TAV Airports has sent a clear message to airports that their commercial focus needs to improve to flourish.

 

The Turkey-based global airport operator participated in the 20th World Route Development Forum in Chicago at which President & CEO Sani Şener (right) expressed the view that airports must find better ways to finance themselves in the future.

 

Speaking at the first day of the event in a panel entitled ‘Airports under Pressure’ Şener stated: “Commercial income and air traffic are significant elements of airport financing. Airlines aim to reflect airport operational costs as the competition among them increases. In addition, airport infrastructure must be expanded because of increasing air traffic.

 

“All these competitive demands can be balanced only if the non-aviation revenue – which can reach 70% of total revenue – is increased. Non-aviation revenues such as retail and F&B must be taken into consideration when airports are planned.”

 

The TAV CEO believes that aviation revenues at airports will continue to reduce, and says that only airports having air traffic that can support their operations and successful trading will survive. He argues that the ‘public-private sector collaboration’ model is advantageous for both the governments and investors at large airports that have financial problems, while government support and guarantees are needed for small airports.