Flying high: Increasing international tourism has caused industry revenue to rise

The Airport Operations industry has expanded over the past five years. The industry features dominant players, with most aircraft movements going through Australia's major airports, such as Sydney, Melbourne and Brisbane. Airport operators generate revenue by charging landing and terminal fees to domestic and international airlines. Airports also receive rental income from airlines and retail stores for space leased on their premises. As a result, the volume of aircraft movements and passengers carried strongly correlates with industry growth.The depreciating Australian dollar and Australia's position as a prime tourist location have helped drive inbound tourist numbers over the past five years. more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Increasing inbound tourism to Australia has driven the industry’s expansion
  • The industry has been growing, despite sluggish domestic passenger volume growth
  • Increases in the number of passengers moving through airports will benefit industry operators
  • Industry Report - Industry Key Buyers Chapter

    The Airport Operations industry displays moderate concentration. Airports largely operate as monopolies in geographical areas due to the industry's significant capital requirements and regulatory barriers to entry. Most major international airlines fly to airports located near popular tourist destinations. Consequently, an increase in industry activity tends to benefit the major airports, increasing industry concentration. The industry's concentration is also due to the need to provide connecting flights, which encourages large airports to become regional hubs.Despite the size of Australia's major airports, many smaller, regional airports make a significant combined contribution to industry revenue. Ind...purchase to read more.

    Additional Insights for the Airport Operations Industry

    IBISWorld has determined the most important Key Success Factors for the Airport Operations are:

  • Market research and understanding
  • Superior financial management and debt management
  • Having a well-defined strategy/goal
  • IBISWorld analysts also discuss how external factors such as Air passenger movements through capital city airports and Demand from domestic airlines in the Airport Operations industry impact industry performance..

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    What's in this report

    What is the Airport Operations Industry?

    Industry companies primarily operate international, national or civil airports. Operations include services to air transport such as airport terminals, runways, air traffic control, aerospace navigation and baggage handling. Car parking services provided by airport operators are excluded from the industry.

    Industry Products
  • Air traffic control and navigation
  • Airport aeronautics
  • Rent and property
  • Support services
  • Other services
  • Industry Activities
  • Air traffic control
  • Air transport navigation
  • Airport baggage handling
  • Airport terminal operation
  • Refuelling and hangar rental
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Air passenger movements through capital city airports
  • Demand from domestic airlines
  • Demand from international airlines
  • Consumer sentiment index

  • Current Performance
  • Tourism trends
  • Airlines
  • Structure and profit
  • Participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Airline demand
  • Infrastructure upgrades
  • Second Sydney airport
  • Structure and profit
  • Table: Airport Operations Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Airport Operations Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • International Airlines
  • Domestic Airlines
  • Non-Scheduled Air Transport
  • Passenger Car Rental and Hiring
  • Duty Free Stores

  • Key Selling Industries
  • Audio Visual Electronic Equipment Manufacturing
  • Central Government Administration
  • Construction
  • Industrial and Other Property Operators
  • Investigation and Security Services
  • Retail Property Operators
  • Road and Bridge Construction

  • Products & Services
  • Airport aeronautics
  • Rent and property
  • Air traffic control and navigation
  • Support services
  • Other services
  • Chart: Airport Operations Industry Products and Services Segmentation

  • Demand Determinants
  • Consumer preferences
  • Capacity changes

  • Major Markets
  • Airlines
  • Retailers
  • Other businesses
  • Chart: Major Market Segmentation for the Airport Operations Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Airport Operations

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Airport Operations Industry

  • Industry Globalization
    Sydney Airport, Airservices Australia, Australia Pacific Airports Corporation Limited, BAC Holdings Limited, Perth Airport Development Group Pty Ltd,
  • Table: Sydney Airport - financial performance
  • Table: Airservices Australia - financial performance
  • Table: Australia Pacific Airports Corporation Limited - financial performance
  • Table: BAC Holdings Limited - financial performance
  • Table: Perth Airport Development Group Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Airport Operations Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Airport Operations Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A parking area for aircraft where they can be refuelled, boarded by passengers and loaded with cargo or baggage.
  • Casa
  • Stands for Civil Aviation Safety Authority, an independent statutory authority responsible for regulating civil air operations in Australia.
  • General Aviation
  • Includes all civil aviation activities other than scheduled and charter passenger and freight air transport.
  • Slot Management
  • A capacity management process used when there is insufficient airport infrastructure to meet demand. This involves airports giving airlines specific landing and departure times to maximise capacity.
  • Taaats
  • Stands for the Australian Advanced Air Traffic System, a flight information sharing system used by air traffic controllers.
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    Why buy this report?

    IBISWorld’s Airport Operations market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Airport Operations:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Airport Operations market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Airport Operations, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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