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), Aircraft Service International (US), Heathrow (UK), Fraport and Lufthansa Technik (Germany), Singapore Technologies Aerospace, and Swissport (Switzerland).
The global airport operations industry generated revenue of about $142 billion in 2014, according to Airports Council International (ACI). European airports generate the most revenue. Industry growth is expected to come from airports located in the emerging markets of Asia/Pacific, the Middle East, Latin America, and the Caribbean.
The US airport operations and aviation services industry includes about 5,800 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $26 billion.
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 about 55% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include aircraft maintenance and repair (about 70% of US industry revenue) and fixed-base operator, or FBO, services (20%). Other services include ground handling, airport administration and operation, air traffic control, and wholesale fuel sales.