INDUSTRY BACKGROUND
The global airport services market consists of revenues generated from the operation of airports and related services. The services include providing flight support to business and commercial aircraft at airports, overhauling turbine engines together with the supply and repair of related components,licensing components from OEMs and assuming responsibility for their support in the aftermarket, designing, manufacturing and repairing of aircraft landing gear and hydraulic systems,training pilots and the provision of other services.
The market is valued at over £ 30 billion having expanded with a compound annual growth rate (CAGR) of 6.3% during the period between 2001 and 2005. Global economic growth is driving up the volume at airports, and passenger traffic has recovered from the threat of terrorism that led to drop in passenger traffic after the 9/11 attacks.
The leading segment in the market is the revenues generated from passenger air travel via airports, which accounted for $25.9 billion, or 86.3% of the total value. The remaining market value is due to processing of freight. “One reason for the dominance of the passenger sector is that marine transport is a viable alternative for some forms of international cargo traffic, whereas it is generally too slow to be competitive with passenger air travel.”( Datamonitor, 2006). Geographically, Europe has the largest share of the global sector with a 35% share of global revenues, equivalent to $17.3 billion. The US market remains more valuable than the expanding Asia-Pacific region, with a 30.4% share in comparison to 25.4%.
“Having previously been viewed as merely a supplement to the basic business of carrying passengers, companies in the global airport services ...