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Airport Operations

10 Pages First Research, Inc. February 23, 2015 SKU: FRRS5473005

Airport Operations

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate airports for commercial and general aviation and provide support services such as air traffic control, aircraft fueling and maintenance, baggage and cargo handling, and rental of hangar space. Major companies include Aeroports de Paris (France), BBA Aviation (UK), Fraport and Lufthansa Technik (Germany), AAR (US), Singapore Technologies Aerospace, and Swissport (Switzerland).

The global airport operations and aviation services industry generates annual revenue of about $80 billion. The US leads all nations in passenger airline travel. Based on the number of travelers, the next largest domestic airline markets include China, Japan, and Brazil. Growth of the international airline industry is expected to be most rapid in the Asia/Pacific region.

The US airport operations and aviation services industry includes about 4,200 companies with combined annual revenue of about $19 billion.

COMPETITIVE LANDSCAPE

Demand for airport operations and aviation services is driven by business and leisure air travel and the size and age of aircraft fleets. The profitability of individual companies depends on efficient operations. Large companies enjoy economies of scale in purchasing. Small companies can compete effectively in hometown markets. The US industry is concentrated: the 50 largest companies account for more than half of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include aircraft maintenance and repair (65 percent of US industry revenue), fixed-base operator services (20 percent), and ground handling (10 percent). Other services include airport administration and operation and wholesale fuel sales.

Companies in the industry...

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Airport Operations

First Research, Inc.
February 23, 2015

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