As Flights Decrease, Airports Look for Alternative Revenue Sources


W


ITH THE ECONOMY CON- tracting, the nation’s airports are feeling the squeeze. Many airlines reacted rapidly: cutting capacity, eliminating routes and


services, reducing staff, merging and even closing down. Business downturns and consumer fears result- ed in the slashing of business and leisure travel, and air freight tumbled as well.


Although 2008 was a tough year, airports continue to plan


for the future. They have high fixed costs and a long-term out- look that has tomake capital investments evenwhile operating in an economic downturn. Their service commitment does not


It’s apparent (that) non-aeronautical revenue is king.


change just because there is a cyclical downturn. Even when short-term demand wanes, airports still have to ensure they can deliver service in the future. “Airports are facing a predicament: how to reduce operat-


ing expenses but still maintain service levels,” says Forrest Swonsen, Director ofAirport Systems and Services for Dallas- based TransCore Inc, a manufacturer of transportation-based RFID technology. “Finding areas of their operations that can operate more eff-


icently, particularly those with an attractive return-on- investment, is a priority. It’s apparent (that) non-aeronautical rev- enue is king,” Swonsen says. Ground transportationmanagement systems optimize an air-


port’s curbside use and control movement of commercial vehi- cles. Creating new or optimizing current revenue streams tied to a facility’s roadway real estate provides an almost immediateROI in technology, while sustaining long-termprofitability. With the increased emphasis on security, a commercial vehi-


cle system also can expedite access control for known and trust- ed vehicles.With accurate reporting and monitoring, the system can manage information for operator compliance and for regula- tory revenue reporting. Nine of the top 10 busiest airports use wireless communica-


tions systems or automatic vehicle identification (AVI) technolo- gy in some capacity.Whether installed at a major airport such as LosAngeles International, which handles more than 70 million passengers, or at a smaller airport such as inAspen, CO, which handles fewer than 500,000 passengers, airport operations con- stitute a particularly complex set of business rules. Although most passengers take for granted that a taxi, limo or shuttle bus will be waiting curbside as they dash from the air-


Continued on Page 26 24 APRIL 2009 • PARKING TODAY • www.parkingtoday.com Airport Shuttle is tracked by AVI at LAX.


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