Brisbane Airport Company Analysis

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Table of Contents

Description of the Airport
Current and Future Sources of Air Passengers
Impacts of Increased Air Passenger Volumes on Airport Operations
Recommendations
Works Cited

Description of the Airport

History of the Airport

Brisbane Airline’s operations started in early 1926 at the site currently known as Brisbane Airport. However, preparation for the modern Brisbane Airport commenced in 1971 and was intended to meet the future travel needs of the city. The current facility was established and became operational in 1988 along with its domestic terminal and control tower (“BNE Quick Facts – Brisbane Airport”). The government redeveloped the airline to allow curfew-free operations. Brisbane is the third-busiest airport in Australia; it provides services to 27 airlines with 43 national and 29 international destinations. The airport records a high number of passenger movements. Hence, the corporation continues to grow based on the number of international and national passengers.

Physical Description

Brisbane Airport is located 15 km north-east of the Brisbane central business district on a 2,700-hectare land. The current Brisbane Airport consists of a large buffer zone situated between the end of the existing main runway. The nearest residence is 6.9km from the runway centerline, industrial land uses, and conservation space surrounding the airline. It consists of an International Terminal Building and linked apron taxiways that officially opened in September 1995 (“BNE Quick Facts – Brisbane Airport”). The airline supplemented these buildings and taxiways with services and facilities that allowed business and industry development. It also established a wide range of tenants, an extension of the Domestic Terminal Building and expansion of Air-services Australia facilities.

Ownership Model of the Airport

The ownership of the corporation has changed overtime. Brisbane Airport Corporation bought the airport from the Federal government in 1997 under a 49-year lease; the agreement has an option for a 50-year extension (“BNE Quick Facts – Brisbane Airport”). The company values building collaborative relationships and control of the airline in its entirety. Brisbane Airport Corporation’s shareholders include Australian and international firms and some institutional investors.

An estimated 80 percent of the corporation’s shareholders comprise of Australian “mums and dads.” The airport’s ownership is as follows; QIC Infrastructure Management owns 25%, IFM Investors 19.8%, Royal Schiphol Group 19.6%, and Colonial First State Airport Fund owns 17% (“BNE Quick Facts – Brisbane Airport”). Other firms include Unisuper with 7%, MTAA Superannuation Fund 4.9%, Commonwealth Bank Group Super with 3.9%, Sunsuper with 1.5%, and EquipSuper with 1.3%. Brisbane is a private listing owned by multiple firms (“BNE Quick Facts – Brisbane Airport”). Hence, different shareholders own the airport.

Organizational Structure of the Airport

Brisbane Airport Corporation has a unique organizational structure that determines business operations. Ahmady et al. illustrate that organizational structure represents a combination of a business’s relations between organizational elements that form the existing culture of administrative activities (455). Brisbane Airport is operated by Brisbane Airport Corporation, a private, unlisted company that creates economic opportunities for the state and city.

On-going and Planned Projects

Brisbane Airport Corporation owners and operators drafted the 2020 master plan, a document that reviews economic and demographic trends and considers changes in the aviation sector that will influence its plans and strategies. The master plan considers the proposed growth and expansion of the airport to the year 2040. The document also details the work schedule for proposed projects that will take place from January 2025 when it will be published.

The projected activities include plans that are based on the analysis of forecasts for an expansion of passenger numbers, movement of aircraft, anticipated changes within the aviation sector, and on-airport traffic and consignment. The corporation’s on-going plans and strategic projects are based on specific objectives under four fundamental themes: growing aviation markets, customer satisfaction, driving economic prosperity and supporting business growth (Ashford et al., 45). For example, the company continues to invest in modern and quieter aircraft that meet environmental standards.

The Steering Committee continues to encourage the corporation to work closely with other airlines, governments, and communities to balance effective operations at the airport and community amenity. Brisbane Airport has multiple on-going projects in line with collaboration with communities and other agencies. The corporation continues to pursue and develop innovations, such as smart tracking through the use of advanced satellite navigation procedures that can potentially provide alternative techniques to existing instrument landing systems common in the southern suburbs (Ros Prat 11).

Brisbane Airport has also recorded continued investment in modern, quieter, and eco-friendly aircraft to adhere to domestic and international environmental laws and regulations. In pursuit of development and expansion, Brisbane has implemented efficient land use planning decisions and information revelation procedures that account for the effects of aircraft noise on planned residential areas. The corporation also conducts continuous monitoring practices and improves noise abatement procedures and practices by establishing preferred runways and flight paths that reduce noise exposures to individuals residing close to the airport (Ros Prat 12). Hence, Brisbane has on-going and planned projects aimed at increasing efficiency, meeting legal requirements, and fostering improved relationships with the surrounding communities.

Brisbane has planned a New Parallel Runway (NPR) that is targeted to maximize movements over Moreton Bay. The projected NPR will also lessen the relative flight concentration being experienced in the southern approach flight path. Brisbane airports will have regulatory approval before the implementation of the NPR that outlines specific public consultation milestones. As noted earlier, the airport has increased its efforts towards building relationships with surrounding communities (Ros Prat 14). The corporation has multiple community consultation initiatives, such as the Brisbane Airport Experience Center, the Brisbane Airport Community Aviation Consultation Group, and the Airport’s web-based aircraft noise data. These initiatives promote more informed dialogues between the corporation and the surrounding communities.

Currently, Brisbane Airport Corporation serves over 23 million passengers annually. The airport is undertaking different measures to increase its annual total number of passengers and passenger movements. Through its Master Plan, the corporation targets more than double the current rates of passenger movements. Aircraft movement forecasts based on the general aviation movements; Brisbane Airport will increase an estimated annual movement of 380,000 by 2040 (“BNE Quick Facts – Brisbane Airport”). The corporation has increased investments in the city of Brisbane and the surrounding communities to increase the total number of passenger movement.

The continued growth of the population in Queensland and Brisbane coupled with an unparalleled rate of capital investment is creating an increased demand for frequent flights. The addition of new and customer choice international destinations has also promoted increased movement for Brisbane Airport Corporation (“BNE Quick Facts – Brisbane Airport”). Therefore, the current and expected growth in the overall number of passenger movement can be credited to the airport’s increased capital investment, population growth in Brisbane and Queensland, and the establishment of new international destinations of preference by consumers.

Current and Future Sources of Air Passengers

Current Sources of Air Passengers

Brisbane Airport currently has two major terminals that accommodate 34 airlines flying to 85 local and international destinations. In 2019, an estimated 23.8 million passengers transited through the airport; 17.6 million of these passengers were domestic, whereas 6.2 million were international passengers (“BNE Quick Facts – Brisbane Airport”). The company has 51 domestic destinations and 34 international destinations (“BNE Quick Facts – Brisbane Airport”).

The airport’s top five domestic destinations include Sydney, Melbourne, Townsville, Perth, and Cairns. Its top five international markets include New Zealand, China, the United Kingdom, the United States of America, and Taiwan (“BNE Quick Facts – Brisbane Airport”). Brisbane Airport Corporation makes 2,977 average weekly domestic aircraft movements and 729 average weekly international aircraft movements (“BNE Quick Facts – Brisbane Airport”). Therefore, Brisbane Airport sources its passengers both locally and internationally, but most of them are domestic markets and often travel to internal destinations.

Future Sources of Air Passengers

Brisbane Airport Corporation plans to grow its passenger movements both locally and internationally. Reports indicate that the airport is adopting measures that will promote robust international growth; for example, it is considering new routes including direct routes to Haneda and different states in the USA. The corporation is targeting the Asia Pacific due to the ongoing boom in travel demand. The top source domestic passengers for the airport include Proserpine, Mackay, Canberra, Sydney, and Melbourne (“BNE Quick Facts – Brisbane Airport”). For international markets, sources of passengers from China, India, Korea, Taiwan, and the UK are expected to grow considerably.

Based on the Master Plan, domestic passengers are expected to grow from around 17.5 million to 36 million annually (“BNE Quick Facts – Brisbane Airport”). On the other hand, international passengers are targeted to increase from around 5.9 million to an estimated 15.5 million annually by 2039/2040 (“BNE Quick Facts – Brisbane Airport”). New runway capacity in Brisbane, Melbourne, and Sydney airports are anticipated to increase traffic for domestic travelers. This increase in the number was also facilitated by the introduction of modern, eco-friendly aircraft. Brisbane Airport Corporation expects the dynamics and proportions of domestic to international passengers to evolve; the company anticipates a slight increase in the share of transnational passengers as compared to local travelers.

As a result, the current number of international passengers will increase from about 25% to 30% of the total number by the year 1039/40 (“BNE Quick Facts – Brisbane Airport”). Consequently, international aircraft movements will expand from the current 16% to 19% by the same period, which will be equivalent to over 70,000 movements (“BNE Quick Facts – Brisbane Airport”). Domestic aircraft movements are also anticipated to increase from 72% shares to 73%, which will result in nearly 279,000 movements (“BNE Quick Facts – Brisbane Airport”). Overall, both domestic and international aircraft movements will increase due to the growth in travel demand.

Impacts of Increased Air Passenger Volumes on Airport Operations

Expanding airport capacity or air passenger volumes can both adversely and positively impact a corporation. According to Sumathi and Parthasarathi, increase capacity of passengers results in traffic and may affect the quality of services provided by an airline (119). Therefore, the anticipated expansion at Brisbane Airport is likely to facilitate traffic and thus the corporation should maintain services provided and quality of the airport at high standards.

The expected increase in the number of passenger movements poses environmental concerns relating to emissions. Jakubiak underscores the importance of understanding the potential negative external effects relating to air transport (276). According to Burghouwt et al., airlines often react differently to the expansion of capacity, mostly based on macroeconomic conditions change and business models each firm implements (15). Hence, expected in the overall passenger capacity for the airport will have many impacts relating to socioeconomic and environmental impacts.

Brisbane Airport Corporation estimates its overall passenger volume to grow by nearly half the current number. As a result, the company should brace for both economic benefits and significant challenges. Growth of the total number of travels will maximize profit margins allowing the corporation to increase capital investment in projects, such as infrastructure and recruitment of experienced workforce. However, irrespective of the prospective economic benefits, the corporation’s business operations may be curtailed by adverse impacts of the high number of travels (“BNE Quick Facts – Brisbane Airport”).

For example, it will be challenging for the corporation to sustain business stability due to high demand and increased competition. Brisbane faces an infrastructure crisis unless it works closely with governments and collaborates with other agencies and communities to develop efficient infrastructure offering value for money and aligning with existing business needs. There is a need for strategic planning for the future to enable the corporation to meet demand and create value based on the number of travels.

The projected expansion in passenger movement will increase Brisbane Airport’s responsibility to expand and meet the needs of all its customers, both existing and new. The airport will be required to expand runways and buy more aircraft to ensure all passengers reach their destinations on time. It will be difficult to maintain a tight schedule due to increased traffic. The existing workforce may lack the capacity to hand more passengers; the number of passengers that can be handle by a certain crew may exceed its capacity in regards to the expertise (“BNE Quick Facts – Brisbane Airport”). Therefore, there is a need for Brisbane to expand its operations sustainably as well as have strategic plans for the projected increase in the total number of passenger movements.

Recommendations

Brisbane Airport Corporation expects the number of passengers it attends to increase by a significant number. Consequently, the airport faces the challenge of alleviating congestions and enhancing service quality and coverage coupled with ensuring security. Brisbane’s current and future congestion levels are expected to exceed the capacity, which will require air traffic controllers to routinely mitigate delays. It is recommended for Brisbane Airport to collaborate with governments and other airline agencies to fund planning and develop infrastructures that will meet increased passenger demands.

The corporation should also focus on the construction of new runways that will facilitate capacity expansion (Ryerson and Woodburn 52). Brisbane Airport can also focus on increasing capacity per slot. Brisbane Airport being a commercial airline should be concerned with serving large numbers of passengers. The corporation should focus on increasing the presence of larger aircraft in the fleet mix to increase the number of seats that Brisbane Airport can process per hour. Using this method, the firm will sustainably deal with the increasing number of passengers and traffic.

Brisbane Airport Corporation ways in which it can efficiently distribute demand. According to Barnhart et al., airlines with high demand for travel services should focus on measures that avoid delays and minimize workload (140).

Brisbane Airport should focus on creating more slots for scheduling purposes and increase the efficiency of terminal area air traffic management. The airport should take advantage of the additional capacity available in “visual meteorological conditions” to deal with traffic. Capacity constraints are inevitable for airlines expanding their customers. Brisbane is no exception and should focus on air traffic flow management that involves optimizing the flow of air traffic in time and space on a daily and hourly basis (Barnhart et al. 139). Implementation of these recommendations would help Brisbane Airport deal with passenger capacity constraints.

Works Cited

Ahmady, Gholam Ali et al. “Organizational Structure.” Procedia-Social and Behavioral Sciences, vol. 230, 2016, pp. 455-462.

Ashford, Norman J et al. Airport Operations. 3rd ed., Mcgraw-Hill Professional, 2013, pp. 5-70.

Barnhart, Cynthia, et al. “Demand and Capacity Management in Air Transportation.” EURO Journal on Transportation and Logistics, vol. 1, no. 2, 2012, pp. 135-155.

“BNE Quick Facts – Brisbane Airport“. Brisbane Airport. Web.

Burghouwt, Guillaume, et al. “Expanding Airport Capacity: Competition and Connectivity: The Case of Gatwick and Heathrow.” SEO-Rapport, vol. 2014, no. 64, 2014, pp. 9-33.

Jakubiak, Mateusz. “Environmental Impact of Air Transport-Case Study of Krakow Airport.” Logistyka, vol. 2, 2015, pp. 276-283.

Ros Prat, Inés. Improving Check-In Processing at Brisbane Airport. MS thesis. Universitat Politècnica de Catalunya, 2017.

Ryerson, Megan S., and Amber Woodburn. “Build Airport Capacity or Manage Flight Demand? How Regional Planners Can Lead American Aviation into A New Frontier of Demand Management.” Journal of The American Planning Association, vol. 80, no. 2, 2014, pp. 138-152.

Sumathi, Nagarajan., and Parthasarathi. A”Analysis of Airport Operations.” International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS), vol. 7, no. 3, 2018, pp. 119-123.

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