What type of business is an airport?

Types of Airport Businesses

Airports are multifaceted businesses that provide a wide range of services catering to both passenger travel and cargo transportation. The two primary categories of airports are:

1. Commercial Service Airports:

Commercial Service Airports are designed to accommodate passenger travel. They offer passenger terminals, baggage handling facilities, and amenities such as restaurants, shops, and lounges. Airlines operate scheduled and charter flights to domestic and international destinations, connecting passengers to various cities and regions. These airports handle a high volume of passengers and serve as major transportation hubs.

2. Cargo Service Airports:

Cargo Service Airports specialize in the transportation of goods and freight. They feature cargo terminals, warehouses, and specialized equipment for handling large shipments. Airlines and cargo carriers operate dedicated flights to transport cargo, such as perishable goods, electronics, machinery, and other commodities. These airports play a crucial role in global supply chains and facilitate trade between businesses worldwide.

3. Reliever Airports:

Some airports are designated by the Federal Aviation Administration (FAA) as Reliever Airports. Their primary purpose is to alleviate congestion at Commercial Service Airports and provide additional capacity for general aviation activities. General aviation includes private aircraft, corporate jets, flight training, and recreational flying. Reliever Airports offer smaller terminals and less extensive amenities but provide convenient access to the surrounding community.

Ownership of Airports:

Ownership of airports can vary depending on the governing authority. Airports can be owned by:

• Public Entities: Governments, municipalities, or state agencies may own and operate airports. Publicly owned airports often benefit from government funding for infrastructure development and maintenance.
• Private Entities: Private companies or corporations may own and manage airports. Private airports typically focus on maximizing profitability and providing tailored services to specific clientele.

In conclusion, airports are diverse businesses that encompass commercial passenger services, cargo transportation, and general aviation activities. The type of airport business depends on its primary function and the services it offers. Ownership structures can also vary between public and private entities, each with its own objectives and management strategies.