Management and operation of Abu Dhabi and Singapore Airport - Research Paper Example

Management and operation between Abu Dhabi Airport and Singapore Changi Airport Table of Contents Introduction 3 Background/History 4 EGSOP 5 Issues/problems 7 Discussion 8 Way forward 8 Conclusion 9 References 11 Bibliography 12 Introduction International Airport of Abu Dhabi is situated in the capital of United Arab Emirates. This airport ranks second among all the airports in UAE catering to over ten million passengers. The airport is recognised for its fast growth and it is one of the world’s top growing airports. The number of passengers has been increasing in large proportions over a small period of time, in terms of the increase in airline companies that are operating in the airport and also in terms of the development of infrastructure at a very fast pace. The airport is on an expansion mode and is undergoing a project worth twenty-five billion AED. As per statistical records, as many as fifty-three airlines companies has operated out of the Abu Dhabi International airport and has catered to eighty-five destinations in approximately fifty countries (Jodidio and Andreu, 2004, p.254)1. In comparison, Singapore Changi airport forms the major aviation hub of South-East Asia. The Singapore Changi airport is situated in Singapore and is operated by the Changi Airport group. Several airlines use this airport as its home base namely, Singapore Airlines, Silk Air, Jet Asia airways, etc. The airport caters to over sixty million passengers who are served by about one hundred airlines companies all over the world. The airport operates slightly more than six thousand flights per week which reaches out to two hundred and twenty cities in about sixty countries and territories all over the world. The Singapore Changi airport contributes a major share to the economy of Singapore (Oxford Business Group, 2007, p.165)2. Description: Background/History As a business goal, Abu Dhabi International airport authority associates largest importance to the experience of the passengers who pass through their terminals. The fast growth of the airport is based on connecting people to their destinations with smoothness and utmost comfort and making their journeys relaxed and enjoyable. Abu Dhabi International airport attaches high importance to their technological advancement in operations and management of flights backed by the highest internal safety standards. Since its inception in 1982, Abu Dhabi International airport is owned by the Government of Abu Dhabi. It is operated by Abu Dhabi Airports Company since 2006 that has been given the task to enhance smoothness of operations and comfort of the passengers giving them a lifetime experience. The airport operates seven days a week and twenty-four hours a day. In order to accommodate more passengers in connecting east to the west, several projects are underway in support Abu Dhabi International airport to reach world standards (Christensen, 2010, p.27)3. The airport has several accolades of international repute over the years, namely Skytrax Best Airport Award in 2011 where it emerged as the second ranked airport in terms of performance in the middle-east. The airport is committed to international standards of safety for its passengers and thereby developing a long-term relationship. The runway for example is qualified for operation with minimum visibility of 125 meters thereby reducing delay of flights due to adverse weather conditions. The airport has three terminals which have developed as part of their expansion (Mostyn, 1982, p.14)4. On the other hand, Singapore Changi airport started its operation since 1981 and has come a long way since its humble beginnings. The airport is located on a site of thirteen square kilometers area and forms the largest aviation hub of middle-east. The airport is operated by the Changi Airport group who has transformed this airport into one of the world’s best over thirty years. The airport is the seventh busiest airport in the world (Usa Ibp Usa, 2009, p.64)5. It has been recorded that a flight lands into the airport or takes off every 100 seconds. The airport serves as the stop-over point between Australia and Europe. The Singapore Changi airport has 330 retail stores and 120 retail outlets which make it a great place for shopping and dining as well. The airport is committed to safety and comfort of passengers in bringing them together and fulfilling their aspirations. The Singapore Changi airport has 400 international accolades to its credit. Among those are 23 awards for best airport category in 2011. The airports efforts to reduce the effects of ageing involve up-gradation of facilities and structure of new buildings at periodic intervals (Wildcat Publishing, 2010, p.154)6. EGSOP The key points that are covered under this section are comparative studies of the two airports in respect of their environment, governance, strategy, organization and performance (Thomas, 2009, p.147)7. The environment at Singapore Changi airport is such that it will keep the passengers smiling in the interval between the arrival and departure. The Changi airport group proudly manages the facilities for dining and shopping for passengers, hold events and promotions, customer centric initiatives like availability of wheel chairs or priority queues for pregnant women, strollers at check points and exit, internet and business services, recreation and relaxation facilities like sight-seeing facilities for longer transits, availability of home theatres and movies, entertainments, etc. All these produce a world class environment and even customized for the passengers. The governance and strategies for management and operations are undertaken by the Changi Airport group with a goal for excellence and sustaining benchmark standards for customer service. The corporate structure of the group is split into six divisions namely the air hub development, airport management, commercial, corporate, finance and the international division. Talking about their operations, the air hub development team focuses on developing the airport as the aviation hub of the world. The airport management team takes care of the operational aspects, the infrastructure and the safety and security of the passengers. The commercial department oversees the maximization of revenues like the management of shops, advertisements, timely collection of rent in rentable areas of the airport, etc. The corporate division takes care of the corporate functions like corporate communication, development of overall strategy, legal issues, interface with the government, etc. Finance group deals with the management of assets and their expenditures and implementing cost effective financial strategies for growth. The international group plays the role of both investor and manager of operations of airports all over the world. The Singapore Changi airport has three terminals. The Changi airport ended the financial year of 2011-12 with strong result of operating profit and net revenue. The number of passengers grew by 12% as compared to last year, the net revenue grew by 22.4% and the earnings before interest and tax grew by almost 50%. On the other hand, passengers of this airport grew by 18.9% in the financial year of 2011-12 as compared to last year. The aircraft movements increased by 7.9%. The revenue earned by the Abu Dhabi International airport grew by 24 % in 2012 as compared to last year result in the growth of its earnings before interest and tax. This makes it fastest growing airports in the world. The benchmark performance of Abu Dhabi International airport is backed by its corporate goals, strategic decision of the management and creating an environment of comfort and safety for passengers who pass through their terminals. By connecting to the free wireless network, the passenger can stay in touch with their acquaintances through mobile or internet. The airport provides options for currency exchange. This is supported by ATMs at all the three terminals of the airport, branches of local and international banks. In order to assist medical emergencies, pharmacies are available at the airport. World class toilets, showers, porters, trolleys, baggies are there to the delight of the passengers. Separate spaces are available for smoking, prayer rooms, playing areas of children. Post offices are also available. All these create a friendly, comfortable, relaxed and happy environment for the passengers. The world class environment is ensured by the Abu Dhabi Airports company who operates the airport (Warren, Tettoni and Invernizzi, 2000, p.157)8. The company is headed by its five boards of directors. The company has created a pool of seven diversified business groups who supports the growth and development of the airport. These groups are Abu Dhabi Airport Services who looks into passengers and aircraft handling services. Abu Dhabi In-flight Catering, Abu Dhabi Cargo Company, Abu Dhabi Duty Free, Abu Dhabi Hospitality Company, Skycity are the other six groups and Gulf Centre for Aviation Studies. Issues/problems Foggy mornings in UAE disrupt flights in the morning. It has been reported in the past that around sixty flights were delayed or cancelled from destinations such as Austria, Switzerland and India. The weather of UAE and increasing proportion of humidity in the region is likely to affect the schedule of arrivals and departure of flights in International Airport of Abu Dhabi. In Singapore Changi airport, a budget terminal was opened looking at the growth of budget airlines in Asia. The airport has decided to close this budget terminal for constructing a fourth terminal. Thos could lead to congestion of passengers as the outlet capacity has decreased in the seventh busiest airport of the world. Discussion Despite having the clearance to operate runways in low visibility as less as 125 meters, the International Airport of Abu Dhabi has not been able to allow landings due to morning fogs in the past. This indicates that the visibility during foggy mornings was reduced below 125 meters, thereby forcing the authorities to delay landings or departures. In Singapore Changi airport, the budget terminal was closed looking at constructing a fourth terminal for catering increasing capacity of passengers. For these, proper management of air traffic and passenger facilities would be necessary. Way forward Being one of the growing airports in the world, Abu Dhabi International Airport in its way ahead need to take into consideration the issue or problems that are affecting their venture of providing enhanced customer experiences to passengers passing through their terminal. Appropriate strategies to combat these problems should be developed. In order to avoid foggy delays, the airport should strategize of using benefits of advanced technologies to reduce the qualified visibility limit or should think of ways of reducing customer inconvenience due to such delays. For this, the airport authority should plan in harmony with the airlines companies. The Singapore Changi airport being the seventh busiest in the world should look at option of increasing more of its outlets for catering to the demand of passengers and airline. All the departments of the group need to strategize an effective plan for growth in future (Ledesma, Lewis and Savage, 2003, p.614)9. Conclusion The Singapore Changi airport is the fastest growing airport in the world and the International Airport of Abu Dhabi is the seventh busiest and world class airport contributing majorly to the economy of Singapore. The two airports have different organizational structure with difference in approach for growth. However, they have a common goal of providing enhanced experience of passengers who pass through their terminals (Konick, Drolet and Girard, 2008, p.60)10. International Airport of Abu Dhabi is highly focused to their technological advancement in operations and management of flights without compromising on the highest internal safety standards and also providing the passengers with an experience of lifetime when they pass through their terminals. The airport has a unique feature of runway operation even at very low visibility and adverse weather condition in order to avoid delay in scheduled arrival and departures of the aircrafts. The airport has several accolades of international repute over the years, namely Skytrax Best Airport Award in 2011 where it emerged as the second ranked airport in terms of performance in the middle-east. The Singapore Changi airport is a major junction for travel between Australia and Europe. The airport is the seventh busiest airport in the world and attaches lot of importance and implements strategies for development of its infrastructure over the years. The airport encompasses major facilities of shopping and dining apart from hosting promotional event for attraction of passengers. Passengers all over the world crave to pass through the terminals for reaching their destinations. Thus two of the best international airports in the world have served to the delight of the passengers and enriched their journeys through world class infrastructure and service. References Christensen, S. 2010. Frommers Dubai. John Wiley & Sons; UK. Jodidio, P. and Andreu, P. 2004. Paul Andreu: Architect. 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