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This project book contains information about the theme and background of this project (1) and the exact project assignment you are required to develop (2). As this is a team project, we have provided you with additional information about the team work necessary to complete your project successfully (3). Finally, a detailed build-up of how this assignment will be graded is also given Enjoy this last project of the first year of Aviation Logistics! 1 . Project Theme The theme of this project is the “Catchments Area” of an airport.
Or in other words: “How does the airport serve its region”? Since we are looking at an area in which six different airports are operating in a circle of 100 km it is very important to understand and define the target group of an airport. Competition is increasing between different aviation bodies due to growth and increase within the aviation sector. Therefore it is good to look at the relationship between profession and theory. (1 . 1). When the theoretical models are applied correctly you will be able to achieve the learning goals and competencies of this project.
In this project the main subject is to learn how an airport focuses on a certain target group and how this is translated into a business model. Next to that you will learn how to classify the suppliers in a model in order to define your purchasing strategy. (1. 2). 1. 1 Relationship with the profession Airports generate revenues from different sources, which can be split into aeronautical and non-aeronautical revenues. The aeronautical revenues and related costs are linked to the aviation related activities at an airport: the landing and takeoff of aircraft and the handling of passengers and cargo.
Here we will find passenger and landing fees and charges, but there are also security charges, environmental charges and an aviation tax . The non-aeronautical charges relate to the commercial etc. Now, which charges are collected as revenues for the airport and which charges are collected on behalf of the government? What kind of activities should the airport perform? What is needed for an airport to survive? Which set of suppliers do we have for advertising, retail, utilities, parking, cleaning, maintenance, security and (connecting) transport?
What is the suppliers’ position towards the airport and how many competitors do they have? 1. 2 Learning goals and Competencies At the end of this project you will be able to understand: the various airport business models the position of an airport within the region the position/power between a supplier and buyer how to use the different theoretical models (Karachi or Monsoon) to decide on a archiving strategy and a purchasing action plan. The outcomes of these models will determine the negotiation position you take towards your suppliers.
To be successful in these negotiations you will also have to learn different negotiation skills and how to use these in practice. 2. The Project In order to successfully complete your report, you first will have to get to know the three major airports in the London area (2. 1). The project guidelines are then described (2. 2), together with the structure of the consults (2. 3) and the final products to be handed in upon completion of the project (2. 4 and 2. 5). 2. The Airports It is important to know the background and figures of three major airports of London.
For this project we take London Weather (2. 1 . 1), London City (2. 2. 2) and Standee (2. 1. 3). The main sources for this chapter are weatherproof. Com, landownership’s. Com and standardization. Com. 2. 1. 1 Heathers London Heathers is the Auk’s largest airport and the world’s the London airports do transport the largest amount of passengers in one city region, carrying over 69. 4 million passengers and 1. 48 million tons of cargo each year. However, the airport came to life in 1946 as a small grass airfield.
Privately owned, the Great Western Aerodrome was used largely for test flying with commercial flights taking off from nearby Weston and Wentworth Park airfields. In 1944 it was requisitioned by the Air Ministry to be developed as a major transport base for the Royal Air Force. Before the work was completed, the war ended and with it came the prospect of a huge expansion in civil aviation. London needed a large airport with modern equipment and the partly-built site at Heathers was ideal. One runway was ready for use and when the Ministry of Civil Aviation took it over in 1946 the tented terminal was quickly UT in place and a new chapter began.
By 1947 three runways had been completed and work on another three – subsequently abandoned as unnecessary – was going on. A new, permanent building arose in the central area at the start of the sass, replacing the tent. As traffic facilities. The Queen inaugurated a new building in 1955 (Terminal 2) and the tunnel which provides the main road access to Weather’s central area was opened. Next came the new Oceanic terminal handling long-haul carriers, a function it still performs as Terminal 3, followed by the opening of Terminal 1 in 1968.
Increased ingestion in the central area led to the birth of Terminal 4 in 1986 on the south side of the airport, a modern facility but an inconvenient 10-20 minute transfer from the heart of Heathers. Today London Heathers International Airport has super rail and road links to London and other parts of the country. In 2001 Heathers received approval to build another passenger terminal, the construction of which started in 2002. Terminal 5 was opened in March 2008 but will be fully complete in 2011. 2. 1. 2 London City Airport 2. 99 million passengers a year 36 destinations 11 airlines So how did it all begin?
In 1981 Erg Ward, the Chief Executive of the newly formed London Docklands Development Corporation (OLDS) discussed the idea of an airport for Docklands with Sir Philip Beck (Chairman of John Mole & Co Pl). In November an outline proposal was submitted for a city centre gateway. In June 1982 a Dash-7 aircraft landed on Heron Quay demonstrated the feasibility of the airport project and in August a feasibility study was published by OLDS. An opinion poll was published by October showing many local residents were in favor of the proposals and Mole submitted an application for planning permission.
Public enquiries into the planning permission were started in 1983, and proposals were approved in 1984 – as long as noise control conditions were adhered to. May 1985 saw the outline planning consent granted from the secretary of State. Construction work was launched by the Aviation Minister in 1986 and the Prince of Wales laid the foundation stone of the terminal building. The airport was officially named by the Mayor of London in 1987. The year to follow saw several routes being licensed and commercial flights were started. November of this year saw the official opening by The Queen. ,000 passengers had used the airport by the end of the year. In 1988 the airport launched a 35 minute river bus service to and from central London and the airport handled 133,000 passengers. Services to Rotterdam, Lie and Strasbourg were started in 1989, and in the same year planning permission was submitted to extend the runway as over 216,000 passengers used the airport. In 1991 the Secretary of state approved expansion plans but passenger numbers fell to 172,000 after the Gulf War. In March 1992 the Princess of Wales visited the airport for the official re-launch of London City ND the extended runway.
Several new services are announced and passenger numbers rise to 186,000. Over the next few years many new services begin and by the end of 1995 passengers reach over 555,000. London City Airport Ltd was sold to Irish businessman Termed Despond during this year. London City won two industry Awards in 1996 and passenger numbers rapidly increased after this. In 1997, more new airlines and destinations were added, the departure lounge was redesigned and approval was given to increase the number of passenger flights in 1998 and over 37,000 flights were made that year.
In 1999 several improvements to the airport were made. These included a covered dock edge walkway, a terminal business centre refurbishment and the Jubilee line opening to passengers. 2000 saw many changes with British European launching new destinations, real time flight information and bookings being made available online. Refurbished restaurants were opened and a planning enquiry was put forward for the Docklands Light Railway. In 2001 the airport won Business Travel ‘Best Business Terminus’ world award for the fourth time.
More improvements were made to the arrivals and check in areas and planning approval was given for a new runway link. The Secretary of State approved the extension of the DEL to airport. The airport celebrated its 15th Birthday and 10 millionth passenger in 2002. Many new services were announced in 2003 including British Airways flights to Edinburgh, Paris, Geneva and Frankfurt. This year work began on extending the DEL and the airport won several more awards including European Regions Airline Association’s Airport of the Year Award.
London City airport continue to develop as an important London gateway with 11 airlines flying to over 36 destinations and the handling of approximately 2. 9 million passengers a year. 2. 1. 3 Standee Airport Figure 1: Terminal Standee Airport Standee Airport: Auk’s fourth largest airport Home to 12 airlines 1 Terminal 18 million passengers a year Standee Airport started life in 1942 as a USAF bomber base during World War Two. During the package holiday explosion in the ass, Standee grew to become known as Loon’s third major airport.
The airport’s future became uncertain shortly after this, as the huge number of complaints and protestations about the possible development of the airport led to plans for its growth being scrapped by the government. This all hanged when a world oil crisis occurred and other airport options became too expensive. The increasing demand amongst the holidaying British public led to a turnaround in government policy and the development was given the go-ahead. This growth led to it being bought out by the British Airports Authority, who developed the terminal in 1969 and extended it in 1972.
In 1984 Standee airport gained approval for expansion to accommodate a larger number of passengers, and then in 1986, work began on the main terminal that stands today. This new terminal was opened in 1991 , and Standee won awards for the building. Since then, Standee has gone from strength to strength, and is now known as the Auk’s fourth major airport, and the British home of the budget airline. Standee’s 12 airlines serve 160 destinations, with 18 million passengers every year passing through its doors. In recent years, to accommodate 35 million passengers a year.
Standee Today – Facts and Figures Standee is open 24 hours a day, 365 days a year. Standee airport serves over 18 million passengers each year It is the third busiest airport in the I-J, 46th busiest in the world Over 148,000 aircrafts from 12 airlines depart and land at Standee each year. The planes from Standee fly to over 160 destinations covering 34 countries across the world. Standee has one runway that is mom long and mom wide. There are a number of parking options available if you drive to Standee airport.. 2. Project Guidelines The objective of this project is to make a business model per airport, explaining “how to serve the region” for the three different London airports. Included in your business model must be a description of the airport location, a detailed plan of the supply chain relations between the airport and surrounding area, and an explanation of the aeronautical en non-aeronautical charges at the three different London airports. Use the Stewarded Business model as reference. 1 . Decide which type of business model applies for each airport, using the book for Airport Marketing. . Your advice should take the following points into consideration: a. What is the catchments area for each of the three different airports? B. What is the business strategy of the three different airports? C. What are aeronautical and non- aeronautical charges? D. Which trends do we see in airport charges, TACT-charges, and government charges in general at these three specific airports? . Which suppliers do the different airports have for the non-aeronautical revenues? F. Make a Karachi model for the different types of suppliers (product groups/charges) that the airports have. G.
What is the average amount of passengers (per annum) at these airports and what type of passengers do we see? H. What are the airport charges for three different types of aircraft (small, medium, large) at the airports? I. Which CIAO and European regulations are of any importance (regarding choices in suppliers)? J. What are the main differences in regulation between Europe and the USA? Why does this have such a big influence on the European airports (regarding landlord versus employer)? K. Which other theoretical models can you find to make buying decisions? L. Make a FAME analysis for the different suppliers. . Make a (financial) risk analysis, calculating the z-score of the suppliers as shown in the (fictional) annual report on DOLL. N. Does the risk analysis in any way influence your purchasing strategy regarding certain suppliers? Different business models for the given airports in a both a written report as well as in a presentation to two professional teachers. 2. 3 Consults The invitations for the consults must be sent at least 24 hours before the consult.. The Plan of Approach must be attached to the invitation for week 2. The presentation sheets/slides can be submitted during the last consult (week 7). . 4 Project plan (Plan of Approach) The final version of the Plan of Approach must be attached to the invitation for the consult of week 2. The Plan of Approach must be written in English and be submitted in PDF format. It will consist of: 1 . Introduction, including the research/project motivation 2. Formulation of the problem a. Assignment b. Main question 3. The aim of the report . Sub questions that will help you to answer the main question b. Aim, SMART formulated. 4. Definition of the project,outlined in the form of a pyramid structure 5. Reading list 6. Appendix (Appendices) a.
Pyramid structure b. A group planning made per person per week (answering the W questions) c. A team contract d. Team photo The Plan of Approach should contain a maximum of 6 pages (AY format). Specific, Measurable, Apparent, Realistic. Time-bound: Who, What, When, Where, Why, How and How much? 2. 5 Project report The final version of the report must be handed Wednesday June 4th at 12:00 0″clock t the “Technique service desk” on the first floor. The report should be submitted in 2 hard copies (metal ring-bound) and on CD. The project report must be written in English.
The project report is constructed according to Bowen an Jew protectiveness and consists of: 1 . Title page (including Title, names, project team number, student 3. Summary 4. Table of Contents 5. Introduction, including the motivation for research 6. Formulation of the problem, including a description of the assignment 7. The aim of the report (SMART formulated) 8. Definition phase 9. Research phase 10. Design phase 1 1 . Conclusions and recommendations 12. Reading list 13. List of Appendices (Content) 14. Appendices a. Appendices needed for the project b.
Pyramid structure (final version including responsibilities of the project parts) c. List of terms (explanations) d. Process report e. Team reviews The project report are allowed a maximum of 30 pages (AY format, excluding title page, preface, content, summary and appendices). 2. 6 CD The CD consists of: 1. The report as a single document. 2. The appendices as a single document 3. The project plan as a single document 4. Team reviews, in excel in pathetic order. 5. All meeting minutes 6. The last, most up-to-date planning 3. Working in a team The project period for 1. 4 is from week 14 until week 21 -seven weeks in total.
In order to be able to finish the project on time, it is critical that the project team makes an effective project plan (preferred in Microsoft project). The success of the project will depend on how well the team process works throughout the course of these seven weeks (3. 1). 3. 1 The team process After the team contract and the division of tasks have been made and the planning has been created, the team will start working on the project. A well-functioning and operative team will reach the best final result. If problems occur in De process, the project adviser has to be informed so he or she can help the team to resolve the issues.
What is a good team work (3. AAA)? What type of support can the team expect from the project advisers (3. B)? The following issues are important for ensuring a good level of cooperation in a team: The students work independently when looking for solutions for the project. The team members are personally responsible for the work they deliver to the team and also for the quality of this work. (Plagiarism is not allowed and will be checked. ) As a am you share all the knowledge that has been gathered, so the whole team can learn from the project.
The team will meet more often at the beginning of the week to check the planning where necessary. On Thursdays the team will meet with the project adviser. The chairman is responsible for giving the meeting format and the secretary is responsible for keeping the meeting minutes. Each team member is responsible for attending the meetings and the consults. If in any case someone cannot attend than the chairman has to be informed. All team members have to be reachable by HAVE mail or telephone. The team keeps in contact with the project adviser by sending the meeting minutes and inviting him or her for the consults.
The dates and times of the team consults are available in the class schedules on DOLL. Any changes will also be noted on DOLL. All books and lectures given in this period are related to this project. Some of the books are available for loan to students in the teachers room (the books have to stay in the room and cannot been taken away). Books and lectures are also available on DOLL or at the library. The project advisers are available for questions in the teachers’ room at AY. 20 or by HAVE mail. The advisers’ role is to follow the team process.