THE PITTSBURGH AirMall¹

In the UK, BAA’s involvement encompassed all aspects of an airport’s operation. Airports such as Heathrow were assets owned by BAA. Although landing fees and other aeronautical services are subject to government regulations; property development, facilities management and retailing were controlled by the company. As the owner of the airport, the company could more directly manage a passenger’s experience when departing or arriving at the airport. As the master developer of the Pittsburgh Airmall, BAAP’s responsibility was limited to managing the retail outlets at the airport. Other aspects of airport management remain with Allegheny County.

At Pittsburgh, BAAP’s revenue is based solely on the rent paid by retailers. The key factors driving financial success at Pittsburgh International Airport is two tiered:

• At the macro level is the number of passengers who enplane at the airport. At this level, BAAP has no control and relies solely on USAir’s ability to continually expand, leaving BAAP extremely vulnerable.
• Of the passengers who enplane at Pittsburgh, BAAP’s revenue was based on those who purchase while at the airport. BAAP had more control over this process by bringing in recognised retailers, training them on airport retailing, and continually informing them of their progress. Since BAAP cannot directly access the passengers, much of the effort was in developing the retailers in order to serve air travellers effectively.

¹ AirMall is a registered Trademark of BAA plc.