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

Transcription

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

2 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

3 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

4 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.

5 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

6 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,

7 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

8 APCRG award for 'Responsible Business Champion in 2015, and the ACI Europe award 'Best Airport in for three consecutive years , 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 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)

9 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

10 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)

11 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

12 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.

13 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

14 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

15 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

16 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.

17 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 lowcost 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

18 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 shortto 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 checkin 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.

19 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

20 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).

21 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. - London Heathrow Airport Gatwick 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 With two terminals and two runways, the airplane terminal works as a singlerunway 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 -accommodate 8 million passengers by This will aid the support of London s growth hence continued demand for business travel. -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 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 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.

22 London Southend airport London Luton Airport 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. -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 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. 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 environmental assessment for the runway augmentation plan application depended on a 2 mppa forecast for 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. -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

23 Stansted Airport dominant EasyJet and Ryanair airlines providing low-cost scheduled and charter flights serving close to 9.7 million passengers each year Stansted Airport is considered the 3 rd 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. travelers from about 10 million to 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. -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.

24 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.