"The importance of non-aeronautical revenues is a good indicator of the new model of business-oriented airport operators entering the industry and the emergent importance given to customer service"
-Frost and Sullivan, Market Analysts

The growing diversification of airports' revenue sources is an indicator of the evolving integration of airports into the economies in which they operate. As airports are becoming attractive business centres that aid in boosting urban economic growth, the trend is resulting in enhanced focus on customer-driven profiles and the quality of airport facilities. In recent times, airport traffic in big hubs has exhibited a notable increase as well as consolidation of air traffic away from secondary hubs and towards big ones which has drastically transformed the distribution of air traffic among airports.

As a result of these trends, the market is witnessing greater focus on commercial revenues from retailing, advertisements, ground transport and property development to generate profits. The government's changing perceptions of airports is that they are now being recognized as potential profit-making enterprises and opportunities offered by the private sector to finance airport development plans are being considered.

Airport Innovation therefore covers the ongoing demand to increase airport revenue through the avenues or airport retailing, advertising and commercialization. As well as looking at the airport financing strategies, there is a focus on how airports and their businesses are overcoming the specific obstacles and new issues faced by the industry.

Airport Retailing
According to the Airports Council International (ACI), its current member airports will see passenger numbers grow from 3.1 billion in 1999 to 4.6 billion in 2020. With new airports planned to open in this period, and the rapid growth of existing small airports, total passenger numbers according to the International Civil Aviation Organization (ICAO) will double in the next 12 years.

As well as this steady increase, regular airport travelers tend to have higher incomes and purchasing power, and unlimited discretion to decide on purchasing and business purchases which leads to further opportunities in airport advertising.

Airport innovation will therefore examine the latest opportunities to increase airport revenue:



Readership and Circulation
Airport Innovation goes out to a controlled and requested, BPA audited circulation of 35,000 copies per quarter. Some of the top decision makers include;

Airport Personnel

• Airport CEOs, CFOs, CIO's, CMOs
• Airport Presidents
• VP of Business Development
• Operations Directors/VPs
• Director of Airport Programs
• Heads of Safety and Security
• Purchasing and Procurement Directors
• Technical Directors
• Director of Community Affairs
• Facilities and Maintenance managers
• Airport Property Developers

Retail Personnel

Airport Retailers

Food and Beverage Operators

Management Consultants

Duty Free Managers

Developers and Management companies

Airport and Retail

John D. Kasarda is Kenan Distinguished Professor of Management and Director of the Kenan Institute of Private Enterprise at the University of North Carolina's Kenan-Flagler Business School. Dr. Kasarda has published more than 80 scholarly articles and nine books on aviation infrastructure, logistics, economic development, competitiveness, and commercial real estate. He is frequently quoted in The Wall Street Journal, The New York Times, Business Week, and international media. Dr. Kasarda has offered numerous executive programs on air logistics, airport cities, firm siting, and global supply-chain management to multinational firms such as FedEx, Lufthansa, DHL, Thai Airways International, Caterpillar Logistics, Prudential Real Estate, Bank of America and Deloitte & Touche and has been an advisor to airports around the globe. Under his leadership, the Kenan Institute was named the world's top air logistics educational institution by The International Air Cargo Association for its work on airports and industrial development.

Dr. Kasarda received his B.S. and M.B.A. (with Distinction) from Cornell University and his Ph.D. from the University of North Carolina. He has been the recipient of many grants and awards from such organizations as the U.S. Federal Aviation Administration, World Bank, National Science Foundation, National Academy of Sciences, the United Nations Development Program, and the U.S. Agency for International Development. Dr. Kasarda has been elected as a Fellow of the American Association for the Advancement of Science for his research on airport-driven economic development and a Senior Fellow and Trustee of the Urban Land Institute. He is considered the leading developer of the Aerotropolis concept defining the roles of aviation and airports in shaping 21st century business competitiveness and urban growth.

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Since 1999, Stephen Freitas has been the Chief Marketing Officer for the Outdoor Advertising Association of America, the leading trade association representing the outdoor medium. In his role, Mr. Freitas is an industry spokesman who advances the business of outdoor advertising with education and advocacy throughout corporate America. He joined OAAA after spending 10 years developing high profile marketing programs for Clear Channel Communications and Eller Media Company. As senior vice-president of marketing, Mr. Freitas was responsible for global branding, advertising, research, public relations and corporate communications, in addition to being heavily involved with business development initiatives. Prior to joining the outdoor advertising industry, Mr. Freitas worked as a media planner at two San Francisco agencies. Before that, he worked at Chevron, USA for eight years. Mr. Freitas holds an M.B.A. in marketing and advertising. He graduated from the University of California, Berkeley with two Bachelor of Arts degrees.