Airport Economics and Retail Management
Airport Revenue
Methods of pricing Mechanism
Types of Retail Management Contracts
Changi Airport adopts a few retail management concept. For example Changi Millionaire Programme, Rewards Programme to attract and retain customers
Aeronautical Revenue - Sources of income that is directly from aircraft operations and processing of passengers and freight/cargo
Non-Aeronautical Revenue -Sources of income that is directly generated by activities within the terminal and rents for terminal space and airport land
Non-Aeronautical Revenue
Utility & Service
Airport Concession Fees - Business rental
Miscellaneous - consultancy, advertising
Carpark
Rental of office and warehouse space
Aeronautical Revenue
Aerobridge fees
Security Service Charges
Landing fees
Passengers charges
Aircraft parking fees
Airport typically utilise single-till or dual-till mechanism approach to determine airport charges
Single Till - Commercial revenues are subtracted from total airpot costs to arrive art the regulatory till
Dual-Till - Commercial costs are subtracted from total airport costs to arrive at the regulatory till. This effective means that commercial profits are not included in the regulatory till
Retail or commercial activities are very important in airport management to boast non-aeronautical revenue
The types of retail management models include
Management contracts
Master concession with several sub-concession
Self-management/subsidiaries/joint ventures
Multiple concessions