ABSTRACT
While the trend world-wide is towards greater emphasis on maximizing commercial revenues, the generation of aeronautical revenues from landing fees and passenger charges will contine to be crucial for several reasons. First, because for most airports aeronautical charges will continue to generate well over half their total revenues. They are particularly important for smaller airports and airports with little or no international traffic, where commercial revenues are likely to be less significant. Second, because it is the income source that can be adjusted most rapidly to meet any increases in costs or shortfall in revenues. Concession revenues from shops or other commercial sources can only be increased very slowly as traffic throughput builds up, as contracts are renegotiated or as new facilities are built and opened. In contrast, landing fees or passenger charges can, if necessary, be increased at a stroke though ideally with some months’ notice to the airlines. Thus when duty-free shopping for intraEuropean Community (EC) passengers is eventually phased out at European airports, the short-term solution to cover the revenue loss may well be sharply increased aeronautical charges. Over time other commercial revenue sources may be built up to replace intra-EC duty-and tax-free shopping.
