ONE CITY SIX AIRPORTS

One City Six Airports5

ONECITY SIX AIRPORTS

TheName of the Class

Professor(Tutor)

TheName of the School (University)

TheCity and State

TheDate

Inthe recent past, there has been rapid development in the airlineindustry. The economic developments and the commercialization oftransport systems have made it possible for rapid economicdevelopment in the airline sector. Globalization has also contributedto the critical development of airport management. Even as thedifferent events take place, there are impacts that the airportlocations designs and nature have on the economic developments of theregions of the world (BBC, 2013, p.4). The impact transcends fromeconomic development to technological advancements brought on boardwhile constructing such airports. This research paper looks in theanalysis of the management of the six airport systems in the LondonMetropolitan city. In this prospect, the paper gives a criticalanalysis of the strategic business plan that has been institutedwhile constructing this network. Further, the paper looks in to thestratagem that has been adopted by the airport management. Thedirection they take in ensuring that the airports management providesgrounds for technological advancements and economic growth are alsodiscussed here. After a thorough analysis, an alternative strategythat would be proper has been suggested on how best the airportscould be managed. This alternative strategy is very crucial inhelping to bring a sustainable solution to the various productionstances in the airport management.

Analysisof industry of London airport

Itis important to note that London is one of the largest cities inEngland. Due to its strategic location in the South East England, thecity is encompassed by a stratified airport system, which isprofoundly managed by the government as it brings lots of revenue tothis country (Pels, Nijkamp, and Rietveld, 2013, p.9). In fact, it issubstantiated that the airline transport is the most efficient way ofconnecting London to the rest of the world. The connection to otherparts of the world has brought in leisure travels and the business tobe quite effective. The city of London has one of the largestairspaces that sufficiently serve a total of six airports. The sixairports are Luton, Stansted, Gatwick, Heathrow, Southend and Cityairports. These airports are interconnected in such a way that theygive much attention to transforming the transport industry in theUnited Kingdom and the world at large. The diagram below shows thelocations of the six airports as they have been distributed in theLondon city.

Source:https://www.google.com/imgres?imgurl=https%3A%2F%2Fupload.wikimedia.org%2Fwikipedia%2Fcommons%2F8%2F8e%2FAirports_serving_london.png&ampimgrefurl=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FAirports_of_London&ampdocid=7-qMkRHcOK1LCM&amptbnid=I4ReVmtxwY7WLM%3A&ampw=1208&amph=851&ampclient=firefox-b-ab&ampbih=734&ampbiw=1525&ampved=0ahUKEwj3kO2bmpPOAhXJD8AKHQOYCuQQMwgeKAAwAA&ampiact=mrc&ampuact=8

TheBusiness and Economic Environment of London City

TheUnited Kingdom is one of the largest economies in the world.Currently, the City of London contributes to approximately 20% of thegross domestic product of the UK with most of the revenues comingfrom the largest airline market. It should also be noted that theisland nation requires a well-developed airline transport system thatwould help it in scaling the greater heights of economic development(Starkie,and Thompson, 2015, p.8).Additionally, corporate tax rates are deemed as low as 20% in the UK,which makes it be a potential area for a high level of investment.The airline transport network has made it possible for the country toconnect efficiently to the global economy. In the 21st century wherethere are rapid developments regarding technology, there has beenincreased level of globalization that any country would want to takeadvantage of. The strategic location of the London City with astratified airline network transport makes the country to keenly tapthe advantages of globalization, which enriches its economy (LondonCity Airport 2014b). Furthermore, London is quite important since itis a hub for largest financial services across the world making it bethe business destination for various countries globally. This notionis possible since it attracts the businesspersons who find it as thelocation for business excellence and therefore various productivefirms are deemed to be formed in this city that spurs the economicdevelopment (Full Fact, 2013, p.3). On the account of tourism, Londonis one of the best tourism destinations where it is known to be richin historical cultural heritage. It is also important to note thathigh-impact was felt in the aviation and the tourism industry at whenthe event of Olympics was hosted in the city of London in the year2012. This made many businesspersons discover the potential of thiscity.

LondonCity Airport

Themain areas to discuss in this section include the impact of thedesign and the limitations in terms of the capacity of the city ofLondon airport. In specifics, the profile of the passengers will bediscussed. The facilities of the airport and the limitations due tocapacity and physical design have also been analyzed.

Oneof the pertinent facts about the London city airport is that it isprimly located at the Royal Docks. It is important to note that thecity of London is located in the hub of financial services wherethere is a financial district, the Canary Wharf. The airport is alsodeemed to be near a conference, and exhibition center known as ExcelLondon (London City Airport 2014c). This conference center isspecifically fashioned to be a market center. The ownership of thisairport goes to High Star Capital, which holds 25% of its stake andthe Global Infrastructure Partners, which holds 75% of the stake. Dueto its punctuality, efficient delivery of services and the suitablelocation, the airport has earned many awards such as the air newawards. Additionally, this airport contributes 750 million sterlingpounds to the UK economy, which helps it to drive its economic agenda(London City Airport 2014b). The aerial view of London city airportis as shown below.

Source:http://www.gettyimages.com/event/aerial-views-of-uk-landmarks-71001474#londons-disused-docks-surround-the-runway-at-londons-city-airport-in-picture-id71047661

PassengerProfile

LondonCity airport mainly deals in passengers who have a point-to-pointdestination with most of its international clients being on businesstrips. Currently, the airport handles up to approximately 75,000movements of aircraft, which are deemed to serve over 3.5 millionpassengers. In this prospect, it is deemed to be quite busy and yetquite sufficient and affordable (London City Airport 2013a, p.4). Thepie chart below shows the demographic profile of the persons whoutilize this form of transport by using London City Airport.

Fromabove demographic, the majority who uses flights from the London cityairport are the elderly who are mostly businesspersons. In the termsof gender, the percentage that takes more flights travels are the menwith a percentage of 65% while women population are 35% (CivilAviation Authority, 2013,p.5). The following pie chart reveals thereasons for travels for the passengers who use the airline transport.

Fromthe above table, it is evident that most air travels for this cityare for the business purposes. On the account of the flight services,24% of the flights are domestic while the rest (76%) areinternational flights. In this prospect, the London city airport isseen as the hub of the UK opening to the global world.

TheFacilities of the Airport

Theservices that this airport offers enrich and enhance the travelsacross the world with high level of experience that the passengersderive from the flight travels. In addition to the free WI-FIservices to the esteem customers, the London City Airport also offersservices. There are also tax-free shops and duty-free hotelsalongside with cash and currency points such as the ATMs and Foreignexchange bureaus (Full Fact, 2013, p.13).

TheCapacity and Physical Design

Thecity of London airport is constructed in such a way that it has onerunway, surrounded by water extending to the King George V Dock andthe Royal Albert Dock, which quite substantially accommodatesnumerous flights. The airport also has the apron, which has terminals(Pels,2011, p.18).The jet center and the main terminal, which are the corporatestructure, are situated on the western part of the airport. The onlysubstantially fixed based service provider in London is the airportjet center. There are also the support services, which entail theairside facilities such as the ground handling, and the fire stationservices. It is important to note that the terminal encompassesself-service kiosks, the check-in counters and the baggage claim areaamong other facilities (Full Fact, 2013, p.22).

Limitationsand Remedy Strategy

Oneof the substantial limitations that are seen to have faced thisairport is that the single runway at times cannot contain largerairplanes. The 1508m runway is quite narrow hence making it difficultto accommodate the wide-bodied planes. The small size and theconsiderably constrained location of the airport make it have alimited infrastructure, which poses a big threat to expansion andgrowth of the airport (Full Fact, 2013, p.3). In the quest to dealwith the current limitation, the airport management crew has launcheda vision 2030 strategic plan of making sure that it improves theefficiency and performance of the whole sector without going againstthe environmental conservation statutes. In this prospect, themanagement is giving much attention to the growth of the planefacility with a view of accommodating the ever growing demand oftravelers. The strategic plan entails the inception of a new standand an extension pier (CivilAviation Authority, 2013, p.9). There is also the extended terminalbuilding.

Analysisof the Six Airports System in the London city

LondonGatwick Airport

Thisis the second largest airport in the London city and is located inCrawley, the western part of Sussex. The primary holding for thisairport is the Gatwick airport company. This is one of the mostpopular airports that are substituted to Heathrow. It won the airportof the year award in 2013 and the exceptional customer service awardin the same year. The airport utilizes a single runway airport. Thelack of runway is one of its major limitations (New EconomicsFoundation 2014, p.6). To enhance its services, the airport utilizesthe differentiation strategy in making sure that it gets the best outfor its customers. In this prospect, the company has decided toprovide separate services, which are deemed to be planned for chartercarriers. Additionally, it uses the cost-based strategy where itgives much focus to the cost cutting issues of the company usinglow-cost carriers. Its main priority is to be the best in the market(Gatwick Airport 2014).

ThePassenger Traffic

Gatwickairport currently offer various short distance flights mainly pointto point. It also offers low cost flights with much attention on thecharter carriers, low cost carriers that serve approximately 35million customers. The chart below shows the passenger trafficprofile.

LondonGatwick gives the customers flight to 240 destinations, which arespread, to over 90 countries of the world. It should be noted thatalthough Heathrow is the biggest, Gatwick provides more flightdestinations than Heathrow. Some of the most known destinations areDublin, Geneva, Amsterdam, and Barcelona. Gatwick has 60 airlines. Onthe accessibility of the airport, the main area of most customers isthe central London and some parts of the South London such as Sussex,Kent, and Surrey (Neufville, 1995, p.2). It is also connected to thepublic transport link since it is 28 miles to the south of LondonCentral.

StanstedAirport

Thisis the third largest airport among the six and it is located inEssex, manned by Manchester airports group. It has 10000 ft monorunway with one terminal. It is known to contain some of the largestplanes in the region because of its capacity. The airport has aconsiderably large capacity to handle more that 40 million customersyearly. Like Gatwick, it employs the notion of cost focus stratagem,which entails the provision of services at low prices (GatwickAirport 2014, p.6).

PassengerProfile

Itprovides charter and scheduled carrier services to serveapproximately 18 million clients annually. It also engages in pointto point transportation for domestic flights. The chart below showsthe passenger traffic profile for Stansted airport.

Interms of airline destinations, the Stansted airport is deemed to haveapproximately 150 flight destinations that traverse the UnitedKingdom and Europe. Some of the great destinations that this airportserves are Rome, Dublin, Alicante, Belfast, and Malaga. It currentlyoperates around fourteen airlines where Ryanair is the largest amongthem. Additionally, this airport is the largest operating base of themost of the low-cost airlines that are across the UK region (GatwickAirport 2014, p.2). There are also other airlines such as the Easyjet and German wings, which are part of the airline carriers owned byStansted. On the account of access to the airport, the main area ofthe catchment is thronged in the London CBD in the northern part.This is controlled by East Anglia and Westminster. The airport issituated around 30 miles to the northeastern part of central London.This position is well connected to the rail transport network, whichmakes it be preferred by the business people from the northeastLondon. The pie chart below shows passengers surface access.

Heathrow

Thisairport is located in the suburbs of London city, and it is managedby the Heathrow holding company. It is the most well-known airlinecompany that has numerous connections that transcend across theworld. Heathrow has earned numerous awards including the best airportfor shopping in 2014 to the best terminal airport in the same year.The company has managed to build five formidable terminals and tworunways, which are full in length and parallel to each other(InterVISTAS, 2013). The main problem that Heathrow has is the notionof the limited and narrow runway at its disposal. In this prospect,the airport might end up losing some of the vital destinations thathelps it to be on the top-notch chart. Additionally, it should benoted that the company has been on the verge of making sure that itput up a plan that would expand the runway such that it canaccommodate other flights without creating harm to the environment(Bonnefoy,Neufville, ASCE, and Hansman, 2010, p. 13). The strategy that thisairport uses is the notion of differentiation where it enhances thefeatures of its products. The distinctiveness lies in the way theairport can give differentiated products and services in separateterms for different passengers (Gatwick Airport 2014, p.6). Thisdifferentiation strategy is made possible using the five terminalsthat the airport has. For example, terminal 1 is concerned with thedomestic flights while the terminal 3 deals with long-haul flightswhich have the destinations of South America, US, and Asia.

PassengerProfile

Asit stands, Heathrow serves approximately 72 million clients per yearand is seemingly the most formidable hub for the long hauldestinations. This is because almost 65% of the long distancedestinations are accessed through Heathrow. The graph below shows thepassenger traffic profile.

Interms of the airline destinations, Heathrow Airport offers theservices of flight to 180 destinations that are spread across theworld. Some of the most prominent destinations are such as Dublin,Amsterdam, Frankfurt, and Dubai (CivilAviation Authority, 2013). The airport works with 92 airlinecarriers. British Airways own most of these airlines, which is itsprimary hub. Other major carriers are such as the Air Canada, DeltaAirlines, and American Airlines. On the account to access to theairport, it is concentrated in the heart of London city, whichencompasses the North West and the West part of London. In specifics,it is 15 miles from central London, has a network of buses, trains,and coaches. The passenger surface access for is airport is as shownin the chart below.

LutonAirport

Thisis the fourth largest airport in London located in Bedfordshire. Theairport has one terminal with a single runway, which operates, at 60%of its capacity. It should be noted as well that the company hasutilized the low-cost focus strategy, which has made to offer itsservices at low prices. Additionally, it has used the differentiationstrategy, helping it to offer quality services to the customers. Inthis strategy, the management has ensured that it diversified itsservices to suit customers’ tastes and preferences(CivilAviation Authority 2013).This airport is controlled by low-cost airlines in the region. Itcurrently serves 9.9 million clients annually. The chart below showsthe passenger traffic profile.

LutonAirport has over 100 airline destinations, which usually include theUK, Africa, Europe and the Middle East. It has nine airlines. Themain target for this airport is the northern part of London includingthe East Midland area. Buckinghamshire, Hertfordshire, GreaterLondon, and Bedfordshire subjugate Luton’s catchment area. Thepassengers can access the airport as mentioned above in numerousways. The airport is connected to the northern part of London centralby local bus, rail, and coach services. The connection is 35 milesapart (Hess,and Polak, 2015, p.11).

SouthEnd

Thisis one of the latest airports known to be quite cost effective in theregion. It is located in the southeast side of Essex County. It isowned by Stobart Group. Recently it was mentioned to be best airportin the United Kingdom in 2013. Currently the airport is expanding itsactivities by building a new terminal, a control tower, an extendedrunway, and a train station. Due to its design, the airport can nowcontain larger airplanes than before. It serves up to 5 millionclients in a year (Bonnefoy, Neufville, ASCE, and Hansman, 2010, p.13). The aerial view of the runway for the Southend airport is asshown below.

Source:http://www.dailymail.co.uk/travel/article-2004606/easyJet-transform-Southend-Airport-time-2012-Olympics.html

Themain strategy that this airport uses is the low cost focus. They dothis through offering their services at competitive prices, which arequite cost effective. This plan is possible using low cost carriers,which brings on board the advent of future expansion. Southend dealswith scheduled passengers, the corporate services and charterpassengers. It handles approximately 1 million passengers. 80% ofthese passengers are deemed to leisure travelers on point-to-pointtravels (Graham, 2010, p.4). The passenger surface access profile isas summarized in pie chart below.

Proposalstrategy for London Airport System

TheUnited Kingdom is one of the largest economies in the world.Currently, the City of London contributes to approximately 20% of thegross domestic product of the UK with most of the revenues accruedfrom the largest airline market within the city. The island nationrequires a well-developed airline transport system that would help itin scaling the greater heights of economic development. Additionally,corporate tax rates are as low as 20% in the UK, which makes it, be apotential area for a high level of investment (Hess and Polak, 2006).The airline transport network brought out by the city has made itpossible for the country to connect efficiently to the globaleconomy. In the 21st century where there are rapid developments interms of technology, there has been increased the level ofglobalization that any country would want to take advantage. Thestrategic location of the London city with a stratified airlinenetwork transport makes the country take keen tapping the advantagesof globalization, which enriches its economy. Furthermore, London isquite important since it is a hub for largest financial servicesacross the world making it be the business destination for variouscountries globally (Greater London Authority, 2011, p.2). This notionis possible since it attracts the businesspersons who find it as thelocation for business excellence and therefore different productivefirms are deemed to be formed in this city that spurs the economicdevelopment. On the account of tourism, London is one of the besttourism destinations given that it is rich in historical and culturalheritage.

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