Possibilities and prospects for airport revenue recovery by applying international strategies of economic development

Abstract

The global air transportation market has tremendously changed over the past three years. Worldwide quarantine restrictions complicated the process of aeronautical communication both at the domestic and international levels. Lockdown resulted in a sharp decrease in the volume of world passenger traffic - a vital source of airport revenues. This article studied global airport revenues and classified airport services by type and revenues according to the sources of their receipt. The structure of aeronautical and non-aeronautical revenues was given, and the most common airport charges were characterized. The state and forecasts of world passenger air transportation volume during 2015-2025 and the impact of the COVID-19 pandemic on them were studied in this article. In particular, the way it redistributed shares of non-aeronautical revenues with an increase in the share of rental revenues. Attention to the impact of a full-scale Russian invasion of Ukraine on the global aviation industry was paid. The current forecasts for the recovery of the global air transportation market were studied. Analysis of the current state of aeronautical and non-aeronautical airport revenues allowed to identify possible strategies for increasing their volume under post-pandemic aeronautical market recovery conditions. Among the possible measures for airports, the following were highlighted: implementation of dynamic pricing based on demand and airport workload, using the diversification strategy for organizing income sources with a focus on non-aeronautical services and air cargo transportation. The importance of greening economic activity in the long term was noted to ensure the investment attraction of airports.

Keywords

• airport
• strategies of increasing airport revenues
• aeronautical and non-aeronautical revenues
• impact of the covid-19 pandemic