Sample Aviation Business Plan Paper on Airport management

Airport management

Introduction

The manager of an airport in the contemporary society must be a skilled in all aspects of management in the aviation industry. It is no longer necessary that the manager be a pilot but any person with the skills of management and some knowledge of the aviation industry can be a manager. The primary duty of an airport manager is the safe and efficient operation of the airport and all its facilities regardless of its size (Marian, 2012). The size of an airport and the services it offers play a crucial part in determining the airport manager’s specific duties. A manager of an airport must secure new business, enforce regulations, make provisions for handling spectators and passengers and see that the airport is adequately policed and that airplane and automobile traffic is regulated. The manager also interprets the functions and activities of the airport to the city or other local government and to the public; he or she is a public relations expert as well as a business manager. This essay is my strategic plan for a small airport which I have been appointed as the new manager.

Values to guide the success of the airport

As an airport manager I will make sure that the values are consistent with the mission, vision and objectives of the airport. Quality, value, brand and fair pricing are essential components of a successful developer model for effective airport management (Knight, 2009).  The values of the airport will be those which are consistent with the culture of the airport that exists and those of the community where the airport is located. Airports have to look at value creation because investors don’t invest in airports just for the sake of it but they expect a return on their investment and they expect its value to increase (Paylor, 2015). Some of the values that I will use to guide the business of the airport include; customer satisfaction, effective service delivery, integrity, honesty, sincerity, ambition, independence, obedience, imaginativeness, courageousness and competitiveness.

The look of the airport

The airport will be a strategic place which will be few kilometers from the main road so as to that passengers which arrive at the airport can easily access other means of transport, for instance, the road so that they can safely arrive at their destinations. The airport will also not be so near the road to ensure minimal interference to the activities of the airport. A number of activities and infrastructures such as retail and distribution centers, light industrial parks, office and research parks, districts zoned for specific purposes, foreign trade zones, entertainment and conference facilities, and even residential development contributes substantially to the competitiveness of a firm (Flores-Fillol, Garcia-López, Nicolini, 2016).

Assumptions about the external environment

Several assumptions about the environment will be used in the formulation of the strategy of the airport. Regulation is the first assumption of the environment that will be used to underpin the airports strategy. Regulatory issues that exist in that environment especially those that are related to the environment will be essential in coming up will the strategy of the airport. The different regulations that have been put in place by different organizations will be my guiding principle. The economy of the city and other areas around will also be essential in the airports strategy. The economic activities that take place around the airport will help in determining the potential customers that we are likely to serve.  The resources that are available are also crucial because they will be needed in the expansion of the airport. The airport will use the latest forms of technology to coordinate takeoffs and other activities around the airport so as to improve service delivery.  Landings of planes will also be coordinated by modern technology which will aid in the reduction of congestion. Other airports around are our main competitors, the airport that I have been chosen to manage will look at the gaps that exist in the services that are provided by the competitors and capitalize on that to win more customers. The market forces in the region will also be crucial because they will help to determine the types of services that are most needed by potential customers.

Services offered

The airport will offer services that are offered by most airports, for instance, airport with commuter airline service. The airport will also transport cargo from one location to another, a service that is not offered by our potential competitors. The airport will invest in technology and will be able to accommodate multiple landings and take offs within a short period of time. The airport will also have an Airspace Lounge which will have a post-security space separate from the airport concourse where passengers will be able to relax and access a number of basic necessities like Wi-Fi. Security of passengers in the airport is regarded as one of the aviation industry’s most prevalent safety initiatives (Robertson, Harrison, and Ruiz, 2014).

Criteria for accessing new services

The airport will base on its mission, objectives and values to access a new product and service so that the new product and service is in tandem and does not conflict with the values and mission of the airport. The main competitors of the airport especially those firms that are near and offer the same services will also be used as a guide to access a new product ands service. The performance of a new product and services in other airports will be used to access the viability of the new product or service in our airport.

Groups that will be served by the airport

The airport will serve people from different backgrounds and cultures and participate in other activities to benefit them. The airport management will organize activities that will benefit other groups like charitable organizations. This will ensure that we fulfill our social responsibility to the larger society and the communities in which our airport is located.  We shall engage in charitable contributions, community service, sponsorships other activities that will benefit the larger society. For instance, we shall budget and set aside a fund which will be able to cater for the education of bright but needy students who come from the community that lives around the airport. The airport will also ensure that problems are met head-on, with full and explicit information made available to the public to prevent misunderstanding.

Criteria for a new market opportunity

 A new market opportunity will be evaluated by looking at the costs and the benefits that come with such an opportunity. An opportunity that is able to generate large profits for the airport with fewer costs will be the most viable. In addition, an opportunity that gives our airport a competitive advantage over other airports around will be more appropriate. Such an opportunity should either be a novel idea that has not been exploited by our potential competitors or that which has been exploited but has not been offered to our potential customers in the best way possible.

Meaningful factors to the airports customers

The airport will strictly adhere to the pricing that has been set by that authority that has been mandated by the law to do so. Our prices will be pegged on the services that are provided because will shall treat each of our customers based on their desires. Our airport shall use street pricing so that it is in tandem with our management programs. International Aviation authority is working with its business partners to help alleviate the financial stress they are experiencing due to congestion is most airports (O’Malley, 2009). The airport will employ the latest technology to ensure that congestion is reduced in the airport.

Competitive advantage

Many factors in and outside our airport will act as our competitive advantage over other airports that are around. The location of our airport is at a strategic place where our passengers cab easily accesses other means of transport like rail and road transport. The airport is also located in a very large piece of land which is crucial because it will allow further expansion if need arises. The existing tenants of our airport are people who travel on a daily basis because of the nature of their business. Existing tenants will also act as our competitive advantage because they will ensure the constant flow of business in the airport. Our airport is also able to accommodate multiple landings and take offs unlike other airports around because of the latest technology that has been used to develop our air traffic control system.

Current service that will get great emphasis

The airport will place great emphasis on the transportation of cargo which is a service that most of our competitors to not provide in an efficient way. Economic activities of most of our customers require them to transport products in and out of the airport and thus cargo transportation will be the activity that will, get great emphasis because of the gaps that have existed for many years in the provision of the service.

Financial and non financial measures to assess viability

Liquidity ratios, leverage ratios, activity ratios, profitability and performance ratios will all be crucial in determining the viability of cargo transportation over other services. These measures will be used to evaluate the costs of the service and compare them with the benefits that will be gotten from the service. If the benefits of the service outweigh the costs of the service then it will be the most viable for a small airport like ours. Non financial measures like aircraft operations, based aircraft, noise complaints and other measures will also be crucial in assessing the most viable services.

Strategy to be implemented

The airport will implement a strategy that embraces the latest technology to ensure that departmental goals, process goals, organizational design and management support the mission of an airport. The airport will put up new parallel runaways to facilitate electronically aided simultaneous takeoff and landing operations so as to ensure that service delivery is improved. This will help in the reduction of congestion in our small airport which has been the main obstacle in the provision of the best services for the past few years. The airport will also have transit centers which will also act as roadways to allow bus routes to transfer passengers in and from the airport.

Conclusion

The major requirement for the job of the manager of any business is the ability to make decisions and to work smoothly with many kinds of people. As an airport manager I will ensure that I have the requisite skills that are vital for the effective management of the airport.

References

Flores-Fillol, R., Garcia-López, M., & Nicolini, R. (2016). Organization of Land Surrounding Airports: The Case of the Aerotropolis. Land Economics, 92(1), 57-81.

Knight, M. R. (2009). Taking Flight: Airport Shopping and Dining: A Retail Evolution is Taking Shape in the Nation’s Airports. ICSC Research Review, 16(1), 37-40.

Marian, O. (2012). Some Issues of the Airport Management. Annals of the University Of Oradea, Economic Science Series, 21(1), 1027-1032.

O’Malley, C. (2009). Airport vendors hungry for revenue. Indianapolis Business Journal, 30(38), 1A.

Paylor, A. (2015). Airport appeal. Air Transport World, 52(11), 34-35.

Robertson, M., Harrison, B., & Ruiz, J. (2014). The Status of Safety Management Systems at FAR Part 139 Airports. Collegiate Aviation Review, 32(2), 51-65.

Appendices

Location of the airport

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