MEMPHIS INTERNATIONAL AIRPORT 6
The is a publicly operated airport owned bythe Memphis-Shelby County Airport Authority since 1969 (MIA, 2016).The Authority is responsible for managing and generating theAirport’s revenue thereby sustaining its financial viability. Thefact that there are no local tax dollars implies that the Airport isa self-financing entity. The body generates the needed revenue tosustain the financial viability of the Airport through the collectionof rents, fees and other charges from users such as car rentalcompanies, concessionaires and airlines.
Theguarantee of the Airport’s sustained financial viability emanatesfrom the lease agreements that the Authority enters with the majorairlines that use the Airport. The Authority raises funds to improveits capital development projects by participating in the AirportImprovement Plan, a program that sources its funds from feesgenerated from the aviation industry. The other source of funds forcapital improvement projects are the payments made by air carriers onthe bonds issued by the Authority.
Thelatest budget of the Airport set by its Authority in the 2015financial year has seen a decline in the landing charges by 11%. TheAirport’s Authority charges $1.2927 per thousand pounds. Thecharges reflect a reduction from the previous charges of $1.4543 perthousand pounds stated for the 2014 financial year (MIA, 2014). Thedecrease of the charges is in accordance with the objective of theairport to become a destination and origin airport rather than aDelta hub. However, the airport’s authority has increased therented terminal space thereby increasing the terminal rates byapproximately 68%.
Thereare four runways at the . Runway 18C/36Cis the first runway. Runway 18C has a runway heading of 178 magneticand 179 true. Runway 36C has a runway heading of 358 magnetic, 359true. The other runway at the airport is runway 18R/36L. Runways 18Rand 36L have runway headings of 178 magnetic, 179 true and 358magnetic, 359 true respectively. The airport also has runway 9/27.The runway heading of runway 9 is 091 magnetic, 092 true. Runway 27has a runway heading of 271 magnetic, 272 true. Runway 18L/36R is thefourth runway at the airport. Runway 18L has a runway heading of 178magnetic, 179 true. Runway 36R has a runway heading of 358 magnetic,359 true (MIA, 2016).
TheUser Charges and Fees
Besidesincreasing the landing fees, the hasalso increased its parking charges as a move to fund itsmultimillion-dollar terminal modernization project. The airport hasraised its parking fees for the first time in the last fourteenyears. The new parking fees apply to users under both long-term andshort-term parking category that meet the max per day criterion. TheAuthority has increased long-term and temporary parking by $4 and $3per day respectively (Corbet, 2016).
TheAuthority targets to generate annual revenue of $1.5 million from theincrement in the parking charges. As a result, the maximum dailycharge imposed on short-term parking at the airport is $24.Similarly, the maximum charge under the long-term parking option is$15. However, the airport has not changed its hourly parking rates.Parking in any lot is free of charge for all vehicles during thefirst thirty minutes. The airport charges $6 per day for all parkingcharacterized under the economic lot. The daily parking fees foroversize vehicles is $12 (Corbet, 2016).
Classificationof the Airport
The is both a primary commercial serviceairport and a cargo service airport. The consideration of the airportas a principal service airport arises from the fact that ittransports passengers in excess of 10, 000 every year. The airportalso receives scheduled passenger services from major airlines. Theaverage number of passengers served by the airport in a month is140,000 (MIA, 2016).
Most of the passengers either originate or arrive at Memphis. Thefact that there are cargo aircraft that offer exclusive cargotransportation services at the airport implies that MEM is also acargo service airport. In fact, the airport had the largest number ofcargo operations in the world for a sixteen-year period ranging from1993 to 2009. It was not until 2010 that Hong Kong displaced MEM asthe airport having the leading number of cargo operations in theworld with MEM taking the second place. MEM continues to exhibit thelargest number of cargo operations in the USA thereby affirming itsclassification as a cargo service airport.
LargestAircraft Serviced on a Regular Occurrence
Thedecision of major airlines to switch to Boeing 737 and 767 has turnedthe two aircraft to be the prevalent passenger and cargo aircraftwith the highest number of flights made to and from MemphisInternational Airport (MIA, 2016). For instance, American Airlineshas decided to replace its Embraer 175 and 76-seater Bombardierplanes with the Boeing 737 plane that has a seating capacity of 160passengers. The move targets to increase the access to air transportservices by the airlines in question. An increase in the frequency ofthe aircraft at the airport implies a consequent increase in theservicing of the aircraft at the Wilson Air Center. FedEx has alsoopted for the Boeing 767 variant to increase its carrying capacitysince the seating capacity of the aircraft ranges from 181 to 375.
Corbet,M. (2016). Airportincreasing parking Fees for first time in 14 years.Retrieved from:<http://www.bizjournals.com/memphis/news/2016/01/15/airport-increasing-parking-fees-for-first-time-in.html>
MemphisInternational Airport. (2014). FAAInformation Effective 21 July 2016:Runway Information. Retrievedfrom<http://www.airnav.com/airport/KMEM>
MemphisInternational Airport. (2016). Leadership.Retrieved from: <http://www.flymemphis.com/leadership>