Airport Operations One City, Six Airports, Heathrow ... · on its six airports: Heathrow, Gatwick,...
Transcript of Airport Operations One City, Six Airports, Heathrow ... · on its six airports: Heathrow, Gatwick,...
Airport Operations
One City, Six Airports,
Heathrow, Gatwick, Stansted, Luton, London City & Southend
Introduction
In the contemporary competitive airport transport industry, airport managers are
confronted by the demanding task of creating and sustaining not only a safe, but also efficient
operation in a dynamic and rapidly developing air travel business (Porter, 2008). Strategic
management of today’s challenging airport operations calls for excellent airport strategy, striking
a balance between capacity and demand, exploring alternatives for airport expansion and
development, optimal operational frameworks, reasonable travel charges, and effective market
development (City Airport Development Plan, 2013, p.19). This research paper attempts to
critically analyse the consequences of physical design and capacity limitations for the
Metropolitan London City airport network. It also assesses the strategy of the London city based
on its six airports: Heathrow, Gatwick, Stansted, Luton, London City & Southend. Lastly, the
paper suggests an alternative strategy for London as a city and its airports.
Overview of London Airport Industry
London is the capital and largest metropolitan of England physically located on the
country’s south east and the most effective travel alternative for both long- and short-haul travels
primarily because of the city’s multiple airport network (See & Li, 2015, p.2). London has a
multiple airport system that serves as epicenter of England linking the city not only to other
destinations in England and the UK, but also the whole world. Being located in an Island
country, the city offers not only the most convenient, but also competitive business and leisure
travel to the dynamic international travelers. The London airport system is served by six
internationally competitive airports namely: Heathrow, Gatwick, Stansted, Luton, City &
Southend.
Figure 1: London City Airport Connectivity
The London airports industry comprises airport operators that manage diverse niches
such as inbound, outbound, business, and leisure segments. The sector relies on both UK airlines
and other international air travel companies as both create the airport infrastructure and support
to passenger as well as freight operators. The six airports focus their operational strategy on
differentiation in terms of the primary catchment areas, types of travel (local and international
flights, scheduled and charter carrier flights, and business or leisure travel), and other areas of
specialization. Furthermore, the airports attempts to diversify their income sources largely by
expanding their services into related market segments, including retail concessions, car hire
services, and car vehicle parking services.
Business Landscape
London is increasingly transforming into a global force to be recognized, with a number of
factors creating an enabling environment for business and investment ventures in the city. First,
the fact that the UK constitutes one of the principal, comprehensive trading countries
international makes London a more competitive location for business and investments. Also, it
features several incentives for both startups and large-scale enterprises. In fact, the city was
named in the European Digital City Index as the leader in the entire Europe for supporting
startups and scale-ups and second for supporting innovation and entrepreneurship. Other than
other well developed basic infrastructure, it has a well-developed technological infrastructure to
support business ventures. In 2015, technology based firms in the city yielded about $1.6 billion
in the initial nine months, and tech firms are forecasted to scale to 45,000 and generate over 12
billion pounds of economic activity in the next ten years (Tech City, 2016). Moreover, London
has a relatively educated labour market with an increasingly diverse range of digital skills and
competencies, while 251,590 of the city’s digital employment found within the city. This is an
important asset to the industry as an educated workforce can help the airport steer up innovation
and quality improvement of the facility, thus enhancing its competitive advantage among other
airports serving the general multi-airport system. Tourism is taking a centre stage in London city
and its environs. The city is characterized by numerous tourist attraction sites and figure 2 is just
one among many of them. Inflow of tourists directly influence airline traffic in the city. Another
economic imperative is the business friendly corporate tax regimes that are set as low as 20%.
According to official statistics, R&D tax credit for firms with a 500-and-less workforce scaled to
225%, among other tax related incentives (Tech City, 2016). The low tax regimes serve as a
magnet to attract investors and encourage entrepreneurship within the London airport area.
Figure 2: southbank Centre (A leading tourist attractiion in London city)
London Catchment Area
London is the largest international air market in the world, in terms of the number of
local and international passengers. It is worth highlighting that a combination of the passenger
traffic that characterizes the five main London airports significantly exceeds the traffic of any
other city in the global scene. A significant majority of the traffic that operate in London’s
(approximately 87 %) is origin-destination traffic.
London producing more than 20% of UK's GDP, is the primary main thrust moving the
UK economy. With London being the biggest worldwide air market on the planet, air transport
network matters to economic development. Airports are a crucial piece of London's
infrastructure. London airport terminals are the gateway to the worldwide economy and help in
pulling in outside investments. Privately owned London air terminals are operating on a business
objectives and the international air remain crucial for the businesses.
London, with its wide system access, has a decent aviation connectivity which helps in
producing benefits in the tourism sector. London, with its rich cultural and historical legacy,
makes it a perfect tourism destination. In terms of global guests, London is a standout among the
most visited city globally. London's tourism and aviation sector had a noteworthy effect
regarding economic boost with the iconic 2012 London Olympics.
Most London Airport are city center airport, set in a prime area at the Royal
Docks and they have their own direct rail link.
London Airports are travelers' choice of airplane terminal, because of their ease of access,
straightforwardness of utilization and being fast and effective. The air terminal has vital
influence in driving business efficiency and in supporting internal ventures.
Consequences of Physical Design and Capacity Limitations of London City Airport
London City Airport is an international airport geographically situated in the Royal
Docks, London. The airport lies between the prime centers, the Royal Docks ad Canary Wharf,
and around 11 km east of London (London City Airport, 2016). Compared to other airports in
London, London City airport is the most ideal point of departure for individuals intending to
travel by air in and out of London City to Europe and other parts of the world. This is largely
because of its convenience and ease of access as it is situated approximately 6 miles and 3 miles
east of Central London and from Canary Wharf, respectively. Owing to its large size, arrivals
and departures via the airport can be comparatively faster and easier compared to other air travel
terminals in the same region. According to London City Airport Consultative Committee
(LCACC, 2016), besides the ease of access, efficiency and simplicity in visitor and airport
operation management at London City airport elevate the quality of travelers’ experience, hence
attracting multiple customers.
Furthermore, the business community in London City heavily depends on the
international connectivity the airport provides, especially to trade successfully in the networked
global economy. The facility is at the heart of economic rejuvenation and regeneration and is the
driving force for business productivity and local investment in the region. It is a catalyst for
business ventures in east London. This year, LCACC estimates that the airport generates almost
£ 700 million annually for the overall UK economy, mainly via passenger spending, employment
opportunities, the larger supply chain and productivity returns. Also, it serves as the main
gateway to the capital London for many inbound as well as outbound travelers. According to the
London City Airport statistics, more than 3 million passengers use the airport, with 60% and
61% of the passengers travelling for business and being inbound from overseas, respectively.
Owing to its outstanding performance in the whole of London as well as UK airport niches, the
airport this paper holds that it is an award-winning airport. For instance, recently it scooped the
APCRG award for 'Responsible Business Champion in 2015, and the ACI Europe award 'Best
Airport in for three consecutive years - 2014, 2013 and 2012, respectively.
Passenger Profile
Presently London City Airport connects London to approximately 50 destinations within
Europe and delivers flagship business and leisure travel within Europe and around the world. In
2013, the facility reported 73,713 and 3,290,264 aircraft movements and passengers,
respectively, with an 18.38 percent increase in the number of passengers from the previous year
to 4,319,521 passengers handled in 2015 (London City Airport, 2016). The following charts
presents an overview of the passenger distribution based on several demographics.
Figure 3: Passenger Age Distribution at London City Airport (London City Airport, 2016)
Figure 4: Passenger Gender Distribution (London City Airport, 2016)
Figure 5: Inbound and outbound journeys London City Airport 20 (London City Airport, 2016)
Figure 6: Passenger Distribution based on reason for travel (London City Airport, 2016)
Figure 3 shows that London City airport serves more adult passengers with the majority
aged 35 years and above. Figure 4 reveals that the airport serves more male passengers (65%)
compared to female (35%), while Figure 5 indicates that the airport serves more inbound
travelers (60%) than outbound traveler (40%). Similarly, more business-oriented passengers
(61%) frequent the airport compared to leisure travelers as depicted in Figure 6.
Airport Activities
London City Airport provides diverse facilities and services to improve the travel experience
of its passengers and keep up with the pace in the air travel industry. These facilities include:
passenger tracking system, self-bag tagging facilities, energy-saving solar-powered runway
lighting, reclaim luggage, shopping, eating and accommodation, car parking and hire, ATM
counters and Travelex Bureau de Change, complimentary Wi-Fi, and Facebook travel portal and
the London City Airport app to offer immediate updates and real time information such as
advices, and flight details (London City Airport, 2016). Innovation is increasingly becoming the
most effective strategy to realize a better competitive advantage in the airport industry (Bentley,
2014, p.17). To keep up with the pace and effectively compete with other market players,
London City Airport has had no other option than continually offer a wide variety of facilities
and improve the quality of its services. Continued innovation and higher quality in service
delivery is the key to the airport’s potential to succeed in the current business environment
especially given the existence of many rival airports in London and the UK at large.
Physical Design and Capacity
Figure 7: Aerial View of London City Airport (CADP, 2013)
Figure 8: Geographical Location of London City Airport (CADP, 2013)
Figure 9: London City Airport LYC
The Airport has a 1508 stretch runway situated between the Royal Albert Dock and King
George V Dock. The single runway handles short-haul flights but pays more focus on business
travel to Europe and specialized flights to New York. It has the Main Terminal and Jet Centre on
which several airlines operate, including British Airways, Lufthansa, Blue Islands, Swiss
International Airlines, and KLM, among others.
The terminals rest on the western of the airport. The Jet Centre constitutes the single
Fixed Based on the site. The current terminal infrastructure can accommodate approximately
1,500 passengers per hour - both arrivals and departures (CADP, 2013). The site also
encompasses the airport’s apron, support facilities, maintenance facilities, fire station,
operational buildings, and ground handling facilities, among others. Access to the site include
taxi, bus or underground/DLR. Arrivals to the airport enters via the first floor and converge with
the ground floor on the way to the small terminal. After departing the aircraft, visitors pass
through passport control, luggage left, and Customs. On the other hand, departures from the
airport can be located on the first floor of the terminal. Travelers clear with security control upon
reaching the departure lounge, in which they can spot shops, bars, and restaurants.
Consequences of Physical Design and Capacity Limitations
There is potential congestion at the terminal building, including the departure and arrival
lounges due to the smaller size of the airport as a whole. This means that the limited airport
capacity is experiencing a lot of stress and could also be insufficient to handle larger passenger
streams based on the existing physical design and capacity. Nonetheless, the major consequence
of the limited physical capacity in the various facilities and terminals is that the airport cannot
adequately accommodate the peak departures and arrivals that characterize the international
arrivals corridor particular for business travelers opting to fly in and out of London in the
morning and afternoon hours. Similarly, the same inadequate capacity may not cater for the
unprecedented leisure-oriented passenger arrivals witnessed during the major annual season.
Tourism industry is characterized by peak and low seasons that bear a significant impact on
airport traffic flows (Bubalo & Gaggero, 2015, p.27). Considering this capacity, the possibility of
excessive queuing and congestion are inevitable. It is imperative to note that this may bear an
adverse consequence to the airport as the level and quality of service to the clients may be
compromised during the peak periods (See & Li, 2015, p.9). Therefore, it is imperative to expand
the facility of innovate other strategic designs that can offset leverage this issue.
Another significant limitation is the small and single runway. The small runway implies
that the airport cannot welcome large aircrafts onto its ground field. In fact, the Airbus A318 is
the largest aircraft the airport can accommodate due to facility’s size. As a consequent, large
aircrafts divert to other adjacent airports who are rivals in the same market. This lowers the
competitive advantage of the London City Airport. Also, the single runway means that the
airport cannot handle multiple aircrafts at the same time. This is a major setback as large aircrafts
may not be welcome at the facility due to the limited space and to avoid congestion.
Furthermore, the present infrastructure conflates the conventional approach of efficient
airport operations as both arrivals and departures are handled in a single check-in building. This
dual-use of the terminals might be a significant constrain to the optimal potential of the facility.
Moreover, the current physical design does not serve ample space for car parking. It is important
to remember that a significant number of visitors access and leave the airport by car. Therefore,
the inadequacy of ample parking space might force passengers to leave their vehicles outside the
site. The consequence of this concern is the potential theft or damage to clients’ cars when they
are parked outside the facility.
Strategy of a City with Six Airports
Market competition in the airport sector arises out of the need of an airport operator to
have significant influence over price and service features, among other considerations (Tanwar,
2013, p.12). Airports compete for serving shared local market. In particular, if two or more
airports are located near to each other, for example, within the same city like London and serve
the same market segment, market rivalry may arise in the struggle to curve a larger marker share
of airlines. The development of low cost carriers is a consequence of this type of competition
(Bubalo & Gaggero, 2015, p.24).
Also, they may compete for traffic. For large airports, connecting traffic is critical aspect
of the all traffic served by airports that contribute to over half of the overall number of travelers
for the large airports. Moreover, rivalry may be due to cargo traffic because it is relatively price
sensitive since cargo operators have a tendency to change their routes much easily. Besides that,
airports may rival for more attractive destinations. The quality, cost and variety of services and
products determine the attractiveness of a destination. As a consequent, airports have to evaluate
and improved to earn a more competitive advantage over other major industry players.
Figure 10: Distribution of London Airports
The six airports in London have adopted Porter’s generic competitive strategies. A
company’s industry position dictates if its profit margin surpasses or exists below industry
average (Porter, 2008). The most effective strategy to realize this average profitability in the
long run is through having a sustainable competitive advantage. Within the airport industry, there
exist two kinds of competitive advantage - low cost or product/service differentiation. If
integrated within the spectrum of strategic operations, the airport can translate its strategies to
realize this performance in the sector – cost leadership, differentiation, and sharp focus.
Figure 11: Competitive Advantage (Porter, 2008)
In cost leadership, an entity strategizes to be the lowest cost producer in its sector through
strategies such as utilizing economies of scale. Should an airport attain and sustain general cost
leadership, it will be in a better position to fair in the industry; however it must control prices
either at or close to industry average (Tansey, Spillane & Meng, 2014, p.711). In differentiation,
an airport may set out to become distinct in the airport sector by identifying and focusing on the
major demands and preferences clients perceive to be more significant, and innovate strategies to
satisfy them. Clients become loyal because of its unique services within a premium cost
(Tanwar, 2013, p.13). In terms of focus, the airport opts for a narrow competitive scope in the
airport sector. As such, the airport identifies one niche or a group of niches in the market and
customizes its strategy to serving this particular scope to the exclusion or its rivals. Its two
variant include focusing on the cost where the firms look for a cost advantage in its primary
niche and on differentiation in which the entity strive for differentiation in its primary niche
(Tanwar, 2013, p.12). The six airports in London employ Porter’s cost leadership, differentiation,
and sharp focus in their attempt to cope with the competition and succeed in the airport industry
as follows.
Located in western suburbs of London, the Heathrow airport is the only hub in the whole
city. Its international connectivity renders it the ideal option for long-haul flights. It focuses its
Terminal 1 on handling all domestic flights, while Terminal 3 and 4 handle long-haul flights and
US and European destinations, while Terminal 5 accommodates exclusively British Airways and
Iberia. It serves close to 72 million travelers each year and boast of the hub for long-haul
journeys. It focuses more on long-haul flights as the majority (93%) of the flights are
international, while 30%, 70% and 37% are business, leisure and transfer flights (Heathrow
Airport Holdings Limited, 2014). From these statistics, it is evident that Heathrow Airport
focuses on international flights and is differentiated largely in leisure travels. The airport serves
180 destinations globally, with a fleet of 82 airlines. Its primary catchment area is largely on
central London and stretches to the West and North West of the city. Given its central location,
passengers access its site through car (the majority with private car and Taxi accounting for 29%
and 27.8%, respectively) buses, coaches, trains, and London Underground. Due to its focus and
differentiation it emerged the best airport and the best airport for shopping in 2013 and 2014,
respectively, while it’s Terminal 5 emerged the best in 2014.
In comparison, London Gatwick Airport is located in crawly, West Sussex. Unlike
Heathrow’s focus on long-haul flights, Gatwick concentrates on point-to-point air travel with the
majority being short-haul leisure travelers. Equally, it shares a wide scope of flight services with
Heathrow, which stretches to close to 240 destinations in approximately 90 nations, and 60
airlines. EasyJet and British Airways are the dominant carriers. Like Heathrow, its major source
of air traffic is concentrated on Central London, but stretches to south of the city especially in
Kent, Surry, and Sussex. Currently, it provides a blend of scheduled full services, scheduled low-
cost and charter carrier air transport services to an estimated 35 million capacity each year. In
2013, the airport earned the “Airport of the Year,” the “Exceptional Customer Services,” and
“Best UK Airport” awards (Gatwick Airport Limited, 2014). From Porter’s perspective, these
awards indicate its differentiation focus. Particularly, it differentiated scheduled and charter
carriers, besides, depicting cost focus as it seeks to enhance efficiency and quality of services
through low operation costs.
Similar to Heathrow and Gatwick, London Stansted airport features a wide scope of flight
offerings in more than 150 destinations within UK and Europe, and served by 14 airlines,
including Ryanair, EasyJet, Thomas Cook airlines, Air Berlin, and Pegasus. Its capacity can
accommodate 18 million clients each year. Located in Essex, the airport operates on a single
terminal and single runway, with an estimated 40 million passenger capacity each year (London
Stansted Airport, 2016,). Its central catchment area is London but stretches to the city’s north
east, with Westminster and East Anglia being the prominent. Its proximity to Central London
renders road and rail the most ideal access channel. In light of Porter’s model, Stansted Airport
features a cost focus strategy as it offers cost-efficient flights. Like Gatwick, Stansted delivers
scheduled and charter carrier flights. Furthermore, the airport focuses on short-haul journeys that
are primarily leisure oriented, which are made possible by its low-cost carriers. Its differentiation
focus saw Stansted airport earn the global “Best Airport for Low-Cost Airlines for three
consecutive years – 2011, 2012, and 2013 (East Midlands Airport, 2015).
Situated in Bedfordshire, London Luton Airport is a one runway and single terminal
facility with its single terminal split into arrival and departure lounges. It focuses more on short-
to medium-haul, over 100 destinations across the world. Budapest, Dublin and Amsterdam are
the major destinations with the dominant EasyJet and Ryanair airlines providing low-cost
scheduled and charter flights serving close to 9.7 million passengers each year (London Luton
Airport Limited, 2015,). Its low-cost and diverse offerings have attracted increased air traffic
movements. Some of its major budget carriers include Thomson Airlines, Blue Air, and
TAROM. Its primary catchment area encompasses Greater London, Hertfordshire, Bedfordshire
and Buckinghamshire (London Luton Airport Limited, 2015,). Its proximity to the Central
London makes rail, coach and local bus more convenient access modes.
Compared to other airports in London, London City Airport largely focuses on business
short-haul flights largely across the European business market. Its primary focus is to meet the
demands of business travelers by delivering simple and cost effective flights coupled with check-
in services. Therefore, the airport is differentiated as a unique business airport. Its physical
proximity to City of London and the Canary Wharf explain business as the dominant focus of the
airport. Its air travel services are spread in about 50 destinations mainly across the USA, UK, and
Europe with a fleet of airlines serving the facility. Central London is the airport’s main source of
air traffic with South East England, Docklands, City of London, Westminster, and Tower
Hamlets being the airport’s primary destinations (LCACC, 2016). It is largely connected by
London Underground, Docklands Light railway, and coaches.
London Southend airport is London’s brand airport located on the south east of Essex. It
focuses on large air carriers with its current physical capacity handling the size of Boeing 757
and Airbus A320. Its physical design features an extra space to accommodate 5 million visitors
annually (London Southend Airport (JAAP), 2015). The airport is dominated by the budget
EasyJet and Aer Lingus Regional operating in 15 destinations throughout UK and Europe, which
has led the facility, see a scaled-up air traffic flow. Its main source of traffic includes Essex and
Central London and linked by rail and road networks. Southend airport employs a cost focus
strategy as it provides not only competitive, but also cost-effective flights. As such, the airport
serves as a magnet for low-cost carriers as well as stimulating business and investments for
future economic growth. This earned it the “Best Airport in UK” according and the ERA’s
Airport Achievement Award for 2010/2011 and 2012/2013 (London Southend Airport, 2015).
Strategy Proposal for London Airport System
. First, London City Airport which largely focuses on business short-haul flights largely
across the European business market should increase its differentiation in the business niche, but
could also expand to long-haul business flights to attract more air traffic. This expansion might
help the facility penetrate other lucrative market niches for higher returns. Second, considering
its physical proximity to Central London, London City and Southend airports should expand
their connectivity by allowing more trains and coaches to improve the convenience and ease of
access to the facilities. This can increase the convenience and ease of access to the airport.
Third, Stansted airport may pursue more differentiation into the leisure segment as its
primary focus is on short-haul flights that are primarily leisure oriented and made possible by its
low-cost carriers, while the Heathrow and Gatwick should enhance their global connectivity to
venture into untapped destinations to increase their air traffic. Moreover, London City airport
needs to increase its surface access by expanding its Jet Centre building and moving the Transco
gas valve to create more space for car parking and aircraft parking on the landside, respectively.
However, London Luton airport might concentrate more on the low-cost scheduled and charter
flights but diversify their services in its destinations spread across the world.
Generally, the London Airport system has to continually analyze current airport physical
design and capacity to ensure safety and reliability of flights, create intensive connectivity at the
airports, periodically conduct market analysis to understand the traffic profiles, catchment areas
and passenger demands for their primary targets and innovating strategies to meet them and
enhance the efficiency and quality of surface access transportation.
London Airports Strategy Confirmation
Several airports have drafted strategic plans to improve their competitive edge and
address the concern of limited capacity to ensure a sustainable future for the UK airport sector.
The overarching challenge facing these airports is the limited capacity. For instance, the
Heathrow and Gatwick are set out to expand their operations by building a third runway and
second runway, respectively to welcome more aircrafts.
Also, London City airport has strategic plan to enlarge its Jet Centre building to attract
more air traffic movements. Furthermore, London seeks to erect a new airport to its East to offset
congestion on its primary airports. However, environment impacts such as air and noise pollution
as well as issues with land use are major concerns with these proposed strategic projects
(Bentley, 2014, p.20).
Current and future plans summary
Airport Current situation Future strategies
London City Airport -London is the largest
international air market in the
world, in terms of the number
of local and international
passengers.
-
-accommodate 8 million
passengers by 2030. This will
aid the support of London’s
growth hence continued
demand for business travel.
London Heathrow Airport -with five terminal buildings
and two parallel full-length
runways, the airport is
considered the third
busiest airport in the
global scene.
- The Heathrow airplane
terminal's core area of
concern is the absence of
runway limit, which is
standing out to be a
danger, and the air
terminal may lose the
demand for flights and
course system to other
European center points
-Planning and developing
Heathrow’s case for hub
expansion
- A three-runway Heathrow
will give up to 740,000
flights a year. This will be a
significant move for
Heathrow to contend on an
equivalent balance with Paris,
Frankfurt and Amsterdam. It
additionally gives adequate
hub-airport capacity until at
least 2040.
- Heathrow's rail limit will
treble from 18 to 40 trains
(comparable to 5,000 to
15,000 seats) 60 minutes.
With changes to bus and
coach services, 30 million
more individuals will go to
Heathrow by public transport
in 2030.
Gatwick Airport With two terminals and two
runways, the airplane
terminal works as a single-
runway air terminal. The
London Gatwick airplane
terminal working at 95%
limit is the world's busiest
single-runway airport. The
absence of runway limit is a
noteworthy concern which
can influence the future
development of the airport.
The London Gatwick air
terminal uses the
differentiation strategy by
-Build the effectiveness and
the value of services, by
producing most extreme
incomes and at low operating
expenses.
-Be more focused in the
business sector, substitute the
services of Heathrow's and
Stansted's and turn into the
London's air terminal of
choice.
offering separate services to
the scheduled and charter
carriers. The Gatwick
airplane terminal likewise
utilizes the cost focus
strategy, with the rise of the
low-cost carriers.
London Southend airport -The Southend airplane
terminal, London's newest
and most cost-effective
airport on the south east of
the region of Essex. Southend
Airport is owned and
operated by the Stobart
Group.
- There were 617,017
travelers in 2012, 969,912 in
2013 and 1,001,343 in the 12
months to the end of February
2014. There are two main
airlines, Easyjet and Aer
Lingus Regional, working a
scope of UK local and
European flights, with
different carriers operating in
the charter flights on
occasional basis. From June
2014, flights operated by
Stobart Air under the Flybe
brand will operate to various
Northern European
destinations. In 2013 there
were 29,443 aircraft
developments, and almost no
cargo.
The environmental
assessment for the runway
augmentation plan
application depended on a 2
mppa forecast for 2020. The
planning permission for the
runway expansion limits the
movements of aircraft but not
traveler numbers.
Government decisions about
air terminals following the
Airports Commission's last
report, will ensure a
framework to future
advancement in the medium
and longer term. A master
strategy for London Southend
Airport for the medium and
long-term can then be
considered.
London Luton Airport London Luton Airport is a
one runway and single
terminal facility with its
single terminal split into
arrival and departure lounges.
It focuses more on short- to
medium-haul, over 100
destinations across the world.
Budapest, Dublin and
Amsterdam are the major
destinations with the
-The phased advancement of
London Luton over the next
15 years to encourage
development in passenger
numbers and carrier demands
that will avoid overbuilding
capacity. In addition, this will
ensure that costs is not passed
to the airlines and passengers
-Increasing the numbers of
dominant EasyJet and
Ryanair airlines providing
low-cost scheduled and
charter flights serving close
to 9.7 million passengers each
year
travelers from about 10
million to 15-16 million p/a
over the next 10 years;
-Transforming Luton into
"London's Local Airport"
through continual change of
transport connections with the
capital, and watching over the
local environment and
community.
Stansted Airport Stansted Airport is considered
the 3rd largest airport in
London. The airport is
operated and owned by the
Manchester Airport Group
(MAG).
-it is characterized by 10,000
ft single runway hence is able
to accommodate the largest of
the aircrafts.
-with a spare capacity, the
airport can accommodate
around 40 million passengers
annually. This follows a cost
focus strategy.
-Keeping on supporting local
business through the Meet the
Buyers occasions. By 2017,
the management hope to
produce over £2m worth of
new contracts for local
businesses.
-Resolving to put resources
into energy proficient and
low carbon innovations with
an aim for air terminal
operations to end up carbon
neutral.
-Trying to minimize the
effect of all parts of noise
with an objective to tighten
the noise penalty limits.
-reduce, reuse, recycle target
to recycle 70% of waste by
2020 with zero landfill waste;
Keeping on enhancing the
Stansted Airport Employment
and Skills Academy,
providing training and jobs to
local population with a plan
to get 550 nearby individuals
into work a year whilst
expanding apprenticeship
opportunities to the young
population.
Conclusion
The London airport industry contributes a great deal to the large UK’s economy through
jobs, foreign income, and stimulation of business and investments. Despite the high competition
in the industry, the six airports have pursed Porter’s generic competitive strategies to cope with
demands in the industry. However, the current physical design and capacity is a major concern.
More improvement need to be done to ensure proper connectivity, efficiency, access, and
leverage on their catchment areas, and as a result scale up their competitive advantage.