Page 28 - Security Today, January/February 2020

Protecting the
Aviation Ecosystem
Shifting to a more service-focused business model can help airports increase revenue BTy David Lenot
oday’s airports are bigger and more inviting than ever before. With so many peo- ple moving through them as well as an increasingly
wide array of services on offer, they can start to feel like miniature cities. It would be easy to think of these complex eco- systems as having multiple ways to make money. However, the reality is that, for airports, there are only two sources of rev- enue: aviation and non-aviation revenue.
Aviation revenues mean airports make money when aircraft take off and land. Airlines pay airports to use their infra- structure, including runways and build- ings. Aviation-related activities represent half the revenue generated by an airport. The other half is generated by non-avia- tion activity, including retail, parking and any other services that an airport can pro- vide to a passenger or an airline.
Essentially, airports have an infra- structure that is used by airlines, ground handlers, retailers and passengers every day. But, in order to improve operations and increase revenue, airports are going to have to think about more than just infra- structure.
Instead of simply being a place where aircraft land and where people complain about wait times, airports need to start see- ing themselves as service providers for these various groups. By adopting this mindset, they will be able to increase their ability to deliver better services while helping to make the entire ecosystem run smoothly.
Aviation-side Revenue
Most airports struggle with capacity. It takes time for an aircraft to land, get to a gate, offload passengers, board passengers and then take off again. This process is the turn- around time. When an airport can reduce the turnaround time, everyone benefits.
First, airports benefit because they can schedule more flights to access their infrastructure. This leads to an increase in revenue because they collect fees from
more airlines. At the same time, individual airlines save money because they actu- ally access the infrastructure for a shorter amount of time.
If an airport wants to increase avia- tion revenue, they need to increase the number of aircraft landing and taking off. But there are some fundamental prob- lems here. From the outside, it might seem that the easiest solution would be to add more runways and terminals to their infra- structure. Unfortunately, given the limited space in and around airports, this is all but impossible for most of them.
That said, in the traditional way of thinking, even if they could add more infra- structure, airports do not actually control turnaround time. They simply provide the infrastructure for the airlines to use. This means to increase aviation revenue, airports are going to have to expand their offering to include infrastructure and services.
By providing services that help airlines and ground handlers perform their tasks
more efficiently, airports can support them in their efforts to reduce turnaround times. This will result in a greater number of air- craft using the airport, which is positive for everyone.
Standalone Processes Slow Operations
One of the challenges associated with de- creasing turnaround time has been secu- rity. Security is a standalone process that exists within the airport but is driven by third parties, namely governments through police and customs.
From the airport’s perspective, one of the main impacts of security is the imposi- tion of hard stops between passengers and aircraft. This can draw out turnaround time and exists outside of the airport’s control. As a result, security can be seen as a significant pain point for both airports and airlines because it keeps everyone from doing things faster.
From our perspective, the top priority
28
JANUARY/FEBRUARY 2020 | SECURITY TODAY
AIRPORT SECURITY
1000 Words/Shutterstock.com