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Compensate Revenue Gaps

20. Januar 2021

How to compensate the revenue gap of airports?

Even when the traffic gets back to the pre-crisis level, airports will miss substantial budgets caused by the loss in revenues in the years 2020 and 2021. Therefore CAPEX planning needs to be done carefully and I suggest to apply the "Pareto Principle": 20 % of the costs to achieve 80 % of the target.

 

The trade-off between quality and expected disruptions needs to be put into the focus. Just a small reduction in quality may lead to substantial savings. Of course the airport has to assess the impact of higher risk levels on the revenue side.


I am sure that there will be significant cost savings by: postponing projects, adjusting the requirements, temporarily replacing CAPEX by operational measures, accepting a higher risk level by introducing a sophisticated mitigation approach.

 

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