The Main Issues of Frankfurt Airport Management Faced

Abstract:

Frankfurt Airport serves as the main hub for Lufthansa, Germany’s biggest airline. It is the busiest airport in Germany, and the third busiest airport in the Europe. In this paper, it presents the main issues of airport management currently facing by the airport through indicating its problems and the effects. Frankfurt Airport is currently facing the security loopholes and airports competition. Airport management is playing a significant role to deal with its internal issues. The paper also examines a series of the impacts on economics, social and environment that carried out by the airport. These impacts have generated differences to the Frankfurt city.

Table of contents:

Abstract…………………………………………………………………………………………………………….1

Contents……………………………………………………………………………………………………………2

Introduction………………………………………………………………………………………………………3

1. Main issues

1. Security problem………………………………………………………………………………………4-5
2. Airport competition…………………………………………………………………………………..6-7

1. Analysis of the impacts

1. Economic impacts……………………………………………………………………………………….8
2. Social impacts……………………………………………………………………………………………..9
3. Environmental impacts……………………………………………………………………………….10

Summary…………………………………………………………………………………………………………..11

Reference…………………………………………………………………………………………………….12-13

Introduction:

Frankfurt Airport is a major international airport located in Frankfurt, the fifth-largest city of Germany and one of important financial centers. It is also the busiest airport by passenger traffic in Germany, the third busiest in Europe after London Heathrow Airport and Paris-Charles de Gaulle Airport. Frankfurt Airport has achieved a new record in 2014 as well. Some 59.57 million passengers passed through Germany’s largest aviation hub in 2014, an increase of 2.6 percent year-on-year. Having a significant reputation and business achievement, however, Frankfurt Airport is currently facing some main issues. The major issues are the security problem and airport competition. This could waver its profitable margin, passenger load and the reputation. This report examines the main issues of airport management that faced by Frankfurt Airport and analyzes the economic, social and environmental impacts on the host city.

1. Main issues
   

1. Security problem

 Despite Frankfurt Airport has handled a large number of passenger and cargo traffic with dramatic increased statistic year on year. But the security problem has caused a big problem to its internal management. Security is an important issue to airports. It directly affects the safety of passengers, aircrafts and properties. Since the 1970s, terrorism has become an issue for airlines and airports, when hijackings and bombings became the method of choice for terrorist, militant organizations around the world. Airports are became the target to those terrorist. It is because airports are the vulnerable point to a country. Once they are collapsed, it could cause the substantial damages to economy and society. Airport security refers to the techniques and methods using in protecting passengers, personnel and aircrafts which use the airports from accident, crime and other threats. Large numbers of people pass through airports every day. This presents potential targets for terrorism in a particular location. Frankfurt Airport is a major airport in Germany, it is critical to ensure the security work is well done. However, last year, the European Commission investigators are reported to have uncovered major deficits in security checks at Frankfurt Airport. They found it is easy to smuggle banned items past security at there. The report mentioned that the undercover investigators posing as passengers were able to smuggle weapons or other dangerous goods through security every second time they tried to do so. The main reason is because the security personnel were unable to conduct the checks because they were not been adequately trained and didn't have clear knowledge on it. The staff was incapable to recognize dangerous goods when the items were showed on the screens. The decline quality of personnel can refer to the training management. The management is obligated to guarantee the quality of staff. The wrong training could deliver the inadequate information to workers. The European Commission believes the security loophole came from the poor training. The report quoted that if the EU is not convinced that Frankfurt Airport has done enough to ensure passengers' security, it could change the German hub's status that could decline its reputation. Airport security attempts to prevent any threats or potential hazards from entering the country. If Frankfurt Airport failed to do so, then dangerous goods or any illegal activities could enter the aircrafts and countries. Passengers, staff, properties and even the third party could be threatened. To maintain its reputation and to comfort passengers, Frankfurt Airport management has immediately taken action to amend its security loophole. With many of security personnel seemed being incapable to identify dangerous objects during security check, A total of 2,500 workers were re-trained to ensure the same problem wouldn't happen again as well as to raise the level of security.

1.2 Airport competition

  Post deregulation, there is an easier entry for potential airlines. The raised of airlines caused the increase demand on airports. Since then, the competition between airports is emerged. It is because the airports become to privately owned and commercialized. Airports are competing for airlines, routes and passengers. Airlines and passengers are the main factors that are affecting choice of airport. For passengers, they would consider the destinations, flight fare, flight availability and time, frequency of service, cost of getting to airport, and the facilities at airport. For the airlines, they would consider the catchment area and potential demand, slot availability, network compatibility, airport fees, handling fee, maintenance facilities and quality of airport’s services. But more important factors for them to choose the airport are the price and services. In Europe, hub and spoke networks is the main pattern as a consequence of countries boundaries and the restrictions they imposed on traffic rights. European airlines are taking advantage of these to carry connecting international flight. Passengers can make a direct flight or transit flight through Frankfurt Airport. Frankfurt Airport handled 58 million passengers in 2013. And it handled 2.09 million metric tones freight with flight in 2013. The airport is located in the Frankfurt region, Germany's second-largest metropolitan region, there has a dense population in that region and strong connection with other neighbor regions. It has a geopolitical advantage on its operation. In the recent decades, Frankfurt Airport is facing a lot of threats from other airports, especially from the Middle Eastern hubs. In 2013, the passenger traffic at Dubai International Airport exceeded the Paris Charles de Gaulle and Frankfurt Airport, and it is expected to exceed London Heathrow Airport to become the world’s busiest airport. More airlines and passengers tend to choose Middle Eastern hubs as their transit hubs. In 2013, Dubai International Airport handled a record 66.4 million in passenger traffic, a 15.2 per cent increase over 2012. Besides, the emerged of Low Cost Carriers has caused the demand on secondary airports, since they provide cheaper price to airlines. More passengers choose their journey with these budget airlines. It has poses a threat to the primary airport. As facing an intense competition, airport management is required to make strategies on its business model. Some marketing techniques could be effective to raise its competency, such as discounting and incentives. A series of discount to airlines, it could stimulate the frequency of flights, the introduction of new routes and the volume of passenger. These methods can attract airlines to use the service of Frankfurt Airport. The airports nowadays have to compete with one another on price and service quality in order to retrain and attract the traffic.