Analytical Review for Competitiveness of LGBI Airport Guwahati in Terms of Aircraft and Passenger Movement for Long-Term Viability

Abstract

Purpose: This paper aims to analyze the profitability and future viability of LGBI Airport Guwahati in terms of sources of revenue from traffic & non-traffic modes by identifying the factors that influence the traffic (aeronautical) revenue and non-tariff (non aeronautical) revenue. Theoretical Framework: The study followed economical concepts related to traffic and non-traffic assets that exist on an airport. The theoretical framework reveals the revenue model. It is essential to declare the profitability and competitiveness of an Airport whether operating under single till approach or Dual till approach or hybrid one. Design/Methodology/Approach: The systematic literature review is based on an exploratory research design following a quantitative study, from a list of 12-15 research and review papers relevant to the purpose of the study. The data extraction from the sorted literature is done through linear regression using SPSS software. Research, Practical & Social Implication: Certain initiatives may directly influence Non-Aero income. Except for significant airports like DIAL, MIAL, BIAL, and HIAL, the ratio of traffic to non-traffic income at Indian airports is 25/75.Also the implications drawn from this study would help the airport managers to develop innovative strategies to improve the revenues via both, traffic and non-traffic modes. Findings: The researcher used Factor analysis, Linear regression and Principal component analysis. The analysis identified negative and positive factors that affect tariff and non-tariff revenues separately.Regression analysis revealed significant determinants that have influence on the profitability..Using the results, managing the variables to maximize total income and controlling variables may increase income. Originality/Value: This academic article is a research work highlighting the comprehensive revenue sources in the LGBI airport, Guwahati.