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Shareholders
The most important
relationship within the
board is between Chairperson
chairperson and MD
Managing Director / Chief Executive Officer
Directors
Staff
In the UK it is generally
seen as good practice in The term ‘General Manager’
all but the smallest may be used for senior
organisations to managers below the level of
separate the roles of director who are responsible
Chairman and Chief for a significant functional
Executive area
2
Four broad areas of corporate governance (1):
Effective board of directors – balance between
executive and non-executive directors such that no one
individual or small group can dominate decision making.
Clear division of responsibilities and accountability, with
proper procedures for the appointment of new directors
and the provision of good quality information to facilitate
directors’ discharge of their responsibilities.
Directors’ remuneration – there should be a proper
policy and the remuneration of each director should be
disclosed in the annual report. Policy should be clear, no
director should determine their own remuneration. It
should be performance related and should be sufficient to
recruit and retain directors of the right calibre.
3
Four broad areas of corporate governance (2):
4
Other commentators on corporate social responsibility* suggest that the
above four areas are too narrow and that it covers three areas -- ‘the
triple bottom line’:
Economic
Social
Environmental
5
Reminder of the conventional structure of airline and
airport organisations:
Shareholders
Chairperson
CEO/MD
Directors
Staff
6
Generic, non-airline organisation chart for a small business:
7
Chief Executive/ Managing Director
10
The above also applies to airports, but additional issues are:
11 andy_hofton@hotmail.com
The organisational structure of any airport also depends
on where it is in the evolutionary process:
Again this argument will also apply to airlines, but the difference is
that there are more ‘start-up’ airlines run by entrepreneurs than there
12 are start-up airports
Transition from airport authority to airport enterprise
Contract issues
Price and performance
Service level agreements
Meet employment and safety legislation
15
What ARE aeronautical charges?
55
50
45
40
35
30
1998 1999 2000 2001 2002 2003 2004
20%
20%
8%
8%
Birmingham (BHX) to Hong Kong (HKG) : Departing: Tue 18 Nov - Returning: Mon
24 Nov
.
Your Award Options
Normal flight award - Fare Conditions
Miles required per
Passenger Tax and Fees
person
Miles & More Member 120,000 Miles 330.20 GBP
by government
by the airport
with approval of government or
government-appointed organisation
In fact, around the world …
€ 3,000
€ 6,000
€ 9,000
€ 12,000
€0
Mo o rk E
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Si n l sin k
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Aircraft related
J o Pap i d
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Passenger related
nn eete
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rg
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i
Guidance for aeronautical
charge structures
Cost-related
Transparent
Non-discriminatory
Framework of charges
Two types of charge, related to:
Aircraft movements
runway, taxiway use
airport infrastructure
parking
Passengers
use of passenger terminal
(PFC- passenger facility charge)
security inspections
Additional aircraft-related charges
Airbridge use
generally not an “extra” where most stands are contact
Landing charge
Related to weight of aircraft, usually as a unit charge per
1000kg (per tonne) of MTOW
Unit rate per tonne may
INCREASE with weight of aircraft,
DECREASE
Charge may be modulated by
Where the flight arrives from
Environmental charge
Time of day
Environmental penalties
NOISE penalty very common,
often incorporated in aircraft- specific landing
charge “bands”
Usually a wide “neutral” band of aircraft landing in
daytimes
Penaltiesfor noisy aircraft can be high, particularly for
night operations
E.g. night landings at Munich by aircraft not in the
airport’s “bonus list” are three times higher.
Environmental penalties
Emission penalty less common
related to specific emission profile of engine type
applied to all flights
E.g. for each kg of NOx produced in the LTO
(landing/take-off) cycle
Heathrow £1.10 (EUR1.50)
Stockholm SEK50 (EUR5.40)
or may have a band of “neutral” engine types
E.g. Zurich surcharge on landing charge of 0%-40%
Landing charge (runway + TNAV)
(1) Increasing cost per tonne as MTOW increases -
DELHI
DEL
850
Euro
750
650
550
MTOW (tonnes)
450
70 80 90 100 110 120 130
(2) FALLING cost per tonne as MTOW increases – OSLO
16,000
14,000
12,000
10,000
NOK
8,000
6,000
4,000
2,000
tonnes
0
0 50 100 150 200 250
(3) MAXIMUM charge and PEAK charge MANCHESTER
1,800
peak
1,500
1,200
GBP
900
600
off-peak
300
0
0 100 200 300 tonnes 400
(4) FLAT charge and PEAK charge
1,500
1,000
GBP
500
peak
off-peak
0
0 100 200 300 tonnes 400
Passenger charges
Security charge
Per capita: may be included in the PFC
Passenger charges from Jordanian airports
JOD
Jordan nationals 25
Jordan nationals resident in Arab
15
countries
non-Jordanians 10
I Introduction
IV En route charges
AMS Amsterdam
ATH Athens
BJL Mumbai
BUD Budapest
CDG Paris Charles de Gaulle
DUB Dublin
FCO Rome Fiumicino
FDF Fort de France
FRA Frankfurt
GIG Rio de Janeiro
ICN Seoul Incheon
KUL Kuala Lumpur
LHR London Heathrow
LIS Lisbon
LOS Lagos
MAD Madrid
PBM Paramaribo
PEK Beijing
SOF Sofia
WAW Warsaw
Landing charge, 2008
€ 4,000
€ 3,500
€ 3,000
€ 2,500
€ 2,000
€ 1,500
€ 1,000
€ 500
€0
0 50 100 150 200 250 300 350
Aircraft MTOW thousands of Kg (TONNES)
Airbus A319
£40 £80 !!
http://www.hmrc.gov.uk/budget2008/bn72.pdf
PBM
LOS
GIG
CDG
AMS
ATH
SOF
WAW
BUD
LHR
FRA
ICN A319, 80%
LIS load-factor
FDF
PEK
BJL
Airport charges
FCO
DUB aircraft related
KUL passenger related
TAX
MAD
€ 30
€ 25
€ 20
€ 15
€ 10
€5
€0
CDG
FDF
BUD
DUB
FRA
GIG
FCO
KUL
ICN
ATH
LHR
PEK
MAD
BJL
SOF
AMS
PBM
LIS
LOS
WAW
I Introduction
IV En route charges
Transfer passengers
Transfer passenger charge (PFC + security)
100%
80%
60%
40%
20%
0%
CDG
FDF
FRA
BUD
DUB
GIG
KUL
FCO
ATH
PEK
ICN
LHR
MAD
SOF
BJL
AMS
PBM
LOS
LIS
Amsterdam, 2007
60%
% of aeronautical charge which is
50% aircraft-related (A319 operation)
40%
30%
20%
10%
0%
CDG
FDF
DUB
BUD
FRA
FCO
GIG
KUL
PEK
MAD
ATH
LHR
ICN
SOF
AMS
PBM
EWR
LOS
LIS
WAW
I Introduction
IV En route charges
En route charges
Eurocontrol formula