Upload
rathneshkumar
View
224
Download
0
Embed Size (px)
Citation preview
8/14/2019 Airport Bench Marking -Global Perspective
1/29
1
AIRPORAIRPORT
BENCHMARKING-GLOBABENCHMARKING-GLOBALPERSPECTIVEPERSPECTIVE
8/14/2019 Airport Bench Marking -Global Perspective
2/29
2
IntroductionIntroduction
An economic benchmark is a standard by whichbusiness performance is measured.
The report measures and compares the performance ofseveral pivotal aspects of airport operations.
Productivity
employee productivity,
capital productivity Revenue generating efficiencies of the respective
airports
8/14/2019 Airport Bench Marking -Global Perspective
3/29
IDENTIFICATION OF PROBLEMIDENTIFICATION OF PROBLEM
Indian airports besides having adequateresources are not able to make properutilization of such resources.
8/14/2019 Airport Bench Marking -Global Perspective
4/29
3
ObjectivesObjectives
To study and compare the performance of severalimportant aspects of airport operations.
To examine the relationships between variousperformance measures and airport characteristics to
provide better understanding of the observed differencesin airport performance.
To identify best practices for possible incorporation intothe organizations procedures to increase efficiency,
quality and customer satisfaction.
8/14/2019 Airport Bench Marking -Global Perspective
5/29
4
Contd...Contd...
Identify effects of
Ownership and Institutional forms
Extent of focus on non-aviation (commercial) activities
Extent of outsourcing
on productivity, unit cost, financial performance, and AirportUser Charges
o
To provide Indian airports with meaningful globalcomparison of airports.
8/14/2019 Airport Bench Marking -Global Perspective
6/29
6
ScopeScope
Nine airports each have been selected from threedifferent geographical regions these are AsiaPacific, Europe, and North America.
For individual analysis the airports with consistentdata on number of runways have been selectedtaking into consideration number of gates as well
as terminal size to reveal efficiency. In some cases data are only available for a group
of airports instead of an individual airport.
8/14/2019 Airport Bench Marking -Global Perspective
7/29
PARAMETERPARAMETERS
8/14/2019 Airport Bench Marking -Global Perspective
8/29
LABOUR PRODUCTIVITY2) Passenger per employee
3) Aircraft movement per employee
4) Workload unit per employee
5) Aggregate output per employee
SOFT COST INPUT PRODUCTIVITY8) Passenger per unit of soft cost inputs
9) Aggregate output per unit of soft cost input
Economic variables
8/14/2019 Airport Bench Marking -Global Perspective
9/29
FINANCIAL RESULTS2) Total revenue per passenger
3) Revenue per employee4) Revenue per movement
8/14/2019 Airport Bench Marking -Global Perspective
10/29
TERMINAL PRODUCTIVITY MEASURES2) Passenger per gate
3) Passenger per square meter terminal area
RUNWAY PRODUCTIVITY6) Aircraft movement per runway
Capacity variables
8/14/2019 Airport Bench Marking -Global Perspective
11/29
ECONOMIC PARAMETERS :ECONOMIC PARAMETERS :
Reveals that its employees are more efficient as they are imparted withregular training to handle passengers. Another reason for this is moreautomated systems being practiced inside the airport terminalsLa Guardias terminals are operated directly by airlines which reduces
the need for more number of employees.
8/14/2019 Airport Bench Marking -Global Perspective
12/29
Efficient employeesTechnically advanced processesAircraft movements for this airport are 5 times incomparison to Oslo and Brisbane and also has efficient staffto manage it.
8/14/2019 Airport Bench Marking -Global Perspective
13/29
Flat governance and management structure.Less international traffic hence demands for less employeesto handle domestic passengers as they require to be servedwith less number of facilities.
8/14/2019 Airport Bench Marking -Global Perspective
14/29
Technologically advanced as compared to other airports for
performing it operations.Being part of Europe it gets updated to new technologiesevery now and then.Winner of the award for punctuality three times by
association of European airlines (AEA).
8/14/2019 Airport Bench Marking -Global Perspective
15/29
Airport provides wide range of passenger and aircrafthandling services by its own.Enjoys economies of scale and feels no need to outsourcethese activities.
8/14/2019 Airport Bench Marking -Global Perspective
16/29
3 new airlines and 23 new non stop destinations have been addedwhich exploit the added capacity with the new terminal.Increased route network by low cost carriers and traditional networkhave realized the potentials of the airport.Business and tourist travel has grown in recent past.
8/14/2019 Airport Bench Marking -Global Perspective
17/29
FINANCIAL RESULTS:FINANCIAL RESULTS:
Most of the Terminal Activities are performed directly bythe Airlines and Major operations are concessioned.More share of non aeronautical revenue.
8/14/2019 Airport Bench Marking -Global Perspective
18/29
Passenger has to pay on his/her ticket for international service ordomestic service as the case may be.Best airport worldwide makes the airport earn by facilitating largernumber of passengers.
8/14/2019 Airport Bench Marking -Global Perspective
19/29
Minimum landing charges is Rs 150000 even when discount is offeredduring off peak period.The airport has more frequent flights with smaller aircrafts which
provides advantage by charging the minimum landing fees.Total operating revenue is very high with high operating margin i.e.67%
TERMINAL PRODUCTIVITYTERMINAL PRODUCTIVITY
8/14/2019 Airport Bench Marking -Global Perspective
20/29
TERMINAL PRODUCTIVITYTERMINAL PRODUCTIVITYMEASURESMEASURES
Practices swing area concept so makes best utilization of its gates.Most of the airlines make use of aerobridges which makes sure that
passengers of particular flight pass through the airline by which they
are going to travel and avoids confusion.
8/14/2019 Airport Bench Marking -Global Perspective
21/29
The airport handles less number of total passengers and also only 3%of international traffic which uses terminal for more time.It has huge space available as compared to passengers it handles, thisensures passengers to feel comfortable inside the terminal building.
8/14/2019 Airport Bench Marking -Global Perspective
22/29
RUNWAY PRODUCTIVITYRUNWAY PRODUCTIVITY
LHR is the third largest airport worldwide the airport and is able to handlemaximum aircrafts per runway because of the parallel runways facilitatesimultaneous operations.Being the busiest airport in passenger traffic handling it is well equipped withtechnologies in the airside to speed up the operations..
It has rapid exit taxiways makes possible maximum utilization of the runways.
8/14/2019 Airport Bench Marking -Global Perspective
23/29
La Guardia International Airport ranks
highest in 4 parameters which makesthe airport an overall benchmark forpracticing strategies worldwide.
8/14/2019 Airport Bench Marking -Global Perspective
24/29
RECOMMENDATIONSRECOMMENDATIONSAirports contract with third party
terminal operators as maximum numberof employees are required in terminal tohandle passenger operations.
Outsourced to airlines which isoperating from that terminal as thiswould resist an airline to deteriorate theservices and it would provide services
more efficiently for the reason toimprove the operations for its ownairline passengers being served.
8/14/2019 Airport Bench Marking -Global Perspective
25/29
Runways built are able to operatesimultaneously as this would make surethat available staff is utilized properly atgiven point of time.
Multitasking manpower.
Indian airports need to take make or
buy decision carefully. Provide passengers with varied services
of better quality.
Increase retail space as it involvesnegligible cost on the part of the airportoperator but provides greater revenue.
8/14/2019 Airport Bench Marking -Global Perspective
26/29
Airport operator can charge premiumcharges if the regulatory authority
allows.Develop competition among airlines to
use the airport.
Practice swing area concept.
Rapid exit taxiways to speed up theoperations per hour to meet growingdemand in future.
8/14/2019 Airport Bench Marking -Global Perspective
27/29
OVERALL SUGGESTIONSOVERALL SUGGESTIONS
Market India, by building a powerful andunique position for the reliable, safe,value-for-money, tourist-friendly brand.
Initiate by playing on volumes to reapthe benefits of economies of scale.
Development of real estate, services,
cargo operations, lounges, basics, F&Boutlets.
8/14/2019 Airport Bench Marking -Global Perspective
28/29
8
BibliographyBibliography
Air Transport Research Report (ATRS)-2007
Part I Summary report
Part II Full Results and Analysis
Part III Airport Profiles, Methodologies and Data description
www.indiastat.com
Research methodology methods & techniques-C.R. Kothari
www.atrsworld.org- Airport Benchmarking Report by Prof. TaeH. Oum
Airport Benchmarking To Maximize Efficiency 6 July 2006 byAirport Council International
http://www.indiastat.com/http://www.atrsworld.org-/http://www.atrsworld.org-/http://www.indiastat.com/8/14/2019 Airport Bench Marking -Global Perspective
29/29
Thank YouThank You