The airlines sector has always been a high risk low growth business.
There have been many innovations for growth in the air craft industry. Low Cost Carriers (LCC) has been an ideal phenomenon contributing to growth in the air lines industry.Thus traditional airlines were forced to rethink their strategies regarding prices and services offered to passengers. Designing of airports for LCC assumes importance as there is a substantial amount of cut backs in operational costs that are essential. At the same time there is a need to ensure that the passenger is provided the best of facilities.
This poses great challenges on air port design.At the end of the day, the passenger is king and therefore strategies for future design of airports will have to take into account this factor in spatial planning and infrastructure design. Across the world, airports are facing the problem of new low cost carriers that are flooding the tarmacs and creating a passenger handling issue. Low-cost carriers are thus becoming the drivers not only of air travel but also of airport development.Amongst the issues affecting designing of airports is expansion of airport infrastructure.
Past experience suggests that big airports or hub concept airports have lost their market share, because their passenger terminals are not user friendly and have therefore become uncompetitive. LCCs are today significant drivers of airport planning, but they have different requirements than the regular carriers.The LCCs renounce the provision of services, which are usually available to passengers and have different, usually lower demands for some of the airport services. The LCCs also have the advantage of operating from smaller airports and, by keeping operating scale to the minimum have lower transaction costs.
The increase in competition between airports serving the operations of low-cost carriers may induce a relatively high volatility in the airport industry. The cost pressure on airports will strengthen incentives to adopt cost-cutting innovations and rationalize organisation. Across America, thus LCC’s are providing the impetus for the development of cheaper airport terminals which are structured quite differently from the traditional designs.The first issue that needs consideration is that LCCs act as catalysts for the growth of low-cost airports. The second issue that low-cost airports are being built in competition with main metropolitan airports.
The latter are the hub concept airports that cater for large airlines with huge operating costs and can afford the charges of the hub airport.On the other hand, the low-cost airport may even be operated for a single airline, which runs on low operating costs. The last point is that Low Cost Airports (LCA) operate on the philosophy of profitability through operational efficiency and minimal frills.The LCCs are using smaller airports, away from the main metropolises and airports that have inexpensive facilities.
These are thus secondary airports that effectively serves and competes for passenger traffic from a metropolitan area. Airport planners need to design strategically. At present it can be said that airports are handling the presence of LCCs by redesigning their terminals and giving newer and better facilities to passengers.The first new terminal focused on the LCC was inaugurated for American Airlines at Dallas airport, at a cost of $1.2 billion to provide for around 25 gates. The other is Seattle airport, which has opened its South Terminal Expansion project at a cost of $587 million for 14 gates.
Accommodating more passengers and allowing more people to move in and out of the airport for travel and transit is a new feature of airport buildings.
