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NEWS Last modified on October 23, 2017

Cross-subsidies from hubs key to the sustainability of all gateways in airport networks

ACI World has released a Policy Brief on airport networks and the sustainability of small airports.

The ACI Policy Brief focuses on one specific management model: the airport network and the sustainability of airports with low traffic volume.

It provides an overview of the state of airport networks worldwide, based on a robust dataset and inventory of the world’s networks.

And it offers practical policy recommendations to ensure that airport operation and development is sustainable and beneficial to airlines, passengers, communities and national economies

ACI says that the Policy Brief proves that the sustainable operation and development of the world’s smaller airports "remains a challenge".

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For while the airport industry as a whole is profitable, financial statements show that as many as 66% of the world’s airports – most of which are small – operate at a net loss.

However, ACI believes that the airport network model is one of the options to overcome this challenge. but only if the bigger and more successful gateways in the group are able to cross-subsidise the smaller airports in accordance with the ICAO framework.

“Airport operators should be permitted to operate under a wide range of management models to serve their specific missions, their business needs and local circumstances,” says ACI World's director, Angela Gittens.
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“When a network approach is pursued, cross-subsidies from profitable larger airports are often key to the sustainability of smaller airports, which in turn provide essential benefits in terms of safety, social and economic development, and positive externalities to airlines users of the network.”

ACI World unveiled the new Policy Brief at last week's 27th ACI Africa/ACI World Annual Assembly, Conference and Exhibition.

You can read our comprehensive round up of the event and more about the new Policy Brief in the next issue of Airport World.

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