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Airport City (also known as an Aerotropolis)[1] is a model for urban development that focuses on improving the livability of the areas within and immediately surrounding the airport in support of a variety of economic activities.[2] An Airport City is differentiated from a "city airport" by its design, which includes both the inside and outside areas. It offers most of the amenities found in a typical urban center.[3]
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The Airport City model is based on the idea that an airport can target non-aeronautical services such as offices, hotels, convention centers, and entertainment to create more sources of income.[4] Airports are now routinely targeting non-aeronautical revenue streams amounting to 40–60% of their total revenues. Industry leaders and researchers share best practices on non-aeronautical revenues for airports at conferences and in literature, including refereed literature.[5][6]
Since airports are typically surrounded by undeveloped land that acts as an environmental buffer for nearby residents, the land holdings can also present as real estate opportunity.[7][8]
The airport city concept consists of several elements that reinforce each other. Services and facilities are designed to guide travelers through the airport transit process. The design of an airport city includes considering passengers, cargo, businesses, workers, and residents of the area.
In 2011, Time named the Airport City in its feature on "10 ideas that will change the world".[9]
Kasarda identified the following drivers to the development of airport cities:
- The creation of non-aeronautical revenue sources as well as serving traditional aviation functions.
- The commercial sector's pursuit of affordable, accessible land.
- Increased gateway passengers and cargo traffic generated by airports.
- Airports serve as a catalyst and magnet for land-side business development.[10]
The most common air side and land side airport city commercial activities include duty-free shops and airline lounges; restaurants, catering, and other food services; specialty retail and factory outlet centers; cultural and entertainment attractions; hotels; banks and currency exchanges; business offices and complexes; convention and exhibition centers; leisure, recreation and fitness venues; logistics and distribution; perishables and cold storage; and free trade zones and customs-free zones.[11]
Airport cities may be found at major airports worldwide, particularly in Europe. Some older airports are being redeveloped or expanded on large tracts of unused airport land. Some new airports in Asia are also being planned as airport cities. North America, South America, and Africa all have airport cities and Aerotropolis developments.
A qualitative list of airport city characteristics has been developed by researchers at the Center for Air Commerce at the Frank Hawkins Kenan Institute of Private Enterprise at the University of North Carolina at Chapel Hill.[12]
Criteria include:
- Demonstrated commitment to the Aerotropolis or airport city model as seen in the establishment of Aerotropolis steering committees, strategic planning, and development initiatives.
- Government/regulatory support of the Aerotropolis or airport city through Aerotropolis legislation, tax incentives, or other mechanisms.
- Media announcements by proponents with substantiated evidence that an Aerotropolis or airport city initiative is moving forward.
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