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The Characteristics of Airport Economy

1.The airport economy is a kind of speed economy

Speed economy is a kind of economy that enterprises get the excess profit from meeting customers’ diverse needs rapidly. “Speed economy” was first raised from a masterpiece named The Visible Hand:the Managerial Revolution in American Business written by Alfred D.Chandler Jr. who was an American economist. He thought that the modern mass production and distribution,the modern transportation and communication,their economic features come from the speed rather than the scale. In the era of speed economy,time is becoming more and more precious and the new competition focus between enterprises and between supply chains is on how to meet different needs of customers in the shortest time. Saving time is saving cost,while time is becoming an important source of enterprise core competitiveness. In this situation,efficiency and flexibility should be first considered in enterprise business activities. The core carriers of airport economic development are aviation hub and aircraft. Aircraft is a kind of transportation with the fastest response to production factors in the world;it can improve the efficiency and save supply chain time by accelerating network development of inter-industry and intra-industry,international outsourcing,personalized production,and rapid transportation of products and services. Airport economy has the most wonderful attributes of speed economy. As the most famous American scholar John D.Kasarda proposed,the key of developing international aviation hub and airport economy is “speed,speed,and speed”.

2.The airport economy is an international efficient economy

Modern society is gradually evolved into a society that using comprehensive information technology,making knowledge processing and integration as connotation,creating intelligent tools to transform and update the economic departments and social fields. A large number of high value-added,quantitative corpuscle products are constantly emerging,such as computer chips,software,biotechnology and microelectronic,the transportation costs of these products only account for a small portion in the total costs,the reduced cost ratio make it possible for some multinational companies seeking for production on a global scale,and the economic activity space is extremely expanded as the result of air transport development. In the development of global economy,air freight value accounts for more than one-third of the global freight value share,air freight has an important position in the global trading system. In 2011,the international airport association report showed that the global air traffic accounted for 1% of the entire freight transport amount,while the air freight value accounted for 36% of the global freight value.1∶36 becomes a vane that the public understand and analysis the importance of contemporary air transport,and it also becomes one of the symbols in today’s high-end industry development.

3.The airport economy is a beautiful music leading the global economic integration

Under the influence and promotion of economic globalization,the regions that involve production process and services continue to extend to the whole world,production factors are realized optimal configuration globally,and social division of labor can be decomposed in accordance with the industrial chains worldwide. In the 21st century,global economic integration has turned into the high-tech era,and the global information technology has been rapidly popularized. Therefore,the company products must be quickly penetrated in the global network which was made up of different suppliers to obtain the best materials,components,and the lowest price. In other words,“global accessible” has been the new requirement of globalization. The study of Justin D.Stilwall and R.John Hansman(2013)showed that more than half of the global top 500 company headquarters were located within16 km around the United Sates hub airport while 29% of the commercial institutions were near the airport. International hub airports have the fastest and widest range of the global route network,they adapt to the demands of long distance,wide scope and short time of the international trade,and meet the requirement of “global accessible”. So the international aviation hub becomes more valuable than scale economy and scope economy to multinational companies,it becomes the primary choice of multinational business sites and regional business,and also becomes the most characteristic note of the wonderful business landscape of global economic integration. In this context,air freight has become an important driving force to promote regional economic growth,while airport economy has become the best choice of leading the global economic integration.

4.The airport economy promotes the connectivity of the global market

Airport economy is an open system that consists of many open elements. It connects major cities both in China and abroad by using the airport route network. High quality economic factors such as capital,information,technology and talents are circulated in the airline network and quickly integrated into the global economy,which will drives the cycle of whole economic system and promotes the connectivity of global market. At the same time,international aviation hub itself has the function of free trade,which brings convenience to the personnel exchange and meet customers’ demand quickly. It brings more convenience for customers to buy the goods of international famous brand,especially for high-end goods and fashion products,such as cosmetics,intelligent terminal,high-end clothing,model clothes and branded watches. So the essence of airport economic development is to build a shopping heaven for local customers and create a convenience for the global connectivity.

5.The airport economy promotes the rapid development of international tourism

With the improvement of people’s living standard,long-distance travel and leisure become more and more demanded for people,air transport has become the best choice for tourist. The study of international airport association shows that over the next 20 years,with the development of the international air transport,tourism incomes will increase two times. Taking Bangkok as an example,since the 1960s,the number of tourists in Bangkok has increased by nearly 40 times,this miraculous growth was mainly attributed to the great capacity of the Boeing 747. Powerful aviation passenger capacity leads large-scale international tourism into a new era which is characterized by tourist charter flights. According to the account of the United Nations World Tourism Organization,the number of tourist passenger has accounted for 75% of all airline passengers,however only 7% of the people choose to travel by air among the people who have the ability to afford flight travel in the world. World Economic Forum reported that the common point in tourism countries was that they have formed a set of convenient and high quality air traffic network and its supporting service such as roads,hotels and banks. Once the industry interoperability has formed,the effectiveness will be extremely strong and have a great development potential. At the same time,because large funds of investment in fixed assets from the airline has been tied up,in order to guarantee its rate of capital return,airlines must fly day and night,and no matter low and peak seasons,so the average price of air transport is becoming more and more cheap. Powerful passenger traffic and cheaper price of the air transport make more and more international travel demand from people themselves turn into reality,airport economy becomes an important inducement to promote international tourism development.

6.The airport economy promotes the communication and integration between Chinese and Western cultural

There is more than ten thousand kilometers from central and east China to Europe,the economic and trade exchanges might be cancelled or reduced because of time consume and high cost in such a wide geographical space. So the efficiency of the transportation must be put forward with high request through Chinese and western communication. Along with the evolution of transportation and miniaturization of high-tech product volume,based on the popularization of the more and more convenient ways of air transport in the whole world,increasingly more cargos are transported by aircraft. Airport economy which is relying on the international aviation hub develops quickly,and the transport time is greatly reduced in social economic activities with the same size and distance. All of these will make the space in the development of time series presents a process of constant convergence,make the communication among all ethnic groups and different countries around the world very convenience,and promote the exchange and integration of Chinese and western cultures. We can say that due to the convenience of air transportation,Chinese and western culture can learn from each other through communication and fusion,make continuous innovation and improvement in studying and using,and promote the continuous progress of human civilization. The communication and integration not only guarantee the diversity of regional culture,but also give further play to the soul part of excellent culture leading the development,improve the cultural consciousness of inclusive development of the world countries,and reduce the risk of political conflict in different cultures. JmsoQw57W7KUl/OUp1PlLJ1MtTKNOKXyO2Ktm9/FhvIUoji/SRK08CdvEuCgpsIF

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