Innovative Revenue Strategies – An Airport Guide (2015) / Chapter Skim
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From page 189... ...
8 1 Chapter 8 Case Studies 8.1 Overview of the Case Studies 8.2 Boston Conven on and Exhibi on Center – Value Capture 8.3 Dallas/Fort Worth Interna onal Airport – FTZs and Value Capture 8.4 Indianapolis Interna onal Airport – Op mizing Concession Programs 8.5 McCarran Interna onal Airport – Innova ve Leasing Program 8.6 Pi sburgh Interna onal Airport – TIF/Par cipatory Lease 8.7 Springfield Branson Na onal Airport – Airport Operated Ground Handling 8.1 OVERVIEW OF THE CASE STUDIES The six case studies presented in this chapter explore in greater depth the applica on of revenue development strategies discussed in the Airport Guide. Considerable me and detail went into the case studies to obtain actual financial results from implementa on of the strategies.
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From page 190... ...
INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 2 Two case studies -- McCarran Internaonal Airport (LAS) and Pisburgh Internaonal Airport (PIT)
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CHAPTER 8 – CASE STUDIES 8 3 8.2 BOSTON CONVENTION AND EXHIBITION CENTER – VALUE CAPTURE Source: AECOM Projects via Flickr.comrview 8.2.1 History of the BCEC In the early 1990s, the commonwealth of Massachuses began to invesgate the feasibility of building new convenon facilies in several areas of the state, including a large facility in Boston. Proponents of a downtown Boston locaon, including the city administraon, acknowledged that a new facility would not generate enough revenue to cover its construcon and operang costs.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 4 could be ed directly or indirectly to the success of the convenon center. These techniques raised enough revenue to rere some of the bonds early and provide addional revenues for convenon center operaons, addional capital investments, and contribuons to commonwealth and city general funds.
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CHAPTER 8 – CASE STUDIES 8 5 Table 8 1: Projected Annual Tax Revenue Impacts of BCEC Revenue Sources Projected Annual Revenue ($ millions*
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 6 Greater Boston region, rather than from jobs directly ed to the conven on center. Value capture through property taxes on nearby land development was also unarac ve because: The conven on center itself would not be paying property taxes (and, in fact, would take land off the tax rolls)
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CHAPTER 8 – CASE STUDIES 8 7 BCEC. The Act also idenfied specific state and local sources to provide a revenue stream for repaying the bonds.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 8 Three aspects of the approved funding sources are parcularly noteworthy. First, the financing strategy was developed to avoid use of exisng sources of revenue to the city and commonwealth general funds.
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CHAPTER 8 – CASE STUDIES 8-9 Figure 8-1: BCEC Finance District Source: Made with ESRI Business Analyst by EDR Group based on a map provided by Massachuses Convenon Center Authority.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8-10 Figure 8-2: BCEC Loca
on in the South Boston Neighborhood Source: Made with ESRI Business Analyst by EDR Group based on a map provided by Massachuses Conven
on Center Authority. 8.2.4 Financing Strategy The financing strategy for the BCEC used each of the value capture techniques allowed under the Act, with the excep
on that the city of Boston chose not to increase its hotel room occupancy tax from 4% to 4.5%.
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CHAPTER 8 – CASE STUDIES 8 11 million to fund land acquision and site preparaon costs, secured by the Room Occupancy Excise Tax Fund (ROETF)
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 12 The city rered all the debt incurred to finance the BCEC long before the 20 year period elapsed and was able to disconnue the ROETF and transfer remaining revenues to the general fund.13 The city connues to collect the 4% hotel tax, vehicle rental fees, and hackney license fees. These revenues all now go directly into the city's general fund and finance regular city budget items.
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CHAPTER 8 – CASE STUDIES 8-13 Table 8-4: Commonwealth Conven
on Center Fund, Base Case Scenario – No Addi
onal Bonds Fiscal Year Room Occupancy Tax 5.7%a Conven
on Center Finance Fee 2.75%b Vehicular Rental Surchargec,f Sales Taxesd,f Sightseeing Surchargee,f Total Taxesh 2005 10,785,200 24,857,300 9,203,800 4,530,300 1,185,900 50,562,400 2006 11,601,900 27,398,900 9,773,500 5,012,500 1,265,900 55,052,700 2007 15,771,100 30,656,600 10,369,000 8,008,300 1,542,000 66,347,000 2008 19,934,700 34,594,100 10,859,300 11,437,000 2,158,300 78,983,400 2009 18,940,700 31,752,600 9,961,700 11,940,300 1,322,200 73,917,500 2010 20,172,400 29,668,200 9,596,100 14,031,500 1,964,500 75,432,700 2011 22,479,200 33,351,500 10,551,900 15,736,800 2,785,700 84,905,100 2015 24,562,000 36,441,700 11,820,000 17,628,100 3,120,500 93,572,5008 2020 27,439,000 40,710,200 11,820,000 17,628,100 3,120,500 100,787,000 2025 30,653,000 45,478,700 11,820,000 17,628,100 3,120,500 108,855,400 2030 34,243,400 50,805,600 11,820,000 17,628,100 3,120,500 117,793,200 2035 38,254,400 56,756,600 11,820,000 17,628,100 3,120,500 127,773,300 2040g 42,735,100 63,404,500 11,820,000 17,628,100 3,120,500 138,902,000 2042g 44,671,100 66,276,900 11,820,000 17,628,100 3,120,500 143,710,300 Notes: a The 5.7% room occupancy tax comprises (a) all state room occupancy taxes collected on rooms in the Boston Convenon Center Financing District (BCCFD)
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 14 Pursuant to the provisions of Chapter 152 of the Acts of 1997, the Commonwealth Convenon Center Fund and the BROEF will be dissolved when all indebtedness and interest incurred under the Act has been paid off. Any fees and taxes that have accrued in the fund up to this point will then be deposited in the general fund of the commonwealth or city, respecve to their origin.
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CHAPTER 8 – CASE STUDIES 8 15 8.2.7 Applicability to Airports The value capture techniques used to finance the BCEC have direct relevance to airports. Like convenon center investments, airport investments can be jusfied based on the overall benefits of increased capacity and improved service to a region's and/or a state's economy.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 16 already served by the airport and in service to new markets) may lead to increased business acvies for local industry sectors near the investments.
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CHAPTER 8 – CASE STUDIES 8 17 The BCEC market analysis compared hotel costs and fees in compeng markets to exisng fees in Boston, then adopted fees only up to a level that ensured Boston's hotel rates would remain compeve with other cies. This type of analysis can be helpful to convince the public and businesses that any new taxes or fees will not negavely affect their businesses, and this approach could be used with other types of taxes and fees.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8-18 8.3 DALLAS/FORT WORTH INTERNATIONAL AIRPORT – FTZs AND VALUE CAPTURE Source: 2009 Airport Development Plan Update, Dallas/Fort Worth Internaonal Airport 8.3.1 Overview The Dallas/Fort Worth Internaonal Airport (DFW) case study illustrates how an airport can leverage its cargo and passenger operaons, and its standing as an economic center, to smulate non-aeronaucal acvity on airport property and in the region around the airport.
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CHAPTER 8 – CASE STUDIES 8 19 DFW is located near the cies of Fort Worth, Coppell, Euless, Grapevine, and Irving in Texas. DFW is home to Foreign Trade Zone (FTZ)
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 20 member, rotates annually among the four non owner host ci es of Irving, Euless, Grapevine, and Coppell. The Board must seek approval for its annual budget, bond sales, and other similar measures from the city councils of the owner ci es, but can enter into contracts without such approval.21 SIZE AND ACTIVITY Encompassing about 18,000 acres, DFW is the second largest airport in the United States in terms of land area (behind Denver Interna onal Airport)
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CHAPTER 8 – CASE STUDIES 8 21 commercial development and open space, with development projected to occur over 30 years.24 In its land leasing policy, DFW idenfies the following preferred airport related uses for future development: Aviaon related development requiring taxiway access (e.g., airline passenger terminals, air cargo terminals, airline maintenance and hangar facilies) Aviaon related development not requiring taxiway access (e.g., freight forwarders, flight catering kitchens, air cargo processing facilies, warehouse and aviaon fuel storage)
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 22 establishes base year (1998) revenues collected on the properes.
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CHAPTER 8 – CASE STUDIES 8-23 Table 8-5: Exisng Non-Aeronaucal Land Uses, 2012 Land Use Acres Cargo 345.0 Ground Leases 601.0 Hotel 6.2 Retail 4.6 Other Land Uses 141.0 Total 1,097.8 Source: Dallas/Fort Worth Internaonal Airport Figure 8-3: DFW Development Districts Source: Jones Lang LaSalle, Dallas/Fort Worth Internaonal Airport, Commercial Development Business Modeling, June 6, 2011 In 2011, DFW airport management commissioned a study to evaluate the revenue-producing potenal of these districts when they are built-out. Table 8-6 shows the potenal acreage and square footage of development by use in all 13 districts.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 24 Table 8 6: Addi onal Land Planned for Development Acres Square Feet Rooms Retail 290.1 2,021,160 n/a Restaurant 172.9 877,179 n/a Hotel 98.6 2,875,500 4,410 Office 572.8 11,198,962 n/a Industrial 983.7 16,466,000 n/a Air Cargo 217 1,649,000 n/a Theme Park 356 8,000,000 n/a Total 2,691.1 43,087,801 4,410 Source: Jones Lang LaSalle, Dallas/Fort Worth Internaonal Airport, Commercial Development Business Modeling Table 8 7 shows annual cash flow and cumulave revenue potenal to DFW, the owner cies, and the host cies with a full build out of airport land. DFW's revenue comes from the ground rent and percent of sales (for retail and restaurant uses)
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CHAPTER 8 – CASE STUDIES 8 25 8.3.4 Implementation Issues The degree of difficulty in establishing revenue sharing agreements has varied with the host cies. Agreements with Euless and Irving were established in 1998 without too much difficulty.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 26 Other lessons learned from this case study include: Airports generate land value for development parcels in their vicinity, aracng a range of acvies, from airport dependent cargo operaons to airport supporve hotel development to offices whose workers and visitors benefit from proximity to the airport. An FTZ can be a catalyst for airport area development, aracng businesses that use the airport and businesses that benefit from the incenves offered by the FTZ.
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CHAPTER 8 – CASE STUDIES 8 27 8.4 INDIANAPOLIS INTERNATIONAL AIRPORT – OPTIMIZING CONCESSION PROGRAMS Indianapolis Internaonal Airport, Midfield Terminal 8.4.1 Overview In 2008, Indianapolis Internaonal Airport (IND) opened itsMidfield Terminal building complex.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 28 for the quality of its retail program and its food and beverage program, as well as for the "green" iniaves of its concessionaires. In 2014, for the third me, ACI awarded IND the tle of "best airport in North America" for service quality performance.
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CHAPTER 8 – CASE STUDIES 8 29 An important aspect of this process is an Indiana statute that permits the Authority to select concessionaires via direct negoaon -- a process not allowable for many airport sponsors. However, this process is crical to the execuon of the Indianapolis model, and may benefit other airport staff who can obtain this type of contracng flexibility.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8-30 FedEx's second-largest facility in the world, and ranked as the eighth-largest domesc cargo facility in 2013. Table 8-8: shows domesc and internaonal enplaned passengers for 2011 and 2013.
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CHAPTER 8 – CASE STUDIES 8-31 In 2008, a er many years of planning and an extensive land acquision program, the Midfield Terminal was completed in the area between the airport's two main runways (Figure 8-5)
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 32 Figure 8 6: Midfield Terminal – Civic Plaza Source: The Indianapolis Star Table 8 9 shows the key dimensions of the airport's new terminal building. Table 8 9: Key Terminal Dimensions Terminal Area Space Total Terminal Area 1,200,000 sq.
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CHAPTER 8 – CASE STUDIES 8-33 PASSENGER FLOWS AND TERMINAL DESIGN IND's Midfield Terminal serves as a good example of how terminal design can both opmize concession revenue potenal and improve the overall level of service to the traveling public. Figure 8-7 shows the terminal's three major concession areas: Civic Plaza, and the connectors of Concourses A and B to the landside building.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 34 Providing a mix of concessions in spaces at appropriate locaons that offer customers a broad selecon of service and product choices Integrang food and beverage with retail to create synergy and encourage spending across various retail categories IMPORTANCE OF FAST THROUGHPUT AT PASSENGER SCREENING AREAS Consistent and predictable passenger screening throughput can posively influence concession revenue for both pre and post security locaons. IND has two large, well staffed passenger screening areas adjacent to Civic Plaza.
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CHAPTER 8 – CASE STUDIES 8 35 Table 8 10: Es mated 2011 Opera ng Revenues ($000s) Revenue Sources Amount % of Total Airline Passenger $38,710 28.5% Airline Cargo (Landing Fees)
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8-36 the airport; second, the Authority avoided under-merchandising the market by carefully determining the spending power of the Airport's passengers; finally, because the Authority generated considerable interest in the concession program from local businesses, it was able to avoid contracng with concessionaires that were geographically generic. The staff established a concessionaire selecon commiee that evaluated various combinaons of concessionaires in order to determine the final mix in each of the three areas.
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CHAPTER 8 – CASE STUDIES 8 37 replacement concessionaires. Although several concessions did not succeed, because of the flexibility of their program, the Authority was able to replace troubled concessions quickly.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 38 Financial Basis The financial return to the airport from each concession is based on a privilege fee expressed as a percentage of gross revenues (sales) against a minimum annual guaranteed (MAG)
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CHAPTER 8 – CASE STUDIES 8 39 square foot; at CVS Caremark, $666; and at Urban Oui ers, $532.30 The IND results also compare favorably or exceed the gross sales per square foot of many regional shopping centers.31 Revenue per square foot and per enplanement has remained relavely stable through 2013, despite a 6% decline in passenger enplanements. Table 8 11: IND Concession Revenue per Square Foot, 2010 and 2013 2010 2013 Food/Beverage and Retail Revenue $6,024,246 $6,017,806 Passenger Enplanements 3,770,383 3,535,015 Approximate Retail Terminal Space (Square Feet)
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 40 Capacity – Concessions are appropriately sized to meet customer demand even during seasonal and daily peaks. The Authority also planned for kiosk space that can accommodate seasonal changes and special events, such as the Indianapolis 500 and the 2012 Super Bowl.
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CHAPTER 8 – CASE STUDIES 8 41 2010. The terminal building cost center residual rate includes the cost of space finishes and tenant improvements for airline public view space, which has a high level of finish, and for non public space, which has a comparavely lower level of finish.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 42 field of interested concessionaires and to control the planning and development process. The Authority used a single point of contact for concession communicaons, which ensured that every group had equal access to informaon.
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CHAPTER 8 – CASE STUDIES 8 43 8.5 McCARRAN INTERNATIONAL AIRPORT – INNOVATIVE LEASING PROGRAM 8.5.1 Introduction Airports that have developable real estate under their control can choose from among numerous potenal methods to capitalize on the airport's unique posion as a transportaon center and to maximize non aeronaucal revenue opportunies through real estate development. Collecng ground rent is the most basic and tradional approach to airport property management.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 44 8.5.2 Background LAS occupies approximately 2,800 acres of land in Clark County, Nevada, and is operated by Clark County Department of Aviaon (the Department)
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CHAPTER 8 – CASE STUDIES 8-45 Figure 8-8: CMA Plan Area and Proper es Acquired through SNPLMA Source: McCarran Internaonal Airport Land Use and Disposal Plan, 2000 Standard ground leases were inially idenfied as the best opon for development of land in the CMA; however, with ground leases, the Department was subject to a bond ordinance that required them to impose a unilateral rent adjustment on non-aeronaucal tenants every 3 years. Because of the Las Vegas land boom, rent adjustments every 3 years rendered an airport ground lease unaracve for most potenal tenants.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 46 par cipatory leases were used as a mechanism to jumpstart airport compa ble development at a me when housing development was the highest alternate (and incompa ble)
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CHAPTER 8 – CASE STUDIES 8-47 The first such development ulizing the above structure was a 14-acre tract on which a 400,000-squarefoot warehouse space was developed. The Department split $2,000,000 annually with the developer.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8-48 Management fee A reasonable reserve for maintenance and operaons or any reserve required by any lender under any approved financing Repayment of any equity contribuon plus return on equity contribuon The management fee ranged from 3% for industrial space to 4.5% for office space to 5% for retail space, and was paid to cover all property management administraon expenses. It is worth nong that the Department was able to achieve its primary goal of ensuring that the property would not be used for any purpose incompable with airport operaons.
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CHAPTER 8 – CASE STUDIES 8 49 Beltway between Jones and Decatur Boulevards. At build out, Beltway Business Park (Beltway)
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8-50 The Department retained the right of recovery of the leased premises to the extent that it was necessary for airport or other public uses. Furthermore, the Department migated its risks by retaining a right to convert the deal structure to a flat ground rent if the ancipated improvements for the development were not made within 36 months of the Lease.
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CHAPTER 8 – CASE STUDIES 8 51 The Department has been able to parcipate in almost 40 development projects ulizing standard ground leases to the parcipatory leases described in this secon. Since the incepon of the development program, CMA properes have generated total revenue of $110,448,550.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 52 8.6 PITTSBURGH INTERNATIONAL AIRPORT – TIF/PARTICIPATORY LEASE 8.6.1 Background Airport execuves must consider how best to maximize the generaon of income while maintaining an appropriate balance against risk; thus, the structure of real estate development projects is extremely important. The focus of this case study is on real estate development at Pisburgh Internaonal Airport (PIT)
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CHAPTER 8 – CASE STUDIES 8 53 original economic development agenda. Working hand in hand with the County's Department of Economic Development, the ACAA embarked on an aggressive plan to develop pad ready development sites and complete infrastructure improvements such as roads and the installaon of water, sewer, and ulity connecons.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 54 development and lease opportunies, so brokers tended to avoid showing airport properes. ACAA staff addressed each issue quickly and interest in the development sites increased rapidly.
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CHAPTER 8 – CASE STUDIES 8 55 to contribute 75% of the real estate revenues generated by the development that exceeded the tax base in existence when the TIF district would be established. Based on that commitment, the County Redevelopment Authority issued its TIF notes, which were payable from the posive tax increments realized from the TIF district.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 56 Any addional effecve rent in excess of $4.35 per square foot shall be mulplied by 25% and further mulplied by the rentable square feet used to convert the effecve rent. For example: 1.
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CHAPTER 8 – CASE STUDIES 8 57 8.7 SPRINGFIELD BRANSON NATIONAL AIRPORT – AIRPORT OPERATED GROUND HANDLING Ground Handling at Springfield Branson Naonal Airport 8.7.1 Overview At medium and large hub airports in the United States, airlines typically provide their own ground handling services or contract with a handling agent or another airline. These arrangements also occur at small and non hub airports as well, but some airports have elected to provide ground handling services directly to one or mulple airlines.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 58 This case study explores how SGF developed its ground handling business and demonstrates how ground handling services have contributed directly to net revenues to the airport sponsor. Ground handling services also provided SGF with important indirect benefits in the form of retained air service and increased passengers.
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CHAPTER 8 – CASE STUDIES 8 59 In the United States, small and non hub airports are the predominant airports engaged in ground handling services. These airports use ground handling services as a means to aract or retain air carriers that offer limited frequency service.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 60 Today, when airlines have a large concentraon of service at a parcular airport, they typically self handle. If an airline leases gate space from another larger airline, ground handling is oen included in the lease.
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CHAPTER 8 – CASE STUDIES 8 61 Table 8 17: Examples of U.S. Airports that Operate Ground Handling Services Airport City/State Airport Size Management Service Level Bangor Internaonal Bangor, ME Non Hub Division of Airport Full Service/FederalInspecon Lehigh Valley Internaonal Allentown, PA SmallHub Airport Authority Full Service/Passenger and GA Mobile Regional Mobile, AL Non Hub Airport Authority Full Service Quad City Internaonal Moline, IL SmallHub LCC First Fueling now Full Service Springfield Branson Naonal Springfield, MO Non Hub Division of Airport Full Service Front Range Airport Denver, CO GA Airport Authority Full Service Source: Compiled by KRAMER aerotek inc., 2012 8.7.5 Springield-Branson National Airport (SGF)
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 62 CHARACTERISTICS OF THE AIRPORT SGF is a publicly owned facility located on 2,791 acres.43 The airport is approximately 190 miles southwest of St. Louis and 150 miles southeast of Kansas City, Missouri.
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CHAPTER 8 – CASE STUDIES 8-63 Figure 8-10: Nonstop Desnaons from SGF, 2012 Source: Springfield-Branson Naonal Airport Master Plan Working Paper, 2011 GROUND HANDLING SERVICES Springfield-Branson Naonal Airport began to offer ground handling services in 2002. At that me, SGF had 80 to 100 charter flights flying to and from the airport each year.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 64 ini a on, SkyWest service was canceled. Subsequently, Atlan c Southeast (also a Delta Connec on provider)
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CHAPTER 8 – CASE STUDIES 8 65 Figure 8 11: SGF Ground Handling Organiza on Source: Springfield Branson Naonal Airport GROUND HANDLING FINANCIALMATTERS The principal inial start up for the SGF ground handling operaon included the acquision of equipment, the development of a pricing structure, and the coverage of any operang losses. Pricing Ground Handling Services SGF charges approximately $5 per aircra seat for providing above the wing and below the wing ground handling services.
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INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8 66 low cost. Consequently, SGF was able to fund the acquisions on a pay as you go basis from their budget, and equipment was not a barrier to starng the service.
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CHAPTER 8 – CASE STUDIES 8-67 INDIRECT FINANCIAL BENEFITS OF GROUND HANDLING When ground handling is used as a means to aract or retain limited frequency air service, there are other indirect revenue benefits to the airport that result from increased passengers. Increased passengers will result in addional PFCs, and CFCs such as parking, rental car, and concession revenues.
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From page 256... ...
INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 8-68 Figure 8-13: SGF Enplanement and Operang Revenue Trends, 2002-2011 Sources: FAA Air Carrier Acvity Informaon System (ACAIS) and CATS 127 Reports for Springield-Branson National Airport 8.7.6 Issues for Airports Entering the Ground Handling Business RISK FACTORS FOR AIRPORTS As with any business, the ground handling services business has risks, such as operaonal liability, financial losses, and negave customer and airline relaons.
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From page 257... ...
CHAPTER 8 – CASE STUDIES 8 69 In some markets, however, operang a ground handling service for the airlines means that airports must compete with private sector providers of ground handling services. Airports that must permit compeon are not able to be sole providers.
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