Advantages of Secondary Airports - Case Study Example

Secondary airport options for South East Queensland (SEQ) Student name: Student No.: Lecturer: Degree: University: Faculty: Date of Submission: Table of Contents Table of Contents 2 Introduction 3 Analysis of the brief 4 Stakeholder identification 5 Need analysis 11 Expansion of the Domestic Terminal 11 Primary attributes for the proposal 14 Distance 15 Federal law 15 Stakeholders 15 Identification of analogues 15 The context 15 Stakeholders 16 Limitations 16 Recommendations 16 Conclusion 16 References 18 Introduction Traditionally, regional planners in aviation focused on primary airports. Due to the increase in market demand to rise and improve transportation services in aviation sector, there is need to focus on secondary airports. Considering the size of Brisbane Airport, and the increase in number of the passengers flowing in and out of the airport, there is a need to expand the airport service capacity. This has triggered the need to develop a new airport at Toowoomba or an option to expand the Gold Coast airport or Sunshine Coast airport. These options must be met under the agreement of the stakeholders and position of the airport from Brisbane Airport, which will trigger increased services at manageable levels. Considering the distance approximations from the Brisbane Airport to Gold Coast airport, it is 108 Km, which can take, approximately 1hr 15mins drive, but with the current traffic, it can take 1 hour 18mins through pacific motorway. Distance from Sunshine coast airport, is approximately 109 Km, which can take 1 hour 12 minutes drive. The third option is development of a new airport at Toowoomba, which is 139 Km from Brisbane, and 1 hour 46 minutes drive. As much as Brisbane has options to consider, distance should be a priority in its plan to allocate the location of the airport extension. Therefore, with the consideration of the stakeholders, it is necessary to plan on the appropriateness. Analysis of the brief With new reforms from the federal government to reform the aviation transport sector, Brisbane Airport has been recommended as the center of aviation transport in Queensland. This has triggered the need to expand the airport to accommodate the required volume of increase. Therefore, there have been discussions to increase the size of the airport, which have been thwarted by the challenges from the public as well as the land issue. Thus, Brisbane has been given three options to consider when planning expanding the airport to the required size. They are required to consider a new facility in Toowoomba or Gold Coast or Sunshine coast as the only options. A number of factors that has led to the options have caused this; Increase the volume transport sector in aviation sector With the increase in passengers in the aviation sector, there is a need to increase the volume that the airport can accommodate. In addition, there need to develop cheaper terminals to enhance more consumers that would provide cheaper tickets. In Queensland, the increase in international flights at gold coast is a clear indication that the aviation transportation sector has increased. Considering the distance from Brisbane airport, which just 108 km through pacific highway, and even lesser to 80 km to through other routes. Thus, this increase in demand for international and local aviation transport has brought about the increase in demand to expand the airport area. Land issue The area around Brisbane airport is inhabitant by tenants. Therefore relocating these people is a barrier to have permission to expand the airport. Therefore, the federal government has given the airport management other options other than expanding the airport within its location. This way the airport will have a chance to construct a secondary terminal at a different location that can serve its customers. International flights to Tokyo, Japan, Osaka, and Kuala Lumpur can be served from this terminal. Currently, anyone who knows about the location of the airport will comically tell you, the area is inadequate from expansion. Thus, the issue concerning the land area is strategically complicating the expansion of the airport. Politics Most of the times, political voter backlash causes mayhem in the aviation transport sector. Therefore, locating the terminal at a distance from the locals serves as an option to lower conflicts that may arise in case there is political misunderstanding (Mitchell, and Wood, 1997, 801). In addition, the management system from the airport has political conflict in the managerial positions. Thus, taking an option away from the airport to construct a terminal would enhance proper channels in management. Stakeholder identification With the airport functioning as part of public utility, there is a need to have an inventory of stakeholder’s analysis and their main objectives as required to create a basis that will constitute the performance of the airport. Any group that will affect the growth and development of the secondary terminal airport for Brisbane airport is part of the stakeholders (Kaufman, R. & Watkins, R. 2002, 22). The stakeholders will be determined by either those who can affect or be affected by the move to construct a secondary airport to Brisbane to achieve its objective in expanding the transportation sector in aviation. A comprehensive list of stakeholders for Brisbane airport is as indicated in table 1. Stakeholder group Function and effect to the airport expansion Air carriers Increase in generated income to the airport Passengers Increase in airport development through encouragement from the experience Air organization Provide support and ensure increased support to develop the airport Investors and bond-holders Determined to get more bonuses from the returns General aviation users Concerned about their safety as well as their well being Employees Concerned about their job security Stakeholder analysis and definition of the goals It is important to have a precise analysis and definition of the stakeholder’s goals to ensure proper examination of their role in the airport. This section will focus on the stakeholder examination on their role in the airport’s development and through operations 1. Passengers Airport is a transmission ground between the air and ground transportation for the passages or a connection to another flight. Passengers have different categories as analyzed below a. Originating passengers b. Arriving passengers c. International passengers d. Shuttle/commuter passengers e. Transfer passengers f. Local passengers In the airport, a passenger type is not mutually exclusive of any type, but they can in more than passenger type. Further, he passengers can be classifies as belonging to different classes as business travelers or leisure/tourist passengers. 2. Air carriers These are the service providers from air transportation in the airports. They include cargo and passengers, which are classified into three subcategories. a. Large certified carriers: they have certifications to carry up to 60 or more passengers, payload that is equal or greater than 18,000 pounds, or can participate in international operations. b. Commuter carriers: they work as air taxis and they have a published schedule to operate in at least five rounds in a week between two airports. c. Small-certified carriers: these carry less than 61 passengers and less than 1800 pound of their cargo. In addition, they do not participate in international operations. 3. General aviation users These cover many areas of aviation that is outside the definition of the air carrier, they include a. Taxi operators b. Flight instruction c. Aircraft rental d. Business e. Aerial application f. Corporate-executive transportation g. Aerial observation h. Pleasure These serve as main access point to the national air for the transportation system that provides available and top potentialities in the conditions provide in the services and instrumentation. 4. Airport organization This can comprise of different individuals, appointed by either the local government or constitutional plan in the airport. In larger airports, they use a common plan in the organization to use detachment of the operating units with different staff operations, which have varying responsibilities in the development of the infrastructure. By studying the airport’s strategic plans and interviewing the airport management experts, it is possible to derive the desired goals for the development and success in the airport’s management goals. With the airport’s main objective to ensure that customers get access to quality services, the airport organization would ensure that they meet these goals to provide high operational efficiency and top financial performance for the airport. 5. Investors and bond-holders A higher percentage of the airports revenue debt is revenue bond. This is the revenue generated from the airport operations and does not include the sources from the government funding. The ratings for these investments are based on the rating agencies that cause changes in interest rates as well as terms there in., including: a. Passenger growth b. Portion of destination and origin traffic c. Projected and historical growth in population d. Projected and historical expansion and mix in employment e. Utilization trends in the airport f. Carrying cost and debt burden 6. Concessionaires Airport concessionaires control passenger operations in terminal constructions and may include beverage and food services, hotels, and retail services. Concessions operators wage the airport system a defined yearly fee and/or a share of saleses (Fletcher, A., et al. 2003, 505). Looking at the concessions dealers’ objective of increasing profits, the objectives of the airport as regard to these dealers are derived to be raising passenger masses and lowering the monies that are paid to the airport system. 7. Service providers Personal operators that extend services to air carriers as well as general aviation users privately own the providers of the services. Self-governing operators may provide these services (e.g. defined-base operators, DBOs), but these services may range to different levels and be provided by the airport operators or another airline cab provide the same services. Such service providers may include: a. Interior aircraft cleaning b. aviation fuel and oil supply c. Baggage handling and sorting d. Water and Toilet service e. Loading and unloading the aircraft f. Catering transport g. Passenger transport to/from remote stands h. Inspection in the airport i. Aircraft de-icing j. Information services a. Cargo and email handling b. Supervisory and administrative duties 8. Employees The employee class may include direct employees that belong the airports system and employees of other operating companies at the airport, which may include concessions operators. Other employees are organized to form unions set to serve them and unite them. Formation of these unions ensure that they have better services and good term, wages and benefits in the airport employment. 9. Federal government The federal government takes part in the airport organization in three dissimilar roles: As a payer of the bills, as a regulator, and an operator. The FAA governs the Airports Improvement Program (AIP), and the Airport and Airway Trust Fund provide its main financial support. This, funding is in turn paid by the fuel and fees taxes. AIP finances can be utilized toward projects that relate the development of the airports such as extension of the airport, extension of the runaways and any other services that the airport may deem necessary to improve. Airports must join the National Plan of Integrated Airport Systems (NPIAS), to be at a position to quality for the funding, which enforces demands on the airport to be compliance with legal and financial issues. 10. Local government Queensland local authorities have their part to play in the development of the airport. This is necessitated by many factors that the local government must collect revenues that they will need to fund the federal government (Hein & Tziola., 2011, 225). Moreover, the development of the airport to expand the service delivery for the Brisbane airport is part of the local government to issue the license to proceed with the construction. 11. Locals As much as the airport organization is ready to work as per the federal government issue to expand the airport, the locals living around the airport have a say in whether the development would continue or not. This is to mean that the locals cannot accept to be relocated by the airport. In addition, there is the issue of noise in the airport construction; this would further become an issue to the local, as they do not need to be disturbed. Need analysis Brisbane airport serves as the sole passenger airport in Brisbane, Queensland, and serves as the third busiest Australia’s airport after Melbourne and Sydney airports. Considering the many awards worn by Brisbane airport, it has served about 46 domestic destinations in all territories and states with 32 international destinations. Brisbane airport serve as the major hub for Australia virgin and secondary hub for Jetstar and Qantas. With the many routes that the airport serves, it is rated as the world’s twelfth busiest air route, and in the Asia-pacific region as the seventh. Brisbane airport has both domestic and international terminals for passengers, with cargo terminals, two runways and a general aviation terminal. With the recent honor in 2013 given to the airport as the world’s 21st best airport, all terminals need expansion to increase its transportation volume. Expansion of the Domestic Terminal The expansion of the domestic terminal is a two-stage upgrade that must be met to serve the domestic passengers. For the airport to serve its passengers adequately, it has been given an option to run an upgrade in a different location that would see its improvement for the passengers. Therefore, terminals build to the nearest airport, as Gold coast airport will serve the domestic transportation with ease. New parallel runway With the federal government approval for the construction of a new runaway, the project would generate more than 2700 jobs, which will cost about $ 1.3 billion to complete the runway. Due to controversial politics, the federal government to a different location for construction has rescheduled the construction of the runway. Therefore, this report determines the best place that the airport expansion is best fit in Queensland. Thus of the three places given for the construction of the terminals the airport should consider Gold coast airport expansion since it is near the Brisbane airport. This would ensure smooth operations from Brisbane to serve its clients. Figure 1: Gold coast to Brisbane airport (extracted from Google maps) As the map fig 1 shows, the distance from Gold coast to Brisbane airport is reasonable. Other areas to consider for expansion are, Toowoomba and Sunshine coast airport, which are given in fig 2 and 3 respectively. Figure 2: Toowoomba to Brisbane airport (extracted from Google maps) Figure 3: sunshine Coast to Brisbane airport (extracted from Google maps) Primary attributes for the proposal The major attributes that has caused the development of the proposal include Distance Primarily, the distance from Gold coast to Brisbane airport is considerably less compared to the other two options from Toowoomba and Sunshine coast. Therefore, it would be convenient to serve the clients from a close proximity to the airport, which would ensure the airport maintains its quality services. Federal law With the federal government issuance of reforms to expand the airport, they have provided three options that are open for expansion of the airport. Thus, considering a close region to the airport is the best option, which will maintain the customer relation to the airport operations and services. Stakeholders Stakeholders will have to determine the major issues that will lead to selection of the optional expansion terminal for the airport (Savage, & Whitehead, 1991, 63). This in line with the operations and service that they expect from the extension terminal to be build. For instance, the passengers prefer a close distance of relocation to the main airport, Brisbane. Identification of analogues With the need to expand the airport, consulting is the key factor in different scenarios: The context The airport expansion has been instituted by the federal government, which calls for service of duty. Therefore, given such a task would be necessary for the airport management to honor the airports position is the aviation transportation sector. In addition, it is the duty of the airport to serve its clients satisfactorily and ensure that they meet the client demands to maintain its status. Stakeholders Stakeholders make key decisions in the aviation transportation sector. Thus, as passengers are part of the stakeholders, they have provided adequate response, which approves their satisfaction to expand Gold coast airport as an expansion terminal for Brisbane airport. In addition, Brisbane airport receives a higher consideration from the stakeholders as offering quality services. Limitations Major restrictions that occur in this case are those that pertain to flight restrictions for different airports. For instance, the Brisbane airport management will have to consult with the Gold coast airport management to have a consensus on how to run the operations in the expanded terminal. Further, the luggage carrier for the passengers might be reduced to fit the restrictions that govern Gold Coast airport rules. Recommendations It is recommendable that the airport management to consider the distance to and from Brisbane. In addition, there is a need to consider opinion from the passengers, and other relevant stakeholders who bring revenue to the airport. Conclusion In planning to relocate and build an airport extension, it is necessary to have services that fit the client’s demands. Thus, with federal government issuing reforms to Brisbane airport to expand its operation terminal, it is necessary that the major stakeholders be consulted. Consulting with the stakeholders is key factor that determine the allocation and success of the project. Brisbane key stakeholders in this project are the passengers, the local government, the federal government, the air carriers, and the employees, who must be considered when planning on the expansion. With the limitations that the development plan might encounter, they have the possibility to maintain the airport’s status by making the best choice and selecting the expansion plan to be done in the Gold coast airport. In addition, location at which Gold coast airport is provides the ample service options to their clients. References Book and journals Harris, C., 2002, Hyper innovation: Multidimensional Enterprise in the Connected Economy, Macmillan, Palgrave. Fletcher, A., et al. 2003, "Mapping stakeholder perceptions for a third sector organization." in: Journal of Intellectual Capital 4(4): 505 – 527 Mitchell, R. 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