Physical Design and Capacity Limitations in Airport Operations Order Instructions: Airport Operations

Assignment

“One city, six airports.
Heathrow, Gatwick, Stansted, Luton, City & Southend.”

Design and Capacity Limitations in Airport Operations

Assessed against the following learning outcomes:

1. Critically assess the consequences of physical design and capacity limitations for an airport. London City.
2. Critically assess the strategy of a city with six airports. London airports: Heathrow, Gatwick, Stansted, Luton, City & Southend.
3. Confirm or propose an alternative strategy London as a city and its airports.
Word Count: – 3000 to 4000 words

The following issues must be taken into account:

• Airfields.
• Terminals.
• Access.
• Population.
• Economy.
• Airlines.
• Air services.

Design and Capacity Limitations in Airport Operations Marking criteria

The student must show a good knowledge of the air transport industry from the airports perspective. This exercise will be conducted using one city, London, and its six airports, Heathrow (LHR), Gatwick (LGW), Stansted (STN), Luton (LTN), City (LCY) & Southend (SEN).

Question 1: 30%.
Question 2: 30%.
Question 3: 40%.

The students should deliver their personal analysis supported by data at least about the following aspects:

1. Airport facilities and design of London City airport.
2. Airlines operating from the six airports.
3. Destinations served from the six airports.
4. Access from the catchment area.
5. Connectivity at the airports.
6. Strengths and weaknesses of operating six airports in one city.
7. London as a destination and connecting point in the air transport industry. (In the United Kingdom and from a regional and global perspective).

The following elements will be assessed:
• A clear understanding and complete analysis of the topic (given the length/scope of the assignment).
• The originality of ideas and expression.
• Appropriate evidence of reading and research.

10 Outstanding • Original ideas well developed, relevant, and thoroughly supported
• Analysis complete
• Ideas and expressions original
• Evidence of reading and research apparent (where appropriate)
• Perceptive insights
• Text interesting
9 Excellent • Topic coverage complete
• Appropriate elements achieved to a high degree
• Many ideas and expressions original
• Some evidence of research (where appropriate)
• Text interesting and shows promise
8 Very good • Topic coverage mainly complete
• Most elements completed well
7 Good • Topic coverage nearly complete—minor omissions only
• Analysis weak in places
6 Satisfactory • Topic coverage basic
• Evidence of some analysis
5 Sufficient—improvement needed • Topic coverage just adequate
• Other elements present at a basic level
• Minor omissions in some elements
4 Insufficient—remediation suggested • Topic coverage inadequate
• Analysis lacking
• Text uninteresting
• Omissions in several elements
3

Unsatisfactory—remedial work needed • Intent of the writing difficult to understand
• Omissions in most elements
2 • Text unfocussed and confusing
• Major omissions in all elements
1 • Off-topic
• Complete lack of audience awareness
• Text unfocussed and confusing

The organization of the document should include a clear thesis statement, a variety of effective transitions to make the writing ‘flow’, appropriate and logical structure both within the assignment as a whole and within the paragraph. Good main ideas should be at the paragraph level. An introduction, development and conclusion structure should be used.

The spelling must be correct and consistent in usage. Punctuation, correct, consistent and with the appropriate variety

Design and Capacity Limitations in Airport Operations Sample Answer

Airport Operations

introduction

The highly competitive market has brought about new thinking in the airport industry. To remain relevant and ensure exponential growth, airports have been compelled to undergo structural transformation through privatization. In the past ten years, for instance, the management of the airport has faced remarkable changes that have affected international financial performance while elevating the economic condition of the sector. This paper presents an analysis of 6 airports in London City. It sets out to evaluate not just the strategic plan implemented by London City’s airports but also the strategic options and techniques. In the end, the paper recommends alternative options for sustainable growth.

Part one

This section looks at the impacts of physical design as well as capacity restrictions of London City Airport. In addition, part one presents a detailed discussion regarding passenger profile, facilities within the airport, and limitations of the airport due to its design and capacity.

The London City airport

This is the city airport located at the Royal Docks. According to London City Airport (2013), the airport is located in London City, the main financial district of Europe and London’s business hub based in the Docklands. It also acts as the niche market. Again, this airport is owned by Global Infrastructure Partners and Highstar Capital that controls 75% and 25% respectively. London City Airport is preferred by many travelers not only due to accessibility but also because of its efficient, easy and fast. Conversely, it plays a major role when it comes to business output and inward investment. For instance, on a yearly basis, it contributes approximately ₤750 million to the economy of UK (Greater London Authority, 2013). Besides, it is the most prompt airport across the UK. Consequently, the airport was recognized the “Airport of the Year” in the category of serving less than ten million clients yearly (BBC, 2013).

Design and Capacity Limitations in Airport Operations and the Passenger profile

Three years ago, the airport served about 3.3 million passengers and handled roughly 74,000 aircraft schedules. In many instances, the airport provides point-to-point services, whereby passengers prefer global flights due to business purposes (London City Airport, 2013). The pie charts below illustrate the distribution of passengers based on gender, age, a goal of traveling and the type of service chosen by travelers.

Figure 1. TraTravelersofile with respect to age at City Airport

Figure 2. Travellers profile with respect to gender at City Airport

Figure 3. Travellers profile with respect to the aim of travelling to City Airport

Figure 4. Passenger traffic based on the type of service

London City Airport facilities

The airport provides a wide range of facilities to increase the travel experience of customers. Furthermore, the airport provides business class facilities to passengers accompanied with free Wi-Fi and internet connectivity (London City Airport, 2014). Again, London City Airport offers other facilities and services including;

Left and lost luggage services
Care hire
Restaurants and bars
Currency points such as ATM services and currency exchange
Parking areas on the eastern part of the airport, which provides short term and long term stay for about nine hundred cars. Passengers also have the opportunity to pre-book parking space.

Physical design and capacity

London City Airport comprises of different structures, for instance;

The airport has one runway covering 1508 meters long and surrounded by King George V Dock and the Royal Albert Dock with the ability to handle majority of business aircrafts.
Terminal and JET Centre, a business aviation situated on western part of the airport.
Fire station and ground handling services
Apron
Maintenance
Other facilities such as operational areas

The terminals consists of travellers self-service centers of Air France, SAS and British Airways, security areas, baggage claim section, custom and business sections. Owing to the fact that London City Airport is compact, it gives room to not just arrivals but also effective and easier departures in comparison to other airports across London. Moreover, the airport has two traveller piers, which connect the terminal to different stands. A scheduled aircraft has approximately 17 stands; the pier on the west accommodates stands 1 to 10 while those on the east handle 21to 24 stands (Full Fact, 2013). Nonetheless, buses serve stands nearer to the terminal. Much as London City Airport has various physical designs, it also has some drawbacks;

The 1508 meter runway is short; therefore, it is not in position to handle huge and wide aircrafts. The biggest jets, London City Airport can accommodate are small and narrow body like airbus A318.
According to New Economic Foundation (2014) there are cases to close the operations of London City Airport, which may negatively influence its expansion and potential growth.
London City Airport is located on a constrained area as well as limited infrastructure that hinder its ability to meet the increasing demand for air travel in turn constrains capacity.

The capacity of any given airport is described based on the restrictions imposed by the size of the runway, airspace and terminal. With respect to the current approximations, London City Airport would be at 100 percent- operating capacity in 2024 (Full Fact, 2013). The airport has anticipated these constraints due to its physical design as well as capacity. To fulfill the increasing capacity while enhancing demand for air travel, the airport has designed a 2030 Master Plan that revolves around planning and also developing its future expansion. Moreover, the airport has developed “The City Airport Development Plan”, a planning submission for new airspace infrastructure and extended traveller facilities. The airport also purposes to enhance its performance without negatively affecting the environment. Thus, the planning submission consists of; comprehensive terminal structure; equivalent to taxi lane; and new airplane stand and pier leeway.

Part 2

This part presents London’s strategy of multi-airport structure. In addition, this part provides a detailed analysis of how traffic is distributed in the six airports, rout networks, connection, surface movement and strategy assessment.

Strategic choices

Competitive assessment of the aviation sector is associated with the degree of influence airport operators have on price and product features. For that reason, it is necessary to evaluate and develop strategic options to gain competitiveness. Consequently, airport operators pursue strategic choices in accordance with Porter’s strategies such as

Cost leadership that focuses on low operation expenses
Differentiation that involves creating unique products or services and also attractive than their rivals
Niche, which entails concentrating on a certain target audience or market

London Heathrow airport

This is UK’s center and the main airport located in the suburbs of western London. Additionally, Heathrow airport is owned by Heathrow Airport Holdings. London Heathrow airport is preferred owing to the myriad international connections it offers. In 2014, Heathrow airport was recognized by Skytrax as the “best airport for shopping”. On the other hand, in 2013 it was recognized through the ACI Europe Awards, as the best airport with respect to terminal 5. Currently, London Heathrow airport has 5 terminals with 2 runways and 3^rd busiest globally (LHR Airports, 2014). However, the main challenge the airport is facing is inadequate runway capacity that is adversely affecting its operations because it might lose demand for air movements to other centers across Europe. While this has contributed to suggestions for the expansion of the London Heathrow airport, it has often been halted due to political and environmental constrictions. Subsequently, the airport utilizes differentiation tactic through provision of improved products. The distinctiveness of London Heathrow airport is based on its capability to offer customized services to various types of clients and its 5 terminals, for example;

Terminal 1 focuses on local flights
Terminal 3 concentrates on long-haul flights to United States, Asia and South America
Terminal 4 focuses on flights to Europe and long haul flights. In fact, at the moment it accommodates SkyTeam alliance
Terminal 5 is used by Iberia and British Airways

Some of the strategic priorities of London Heathrow airport include; launch terminal 2 operations; transforming the airport under a strong settlement; and plan and develop the airport for future expansion.

Passenger profile

The airport serves about 72m travellers yearly while remaining the center for long-haul terminus. About three quarters of United Kingdom’s long haul destinations are easily accessible through the London Heathrow airport.

Destinations

Whereas the airport accommodates approximately 180 destinations, New York, Amsterdam, Dublin, and Frankfurt are London Heathrow airport’s major destination. Heathrow airport is mainly controlled by British Airways. Furthermore, London Heathrow airport is the main center for British Airways and Virgin Atlantic’s main operating surface. Besides, major airlines that operate from Heathrow airport include Delta, American and Air Canada.

Access to London Heathrow airport

The airport’s catchment area is based in the central regions of London such as regions in the western as well as north-western London. It is about fifteen miles from central London and easily accessible through coaches, buses and trains.

Gatwick airport

This is the second biggest airport in United Kingdom located in Crawley, western parts of Sussex. In addition, it is controlled by Gatwick Limited. Actually, this airport is more popular in comparison to Heathrow. In 2013 during The National Transport Award, Gatwick airport was recognized as the “Airport of the Year”. In the year, in the British Parking Awards, Gatwick airport was bestowed as the “Exceptional Customer Service” and “Best UK Airport” in the Business Travel Awards (Full Fact, 2013).

Gatwick airport has 2 terminals and 2 runways while operating as one runway airport. The airport has an operation capacity of 95 percent and the busiest and one runway globally. Nonetheless, insufficient runway capacity is a main problem that can influence Gatwick’s future development. Like Heathrow airport, Gatwick employs differentiation approach to provide unique services for charter as well as scheduled flights. Additionally, Gatwick airport has integrated cost tactic following the development of cheap carriers (Gatwick Airport, 2014). Gatwick has a number of strategic priorities such as;

Improve efficiency and service value by genrating maximum returns at reduced operational expenses.
Gain competitive advantage while substituting Stansted and Heathrow airports’ services to become London’s preferred airport
Expanding its business travel in developing markets

Passenger profile

Gatwick airport provides a scheduled full-service, low-cost and charter services and serves roughly 35 m travellers yearly. In addition, this airport provides point-point services, while about a third of its clients travel to short-haul terminus primarily for leisure activities.

Gatwick airport’s destinations

This airport offers flight services to approximately 240 terminuses in more than 90 nations. In addition, the airport serves more destinations in comparison to Heathrow airport especially in Continental Europe. Gatwick’s main destinations include Dublin, Amsterdam, Geneva and Barcelona. It is also controlled by roughly 60 airlines whereas Easyjet is its biggest carrier and British Airways. Additionally, Gatwick is the main center for low-cost flights such as Flybe (Gatwick Airport, 2013).

Accessibility to Gatwick airport

The catchment regions of Gatwick airport are central and southern parts of London especially, Kent, Surrey and Sussex. It is about 28 miles south of London and it is adequately linked to public transport systems. The airport initiative to attaining sustainbale services, it is enhancing the quality of surface transportation networks. It has also launched 2012-2030 Airport Surface Access strategy to offer suitable transportation systems

London Stansted Airport

This airport is the third biggest airport in London and it is based in Essex. The Stansted airport is owned and controlled by Manchester Airports Group. In 2011 to 2014 in the World Airport Awards, Stansted airport was bestowed as the “Best Airport” in the low-cost category. It has 1 terminal with one runway covering 10,000 feet, which gives it the ability to accommodate large aircrafts. Since it has extra capacity, it has the ability to accommodate approximately 40 m travellers yearly (Stansted Airport, 2013). The airport uses cost strategy, which allows it to offer cost-efficient flight services particularly with low-cost carriers. This contributed to a significant number of low-cost carriers.

Passenger profile

Stansted airport provides not only charter but also scheduled services and serves about 18m travellers yearly. Additionally, the airport primarily focuses on short-haul destination for leisure activities in the low-cost category.

Stansted destinations

The airport caters for more than 150 destinations within United Kingdom and Europe. Some of its main destination includes Malaga, Belfast, Rome and Alicante. In addition, it operates 14 airlines while Ryanair is its primary carrier and EasyJet. Again, it is the operating hub for larger European budget carriers. Other major airlines that operate from this airport include Air Berlin, and German wings. In 2014, Thomas Cook Airline signed an agreement with Stansted to provide eight destinations (Stansted Airport, 2014).

Accessing Stansted airport

Its major catchment region is London and expands to north eastern from central parts. In addition, the catchment area is controlled by East Anglia and Westminster. The airport’s target market extends to several parts of Midlands while low market covers west and southern parts of London. It roughly 30 miles from central London that makes it accessible by rail or road.

London Luton airport

It is the fourth largest airport in London located in Bedfordshire. It is also controlled by London Luton Airport Operations Limited. Moreover, the airport has 1 terminal and 1 runway working at a capacity of 60 percent (London Luton Airport, 2014). Nevertheless, the terminal has been differentiated in to 2 levels, for departures and arrivals. Initially, Luton airport used the strategy of offering various flight services, but it now concentrates on budget carrier services. The airport is mainly controlled by budget airlines, and it is the operational centre for EasyJet.

Passenger profile

Luton airport provides charter as well as scheduled services to about 9.7 m travellers yearly. Furthermore, the airport focuses on budget services for medium as well as short-haul destinations.

Luton airport’s destinations

The airport offers charter and scheduled flight services to more than 100 terminuses in UK, African, Europe and Middle East. Luton airport’s main destinations include Dublin, Amsterdam, Budapest and Warsaw. Subsequently, it operates nine airlines while Easyjet and Wizz Air are its biggest carriers. Other airlines operating from Luton airport include Blue Air, Atlasjet, Thomson airlines and so forth (London Luton Airport, 2012).

Access

Its catchment area is based in the northern part of London and regions in East Midland. The catchment area is dominated by Hertfordshire, Buckinghamshire and Greater London. The airport is about 35 miles from central London therefore; it can be accessed by buses, rail and coaches.

London City Airport

This is the United Kingdom’s main business airport. It offers flight services to short-haul destinations especially, the Europe. City airport’s tactic is meeting the requirements of business clients; this is because it is close to London’s financial centre, city and Canary Wharf.

Destinations

The airport serves roughly 50 destinations within UK, United Sates and Europe. Some of the airlines that operate from this airport include CityFlyers, British Airways, City Jet, Blue Islands and Aer Arann. Consequently, Flybe signed an agreement with City airport to provide flight services to Dublin, Belfast and Edinburg (BBC, 2014).

Access to City Airport

The city airport catchment region is in central parts of London. A number of air movements are concentrated in south east England such as Tower Hamlet, London City, and Docklands. The airport is located in the centre of the city, thus, well linked by underground buses, coaches and railway.

London Southend airport

This is not only a new entity but also cost-effective airport that is located in Essex. In addition, Southend is controlled and managed by Stobart Group. In 2013, Southend airport was recognized the “Best Airport across UK and also received the European Regions Airline Association. Southend airport underwent an expansion phase with additional terminal, train station, runway and control tower (London Southend Airport, 2014). The airport has the ability to accommodate big airliners with additional capacity to serve about five million travellers yearly. Its main carrier is EasyJet, a low budget airline. The introduction of budget carriers contributed to significant growth in air movement at the airport. This airport uses cost strategy whereby it offers services at competitive charges, which has in turn contributed to future expansion.

Passenger profile

The airport provides charter, scheduled and corporate flight services. On the contrary, it serves approximately 1 million travellers yearly.

Destinations

The Southend airport is dominated by EasyJet and Aer Lingus Regional. In addition, this airport serves fifteen destinations in Europe and United Kingdom. Its main carrier is EasyJet, which serves fourteen destinations including Barcelona, Berlin, Alicante while Aer Lingus Regional serves Dublin. In 2014, Sourthend and Flybe airlines signed an agreement to provide flight services to 6 additional destinations (London Southend Airport, 2014).

Accessibility

The catchment area for Southend is based in Central London and Essex, and regions in the southern part of London. A number of travellers access the airport by road and railway. In addition, it has direct rail connecting Liverpool and Stratford (London Southend Airport, 2013).

Part 3

This part presents an analysis of for strategy for the six airports in London put into account the future growth of air movement.

Multi-airport Structure

This form of system is common in metropolitan setting because it is associated with a significant degree of traveller traffic and airlines. In some cases, it is related to overlapping catchment regions. London’s multi-airport structure caters for airline traffic and the people of London. Again, in Europe, London has a high number of airports to meet the needs of different customers. Moreover, his structure is effective for London since the airports’ strategic plan to cater for a certain metropolitan region increases not only revenue but also efficiency. Other benefits of multi-airport structure include;

Reducing traffic in major airports, especially Gatwick and Heathrow
Offer extra capacity to secondary airports such as City, Luton, Southend and Stansted
Helps in effective management of air movement and navigation
Increases efficiency , operation while maximizing operational strength
Generate revenue while providing social growth of a particular region

However, London multi-airport system contributes to congestion, thus in scenarios where traffic converges it becomes intricate to manage traffic. It also leads to market segregation that in turn leads to increased operational expenses per client. For that reason, there is a need to plan and develop London multi-airport structure for the future growth of the aviation sector. In effect, this will be import in addressing capacity limitations.

Passenger profile

In the past 4 years London airports served about 135 million travellers, many flew to different destinations. In addition, these airports are sufficiently linked to Central London, however, there is less interaction among airports due to inadequate access. In the year 2012, London airports served approximately 135 million people, traveling to various destinations (Full Fact, 2013).. As of now, Heathrow and Gatwick airport are the busiest not just in UK but also across the world. Moreover, these airports are operating at capacity level. The recent appraisals indicate that by 2030, these airports should be able to operate at 100 percent -capacity (Greater London Authority, 2013).

London Airports Plan Approval

Airports in London have been able to manage and create an all-inclusive prospective growth of London aviation business. Nonetheless, the core issue is about realizing significant operation capacity for its airports. This is because several propositions were presented to the Airports Commission, like;

Building a third runway at Heathrow airport
Creating the second runway at Gatwick airport
Constructing an extra airport to the Eastern part of London, referred to as Boris Island and Thames Hub

However, development projects of Heathrow and Gatwick airports do not look viable as a result of environmental effect resulting from noise and air quality. Moreover, propositions to construct an extra airport to operate as a centre come with a litany of challenges; again, this doesn’t look achievable because of the high cost involved and the protracted timeline for constructing the project. Again, the entire shift of the airport may easily disrupt the current fiscal balance and may be too involving (Greater London Authority, 2011).

Based on this backdrop, I recommend a strategy to: Enlarge London’s secondary airports by augmenting as well as advancing infrastructure and services. To be successful with this strategy, few requirements should be put in place:

Diffuse the traffic from the main airports to auxiliary airports. The secondary airports will be appealing to the airlines and commuters coupled with an appropriate labeling and also marketing approach.
Heathrow airport for instance, can redirect short-distance flights to other airports as it concentrates on long-distance flights
Augment the transport right of entry with road and rail linkages
Enhance airport connectivity.

For the future of UK’s aviation industry, the following proposal may be strategic. The UK aviation industry ought to expand the road networks, enhance connectivity with upcoming aviation markets namely Brazil, West Africa, Turkey, Russia, India and China. Meet the demands of local traffic in terms of geographical locations, passenger profiles and accessibility.

Design and Capacity Limitations in Airport Operations Conclusion

In part one; the paper presented the effects of physical design and capacity restrictions on London city airports. It was clear that inadequate infrastructure and location are major reasons for capacity constraints. It also discussed services offered by London city airport and passenger traffic. The strategic priority of City airport is catering for the needs of business passengers. In the second part, the paper presented a discussion of the London airports’ competitive strategies. These airports cater for various markets and different strategies that fall in niche or differentiation groups. Strategic choices and techniques were categorical following a comprehensive assessment of passenger traffic, king of service and destinations. In part three, the paper assessed strategies and techniques for an effective control of the multi-airport structure. This section also recommended some strategies with the goal of future expansion of London’s aviation sector.

Design and Capacity Limitations in Airport Operations References

BBC (2014) Flybe to start London City Airport routes [online] accessed on 27^th June 2016 from <http://www.bbc.com/news/business-27122754>

Full Fact (2013). Airport expansion: the options, the numbers and the noise [online] accessed on 27^th June from https://fullfact.org/factchecks/airport_expansion-29300

Gatwick Airport (2014). Facts & Stats [online] accessed on 27^th June 2016 from

<http://www.gatwickairport.com/business-community/about-gatwick/at-a-glance/facts-stats/>

Gatwick Airport (2013). Annual Report 2012 [online] accessed on 27th June 2016 from <http://www.gatwickairport.com/PublicationFiles/business_and_community/all_public_publicati ons/corporate responsibility/S106_2013_Report.pdf>

Greater London Authority (2013). Airport capacity in London is currently underused, says new Assembly report [online] Accessed on 27^th June 2016 from 38 <https://www.london.gov.uk/media/assembly-press-releases/2013/05/airport-capacity-in-london- is-currently-underused-says-new>

Greater London Authority (2011). A new airport for London: Part 1 – The Case for New Capacity [online] Accessed on 27^th June 2016 from <http://www.london.gov.uk/sites/default/files/AnewairportforLondon_part1.pdf>

LHR Airports (2014). Awards [online] Accessed on 27^th June from <http://www.heathrowairport.com/about-us/company-news-and- information/performance/awards>

London City Airport (2013). Annual Performance Report 2012[online] accessed on 27^th June 2016 from <http://www.londoncityairport.com/content/pdf/Annual%20Performance%20Report%202012.pdf >

London City Airport (2014) London city airport maintains position as most punctual airport in UK [online] Accessed on 27^th June from https://www.londoncityairport.com/News/ReadPressRelease/1427

London Luton Airport (2014) Key Facts [online] accessed on 27th June from <http://www.london- luton.co.uk/en/content/8/239/key-facts.html>

London Luton Airport (2012) Airport Surface Access Strategy [online] accessed on 27^th June from <http://www.london-luton.co.uk/en/content/8/242/surface-acces.html>

London Southend Airport (2014) Airlines [online] Accessed on 27^th June from <http://www.southendairport.com/flight-information/airlines/#ailines>

London Southend Airport (2013) Annual Report 2012-2013 [online] accessed on 27th June from <http://ripassetseu.s3.amazonaws.com/www.southendairport.com/_files/documents/jun_13/SOU THEND__1372322711_Annual_Report_V4_Digital_Versi.pdf>

New Economics Foundation (2014). Close London City Airport [online] accessed on 27th June from <http://www.neweconomics.org/press/entry/close-london-city-airport>

Stansted Airport (2014). Stansted Facts and Figures [online] accessed on 27th June from <http://www.stanstedairport.com/about-us/stansted-facts-and-figures> Stansted Airport (2013). Airport Management Report [online] accessed on 27th June from<http://www.ukaccs.info/stansted/manrep1013.pdf>

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