Airport Appraisal Report: London Gatwick Airport Analysis

This report provides a comprehensive appraisal of London Gatwick Airport, examining key performance indicators and financial aspects. The introduction highlights the importance of airport appraisals and sets the stage for the analysis. The main body delves into flight movements, passenger numbers, revenue sources (aeronautical and non-aeronautical), and operational costs. The report analyzes changes in these figures over time, discussing the impact of the pandemic and the airport's strategies for maintaining revenue. The evaluation of revenue sources focuses on airport charges and their contribution to overall income, comparing the airport's performance with global averages. Operational costs are identified, and the report notes a decrease in these costs, leading to increased profitability. The influential factors affecting the airport group are also assessed, emphasizing the significance of cost management. The conclusion summarizes the findings, highlighting the airport's market share, revenue growth, and cost-reduction strategies, leading to improved profitability and long-term growth. The report includes references to relevant academic sources.

Airport appraisal

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Discussion of the facts and figures of the flight movement and the number of passengers in
the airport and analysis and evaluation of various changes in the above figures........................1
2. Evaluation of key sources of revenue and its related aspects with respect to the airport group
......................................................................................................................................................1
3. Identification of the operational costs that are incurred in the airport and also discussing if
there are any changes in it............................................................................................................2
4. Evaluation of the factors that are most influential regarding the airport group.......................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Appraisal of airport is an essential part in the working as it is very crucial to analyse and
evaluate the performance of a specified airport group (Chilveri and Nagmode, 2018). London
Gatwick Airport Limited is an airport group that is established in the UK and is doing its
operations since a very long time and enjoys a good share of customer. This report covers
various topics such as facts and figures about the airport group regarding its flights and
passengers and its changes. Also revenue and its aspects are also discussed regarding the
company. Apart from this the report also covers the operations costs and its changes with context
to the airport. Further the most influencing aspect is also analysed in this report.
MAIN BODY
1. Discussion of the facts and figures of the flight movement and the number of passengers in the
airport and analysis and evaluation of various changes in the above figures
London Gatwick Airport Limited is an airport that is owned by a private firm, though the
pandemic hit very hard as there is travel restrictions all over the world but it has very well cope
up with it as the firm is one of the largest firm in the world and it operated like that only in these
adverse times. Passengers load is around 4500000 in the year 2018 but it has raised to around
4700000 in the year 2019. on a daily basis the airport flight load is around 1900 flights in the
year 2018 that rose to around 2000 flights a day in the year 2019 (Hin, 2020). The company that
is London Gatwick Airport Limited is a well established firm and is operating since a long time
and has many loyal customers too and thus it has done pretty well in nullifying the effects of the
pandemic as it started various services like fly to nowhere and thus it attracted many passengers.
2. Evaluation of key sources of revenue and its related aspects with respect to the airport group
London Gatwick Airport Limited is a firm that is one of the largest in the world and its
aeronautical revenues for the year 2018 was around £400 million while it rose to around £450
million in the year 2019. Whereas its non-aeronautical revenues was around £350 million for the
year 2018 and it rose to £400 million in the year 2019. Main sources of revenues for the firm that
is London Gatwick Airport Limited are mainly from three areas that are airport charges that
include landing charges, departing passengers charge, and the packing charges of the airport.
These all are very important as well as crucial for the company as it generates mostly all the
revenue from these factors only. As the firm has done pretty well in the revenue sector and it has
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done far better than the global average that is reported by the Airport Council Internation which
is the international body that regulated and keeps an eye on all the aspects of all the airport and
its group. The firm puts most of its emphasis on the passenger and aircraft charges in the
generation of the revenue as the airport group generates the most of its share through these two
aspects (Iosifidis, 2020).
3. Identification of the operational costs that are incurred in the airport and also discussing if
there are any changes in it
Operational costs are the costs that is generated in the day to day normal business
operation and it can be said as the cost that is generated by production an extra unit of output. It
includes the cost of goods sold from operating expenses and thus it is very important for a firm to
keep all the factors of the operating cost in mind before doing a business as it has the potential to
generate higher profits for the firm and at the same time it can also damage the market value of
the firm if it is not assessed correctly. The firm that is London Gatwick Airport Limited employs
a team of experts so as to analyse its operating costs and if any rectifications are to be made it
can be done easily without any hassle. The operating cost of the company is around £350 million
for the year 2018 while it has reduces to around £340 million for the year 2019. As from the
above figures it can be easily seen that the company has done commendably well in bringing this
costs down and that has impacted its profits in a positive manner as the profits are increased
many folds. Whereas total revenue of the firm was around £750 million for the year 2018 while
it was around £810 million for the year 2019 and it can be seen from the above that the firm has
done exceptionally well in increasing its revenue and that has improved the efficiency and
effectiveness of the firm in the long run (Marques, Teixeira Brandão and Gomes, 2019).
4. Evaluation of the factors that are most influential regarding the airport group
For the company that is London Gatwick Airport Limited the most influential factor is
the aspect that was discussed in the third aspect as it has done commendably well in keeping its
operational costs lower that resulted in increased profits for the firm in the long run and thus it
has affected the overall working of the firm. As the company is one of the largest in the work as
it has captured the larger part in the industry (Nellthorp, 2017).
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CONCLUSION
Airport appraisal is an effective and efficient method of evaluating and analysing the
factors that affects as well as effects the working of the firm in the both positive and negative
aspect. From the above it can be concluded that the firm that is London Gatwick Airport Limited
has captured a large share in the market as it is well established since a pretty long time. Apart
from this it can also be concluded that the firm's revenues and profits are increasing and the costs
that are incurred keeps on reducing in the subsequent year and thus resulting in higher
profitability and growth for the firm in the long run.
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REFERENCES
Books and journals
Chilveri, P. G. and Nagmode, M. S., 2018, January. Proportional appraisal of access control
schemes. In 2018 2nd International Conference on Inventive Systems and Control
(ICISC) (pp. 1328-1333). IEEE.
Hin, H. K., 2020. Seaport and Airport Infrastructure Economics and Policy-a Singapore
Perspective. Partridge Publishing Singapore.
Iosifidis, F., 2020. Financial analysis and investment appraisal for a mountainous eco hotel.
Marques, N. L., Teixeira Brandão, L. E. and Gomes, L. L., 2019. The Rio De Janeiro
international airport privatization: a problem of overbidding?. Latin American Business
Review. 20(3). pp.249-268.
Nellthorp, J., 2017. The principles behind transport appraisal. The Routledge Handbook of
Transport Economics, pp.176-208.
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