Introduction
In aviation studies, a thorough understanding of airport management and operations is critical since these topics directly relate to safety, security, and performance concerns. It is a multifaceted process that covers aircraft ground handling, cargo operations, and the potential impact of these issues on the social and economic aspects of the business. Ultimately, the current paper overviews the primary principles and challenges of airport management and operations.
Airport Operations Overview
Most contemporary airports are complex self-sustaining facilities that cover processes in ground handling, airspace traffic, communication with passengers, repair works, and maintenance. All of these operations are necessary to ensure the highest level of security and services. Moreover, the optimization of these processes enables improved logistics and increased passenger and cargo load (Szabo et al., 2022). Some of the operations in this area include facility security, ground location maintenance, aircraft repositioning, scheduling, baggage handling, and other activities (Szabo et al., 2022). On the other hand, if the airport fails to optimize these processes, it has a negative impact on the facility’s productivity, longer delays in traffic management, and potential hazards. Consequently, operations concerning airspace are as equally critical due to their impact on air traffic. For instance, direct communication with pilots concerning take-offs and landings, scheduling changes mid-flight, and maintenance of critical infrastructure, such as runways and taxiways, are essential in the aviation industry (Young & Wells, 2019). Thorough attention to these processes allows facilities to avoid traffic congestion, accidents, and scheduling mistakes.
Another airport operation that is continually becoming more advanced is information management. Digitalization allows modifying a large number of essential processes, such as check-ins, boarding, navigation, screenings, border control, and other services concerning customer experience (Rajapaksha & Jayasuriya, 2020). Moreover, this approach to information management allows airports to improve overall security and protect passengers’ privacy (Rajapaksha & Jayasuriya, 2020). In summary, all airport operations are critical to ensure functional infrastructure and high-quality services.
Ground Handling and Facility Security
Ground handling is the first and one of the most significant areas of airport management and operations. It refers to all processes and services concerning passengers and aircraft on the ground level. For instance, it includes aircraft repositioning, interaction with customers, check-ins, baggage handling, and multiple other activities (Young & Wells, 2019). Each of these processes is essential for functional airport management and ensuring the safety of employees and passengers.
A significant part of ground handling is facility security, particularly concerning checkpoint operations. Janssen et al. (2020) note that airports in the United States allocate approximately 25% of their operating costs to checkpoint security and passenger screening. The country has been increasing spending in this area since 9/11 attacks, implementing new frameworks and approaches (Janssen et al., 2020). However, it is critical to note that complex security procedures are not necessarily effective due to longer operation times that hinder overall checkpoint throughput. As a result, innovative systems that are simultaneously fast and thorough are necessary. For instance, Janssen et al. (2020) propose a selective framework that optimizes service lanes based on passenger information, such as the amount of baggage. This approach provides a reliable risk management strategy but does not hinder the checkpoint throughput. Ultimately, although facility security is critical in ground handling operations, it is essential to discover new ways of optimization and improvement.
Health Concerns and Security
COVID-19 has significantly changed multiple airport operations, forcing the facilities to adapt to new realities of health monitoring, screening methods, and other approaches to minimize infection risks. As a result, many airports implemented new policies, such as mandatory social distancing and improved ventilation (Tabares, 2021). Moreover, some of the innovative regulations remain relevant even after the COVID-19 pandemic. For instance, Tabares (2021) claims that new risk management frameworks, including public health corridors (PHC), are effective systems that have a minimum negative impact on facility performance. In other words, they protect passengers’ health and are not detrimental to overall passenger traffic capacity (Tabares, 2021). Hence, it is plausible that many airports will remain using risk management frameworks to improve health security.
Government Regulations and Air Cargo
Airports globally are some of the most complex and vulnerable infrastructure elements. Air traffic is essential for logistics and effective supply chains, but it is also susceptible to congestion, exploitation, and accidents. For this reason, most governments impose strict safety regulations for ground handling and, particularly, airside operations. The international standards are proposed by the International Civil Aviation Organization (ICAO), but many countries provide additional guidelines and rules (Young & Wells, 2019). In the United States, the Federal Aviation Administration (FAA) is the national organization that covers certification, regulates air traffic control systems, and provides assistance to airports (Young & Wells, 2019). Moreover, the institution classifies all facilities based on the National Plan of Integrated Airport Systems (NPIAS) and allocates funding according to the airport’s status (Young & Wells, 2019). The complete set of rules can be found in the Federal Aviation Regulations (FAR) document, consisting of more than 100 chapters of mandates and legislative recommendations regarding airport management and operations (Young & Wells, 2019). In summary, the aviation industry is heavily regulated due to elevated risks to passengers’ health and safety.
Moreover, the constraints on air cargo exist as well because unregulated air logistics might negatively affect the whole industry. At present, the rules are relatively simplified due to the consequences of the Air Cargo Deregulation Act of 1976 and the Airline Deregulation Act of 1978 in the United States (Young & Wells, 2019). However, some of the constraints on air cargo regarding air traffic, taxes on shipments, and overall tonnages are still present to enable more active competition and provide additional safety guarantees (Young & Wells, 2019). In other words, the American government is actively involved in the aviation industry, establishing rules for air traffic, cargo security, and other critical areas of airport management and operations.
Economic Impact
All examined processes in the aviation industry, including those regarding safety and air cargo, have a considerable emphasis on performance and economic impact. After all, airport management is a business, and the primary objective is to generate profits by gaining a competitive edge in the industry. In this discussion, it is critical to separate the airports managed by local governments and private companies in the United States since they might have different goals and circumstances (Young & Wells, 2019). For instance, private airports have additional responsibilities and financial concerns that are typically covered by the government, meaning that these facilities need unique approaches to business (Young & Wells, 2019). Airport privatization has seen a notable increase in popularity in the 21st century, particularly after the 9/11 events, the 2008 financial crisis, and the 2020 COVID-19 pandemic (Graham, 2020). The research demonstrates that this tendency has a positive impact on the competitive environment in the industry and is considerably effective in risk management (Graham, 2020). In summary, airport privatization is a relevant theme in the topic of finances and management.
The other side of the aviation industry is national economic growth, and the primary contributors to this development are airports managed and sponsored by the government. Figure 1 below presents an overview of the relationship between air transport and the economy.
As seen from the chart, airport management is a complex process that includes revenue generation from multiple sources. For example, supply-chain effects imply the profits from nearby hotels, car rental services, terminal retailing, and other indirect sources of income as economic impact (Zhang & Graham, 2020). These factors are typically referred to as commercial activities, resulting in approximately 45% of global airport revenue (Zhang & Graham, 2020). Terminal retailing, in particular, is a notable driving force of tourism and commercial income.
Additionally, airports have a positive impact on economic growth due to direct employment. Recent research shows that the industry supports more than 14 million jobs globally and accounts for approximately 2.3% of the world’s GDP (Zhang & Graham, 2020). Moreover, the spillover effects imply that functional air transport enables more effective long-distance interactions, having a positive impact on other industries (Zhang & Graham, 2020). In summary, airport management directly relates to economic growth on multiple levels, including private companies, state-controlled facilities, and national economies.
Airport Security and Associated Challenges
Airports belong to the group of critical infrastructure and, therefore, require numerous regulations to ensure safety. In general, airport security can be classified into two primary areas – physical safety and information management. The former concerns potential issues that could emerge due to inadequate screenings and checkpoint controls. The global community carefully moderates this type of security, and this trend became particularly relevant after the 9/11 terrorist acts (Ford et al., 2020). As Ford et al. (2020) note, “The attacks highlighted the various problems with aviation security at the time,” implying the necessity to improve airport physical safety systems. In fact, at that time, many airports allowed passengers to carry liquid and sharp items on board, while not explicitly demanding IDs (Ford et al., 2020). At present, the security measures are significantly stricter, and airports realize the utmost significance of thorough screening procedures. Ultimately, while it might be inconvenient for passengers, security protocols are critical in airport management.
Similarly, information security is another crucial aspect of most airport operations. This issue is particularly relevant at present because the digitalization of airports leads to multiple challenges in data and privacy protection. Tedeschi and Sciancalepore (2019) note that the shift to smart elements of critical infrastructure (CI), such as power plants, airports, and military objects, is a highly complicated process. In other words, the implementation of cloud computing and the Internet of Things (IoT) that could potentially improve organizational performance should be more regulated in airports than in other business companies (Tedeschi & Sciancalepore, 2019). It is a relevant challenge for airports because digital innovations could enhance information management operations but also make the system more vulnerable to cyberattacks. For example, location exposure, jamming, privacy breaches, Denial of Service (DoS) attacks, and traffic manipulation are highly destructive threats that could overload the facility’s digital processes (Tedeschi & Sciancalepore, 2019). Ultimately, airports must carefully consider the potential challenges in physical and information security to minimize the risks.
The mentioned challenges could be classified as both local and state threats due to their impact on airport security in general. Regardless of the passenger throughput and location, facilities need to ensure a regulated environment and adhere to necessary safety protocols established by the FAA (Young & Wells, 2019). Nevertheless, attention to security in local and state airports usually differs, and it is critical that facilities do not ignore the regulations due to lower passenger numbers in more rural areas. Ultimately, airport security is subject to government regulations at all levels due to the utmost significance of critical infrastructure.
Cargo Operations
As mentioned before, cargo operations and air transport logistics are regulated processes that require attention both from the facility and the government. Nevertheless, air cargo is a critical industry that plays a crucial role in global trade and significantly contributes to world GDP (Hamdam, 2020). Moreover, cargo activity is one of the most illustrative KPIs that show the workload of the facility and its impact on economic growth. In the United States, the airport in Memphis, Tennessee, is the busiest facility in terms of cargo tonnage, partially because it is the home location of FedEx (Young & Wells, 2019). Freight and mail cargo operations are notable indicators of the airport’s performance.
Additionally, FAA can change the classification of the facility based on the KPIs, including cargo tonnage. Besides other requirements, the airport must transport 500 million pounds of cargo weight or more annually to meet the criteria of a national airport in America (Young & Wells, 2019). It is significant for airports to strive toward these measurements due to additional funding and support that the federal and local governments allocate to national airports. In summary, cargo operations remain critical in airport management due to their impact on economic growth and the facility’s status.
Impact of Air Cargo Disruptions on the Supply Chain
Although cargo operations are crucial, any potential disruptions in logistics can lead to notable financial losses. In some cases, even the most durable risk management frameworks cannot protect firms from unexpected occurrences. For instance, the COVID-19 pandemic has negatively affected most air cargo operations globally for an extended period of time, leading to an approximately 3% world GDP decrease in 2020 (Xu et al., 2020). This crisis in the air cargo industry occurred due to the disruption of global supply chains (GSCs) and led to several adverse side effects. Namely, it created shortages in employment in the aviation sector, significantly restricted the performance of commercial air transport, and impaired global trade due to border regulations.
While COVID-19 is an outlier in terms of air cargo disruptions, other local events, such as regional wars and natural disasters, can negatively affect supply chains as well. To prevent and mitigate such disturbances, airports and logistics companies need to develop effective risk management frameworks. Xu et al. (2020) emphasize visibility and responsiveness as two primary parameters that can help facilities quickly recover from air cargo disruptions. Moreover, supplier diversification, vulnerability assessment, capacity redundancy, alternative sourcing, and other techniques are practical measures that improve airports’ flexibility in emergency situations. Ultimately, local and global air cargo disruptions that significantly affect supply chains are not frequent occurrences, but the facilities should be reasonably prepared for such circumstances to mitigate financial losses.
Conclusion
The current paper has thoroughly examined some of the most relevant issues in airport operations to highlight the utmost significance of effective management in the aviation industry. Since airports belong to the group of critical infrastructure, it is essential to adhere to legislative regulations, security protocols, and risk management frameworks to minimize potential human and financial losses. Lastly, airport digitalization presents new challenges for the facilities that must adapt to innovative technologies and ensure information management safety.
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