Growth Opportunities for Global Commercial Aviation Privatization

Growth Opportunities for Global Commercial Aviation Privatization

Customer Centricity and Personalization to Drive Transformational Growth

RELEASE DATE
16-Mar-2022
REGION
Global
Research Code: PCE1-01-00-00-00
SKU: AE01569-GL-MT_26377
$2,450.00
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SKU
AE01569-GL-MT_26377
$2,450.00
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Description

The privatization trend in aviation has picked up pace globally during the last 2 decades. Historically, a majority of airlines and airports were part of the public sector, and focus remained mostly on providing connectivity and affordability. However, the travel experience was often less prioritized. Changing market dynamics have made the passenger experience much more central to the travel industry, and service providers can no longer ignore this shift.

Airports that traditionally had a monopoly on travel are finding it difficult to maintain their profitability with the entrance of the low-cost carrier model. Airlines operating on the LCC model operate on a thin margin, which forces them to optimize operational costs as much as they can to maintain their margins through high volumes of travel. But optimizing operational costs alone is not sufficient to ensure margins or to fight the competition, which is why both airports and airlines are finding innovative ways to ensure profitability.

The personalization of services and focus on travel experience are the 2 major aspects where airlines and airports can generate the ancillary revenue streams that form a considerable percentage of overall revenue. Privatization plays a significant role in achieving operational efficiencies and profit margins without compromising safety requirements and conflicts of interest. Airports, airlines, and all industry stakeholders must analyze their desired actions and results to fully understand the structural changes required in privatization.

This growth opportunity analysis offers a look at the objectives, reasons, trends, best practices, and top 3 growth opportunities behind privatizing airlines and airports globally.

Author: Nripendra Bahadur Singh

Table of Contents

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top Three Strategic Imperatives on the Commercial Aviation Privatization Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Privatization: Definition and Operating Models

Objectives of Privatization

Reasons for Privatization

Impact of Liberalization on Aviation

Growth in Passenger Demand & Impact of Airport Privatization

Reasons for Airport Privatization

Stages of Airport Ownership and Management

Reasons for Airline Privatization

Global Airport Privatization Trends and Best Practices

Global Airport Privatization Trends and Best Practices (continued)

Growth Drivers

Growth Restraints

Growth Opportunity 1: Leasing Landside Space to App-based Car Aggregators to Ease Passengers’ Commute

Growth Opportunity 1: Leasing Landside Space to App-based Car Aggregators to Ease Passengers’ Commute (continued)

Growth Opportunity 2: Implementing Premium Pricing Strategy on Terminal Shops to Generate Non-aeronautical Sources of Revenue

Growth Opportunity 2: Implementing Premium Pricing Strategy on Terminal Shops to Generate Non-aeronautical Sources of Revenue (continued)

Growth Opportunity 3: Providing In-flight Entertainment & Connectivity Services to Enhance Passenger Experience

Growth Opportunity 3: Providing In-flight Entertainment & Connectivity Services to Enhance Passenger Experience (continued)

List of Exhibits

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Related Research
The privatization trend in aviation has picked up pace globally during the last 2 decades. Historically, a majority of airlines and airports were part of the public sector, and focus remained mostly on providing connectivity and affordability. However, the travel experience was often less prioritized. Changing market dynamics have made the passenger experience much more central to the travel industry, and service providers can no longer ignore this shift. Airports that traditionally had a monopoly on travel are finding it difficult to maintain their profitability with the entrance of the low-cost carrier model. Airlines operating on the LCC model operate on a thin margin, which forces them to optimize operational costs as much as they can to maintain their margins through high volumes of travel. But optimizing operational costs alone is not sufficient to ensure margins or to fight the competition, which is why both airports and airlines are finding innovative ways to ensure profitability. The personalization of services and focus on travel experience are the 2 major aspects where airlines and airports can generate the ancillary revenue streams that form a considerable percentage of overall revenue. Privatization plays a significant role in achieving operational efficiencies and profit margins without compromising safety requirements and conflicts of interest. Airports, airlines, and all industry stakeholders must analyze their desired actions and results to fully understand the structural changes required in privatization. This growth opportunity analysis offers a look at the objectives, reasons, trends, best practices, and top 3 growth opportunities behind privatizing airlines and airports globally. Author: Nripendra Bahadur Singh
More Information
No Index No
Podcast No
Author Nripendra Bahadur Singh
Industries Aerospace, Defence and Security
WIP Number PCE1-01-00-00-00
Is Prebook No
GPS Codes 9000-A1