Airport Development Charges Strategy– Sneak Peeking Into Its Viability For Airport Management In Riding The Competitive and Challenging Business

M A N Rusdin, M F N Mohammad, N A Abdul Rahman, M. Romeli


Air travelling has become a norm nowadays. The aggressiveness and higher demand for airlines businesses have dictated the growth and require poise action from the airport entities. Indeed, airlines and airport are two businesses that are growing and shrinking in parallel. In ensuring continuous businesses and support for the growth of airlines passengers, airport management needs to source out for consistent revenue in ensuring optimal operations. Preliminary analysis shows that the airport revenue streams comes from various sources such as government, upstream and downstream businesses, passenger charges and many others. One of the potential revenue streams that might be considered by the airport management highlighted in this study is airport development charges. Interestingly, analysis on limited number of airports within South East Asian region have shown that quite limited number of airports have implemented the charges. Hence, this conceptual study adamant to set a preliminary discussion on the initiatives taken by airport management so far as well as the business model adopted by previous studies. This study has its novelty in term of selection of the topics as well as the environment of the study. Methodologically, this study adopts the nine components of Osterwalder approach - customer relations, distribution channel, customer segment, key resources, value proposition, key activities, cost structure, partners and revenue streams to support the preliminary analysis. The concerted effort by airport management has generated interesting topic for future opportunities in analysing the financial structure and revenue of airport from the perspective of academic research in the university.

Full Text:



U. Battal and M. Bakir, “The Current Situation and Change in Airport Revenues: Research on The Europeâns Five Busiest Airports,” Int. J. Acad. Res. Bus. Soc. Sci., vol. 7, no. 7, pp. 287–303, 2017.

Airports Council International (ACI), “State of Airport Economics,” Infrastruct. Manag. Program. Econ. Dev. Air Transp., pp. 1–14, 2015.

M. J. Zenglein and J. Mu?ller, “Non-Aviation Revenue in the Airport Business – Evaluating Performance Measurement for a Changing Value Proposition,” pp. 1–20, 2007.

“CAA define ADC.” [Online]. Available:

“CAAS on New Airport Development Levy,” CAAS Newsroom. [Online]. Available:

H. A. Limited, “Heathrow Airport Airport Charges for 2012/13,” no. August 2018, 2011.

E. Jimenez, J. Claro, and J. Pinho de Sousa, “The airport business in a competitive environment,” Eur. J. Transp. Infrastruct. Res., vol. 13, no. 4, pp. 315–335, 2013.

Osterwalder, Marketing Business Startup. 2010.

K. Yue, “Comprehensive REVIEW of Airport Business Model,” Compr. Rev. Airpt. Bus. Model, 2010.

G. A. Bowen, Document Analysis as a Qualitative Research Method, vol. 9, no. 2. 2009.



  • There are currently no refbacks.

Copyright (c) 2019 Advances in Transportation and Logistics Research

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Advances in Transportation and Logistics Research

ISSN: 2622-5778 (online)
Published by: Institut Transportasi dan Logistik Trisakti, Jakarta - Indonesia

ATLR by is licensed under a Creative Commons Attribution 4.0 International License.