Airport infrastructure around the world has to cope with a range of changing demands. One of these is the growth in air traffic which has been taking place for the last 4 or so years (though this growth is now being muted by the fuel price increases and the consequent impact on air travel). In addition, there have been changes in the patterns of the demands put on the airport infrastructure, coming about from changes in airline business models, such as the growth in low-cost carriers (LCCs) and from new aircraft types. New aircraft such as the Airbus A380 and Boeing 787 are due to come into service, and they will have implications for the pattern of airport use.
The problems which are posed for airports, and how they can cope with changes in the level and patterns of demand, are explored in this paper. The problems are general, affecting airports worldwide, but a European emphasis is adopted here. Most of the important changes which are affecting airports are present in Europe. Europe is a region which faces considerable constraints on airport expansion, and thus the issues of allocation of scarce capacity are particularly relevant. In addition, there is considerable change in the institutional environment of airports, with privatisation and regulation, taking place in Europe—these changes will have implications for how changes in demand are handled (Ali, 2006, 41).
In the short run, it is difficult to expand airport capacity, and thus as the recovery in demand develops, there is the problem of ensuring that existing capacity is utilised most efficiently.
It was all going so well. The construction of the Terminal 5 at London's Heathrow Airport was good news - 'History in the Making' as an article in the Royal Academy of Engineering's house journal put it (Kimberley and Jordan, 2005). Here was a mega-project that was on schedule and on budget since construction had begun, bucking all the trends of previous mega-projects. T5 was seen as the first step in the regeneration of London's main airport in preparation for the 2012 Olympics.
Two weeks before it was due to go operational the Queen was at T5 for its official opening before an invited audience of the great and the good and representatives (managers and operatives) of the companies who had worked on the project. “It gives me great pleasure to open Terminal 5 - this 21st Century gateway to Britain and, to us, the wider world,” said the Queen. T5 was a dream facility that would end the nightmare that Heathrow can sometimes be and transform the travel experience according to Ruth Kelly, the Transport secretary. Owner BAA and customer BA (who were to be T5's occupants) were also gushing with confidence. Terminal Five marks the start of a new beginning for Heathrow said Nigel Rudd, BAA's Chairman. “Terminal Five is a fantastic facility and our customers will really enjoy the space, comfort and convenience it ...