Airports Need To 'Grow Or Die', Warns Expert
Airports need to "grow or die" - that's the view of an international expert on airport development.
Dr John Kasarda, speaking at a conference in Manchester, UK, said that if airports are to remain successful in future years then they need to increasingly view themselves as "cities" and "destinations" in their own right, not merely transport hubs.
He told the Innovation Manchester conference that airports' future financial success rests not simply on expanding the number of flights and passengers they serve, but by developing the airport's facilities for passengers and creating business parks.
A director of the Kenan-Flagler Business School at the University of North Carolina, Dr Kasarda said: "Stability is not an option for passengers or cargo - you either grow or die".
He added that attempts to put caps on passenger numbers or flights, as seen recently in the US in New York, would be counter-productive to airports' development in the future. He said these measures are tantamount to "basically putting caps on" future economic performance.
'Aerotropolis' Theory
Kasarda is leading exponent of the 'Aerotropolis' Theory - a model which suggests that economic growth can be achieved through the development of airports.
Airports, he said, must increasingly look to build themselves as not merely airports but as urban centres in their own right - with business parks, leisure facilities and transport links all clustered around the airport itself.
"Airports have changed from places of departure to places of destination. Accessibility is often easier than into cities", said Kasarda.
With this in mind, he said the key for airports is to focus on raising revenue beyond aeronautical sources such as landing fees.
Kasarda pointed to the development of Seoul-Incheon International Airport in South Korea, where a £30 billion city is being developed on 1,500 acres of land next to the airport, and the new Al-Maktoum International Airport which is being developed as part of the Dubai World City complex, as examples of how airports should develop in the future.
Airport Retail Outlets
Related to this conception of airports as drivers of economic performance, Kasarda added that airports should focus on securing upmarket retailers for their terminal facilities, which maximise footfall.
As an example, he said that Hartsfield-Jackson Atlanta International Airport in the US has five out of the top 10 retailers in its terminal buildings.
Karsada said airport retail outlets are an important source of revenue, and so airports should do everything possible to secure big brand names which will maximise returns.
The speech certainly impressed watching delegates, who included officials from UK regional airport operators Peel Holdings, which runs Liverpool John Lennon Airport among others, and the Manchester Airport Group.
Peter Nears from Peel Holdings commented: "The more the idea spreads the better it will be for business. We will lose our competitive advantage if we don't address this."
Source - Airport International's Aviation Correspondent
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