Project for Airport Analysis

Attachment 8: Project for Airport Analysis

Learning Objectives

1. To explore the airport business model with operational and financial statistics.
2. To identify the core competencies of the airport and compare with competitors.
3. To understand airport management and organization.
4. To find out the concept of anairport city.

Description: This case examines airport business models that you choose froman airport located in North America, South America, Asia-Pacific, Europe, Middle East, Africa,etc. (Please avoid duplicates with other students). The case is to develop your analysis on thebusiness model of your chosen airport, including the various aspects of airport operations, including a financial statement as well as mission, vision, and duties’ analysis.

Instructions for the data collection [75 points including 25 points for the report and 50 for the presentation]: This case study is an individual effort. The case analysis should answer the following questions using at least seven years’ data for operational and financial data:

1. Operational data: Make tables (or draw graphs) of the passenger, cargo and aircraft movement with commercial, general aviation, and others at least for the past seven years.
2. Explain the traffic trends using operational data.
3. List of carriers who are flying to the airport and what kind of aircraft the air carriers use.
4. Financial data: Analyze financial statements (Income statement, balance sheet and cash flow) with total revenue, gross profit, operating income, net income and EPS (Earning per share) from income statement; Total assets, current assets, total liabilities, current liabilities, inventory, accounts receivable, accounts payable from balance sheet at least for the past seven years.
5. Analyze major expenses.
6. Calculate financial performance such as net profit margin, ROA, ROI, C2C, currency ratio,etc (at least for the past seven years).
7. What is the major revenue? Check aeronautical, non-aeronautical revenues, and real estate revenue.
8. Airline charging system.
9. Etcetera

• Do not copy and paste the source material.

Deliverables for data collection (presentation slide): Have to summit separately for airport data and report. Graded Components (See Attachment7 for specific guidelines):

1. Cover Page: Include your name, course name, airport name, and date.
2. Executive Summary on data analysis
3. Data description (Tables, figures using chart bar graphs

Instructions for the report [175 points including 75 points for the report and 100 for the presentation]: This case study is an individual effort. The case analysis should answer the following questions using financial statements in the annual report, master plan airport economic impact study.

1. Find out the airport’s vision, mission, business goal, key results, etc.
2. Explain on an organization chart.
3. Explain the ownership of the airport.
4. Describe general aspects of the airport airside and landside including runway and boarding gate numbers, runways and terminal shape (structure), access roads, public transportation access, etc.
5. Explain commercial development in the area.
6. How to develop an airport’s surrounding area (hinterland or airport city)?
7. Airport connectivity (domestic/international routes, cities, countries) including photos (or maps).
8. What kind an airline rate-making methodology is applied?

Refer to these references:

DFW (2018). Dallas-Fort Worth International Comprehensive Annual Financial Report: For the Fiscal Year Ended Sep. 30, 2018 (https://www.dfwairport.com/cs/groups/webcontent/documents/webasset/p3_106747.pdf).

MAC (2017). 2017 Annual Report, Metropolitan Airports Commission (https://www.metroairports.org/Metroairports/media/Media/Documents/Annual-Report-2017.pdf).

MSP (2017). Minneapolis-St. Paul International Airport: Economic Impact of its Operation 2016 (https://www.mspairport.com/sites/default/files/2017-09/MSP%20Economic%20Impact%20Study%202016%20FINAL%20DRAFT%20REPORT%20(14Sep2017).pdf).

Deliverables for the report with data (presentation slide): Graded Components (See Attachment7 for specific guidelines):

1. Cover Page: Include your name, course name, airport name, and date.
2. Executive Summary
3. Case write‐up including data

For this project, you could get related data, reports, and academic articles through Google using keywords, such as airport name (ex. Fort Worth Alliance airport), annual report (ex. DFW annual report, MSP annual report), economic impact (ex. New Jersey airport economic impact study).