Commercial Forecasting for Airports

Sector: Aviation

Capability: Transactions & Procurement

Building mid to long term airport traffic forecasts are fundamental to airport infrastructure enhancement planning. We have supported a variety of airport clients in building detailed traffic forecasts to support commercial business plans, airport master plans, local transport planning, and airport transactions. Project experience of our team includes:

  • Developed a traffic forecast for a greenfield airport in Saudi Arabia. Our results drove the broader master plan for the airport and for the city’s future transport development plans.
  • Acted as the lenders technical advice for a major Airport in Latin America analysing and opining on the Sponsor’s traffic and revenue forecast for the lenders.
  • Developed a traffic forecast which analysed and determined the impact of climate change on passenger demand for a global airport hub.
  • Analysed the traffic strategy for prospective operators of an airport in APAC. We worked alongside the government as the airport was being privatised.
  • Developed the financial model for an airport in South Africa.
  • Forecast the London aviation network to determine traffic at a London Airport on behalf of potential acquirers.
  • Analysed the total and specific terminal traffic for an airport in the South of America.
  • Buy-side traffic forecast for a portfolio of airports in Colombia.
  • Sydney region air travel demand forecasts, Department of Infrastructure, Federal Australian Government.
  • Western Sydney Airport greenfield demand scenarios, NSW Infrastructure Department.
  • Long term forecasts for master planning, Wellington Airport.
  • Analysed the key socio-economic drivers for long term growth, looking at all possible factors including population growth, income and GDP.
  • Determined the true origin and destination, using this to determine the viability of future routes.
  • Conducted airline interviews to better understand their strategy and how it impacts the airport in question.
  • Analysed the route network of multiple airlines, performing gap analysis and route development.
  • Created airport business plans which forecast the future aeronautical revenue, nonaeronautical revenue, operating costs and CAPEX Costs.
  • Benhcmarking various elements of the business plan, from aeronautical fees, to spend and revenue per passenger.
  • We determine the most suitable long-term variables which capture all endogenous factors and account for any external factors which might have impacted growth.
  • Analyse the business plan and determine future ways that efficiencies could be created in the future.
  • We evaluated the profiles of all major routes and airlines to best determine the short-term evolution of these and the likelihood of changes materialising.
  • Once complete, we stress test and scenario test various components of the model to give an envelope of outcomes which can be mapped to various business cases – increasing confidence and ensure strong financial planning.

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