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Airport Operations One City, Six Airports, Heathrow, Gatwick, Stansted, Luton, London City & Southend

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Page 1: Airport Operations One City, Six Airports, Heathrow ... · on its six airports: Heathrow, Gatwick, Stansted, Luton, London City & Southend. Lastly, the paper suggests an alternative

Airport Operations

One City, Six Airports,

Heathrow, Gatwick, Stansted, Luton, London City & Southend

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Introduction

In the contemporary competitive airport transport industry, airport managers are

confronted by the demanding task of creating and sustaining not only a safe, but also efficient

operation in a dynamic and rapidly developing air travel business (Porter, 2008). Strategic

management of today’s challenging airport operations calls for excellent airport strategy, striking

a balance between capacity and demand, exploring alternatives for airport expansion and

development, optimal operational frameworks, reasonable travel charges, and effective market

development (City Airport Development Plan, 2013, p.19). This research paper attempts to

critically analyse the consequences of physical design and capacity limitations for the

Metropolitan London City airport network. It also assesses the strategy of the London city based

on its six airports: Heathrow, Gatwick, Stansted, Luton, London City & Southend. Lastly, the

paper suggests an alternative strategy for London as a city and its airports.

Overview of London Airport Industry

London is the capital and largest metropolitan of England physically located on the

country’s south east and the most effective travel alternative for both long- and short-haul travels

primarily because of the city’s multiple airport network (See & Li, 2015, p.2). London has a

multiple airport system that serves as epicenter of England linking the city not only to other

destinations in England and the UK, but also the whole world. Being located in an Island

country, the city offers not only the most convenient, but also competitive business and leisure

travel to the dynamic international travelers. The London airport system is served by six

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internationally competitive airports namely: Heathrow, Gatwick, Stansted, Luton, City &

Southend.

Figure 1: London City Airport Connectivity

The London airports industry comprises airport operators that manage diverse niches

such as inbound, outbound, business, and leisure segments. The sector relies on both UK airlines

and other international air travel companies as both create the airport infrastructure and support

to passenger as well as freight operators. The six airports focus their operational strategy on

differentiation in terms of the primary catchment areas, types of travel (local and international

flights, scheduled and charter carrier flights, and business or leisure travel), and other areas of

specialization. Furthermore, the airports attempts to diversify their income sources largely by

expanding their services into related market segments, including retail concessions, car hire

services, and car vehicle parking services.

Business Landscape

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London is increasingly transforming into a global force to be recognized, with a number of

factors creating an enabling environment for business and investment ventures in the city. First,

the fact that the UK constitutes one of the principal, comprehensive trading countries

international makes London a more competitive location for business and investments. Also, it

features several incentives for both startups and large-scale enterprises. In fact, the city was

named in the European Digital City Index as the leader in the entire Europe for supporting

startups and scale-ups and second for supporting innovation and entrepreneurship. Other than

other well developed basic infrastructure, it has a well-developed technological infrastructure to

support business ventures. In 2015, technology based firms in the city yielded about $1.6 billion

in the initial nine months, and tech firms are forecasted to scale to 45,000 and generate over 12

billion pounds of economic activity in the next ten years (Tech City, 2016). Moreover, London

has a relatively educated labour market with an increasingly diverse range of digital skills and

competencies, while 251,590 of the city’s digital employment found within the city. This is an

important asset to the industry as an educated workforce can help the airport steer up innovation

and quality improvement of the facility, thus enhancing its competitive advantage among other

airports serving the general multi-airport system. Tourism is taking a centre stage in London city

and its environs. The city is characterized by numerous tourist attraction sites and figure 2 is just

one among many of them. Inflow of tourists directly influence airline traffic in the city. Another

economic imperative is the business friendly corporate tax regimes that are set as low as 20%.

According to official statistics, R&D tax credit for firms with a 500-and-less workforce scaled to

225%, among other tax related incentives (Tech City, 2016). The low tax regimes serve as a

magnet to attract investors and encourage entrepreneurship within the London airport area.

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Figure 2: southbank Centre (A leading tourist attractiion in London city)

London Catchment Area

London is the largest international air market in the world, in terms of the number of

local and international passengers. It is worth highlighting that a combination of the passenger

traffic that characterizes the five main London airports significantly exceeds the traffic of any

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other city in the global scene. A significant majority of the traffic that operate in London’s

(approximately 87 %) is origin-destination traffic.

London producing more than 20% of UK's GDP, is the primary main thrust moving the

UK economy. With London being the biggest worldwide air market on the planet, air transport

network matters to economic development. Airports are a crucial piece of London's

infrastructure. London airport terminals are the gateway to the worldwide economy and help in

pulling in outside investments. Privately owned London air terminals are operating on a business

objectives and the international air remain crucial for the businesses.

London, with its wide system access, has a decent aviation connectivity which helps in

producing benefits in the tourism sector. London, with its rich cultural and historical legacy,

makes it a perfect tourism destination. In terms of global guests, London is a standout among the

most visited city globally. London's tourism and aviation sector had a noteworthy effect

regarding economic boost with the iconic 2012 London Olympics.

Most London Airport are city center airport, set in a prime area at the Royal

Docks and they have their own direct rail link.

London Airports are travelers' choice of airplane terminal, because of their ease of access,

straightforwardness of utilization and being fast and effective. The air terminal has vital

influence in driving business efficiency and in supporting internal ventures.

Consequences of Physical Design and Capacity Limitations of London City Airport

London City Airport is an international airport geographically situated in the Royal

Docks, London. The airport lies between the prime centers, the Royal Docks ad Canary Wharf,

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and around 11 km east of London (London City Airport, 2016). Compared to other airports in

London, London City airport is the most ideal point of departure for individuals intending to

travel by air in and out of London City to Europe and other parts of the world. This is largely

because of its convenience and ease of access as it is situated approximately 6 miles and 3 miles

east of Central London and from Canary Wharf, respectively. Owing to its large size, arrivals

and departures via the airport can be comparatively faster and easier compared to other air travel

terminals in the same region. According to London City Airport Consultative Committee

(LCACC, 2016), besides the ease of access, efficiency and simplicity in visitor and airport

operation management at London City airport elevate the quality of travelers’ experience, hence

attracting multiple customers.

Furthermore, the business community in London City heavily depends on the

international connectivity the airport provides, especially to trade successfully in the networked

global economy. The facility is at the heart of economic rejuvenation and regeneration and is the

driving force for business productivity and local investment in the region. It is a catalyst for

business ventures in east London. This year, LCACC estimates that the airport generates almost

£ 700 million annually for the overall UK economy, mainly via passenger spending, employment

opportunities, the larger supply chain and productivity returns. Also, it serves as the main

gateway to the capital London for many inbound as well as outbound travelers. According to the

London City Airport statistics, more than 3 million passengers use the airport, with 60% and

61% of the passengers travelling for business and being inbound from overseas, respectively.

Owing to its outstanding performance in the whole of London as well as UK airport niches, the

airport this paper holds that it is an award-winning airport. For instance, recently it scooped the

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APCRG award for 'Responsible Business Champion in 2015, and the ACI Europe award 'Best

Airport in for three consecutive years - 2014, 2013 and 2012, respectively.

Passenger Profile

Presently London City Airport connects London to approximately 50 destinations within

Europe and delivers flagship business and leisure travel within Europe and around the world. In

2013, the facility reported 73,713 and 3,290,264 aircraft movements and passengers,

respectively, with an 18.38 percent increase in the number of passengers from the previous year

to 4,319,521 passengers handled in 2015 (London City Airport, 2016). The following charts

presents an overview of the passenger distribution based on several demographics.

Figure 3: Passenger Age Distribution at London City Airport (London City Airport, 2016)

Figure 4: Passenger Gender Distribution (London City Airport, 2016)

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Figure 5: Inbound and outbound journeys London City Airport 20 (London City Airport, 2016)

Figure 6: Passenger Distribution based on reason for travel (London City Airport, 2016)

Figure 3 shows that London City airport serves more adult passengers with the majority

aged 35 years and above. Figure 4 reveals that the airport serves more male passengers (65%)

compared to female (35%), while Figure 5 indicates that the airport serves more inbound

travelers (60%) than outbound traveler (40%). Similarly, more business-oriented passengers

(61%) frequent the airport compared to leisure travelers as depicted in Figure 6.

Airport Activities

London City Airport provides diverse facilities and services to improve the travel experience

of its passengers and keep up with the pace in the air travel industry. These facilities include:

passenger tracking system, self-bag tagging facilities, energy-saving solar-powered runway

lighting, reclaim luggage, shopping, eating and accommodation, car parking and hire, ATM

counters and Travelex Bureau de Change, complimentary Wi-Fi, and Facebook travel portal and

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the London City Airport app to offer immediate updates and real time information such as

advices, and flight details (London City Airport, 2016). Innovation is increasingly becoming the

most effective strategy to realize a better competitive advantage in the airport industry (Bentley,

2014, p.17). To keep up with the pace and effectively compete with other market players,

London City Airport has had no other option than continually offer a wide variety of facilities

and improve the quality of its services. Continued innovation and higher quality in service

delivery is the key to the airport’s potential to succeed in the current business environment

especially given the existence of many rival airports in London and the UK at large.

Physical Design and Capacity

Figure 7: Aerial View of London City Airport (CADP, 2013)

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Figure 8: Geographical Location of London City Airport (CADP, 2013)

Figure 9: London City Airport LYC

The Airport has a 1508 stretch runway situated between the Royal Albert Dock and King

George V Dock. The single runway handles short-haul flights but pays more focus on business

travel to Europe and specialized flights to New York. It has the Main Terminal and Jet Centre on

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which several airlines operate, including British Airways, Lufthansa, Blue Islands, Swiss

International Airlines, and KLM, among others.

The terminals rest on the western of the airport. The Jet Centre constitutes the single

Fixed Based on the site. The current terminal infrastructure can accommodate approximately

1,500 passengers per hour - both arrivals and departures (CADP, 2013). The site also

encompasses the airport’s apron, support facilities, maintenance facilities, fire station,

operational buildings, and ground handling facilities, among others. Access to the site include

taxi, bus or underground/DLR. Arrivals to the airport enters via the first floor and converge with

the ground floor on the way to the small terminal. After departing the aircraft, visitors pass

through passport control, luggage left, and Customs. On the other hand, departures from the

airport can be located on the first floor of the terminal. Travelers clear with security control upon

reaching the departure lounge, in which they can spot shops, bars, and restaurants.

Consequences of Physical Design and Capacity Limitations

There is potential congestion at the terminal building, including the departure and arrival

lounges due to the smaller size of the airport as a whole. This means that the limited airport

capacity is experiencing a lot of stress and could also be insufficient to handle larger passenger

streams based on the existing physical design and capacity. Nonetheless, the major consequence

of the limited physical capacity in the various facilities and terminals is that the airport cannot

adequately accommodate the peak departures and arrivals that characterize the international

arrivals corridor particular for business travelers opting to fly in and out of London in the

morning and afternoon hours. Similarly, the same inadequate capacity may not cater for the

unprecedented leisure-oriented passenger arrivals witnessed during the major annual season.

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Tourism industry is characterized by peak and low seasons that bear a significant impact on

airport traffic flows (Bubalo & Gaggero, 2015, p.27). Considering this capacity, the possibility of

excessive queuing and congestion are inevitable. It is imperative to note that this may bear an

adverse consequence to the airport as the level and quality of service to the clients may be

compromised during the peak periods (See & Li, 2015, p.9). Therefore, it is imperative to expand

the facility of innovate other strategic designs that can offset leverage this issue.

Another significant limitation is the small and single runway. The small runway implies

that the airport cannot welcome large aircrafts onto its ground field. In fact, the Airbus A318 is

the largest aircraft the airport can accommodate due to facility’s size. As a consequent, large

aircrafts divert to other adjacent airports who are rivals in the same market. This lowers the

competitive advantage of the London City Airport. Also, the single runway means that the

airport cannot handle multiple aircrafts at the same time. This is a major setback as large aircrafts

may not be welcome at the facility due to the limited space and to avoid congestion.

Furthermore, the present infrastructure conflates the conventional approach of efficient

airport operations as both arrivals and departures are handled in a single check-in building. This

dual-use of the terminals might be a significant constrain to the optimal potential of the facility.

Moreover, the current physical design does not serve ample space for car parking. It is important

to remember that a significant number of visitors access and leave the airport by car. Therefore,

the inadequacy of ample parking space might force passengers to leave their vehicles outside the

site. The consequence of this concern is the potential theft or damage to clients’ cars when they

are parked outside the facility.

Strategy of a City with Six Airports

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Market competition in the airport sector arises out of the need of an airport operator to

have significant influence over price and service features, among other considerations (Tanwar,

2013, p.12). Airports compete for serving shared local market. In particular, if two or more

airports are located near to each other, for example, within the same city like London and serve

the same market segment, market rivalry may arise in the struggle to curve a larger marker share

of airlines. The development of low cost carriers is a consequence of this type of competition

(Bubalo & Gaggero, 2015, p.24).

Also, they may compete for traffic. For large airports, connecting traffic is critical aspect

of the all traffic served by airports that contribute to over half of the overall number of travelers

for the large airports. Moreover, rivalry may be due to cargo traffic because it is relatively price

sensitive since cargo operators have a tendency to change their routes much easily. Besides that,

airports may rival for more attractive destinations. The quality, cost and variety of services and

products determine the attractiveness of a destination. As a consequent, airports have to evaluate

and improved to earn a more competitive advantage over other major industry players.

Figure 10: Distribution of London Airports

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The six airports in London have adopted Porter’s generic competitive strategies. A

company’s industry position dictates if its profit margin surpasses or exists below industry

average (Porter, 2008). The most effective strategy to realize this average profitability in the

long run is through having a sustainable competitive advantage. Within the airport industry, there

exist two kinds of competitive advantage - low cost or product/service differentiation. If

integrated within the spectrum of strategic operations, the airport can translate its strategies to

realize this performance in the sector – cost leadership, differentiation, and sharp focus.

Figure 11: Competitive Advantage (Porter, 2008)

In cost leadership, an entity strategizes to be the lowest cost producer in its sector through

strategies such as utilizing economies of scale. Should an airport attain and sustain general cost

leadership, it will be in a better position to fair in the industry; however it must control prices

either at or close to industry average (Tansey, Spillane & Meng, 2014, p.711). In differentiation,

an airport may set out to become distinct in the airport sector by identifying and focusing on the

major demands and preferences clients perceive to be more significant, and innovate strategies to

satisfy them. Clients become loyal because of its unique services within a premium cost

(Tanwar, 2013, p.13). In terms of focus, the airport opts for a narrow competitive scope in the

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airport sector. As such, the airport identifies one niche or a group of niches in the market and

customizes its strategy to serving this particular scope to the exclusion or its rivals. Its two

variant include focusing on the cost where the firms look for a cost advantage in its primary

niche and on differentiation in which the entity strive for differentiation in its primary niche

(Tanwar, 2013, p.12). The six airports in London employ Porter’s cost leadership, differentiation,

and sharp focus in their attempt to cope with the competition and succeed in the airport industry

as follows.

Located in western suburbs of London, the Heathrow airport is the only hub in the whole

city. Its international connectivity renders it the ideal option for long-haul flights. It focuses its

Terminal 1 on handling all domestic flights, while Terminal 3 and 4 handle long-haul flights and

US and European destinations, while Terminal 5 accommodates exclusively British Airways and

Iberia. It serves close to 72 million travelers each year and boast of the hub for long-haul

journeys. It focuses more on long-haul flights as the majority (93%) of the flights are

international, while 30%, 70% and 37% are business, leisure and transfer flights (Heathrow

Airport Holdings Limited, 2014). From these statistics, it is evident that Heathrow Airport

focuses on international flights and is differentiated largely in leisure travels. The airport serves

180 destinations globally, with a fleet of 82 airlines. Its primary catchment area is largely on

central London and stretches to the West and North West of the city. Given its central location,

passengers access its site through car (the majority with private car and Taxi accounting for 29%

and 27.8%, respectively) buses, coaches, trains, and London Underground. Due to its focus and

differentiation it emerged the best airport and the best airport for shopping in 2013 and 2014,

respectively, while it’s Terminal 5 emerged the best in 2014.

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In comparison, London Gatwick Airport is located in crawly, West Sussex. Unlike

Heathrow’s focus on long-haul flights, Gatwick concentrates on point-to-point air travel with the

majority being short-haul leisure travelers. Equally, it shares a wide scope of flight services with

Heathrow, which stretches to close to 240 destinations in approximately 90 nations, and 60

airlines. EasyJet and British Airways are the dominant carriers. Like Heathrow, its major source

of air traffic is concentrated on Central London, but stretches to south of the city especially in

Kent, Surry, and Sussex. Currently, it provides a blend of scheduled full services, scheduled low-

cost and charter carrier air transport services to an estimated 35 million capacity each year. In

2013, the airport earned the “Airport of the Year,” the “Exceptional Customer Services,” and

“Best UK Airport” awards (Gatwick Airport Limited, 2014). From Porter’s perspective, these

awards indicate its differentiation focus. Particularly, it differentiated scheduled and charter

carriers, besides, depicting cost focus as it seeks to enhance efficiency and quality of services

through low operation costs.

Similar to Heathrow and Gatwick, London Stansted airport features a wide scope of flight

offerings in more than 150 destinations within UK and Europe, and served by 14 airlines,

including Ryanair, EasyJet, Thomas Cook airlines, Air Berlin, and Pegasus. Its capacity can

accommodate 18 million clients each year. Located in Essex, the airport operates on a single

terminal and single runway, with an estimated 40 million passenger capacity each year (London

Stansted Airport, 2016,). Its central catchment area is London but stretches to the city’s north

east, with Westminster and East Anglia being the prominent. Its proximity to Central London

renders road and rail the most ideal access channel. In light of Porter’s model, Stansted Airport

features a cost focus strategy as it offers cost-efficient flights. Like Gatwick, Stansted delivers

scheduled and charter carrier flights. Furthermore, the airport focuses on short-haul journeys that

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are primarily leisure oriented, which are made possible by its low-cost carriers. Its differentiation

focus saw Stansted airport earn the global “Best Airport for Low-Cost Airlines for three

consecutive years – 2011, 2012, and 2013 (East Midlands Airport, 2015).

Situated in Bedfordshire, London Luton Airport is a one runway and single terminal

facility with its single terminal split into arrival and departure lounges. It focuses more on short-

to medium-haul, over 100 destinations across the world. Budapest, Dublin and Amsterdam are

the major destinations with the dominant EasyJet and Ryanair airlines providing low-cost

scheduled and charter flights serving close to 9.7 million passengers each year (London Luton

Airport Limited, 2015,). Its low-cost and diverse offerings have attracted increased air traffic

movements. Some of its major budget carriers include Thomson Airlines, Blue Air, and

TAROM. Its primary catchment area encompasses Greater London, Hertfordshire, Bedfordshire

and Buckinghamshire (London Luton Airport Limited, 2015,). Its proximity to the Central

London makes rail, coach and local bus more convenient access modes.

Compared to other airports in London, London City Airport largely focuses on business

short-haul flights largely across the European business market. Its primary focus is to meet the

demands of business travelers by delivering simple and cost effective flights coupled with check-

in services. Therefore, the airport is differentiated as a unique business airport. Its physical

proximity to City of London and the Canary Wharf explain business as the dominant focus of the

airport. Its air travel services are spread in about 50 destinations mainly across the USA, UK, and

Europe with a fleet of airlines serving the facility. Central London is the airport’s main source of

air traffic with South East England, Docklands, City of London, Westminster, and Tower

Hamlets being the airport’s primary destinations (LCACC, 2016). It is largely connected by

London Underground, Docklands Light railway, and coaches.

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London Southend airport is London’s brand airport located on the south east of Essex. It

focuses on large air carriers with its current physical capacity handling the size of Boeing 757

and Airbus A320. Its physical design features an extra space to accommodate 5 million visitors

annually (London Southend Airport (JAAP), 2015). The airport is dominated by the budget

EasyJet and Aer Lingus Regional operating in 15 destinations throughout UK and Europe, which

has led the facility, see a scaled-up air traffic flow. Its main source of traffic includes Essex and

Central London and linked by rail and road networks. Southend airport employs a cost focus

strategy as it provides not only competitive, but also cost-effective flights. As such, the airport

serves as a magnet for low-cost carriers as well as stimulating business and investments for

future economic growth. This earned it the “Best Airport in UK” according and the ERA’s

Airport Achievement Award for 2010/2011 and 2012/2013 (London Southend Airport, 2015).

Strategy Proposal for London Airport System

. First, London City Airport which largely focuses on business short-haul flights largely

across the European business market should increase its differentiation in the business niche, but

could also expand to long-haul business flights to attract more air traffic. This expansion might

help the facility penetrate other lucrative market niches for higher returns. Second, considering

its physical proximity to Central London, London City and Southend airports should expand

their connectivity by allowing more trains and coaches to improve the convenience and ease of

access to the facilities. This can increase the convenience and ease of access to the airport.

Third, Stansted airport may pursue more differentiation into the leisure segment as its

primary focus is on short-haul flights that are primarily leisure oriented and made possible by its

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low-cost carriers, while the Heathrow and Gatwick should enhance their global connectivity to

venture into untapped destinations to increase their air traffic. Moreover, London City airport

needs to increase its surface access by expanding its Jet Centre building and moving the Transco

gas valve to create more space for car parking and aircraft parking on the landside, respectively.

However, London Luton airport might concentrate more on the low-cost scheduled and charter

flights but diversify their services in its destinations spread across the world.

Generally, the London Airport system has to continually analyze current airport physical

design and capacity to ensure safety and reliability of flights, create intensive connectivity at the

airports, periodically conduct market analysis to understand the traffic profiles, catchment areas

and passenger demands for their primary targets and innovating strategies to meet them and

enhance the efficiency and quality of surface access transportation.

London Airports Strategy Confirmation

Several airports have drafted strategic plans to improve their competitive edge and

address the concern of limited capacity to ensure a sustainable future for the UK airport sector.

The overarching challenge facing these airports is the limited capacity. For instance, the

Heathrow and Gatwick are set out to expand their operations by building a third runway and

second runway, respectively to welcome more aircrafts.

Also, London City airport has strategic plan to enlarge its Jet Centre building to attract

more air traffic movements. Furthermore, London seeks to erect a new airport to its East to offset

congestion on its primary airports. However, environment impacts such as air and noise pollution

as well as issues with land use are major concerns with these proposed strategic projects

(Bentley, 2014, p.20).

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Current and future plans summary

Airport Current situation Future strategies

London City Airport -London is the largest

international air market in the

world, in terms of the number

of local and international

passengers.

-

-accommodate 8 million

passengers by 2030. This will

aid the support of London’s

growth hence continued

demand for business travel.

London Heathrow Airport -with five terminal buildings

and two parallel full-length

runways, the airport is

considered the third

busiest airport in the

global scene.

- The Heathrow airplane

terminal's core area of

concern is the absence of

runway limit, which is

standing out to be a

danger, and the air

terminal may lose the

demand for flights and

course system to other

European center points

-Planning and developing

Heathrow’s case for hub

expansion

- A three-runway Heathrow

will give up to 740,000

flights a year. This will be a

significant move for

Heathrow to contend on an

equivalent balance with Paris,

Frankfurt and Amsterdam. It

additionally gives adequate

hub-airport capacity until at

least 2040.

- Heathrow's rail limit will

treble from 18 to 40 trains

(comparable to 5,000 to

15,000 seats) 60 minutes.

With changes to bus and

coach services, 30 million

more individuals will go to

Heathrow by public transport

in 2030.

Gatwick Airport With two terminals and two

runways, the airplane

terminal works as a single-

runway air terminal. The

London Gatwick airplane

terminal working at 95%

limit is the world's busiest

single-runway airport. The

absence of runway limit is a

noteworthy concern which

can influence the future

development of the airport.

The London Gatwick air

terminal uses the

differentiation strategy by

-Build the effectiveness and

the value of services, by

producing most extreme

incomes and at low operating

expenses.

-Be more focused in the

business sector, substitute the

services of Heathrow's and

Stansted's and turn into the

London's air terminal of

choice.

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offering separate services to

the scheduled and charter

carriers. The Gatwick

airplane terminal likewise

utilizes the cost focus

strategy, with the rise of the

low-cost carriers.

London Southend airport -The Southend airplane

terminal, London's newest

and most cost-effective

airport on the south east of

the region of Essex. Southend

Airport is owned and

operated by the Stobart

Group.

- There were 617,017

travelers in 2012, 969,912 in

2013 and 1,001,343 in the 12

months to the end of February

2014. There are two main

airlines, Easyjet and Aer

Lingus Regional, working a

scope of UK local and

European flights, with

different carriers operating in

the charter flights on

occasional basis. From June

2014, flights operated by

Stobart Air under the Flybe

brand will operate to various

Northern European

destinations. In 2013 there

were 29,443 aircraft

developments, and almost no

cargo.

The environmental

assessment for the runway

augmentation plan

application depended on a 2

mppa forecast for 2020. The

planning permission for the

runway expansion limits the

movements of aircraft but not

traveler numbers.

Government decisions about

air terminals following the

Airports Commission's last

report, will ensure a

framework to future

advancement in the medium

and longer term. A master

strategy for London Southend

Airport for the medium and

long-term can then be

considered.

London Luton Airport London Luton Airport is a

one runway and single

terminal facility with its

single terminal split into

arrival and departure lounges.

It focuses more on short- to

medium-haul, over 100

destinations across the world.

Budapest, Dublin and

Amsterdam are the major

destinations with the

-The phased advancement of

London Luton over the next

15 years to encourage

development in passenger

numbers and carrier demands

that will avoid overbuilding

capacity. In addition, this will

ensure that costs is not passed

to the airlines and passengers

-Increasing the numbers of

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dominant EasyJet and

Ryanair airlines providing

low-cost scheduled and

charter flights serving close

to 9.7 million passengers each

year

travelers from about 10

million to 15-16 million p/a

over the next 10 years;

-Transforming Luton into

"London's Local Airport"

through continual change of

transport connections with the

capital, and watching over the

local environment and

community.

Stansted Airport Stansted Airport is considered

the 3rd largest airport in

London. The airport is

operated and owned by the

Manchester Airport Group

(MAG).

-it is characterized by 10,000

ft single runway hence is able

to accommodate the largest of

the aircrafts.

-with a spare capacity, the

airport can accommodate

around 40 million passengers

annually. This follows a cost

focus strategy.

-Keeping on supporting local

business through the Meet the

Buyers occasions. By 2017,

the management hope to

produce over £2m worth of

new contracts for local

businesses.

-Resolving to put resources

into energy proficient and

low carbon innovations with

an aim for air terminal

operations to end up carbon

neutral.

-Trying to minimize the

effect of all parts of noise

with an objective to tighten

the noise penalty limits.

-reduce, reuse, recycle target

to recycle 70% of waste by

2020 with zero landfill waste;

Keeping on enhancing the

Stansted Airport Employment

and Skills Academy,

providing training and jobs to

local population with a plan

to get 550 nearby individuals

into work a year whilst

expanding apprenticeship

opportunities to the young

population.

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Conclusion

The London airport industry contributes a great deal to the large UK’s economy through

jobs, foreign income, and stimulation of business and investments. Despite the high competition

in the industry, the six airports have pursed Porter’s generic competitive strategies to cope with

demands in the industry. However, the current physical design and capacity is a major concern.

More improvement need to be done to ensure proper connectivity, efficiency, access, and

leverage on their catchment areas, and as a result scale up their competitive advantage.