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priority. Airports’ spending capacity declined
in 2020 because of travel restrictions in place
around the world; private airports that tended
to be early adopters of passenger flow man-
tified for the isolation of any suspected symptomatic passenger agement solutions were among those most
before transferring them to the designated facility. affected. Potential airline bankruptcies present
There are well over 4,000 airports across the globe with scheduled a major risk for airports, especially for airports
traffic. According to Airports Council International (ACI), a global that serve as hubs to struggling airlines.
trade group for the world’s airports, these generated revenues of
US$172.2 billion in 2017, up 6.2 per cent year-on-year. The airport Regulations focused on passenger data secu-
industry has steadily expanded in recent years, driven by strong rity and integrity will be a challenge for the
growth in passenger traffic. In 2019, total trips exceeded 9 billion— development and implementation of passenger
up 3.4 per cent year-on-year. flow management solutions. Internet of Things
technologies will drive market growth, but a
Airports have high fixed costs associated with the provision and concern is that the implementation of sensors
maintenance of infrastructure and services such as safety and on a large scale increases the number of entry
security. These are incurred regardless of traffic levels. Airport points for cyberattacks that could disrupt air-
owners and operators, therefore, have limited scope to curtail costs port operations.
when facing a downturn in demand. Operating expenses comprise
about 65 per cent of total costs and include staff costs (30–40 per In the near term, airports may pursue opportu-
cent), contracted services (20–25 per cent), utilities (about 7 per nities to leverage technology to help custodial
cent), and rent or concession fees (about 7 per cent). Capital costs services perform as efficiently and effectively as
(on average, 35 per cent) mainly comprise depreciation (about 65 possible. Increasing channels for passengers
per cent) and interest payments (about 32 per cent). to report service issues can improve custodial
responses and create a sense of control over
COVID-19 has had an immediate, dramatic impact on airport traffic the environment. Airports can also take steps
and revenue. The economic crisis that will follow the pandemic to inform passengers of custodial measures
will continue to drive lower demand for air travel in the immediate already taken to convey commitment to clean-
aftermath. liness—proactive and specific communications
can give passengers confidence that the air-
Effect on Passenger Traffic port environment is clean and sanitary.
The COVID-19 pandemic has reduced passenger traffic worldwide.
The disruption began in Asia-Pacific, but the rapid spread of the Finally, airports can consider the extent to
virus and the containment measures implemented in response— which they want to be involved in direct pas-
such as government recommendations to avoid travel and airport senger health through temperature scans and
closures—led to a 22.9 per cent drop in global air traffic last other advanced health screening technology
February and 53.1 per cent last March. and look for opportunities to collaborate with
airlines and terminal operators to implement
The sudden drop in air traffic has led to almost complete paralysis health-screening capabilities and other ser-
of both aeronautical and non-aeronautical revenues. As airlines cut vices. The stand-off temperature and fever
capacity, the aeronautical revenues airports receive from airlines, detection systems can help identify passengers
such as landing charges for aircraft and security charges, fall. for additional screening. The use of standard
no-touch forehead thermometers can also pro-
The pandemic has accelerated digital transformation projects vide additional health and safety confidence
related to passenger experience, with self-service becoming a for passengers.
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