Airports of the Future : The Development of

Major airports in the United States typically have been individual entities, developed locally as self-sufficient enterprises. Only rarely have airport managers run systems of significant airports. Moreover, airports normally offer a broad range of products to all qualified clients. This local, allpurpose mode of operation is quite unusual for a competitive business. It is also inefficient and therefore likely to disappear in the coming generations. Efficient enterprises usually adopt business models that • focus on a segment of the possible markets -to specialize in the needs of specific clients and serve them cost-effectively; and • spread nationally and internationally -to achieve economies of scale and scope. This is the model for most successful manufacturers and service providers, such as Walmart or Microsoft. It is likely to be the model that will eventually prevail for airports, especially now that they are increasingly viewed as businesses rather than public services. Adoption of this proven business model will transform the airport industry from a collection of monadic activities to systems of airports. The imperatives of focus and scale are likely to effect significantly both the physical configuration and the operational aspects of airports. Airports probably will focus increasingly on serving particular clients or client groups and will develop into networks serving these markets. Three such systems are already emerging internationally: • 24/7 intercontinental airports featuring multiple parallel runways and enjoying minimal noise restrictions. Examples are: Atlanta/Hartsfield, Denver/International; Hong Kong/ Chep Lap Kok; Houston/Bush; Orlando/International; Seoul/Incheon; and Toronto/Pearson. • Cheap Fare, short haul airports serving the likes of Southwest, Westjet and Ryanair. Examples of these inexpensive airports providing service with low overhead are: Boston/Providence, Brussels/Charleroi, and Dallas/Love. • Cargo airports dedicated to serving integrated freight operators such as Fedex and UPS. Examples are: Los Angeles/Ontario, Louisville, Memphis and East Midlands (UK). In parallel, we can expect multinational airport operators to serve these systems, just as Hilton and Hyatt operate properties worldwide for many owners (including themselves). National and global operators have the ability to reduce unit costs and increase quality of service by profiting from enormous economies of scope. Such systems are indeed emerging in at least three ways: • Complete airport operators such as BAA; • Airport development teams providing BOT services, such as Hochtief and Bechtel; and • Specialist operators focusing on specific types of activities, such as Standard Parking.