Emerging Operational Challenges in Airport Management

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Emerging Operational Challenges in Airport Management

PROJECT REPORT ON “EMERGING OPERTIONAL CHALLENGES IN AIRPORT MANAGEMENT”

Submitted for the Post Graduate Diploma in Aviation Law and Air Transport Management (PGDALATM-2)

Submitted by VINAY SHANKAR September 2011 Delhi Centre

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TABEL OF CONTENTS:

Contents INTRODUCTION OVERVIEW DRIVERS AFFECTING TRAFFIC CHANGING FACES OF TE AIRORT WORLD MANAGEMENT TECHNIQUES TO ENHANCE AIRPORT OPERATIONAL EFFICIENCY CONCLUSION ANNEXTURE BIBLIOGRAPHY

Page No. 4 5 7 8 11

17 17 18

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Introduction
Initially, airports in India were government and state owned, but they had undergone many changes since1990’s, Aviation sector has been one of the rapidly growing segments of the Indian economy and one of the fastest growing industries in the international aviation circuit. The technological, infrastructural, institutional, economic and human challenges have prompted those in charge of airlines and aviation-related agencies to affect a shift in their policies and approaches pursued for years, to which India is not an exception. The altitude of the Government and Aviation Industry towards the regulation of Air transport has undergone a profound change over the past few years in India in almost all spheres. New concepts of ownership, financing, management and operation of air transport are the emerging trends in India. Different mix of ownerships and management rights may result in diverse business models. Although each model may have pros and cons, the model of privatization is relatively more conducive to enhancing operation efficiency and profitability for airports. On the financing front, airports in India range from100% government funded to airports that have limited state government stakes. The control structure depends on the equity bought in by various partners and hence varies with the financing. With increasing demand for better facilities and expansion of runways because of growing volume of air-traffic, there is an urgent need for airport expansion as well as more sophisticated equipments. Going for latest technology needs sound financial base. Resource mobilization is the key to future expansion and development. In developing countries a major problem faced by airport management is how to generate resources. Lack of funding results in inadequate operational safety, poor facilitation levels and dependence on old technology.

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Non- commercial handling of financial management, unwanted bureaucratic approach and lack of professionalism in marketing and promotion are mainly responsible for financial constraints faced by the airport business. Technological update is crucial to compete with others in airport business. Unfortunately because of various constraints the developing countries cannot afford to pay for advanced technology. As a result of this old equipments and outdated techniques are used in airport services. Airports Management concept is changing and airports are expected to carry their primary function in most effective way. Airports are also diverging their business in managing all operational activities. Airports are therefore challenged to reorganize themselves and cope up with the change.

SHIFTING TREND

Overview
Aviation - Road Ahead Passenger traffic growth in the Indian domestic market is expected to continue high per year with domestic airlines being expected to operate almost 30 per cent more flights as compared with last year levels, marking the largest year-on-year increase in flights. The winter schedule will reportedly see 14,750 weekly domestic services as airlines expand their domestic networks and schedules, especially in the southern part of the country.

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The tier-II and tier-III market is...
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