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Projecte llegit

Títol: The implications of airport charges on airlines with different business models

Estudiants que han llegit aquest projecte:

Director/a: KULJANIN, JOVANA

Departament: FIS

Títol: The implications of airport charges on airlines with different business models

Data inici oferta: 27-06-2024     Data finalització oferta: 27-02-2025


Estudis d'assignació del projecte:
    GR ENG SIST AEROESP
Tipus: Individual
 
Lloc de realització: EETAC
 
Paraules clau:
Airport charges, Noise charges, Environment, Ailrines, Business models
 
Descripció del contingut i pla d'activitats:
The noise is becoming a ubiquitous problem at many airports across Europe. The noise mainly affects the people in the surroundings of airports as it severely affects the human health. With the expected increase in passengers demand and consequently more flights, the noise issue will be even more pronounced. In order to efficiently cope with this problem, many busy airports nowadays apply the mitigating measures to reduce its negative impact on the surroundings. One of the measures employed by the airports who face this serious problem is noise charges. Therefore, the aim of the project can be summarised as follows:
'Identify diferent measures currently employed by airports in Europe to combat the effect of noise;
'Provide the description and mechanism embedded in the currently existint noise charges;
'Identify the airports which use the noise charges for two airlines with diferent buisness models;
'Calculate the amount and the percentatge of noise charges in total airport charges for the busiest routes for these two companies;
'Compare the obtained results and derive some important conclusions.
 
Overview (resum en anglès):
Airport charges are tariffs that airports charge airlines for the consumption and use of infrastructure and services, for instance: for the right to use landings, take-offs, parking etc... The impact of such charges are significant and must be considered in the context of airlines which operate under different business models.

Low-cost carriers (LCC) rely on leaner costs and lower fares compared to Full-Service Carriers (FSC). Because of that, LCCs are more sensitive to airport charges. Most of the LCCs operate from secondary or regional airports where fees are substantially lower. Should airport charges be higher at major airports, it would certainly undermine their 'low-cost' business model because of reduced profitability due to higher operational costs. In many cases, secondary airports may allow discounts or rebates for airlines bringing large volumes of passengers, further reducing the impact of such fees on carri-ers in order to maintain competitive pricing.

All in all, one can tell that airport charges are a driver of route planning, airport selection, and pricing strategy for both types of airlines. Their impact differs in how it is felt on full-service carriers, who can more easily accommodate increased fees than the low-cost carriers, which need to be very tactful and work out costs strategically in order to remain in business.

The purpose of this essay is to compare two carriers with slightly different business models, one is considered an LCC while the other follows a hybrid business model; var-ying on their airport selection whether it is a major or a regional one, as well as the eco-nomic, touristic and historic background of the connecting cities, and to compare and see the way how airport charges affect and influence the operations and business structures of both airlines.

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