Low-Cost Airports for Low-Cost Airlines: Flexible Design to Manage the Risks

Airport planning is shifting from the traditional pattern -- driven by long-term point forecasts, high standards, and established clients -- to that of recognizing great forecast uncertainty, many standards and changeable clients. This is a consequence of economic deregulation of aviation and the rise of low-cost airlines. Low-cost airlines are becoming significant factors in airport planning. Their requirements differ from those of ‘legacy’ carriers. They drive the development of secondary airports and cheaper airport terminals. They catalyze ‘low-cost airports’ around the ‘legacy main airports’ built for the ‘legacy airlines’. This paper proposes a flexible design strategy to deal with the uncertainty of this dynamic. This differs significantly from traditional airport master planning. It builds flexibility into the design, to enable airports to adjust to changes in the type, needs and location of traffic. The case of Portugal illustrates the current risks, and indicates how flexible design could manage uncertainties and maximize expected value.

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