Advantages
Many commercial airports across the country are notorious for implementing innovative ideas to generate new revenue and to become less dependent upon traditional sources such as landing fees and lease space. Providing ground handling service to airlines for a profit is one of these innovative ideas, and has a number of advantages besides the potential revenue opportunities.
Air service development is one opportunity that should be explored. For instance, the Mobile Airport Authority was faced with challenges of retaining air service when management suggested to US Airways that the airport could provide ground services at a reasonable rate. The airport began service after 9/11, and the staff is now fully-trained in the airline’s systems and operations, including checking in passengers and baggage, selling and issuing tickets, and marshaling aircraft in and out of the assigned parking position. The airport provides all ground handling equipment and was actually able to obtain funding from the Department of Transportation from the Small Community Air Service Development Pilot Program to support the operation. Although a number of the existing airlines at Mobile have not contracted with the authority to provide the service, the operation is a great marketing tool when approaching new airlines to service the market. Reduced staffing, training headaches, equipment cost and reasonable turn rates are great tools in convincing an air carrier to use the airport.
Another advantage of providing ground services is the airport’s ability to control customer service. Anyone who lives in Jacksonville, Flor., will tell you that one of their biggest complaints concerning the airport is the time it takes to get their luggage in baggage claim. For years, the Jacksonville Airport Authority has had to endure complaints from passengers, and management has decided to take a unique approach to solve the problem, which is to offer the ground handling service to the airlines. To ensure a professional approach to the problem, the authority drafted a business plan and decided to acquire the expertise of Fraport AG, a German company that has extensive experience in the business. The operation will not begin until the authority secures a contract with at least one carrier, and the economies of scale will probably not be realized until additional airlines sign up for the service. However, the authority is confident that the long-term opportunities will outweigh the short-term costs.
Advantages Many commercial airports across the country are notorious for implementing innovative ideas to generate new revenue and to become less dependent upon traditional sources such as landing fees and lease space. Providing ground handling service to airlines for a profit is one of these innovative ideas, and has a number of advantages besides the potential revenue opportunities. Air service development is one opportunity that should be explored. For instance, the Mobile Airport Authority was faced with challenges of retaining air service when management suggested to US Airways that the airport could provide ground services at a reasonable rate. The airport began service after 9/11, and the staff is now fully-trained in the airline’s systems and operations, including checking in passengers and baggage, selling and issuing tickets, and marshaling aircraft in and out of the assigned parking position. The airport provides all ground handling equipment and was actually able to obtain funding from the Department of Transportation from the Small Community Air Service Development Pilot Program to support the operation. Although a number of the existing airlines at Mobile have not contracted with the authority to provide the service, the operation is a great marketing tool when approaching new airlines to service the market. Reduced staffing, training headaches, equipment cost and reasonable turn rates are great tools in convincing an air carrier to use the airport.Another advantage of providing ground services is the airport’s ability to control customer service. Anyone who lives in Jacksonville, Flor., will tell you that one of their biggest complaints concerning the airport is the time it takes to get their luggage in baggage claim. For years, the Jacksonville Airport Authority has had to endure complaints from passengers, and management has decided to take a unique approach to solve the problem, which is to offer the ground handling service to the airlines. To ensure a professional approach to the problem, the authority drafted a business plan and decided to acquire the expertise of Fraport AG, a German company that has extensive experience in the business. The operation will not begin until the authority secures a contract with at least one carrier, and the economies of scale will probably not be realized until additional airlines sign up for the service. However, the authority is confident that the long-term opportunities will outweigh the short-term costs.
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