Critical Factors for Development of Airport Cities

Abstract

Recent trends in airport-centered real estate development are addressed, with emphasis on the concept of the airport city. Airport cities are major economic hubs that have exhibited substantial growth and profits. However, evolution toward an airport city is difficult; several airports worldwide have failed in the attempt. The emergence of this type of development is related to major trends in the aviation sector during the past decades. Globalization and liberalization processes have led to a strong reliance of airport operators on nonaeronautical revenues. Real estate development centered on airports arises as a strategy to maximize nonaeronautical revenues and as a response to a need for revenue diversification. The purpose of this research was to identify the critical, underlying factors in the emergence of an airport city. A framework was designed to illustrate the agents that shape airport city development and the relationships between them. A key informant survey was then conducted with 30 respondents and complemented with personal interviews of eight of them. The results suggest the existence of four critical factors for the development of an airport city: the connectivity of the airport and its surroundings, the economic potential of the surrounding area, a sustainable development context, and a commercial attitude by the airport operator.

Kualanamu International Airport: Current Development toward Aerotropolis

“…1) The road network from/to the airport 2) Airport train [4], [10], [12], [13], [14], [15], [16], [17], [18], [19], [20], [21], 3 Sustainable development There is a potential utilization of the region with integrated and sustainable land use 1) Manufacturing industry 2) Plantation industry 3) Logistics/cargo 4) Entertainment center 5) Ritel and commercial 6) Hospitality [4], [5], [6], [8], [9], [11], [12], [13], [14], [15], [18], [22], [23], [24], [ Air traffic is measured based on there is or not an increasing number of people using air travel. This criterion is used by Kelly and Baker [9]; Derudder, Devriendt, and Witlox [10]; Callanan [11]; and Krylova [12].…”

“…Connectivity is measured based on there is or not transportation accessibility from the airport to the surrounding area, and vice versa. This criterion is used by : Keast, Baker, and Brown [13]; Freestone [14]; Hovee and Yosick [15]; Derudder et al [10]; Yin [5]; Carter and Danes [16]; Ashford, Mumayiz, and Wright [17]; Peneda, Reis, and Macario [18]; Zhou [4]; Zapezauer [19]; Appold [20]; Siska [21]; and Krylova [12]. Economic income is measured based on there is or not a statistically significant increase in the economy.…”

“…Sustainable development is measured based on there is or not a potential utilization of the region with integrated and sustainable land use. This criterion is used by : Wijk [6]; Kelly and Baker [9]; Keast et al [13]; Freestone [14]; Hovee and Yosick [15]; Graham [22]; Poungias [8]; Stevens, Baker, and Freestone [23]; Walker [24]; Yin [5]; Peneda et al [18]; Zhou [4]; Callanan [11]; Krylova [12]; Banai [25]. Government support is measured based on there are or not plans for the development of airports and surrounding areas that are included in strategic plans, regulations and local policies.…”

The Making of an Australian ‘Airport City’

“…Such codependence, however, is not underpinned by the clustering of businesses that may particularly benefit from airport proximity, as highlighted in some of the airport city literature (Kasarda and Lindsay, ). The real estate side of the airport business must function viably within ‘a normal regional competitive situation’ with the ‘rules, know‐how, and specificities of the overall real estate market’ having to ‘apply to airports as well’ (Peneda et al ., , 7).…”

“…The changing nature of airports, and particularly the integration of aviation with commercial activity, is captured in the concept of the 'airport city' (Peneda et al, 2011). This is one of several competing spatial imaginaries seeking to depict and promote airport-centric development .…”