1

A CASE STUDY ON THE SELECTION OF DUAL TILL VERSUS SINGLE TILL CHARGESJoão Teixeira

AIRDEV 2012

Lisbon, April 19-20 2012

2012

2

Introduction

Airports require that a charge be paid by their user –

mainly airlines.

This “airport charge” can be broken down into smaller

fees, for example for Amsterdam Schipol Airport, in

2010:

Landing Passenger Security Infrastructure T. Navigation Noise Total

Value (EUR) 662€ 1481€ 1328€ 40€ 202€ 173€ 3886€

% 17% 38% 34% 1% 5% 5% 100%

3

Introduction

Low cost carriers, having an ever increasing position,

often negotiate charges with airports, and sometimes

make the airport completely dependent on the airline.Rank Airline Passengers (Thousands/year)

1 Ryanair 57 647

2 Lufthansa 42 151

3 easyJet 35 417

4 Air France 32 508

5 British Airways 29 054

Some airports have

disporportionaly high

non-aeronautical charges0%

20%

40%

60%

80%

FRA CDG OSL DUB AMS FCO CPH VIE LHR LIS BRU MAD

% o

f A

ero

na

uti

cal

Re

ve

nu

es

Airport

% of Aeronautical revenues

4

European Charges Overview

Objective: Figure out the main diferences in

characteristics in single and dual till airports

Airport Type of till Country GDP/capita(ppp) Private Ownership

Share

LONDON HTW single England $34.800 100%

PARIS CDG single France $33.100 33%

FRANKFURT FRA dual Germany $35.700 47%

MADRID MAD single Spain $29.400 0%

AMSTERDAM AMS dual Netherlands $40.300 0%

ROME FCO dual Italy $30.500 97%

MILAN MXP dual Italy $30.500 1%

DUBLIN DUB single Ireland $37.300 0%

COPENHAGEN CPH dual Sweden $36.600 77%

OSLO OSL single Norway $54.600 0%

VIENNA VIE dual Austria $40.400 50%

BRUSSELS BRU hybrid Belgium $37.800 75%

LISBON LIS single Portugal $23.000 0%

5

European Charges Overview

Sample airplane:Model Airbus A319

MTOW 75,5 tons

Maximum number of passengers 156

Occupancy 80%

Total number of passengers 124

Number of engines 2

Flight route Intra-Schengen

Airport Charge Till

LONDON HTW 4.466 € Single

LISBON LIS 2.433 € Single

MADRID MAD 1.821 € Single

PARIS CDG 2.698 € Single

OSLO OSL 4.065 € Single

DUBLIN DUB 2.506 € Single

BRUSSELS BRU 3.565 € Hybrid

AMSTERDAM AMS 3.756 € Dual

MILAN MXP 1.730 € Dual

FRANKFURT FRA 2.579 € Dual

ROME FCO 2.205 € Dual

COPENHAGEN CPH 2.834 € Dual

VIENNA VIE 3.201 € Dual

Airport charges

calculated (2010):

6

European Charges Overview

Average charge by till type

Measure Dual Single

Average 2.718 € 2.998 €

Absolute deviation 865,24 € 1.032,60 €

1.500 €

2.000 €

2.500 €

3.000 €

3.500 €

4.000 €

4.500 €

5.000 €

0,0 20,0 40,0 60,0 80,0

Ch

arg

e

# of Passengers (Million)

Charge vs Traffic

Single Till

Dual Till

7

European Charges Overview

Does the Charge level depend on a countries GDP?

1.500 €

2.000 €

2.500 €

3.000 €

3.500 €

4.000 €

4.500 €

5.000 €

$0 $20.000 $40.000 $60.000

Ch

arg

e

GDP/capita (PPP) %

Charge vs GDP/capita(PPP)

Single Till

Dual Till

� � �������

���������������� 100

8

European Charges OverviewAirport Charge Till GDP/capita(ppp) Q

LONDON HTW 4.466 € Single $34.800 12,83

PARIS CDG 2.433 € Single $23.000 10,58

FRANKFURT FRA 1.821 € Single $29.400 6,19

MADRID MAD 2.698 € Single $33.100 8,15

AMSTERDAM AMS 4.065 € Single $54.600 7,45

ROME FCO 2.506 € Single $37.300 6,72

MILAN MXP 3.565 € Hybrid $37.800 9,43

DUBLIN DUB 3.756 € Dual $40.300 9,32

COPENHAGEN CPH 1.730 € Dual $30.500 5,67

OSLO OSL 2.579 € Dual $35.700 7,22

VIENNA VIE 2.205 € Dual $30.500 7,23

BRUSSELS BRU2.834 € Dual $36.600 7,74

LISBON LIS 3.201 € Dual $40.400 7,92

Measure Dual Single

Average 7,52 8,65

Absolute Deviation 1,19 2,56

Variance 1,41 6,54

The difference is even greater

when standardized for GDP!

9

European Charges Overview

4,00

5,00

6,00

7,00

8,00

9,00

10,00

11,00

12,00

13,00

14,00

0% 20% 40% 60% 80% 100%

Q

% of international traffic

Q vs % of international traffic

Single Till

Dual Till

10

European Charges Overview

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 10 20 30 40 50 60 70

% o

f p

riv

ate

sh

are

nº of passengers/employee (thousands)

% of private share vs nº

passengers/employee

Single Till

Dual Till

11

Brussels airport

26%

46%

18%10% Single till charge

breakdown13%

56%

24% 7% Dual till charge

breakdown

10%

56%

26%7%

Brussels charge breakdownlanding + TO charge

passenger charge

security

other charges

Brussels Airport is moving from a single to a dual

till, since 2006, over a 20 year period.

12

Brussels Airport

0,00 5,00 10,00 15,00

Q

Single Till

Brussels

Dual Till

0 20 40 60 80

Number of passengers/employee

Single Till

Brussels

Dual Till

0% 20% 40% 60% 80%

% of Aeronautical revenues

Single Till

Brussels

Dual Till

Higher charges than

dual till airports

Higher sub-contracting

Underdeveloped non-

aeronautical business

13

Conclusions

Single till airports show, on average, higher charges

than dual till ones

Sub-contracting levels is the parameter that better

supports this conclusion

Brussels airport is in the right track to reach a dual

till, but should try to lower charges, possibly by

reducing the ammount of sub-contracts

14

A CASE STUDY ON THE SELECTION OF DUAL TILL VERSUS SINGLE TILL CHARGES

João Teixeirajoaotteixeira@ist.utl.pt

2012

15

More Data

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

0,0 20,0 40,0 60,0 80,0

Q

# of Passengers (Million)

Q vs Traffic

Single Till

Dual Till

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

0% 20% 40% 60% 80% 100%

Q

Privatization %

Q vs Privatization %

Single Till

Dual Till

4,00

6,00

8,00

10,00

12,00

14,00

0 200 400 600

Q

nº of aircraft movements (2008)

Q vs nº of aircraft movements

Single Till

Dual Till

4,00

6,00

8,00

10,00

12,00

14,00

0 100 200 300

Q

nº of gates (2008)

Q vs nº of gates

Single Till

Dual Till

16

More DataLinear Regression of Charge dependent on GDP/capita(ppp)

Till N Mean

Std.

Deviatio

n

Std.

Error

Mean

Charge

Single 6 2997,831032,69

0

421,5

94

Dual 6 2717,00 719,180293,6

04

Levene's Test

for Equality

of Variances

t-test for Equality of Means

95% Confidence

Interval of the

Difference

F Sig. t df

Sig. (2-

tailed)

Mean

Difference

Std. Error

Difference Lower Upper

Charge

Equal

variances

assumed

1,452 ,256 ,547 10 ,597 280,833 513,756 -863,886 1425,552

Equal

variances not

assumed

,547 8,926 ,598 280,833 513,756 -882,826 1444,492

17

More Data

0% 20% 40% 60% 80% 100%

Private Share

Single Till

Brussels

Dual Till

0,00 20,00 40,00 60,00 80,00

Number of passengers (Million)

Single Till

Brussels

Dual Till

0% 20% 40% 60% 80% 100%

% of international passengers

Single Till

Brussels

Dual Till

€- €500,00 €1.000,00 €1.500,00

Landing + TO charge

Single Till

Brussels

Dual Till

€- €1.000,00 €2.000,00 €3.000,00 €4.000,00

Passenger Charge

Single Till

Brussels

Dual Till

€- €500,00 €1.000,00 €1.500,00 €2.000,00

Security Charge

Single Till

Brussels

Dual Till