In the 1950s and 1960s, airports were seen as an inconsequential arm of government. Over the past twenty years, however, it has become apparent that airports can be run as successful and profitable businesses. Until now, there has been no defined economic theory within the industry.
"The Airport Business" provides an overview of the field, examining patterns of ownership and control of the world's largest airports. Rigas Doganis covers the key issues which will affect airport managers during the 1990s, such as privatization, the growing shortfall in airport capacity, and the need to develop new and innovative sources of finance.
Doganis analyzes the traditional cost and revenue systems that have developed for aircraft landing fees and passenger charges. He compares this with more recent structures, such as marginal (as opposed to average) cost pricing. The need for a commercial strategy and the question of how to maximize airport revenue from the various airport activities are also discussed.
"The Airport Business" is international in scope. There is a separate chapter devoted to systems practiced in the US, and a chapter on the difficulties experienced in the Third World. As the airport industry continues to grow, "The Airport Business" offers insight on how to overcome the major economic and financial problems it will confront in the 1990s.