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Tue, Sep 07, 2004

UK Airports Market Report For 2004 Published

Research and Markets publishes extensive analysis of the UK airport industry

Research and Markets has announced the addition of Airports Market Report 2004 to their offering.  This report provides an analysis of the UK Airports Market industry. Information provided includes:

  • Executive Summary
  • Contents
  • Market Definition
  • Market Size
  • Industry Background
  • Competitor Analysis
  • Strengths, Weaknesses, Opportunities and Threats
  • Buying Behaviour
  • Current Issues
  • The Global Market
  • Forecasts
  • Company Profiles
  • Further Sources

In 2003, the revenue generated by UK airports was GBP 2.44bn, an increase of 2.7% on 2002. This reversed the decrease of 2.6% in 2002, which was driven by the contraction in air traffic movements following the events of 11th September 2001.

Airports are part of the transport infrastructure, and support the flow of passengers and freight on domestic and international journeys. In the UK, the most important flow in terms of volume and revenue generation is that of international passengers. The location of an airport, and the destinations it serves, are the primary determinants of passenger choice. However, for many, there is no real choice of UK airport -- southeast England has the greatest selection, with five airports serving international destinations.

Airports generate revenue from many different streams, which can be broadly categorised into aviation and commercial revenues. The competition between UK airports is not intense, as passenger choice is based partly on location. However, they do compete on aviation fees to attract airlines to establish and operate new routes. This places an onus on airports to generate an increasing percentage of their revenues from commercial revenue streams, although this was severely undermined by the abolition of intra-EU duty free in 1999. Nevertheless, commercial revenues have continued to grow at a faster rate than aviation revenues, and represent more than half the revenues generated by airports. Some airports, namely Heathrow, Gatwick, Stansted and Manchester, have landing charges controlled by the Civil Aviation Authority (CAA) -- the UK's regulatory body for the aviation industry.

Demand for international passenger services is the primary driving force for airport revenues. Traditionally, passenger demand for international air travel has grown at a slightly higher rate than gross domestic product (GDP). There are many factors that dictate this trend. In particular, the liberalisation of the air travel market, the dismantling of international trade and people barriers, and the fall in the real cost of air travel are important factors. In the early 2000s, several major events adversely affected the demand for international air travel. These were the events of 11th September 2001, foot-and-mouth disease in the UK, severe acute respiratory syndrome (SARS) and the war in Iraq. Nevertheless, the demand for international air travel both into and out of the UK has continued to grow, driven partly by the growth in low-cost airline services.

BAA, which dominates UK airport ownership, is the largest airport operator in the world, with ownership, management and contractual interests in many overseas airports. In the UK, the company's revenue accounts for over three-quarters of the total revenue generated by UK airports. The Manchester Airport Group (MAG) is the second-largest airport owner in the UK.

Between 2004 and 2008, terminal passenger demand at UK airports is forecasted to increase at the lower end of the latest national air traffic demand forecasts. Over the 5-year period, passenger demand is expected to rise by 18.5%.

FMI: http://www.researchandmarkets.com/reports/c4541

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Research and Markets has announced the addition of Airports Market Report 2004 to their offering.

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