Rate, Fees and Charges Analytics

Overview

The establishment of fees, rates, and other charges at an airport is a complex issue. Some believes that airports should be totally self-sustaining and contribute revenues through enhanced Cost per Enplanement (CPE). With ever increasing passenger growth, compounding with major U.S. airlines consolidation and shifting operations towards hub airports, created a challenge for any size airports (especially mid to small size airports) to revise their fees, rates and other charges structure. In addition, constant decrease in funding sources for airport infrastructure improvement or capital improvement program (CIP) coupled with federal government and FAA regulation on stagnant passenger facility charges (PFC), makes it even more difficult for airport management to revise airport rates, fees and charges and attract new airlines and/or passengers to increase more aeronautical revenue streams.

 

 

Facts about airport rates, fees and other charges -

Between 2007 and 2012, 33 domestic airports classified as midsize hubs had 23.9 percent fewer departing passengers, on 26.2 percent fewer flights (source - government office and MIT study)

  • Partnership between airlines and airports is an ongoing challenge due to constant business structure and global demand changes.

  • The passenger facility charge (PFC) per flight segment has not increased since 2000 while airlines other fees (baggage service, ancillary service) has increased significantly (source U.S. aviation system and FAA report)

  • Constant decrease in aeronautical revenue stream (especially for mid and small hub airports) can force airports to either increase CPE for sustainability or cut down significant profit by offering financial incentives to airlines such as landing fees waiver, gratis advertising, revenue guarantees to airlines, etc.

 


AriesPro's Rate, Fees and Charges Analytics Difference/Benefits

 

Our analytics solution for airport rate, fees and other charges provides greater insight into airport financial, budgeting and operational information for better decision-making and sustainability. At an airport with integration and consolidation of critical information systems, key executives can have access to important information at their fingertips (desktop, mobile, tablets, website, etc.)

 

Information for example:

The airport’s current financial structure in terms of both aeronautical and non-aeronautical fees, rates and other charges;

Current operational issues and the immediate effect on the budget;

  • Projected increase/decrease in airlines rates and charges both airfield (landing fees, aircraft weight) and terminal usage (concourse, baggage claim)

  • Return on investment analyses for alternative development proposals;

  • Assess various options to offer airlines with incentives to attract new airlines and passengers traffic or to sustain in geographically competitive airport business

  • Gain valuable metrics with no complexity on rates and fees based on residual, commercial compensatory, or hybrid methodologies

Request Form
Send