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Why do you go to the airport ? On airport revenues

Why going to an airport ? This might seem a silly question, but don’t imagine that airports are simply places where people board their plane. Most airports have a commercial mall, whose size can range from three boutiques to a full supermarket.

In many countries, shops in the airports are operated under special rules, allowing for seven days a week opening, with special times. This don’t apply only for duty free shops dedicated to passengers, but also to ones open to general public.

The possibility to run a business on days concurrents have to stay closed is an excellent opportunity, but it also has its price. The rents companies have to pay to get an airport shop have nothing in common with normal shops. But this is not the only non-flying related source of incomes for airports…

May be your last visit to an airport was to pick-up or drop someone. If you had to wait, did you resist the temptation of a coffee or a snack ? Yes – ok, but where did you parked your car… ? And how much did that cost ? Because of parking, I can hardly remember a visit to an airport which did not costed me at least a couple of dollars, euros, francs, whatever…

The 2007 yearly report of Geneva International Airport contains a financial summary, from which I extracted the revenues breakdown. The yellow part of the pie-chart represents the revenues related to operating the airport (landing fees, passenger fees, ..). The blue part – which is over 50% – represents all the rest.

Geneva Airport Revenues Breakdown

Have you seen that parkings alone make 10% of the airport income ? Airports are complex businesses, which are well diversified. I did not said they could stop being airports. Visitors are attracted by the flying activities, and the airport then offers many additional services to maximize profits.

Is that a good or a bad thing ? It would be unfair to charge all parking costs to passengers, knowing that some parking users are not flying. And free parkings would always be full ! Airports with no shops would have to increase the passenger fees, and would be less attractive. I must admit that having a 7/7 shopping center nearby is rather pleasant and can reveal helpful, particularly when a pharmacy is needed on sunday.

Unions frequently say that the negative aspect is to make employees work on week-end, and undue hours. However one must serve customers where and when they are, and several jobs would be lost is these shops had to close. So yes, diversifying airport’s business is a good thing !

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