PLIEGO DE PRESCRIPCIONES TÉCNICAS PARTICULARES
ARTICULO.4.2.3.-RELLENOS LOCALIZADOS DE MATERIAL DRENANTE 1 Definición
D1.1 General Airport Management — Economics ... 109 D1.2 Meeting the Capacity Demand... 109 D1.3 Financing Airport Capacity Expansion ... 109 D1.4 The Privatization Trend ... 110 D1.5 The Need for Economic Regulation ... 111 D1.6 Airport Performance and Efficiency ... 112 D1.7 IATA Recommendations ... 113
Section D2: Airport Cost Structures and Revenue Sources
D2.1 Airport Cost Structures... 114 D2.2 Airport Revenue Sources ... 114 D2.3 IATA Recommendations ... 115
Section D3: Airport Investment Decisions and Financing
D3.1 Airport Investment Decision-Making ... 116 D3.2 Airport Financing Options — Debt vs. Equity ... 116 D3.3 Airport Financing Options — Pre-Funding Through Charges ... 118 D3.4 IATA Recommendations ... 119
Section D4: Aeronautical Charge Policies
D4.1 Aeronautical Charges... 120 D4.2 Determining the Cost Base for Aeronautical Charges... 120 D4.3 Aeronautical Charging Policies ... 124 D4.4 Market-Based Options... 125 D4.5 Consultation with Users ... 128 D4.6 IATA Recommendations ... 128
Section D5: International Cost Variations
D5.1 Airport Benchmarking Data ... 130 D5.2 IATA Recommendations ... 133
CHAPTER D — AIRPORT ECONOMICS SECTION D1: AIRPORT MANAGEMENT
D1.1 GENERAL AIRPORT MANAGEMENT — ECONOMICS
Up until the late 1970s, airports were seen as nothing more than an extension of government. Since then, however, the links with government have progressively loosened and the pressure for airports to become commercially viable enterprises has grown. This viability included running the airport as a business, able not only to cover its costs (including capital costs) through revenues, but also to arrange for the necessary financing of airport development programmes.
Invariably, this challenge has been met with much success. Airports have generally been able to generate substantial profits and secure private sector financing for airport development programmes, usually at a low cost of capital. Further, airports have been able to do this despite the fact that the demand for airport capacity, facilities and services is derived indirectly from airline scheduling plans. While an airline's operating plan is more tactical, with scheduling decisions being made based on short-term traffic forecasts covering the next 6-18 months, the airport planning cycle is more strategic and long-term where the time frame from initial conception to completion may take 5-10 years.
This then is the primary challenge for airport management — matching capacity provision with demand while maintaining financial viability or profitability and an acceptable level of service.
D1.1.1 Issues Relating to Airport Management
In recent years government policy-makers and airport planners alike have generally been contending with two main issues:
1.
How to meet the long-term growth in traffic demand with the necessary runway capacity and terminal facilities.2.
How best to finance airport expansion in view of limited government budgets.With respect to this latter point there has been an increased focus on developing the commercial side of an airport and improving airport financial performance, while encouraging the involvement of the private sector in both the management and financing of airport infrastructure.
D1.2 MEETING THE CAPACITY DEMAND
Apart from the short-term influences of the economic cycle, growth in air travel demand has generally been outstripping the supply of infrastructure and will continue to do so for the foreseeable future. However, passenger growth can be accommodated through higher load factors, increased aircraft size, or increased frequencies. The primary capacity concern to airport managers therefore is the composition of traffic in terms of aircraft operations; this will have an impact both in terms of the infrastructure needed and the cost recovery of related expenditures. As already discussed in the chapter on forecasting, how an airline will meet the demand through its operational plan is of significant importance to airport planners.
D1.3 FINANCING AIRPORT CAPACITY EXPANSION
Traditionally, the vast majority of airports around the world were directly owned and operated by national, regional or local governments. In most cases the civil aviation authority or department, being part of the transport ministry, operated the airport(s), and in some cases the CAA would also be , responsible for providing air traffic control and aeronautical meteorological services.
ICAO has, for a long time, promoted the concept of an autonomous authority that has managerial and financial autonomy from government, yet is wholly owned by government. Aside from reducing
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the financial burden on governments, autonomous authorities have the advantage of creating a business culture — improving financial performance and quality of service.
With professional management in place that is both financially accountable and able to undertake and implement long-term development plans, the government-owned autonomous airport authority has in a number of cases been a precursor to the privatized airport. Such was the case with the British Airport Authority, established in 1966, which later became a limited company (BAA Pic) with the Airports Act of 1986, owning seven airports. Shares in BAA Pic were subsequently floated on the London Stock Exchange in 1987.
IATA POLICY POSITION
The airline industry generally favours the trend what is commonly referred to as the privatisation of airport and air navigation entities in that the facilities and services may be provided in a more cost efficient and effective manner. It is concerned, however, that the process often leads to increases in the cost base for charges, and thus, higher user charges. The requisites for industry support for privatisation are: meaningful consultation with the user community prior to and
during the privatisation process; appropriate legislation obligating observance by the commercialised/privatised entity of the ICAO Policies on Charges; and the designation of an effective and independent economic regulatory mechanism providing oversight of charging practices.
D1.4 THE PRIVATIZATION TREND
Privatization1 of, or private participation in airport management has usually taken the form of a long-
term lease of all or part of the airport facilities and services, with the responsibility for their expansion
and development resting with the concessionaire. Such leasing arrangements can take the form of
build-operate-transfer (BOT), build-own-operate-transfer (BOOT), build-transfer-operate (BTO), and
other variants thereof.
Lease payments can take the form of an annual royalty payment or down payment toward an eventual
privatization. Examples of these airport leasing arrangements are most prevalent in Latin America, although we also find examples in Africa, Australia and Canada. The problem with such leasing arrangements is that government is in a position of strength vis-à-vis the concessionaire when it comes to negotiating rights to operate facilities that have no alternative use and charge monopoly rents. With the concessionaire in most cases being given the right to set aeronautical charges, in the absence of effective price regulation, he can recover this cost from the users of the airports facilities and services. The incentive for the concessionaire to negotiate the best deal possible with the government is therefore low.
Commercialisation factors
Ownership:
Accounting Methodology: Capital Financing Options: Employee Status:
Legal Status: Entrepreneurialism: Management Reports to: Taxation: Management Focus: 0% <--- 100% State owned Cash accounts State budget Civil servants Government Little Political Low Government policies 100% 100% Public Shares Commercial practices All options Corporate Private Considerable Board of Directors As private companies Profits/Share Value