Airports should be seen as key economic centres
We can build ports and airports because hundreds of ships or airlines may pass through or fly over Sri Lanka. However that does not mean the ships or airlines will call over or land in Sri Lanka. The keyword here is creating markets.
File picture of Ratmalana Airport in the 1960s. Modern airports can be transformed to powerful economic centres.
The aviation industry and the tourism industry of today and tomorrow are much different than of yesterday. Tourism and the aviation industry complement each other – a symbiotic relationship. Sri Lanka needs to develop domestic and international airports into business hubs. Airports are economic centres.
Low cost carriers (LCC) will dominate the skies in the near future
There is a need to expand local markets to build sub-hubs at second tier airports.
Politicians called the port and the airport a white elephant project, for political gains. This political football with no strategic development plans or vision to execute the operations has led to selling these economic institutions. Every airport in the world will experience start-up challenges. So did the Dubai World Central airport (DWC).
Political objectives over economic objectives will end up with macro-economic problems. Short term measure will not give sustainable growth to the country.
Airports are now key nodes in the global economy – serving as engines of local economy development. These institutions should be managed professionally and developed into business hubs.
As an island, Sri Lanka needs to connect and keep up with the rest of the world. The aviation industry and the tourism industry of today and tomorrow are much different than what it was yesterday. Tourism and the aviation industry complement each other – a symbiotic relationship. The growth in tourism industry directly reflects onto the air transportation.
The role of today’s airport operators has also changed. If our airports want to attract new airlines into this country, it must commit to making marketing a top priority. Increase airports connectivity and enhance its attractiveness as a vibrant hub.
As the global economy expands and the balance of spending power shifts, the airport’s economic role is changing.
The aviation industry is a valuable transportation asset because of the direct impact transportation has on the national and international economies. Airports contribute billions of dollars per year to local economies and create thousands of jobs either directly or indirectly. Air travel not only connects people, but it connects economies to further develop the global economy. Airport development is linked with economic development.
Trends in airport marketing shows incredible value being unlocked in airports. Take Changi airport and Dubai international, two airports that have become thriving aviation hubs in addition to a large contribution of income to their nations. It is no exaggeration to say that the air route is the lifeline that each airport relies on, to survive and develop. Airlines are airports’ major clients; therefore, it is important that an airport knows how to market airports effectively among airlines to establish business partnerships.
With the development of economic globalisation, the route networks of airlines are continuously expanding and, at the same time, more and more airports are emerging all over the world. Airlines keep screening and comparing airports with new destinations while airports keep trying to host different airlines. As the global economic situation is not optimistic, airlines attach great importance to flight revenue and consider the air route planning from market conditions and economic benefits.
Some global airline hubs have relatively limited runways and slot resources. Therefore a number of airlines start to do market research among second-tier airports in the hope of finding new profit engines and new space for business expansion. It is not hard to see that these second-tier airports are facing brand new opportunities for development. Except the home base airlines, other airlines are usually less familiar with the markets of the areas where the airports are located than the airports themselves. Airlines attach great importance to the development of second-tier airports. If now a second-tier airport can provide professional and highly reliable market promotion, it is very likely that airlines decide to exploit this market. In this way, this airport can stand out among all its competitors, which is of great significance.
Passenger numbers will keep increasing every year. Take a cue from our neighbour – the Indian aviation market. The Indian aviation market is expected to grow to 1 billion passenger trips over the next two decades. This brings with it significant challenges with several airports already reaching full capacity. India is developing and expanding its terminals for low cost airline operations, which is the future. Plans of some airports include public transport interchange that could possibly incorporate a rail or other mass transit stations to connect
Sri Lanka needs to develop domestic and regional airports into business hubs. Our country has 14 domestic airports. It is time we develop some of these airports as an international airport for low cost carriers (LCC) operations. It is said, low cost carriers may dominate the skies in the future. All these developments will strengthen its competitiveness in attracting tourism, business and leisure traveller.
Hambantota, MRIA Airport is complemented by the nearby sea- port. With the expressway and railway linking from Matara to Hambantota, all these developments will lead Hambantota to become a business hub.
Easy access for transshipment for sea/air cargo, warehousing, storage, distribution, manufacturing, assembling, packaging, dedicated logistic centre, offers cost effective and faster logistics. A number of countries across the globe are considering building free zones to facilitate investors and business people to establish their business. This location (Hambantota) is ideal for an airport and sea port free zone with access to key markets of South Asia.
Today’s business success invariably calls for faster operational abilities and an environment that is conducive to growth. Position Sri Lanka as a regional logistics, services and distribution hub. This would minimise trade barriers and enable investors to import and export under good economic conditions.
For sustainable development and growth all these should go hand in hand – the ports, airports, industrial or free zones. This will also create mini airport cities which are called ‘Aerotropolis’, the frontier of the next phase of globalisation.
(The writer is a logistics specialist and can be reached at shennal.acr@gmail.com)