I'll agree in principle with what John says, however, as we have learned with AA
at both Nashville and RDU
, the old adage of "build it, and they will come" doesn't hold true any more. Also, the thing to remember about adding gates, space, etc, is that my (the airport's) operating and maintenance costs go up, as well. In other words, will it be to my benefit to make this addition.
, my lunch hasn't arrived quite yet, so here's a quick rundown on how airports do their budgets (in case anyone wants to know):
Refering to the list of revenue sources I detailed above.
The airport derives its anticipated expenses for the year being budgeted. These expenses include, but not limited to:
1) operation and maintenance (very wide ranging)
2) capital improvements (can be exceedingly variable)
4) debt service on bonds
5) depreciation of facilities
Those expenses are then totalled up. Then we do the anticipated revenue side. We figure out all anticipated revenues listed in my previous post EXCEPT landing fees. That amount is then totalled up, and the remaining difference between anticipated revenues and expenses is made up via the landing fee.
Now, depending on if the airport winds up with a surplus or a deficit, that amount will be made up (either as a credit to the tenant/airline, or as an extra charge the following year).
We can get really technical by getting into different types of rate making methodologies, such as compensatory, or residual, etc. but that's another topic.
I hope that helps with your understanding of how airports make their money. Sometimes it not as easy as "1, 2, 3" to increase revenues. It is a process. Using the processes I've detailed, it's kind of easy to see why, as an example, the PIT
airport bosses would be a little jumpy about US cutting out on them.
Tom at MSY
"The criminal ineptitude makes you furious"-Bruce Springsteen, after seeing firsthand the damage from Hurricane Katrina