Gatwick Development Plan - Case Study Example

Gatwick development plan Student’s Name: School Affiliation: Introduction Gatwick airport became an airdrome back in the 1930s; however, the airport was officially opened in 1958 with a capacity of 186,000 passengers per year (Rudolph, 2007). Since then, the airport has increased its passenger’s capacity and it can now serve around 38 million passengers per annum. However, the airport operates 24 hours a day and 365 days a year. The airport is the globe’s most efficient single runway airport, Moreover it is the second largest airport in the United Kingdom. Exceptionally, it is the home to a scheduled, airlines as well as charter lines. Presently, around 50 airlines function from the airport including British airways, Vietnam airlines, emirates, monarch, Norwegian air, easy jet, Thomson, and virgin. The airport offers connectivity from the regions to London, along with significant numbers of passengers who travelling on aurigny and easyjet. It also accommodates some of the away-based operations of airlines, for instance Norwegian, airbarlin, ryanair. In addition to the leisure operations of the major airlines, the airport is now offering emergency services to the Far East, Vietnam airlines, and Turkish airlines will accomplish this (Neath, Hulse & Codd, 2014). The airport serves more destinations than any other airport in the United Kingdom and is known to be the best-connected point-to-point airport in the continent. The airport is owned by a collection of international investment funds. However, global infrastructure partners are the largest shareholder. Destinations and airlines Gatwick has been competing vigorously since the change in ownership in December 2009. We have been winning new routes to the UK’s key trading partners and providing direct connections between London and high growth economies. Since 2011, Gatwick has attracted new routes to Indonesia, Turkey, Vietnam, China, and Russia (Gatwick airport trials, 2002). We continue to provide connections to closer destinations with new routes to Germany, Iceland recently announced, and we have seen growth from some of our established carriers including easyJet and Norwegian Air Shuttle. Gatwick’s improving connections should help to maintain London’s role as a major hub. Development plan As an airport-operator, it has allowed development rights that carries out other forms of development associated to the provision of facilities and services at the airport. GAL is however required to consult with the council prior to carrying out its development plan. The 18th part of the permitted development order of 1955 describes (Neath, Hulse & Codd, 2014) The permitted development plan by an airport operator, includes building, and structures up to a particular stated size and height. In response to the consultation of GAL concerning it development proposals, the council will determine the proposed use to make sure that the development is associated with the provision of services as well as facilities at the airdrome. Location of the proposed expansion The proposed development site must lie within the boundaries of the airport that is in an airside location situated on the eastern side of the airdrome. The location of adjacent to and is on the south of the southern terminal. The site comprises of the built up area, of which majority is: Current buildings and structures Existing hard surface regions Stands Taxiways Access roads Some of the closest residential properties to the proposed expansion are located To the eastern side of the site that is beyond the railway line which is approximately 1 km from the center of the site To the southern site along the Radford road which is about 1.4 kilometers from the center of the site To the north beyond the airport way located 0.7km from the centre of the site. The proposed expansion would be enclosed as well as surrounded by the other development including The present south terminal building located on the north The railway station on the north eastern side The main line railway of car parking in the eastern side The airfield aprons, taxiways as well as other regions of airfield that paves to the south and west The nearby waterway to the development site is the Gatwick stream that runs to the eastern side of the site this stream is a tributary of river Mole, which flows along the eastern side of the airport. However, according to the Horney flood model, the proposed site is a part of the area affected by the EA floods. As it would be expected, most of the airports, sites are relatively flat and they lie at an elevation of approximately 59 m above the ordnance datum. Need for development The development proposal partly has no material impact on the passenger or aircraft capacity of the airdrome. However, it is partly required as part of the current operational improvements. Even though some of the proposed developments will increase the capacity of the airport to hold more airplanes and passengers, the major driver behind the development is to upgrade the conventional infrastructure. The present south baggage handling system is capacity constrained; fragmented; has many single points of failure and therefore does not meet the HSSE requirements. The development improvements are required to enhance the flexibility band functionality. Most of the systems in the airport date back to the b1970s and 1980s and it is becoming increasingly hard and expensive to maintain (Rudolph, 2007). In the constructive engagement, Gatwick airline community stated clearly that they expected their services in the southern terminal to be similar to those in the northern terminal despite the fact that it is 50 years old. Therefore, they expect an equal level of function ability as well as performance as the north terminal offers. These are some of the major matters that need to be addressed Check-in Baggage screening System functionability HSSE Cost efficiency Make-up positions The baggage and pier building is the major element of the development proposal. The proposed structure would be a rectangular block, and would be adjacent to the south of the south building terminal. It will be approximately 150 meters in length and 60 meters in width. The structure would comprise of steel frames with concrete slaps. Forecasts reveal that an additional capacity at Gatwick will be very attractive to passengers. The alternative for a wider spaced runway at the airport would generate a double of the present economic benefits. The present runway at the airport is operating at over a capacity of 85%, therefore leaving a limited space for further development in ATMs. By the year 2030, the airport is expected to have a higher number of passengers, however, through larger planes , higher load factors as well as peak increasing from 35 million in 2016 to 45 million, which portrays the limit of the current runway capacity. According to the airport commission forecasts, across the full range of situations passenger numbers might reach these capacity by 2030 (Neath, Hulse & Codd, 2014). Additional runway for the Gatwick airport that will provide capacity The construction of a new runway will allow the airport to allow the airport to hold a higher capacity of planes leaving and arriving into the airport. Keeping in mind that the number of passengers, the number of airlines being served by the airport will also increase in the future, construction of a new run way will allow the airport to hold a higher number of airplanes and passengers (Gatwick airport trials, 2002). The new runway will provide enough capacity in the south east therefore meeting the forecast demand for access to southeast and London by 2040. Moreover, the expansion of the airport will offer a more capacity. The construction of an additional runway would increase the number of people in the 57dBA noise contour in 2030 by approximately 4000 as well as the wide space option by approximately 15000. Therefore, the development of a new runway at the airport would negatively affect the areas around the airport that is affected by noise pollution (Rudolph, 2007). Keeping in mind that by 2030, the number of airlines being served by Gatwick will increase by 20%, the noise pollution to the residents that live near the airport will also increase therefore making life unbearable in the area. To reduce this impact of noise pollution to the residents near the airport, it can apply a noise action plan that consists of steps that will be taken to minimize the level of noise pollution, that could lead to a more peaceful life for the residents of east Sussex and west Kent. The proposed plan will: Explore other innovative techniques that minimize noise pollution, For instance, airport continuous descent technique. In such an approach, airplanes use less thrust by descending and gliding at a continuous rate. This approach ensures that aircrafts high above the ground for a longer time and produces less noise. Prior to the implementation of the above techniques of reducing the noise pollutions to the immediate residences of the airport, the airport officials will consult the residents of all the measures above. Moreover, the airport is exploring the use of rotating respite, which can benefit more than 12000 residents (Gatwick airport trials, 2002). However, according to the airport officials, the previous endeavors of reducing the noise pollution to the residents were reiterated too, and over the past 2 decades, the airport has successfully managed to reduce the area affected by the noise from 95 km² to 85km². According to the airport, 99% of the aircrafts that are served at Gatwick have engines that are very quiet. This was enabled by the initiative of charging less to the quieter aircrafts. However, airlines such as the easy jet that are still using airplanes such as the airbus 320 series that produces ha higher pitched whining noise are urged to purchase airplane that produce lesser noise by 2030. SWOT analysis Strengths Gatwick has managed to establish itself as one of the largest as well as most effective airports in the United Kingdom with the largest fleet of long haul. However, the airport also serves short haul airlines. Due to its large number of passengers and airlines served by the airport, it is able to yields high profits and revenue. To some extent, the airport has managed to dominate the United Kingdom’s market. Its large number and infrastructure attracts many passengers and airlines. The airport can accommodate large airplanes therefore attracting airline companies with large aircrafts. Moreover, the airport is served by experiences business units. Currently, the airport is growing at a very high rate and is preparing for the future by using the latest form of airport technology (Rudolph, 2007). Weaknesses The major weakness of Gatwick airport is competition it gets from the other airports in the United Kingdom. Based on the civil aviation authority that reviewed the market power of the airport, Gatwick has substantial market power. Some of the reasons responsible for its substantial market power include high loan rates, poor investments in research as well as development and the general market competition from other airports. Opportunities The airport has various opportunities; however, most of these opportunities can only be exploited after an upgrade of the systems of the airport. The number of airlines is increasing day by day, keeping in mind that the airport is among the largest and most efficient in the unit kingdom, most of these new airlines will require an airport to serve them. Threats The airport has various threats, they include tax charges which are expected to rise, global economy, rising cost of raw materials and government regulations Pricing strategy Aeronautical charges at Gatwick airport needed to deliver the scheme are expected to rise to a range of £14 to £ 17 compared with the £919 currently. This competitive pricing is achievable because of the low cost of the scheme. Optimal phased delivery system as well as the low delivery. In the context of setting this price, the airport is also considering the delivery of lower prices that are affordable and the same time ensuring debt obligations can be met comfortably as well as achieving appropriate returns for the shareholders. Airline charges Presently, Gatwick is suggesting relatively modest price increment in for transition from the current price of £10 to the long-term price of £14 to £17. This proposed price seeks to bring balance to various viewpoints (Rudolph, 2007). From the economic perspective, it is expected that the market prices will rise in the short-term while the capacity becomes constrained prior to the opening of the new runway. The suggested price level makes sure that the scheme will be financed in the key pinch point years before opening, as well as immediately after the new traffic volumes builds up in the early stages. The price level particularly addresses the senior interest cover ratio, which begins to reduce due to the interest costs before the new opening cash flows. Therefore, this means that the airport will generate lower returns in the short term and is dependent on recovering this shortfall as well as critically reliant on the suitable mechanisms in place to mitigate any long term regulations as well as government risks. The current airport charges at Gatwick are relatively low, compared to its competitors such as Heathrow airport, which has the highest. The major contributor towards the low prices is its low operational efficiencies. This by-and-large reveals the relative level of the invested capital per passenger in these airports. At Gatwick, this presently stands at approximately £70 per passenger while at Heathrow it is £200 per passenger. This shows the insufficient investment of the latter. The airports core business plan traffic as well as tariff assumptions were validated concerning the evolving aviation market in London. The charges that are needed by Gatwick airport to finance the second runway would remain lower compared to the other European airports. These relatively low charges will support the growth of short haul tariff, which is predicted to be 62%of total of the United Kingdom traffic in 2030. Despite the construction of the new runways, Gatwick will still charge much lower than £25 per passenger, which is charged by Heathrow that already has two runways. References Rudolph, W. (2007). Airports of Tomorrow: Report of the Regional Airport Conference on Its Plan for Development of an Airport System for the New York Metropolitan Region. Geographical Review, 37(4), p.697. Neath, S., Hulse, R. and Codd, A. (2014). Building information modelling in practice: transforming Gatwick airport, UK. Proceedings of the ICE - Civil Engineering, 167(2), pp.81-87. Gatwick airport trials. (2002). Biometric Technology Today, 10(4), pp.1-2. Read More