraft motion besides showed a crisp diminution from the old twelvemonth to 622, 500 as shown in Figure 4.5.Figure 4.5: Aircraft Movement in LAX
LAX has nine terminuss, 153 Gatess and a 277ft control tower that services four parallel tracks. A U-shaped two-level roadway links all nine terminuss with luggage check-in installations on the upper degree and luggage claim on the lower degree.
With merely 12 Gatess in the international terminus, there is deficient capacity to pull off aircraft operations taking to about 3 hours holds. In-line luggage showing is non available in all terminuss and rider processing installations are in desperate demand of upgrading ( Schwartz, 2009 ; McCartney, 2007 ) . However, imaging engineerings are presently used at security checkpoints to enable faster rider processing ( Transportation Security Administration, 2009 ) . LAX has a parking country with a capacity of 25,000. It besides offers many services to riders including free birds, responsibility free gross revenues, concern Centres, eating houses and a first assistance station ( Net Resources International, 2010 ) .
Changes in LAX ‘s rider market portions in the part were reasonably changeless over the old five old ages from 34.9 % in 2004 to 33.9 % in 2008.
During the period, its operating grosss increased by 66.8 % to $ 774.3million.Figure 4.6: LAX ‘s FinancialsThe ascertained growing in gross is driven by aeronautical activities despite the diminution in aircraft motions.Figure 4.
7: LAX ‘s Revenue BreakdownLAX ‘s major bearers are American, United and Southwestern Airlines ( LAWA, 2010 ) . Its chief challenger in California is San Francisco International Airport ( SFO ) who closely followed LAX ‘s market portion of 34.9 % with 21.3 % in 2008. This is because of SFO ‘s freshly built international terminus that has larger capacity than that of LAX. United air hoses have shifted a figure of its Asiatic flights to SFO and international riders now prefer to be after their paths through SFO ( Schwartz, 2009 ; McCartney, 2007 ) .
Seaports of Los Angeles and Long Beach besides compete with LAX in footings of lading however faster transit is achieved by air ( California Department of Transportation, 2010 ) .
London-Heathrow Airport ( LHR )
This airdrome is owned and operated by British Airport Authority ( BAA ) . It is located in London, UK and was ranked by ACI as the universe ‘s 3rd busiest airdrome when it handled 67 million riders in 2008.
This was approximately 29 % of entire riders handled in UK airdromes throughout that twelvemonth ( Civil Aviation Authority, 2009 ) . However this extremum in rider traffic was reached in 2004 and has since remained reasonably changeless with no important addition.Figure 4.8: Passenger Traffic in LHRAircraft motion besides showed a little diminution from the old twelvemonth to 478, 520 as shown in Figure 4.
9.Figure 4.9: Aircraft Movement in LHR
LHR has five terminuss, two tracks and a freshly upgraded 285ft control tower ( Edwards, Matthews and McGinn, 2008 ) .
The handling system at Heathrow is extremely advanced with incorporate engineerings for pre-sorting, look intoing and loading luggage. Over 14, 000 bags can be processed every hr during extremum periods thereby salvaging clip for travelers ( Babcock Airports, 2009 ) . However in 2008 when the latest system was installed in terminal 5, its failure caused holds of many flights go forthing 1000s of riders stranded ( Winston, 2008 ) .
Although this job has been rectified, it showed how critical this characteristic is in any airdrome. LHR is good connected to the local conveyance system via trains and managers. In all five terminuss information desks, medical attention and commercial services are available to riders plus a inexpensive auto parking ( Heathrow Airport Guide, 2008 ) . Furthermore, full organic structure scanners are now used in Heathrow and are expected to heighten security ( Milmo, 2010 ) .
LHR ‘s rider market portion in UK has been reasonably changeless in the recent old ages from 34.9 % in 2004 to 33.9 % in 2008. During this period, its operating grosss amplified by 52.
5 % to ?1629.7 million.Figure 4.10: LHR ‘s FinancialsThis significant addition can be attributed to non-aeronautical activities in the airdrome that generated over 50 % of grosss as shown in Graph 4.
11.Figure 4.11: LHR ‘s Revenue BreakdownLHR ‘s major bearer is British Airways ( BA ) which utilizes an full terminus for its operations and accounted for 42 % of its aircraft motions in the winter of 2008/2009 ( Airport Coordination Limited, 2009 ) This implies that LHR ‘s fiscal public presentation is extremely dependent on riders go oning backing of BA.
LHR is one of the major hub airdromes in Europe nevertheless ; it faces strong competition from Charles de Gaulle ( France ) and Frankfurt ( Germany ) . These two airdromes were listed among the top 10 busiest airdromes in 2008 harmonizing to ACI ranking. However, Heathrow ‘s higher portion of intercontinental flights and larger mean place capacity per aircraft has kept it in the lead ( European Commission, 2008 ) . Within the UK, its rivals are London Stanstead and Gatwick airdrome nevertheless until late, both of these airdromes belonged to BAA therefore competition was really low.
During the study, a sum of 60 questionnaires were distributed out of which forty-six were returned but merely 40 were useable. Response rate was an acceptable degree of 76.7 % and as shown in Figure 4.
12, 65 % of the respondents were female and 60 % were from Asia. All respondents were between the ages of 18-28 and the intent of their trips was to analyze ( See full inside informations in Appendix C ) .100 %Figure 4.12: Demographic informations of respondents ( N=40 )
Analysis of Consequences:
As illustrated in graph 4.13, when respondents were asked to rate the importance of six factors of a good airdrome, 90 % thought line uping clip was the most of import followed by parking & A ; transit ( 85 % ) , airport comfortss ( 85 % ) and Entertainment & A ; Shops ( 82.
5 % ) . With respects to their satisfaction degrees of these factors in Heathrow airdrome, merely 50 % of the respondents were satisfied with queuing clip.Figure 4.13: Respondents Consequences
This research investigated three of the universe ‘s top 10 airdromes with the highest rider traffic.
It besides explored merchandise and service factors which riders considered to be of import in airdromes and their satisfaction degrees of these factors in Heathrow airdrome. Consequences from the primary research confirmed findings from the secondary research that rider satisfaction in airdromes with high rider traffic is low. This dissatisfaction arises from over crowdedness that leads to longer waiting periods particularly during in-migration, security and imposts testing. It was besides observed that the top 10 airdromes were all international airdromes that offered speedy transportation services to reassign riders. This encourages air hoses to utilize them as transportation points during long haul flights. Non-aeronautical activities histories for over 50 % of gross generated by these airdromes.
It is hence critical that they continually offer quality and diverse services to both air hoses and riders. By making this, they can guarantee high rider traffic for continued growing in non-aeronautical gross. Finally, engineering plays a major function in increasing the public presentation of these airdromes therefore they must endeavor to continually upgrade their systems to maintain their clients satisfied.
Decision and Recommendations
This survey investigated airdromes with the highest one-year rider traffic worldwide. Results show that with increased rider traffic, bing airdrome installations become unequal and this leads to client dissatisfaction.
Within this airdrome group, engineering is used to rush up rider processing at in-migration and security checkpoints while increasing effectivity. However, these airdromes are still overcrowded and are characterized with long waiting lines at treating points. Non-aeronautical activities now accounts for over 50 % of grosss in airdromes with high rider traffic. Therefore, airdromes are paying increased attending to commercial services offered to riders.
These consequences align with old research and will profit operators of turning airdromes by assisting them understand the challenges that come with increased rider traffic and how they can be managed.
In the visible radiation of these decisions, it is recommended that capacity enlargement programs be developed and executed in the studied airdromes.
To cut down over crowdedness, take-off and set downing times should be tightly controlled and rationed among their air hose clients. Furthermore, airdromes should portion best patterns among themselves to increase industry public presentation.
The usage of a little sample size due to unequal clip and unavailability to airport clients outside UK was the chief restriction. Besides, current economic studies about this industry were non freely available to the populace hence our analysis was restricted.
Further research should include a bigger sample size and recent information about the industry.