Cornwall Airport Newquay is a major airport in Cornwall located in South West of England in the United Kingdom. The airport is used commercially to serve the cities within England. The airport supplies London daily from London Gatwick, it also serves Liverpool, Manchester, Glasgow, and many other cities within the United Kingdom. Generally, the airport serves the United Kingdom efficiently hence is the most preferred airport by the people within the UK and foreigners visiting the UK. Therefore, there is a need for the airport to be graduated into an airline to enlarge its services to the people within the area.
What Are Aeronautical Sources of Revenue?
The aeronautical sources of revenue include airline rents. Airline rents should be set so that they are affordable for the population around the UK and to those foreigners coming to the UK. Setting affordable rents would attract more people to the airline when the services are good with fair charges. The other primary source of aeronautical revenue is the usage fees. The usage charges and fees for the customers should also be fair enough to ensure that the people would afford it comfortably. Fare usage charges and bonuses to regular customers are attractive for non-customers who might join the airport as customers to help the company generate more profits to use in the improvement of the airport into an airline. Since these are the major sources of revenue for the airport, the management of the company should target more customers other than increasing the prices.
How Much Do Airline Companies Pay to Use an Airport?
Attracting more customers ensures more revenue while raising the charges might scare away even the loyal customers. The association between an airport and the airline could be compared to that of a property owner and his or her tenants (Graham, 2009). Essentially, every airline has to pay the airport for using its facilities. Additionally, the airline is responsible for the maintenance of the facilities that it uses. Most airports make contracts with the airlines that wish to use their facilities, the contracts are typically recognized as a Use and Lease agreement. This contract builds the relationship between the airfield and certain airlines that they wish to collaborate with. Within the contract, it is agreed that the airline would pay certain compensation to the airport for using and maintaining their facilities.
The compensations include the terminal rents that are dependent on the space that the airline has used within the airport. The space is also charged depending on its importance to the airport. Definitely, busy points within the airport are charged higher than other parts because of the more activities occurring there that lead to more profits and high costs of maintenance as well. Other compensations include the landing fees, the landing fee is charged per plane that lands. The fee differs with regard to the weight of any specific plane that lands at the airport, this is because the weight of the plane determines the intensity of maintenance that would be provided at that point (Tovar, & Martin-Cejas, 2009). There are also other charges that include charges for the normal airport services. The other airport services might include the use of a jet bridge among other special services within the airport. However, it is not mandatory that an airline has a signed treaty to allow it to use another airport. Nevertheless, when there is a contract between the airport and the airline, there are certain benefits enjoyed by the airline from using another airport, the benefits might include lower charges.
What Is Non-Aeronautical Revenue?
The non-aeronautical revenues that the airport should improve the services within the airport so that it would graduate into an airline include the enlargement of its parking. Before enlarging the parking, the airport should ensure that it has signs along the streets leading to the airport to show directions to their customers. Since it is no longer necessary for the airport to provide infrastructure, the airport authority should instead construct spacious parking for customers driving in (Zhang, & Zhang, 2012). Parking availability is a motivation that attracts more customers to the airport and because of that; the airport would experience additional profits within its operations. Additionally, the airport gains revenue from the parking charges, the parking charges are non-airline services that generate income to the airport. The parking within the airport makes car accessibility to the arrivals easy making it very enjoyable and attractive. The airport should organize how to enlarge its parking to attract more customers.
Attracting more customers ensures more revenue while raising the charges might scare away even the loyal customers. The association between an airport and the airline could be compared to that of a property owner and his or her tenants. Essentially, every airline has to pay the airport for using its facilities. Additionally, the airline is responsible for the maintenance of the facilities that it uses (Tovar, & Martin-Cejas, 2009). Most airports make contracts with the airlines that wish to use their facilities, the contracts are typically recognized as a Use and Lease agreement. This contract builds the relationship between the airfield and certain airlines that they wish to collaborate with. Within the contract, it is agreed that the airline would pay certain compensation to the airport for using and maintaining their facilities.
Since the airport targets more customers, if the space within the airport would not suit the enlargement of parking, the airport should alternatively collaborate with nearby parking service providers to allow more parking for the airport customers. Collaborating with a car parking service provider to help the airport park customers’ cars allows the airport to concentrate on its specific operations other than parking. Alternatively, the airport could resolve to modern ways of leavening parking such as the use of mobile applications that improve the speed and traveling convenience during the journey (Morrison, 2009). The applications include making arrangements for the travel, going back home as soon as possible, and arriving at the airport efficiently and quickly. The airport should therefore advise its clients to adopt the use of mobile applications to ease their operations in and out of the airport. When this is done, the customers would find it easy to operate within the airport and more customers would be attracted to the airport.
The overall outcome is that more profits would be registered by the airport. The airline can also use parking to attract more customers by awarding customer loyalty with free parking. The airport should identify its loyal customers and award them with free parking. Free parking for loyal customers attracts more customers since everyone would want to avoid the parking charges. Another improvement that the Newquay Cornwell Airport should consider applying is the automation of the parking services. This makes the movements within the airport swift with minimal disturbances (Tovar, & Martin-Cejas, 2009). Other non-airline sources that generate income to the airport include the availability of food and beverages at the airport, certain retail services, and passenger access. Most airports offer such services cheaply nowadays to ensure their customer’s comfort and luxury within the airports Newquay Cornwell airport authorities should follow suit in order to attract more customers to their services and make more profits as a result.
In conclusion, the airport has been very busy and helpful to the people that it should be promoted into an international airline. By improving its services and revenues, the airline stands a better chance to achieve the qualities of becoming an airline.
Graham, A. (2009). How important are commercial revenues to today's airports?. Journal of Air Transport Management, 15(3), 106-111.
Morrison, W. G. (2009). Real estate, factory outlets, and bricks: A note on non-aeronautical activities at commercial airports. Journal of Air Transport Management, 15(3), 112-115.
Tovar, B., & Martin-Cejas, R. R. (2009). Are outsourcing and non-aeronautical revenues important drivers in the efficiency of Spanish airports?. Journal of Air Transport Management, 15(5), 217-220.
Zhang, A., & Zhang, Y. (2012). Concession revenue and optimal airport pricing. Transportation Research Part E: Logistics and Transportation Review, 33(4), 287-296.
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