Aviation in the Global Context

Running head: AVIATION IN THE GLOBAL CONTEXT
AVIATION IN THE GLOBAL CONTEXT
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AVIATION IN THE GLOBAL CONTEXT
Table of Contents
Introduction....................................................................................................................2
Discussion......................................................................................................................2
Challenges and opportunities.....................................................................................2
Airport strategies for gaining competitive advantages...............................................7
Conclusion....................................................................................................................10
References....................................................................................................................12

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AVIATION IN THE GLOBAL CONTEXT
Introduction
This report aims to discuss the topic of aviation in the global context. A critical
evaluation of the opportunities and the challenges by the airport planners in the present time
with the comparison and the contrasting of the differences in the non-liberalised environment
is executed briefly in this report. The assessment of the response of the airport operator for
meeting the requirements of the dynamic market and the customers is briefly discussed in this
report. lastly, this report concludes with an appropriate conclusion for this report.
For predicting the direction of the international air transportation and it is important
for the airport planners to analyse the present conditions and plan accordingly. There has
been significant changes in the sectors of the transport in several countries and it imposes
immense changes in the methods of transportation that is favoured by the passengers
(Graham 2013). Any airport consists of the huge variety of the major facilities, users,
systems, rules, regulations and workers. Just as the cities flourish on the commerce and trade
with any other city, the airports become successful by fulfilling their part with the ability of
being lucrative to the location where any passenger or cargo travels.
Discussion
Challenges and opportunities
The airport planners face several challenges and there are various opportunities in the
airport management. The simulation of the flow of passengers in any airport terminal is a
major issue in any airport and the airport planners face this issue and discover the solution for
this problem. Some of the common issues faced by the airport planners in the recent time are:

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Airport management and marketing
It has been considered by the airport planners that the trends that are established
would grow towards the liberalisation and the deregulation and almost towards the end of the
time-scale of ten years, it might encompass the changes that are overdue in the control rules
and the ownership that would allow the aviation in ultimately take the appropriate place
among the global industries (Schlenker and Walker 2015). It has been predicted by the airport
planners that the technology would affect the airlines significantly. This industry of aviation
has faced significant challenges in the past and but at the reduced scale in comparison with
the present times. The major problems for the conventional airlines would be that majority of
the traffic would be carried by small number of the giant global integrators instead by them.
When the aspect of the property management is considered, the demands of the shareholders
of the airport and the owners is growing at the significant rate, this leads to the increase in the
importance of the non-aeronautical associated income in the airports. The environment of
marketing of the industry of airline would most certainly prevail difficult and volatile. In
future, it has been considered that the ability of building and maintaining the strong brands
would be an essential requirement for the success of the airline industry (Adler, Liebert and
Yazhemsky 2013). For achieving the effective success of the industry it would require the
spending of the communication among the airport planners that is substantial, well planned
and viewed in the strategic, long term method instead the tactical exercise that could be
reduced or might be ditched quickly before it becomes difficult. This method helps the airport
planners in managing the license, rental, concession and the lease associated interests. This
offers the required information for undertaking the essential business decisions associated to
the property.
Airport privatisation

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It has been discovered by the airport planners that the airports are increasingly relied
on private sector for providing the services as the method of reducing the costs and then
improving the range and quality of the services that are provided. The aspect of the
privatisation refers to the altering responsibilities and functions of the government that might
be completely or partly for private sector (Lozano, Gutiérrez and Moreno 2013). Most of the
services that are presently performed at the large commercial airports like the airline
ticketing, cleaning, retail concessions and the aspect of the ground transportation are majorly
provided by the private firms. Even post privatisation, the airports might be the subject to the
regulations of the government about the airline access, airport charges to the airlines,
security, protection of the environment and the safety. The privatisation advocates the belief
that the private firms will provide the extra capital for the development, the privatised
airports will be increasingly profitable due to the private sector that would operate these
airports with increased efficiency and it backs the belief that the privatisation will financially
provide benefit to all the levels of the government by the reduction of the demand on the
public funds and then increasing the base of the tax (Zhang et al. 2017). Moreover, the basic
that majorly drives the private enterprises towards the efficient and competitive operations
are increasingly becoming comprised by the publicly managed and owned airports. This leads
to the efficient structures and management of the executives for managing the responsibilities
has led to the increasingly streamlined and efficient structures of the organisations of airport
management that could visualise the solutions for future problems and the issues for reaching
the objectives of the airports.
Relations of the airport airline
Almost all the airports and airlines are operated and owned by subdivisions of the
state government or the state governments like the cities, countries or the airport authorities.
Unlike the railroads, bus lines and the freight carriers that should own their terminals, the

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airlines do not own the airports. This provides the advantage of holding the investment of
capital that is required for the operation, but is has a significant disadvantage which emerges
due to the coping of the practises, regulations and the policies of every airport. The airlines
that are mostly the tenants at airports therefore becomes the enmeshed in financial problems
of that airport. The deregulations has stimulated the trend towards the small aircraft that
increases the flight numbers required for serving the provided number of the passengers
(Molotch 2014). The deregulations has tended in encouraging the operations of hub-and-
spoke where any carrier chooses any airport as any hub and then it attempts numerous of
inbound flights in feeding the traffic for any outbound flight. The airport planners face the
issue of the growth of the traffic in the airports and it leads to the increase in the demand of
effective management of the airports. Due to the fact that the factors would be observed from
foregoing, the airline economics and the airport economics are closely related.
Automation
Another issue that is faced by the airport planners in the recent times is the addition of
the automation in the airports. The advancement of the ICT has provides simplification from
the operations of the airport. Due to the advancement in the ICT, it results in the demand of
addition of the applications of ICT to the airport operations for improving the crucial
functional personnel and departments in any airport for accessing the critical information of
the airport for supporting the resource management, maintenance and engineering, operations
and financial management and any other activities of decision support (Sheard 2014). The
management of any revenue stream of the airports could be increasingly complex and
challenging task. The designing of the billing module of the airport is done for widely
simplifying the billing and collation of all the non-flight and flight associated revenue. The
airport planners face the issue of the automation as these incidents are common due to the
increasing occurrence frequency. The errors of data-entry, the failures of monitoring, the