Profitability And Future Viability of LGBI Airport Guwahati with Respect to Both Traffic and Non-Traffic Sources of Revenue
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Abstract
Aviation business has a significant role to play in any nation’s economy and had proven to be major contributor in GDP of any Nation across the world. Although the activities involved in Aviation are highly sensitive in nature and do not permit to have experiment or delayed decisions while in operations. On the other hand, revenue generation from Aviation to keep the operations floating remains a big challenging task for Aviation professionals. Here we are focussing on profitability of LGBI Airport Guwahati with respect to Traffic and Non traffic revenue sources. Profitability of any Airport depends on optimum utilization of resources available on Air side, within terminal and on city side as well. Further we know that due to Air traffic tariff being controlled as per Regulation from IATA, ICAO therefore there is not much scope of enhancing Air traffic revenue however the shortfall on Air traffic revenue can be compensated by Non Aero sources of revenue as there is no such regulations on Non Traffic revenue. Certain measures which may have direct impact on Non Aero revenue like minimising passengers queuing time, right flight gate allocations, making availability of more commercial space, subsequently increasing the dwell time through innovative methods for ease of passenger’s convenience. The percentage share of Traffic VS Non traffic revenue at Indian Airports remain 25/75 ratio with the exception at Major Airports like DIAL, MIAL, BIAL and HIAL etc. where Non traffic revenue is nearing 30-35 percentage of total revenue. Here under this paper we will analyse the complete revenue generated at LGBI Airport w.r.t Traffic and Non traffic and will try to figure out that which are the factors most affecting the revenue growth and which are the factors affecting negatively and to be discarded.