Airports and airlines have one of the most important, naturally symbiotic partnerships within the aviation industry. Airports exist mostly because of airlines, and our working bond must be trustworthy and strong. All commercial airports are tied in some way to the fate of the airlines they serve. The chicken in this analogy definitely came before the egg. However, within this symbiotic relationship is a business relationship first. Agreements between an airport and an airline not only establish the rights, privileges and obligations for each party, they also show that the airport operator and airlines have worked together to arrive at a commn business relationship to reach strategic benefit.
The old model of agreements between airlines and airports was good, but times have changed and
Mario Rodriguez is director of Long Beach Airport. With 25 years of experience in the aviation industry, Rodriguez has overseen airports from Kuwait to New Orleans. He currently serves on the board of directors for Airports Council International - North America, as well as several other aviation-related organizations. |
we as an industry must evolve. The model should change to access capital markets for development and reduce reliance on federal funds; create a more efficient and cost-effective organization; reduce political involvements in commercial and business decisions; and create a mission-focused organization.
A move toward privatization presents an important opportunity for the airport industry and is proven to work. One bold move will allow the operator to better control its own destiny.
Through increased privatization, the airport/airline relationship can evolve into a more logical relationship governed by the rules of reasonable business sense. Large airports are in a better negotiating position than small airports, as size indicates a large and economically powerful bargaining chip. The same holds true for large airline companies, which can almost dictate terms to a regional airport.
However, airports - no matter the size - can take a risk to privatize and in that risk also take back control. It is the operator's responsibility to look toward the future and protect its facility long after an airline ceases to exist or moves on.
Hubs in Europe, Asia, Canada and South America have already turned to a private model. Why should the United States trail in the effort? Americans should not misunderstand the model of privatization. It means freedom from an archaic system that inhibits common sense-solutions.
Airports often fall prey to situations in which heavy dependence on an airline is created. It is common to find airports where airlines freely dictate "requests" for facilities, upgrades or services. An airport will often prepare in perpetuity for an airline that will very likely not be there 20 years from the agreement, and the airport is unfortunately stuck with an unusable space and the debt that goes along with it. Operators must avoid this situation by thinking ahead and thinking of the airport first.
For example, the Long Beach Airport is currently undergoing much-needed construction and modernization. We're building a concourse that is classic and generic to any airline. Any airline will be able to work in the structure. Thus, if an airline goes out of business for reasons beyond the airport's control, another airline will be able to move in and make very good use of the space. We developed a larger concourse and modernized with quality, but delivered in a very inexpensive way. We will be able to reuse and rebuild over and over again and still avoid huge cost increases.
In short, airport directors only require good business sense to have a successful airport. It is not good business sense to take out debt to build facilities for an airline that may be functionally obsolete long before the facility reaches the end of its design life. We must make the facility last as long as possible. Freedom from over-regulation will allow us to more readily make such common-sense solutions.
2022 Charlotte Douglas International Airport Report of Achievement
Giving back to the community is central to what Charlotte Douglas International Airport and its operator, the City of Charlotte Aviation Department, is about, and last year was no different.
Throughout 2022, while recovering from the COVID-19 pandemic, we continued our efforts to have a positive impact on the Charlotte community. Of particular note, we spent the year sharing stories of how Connections Don't Just Happen at the Terminal - from creating homeownership and employment opportunities to supporting economic growth through small-business development and offering outreach programs to help residents understand the Airport better.
This whitepaper highlights the construction projects, initiatives, programs and events that validate Charlotte Douglas as a premier airport.
Download the whitepaper: 2022 Charlotte Douglas International Airport Report of Achievement.