LONDON HEATHROW AIRPORT (LHR)

London Heathrow Airport (LHR)



Table of Contents

Purpose of the Report3

Introduction3

Location4

Revenue Generation5

Heathrow in the era of non-competing airlines6

Opposition to airport privatisation in Britain in the 1980s8

Operations12

Challenges14

Impact of airline deregulation on airport competition in the 1990s15

Impact of airport competition on ticket prices16

Conclusion19

Recommendations20

References21

London Heathrow Airport (LHR)

Purpose of the Report

The purpose of this report is to analyze LHR (Lon Heathrow) airport from business and operational perspective. The report will highlight the challenges faced by the airport and some recommendations on those problems. This will help the airport administration to better plan for the success of the airport.

Introduction

The catchment area of London Heathrow within a two hours' driving time is estimated at 58 mln. inhabitants. Heathrow is the world's busiest international airport. Heathrow is also the world's second busiest cargo port. Over 90 airlines have made Heathrow their base. The airport has 4 terminals. In 2001, passenger traffic was 60,4 mln. passengers of which 41,5 mln. were O/D passengers. Of all air passengers, 37,6% made their journey for business purposes.

London Heathrow Airport or Heathrow, located in the London Borough of Hillingdon, is the largest and busiest airport in the United Kingdom. It is also the busiest in the European Union in terms of passenger traffic and the second busiest in terms of traffic movements . It is the world's fourth busiest airport for passenger traffic and it handles the most international passenger traffic in the world. Heathrow is owned and operated by BAA, which also owns and operates six other UK airports. BAA is itself owned by an international consortium led by the Spanish Ferrovial Group. Heathrow is the primary hub of British Airways, BMI and Virgin Atlantic. Heathrow Airport has a CAA Public Use Aerodrome Licence (Number P527) that allows flights for the public transport of passengers or for flying instruction.

Location

Heathrow is located 12 NM (22 km; 14 mi) west of central London, England, near the southern end of the London Borough of Hillingdon. The airport stands on a parcel of land that was designated part of the London Metropolitan Green Belt. To the north, the airport is surrounded by the built-up areas of Harlington, Harmondsworth, Longford and Cranford. Qantas Boeing 747-400 descending near London Heathrow Airport. To the east are Hounslow and Hatton, and to the south are East Bedfont and Stanwell. To the west, the M25 motorway separates the airport from Colnbrook in Berkshire.

The airport's location to the west of London, and the east-west orientation of its runways, means that airliners usually approach to land directly over the city. Other leading European airports, such as those at Madrid, Frankfurt and Paris, are located north or south of their cities, in order to minimise the overflying problem. Another disadvantage of the site is that it is low-lying, at 83 feet (25 m) above sea level, and can be prone to fog.

Heathrow is one of six airports serving the London area, along with Gatwick, Stansted, Luton, Southend and City although only Heathrow and City Airports are located within Greater ...