ABSTRACT
Airport performance indicators look fairly simple at first glance but understanding the performance of airports requires a good understanding of performance indicators that contain hidden complexities. This chapter looks at airport operations from an economic angle. How can we measure and rank airport performance, and what are the cost drivers for airport operations? How do airports generate income and how do airports plan their capacity towards the future? Airports are capital intensive entities. The costs of constructing runways, taxiways and aprons are immense, as this infrastructure needs to be long, large and strong enough to carry heavy aircraft. Airports are not allowed to make profits on their core activity, i.e. handling aircraft and passengers. The Chicago Convention stipulates that airports must provide their handling services against nominal cost. But airports are free to determine how high or low these nominal costs are.
