Thursday, November 15, 2012

Airport and Airport Terminals dedicated for Low Cost Carrier

HONG, Seock-Jin, Professor at BEM(Bordeaux Management School)

Low cost carriers (LCCs) market share is increasing fast in Korea. According to recent data, LCC penetration exceeded 41.6% in domestic routes, only 2.1% in 2006, and 3.6% in international routes in terms of aircraft movement. It would be 25.9% (between Jan. to Mar 2012) in the world. The number is increased three times more than 2001. Especially, in South-east Asia, the penetration rate is so higher (50.9%) than other region, 38.5% in Europe, 30% in North America, and 24.9% in Asia-Pacific region.
 

The role and weight of LCC is changing implies to more demanding terminal or airport dedicated for LCC (Table 1). In France, the air transport demand in regional airport is, absolutely, decreasing because of continuous expansion of high speed train and highway. To response decreasing demand, Marseille airport had built a terminal dedicated for LCCs. High speed train and rail in France was launched in 1981 between Paris and Lyon, in June 2001 between Lyon and Marseille. It means only 3 hours are enough to travel between Paris and Marseille (783 km) with 261 km/h. Marseille airport renovated cargo terminal to LCC terminal to host more LCC with low user charge at airport. Km). LCCs terminal attracts more international passenger while domestic passenger decreases. Bordeaux airport open their LCCs terminal in 2010 in facing the connection high speed rail between Tour and Bordeaux in 2016. The terminal impacts on demand positively especially led by LCCs.
 

Lyon Saint-Exupery airport newly opened at outskirt of Lyon in 1987, six years after had launched high speed train. However, the airport is not only transport terminal for only air but also multimodal terminal including high speed train terminal and access to highway within 5 minutes. Furthermore, in 2008, Lyon airport modified cargo terminal to LCCs terminal to invite more LCC as a regional hub to connect the most frequently other cities in Europe. Ryanair assigns 4 B737s at Bremen airport in Germany using their own terminal, and connects 18 cities in Europe. While Ryanair uses the terminal, passenger and carrier can reduce their cost from 70 % to 25%. The terminal provides short moving distance with only one story building, cut parking charge, and other creative idea to lower the cost.
 

Not only small and medium sized regional airport but large hub airport, also, provides LCCs dedicated terminal, such as Amsterdam airport. Amsterdam airport allocated some gates only for LCCs. A new terminal dedicated to low cost carriers has opened on Oct. at Kansai Airport in Osaka, western Japan. The terminal is a hub airport for Peach, one of LCCs in Japan. Narita airport in Tokyo announced to open LCCs terminal in 2015. In Tokyo, there is one airport (Ibaraki airport) dedicated to LCCs. The airport is located about 85 km north from Tokyo. Skymark Airways provides 5 flights per day to Kobe, Sapporo, Okinawa (summer schedule), and Spring Airlines, Chinese LCC, 6 flights per week to Shanghai.
 

In Korea, there arent LCCs terminals or airports. Once Cheongju airport had been considered LCCs airport. But the airport had disadvantage than Gimpo and Incheon international airport in terms of geological location. It is time to decide to build LCCs terminal in Incheon Internationla airport to compete with rival airports in Japan and China. 

Table 1 Airports or Terminals dedicated for Low Cost Carriers
Airports or Terminals
Time to open
Airlines
Singapore, Changi Airport-Budget Terminal
Mar 2006
Tiger Airways, Cebu Pacific
Malaysia, Kuala lumpur Airport –LCCT
Mar 2006
Air Asia, Air Asia-X, Cebu Pacific
France, Marseille Airport-MP2
Oct 2006
Ryanair, easyjet, Jet Air Fly, Jet4you, Pegasus Air
Germany, Bremen Airport
Sep. 2006
Ryanair (dedicated terminal)
USA, Austin Airport
Mar. 2008
Viva Aero Bus
France, Lyon Airport
Apr. 2008
Easyjet
France, Bordeaux Airport-Billi
Mar 2010
Ryanair, easyjey, Vueling, Jet4You
Australia, Melbourne Airport-T4
Nov 2007
Tiger Airways
The Netherlands, Amsterdam Airport
-
Allocated at an existing terminal-9 LCCs
  Source: Airline Business, Dec. 2007 and internet sites of Airports

 

Figure 1 Billi Terminal at Bordeaux Airport Source; http://www.bordeaux.aeroport.fr/

Figure 2 Ibaraki Airport near Tokyo

//End//

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