Ruth Haines
Airports can keep adjoining land from being developed by identifying parts of the airport area that are unlikely to be needed for future expansion projects. This involves mapping out concrete next steps for growth, including outlining different scenarios for future runway and terminal expansions, and identifying parcels of land that will remain unaffected by those plans. This enables airports to pinpoint sites for non-aeronautical development and generate revenue through landside real estate ventures. Additionally, airports can maintain control over adjoining land development by cultivating in-house expertise, tracking urban development trends, and collaborating with local businesses to understand their needs. Alternatively, airports can enter into joint ventures with experienced partners or outsource development to third parties to generate predictable monthly income while keeping landside investments low. These strategies allow airports to balance their core aeronautical operations with the strategic utilization of adjoining land for commercial purposes.
| Characteristics | Values |
|---|---|
| Land-use changes | Federally acquired or federally conveyed airport land |
| Airport purpose | Directly related to the operation or aeronautical development of a public airport |
| Nonaeronautical components | Parking, terminal complexes, fixed-base operator facilities |
| Strategic vision | Identify future expansion projects and areas unaffected by those plans |
| Development models | In-house, joint ventures, or outsourcing |
| Commercial developments | Higher profit margins compared to aeronautical charges |
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What You'll Learn
Airport zoning regulations
At aerodromes without Airport Zoning Regulations, cooperation with adjacent communities is sought to obtain provincial/municipal zoning protection against development that could compromise operational airspace. In such cases, objects penetrating any of these surfaces may affect the airport's operations and certification status.
In some instances, specific structures that contravene zoning regulations may be acceptable if the applicant can demonstrate through technical analysis that such approvals will not cause harmful interference. Early consultation with radar, navigational aid, or telecommunication system owners is crucial to avoid costly redesigns or delays in obtaining building approvals.
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Height restrictions on surrounding structures
Airports implement height restrictions on surrounding structures to protect the operational airspace around the airport. These height restrictions are established through airport zoning regulations, which apply to land located outside the airport's property boundary.
Airport zoning regulations aim to protect three types of surfaces at an airport: the approach surface, the transitional surface, and the horizontal surface. The approach surface is a imaginary plane that extends outward and upward from the end of the runway, ensuring that there are no obstacles in the flight path of incoming and outgoing aircraft. The transitional surface connects the approach surface to the horizontal surface, which is a specified height above the airport's reference point.
To comply with airport zoning regulations, the height of structures, including objects on the ground, must be limited to less than the height of these protected surfaces. This prevents objects from penetrating the protected airspace and potentially affecting airport operations.
In some cases, exceptions to airport zoning regulations may be considered. If a proposed structure contravenes the zoning regulations, the applicant may provide a technical analysis demonstrating that the structure will not cause harmful interference. Early consultation with radar, navigational aid, or telecommunication system owners is recommended to avoid issues that may impact local communities.
By implementing height restrictions on surrounding structures, airports can maintain the operational airspace necessary for safe aircraft operations while also considering the development needs of adjacent communities.
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Joint ventures with experienced partners
One strategy for airports to develop their adjoining land is to establish joint ventures with experienced partners. This approach can offer several benefits. Firstly, it allows the airport to leverage the expertise and resources of the partner organization. For example, in the case of Singapore's Project Jewel, Changi Airport partnered with CapitaMalls, a leading developer of shopping centres, to tap into their knowledge and experience in commercial real estate development.
Another advantage of joint ventures is that they enable the airport to maintain a focus on its core business. By collaborating with a partner, the airport can leave the intricacies of real estate development to the experts while still benefiting from the commercial opportunities that the adjoining land provides. This can result in a predictable income stream with lower landside investments, although it is important to note that the total income may be lower compared to maintaining full control over the development.
Joint ventures also allow for a clear division of labour and a well-defined decision-making process. Each party can contribute according to their strengths and focus on their core competencies. However, for this approach to be successful, the airport authority must have the capacity and willingness to collaborate effectively with their partners.
When considering joint ventures, it is essential to carefully select partners who align with the airport's strategic vision. Airports should also be mindful of maintaining control over their future aeronautical needs. Successful airports, such as Amsterdam Schiphol, have carefully mapped out their expansion plans for runways and terminals, ensuring that any commercial developments on adjoining land do not impede their aeronautical operations. This strategic planning enables airports to maximise the rewards from their landside real estate ventures while maintaining the flexibility needed for future growth.
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In-house real estate teams
Successful in-house real estate teams recognise the importance of landside real estate in maintaining profitability. They start by identifying potential customers, including passengers, employees, local residents, and local businesses, and understanding their unique needs. This customer-centric approach enables airports to develop site-specific strategies that leverage their geographic advantages and fill market gaps.
Additionally, in-house real estate teams should collaborate with various stakeholders, including economic development agencies, real estate developers, local governments, and the public. This collaborative approach helps gain support for development projects and ensures compatibility with the airport's aeronautical and non-aeronautical uses, as well as the community.
Furthermore, successful teams keep their priorities straight, ensuring that real estate developments do not take over the core airport facilities. They also need to find the right talent with expertise in both airport operations and commercial real estate. Outsourcing development to a third party can be an alternative, reducing risk and allowing the airport to focus on its core business, although total income may be lower.
Overall, in-house real estate teams play a vital role in driving the success of airport landside real estate projects by balancing customer needs, collaboration, and strategic vision while ensuring that the airport's core functions remain the top priority.
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Safety and access concerns
Safety and access are paramount concerns for airports, and the development of adjoining land must be carefully considered to ensure it does not impact the safe and efficient operation of aircraft or the safety of people and property on the ground.
When it comes to safety, any development must consider the potential impact on emergency procedures and aircraft operations. For instance, the construction of tall buildings or structures on adjoining land could pose a risk to aircraft navigation and safety. Additionally, the proximity of certain types of developments, such as residential areas or commercial establishments, might hinder emergency response procedures and access to the airport.
Furthermore, access to the airport and its facilities must be carefully planned. Developments on adjoining land should enhance, rather than hinder, the accessibility of the airport. This includes ensuring that transportation networks, such as roads and highways, and public transport systems, are adequately designed and maintained to handle the flow of passengers, staff, and goods to and from the airport.
The development of adjoining land should also consider the potential impact on noise levels and air quality. Airports have a responsibility to minimise noise pollution for nearby residents, and the strategic use of adjoining land can play a crucial role in creating noise buffer zones. Similarly, developments that attract additional traffic or contribute to air pollution could negatively affect the airport's operations and the surrounding environment.
To ensure safety and access are adequately addressed, airports often collaborate with specialised teams or partners. These partners could include real estate experts, urban planners, and environmental specialists, who can provide insights into potential development models and trends while ensuring compliance with relevant regulations and safety standards.
By carefully evaluating and planning the development of adjoining land, airports can maintain safe and efficient operations while also reaping the benefits of commercial ventures. This balanced approach allows airports to generate additional revenue, enhance their facilities, and contribute to the overall travel experience of their passengers.
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Frequently asked questions
The Federal Aviation Administration (FAA) has policies in place to process land use changes on federally acquired or conveyed airport land. This includes situations where a land use change impacts the safe operation of aircraft or the safety of people and property on the ground related to aircraft operations.
The FAA considers any activity that involves, enables, or is required for the safety of aircraft operations as aeronautical use. This includes services provided by air carriers related to the movement of passengers, baggage, mail, and cargo. Aeronautical use also covers sky diving and new entrants, with a narrow definition applied for land use purposes.
No, certain nonaeronautical uses that do not conflict with aeronautical needs or demands are exempt. These include nonaeronautical components of a primary aeronautical facility, such as parking, that support the core aeronautical function. However, these components should pay a fair market value lease rate.
Airports can take several approaches to developing their land. They can choose to manage the process themselves, form a joint venture with a partner, or outsource development to a third party. Successful airports map out concrete expansion plans and identify parcels of land that will remain unaffected by these plans for non-aeronautical development, generating significant income.
