Airport Operations

Airport Operations

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate airports for commercial and general aviation and provide support services such as air traffic control, aircraft fueling and maintenance, baggage and cargo handling, ferrying aircraft, and rental of hangar space. Major companies include Aeroports de Paris (France), Fraport and Lufthansa Technik (both based in Germany), Heathrow (the UK), ST Engineering (Singapore), and Swissport (Switzerland).

COMPETITIVE LANDSCAPE

Demand for airport operations and aviation services is driven by business and leisure air travel and the size and age of aircraft fleets. The profitability of individual companies depends on efficient operations. Large companies enjoy economies of scale in purchasing. Small companies can compete effectively in hometown markets. The US industry is concentrated: the 50 largest companies account for about 60% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include aircraft maintenance and repair (65% of industry revenue), fixed-base-operator (FBO) services (about 20%), and airport operation and administration services (about 15%). Other services include ground handling, airport administration and operation, air traffic control, and wholesale fuel sales.