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Student able to:

Ȉ Explain how do airport generates revenues
Ȉ Compare the aeronautical and non-aeronautical
revenues
Ȉ Explain how airport services and facilities are
priced
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Ȉ Airport financial management is important to

manage the balance of operating revenues &
expenses.
Ȉ In general, revenues from the operation of airport
are used to cover airport's operating expenses.

Ȉ What means by airport expenses???

Ȉ What means by airport revenue???
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Ȉ Expenses means the cost or money that must be
spent for something.
Ȉ Expenses for airports m

 
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G. Capital improvement expenses

Ȉ Capital improvement expenses include costs of major
construction projects such as airside & terminal
expansion.
2. Operating expenses
 

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Ȉ Airport revenue is income that an airport receives from

its business activities.
 


Ȉ In business, revenue is income that a company receives from

its normal business activities.
Ȉ Usually from the sale of goods and services to customers.
Ȉ Some companies also receive revenue from interest,
dividends or royalties paid to them by other companies.
Ȉ Revenue may refer to business income in general, or it may
refer to the amount, in a monetary unit, received during a
period of time, as in "Last year, Company X had revenue of $32
million.Dz
Ȉ Airports revenue supports airports expenses &
provides for the operations, maintenance, and capital
improvements.
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Ȉ Airports generate revenue from its business

activities that can be classified into two categories,
which are:

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Ȉ Aeronautical = Related to aircraft operation
Ȉ Non-Aeronautical = Non related aircraft operation
 

  


 
 

 
 

 
Ȉ Landing Fees Ȉ Concession fees for Commercial
Ȉ Air Navigation Fee Activities
Ȉ Aircraft Parking & Hangar Ȉ Car Parking & Car Rentals
Charges Ȉ Rental of Airport Land, Space in
Ȉ Airport Noise Charge Buildings & Assorted
Ȉ Passenger Service Equipment
Charge(PSC) Ȉ Fees charged for Airport Tours,
Ȉ Security Charge (SC) Admissions etc.
Ȉ Ground Handling Charges
Ȉ Night flight fees
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Ȉ Aeronautical revenue is generated from aircraft

related activities in the airside area or airport land.
Ȉ Aeronautical revenue is mainly derived from landing
fees and aircraft parking fees, lighting and aerobridge
charges (paid by airlines).
Ȉ Landing fee is a charge paid by an airline for using
the runway.
Ȉ Parking fee is for using the tarmac and taxiway.


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Ȉ Non-aeronautical revenue is generated from non-aircraft
related commercial activities in the terminals and on airport
land.
Ȉ The commercial activities including:
Ȉ Concession fees (e.g., rentals and profit-sharing arrangements with
concessionaires such as restaurants and retail shops)
Ȉ Revenue derived from rental of land, premises and equipment (e.g.,
hotels, and airline cargo space and office space rent),
Ȉ Management of parking facilities

Ȉ **Concession is the payment that the owner of commercial activities in the

airport have to pay to the airport authority. Airport concessionaires (such
as restaurants, banking) typically pay rent for the space they occupy.
 

  


 
 


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The taxes/fees on my ticket helps
to support airports .
How?
 

Ȉ The portion of a ticket that is composed of taxes and fees

depends upon the airfare and the passenger's journey
distance

Ȉ Normally, airports charge a —assenger acility harges — 

& ecurity harge 
Ȉ PFC is a service charge for using the airport facilities & SC is a
service charge for using security facility.
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Ȉ PFC also referred as —assenger ervice harge (PSC)

Ȉ For example, airport in Malaysia, passengers are required to
pay a —assenger ervice harge (PSC) as well as a ecurity
harge 
Ȉ For Example:
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How are Airport

Facilities & Services
priced ?
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Ȉ Landing Fees - based on MTOW of aircraft

Ȉ Aircraft parking charges Ȃ based on Aircraft size
Ȉ Passengers charges/Terminal Fees - Based on Maximum
Ȉ Seating Capacity of aircraft
Ȉ Aerobridges Ȃ per embarkation or disembarkation.
Ȉ Hangar charges Ȃ rental monthly
Ȉ Navigation charges Ȃ per mile per aircraft within control zone.

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Ȉ Fee imposed based on each landing of an aircraft
Ȉ Usually the largest source of income at an airport
Ȉ Same rate for both International vs Domestic arrival
Ȉ Based on Maximum Takeoff Weight of Aircraft
(MTOW)

  ù  ù à

Ȉ DOW=Dry Operating Weight (aircraft basic weight)
Ȉ Payload=Passenger + Cargo
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Aircraft Parking Fees

Ȉ Charge per day (24 hours)
Ȉ Based on the Aircraft size Ȃwing span x fuselage
dimension.
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List of Fees and Charges applicable in Changi
Airport
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Passengers charges / Terminal Fees

Ȉ Imposed on scheduled and charter passenger
carrying aircraft that use the Terminal Building
Ȉ Normally one of the largest sources of revenue for an
airport
Ȉ Separate rate for International versus Domestic
Arrival
Ȉ Based on Maximum Seating Capacity of the Aircraft
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Ȉ Hotel Ȃ building rental

Ȉ Offices Ȃ to airlines and businesses monthly rental sq ft

Ȉ Rental of check in counters - per counter per flight

Ȉ Car parking Ȃ per car per hour

Ȉ Retail shop outlets - rentals monthly based sq feet size of the

retail outlet Œ
  
   

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G. The airport revenues are derived from ____________ and

__________________`.

2. Aeronautical revenues are come from______________ while non-

aeronautical revenues come from___________

3. Aircraft parking are charged per hour and calculated based

on aircraft sizes which are _________ X ________.

4. The format to calculate the landing charge of an aircraft is

based on the aircraftǯs weight or MTOW. MTOW is stand for
____________________________-.