Attracting Airlines: Strategies For Airports To Entice Carriers

Airports and airlines have a symbiotic relationship, relying on each other to thrive and serving the same customer: passengers. Airports can attract airlines by keeping costs low, having space for new entrants, making customer parking affordable, and sharing start-up costs. Local knowledge is also important, with tourism boards getting involved to increase the attractiveness of the destination to airlines. This includes information on local festivals, conferences, and new hotels. Additionally, airports can benefit from showcasing the best attributes of their city and airport, such as business opportunities and tourism potential.

Characteristics of Attracting Airlines to Airports

Keep costs low

Keeping costs low is one of the most important tactics an airport can use to attract airlines. The "cost per turn" is a term used to describe all the costs an airline pays to an airport, including landing fees, airport rental fees, and labour costs, divided by the number of operations at the airport. For example, the costs per turn at New York's JFK airport can exceed $5,000, which means that each seat on a typical US flight with 150 seats must generate over $33 just to cover the airport costs.

Anything an airport can do to lower these costs will make it more attractive to airlines. If an airline can operate at an airport for less, they can likely charge lower fares to that airport, which in turn creates more travellers. For instance, lowering parking prices at Atlantic City airport (ACY) attracted more customers than at Philadelphia or Newark airports, where parking was more expensive.

Airports can also offer waivers for a limited period of time for things such as landing fees and ticket-counter fees to make a deal more attractive. Additionally, they can share start-up costs with airlines, especially when an airline is setting up at an airport for the first time. While no airline expects a subsidy for long periods, help during the initial set-up can encourage airlines to consider service as it lowers the risk of entrance.

Another way to keep costs low is to avoid long-term leases. There has been a move away from long leases (10 years or more), which is a mutual decision from both airlines and airports. Instead, "per-turn" fees are becoming more popular.

Offer incentives

Offering incentives is a key strategy for airports to attract airlines. Airports can provide incentives in various ways, including cost reduction, local knowledge, infrastructure development, and marketing support. Firstly, airports can offer cost incentives by keeping their operational costs low or even providing waivers or discounts on landing fees, parking charges, and other airport charges. This makes it more affordable for airlines to operate at the airport and can result in lower fares for passengers, increasing demand.

Local knowledge is another powerful incentive. Tourism boards and local stakeholders can provide valuable insights on catchment areas, local infrastructure, economic details, and upcoming events or developments that can enhance the business case for airlines. By showcaseing the potential for passenger flow and highlighting the strengths of the destination, airports can sway airlines in their favour.

Infrastructure development is also an important incentive. Airports can invest in improving their facilities, such as runways, handling facilities, and cargo facilities, to cater to the needs of airlines. Additionally, developing real estate, infrastructure, and hub operations in collaboration with airline stakeholders ensures that improvements benefit both parties.

Marketing support is a further incentive that airports can offer. Airports can work with local businesses, economic development agencies, and tourism boards to create targeted marketing campaigns that highlight the benefits of operating at their airport. This includes promoting the local business environment, tourism attractions, and the airport's connectivity to other destinations.

By providing a range of incentives, from cost reductions to local knowledge and infrastructure development, airports can make their facilities more attractive to airlines, ultimately increasing their chances of establishing new routes and partnerships.

Provide local knowledge

Local knowledge is a key differentiator when an airport is pitching itself to an airline. While the airline will have access to a lot of data, they won't have the same depth of local knowledge as the airport and its tourism board.

For example, local knowledge about MRT links, express highways, and other infrastructure can make a catchment area more appealing. Local knowledge about upcoming conferences, new hotels, local festivals, and other events can also strengthen the business case for the airport. Tourism boards can also sell the destination, highlighting local attractions and benefits to convince the airline that selling tickets will be easy.

Additionally, economic details about the buying power of people in the catchment area, including income data, age, and other demographics, can improve the outlook for potential passenger flow. The tourism board can also present a list of the biggest companies in the local area, demonstrating their need to travel and their connections to other destinations.

By providing this local knowledge, airports and tourism boards can differentiate themselves from competitors and make a more convincing case for why an airline should choose their facility.

Ensure good transport links

Ensuring good transport links is a vital strategy for airports to attract more airline services. The airport's connectivity and accessibility are key considerations for airlines when deciding on their route map. Airports should focus on providing efficient and convenient transportation options for passengers and airlines to choose them over their competitors. Here are some ways to ensure good transport links:

Local Knowledge and Connectivity

Local knowledge is a powerful tool for airports to showcase their attractiveness to airlines. Tourism boards and local authorities can play a crucial role in providing insights on the catchment area's connectivity and infrastructure. This includes information about MRT links, express highways, and other transport options that can enhance the catchment area's appeal. For example, an airport with efficient MRT connections or a well-maintained highway system can highlight these advantages to airlines, making their business case more convincing.

Ground Transportation Options

Airports should strive for quality ground transportation options, including buses, trains, or shuttle services, to and from the airport. Collaborating with local transport providers to ensure regular and timely services can improve an airport's attractiveness. Additionally, providing diverse transportation options caters to different passenger preferences and budgets, making the airport more accessible to a wider range of travellers.

Parking Availability and Convenience

Offering affordable and convenient parking options is essential for attracting both airlines and passengers. Airports can consider providing competitive parking rates, especially when compared to nearby alternative airports. Additionally, integrating ride-sharing services, such as designated pick-up and drop-off areas, can enhance convenience for travellers. This can also reduce traffic congestion around the airport and improve overall accessibility.

Efficient Passenger Flow

Streamlining passenger flow, including efficient parking and transportation systems, is crucial for a positive traveller experience. Airports should aim for seamless travel experiences, from arrival to departure, by optimising the efficiency of their transportation systems. This includes ensuring adequate parking spaces, clear signage, and smooth traffic flow within the airport premises.

Collaboration with Airlines

Airports can work collaboratively with airlines to enhance ground transportation services. This may involve joint initiatives to improve transportation options, such as providing dedicated airline shuttle services or integrating airline ticketing with local transport providers. By partnering with airlines, airports can create more convenient travel experiences for passengers, making the airport a preferred choice for travellers and airline companies.

By focusing on good transport links, airports can position themselves as attractive destinations for airlines and passengers alike. This involves a combination of efficient transportation options, convenient parking, seamless passenger flow, and strategic collaborations with airlines and local transport providers.

Make the airport appealing to customers

Making an airport appealing to customers is a key part of attracting airlines. Here are some ways to do this:

Firstly, focus on convenience and accessibility. Make sure the airport has good transport links, including affordable parking, efficient ride-sharing options, and well-connected public transport. This will not only attract customers but also airlines, as more customers mean more demand for flights. Additionally, ensure the airport has a smooth and efficient check-in and security process, with fast turnaround times and minimal delays. This can be achieved through the use of e-ticketing, self-service kiosks, and fast-tracked experiences.

Secondly, provide a range of appealing amenities and services. This includes well-liked dining and shopping options, with a variety of choices to cater to different customer preferences and budgets. It is also beneficial to have integrated sales channels, allowing customers to make purchases in advance or during layovers and collect them at the gate, thus encouraging more spending. Implementing joint loyalty programs with airlines can also be effective, offering rewards such as free parking, retail discounts, or flyer miles.

Thirdly, focus on providing exceptional customer service. This includes having friendly and helpful staff, as well as ensuring the airport is clean, well-maintained, and comfortable. It is also important to prioritize safety and security, with efficient and effective security measures that do not cause unnecessary delays.

Lastly, consider the overall customer experience and how it can be enhanced. This could include providing comfortable seating, entertainment options, and efficient baggage delivery. Additionally, promoting local traditions, events, and festivals can add a unique and appealing touch to the airport experience.

Frequently asked questions