News headlines for the entire aviation industry have become vastly negative. The latest consternation report was released by ACI Europe, warning of nearly 200 airports facing bankruptcy by the end of 2020, if there is no additional governmental aid. Many of these gateways are regionals that are significantly affected by the crisis.
Airport success factors are a field of challenges for regionals
The major levers influencing the airport’s success, constitute great challenges for many regional airports in the long-term. The combination of market demand, customer and route network potentials, state-of-the-art infrastructure, high performance, competitive cost structure, low competition and diverse service and revenue portfolios set successful airports apart from those which are struggling. Caught in the circle of challenges, regional airports often have a hard time to overcome difficulties and implement individual success levers.
Thinking outside of the box is key to conquer challenges
The Corona virus pandemic has undoubtably intensified the burdens of regional airports. Thus, airport operators and investors are now at the brink of reinventing regional air traffic.
Regional airports can reach new heights in all markets by applying innovative, transformative and integrative business solutions. Together with a can-do attitude which faces forward and keeps customers in the focus of their actions, through strong and lasting business relationships, airport managements will be able to achieve sustainable and measurable results.
The author, Sascha Vogel, is a Consultant in the Solution Group Infrastructure and Operations. Also read his article on Airports en route to the “New Normal” – Rightsizing of infrastructures and operations
Further insights from Lufthansa Consulting’s aviation experts are available here