I was enjoying my cup of Tim Horton’s at Buffalo Niagara International Airport on my way home from the International Aviation Snow Symposium a few weeks back when hopefulness struck me.
It was packed. Incredibly packed. People adorned in Bills gear in early May were ambling through the terminal and on their way to travel. Two years since I last stepped foot in this airport, I saw a healthy recovery in action as the nation’s air system gets back to normal.
It’s honestly beyond normal. We’re seeing record travel despite record cost to fly thanks to a cacophony of geopolitical issues.
Positive feelings are nice, but feelings aren’t necessarily a truth. And the truth is, the pandemic has ravaged airport finances.
Airports Council International’s latest Airport Economics Report shows a 65% drop in passenger-related revenues and 42% drop in landing charges during the pandemic. Total costs dropped in absolute terms, but the cost per passenger surged 92%.
The debt fairy isn’t going to wipe out these incurred costs. Someone had to pick up the tab and will be paying for this for some time.
Airports are highly asset intensive. It takes a lot of stuff to make other stuff work safely and efficiently. But if you seize this moment to think big on all your purchases, you can prepare yourself for the future.
AIP and BIL funding need to be spent on infrastructure and equipment upgrades that deliver economic, operational and environmental sustainability. Reducing asset costs is the most tangible step an airport can take to protect itself financially.
More energy efficient facilities are simple investments to comprehend. But automation, advanced drivetrain technology and embracing connected equipment builds cost efficiencies your predecessors only dreamed of.
These aren’t future concepts either. Kodiak had its new hybrid airport snow removal equipment on display at IASS. Automated AOA equipment is being tested in European airports as we speak. Touchless and frictionless technology is available for your facilities and operations today.
The Airport Business 2021 State of the Industry survey showed 33% of North American airports are ready invest in hybrid/alternative energy AOA equipment. Eighty-six percent want to electrify their vehicle fleets and shuttle buses in the next five years. And 62% are embracing touchless technology. It's encouraging, but these numbers need to be higher.
It’s exciting to see record air travel. It’s exciting to have an extra $25 billion in federal funding to upgrade our airports. But don’t get lost in the hype.
It only takes one person at one wet market on the other side of the world to spur a global crisis, so don’t relax just yet.
