Concession Structure Analysis

Top 30 International Airports 2005

July 13, 2006

 

Synopsis of Analysis

 

Concession Analysis

Food and Beverage Concession Analysis

Retail and Services Concession Analysis

Overall

Number 1 Ranking By Category

Pass. Count Rank- ing

Airports

Passenger Count Cat. #1

% Total Cat. #2

Total Revenues Cat. #3

Total NPY Cat. #4

NPY Less Duty Free & Gen. Serv. Cat. #5 

Revenues Cat. #6

NPY Cat. #7

SQF Cat.

Mthly RPSF Cat. #9

Pass. Count to Sq. Ft. Leased Cat.   #10 

Revenues Cat. #11

NPY Cat. #12

SQF Cat. #13 

Mthly RPSF Cat. #14

Pass. Count to Sq. Ft. Leased Cat.

Overall RPSF Cat. #16

#8 

#15 

 1, 2, 3

1

Atlanta (ATL)

85,907,423

6.466%

$207,660,847

$2.42

$2.42

$132,641,290

$1.54

       96,265

$114.82

892

$75,019,558

$0.87

      93,916

$66.57

915

$181.39

 

2

Chicago (ORD)

76,510,003

5.759%

$181,648,430

$2.37

$2.37

$116,026,118

$1.52

       84,327

$114.66

907

$65,622,312

$0.86

      82,269

$66.47

930

$181.13

 

3

London Heathrow Airport

67,915,389

5.112%

$170,092,215

$2.50

$2.23

$108,644,701

$1.60

       78,088

$115.94

870

$61,447,513

$0.90

      76,183

$67.21

891

$183.16

 

4

Tokyo International Airport (Haneda)

63,282,219

4.763%

$24,202,557

$0.38

$0.34

$15,459,141

$0.24

       80,954

$15.91

782

$8,743,416

$0.14

      78,979

$9.23

801

$25.14

7

5

Los Angeles International Airport

61,485,269

4.628%

$171,980,209

$2.80

$2.80

$109,850,639

$1.79

     106,130

$86.25

579

$62,129,570

$1.01

    103,541

$50.00

594

$136.26

 

6

Dallas-Fort Worth International Airport

59,064,360

4.446%

$134,664,921

$2.28

$2.28

$86,015,872

$1.46

       98,486

$72.78

600

$48,649,049

$0.82

      96,083

$42.19

615

$114.98

 

7

Charles De Gaulle International Airport

53,756,200

4.046%

$124,818,981

$2.32

$2.07

$79,726,876

$1.48

     115,344

$57.60

466

$45,092,105

$0.84

    112,530

$33.39

478

$90.99

 

8

Frankfurt International Airport

52,219,412

3.930%

$114,910,188

$2.20

$1.96

$73,397,733

$1.41

       97,599

$62.67

535

$41,512,454

$0.79

      95,217

$36.33

548

$99.00

 

9

McCarran International Airport

44,280,190

3.333%

$79,791,663

$1.80

$1.80

$50,966,127

$1.15

       60,958

$69.67

726

$28,825,536

$0.65

      59,470

$40.39

745

$110.07

 

10

Amsterdam Schiphol Airport

44,163,098

3.324%

$108,423,334

$2.46

$2.19

$69,254,320

$1.57

       63,116

$91.44

600

$39,169,014

$0.89

      61,576

$53.01

717

$144.45

 

11

Denver International Airport

43,387,335

3.266%

$114,053,464

$2.63

$2.63

$72,850,509

$1.68

     116,775

$51.99

372

$41,202,954

$0.95

    113,926

$30.14

381

$82.13

 

12

Barajas International Airport

41,939,904

3.157%

$60,199,346

$1.44

$1.28

$38,451,730

$0.92

     129,176

$24.81

325

$21,747,616

$0.52

    126,024

$14.38

333

$39.19

 

13

Sky Harbor International Airport

41,204,071

3.101%

$110,798,390

$2.69

$2.69

$70,771,364

$1.72

       80,363

$73.39

513

$40,027,027

$0.97

      78,402

$42.54

526

$115.93

 

14

Beijing Capital International Airport

40,989,651

3.085%

$30,117,680

$0.73

$0.65

$19,237,367

$0.47

       45,823

$34.98

895

$10,880,313

$0.27

      44,705

$20.28

917

$55.27

 

15

John F. Kennedy International Airport

40,584,001

3.055%

$72,120,701

$1.78

$1.78

$46,066,377

$1.14

       68,052

$56.41

596

$26,054,325

$0.64

      66,392

$32.70

611

$89.11

 

16

Hong Kong International Airport

40,282,000

3.032%

$27,226,806

$0.68

$0.60

$17,390,850

$0.43

       69,859

$20.75

577

$9,835,956

$0.24

      68,155

$12.03

591

$32.77

 

17

George Bush (Houston) Intercontinental Airport

39,713,920

2.989%

$73,048,607

$1.84

$1.84

$46,659,067

$1.17

       59,938

$64.87

663

$26,389,540

$0.66

      58,476

$37.61

679

$102.48

 

18

Bangkok International Airport

38,985,043

2.934%

$40,969,617

$1.05

$0.94

$26,168,933

$0.67

       64,734

$33.69

602

$14,800,684

$0.38

      63,154

$19.53

617

$53.22

8

19

Minneapolis-Saint Paul International Airport

37,563,664

2.827%

$78,161,842

$2.08

$2.08

$49,925,095

$1.33

     138,863

$29.96

271

$28,236,747

$0.75

    135,474

$17.37

277

$47.33

 

20

Detroit Metropolitan Wayne County Airport

36,374,906

2.738%

$70,979,551

$1.95

$1.95

$45,337,479

$1.25

       74,408

$50.78

489

$25,642,073

$0.70

      72,593

$29.44

501

$80.21

 

21

Orlando McCoy International Airport

33,907,396

2.552%

$75,199,689

$2.22

$2.22

$48,033,049

$1.42

       70,071

$57.12

484

$27,166,640

$0.80

      68,361

$33.12

496

$90.24

 9,10,12,14,15,16

22

San Francisco International Airport

33,580,662

2.528%

$96,753,705

$2.88

$2.56

$61,800,462

$1.84

       35,750

$144.06

939

$34,953,244

$1.04

      34,878

$83.51

963

$227.57

13

23

Newark Liberty International Airport

33,033,569

2.486%

$91,478,775

$2.77

$2.77

$58,431,153

$1.77

     132,666

$36.70

249

$33,047,622

$1.00

    129,429

$21.28

255

$57.98

 

24

London Gatwick Airport

32,784,177

2.468%

$88,527,098

$2.70

$2.70

$56,545,798

$1.72

     128,686

$36.62

255

$31,981,299

$0.98

    125,546

$21.23

261

$57.85

 

25

Singapore Changi Airport

32,430,856

2.441%

$67,908,284

$2.09

$2.09

$43,375,737

$1.34

     124,825

$28.96

260

$24,532,547

$0.76

    121,779

$16.79

266

$45.75

 

26

Narita International Airport

31,525,275

2.373%

$50,019,239

$1.59

$1.59

$31,949,289

$1.01

     121,080

$21.99

260

$18,069,950

$0.57

    118,126

$12.75

267

$34.74

 

27

Philadelphia International Airport

31,502,855

2.371%

$74,556,007

$2.37

$2.37

$47,621,904

$1.51

     132,666

$29.91

237

$26,934,103

$0.85

    129,429

$17.34

243

$47.26

 

28

Miami International Airport

31,008,453

2.334%

$78,990,627

$2.55

$2.55

$50,454,473

$1.63

     104,760

$40.13

296

$28,536,154

$0.92

    102,204

$23.27

303

$63.40

 

29

Toronto Pearson International Airport

29,914,925

2.252%

$68,481,586

$2.29

$2.29

$43,741,928

$1.46

       57,109

$63.83

524

$24,739,658

$0.83

      55,716

$37.00

537

$100.83

 

30

Seattle-Tacoma International Airport

29,289,009

2.205%

$77,548,199

$2.65

$2.65

$49,533,137

$1.69

     100,471

$41.08

292

$28,015,062

$0.96

      98,019

$23.82

299

$64.90

 

 

Totals

1,328,585,235

100.000%

$2,765,332,558

$2.08

$60.67

$1,766,328,518

$39.92

  2,737,343

$1,743.78

16154

$999,004,040

$22.58

 2,670,552

$1,010.92

16558

$2,754.70

 

 

 

Synopsis of Analysis

 

RMD Financial Corporation generated this "concession structure analysis" based upon the information and documents provided by the sources listed below and others.

The purpose of this analysis is to provide a "first level" preliminary economic analysis of the top twenty international airports in North America.    We have outlined above a "sixteen-point analysis"  of the critical first level financial issues a concessionaire should consider as he/she evaluates a concession opportunity at an international airport.    This first level concession structure analysis is the starting point as one completes an analysis of an airport's concession program.   Before anyone invest in an airport concession program they should complete both a "level two and  three" financial analysis of each airport's concession program.

Do not use this analysis as your "primary investment analysis source" when you decide to invest in an airport concession program.

 
 

Primary Information Sources:

      • The international airports listed above;
      • Airports Council International;
      • Federal Aviation Administration;
      • US Department of Transportation; and
      • RMD Financial Corporation's staff and clients.

 

 

 

 Airports Council International  -  ACI

Airports Council International – North America, head quartered in Washington, D.C., is the "Voice of Airports" for North America, and the largest region of the worldwide Airports Council International. Our members span the continent and provide millions of passengers access to hundreds of destinations every day. From the snowy mountains of Calgary to the sun-drenched airports of southern Florida, ACI-NA's member airports are the portals to the world.  ACI-NA's member airports handle over 95 percent of the domestic-and virtually all of the international-air passenger and cargo traffic in North America.

 
 

 

 
 

 

Number 1 Ranking By Category

 RMD has ranked each of the top thirty international airports above  based upon the 16 major analytical categories listed below.   The  "number one" airport in each category has been identified.   The number one "overall all" international airport in North America, from the stand-point of "concession management and revenue performance" is San Francisco International Airport.  and  the "worst overall" international airport is Philadelphia International Airport.

  


 

Pass. Count Ranking

Passenger Count Ranking are determined by the Airports Council International of North America based upon the FAA's annual report of passenger  "enplanements  and deplanements"  at US airports.   There are 151 airports in North America; however, 56.87% of 1,354,262,379 passengers travel through the top twenty airports. 
 

 


 
 
Airport

RMD has listed each of the top twenty North American international airports above  based upon their passenger traffic.   RMD has included a "web site link" to the home page of each  international airport.   Each web site link will enable you to secure more detailed information about each airport.
 
 
Passenger Count Cat. #1
 
Passenger Count - Category #1 - The FAA generates an annual report of passenger "enplanements and deplanements;" based upon information provided to the agency by aviation managers.

 


 
% Total Cat. #2
 
% Total - Category #2 - The passenger traffic of each international airport is compared to the total passenger traffic for the top twenty North American international airports, and the % of traffic controlled by each airport is listed.

 


 
Total Revenues Cat. #3
 
Total Revenues - Category #3 - Each international airport publish the annual revenues for each "revenue source" to includes, retail, services, landing fees, food and beverage revenues.   This information published in the "request for proposals"  issued by each airport when the seek public bids for services.    Trade magazines such as "World Airport Retail News"  publish annual detailed revenue numbers.   RMD's concession structure analyses are limited to retail, services, food and beverage revenues; with an "adjustment" for "Duty Free and General Services" revenues.    This "adjustment" allows for a more comparative analysis of all airports.

 
 

Total NPY Cat. #4

Total Net Passenger Yield - Category #4 - The "net passenger yield" for each airport reflects a "computed net dollar yield" for each airline passenger.    Both passenger  "enplanments and deplanements" numbers are included in the analysis.  The  net passenger yield numbers  for retail, services, food and beverage revenues serves as an indication of how well each airport has structured its concession program.   An airport with a "retail NPY" of $5.50 is generating greater revenues for their concessionaires and airport authority than an airport generating NPYs of $2.50.    An airport could be generating above average NPYs and still be a poorly managed airport from the standpoint of the concessionaire 

 


 
 
NPY Less Duty Free Cat. #5
 
Net Passenger Yield Less Duty Fee - Category #5 - The "net passenger yield" for each airport reflects a "computed net dollar yield" for each airline passenger.    Only five of the top twenty international airport realize significance "Duty Free" revenues.    Hence, we have computed the impact of "Duty Free Revenues" on overall revenues.  RMD's concession structure analyses are limited to retail, services, food and beverage revenues; with an "adjustment" for "Duty Free" revenues.    This "adjustment" allows for a more comparative analysis of all airports.

 

 

 
 
Food and Beverage Concession Analysis Cat. #6 -10

Food and Beverage Concession Analysis - Category #6 - 10
Each element of food and beverage revenues are analyzed separately to determine which international airport has the most "economically sound" concession program.   The "economic soundness" of an airport's concession program is not driven by the size of the airport or the passenger traffic.    A concessionaire's evaluation of an airport's concession program should include an analysis of the issues outlined below, the other relevance categories in this report and a detailed study of passenger traffic.  
 

    • Revenues Cat. #6  - Gross food and beverage revenues;
    • NPY Cat. #7 - Net Passenger Yield for  food and beverage revenues;
    • SQF Cat. #8 - Leased  food and beverage space at the airport;
    • Mthly RPSF Cat. #9 - Monthly Revenues Per Square Foot  for  food and beverage revenues; and
    • Pass. Count to Sq. Ft. Leased Cat. #10 - The relationship between "passenger count" and "leased square footage."

 

 

 

 

Retail and Services Concession Analysis Cat. #11 - 15

Retail and Services Concession Analysis - Category #11 - 15
Each element of retail revenues are analyzed separately to determine which international airport has the most "economically sound" concession program.   The "economic soundness" of an airport's concession program is not driven by the size of the airport or the passenger traffic.    A concessionaire's evaluation of an airport's concession program should include an analysis of the issues outlined below, the other relevance categories in this report and a detailed study of passenger traffic.  
 

    • Revenues Cat. #11 - Gross retail revenues;
    • NPY Cat. #12 - Net Passenger Yield for retail revenues;
    • SQF Cat. #13 - Leased  retail space at the airport;
    • Mthly RPSF Cat. #14 - Monthly Revenues Per Square Foot  for  retail revenues; and
    • Pass. Count to Sq. Ft. Leased Cat. #15  - The relationship between "passenger count" and "leased square footage."

 

 

 
 


 
 
Overall RPSF Cat. #16

Overall Revenues Per Square Foot  - Category #16
The purpose of this category is to establish a "standard" for all airport.   The economic impact of all 16 categories are used to compute the Overall Revenues Per Square Foot analysis.     A concessionaire's evaluation of an airport's concession program should include an analysis of the issues outlined above, the other relevance categories in this report and a detailed study of passenger traffic.  

 

How does your airport rank?

 

Is it the worst international airport for concessionaires?

 

Is it the best international airport for concessionaires?

 

 For a review of your international airport's numbers  click here

 

  For a list of the top 600 airports worldwide click here

 

  

 

 

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