AVM343 Airport Design and Planning: Financial & Marketing Strategy

Question 1

Select an international airport (any airport except Singapore Changi Airport, Hamad International Airport, Kansai International Airport, Incheon International Airport, and London Heathrow Airport).

Question 1a

Analyse the financial strategies of your selected airport using the most recent reports. The analysis should cover revenue streams, capital investment approaches, debt management practices, and key financial performance indicators, with appropriate visualisations.

(30 marks)

Question 1b

Examine marketing strategies adopted by your selected airport to attract new airline services or routes. Relevant sources and proper citations are required. Comment on the effectiveness of those strategies.

(15 marks)

Question 2

Select an airport that has yet to widely adopt Industry 4.0 technologies in managing its operations.

Question 2a

Indicate two (2) Industry 4.0 technologies suitable for implementation at this airport. In your proposal, discuss the expected benefits, potential challenges in implementation, and strategies to cope with these challenges.

(10 marks)

Question 2b

Discuss how such technologies will impact the current design and/or operations of your selected airport’s components.

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Airport financial and marketing strategies

The airport selected for the purpose of analysis is Dubai International Airport.

Financial strategy analysis of Dubai Airport

An analysis of Dubai International Airport and its financial strategy indicates that the Airport has diversified revenue streams which includes aeronautical charges, property leases, parking fees and retail concessions. The airport performs capital investments on a regular basis with a view to upgrade and enhance the airport infrastructure such as terminal expansion, technological upgradation etc, and this is mainly funded through long term bonds, private partnerships as well as government funding. The KPIs include retail revenue per passenger, passenger yield and operating cost ratio.

Marketing strategies of Dubai Airport

There are a wide variety of marketing strategies adapted by the airport including cooperative marketing, partnerships with tourism boards, digital marketing through campaigns, global branding etc. These strategies are quite effective from the point of view of promoting Dubai International Airport as the premier airport offering higher connectivity, best services and expansion of new routes.
Industry 4.0 for a non adapting airport: The airport that has least consideration of industry 4.0 adaptation is Kathmandu airport.
Two suitable technology strategies: The two suitable strategies include iot based passenger and baggage tracking and AI driven predictive maintenance. The benefits of having IOT for baggage tracking includes smooth flows, better operational visibility and less chances of any delays but it requires high installation cost and training to staff. The predictive maintenance through AI benefits in terms of fewer failure cases of equipment and lower maintenance cost but the challenge is with respect to data integration and technical expertise required to operate.

Impact on Airport design/ operations

As a result of consideration of IOT, the changes required would be in the form of redesigning the check-in security and baggage zones, as the need to include sensors and automated conveyors. AI predictive systems require modification with respect to maintenance scheduling, and improved asset lifespan.

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