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Unit 23 Strategic Planning for Air Transport

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Introduction

In this unit, students will explore government air transport policy, along with recent and predicted trends in air transport, to determine how airports and airlines might develop in the future. The unit focuses on planning as a framework to set these issues into context and to develop future strategies.

Airports and airlines must work within this changing framework to plan and develop strategies to grow their business; a good understanding of government policy and the factors that influence government policy is essential if students are going to be successful in this unit. They will also learn about the tools used within the industry to plan and forecast for passenger growth, and how that informs the planning and utilisation of aircraft to meet passenger demand and operational costs.

Learning Outcomes

By the end of this unit students will be able to:

  1. Assess government air transport policy and determine what impact it will have on airlines and airports
  2. Analyse the rationale behind and purpose of airport masterplans and comment on their validity
  3. Interpret demand forecasting models based on variable inputs to construct an airport demand forecast
  4. Evaluate the techniques involved in airline planning to optimise fleet assignments and maximise capabilities.

Essential content

LO1 Assess government air transport policy and determine what impact it will have on airlines and airports

Assess government air transport policy:

The roles and responsibilities of international governing bodies The International Civil Aviation Organisation (ICAO) and International Air Transport Association (IATA)

International policies that affect air transport

The implications of international and national government air transport legislation

Current government announcements on air transport affecting air transport developments

What impact it will have on airports and airlines:

The impact on national and regional airport development and infrastructure The impact on airline route planning and competition for airspace Globalisation of airline networks and strategic alliances

LO2 Analyse the rationale behind and purpose of airport masterplans and comment on their validity

Discuss the rationale behind and purpose of airport masterplans:

The definition and purpose of the airport master plan

The co-ordination of airport development and planning with regional development plans

The importance of air traffic demand forecasting to provide airport infrastructure in time to meet demand

A roadmap to chart the ultimate development of the airport The core areas covered in airport master plans

The process for developing airport masterplans

The importance of stakeholder engagement and consultation to create public openness, debate and input

Validity of masterplans:

Content aligned with government guidelines and policies Content validity, realistic and feasible

Measures and metrics

LO3 Interpret demand forecasting models based on variable inputs to construct an airport demand forecast

Forecasting models based on a set of variable inputs:

Different methods and models of forecasting e.g. market share, time series, simulation and econometric

Airport masterplan forecasts and post-plan monitoring and evaluation techniques

Use of airport passenger demand forecasting:

Historic Civil Aviation Authority (CAA) data to forecast future developments The use of sensitivity testing to produce a high, medium and low forecast

LO4 Evaluate the techniques involved in airline planning to optimise fleet assignments and maximise capabilities

Airline planning:

Fleet planning to meet demand levels and operating costs Route and network planning to maximise revenue

Schedule planning to optimise fleet assignments, connections and slot clearances

Aircraft rotations and crew pairing

Learning Outcomes and Assessment Criteria

Pass Merit Distinction
LO1 Assess government air transport policy and determine what impact it will have on airlines and airports  
P1 Assess the key developments in international and national government air transport policy, and their implications for airlines and airports M1 Analyse the long- term impacts of international and national policy on airlines and airports LO1 LO2 D1 Make justified recommendations for an airport masterplan based on the long-term future implications of international and national policies
LO2 Analyse the rationale behind and purpose of airport masterplans and comment on their validity
P2 Examine government policy relating to airport masterplans and the contents of a specific airport masterplan M2 Critically analyse a specific airport masterplan’s validity and feasibility in relation government policy  
P3 Analyse whether the masterplan meets government requirements and whether it is valid    
LO3 Interpret demand forecasting models based on variable inputs to construct an airport demand forecast  
P4 Interpret different forecasts for air transport and airport demand forecasts P5 Construct an airport demand forecast based on aviation data to make future predictions M3 Analyse variable inputs which make international and national airport demand forecasting challenging to predict correctly D2 Critically analyse variable inputs for international and national demand forecasting, providing justified recommendations for planned airport growth
P6 Apply sensitivity testing to produce a high and low forecast    
Pass Merit Distinction
LO4 Evaluate the techniques involved in airline planning to optimise fleet assignments and maximise capabilities   D3 Make valid and justified solutions for optimising fleet assignments to maximise airline capabilities and profit
P7 Assess the different techniques involved in fleet, route and schedule planning to optimise fleet assignment P8 Evaluate the use of the hub and spoke system for optimal fleet assignment M4 Critically evaluate how techniques involved in fleet, route and schedule planning are interlinked to maximise airline capabilities and profit

Recommended resources

Textbooks

ASHFORD, N., STANTON H.P. and MOORE, C. (2012) Airport Operations. 3rd ed. Columbus, Ohio: McGraw-Hill.

BELOBABA, P. and NEUFVILLE, R. (2013) Airport Systems, Second Edition: Planning, Design and Management. 2nd ed. Columbus, Ohio: McGraw-Hill.

GRAHAM, A. (2013) Managing Airports. An International Perspective. Oxford: Routledge.

MANIRIHO, E. (2016) Strategic airport planning and marketing. 1st ed. Madras: Notion Press.

Websites

www.centreforaviation.com Centre for Aviation Reports, Data (Research)
www.flightglobal.com Flight Global Data and Statistics (Research)

Links

This unit links to the following related units:

Unit 6: Managing Aviation Services

Unit 21: Airline Operations Management

Unit 22: Airport Operations Management

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