SPECIAL REPORT: SUSTAINABILITY
industry that almost never needed to calculate what changes had be made to maintain profi t margins and certainly never had to consider how to survive. But the global recession has changed all of this. In 2009, the UK’s
Opportunity knocks A
viation has experienced unparalleled growth over the last three decades and as a consequence, never really experienced the boom and bust cycles faced by other industries. The unprecedented period of growth resulted in an
Civil Aviation Authority (CAA) announced that passenger numbers had fallen back to 2004 levels and 2010 events such as severe winter weather conditions, strikes by British Airways cabin crew, the eruption of Eyjafjallajokull and most recently Ryanair’s decision to reduce its UK capacity have only added to the hurt. Passenger numbers are sure to recover in the coming years, even in
light of further tax pressures being applied. Indeed, ACI is already reporting signs of growth. Unfortunately however, Europe remains the area of weakest growth and this is likely set to continue for some time. Post recession, the industry looks very different. It has become very
clear that in this new climate, the aviation industry does not operate within a vacuum and some gateways, such as Coventry Airport, have been forced to temporarily close due to fi nancial diffi culties. Though daunting, this environment offers airport operators an ideal
opportunity to review their operating models to consider where improvements can be made, to not only increase profi t margins, but also to improve customer experience. And for many airport directors the current challenges in the market
offer the opportunity to make signifi cant changes for the better, and perhaps really change the face of how the industry in the UK operates. Improving the operating model involves considering how the airport’s
people, processes and systems all work together, and often, requires the removal of long held stereotypes in order to affect real change.
58 AIRPORT WORLD/AUGUST-SEPTEMBER 2010
future against a much more challenging economic backdrop. Some practical examples of the successes we have witnessed
are described below, although it should also be made clear that any change brought about must have the buy in of the airport team, and whilst some changes may not always be popular, it is critical to understand these changes in view of the wider economic climate and aviation industry. There has never been a better time to act upon the need to make our
airports sustainable for the future and the aviation industry should learn from those other industries that have long since had to deal with a fl uctuating economic environment. In other industries, businesses often start by addressing their
supply chain and the costs associated with it, in order to maximise profi t margins. This is a good starting point, and can offer signifi cant savings. However, rather than looking for simplistic and straight forward
McConnell Evans Aviation’s Karen Ingledew and Robert Trafford consider ways of safeguarding the long-term future of the UK’s regional airports.
The regulatory environment of aviation, although critical in the
consideration of any change, should not be a barrier to ensuring an airport is fl exible and, most importantly, run as a profi table business. Other industries have had to evolve such that profi tability and
service are the keys to success – and aviation should be no different. There are some regional airports in the UK where this ideology of
continuous improvement has already been employed, and employed for some time with great success. It is in these airports, where we fi nd that senior management teams are always looking for the next challenge in order to strengthen their business and offering to their customers. They view their airports as businesses, and businesses that should
be profi table – regardless of market conditions. Annual reviews of all business areas are commonplace, and whilst safety and quality are paramount, there are no barriers to considering how the business can be made more profi table and sustainable for the future. It is our belief that it will be these airports that will fl ourish in the
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