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List some major issues which need serious consideration of the airport management.

List some major issues which need serious consideration of the airport management.


1 Answer

Some nations earn a major chunk of their GDP by travel and tourism industry. For international trade to be fruitful enough for a country to fuel its economic growth, the airports have to be equipped with the latest technological advancements as they are an important constituent of Air Transportation System, contributing not only to the macro environment of transportation but also increasing the life quality of regional economies and participate directly in wealth creation of the nation. Besides this they have the onus of making the guests coming from across the boundaries feel at ease and give an impression of the global standard. This would require pumping of huge resources. Therefore, the importance of evaluation of whether the resources are being used in a prudent and meticulous manner can neither be neglected nor dwarfed.

Environment in which the airports operate is quite a complicated one and with the increase in the number players entering this area the competition are only getting further aggravated. Also, intensifying the challenges is the fact that the performance indicators available for airports are very large in number and lack uniformity with which they are used. Adding to the list is the absence of standardization in the metrics in this industry to benchmark the operations and finances at airports. Also adding to the woes are the terrorism threats and hikes in fuel prices.

Some of the essential issues in this regard are following:

  • Should airports be run as commercially oriented profitable concerns?
  • How should one improve airport economic efficiency?
  • Whether profits from larger airports should be used to cross-subsidize loss-making smaller airports?
  • Should be privatized?

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June 24, 2019