A STUDY ON REVENUE GENERATING OPPORTUNITIES IN AN AIRPORT WITH SPECIAL FOCUS ON THE BANGALORE INTERNATIONAL AIRPORT LIMITED PROJECT REPORT Submitted by SINDHU.C.D URN: 0801010021 In partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION IN AIRLINE AND AIRPORT MANAGEMENT Guided by Dr.G.Vanishree Professor & HOD Vignan Institute of Technology & Aeronautical Engineering Vignan hills, Nalgonda distt, AP - 508284 Submitted to DIRECTORATE OF ONLINE AND DISTANCE EDUCATION
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A STUDY ON REVENUE GENERATING
OPPORTUNITIES IN AN AIRPORT WITH SPECIAL
FOCUS ON THE BANGALORE INTERNATIONAL
AIRPORT LIMITED
PROJECT REPORT
Submitted by
SINDHU.C.D
URN: 0801010021
In partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
IN
AIRLINE AND AIRPORT MANAGEMENT
Guided by
Dr.G.Vanishree
Professor & HOD
Vignan Institute of Technology & Aeronautical Engineering
Vignan hills, Nalgonda distt, AP - 508284
Submitted to
DIRECTORATE OF ONLINE AND DISTANCE EDUCATION
ANNA UNIVERSITY OF TECHNALOGY COIMBATORE
COIMBATORE – 641047.
FEBRUARY 2011
ii
ANNA UNIVERSITY OF TECHNOLOGY COMBATOREDRECTORATE OF ONLINE AND DISTANCE EDUCATIONFEBRUARY 2011.
This is to certify that the project entitled A STUDY ON REVENUE
GENERATING OPPORTUNITIES IN AN AIRPORT WITH SPECIAL
FOCUS ON THE BANGALORE INTERNATIONAL AIRPORT LIMITED
is the bonafide record of project work done by Ms. SINDHU.C.D URN:
0801010021 of MBA during the year 2010-2011.
Signature of the Signature of the
DIRECTOR,DODE PROJECT GUIDE
Submitted for the Project Viva-Voce examination held on _________________.
INTERNAL EXAMINER EXTERNAL EXAMINER
BONAFIDE CERTIFICATE
iii
I affirm that the project work titled A STUDY ON REVENUE GENERATING
OPPORTUNITIES IN AN AIRPORT WITH SPECIAL FOCUS ON THE
BANGALORE INTERNATIONAL AIRPORT LIMITED being submitted in
partial fulfillment for the award of the degree of MBA is the original work carried
out by me. It has not formed the part of any other project work submitted for
award of any degree or diploma, either in this or any other University.
Signature of the
Candidate Sindhu.C.D
URN: 0801010021
I certify that the declaration made above by the candidate is true.
Signature of the Guide
Dr.G.Vanishree
Professor & HOD
Vignan Institute of Technology & Aeronautical Engineering
Vignan hills, Nalgonda distt, AP - 508284
DECLARATION
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ACKNOWLEDGEMENT
I am very thankful to my project guide Dr.G.Vanishree for being a source of constant support to
me during the project I am also thankful to all respondents for their support and positive
response towards my endeavor, in spite of their busy schedules and also for providing me all the
necessary information and details in order to successfully carry out my project.
I would specially like to express my gratitude to my husband Mr.K.G.Suresh Kumar, Bangalore
International Airport Limited, for his guidance in carrying out the project as well as advising me
throughout the duration of the project. Without his sincere and untiring help and constant
encouragement the project could not have been successful.
Sindhu.C.D
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TABLE OF CONTENTS
Chapter no.
1
TITLE
Abstract
List of tables
List of Figures
Introduction
Page
no.
vi
vii
viii
1
1.1 Objective 5
1.2 Theoretical Background 6
1.3 Company profile 19
2 Analysis and Interpretations 37
3 Findings 49
4 Conclusion 51
5 Suggestions 53
References 56
Annexure 58
SYNOPSIS
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The first successful flight of airplane by the Wright brothers in December 1903 changed
the way men travelled .With the construction of large capacity airplane the need for
large, well laid out airports came up where ticketing, embarkation, customs, Immigration
were set up. With only an initial cost component involved in setting up an airport, the
airports started recovering the cost in subsequent years and started earning profits from
the fee generated by the airlines and airplanes using the airport. With the economic
turmoil in the nineties, airports started losing their incomes as airlines started defaulting
on their payments as their survival itself became doubtful and many airlines wound up
due to low seat factor, rising fuel cost and other operational cost. The need to renovate
and look in to non-aero revenues was felt for the airport survival. Some of the airports in
Europe started adopting innovative methods in the nineties itself and started showing
encouraging results.
BIAL became operational on 23 May 2008 and now, has taken up expansion
plan and is in an enviable position to adopt successful marketing methods taken up by
other airports. To get a rough picture of this, a questionnaire was prepared and circulated
among 100 randomly selected people at the airport. The results were collated and the
following points emerged which can be considered into the expansion plan of BIAL to
achieve the leading edge and to become the favorite destination for people around the
world. The profile of the people coming to the airport is of economically well-off type,
tech-savvy, well travelled or well informed of the latest trend in lifestyle globally. They
are eager to lap up the idea of airport not just a transit point for travelers but also a leisure
destination where one can spend quality time with relatives and friends even if it means
shelling out extra money. So the airport authority can go ahead with innovative, value
added service to the public without worrying about the viability.
LIST OF TABLE
vii
1.1 Global Airport Revenue -2007, p-8.
1.2 Salient features of the passenger terminal, p-23.
viii
LIST OF FIGURES
1.1 VIP Lounge, p-25.
1.2 The Reserved Lounge, check- in Hall,p-26.
1.3 The Kingfisher Lounge, Domestic Departure,p-27
1.4 The Oberoi lounge, International Departure,p-28
1.5 Air India Lounge, Domestic Departure,p-29
1.6 VVIP Terminal, Airside, p-30.
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CHAPTER – 1
INTRODUCTION
1
CHAPTER – 1
DEFINITION OF PROBLEM
As per Philip Kotler, a well-known author in the field of marketing “Marketing
is all activities which are aimed at the satisfaction of buyer’s needs and wishes by means of
trading processes”.
AIRPORT MARKETING:
Airport marketing is a niche from this perspective. The traditional airport concept offers core
trading products, namely transfer of passengers and goods. Today, airports have become
commercial enterprises with value propositions, specifically designed to target specific market
segments. In the latter part of the 1980s, inadequate runway capacity, congested terminals, ATC
control delays generated poor publicity for airports in Europe, the United States and to a lesser
extent, Asia. It would be valuable to assess airport financial performance in terms of the returns
on the assets employed. However, in practice it is very difficult to arrive at the true asset value
of airports in different countries. While many of the larger US airports have been profitable for
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many years, the airport-use agreements which some US airports have with their airlines prevent
them from earning large profits. Several do little more than break even as a result. The published
financial results of the larger and apparently profitable airports may in many cases mask the true
economic performance even of those airports. This may be so where an airports cost have been
underestimated for the following reasons:
1) At many airports, particularly those still run by government departments, grants received
from international agencies or even the airports own government may not appear as a cost in the
airports accounts. Assets financed from such grants may not be charged a depreciation cost.
Furthermore; such grants may be interest free. Another shortcoming in accounts may arise where
government grants or subsidies are used to cover up annual operating losses.
2) Where services at an airport are provided by other government departments for eg; RWY
maintenance by PWD, the airport may not be charged in some cases. These costs may well not
be reflected in the airports accounts.
3) The ATC especially, aerodrome, approach control services is operated at a loss by the
respective civil aviation departments. Including such losses in airport accounts would reduce or
eliminate the profits.
The two main strategic business units managed by an airport enterprise are known as the
aviation-related and non-aviation related business.
AVIATION RELATED ACTIVITIES:
Landing fees, ATC fee, Passenger and cargo landing fee, Housing and handling fee.
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NON-AVIATION RELATED ACTIVITIES:
Rents from additional spaces to airlines, general sales agents, catering firms,forwarders,cargo
operators, tour operators, travel agents, rents and commissions from various commercial
ventures like boutique, duty free shops,bars,parking site etc.,Direct sales arising from shops
owned or managed directly by airport authority.
IMPACT OF ECONOMIC CRISIS ON AIRPORTS
2008-2010 is likely to be lost years in terms of growth.
Airport revenue decline in all areas due to fewer passengers, fewer aircrafts, smaller/lighter
aircrafts, reduced spending overall and per head.
Operating costs remain high which weighs on the profits.
Safety, security and service quality remain high on priority
AERONAUTICAL OPERATIONAL COST VS.REVENUE
High level of fixed operating cost due to personnel and maintenance requirement for safety
and security.
Airport industry operating cost absorbs 60% of total airport industry revenues.
Only 50% of total airport industry revenue generated by aero charges.
There is no or low profit margins.
Constant pressure to keep the user charges low while on the other hand improving standards
and facilities.
In most regulatory spheres, the customer is the end-customer, e.g. energy,
telecommunications.
In contrast, in aviation, the ‘user’ is frequently identified as the airline.
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Airlines, themselves are operating in the red and are not in a position to remit the aero
charges to the airport.
The IATA figures below show the 2009 figures and forecast for 2010.
The IATA announced a revised outlook for the global airline transport industry with losses
of US$ 4.7 billion in 2009.This is significantly worse than IATAs forecast for a US$ 2.5
billion loss in 2009, reflecting the rapid deterioration of the global economic conditions.
ASIA PACIFIC
Carriers in this region continue to be hardest hit by the current economic turmoil and are
expected to post losses of US$1.7 billion. Overall; the region is expected to see a 6.8% fall in
demand but only a 4.0% drop in capacity.
The IATA revised its financial outlook for 2010 to unexpected US$ 5.6 billion global net losses.
The above figures shows airlines are going deep into the red and recovery is going to be slow.
Thus airlines will continue to default on aeronautical fees payments like landing,
ATC, facilities fees etc. which will in turn bleed airport operators who rely more on aeronautical
revenue.Govt.owned airports will continue to operate in the red due to the support from the
govt.Private operator will not be able to sustain on aeronautical revenue alone.Infact they will
have to make the non-aeronautical revenue model a major part of their revenue generating
source.
Objectives of study
To find out why airport revenue is fully dependent on the performance of the airlines.
To find out an alternate source of income for airports.
To find out ways to make right use of the available space in an airport.
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To make airports more customers oriented.
To treat travelers as potential shoppers.
To consider meeters and greeters as potential customers.
Scope and limitations of study
The scope is very limited because attitude of the people change according to time and
circumstances.
The study is restricted to Bangalore and the International airport and that too among 100
respondents.
The study is conducted for 45 days.
The study is restricted to a certain area which will not give an accurate picture of the entire
country.
1.2THEORETICAL BACKGROUND
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An airport is a location where aircraft such as fixed-wing aircraft, helicopters and
blimps take off and land. Aircraft may be stored or maintained at an airport. An airport consists
of at least one surface such as runway, a helipad, or water for takeoffs and landings and often
includes buildings such as hangars and terminal buildings. Larger airports may have fixed base
operator services, air traffic control and passenger facilities such as passenger check-ins,
emigration, customs, restaurants, lounges and emergency services.
AIRLINES:
Airlines are company or corporations who run aircrafts of different sizes as per the passenger
size in that particular route.Travellers prefer air travel over road, rail or sea because of speed,
convenience and long distances. These aircrafts land and take off from places called airports.
The airports provide all service for a smooth take off, landing and transit of the aircraft and
passengers. Due to the sheer size of the aircraft and its passenger capacity airports are generally
giant structures consisting of terminals, concourse connecting to aero bridges, skywalk etc,
runway, taxi track, fuel farm, cargo sheds, hangars etc.Other expenses is the power and water
requirement to run an airport. Operating an airport requires substantial investment and
continuous investment for retaining manpower and latest technology to keep up the security and
safety standards.
AIRPORT TERMINAL:
An airport terminal is a building at an airport where passengers transfer between ground
transportation and the facilities that allow them to board and disembark from aircraft. Within the
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terminal, passengers purchase tickets, transfer their luggage, and go through security. The
buildings that provide access to the airplanes are called concourses or terminal. Here the
passengers spend their time doing the formalities for boarding and then wait for the
announcement for boarding. Nowadays all airlines require the passengers to be available at least
02 hrs for domestic and 04 hrs for international flights due to the heightened security checks. So
a passenger has more time in his hand waiting at the terminals.
MEETERS AND GREETERS:
The people accompanying up to the airport or assembled to receive the passenger from at the
airport are called meters or greeters. In India where joint family system of living is still prevalent
every journey is a celebration and the whole family and sometimes the neighborhood turns up at
the airport for seeing them off or to receive the passenger.
REVENUE:
The revenue for operating an airport comes basically from the airline operating in the form of
landing, housing fees, navigational & ATC fees. But with the recession setting in airlines have
lost passengers resulting in low load factor. Airlines operational costs remain the same for that
particular route regardless of whether the aircraft is full, half or a couple of passengers. This led
to heavy losses for the airlines and many wound up operations. The remaining defaulted on
payment to the airport. The airport operators had no other alternative other than to bear the
losses keeping in mind the loss in load factor and also there were not many airlines operating
now.
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The latest survey published by Airports Council International underlines the vital role of non-
aeronautical revenues as a proportion of airports income.
The 13th edition of the ACI Airports Economic Survey shows that in 2007,non-aeronautical
revenues among airports worldwide was US$40.5 billion, or 48% of all airport revenues-a
proportion that remained constant when compared to 2006.
GLOBAL AIRPORT REVENUE-2007
Aeronautical Non-aeronautical % of non-aero revenues
42US$ billion 40.5US$ billion 48.3 %
Table-1.1
The survey also reports that airports held down airline charges to less than US$ 18 billion in
2007(of the total airline operating cost of US$488 billion, as reported by IATA),which means
that just 3.5% of airline operating costs are associated with airport user charges.
ACI said: “These aircraft-related revenues are below actual operating expenses incurred, and
therefore passenger fees along with airport non-aeronautical revenues are subsidizing the
aircraft-related charges.
THE SOLUTION:
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A planned, well researched method can be adopted by the airports from enhancing their revenues
from non-aeronautical to making them a main revenue generator and slowly reducing the
dependency on aeronautical revenue.
The revenue method from non-aeronautical methods can be broadly categorized into the
following:
RETAIL, REAL ESTATE AND SERVICES.
Suffice to say that all three are interconnected.
RETAIL:
Developing a concessions program that goes beyond industry standards requires thoughtful
planning, a strong customer orientation and hard work
This can be divided into two i.e., inside the terminal and outside the terminal or air side and land
side in aviation jargon.
1.2.1 INSIDE THE TERMINAL:
Already a proven business model exists at all airports worldwide inside the terminal.
Some of the airports have come up with innovative methods adapted to their region which has
generated good revenues for the airport.
Some ideas which can be adopted by an airport are:
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KIOSK APPROACH :
Some examples of new concessions with lower capital costs are –
- Coffee bars, snack bars (food concepts without kitchen).
- Retail kiosks like small gifts, dress accessories, ladies make up kits, sunglasses, perfumes,
books .
- Chair massages concessions:
They provide an open site for quick, relaxing tune-upside is required to be taken mainstream,
bring it out from behind closed doors, make it visible, affordable, accessible, fun and healthy.
- Sleeping units
Tenant shall use the premises to rent private rooms that include desk top or wi-fi,electrical &
data outlets and a bed and bath without any frills, focus being on cleanliness, promptness and
good service i.e., helpful staffs.
Advantage of kiosks:
- Flexibility, because no eviction necessary, short time concept, termination as per
convenience, partial termination if offered multiple space, relocation clause so that one can
move kiosks if needed like if an airline reduces or cancels service.
- Revenue structure can be same as normal concessions i.e., percentage of gross profit.
- Reduces administrative problems for airport property and accounting staff.
- Reduced capital cost:
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- Little or no capital improvements required of concessioners or airport. In tight credit market
you can accommodate entrepreneurs who don’t have access to large amount of capital.
- Short start up time, can be just rolled in compared to the time taken for design and
construction of a permanent structure.
- Abandoned spaces can be made good use of.
ADVERTISING PROGRAMS:
Airport advertising can reach an exclusive and upscale audience, and can be an important
complement to the standard media mix. With longer dwell times, airport customers can now
take the time to read advertisements. Modern airport advertising programs specialize in the
sales and maintenance of advertising sites at airports. High visibility spaces like the waste bins,
baggage trolleys,banners,moving walkways, escalators and even web sites which don’t spoil the
aesthetics can be used for short and innovative advertisements. The building facade on the
outside i.e., towards city side can be plain or built to keep up with the local flavor and regional
tastes. The airside face of the terminal building along with the gates, aero bridges, transfer
buses and other large vehicles used by the ground support equipment company can be used for
innovative, visible advertisements which can be seen by the arriving and departing passengers.
OPTIMIZE TECHNOLOGIES:
Technological innovations also offer opportunities for airport revenue enhancements.
Touch screen directories: Touch-screen airport directories provide passengers with a complete
directory and way finding system. Most systems include a directory of area hotels, car rentals,
restaurants and shopping, as well as area maps. Some listings are even linked to a floor plan
showing the current location as well as a guide to their desired destination. Also available are
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real-time flight information displays, including arrival and departure status and gate
information. Information can be viewed interactively with a touch screen interface. The touch-
screen kiosks require less space and provide tremendous customer services as well as another
revenueopportunity.
Wi-Fi applications: Airports that are providing wireless internet service for travelers find that
short term contracts allow them to assess their needs as technology and the needs of users
evolve. Under some agreements, the airport receives a percentage of the user fees.
Opportunities also exist to provide Wi-Fi for free, but also to sell advertising on the launch
page through the use of a simple “ad bar” at the bottom or top of the screen.However,this needs
to be nonintrusive and must avoid pop-ups.
iFIDS: Internet –based Flight Information Display Systems provide real-time airline
information through the use of the Internet, eliminating the need for information technology
investment and infrastructure. The cost-effective kiosks can be configured to display multi
media images and text messages offering a tremendous revenue potential.
Banners draped across the sky bridge or on the exterior of the terminal building are raising the
bar on non-aeronautical revenues and are quickly becoming the newest form of airport
advertising that gives “ownership” to a specific brand name. Furthermore, advertisements can
be used to improve the airport’s image and propose modern and creative ideas to travelers. In
Johannesburg, South Africa, advertising has been placed on unpaved airfield land to maximize
advertising revenues.
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1.2.2 LANDSIDE RETAIL OR REAL ESTATE:
Here lies a goldmine of opportunities if in possession of large amount of land
which holds true for a Greenfield airport which usually is sited in a sparsely populated area
with large tract of waste lands.
The following are some of the opportunities:
Commercial development and land use:
To optimize revenue generated from commercial sources, one should adopt policies and
practices that can unlock the considerable potential that exists within many airports to fully
develop and exploit commercial activities to increase revenue. A number of airports have
developed portions of their airport properties to accommodate nonaviation commercial
enterprises. The type of businesses found on airport property includes:
Industrial uses
Import and export
Manufacturing
Warehousing
Research and development
Cargo facilities
Bulk storage
Outside storage
Commercial uses
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Restaurants
Commercial office spaces
Hotels and motels
Recreational centers
Training facilities
Small business centers
Retail sales
Industrial businesses
Car rental agencies
Automobile dealers
Golf courses
Movie theaters
Recreational and training facilities
Airports may have opportunities to generate and sell energy and utility services to tenants,
nearby businesses or communities or regional utilities at a net profit. For example:
An airport could purchase utilities wholesale from the local utility company and sell the
utilities to tenants at the retail utility rates they would have paid the utility company.
An airport steam plant could be sized to produce a cost effective steam district to nearby
hotels or other large institutions.
Electricity from solar or wind sources could be generated on airport property to offset airport
electricity or costs, or be sold to the local electric utility and tenants. As restrictions on
emissions increase, local utilities may be willing to subsidize airport investment in alternative
energy equipment on airport property.
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PARKING REVENUES:
Parking revenues are the most significant sources of nonairline revenues at airport .Although
parking has long been a revenue source for airport operators, recent innovations provide further
opportunity to enhance parking revenues. some of the innovative ideas used successfully at
airports around the world are:
PREMIUM PARKING SERVICES:
Valet parking: Many airports offer valet parking that allows a customer to drop off their car at
the terminal curbside and upon the customer’s return, retrieve their car at this same location.
Valet services are typically popular among business travelers and can benefit airport operators if
vehicles are stored in underutilized portions of a garage.
Monthly or corporate reserved parking: Several airports sell monthly or corporate access cards
and guarantee that card holders can always find an empty space in the convenient parking area
reserved for their use. Card holders are charged a premium rate often a monthly fee to gain
access to the reserved space. Airports have found that this service is popular with patrons and
can generate significant additional revenues compared with standard rates.
Discount parking and loyalty programs: Private airport parking companies have offered
discount coupons and loyalty (frequent parking) programs for many years. Parking based loyalty
programs are similar to frequent flyer programs in that they offer repeat patrons reduced rate
parking. Alternatively, the frequent parking points can be applied to goods and services
available in the airport in the form of discounts on concessions.
Internet based parking reservation: In Europe airport parking patrons can use the internet to
reserve and pay for parking in advance of their arrival at the airport. In the United States, many
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private airport parking companies also use the internet to allow prospective customers to
reserve and pre-pay for parking.
Parking guidance system: To reduce the time patrons spend searching for an empty space
airports are installing changeable message signs activated by low cost overhead vehicle
detectors that clearly display space availability for each space .These guidance systems result in
better utilization of the available spaces, rather than requiring patrons to conduct random
searches across large floors or garages.
TERMINAL CONCESSIONS:
Although airlines are currently struggling with yields, labor issues, and rising fuel costs,
passengers are returning in record numbers. Today, airport shoppers are recognized as a
lucrative market and airport retailing is evolving to meet that market. Concession sales have
increased dramatically as airlines discontinue meal services and changes in airport security
require that passengers arrive early, consequently finding themselves with extra time in the
airport and being a captive audience to the products and services offered by an airport’s
concessionaires.
POTENTIAL CUSTOMERS:
The people accompanying up to the airport or assembled to receive the passenger from at the
airport are called meters or greeters. In India where joint family system of living is still
prevalent every journey is a celebration and the whole family and sometimes the neighborhood
turns up at the airport for seeing them off or to receive the passenger. Even though the entry is
restricted the meeters and greeters wait outside the terminal till the aircraft takes off. They
spend a great deal of time doing nothing other than waiting. Human psychology dictates that
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the meeters, greeters and passengers are in a state of sadness over the separation and travel
whatever the circumstances may be.A diversion in the form of shopping or entertainment will
surely go a great way in engaging the people and turning them into prospective shoppers or
customers. Every one cannot afford premium jewellery, apparel or electronic goods available at
the duty free shops inside the airport, but window shopping surely diverts the mind. This may
turn them into a future prospect for shopping as the airport experience will help in instant recall
of the brand and also the shop location immediately over other locations. Frequent travelers
won’t bother to revisit these places unless he has a particular thing in mind to buy. They too can
be turned into customers if promised with easy and fast shopping experience by offering
innovative and attractive marketing techniques.
Some of the format workable outside the terminal to attract customers is:
Shopping mall concept:
A shopping mall concept store outside the terminal will convert the people at the airport into
customers and bring in the footfalls. The airport needs to lease out the place to a reputed and
experienced entity in running the mall. Revenue can be worked out on a profit sharing method
instead of rent or fixed fees or minimum fees. This will give great flexibility to the mall
operator depending upon the turnover. Here one can add the airport employees amounting to
2000 to 4000 in numbers as customers some time or other. Small concessions in the form of
coupons, food pass with tie-ups with third party players will assure loyalty to the airport shops.
Multiplex:
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A multiplex on the outset may seem a losing business model at an airport but there is great potential
if an aeropolis or airport city is part of the plan. The passengers or people accompanying them are
certainly not going to visit the multiplex but as with any airport, the area surrounding the airport is
surely going to develop with time with commercial and residential projects. If an airport city is
planned, then the business in multiplex is assured with the right marketing and format.
Unused space:
Empty spaces meant for future development can be hired out for exhibitions, special events like
cinema awards, motor shows, fashion shows etc.
1.3 COMPANY PROFILE
BENGALURU INTERNATIONAL AIRPORT:
Bangalore International Airport Limited (BIAL), the owner and operator of the airport
is a public limited company, registered under the Indian Companies Act. Bangalore International
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Airport is an international airport serving the city of Bangalore. The airport is located 4 km
south of Devanahalli and is 40 km from the central business district of Bangalore 30 km from
the Bangalore City Railway Station and covers 4,000 acres. It replaced the HAL airport. For the
period of Apr–Nov 2010, it was the fourth busiest airport in terms of overall passenger traffic
and fifth busiest in terms of international passenger traffic. The airport handled about 9.3 million
passengers and had air traffic movements (ATM) of about 280 per day in the year 2009. The
airport is expected to handle 17 million passengers in the year 2015. The airport is host to 10
domestic airlines and 21 international airlines connecting the city to about 50 destinations across
India and rest of the world. The airport serves as a hub for Kingfisher Airlines and a focus city
for Jet Airways, JetLite, Indigo, Spice Jet , Go Air and Indian Airlines. The Government of
India has given BIAL the exclusive right and privilege to carry out the development, design,
financing, construction, operation, and management of the airport for a period of 30 years from
its opening date, with an option to extend the concession for another 30 years. No new or
existing airport will be permitted to operate as a domestic or international airport within 150
kilometers. The Government of India, represented by the Ministry of Civil Aviation, is
committed to equal treatment and non-discrimination of all international airports and to renew
the bilateral agreement constantly.
Ownership:
BIAL is a Public Limited Company under the Companies Act formed to build, own and operate
the Bengaluru International Airport. BIAL has been given rights by the Government of India to
develop, design, finance, operate and manage the airport for a period of 30 years from the date
of commencement of commercial flight operations. It also has an option to extend the right for
an additional 30 years .The airport project started as a public-private joint venture between