Thesis on "Airport Operations KMIA"
Thesis 10 pages (2754 words) Sources: 10 Style: Harvard
[EXCERPT] . . . .
Airport Operations: Analysis of Miami International Airport KMIAThe objective of this study is to conduct an analysis of Miami International Airport from a business and operational point-of-view. This work will analyze the operating and business environment of Miami International Airport as well as analyzing the major issues and challenges faced by the airport and finally state conclusions and make recommendations.
The Miami International Airport (MIA) is a large hub airport with 15.4 million enplanements in 2005 and is 62% American Airlines Hubs and International Gateway. There are 130 gates at the Miami International Airport and parking capacity includes a 152 short-term parking garage capacity and a 7,499 long-term capacity. Total operating revenues for 2005 is stated at $442.5 million or $28.64 per enplanement with 52.4$ of the revenues from passenger airlines with total commercial revenues stated at $139 million and concession revenues stated at $72 million while parking revenues are stated at $34 million. (Dooley, nd, paraphrased)
I. ANALYSIS OF THE OPERATING AND Business ENVIRONMENT
The Centre for Asia Pacific Aviation reported on the first day of June 2009 that Miami International Airport, which is "...one of the key gateways into Latin American and Europe from America's South, reported a traffic increase of 5.1% year-on-year for April 2009." (Centre for Asia Pacific Aviation, 2009) While traffic levels declined through 2008 and the first months of 2009 it is stated that the "return to positive traffic was a welcome sign for the airport." (Centre for Asia Pacific Aviation, 2009)
Figure 1
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Miami International Airport Passenger Number Growth and Cargo Volume (May 2008 -- April 2009)
Source: Centre for Asia Pacific Aviation (2009)
Domestic traffic was reported to be weaker than international travel "with passenger volumes to U.S. destinations rising 3.3% in April, while international traffic was up 7.4%. Domestic and international passenger volume are roughly even, although the decline in passenger traffic during the recession has been more significant for domestic destinations." (Centre for Asia Pacific Aviation, 2009) Stated as reinforcing this trend is a shift of capacity "...from domestic from international markets by U.S. carriers, including American Airlines." (Centre for Asia Pacific Aviation, 2009)
Figure 2
Miami International Airport Domestic & International Passenger Traffic: Year to April 2009.
Source: Centre for Asia Pacific Aviation (2009)
Commercial aircraft movements fell 7.6% in April 2009 and total seating capacity is stated to have fallen approximately 0.8% which indicates that "carriers are operating fewer and larger aircraft at the airport and/or achieving higher passenger load factors." (Centre for Asia Pacific Aviation, 2009) However, the cargo segment's performance is described as "dismal...with volumes down 23.1% in April 2009." (Centre for Asia Pacific Aviation, 2009)
Reports state that IATA made the suggestion that "international air cargo has found a floor, stabilizing at around 20% and offering a glimmer of hope that there may be a recovery period around the corner." (Centre for Asia Pacific Aviation, 2009) Passenger traffic is stated to have declined approximately 1.2% over the first five months of 2009 with cargo declining 23.7% over the same period.
The top ten airlines which utilize Miami International Airport are the airlines shows in the following figure with accompanying capacity and frequency share.
Figure 3
Miami International Airport Capacity and Frequency Share: Top Ten Airlines
M
Source: Center for Asia Pacific Aviation (2009)
The top five international routes by capacity share to and from Miami are shown in the following figure.
Figure 4
Top Five International Routes by Capacity Share (% of total) to and from Miami
Source: Center for Asia Pacific Aviation (2009)
It is stated that the outlook for the rest of 2009 is somewhat dimmer than the results of April 2009 due to the factor of Swine Flu. Since Miami is a major entry point for traffic to and from Mexico it is likely that "airlines and service providers will have to wait longer for sustained passenger recover, while cargo remains depressed." (Center for Asia Pacific Aviation, 2009)
It is reported that the impact of the Miami International Airport and the impact on employment in the locality is approximately $13 billion with direct and indirect jobs in South Florida. Direct employment statistics for the direct employment of individuals by Miami International Airport are stated at 1,500 for the aviation department and in the category of 'other' 32,442 with a total of 33,942.
Figure 5
Economic Impact and Employment
Estimated impact
$13 Billion
Direct/Indirect jobs in South Florida
196,000
Direct Employment
Aviation Department
1,500
Other
32,442
Total
33,942
2001 Total Passengers
31.6 Million
Source: Department of Transportation Federal Aviation Administration Southern Region, Atlanta Georgia (2002)
The total passengers served by Miami International Airport are stated as of 31.6 billion. Miami International U.S. Airport rankings list the following rankings for MIA:
1st in U.S.
International Freight
3rd in U.S.
International Passengers
3rd in U.S.
Total Freight
3rd in U.S.
Total Cargo (Freight and mail)
11th in U.S.
Total Number of Operations
12th in U.S.
Total Passengers (Department of Transportation Federal Aviation
Administration Southern Region, Atlanta Georgia, 2002)
World airport rankings are stated for Miami International Airport as follows:
6th in World
International Freight
5th in World
Total Freight
5th in World
Total Cargo (Freight and mail)
19th in World
Total Passengers
19th in World
International Passengers (Department of Transportation Federal
Aviation Administration Southern Region, Atlanta Georgia)
A report prepared by the Department of Transportation Federal Aviation Administration Southern Region, Atlanta Georgia or specifically the "Record of Decision for Proposed New Parallel Runway and Associated Work" states: that the Summer 2002 Florida Economic Bulletin published by Enterprise Florida pointed to growth in the health, financial, real estate, professional and construction services industries.
Miami-Dade's diversified service-oriented economy relies on trade in services, such as business, legal and medical services. Analysis of the local industry includes that as listed in the following figure.
Figure 6
MIA - Local Industry Analysis
Industry Code Description
33122
Total Estabs
33126
Total Estabs
33134
Total Estabs
33166
Total Estabs
33172
Total Estabs
TOTAL
1988
AGRICULTURAL SERVICES, FORESTRY, AND FISHING
0
0.0%
3
0.2%
10
0.3%
11
0.3%
1
MINING
0
0.0%
0
0.0%
2
0.1%
0
0.0%
1
CONSTRUCTION
15
1.7%
88
4.4%
70
2.3%
4.7%
60
MANUFACTURING
44
5.1%
48
2.4%
48
1.6%
6.4%
41
TRANSPORTATION AND PUBLIC UTILITIES
21.8%
13.6%
4.2%
16.8%
WHOLESALE TRADE
46.0%
26.8%
7.4%
38.9%
RETAIL TRADE
70
8.1%
12.2%
12.3%
8.1%
FINANCE, INSURANCE, AND REAL ESTATE
16
1.9%
9.4%
16.2%
5.1%
SERVICES
14.1%
29.8%
54.3%
18.0%
UNCLASSIFIED ESTABLISHMENTS
11
1.3%
24
1.2%
38
1.3%
70
1.7%
21
Source: (Department of Transportation Federal Aviation Administration Southern Region, Atlanta Georgia, 2002)
There have been "significant increases in destination-Miami passenger traffic based on projected passenger-base growth originating from Latin America." (Department of Transportation Federal Aviation Administration Southern Region, Atlanta Georgia, 2002) In fact, Miami International Airport's expansion plans are stated to be "predicated to a large degree on forecasts of increasing passenger traffic. " (Department of Transportation Federal Aviation Administration Southern Region, Atlanta Georgia, 2002)
In a separate report it is stated that "...ambitious expansion plans" have been announced by American Airlines which will results in Miami serving as hub to both Latin America and the Caribbean." (The Metropolitan Center, 2003) The airline passenger market is stated to be particularly competitive in the Miami area since 'tourist destinations such as Miami Beach, key Biscayne, Coconut Grove and Downtown Miami are all desirable destinations which offer more in the way of "amenities and fewer distractions than airport area locations. There is stated to be a "niche market served by airport area hotels particularly in Miami." (The Metropolitan Center, 2003)
Airport security has been increased which has made check-in times longer. It is stated that "evening and late arrivals also lure travelers who desire ready convenience upon arrival." (The Metropolitan Center, 2003) The improvements that were made to LeJeune Road with the MIC construction displaced a "substantial number of hotels in the airport area..." ranging from "physically dilapidated properties to recently constructed three-star properties." (The Metropolitan Center, 2003)
The franchise restaurants are stated to be "consistent with the standard and homogenized mix of national chain airport hotels...that appeal to business travelers who desire certainty and standard fare." (The Metropolitan Center, 2003) Findings stated after conduction of a survey among area hotels are as follows:
(1) More than half the hotels surveyed noted that upwards of 80% of their guests are business travelers;
(2) Half the hotels surveyed responded that the typical length of stay was 1-2 nights;
(3) Over half the hotels surveyed cited occupancy rates at 80% or higher. The remainder were between 70-78% occupancy; and (4) The average room night stay starts at $108.00 with a median of $110.00. (The Metropolitan Center, 2003)
The following chart shows the commercial revenue categories for Miami International Airport as stated in the work of Dooley (nd).
Figure 7
Miami International Airport Revenue Categories
Source: Dooley (nd)
II. ANALYSIS OF THE MAJOR ISSUES & CHALLENGES FACED BY THE AIRPORT
Safety Issues
There are issues and challenges which the Miami International Airport… READ MORE
Quoted Instructions for "Airport Operations KMIA" Assignment:
Airport Operations An***** Miami International Airport KMIA
1.An***** it from a business and operational point of view, particularly considering the context of the topics discussed below.
a. what type of airport is it: Gateway, hub, local/regional, low cost, secondary, cargo, origin, destination, origin and destination, etc.
b. does it have any major operational issues.
c. what are the requirements of the main airlines operating in it.
d. what are the characteristics of its catchment area.
e. does it have any competitors.
f. what are its sources of revenue.
g. is it a private or public airport. is it a listed airport.
h. does it have to undertake any major investments and why.
i. how has the evolution of passenger and cargo traffic been.
j. how are its finances.
k. performance indicators.
l. other
2. What do you consider to be the major challenges being faced by this airport? And if you know its development strategy, is it still the correct one considering the current market conditions?
3. You should outline the key issues encountered by the airport and provide recommendations, alternatives and/or strategies that should be adopted in the short, medium and long-term. Remember there are no right or wrong answers but you should base your suggested recommendations and/or strategy on solid research(i.e. you may provide data, information obtained from articles, websites, etc.).
Marking Scheme
Analysis of the operating and business environment
30%
Analysis of the major issues/challenges faced by the airport
30%
Recommendations and conclusions
30%
Presentation/Language/professionalism/references
10%
The main aim of this assignment is to determine if the student can identify the factors that influence the airports from an operational and business point of view within the highly competitive air transport business. The student should demonstrate research into the specific airport selected as well as some research into the current state of the international aviation indusrty.
Lengthy introductions or historical information is not needed, neither is complex inclusion of financial figures. Instead the student should select the appropriate figures and data and discuss it by contrasting it with other airports or the industry in general.
Thank you very much and any questions sigmachi40@yahoo.com
How to Reference "Airport Operations KMIA" Thesis in a Bibliography
“Airport Operations KMIA.” A1-TermPaper.com, 2009, https://www.a1-termpaper.com/topics/essay/airport-operations-analysis-miami/38123. Accessed 6 Jul 2024.
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