US: Airports are developing the land past the runways

Airports all over the US are looking for new ways to cover their costs, as they seek more income for terminal and other improvements. That means the fees and rents paid by parking lots, rental car companies, taxis and the businesses under their roofs are also increasingly important as airports try to hold the line on, or even lower, the fees paid by airlines. If an airport can reduce airlines’ fees, it can keep carriers that might otherwise switch to another city, said Henry Harteveldt, a travel industry analyst and president of the Atmosphere Research Group, as well as appeal to budget carriers that prefer low costs and even persuade carriers to enter new markets by making it more economical. The lower the fees, Harteveldt added, “the more likely it is an airline can offer lower fares to passengers.” And by bringing in new businesses, the airports are attracting new customers. A study released last year by Technavio, a market research firm in London, predicted that nonairline revenue would grow at a compounded annual rate of nearly 9% from 2017 to 2021. And as the airports open more of their land to commercial development, the report said, they are converting “from being just infrastructures to commercial enterprises.” Story has more background.<br/>