Concession Structure Analysis
Top 20 International Airports 1998
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Food and Beverage Concession Analysis |
Retail and Services Concession Analysis |
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Number 1 Ranking By Category |
Pass. Count Ranking |
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 |
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#1 & 13 |
1 |
73,127,267 |
9.65% |
$188,298,674 |
$2.57 |
$2.57 |
$90,969,428 |
$1.24 |
81,727 |
$92.76 |
895 |
$97,329,246 |
$1.33 |
80,067 |
$101.30 |
913 |
$194.06 |
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#10 & 14 |
2 |
72,485,228 |
9.57% |
$156,311,976 |
$2.16 |
$2.16 |
$81,964,809 |
$1.13 |
72,422 |
$94.31 |
1,001 |
$74,347,167 |
$1.03 |
41,963 |
$147.64 |
1,727 |
$241.96 |
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3 |
61,215,712 |
8.08% |
$262,295,664 |
$4.28 |
$2.58 |
$83,262,171 |
$1.36 |
103,355 |
$67.13 |
592 |
$74,499,910 |
$1.22 |
61,881 |
$100.33 |
989 |
$167.46 |
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4 |
60,368,466 |
7.97% |
$136,715,916 |
$2.26 |
$2.26 |
$65,176,538 |
$1.08 |
91,881 |
$59.11 |
657 |
$71,539,378 |
$1.19 |
69,855 |
$85.34 |
864 |
$144.46 |
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#3,4,5,6,7,9,12 & 16 |
5 |
40,368,500 |
5.33% |
$297,500,000 |
$7.37 |
$5.91 |
$153,500,000 |
$3.80 |
99,426 |
$128.66 |
406 |
$85,000,000 |
$2.11 |
50,657 |
$139.83 |
797 |
$268.48 |
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6 |
36,831,400 |
4.86% |
$104,087,791 |
$2.83 |
$2.83 |
$49,888,270 |
$1.35 |
67,400 |
$61.68 |
546 |
$54,199,521 |
$1.47 |
76,956 |
$58.69 |
479 |
$120.37 |
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7 |
28,982,638 |
3.82% |
$62,979,000 |
$2.17 |
$2.17 |
$26,025,000 |
$0.90 |
39,339 |
$55.13 |
737 |
$36,954,000 |
$1.28 |
30,246 |
$101.82 |
958 |
$156.94 |
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8 |
30,803,158 |
4.07% |
$62,002,960 |
$2.01 |
$2.01 |
$37,266,600 |
$1.21 |
55,000 |
$56.46 |
560 |
$24,736,360 |
$0.80 |
30,246 |
$68.15 |
1,018 |
$124.62 |
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9 |
34,041,712 |
4.49% |
$188,391,363 |
$5.53 |
$3.04 |
$51,589,863 |
$1.52 |
115,960 |
$37.07 |
294 |
$51,902,202 |
$1.52 |
44,532 |
$97.13 |
764 |
$134.20 |
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10 |
33,669,185 |
4.44% |
$54,520,919 |
$1.62 |
$1.62 |
$26,786,128 |
$0.80 |
67,689 |
$32.98 |
497 |
$27,734,792 |
$0.82 |
55,397 |
$41.72 |
608 |
$74.70 |
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#15 |
11 |
32,520,800 |
4.29% |
$77,589,000 |
$2.39 |
$2.01 |
$39,660,000 |
$1.22 |
57,100 |
$57.88 |
570 |
$25,568,000 |
$0.79 |
14,500 |
$146.94 |
2,243 |
$204.82 |
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12 |
31,769,113 |
4.19% |
$78,381,398 |
$2.47 |
$2.45 |
$44,536,550 |
$1.40 |
89,553 |
$41.44 |
355 |
$33,421,351 |
$1.05 |
38,494 |
$72.35 |
825 |
$113.80 |
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#8 |
13 |
31,043,500 |
4.10% |
$172,589,000 |
$5.56 |
$3.29 |
$42,523,000 |
$1.37 |
128,400 |
$27.60 |
242 |
$59,648,000 |
$1.92 |
64,150 |
$77.49 |
484 |
$105.08 |
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14 |
30,996,138 |
4.09% |
$60,471,846 |
$1.95 |
$1.95 |
$31,398,136 |
$1.01 |
35,770 |
$73.15 |
867 |
$29,073,710 |
$0.94 |
24,663 |
$98.24 |
1,257 |
$171.38 |
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15 |
28,700,622 |
3.79% |
$50,493,283 |
$1.76 |
$1.76 |
$33,088,344 |
$1.15 |
59,311 |
$46.49 |
484 |
$17,431,939 |
$0.61 |
30,723 |
$47.28 |
934 |
$93.77 |
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16 |
27,748,571 |
3.66% |
$90,560,385 |
$3.26 |
$2.91 |
$35,760,258 |
$1.29 |
94,499 |
$31.53 |
294 |
$45,115,382 |
$1.63 |
67,754 |
$55.49 |
410 |
$87.02 |
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17 |
26,744,530 |
3.53% |
$141,163,687 |
$5.28 |
$2.56 |
$30,057,368 |
$1.12 |
53,674 |
$46.67 |
498 |
$38,449,900 |
$1.44 |
48,213 |
$66.46 |
555 |
$113.12 |
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18 |
25,863,466 |
3.41% |
$71,601,948 |
$2.77 |
$2.44 |
$35,063,142 |
$1.36 |
67,668 |
$43.18 |
382 |
$27,940,795 |
$1.08 |
34,397 |
$67.69 |
752 |
$110.87 |
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19 |
26,526,708 |
3.50% |
$128,526,243 |
$4.85 |
$2.40 |
$38,169,298 |
$1.44 |
49,801 |
$63.87 |
533 |
$25,482,476 |
$0.96 |
29,157 |
$72.83 |
910 |
$136.70 |
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20 |
23,926,923 |
3.16% |
$53,226,900 |
$2.22 |
$2.23 |
$26,453,800 |
$1.11 |
40,600 |
$54.30 |
589 |
$26,953,500 |
$1.13 |
23,600 |
$95.17 |
1,014 |
$149.47 |
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:
Airports Council International - ACI
Airports Council
International –
Number 1 Ranking By Category
RMD has ranked each of the top twenty North American
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
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 "inplanements
and deplanements" at US airports. There are 151
airports in North America; however, 54.27% of 1,396,146,782 passengers travel
though the top twenty airports.
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 "in-planments and
de-plantments;" 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 "in-planments and de-plantments" 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.
New York's "JFK International Airport" food and beverage concession
program is an excellent example of this problem. JFK has an overall
NPYs of $3.22 while its NPY for food and beverage revenues is
$1.34. Clearly, with 136,747 square feet leased, the largest
in the US, JFK has over leased the food and beverage segment of their
airport. The point is that the NPY is a critical analytical element.
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. Boston's
Logan International Airport out performances Dallas Ft. Worth despite the fact
that DFW has 60,000,127 passengers, compared to Logan's 27,052,078 passengers.
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.
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.
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 1998 numbers
For a review of your international airport's 1999 numbers
For a list of the top 700 airports worldwide at year-end year 2000
Surface Mail
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Phone: 877-342-6203
Fax: 509-753-9649
Email: rdaniel@rmdfc.com
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