TY - JOUR
T1 - Analyzing the Financial Impact on Airports of Remote Airport Ground Transportation Terminals
AU - Mundy, Ray A
AU - Langley, C John
AU - Ward, Timothy D
N1 - Airline deregulation in the United States has had a significant impact not only on the airlines but also on the airports that facilitate air travel. Airline "wars" and competition have received considerable attention, but little has been written on competition among airports for airline travellers.
PY - 1986/1/1
Y1 - 1986/1/1
N2 - Airline deregulation in the United States has had a significant impact not only on the airlines but also on the airports that facilitate air travel. Airline "wars" and competition have received considerable attention, but little has been written on competition among airports for airline travellers. Recent steep discounting of fares between major airport hubs and the withdrawal of major carrier service from many smaller airports has led major airport hubs to expand their geographic base, drawing patrons away from smaller airports nearby (50 to 100 mi). This trend has had obvious negative effects on the smaller airports and positive benefits on the more fortunate, larger hubs, which now enjoy greater revenue from additional patrons. In addition, an upward spiral effect is evident when airlines view the hub as a larger market and add additional or more direct flight service. This only accelerates the move away from smaller airports. Seeking to provide service and profit from this national trend, airport ground transportation operators, airlines, and airports are looking at remote ground transportation terminals in distant cities as a means of facilitating this long-distance traffic and increasing its potential. Some airports are motivated by the obvious financial gain, but others are especially hard pressed to provide roadway and parking space for the private vehicles emanating from this new passenger influx. Remote terminals, however, may have negative financial impacts in the form of lost parking and car rental income. Therefore, a methodology for analyzing the potential market for remote airport ground transportation terminals and their financial impacts is presented in this paper. The methodology is explained through the actual data used in an analysis for the Detroit Metropolitan Airport.
AB - Airline deregulation in the United States has had a significant impact not only on the airlines but also on the airports that facilitate air travel. Airline "wars" and competition have received considerable attention, but little has been written on competition among airports for airline travellers. Recent steep discounting of fares between major airport hubs and the withdrawal of major carrier service from many smaller airports has led major airport hubs to expand their geographic base, drawing patrons away from smaller airports nearby (50 to 100 mi). This trend has had obvious negative effects on the smaller airports and positive benefits on the more fortunate, larger hubs, which now enjoy greater revenue from additional patrons. In addition, an upward spiral effect is evident when airlines view the hub as a larger market and add additional or more direct flight service. This only accelerates the move away from smaller airports. Seeking to provide service and profit from this national trend, airport ground transportation operators, airlines, and airports are looking at remote ground transportation terminals in distant cities as a means of facilitating this long-distance traffic and increasing its potential. Some airports are motivated by the obvious financial gain, but others are especially hard pressed to provide roadway and parking space for the private vehicles emanating from this new passenger influx. Remote terminals, however, may have negative financial impacts in the form of lost parking and car rental income. Therefore, a methodology for analyzing the potential market for remote airport ground transportation terminals and their financial impacts is presented in this paper. The methodology is explained through the actual data used in an analysis for the Detroit Metropolitan Airport.
UR - https://trid.trb.org/view/283793
M3 - Article
JO - Transportation Research Record
JF - Transportation Research Record
ER -