Chapter 1 The world of management
Case application 2
With a small year-round population, Branson, Missouri, is in a location not easily accessible by air service. The city shows a family-style attractions with the kinds of outdoor activity that attracted more than 8 million visitors last year, Earning it the unofficial nickname` Vegas without the gambling `.about 95 percent of those visitors come by car or bus. Until now because of the new experiment – the Branson airport which is opened in May 2009.
This airport is the nation’s first airport build and operated as a private, for profit business with absolutely no government funding.
The airport chief executive(Steve Peet) had no idea where Branson was in 2000 but by 2004 he was certainly convinced that there was an opportunity to make money with this project. Because of the question how many more visitor would come here if we would make it easier and affordable for them?
Construction work went really smoothly because of the fact that the airport wasn`t using federal assistance which avoided governmental restrictions because it did not use the money of the government. This also meant that they could and pick the airlines that they are allowed in. The airort is also focusing on low costs in related to the ground staff which do the most of the work. Second, they are focusing on the services. Airport chief executive Mr. Peet want to airline to success.` We want to build real service, sustainable service`
The airport earns money from landing fees based on the number of passengers that provides $8.24 fee paid by the city of Branson for each arrived passenger. But suddenly the Branson city officials say that the contract between the airport and the fees for arriving passenger may not even be constitutional . The respond of the airport officials was: We have a legal document and we expect to be paid. With an additional argument : we bring in high-quality tourists from all over the...
Please join StudyMode to read the full document