SPECIAL REPORT: SUSTAINABILITY
reductions in prices, we often fi nd that the most success can be achieved by looking again across the whole business and the way in which the business is structured. For example, many airport engineering teams outsource a
percentage of works either due to lack of skill within the team or, more likely, available resource to complete works. Where resources have been cut to such a level that there is no option other than to heavily rely on external contractors, this may well be a false economy. By reviewing the entire operation again, one may fi nd it makes
better sense to buy in the expertise in-house. It might prove more cost effective and operationally effi cient, for example, for an airport to have its own plumber rather than outsourcing the work to a contractor. It is this mix of in-house and outsourced provision that is worth
considering carefully when looking to maximise effi ciency. Challenging the status quo can often prove very benefi cial, although admittedly takes time and effort to achieve. The overriding theme in our projects, is often about challenging the
way thing have always been done and taking the time to understand why things are the way they are. For instance, we often start by addressing how resource is balanced and planned in operational teams between landside and airside operations. Is the view that both are treated separately with distinct teams? Do
airport duty managers preside over both or is there another way of balancing resources? This is not to say that any one particular operating model is better than another, but critically job descriptions rarely refl ect the actual tasks performed, and in order to make effective and lasting changes, one must truly understand the business tasks and reallocate those tasks. A full review is always more effective than just merging some tasks together or slightly altering one department. With any organisational change programme a strong and capable
Human Resources (HR) team is critical, whether they be found in-house or are brought in as external advisors. In our experience they are often the key to whether an organisational change project succeeds or fails, not only because of the advice that they are able to offer, but also they
often drive the willingness to be able to actually implement the change as well as just design it. Of course not all change should be about simply cutting costs to
increase profi t margins. A critical element of airport revenue is non-aero income such as car parking and retail revenue. Most regional airports appreciate the importance of these areas, but often resource is focused on ensuring that the operational elements of these functions run smoothly. Whilst this is obviously critical, it is important that time and effort is also spent to ensure revenue can be maximised. Yield management of car parking spaces has become ever more
important as consolidating companies have taken a greater market share. Equally, as more and more airports move to take their retail offerings in favour of airside rather than landside spending, it is important to understand what benefi t this offers. For example, what is the fi nancial impact of opening another security
lane on retail revenue versus the costs incurred by opening that lane? The most commercially aware airports will know what the value of each minute a passenger spends airside before boarding the plane is, and can use this to maximise retail revenue against operational cost. There are, of course, many ways in which changes can be employed to help maximise an airport’s profi tability. The critical factor though is harnessing a willingness to review one’s airport and then actually delivering real change for the better. So often we have witnessed outstanding ideas to improve profi tability be left incomplete because of a fear of the regulatory environment and a lack of urgency to deliver. The airports of the 21st century unfortunately do not have the luxury of
continually increasing passenger numbers and thereby revenue. The aviation industry has changed, and the way in which an airport is operated must change with it if it is to survive – particularly, smaller regional airports, where such a large proportion of their costs are fi xed such as Rescue and Fire Fighting Service (RFFS) and Air Traffi c Control (ATC). These challenges should be embraced not feared and seen as an
opportunity to create a truly profi table business that is sustainable for the foreseeable future.
AIRPORT WORLD/AUGUST-SEPTEMBER 2010 AW 59
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