Airport Landing Fees: Impact on Performance and Productivity Report

This report provides an analysis of airport landing fees, focusing on their role in managing airport operations and airline performance. It examines how landing fees are calculated based on factors such as aircraft weight, noise emissions, and landing time, and how they contribute to funding airport services like lighting and emergency services. The report discusses the Airport and Airways Improvements Act and the importance of reasonable and non-discriminatory fees. It explores how landing fees can be used to manage aircraft capacity, reduce congestion, and influence airline behavior, such as shifting flights to less congested times or using larger aircraft. The report also touches upon the relationship between domestic and international passengers and airside costs, concluding that domestic passengers do not shoulder more costs. The report also references the Airline Operating Agreement (AOA) and its role in ensuring that taxes collected cover operating expenses, highlighting the importance of landing fees in airport management. This report is valuable for understanding the financial and operational aspects of airport management.

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The analysis of performance productivity of air transport organization has attracted
more attention. Traditional techniques have been applied to access their financial position,
such as observing revenue levels and total costs. This led to the development of a new data
envelope analysis, which is used to analyze performance basing on the airport’s inputs and
output (Singh, 2016). The department tries its best to address the issue of charges and rates at
a local level between the airports and the users to minimize the need for Federal Intervention
to resolve the problems. Landing fees are computed according to the Airline Operating
Agreement. This AOA agreement ensures that the taxes collected can pay all the operating
expenses.
Airport charges provide vital information concerning fees and charges that are levied
by the airport commission. Many airport commission charges are incorporated in the tenant
leases that are fixed in accordance with specific lease terms. All aircraft are subjected to a
minimum landing fee based on the weight of the aircraft calculated at a rate of 1000 pounds
(Taghipour, Pieren & Schäffer, 2019). Keeping the landing fees low can attract more flights.
Different airports will charge a single fee that will carter to everything, including gates and
check-in facilities as part of the fee. Landing fees in different airports cannot be compared
since various factors affect the amount of fee charged. These factors include operator class,
the time, weight, and several seats in a plane. Therefore, some airports charge a very high fee
to discourage aircraft from landing in the airlines.
Un-cooperative aircraft owners raise the amount of fee to discourage un-cooperative
aircraft owners from landing. The airports and airways improvements act to require that
airports should be available for public use on reasonable conditions and without
discrimination. Therefore, charging high landing rates will discourage them from landing.

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Landing fees should be based upon aircraft weight, aircraft noise emissions, landing
time, and other factors. These factors, for example, weight, require vortex separations, which
assists in reducing the number of aircraft movements. Different aircraft consume different
resources, and therefore different landing fees should be charged (Hoelzen et al. 2018). For
example, the massive aircraft will occupy an ample space leading to the congestion in
airports, and therefore charging a higher fee will benefit the company and prevent losses.
Landing fees adequately contribute to many aircraft operations such as lighting, navigational
aids, and emergency services.
Landing fees should be used as a tool for managing aircraft capacity and delay. If an
airport wants to reduce congestion, then excess demand should be eliminated through the
reduction of planes that land during the peak seasons. This is done through increasing landing
fees, which will make an airline shift its flight to a less congested area using larger aircraft.
Large aircraft should be charged a higher landing fee as compared to the small planes since
they occupy a larger space. Besides, when aircraft delays in the airline, it is charged more
fees, thus reducing congestion in airspaces (Chung, Lee & Jang, 2017).
Domestic passengers do not shoulder more airside costs than the international
passengers because the domestic passengers spend less of his or her money in the airport as
compared to an international passenger. They are reported by the traffic air control as they
exit the runway.

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References
Chung, T. W., Lee, Y. J., & Jang, H. M. (2017). Comparative analysis of three major transfer
airports in Northeast Asia focusing on Incheon international airport using conjoint
analysis. The Asian Journal of Shipping and Logistics, 33(4), 237-244.
Hoelzen, J., Liu, Y., Bensmann, B., Winnefeld, C., Elham, A., Friedrichs, J., & Hanke-
Rauschenbach, R. (2018). Conceptual design of operation strategies for hybrid
electric aircraft. Energies, 11(1), 217.
Singh, K. L. (2016). Stress and Fatigue Damage Computation of a Nose Landing
Gear. International Journal of Fracture and Damage Mechanics, 1(2), 20-37.
Taghipour, A., Pieren, R., & Schäffer, B. (2019). Short-term annoyance reactions to the civil
helicopter and propeller-driven aircraft noise: A laboratory experiment. The Journal
of the Acoustical Society of America, 145(2), 956-967.