Strategic Management of a Municipal Airport Expansion Project

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According to Rodríguez-Sanz and Rubio-Andrada, (2022), the expansion of a municipal airport to handle larger planes is a project with considerable community advantages, such as increased tourist and economic growth. However, there are expenses connected with it, such as increased noise levels and pollution. To successfully handle the project’s potential and expenses, it is critical to consider the viewpoints of numerous internal and external stakeholders.

We will identify these stakeholders in this article, suggest two committees as part of a strategic management process, explore how external stakeholders will be brought into the process, and lastly give an ideal solution for this complicated project.

Internal Stakeholders

1. Airport Authority: The airport authority is a crucial internal stakeholder in charge of managing and running the airport. They have a strong stake in the project’s success since it has a direct impact on their operations, income production, and reputation.
2. Airport Staff and Unions: Airport employees and unions, including pilots, ground crew, and administrative personnel, are critical internal stakeholders. The initiative might affect their employment duties, working conditions, and job security.

External Stakeholders

1. Residents and the Community: The local community is the most important external stakeholder. The airport development will have a direct impact on them, notably in terms of increased noise and pollution. Their concerns and quality of life must be taken into account (Federal Aviation Administration, 2020).
2. Tourism Industry: Tourism is important to local companies, tour operators, and hotels, and the expansion project will help them. They are critical external stakeholders whose needs must be met (Jenkins, 2018).
3. Environmental Groups: Environmental groups are external parties worried about the airport expansion’s possible environmental impact, such as increased pollution and habitat damage (Eilperin & Davenport, 2019).
4. Regulatory Agencies: The airport is regulated by government authorities at several levels, including the Federal Aviation Administration (FAA) and environmental regulatory groups. It is vital that they follow their regulations (Federal Aviation Administration, 2020).

Committees for Strategic Management

1. Airport Expansion Impact Assessment Committee: Members of this committee will include airport authority representatives, local citizens, environmental groups, and regulatory agencies. Their job is to examine the expansion project’s environmental and social implications. This committee will ensure that external stakeholders’ concerns are handled and that the project complies with regulatory standards (Federal Aviation Administration, 2020).
2. Airport Development and Community Engagement Committee: This committee, made up of members from the airport authority, local companies, the tourism sector, and the local community, will focus on the economic and social elements of the expansion project. Their duty is to design solutions for reducing negative community effects while increasing economic gains (Federal Aviation Administration, 2020).

Integration of External Stakeholders

The airport authority should engage in proactive and open communication to include external stakeholders in the strategic management process. According to Jenkins (2018), this may be accomplished by doing the following steps:

1. Public Consultations: Holding frequent public meetings and consultations where members of the community can express their concerns and opinions about the project.
2. Environmental Impact evaluations: Including environmental groups and regulatory authorities in comprehensive evaluations to guarantee compliance with environmental rules.
3. Collaboration with Local companies: Working with local companies and the tourist sector to create mutually beneficial strategies that address their needs and concerns.

Keeping Stakeholders Informed

To keep stakeholders informed, effective communication is crucial (Daft, 2016). The airport authority should create a dedicated project website, send out frequent email updates, and keep lines of communication open with local officials, regulatory agencies, and community groups.

Optimal Solution for This Case

A balanced strategy that optimizes economic gains while limiting negative repercussions is the best choice for the municipal airport expansion project. This may be accomplished by careful planning, the use of sophisticated aircraft noise-reduction technologies, and the implementation of pollution-control measures (Daft, 2016). Furthermore, cash from the expansion might be directed toward efforts that directly benefit the local community, such as better infrastructure and educational programs (Rodríguez-Sanz and Rubio-Andrada, 2022).

Conclusion

Finally, the success of the municipal airport expansion project is dependent on good management of both internal and external parties. The airport authority may strike a balance between economic growth and environmental and social responsibility by organizing dedicated committees, involving external stakeholders, and maintaining open communication, resulting in a sustainable and successful future for the city.

References

Daft, R. L. (2016). Management. Cengage Learning. https://books.google.co.ke/books?id=X0F-BAAAQBAJ&lpg=PR2&pg=PP1#v=onepage&q&f=false

Eilperin, J., & Davenport, C. (2019). Trump administration sees a 7-degree rise in global temperatures by 2100. The Washington Post. https://www.washingtonpost.com/national/health-science/trump-administration-sees-a-7-degree-rise-in-global-temperatures-by-2100/2018/09/27/b9c6fada-bb45-11e8-bdc0-90f81cc58c5d_story.html

Federal Aviation Administration. (2020). Environmental Impact Assessment Guidelines for FAA Actions (Order 1050.1F). U.S. Department of Transportation. https://www.faa.gov/about/office_org/headquarters_offices/apl/environ_policy_guidance/policy/faa_nepa_order/desk_ref

Jenkins, W. O. (2018). Environmental Management and Sustainability: A Practical Approach for Developing Sustainable Strategies. Routledge.

Rodríguez-Sanz, Á. and Rubio-Andrada, L. (2022), A preliminary framework for managing airport capacity and demand from an economic perspective. Aircraft Engineering and Aerospace Technology, Vol. 94 №9, pp. 1463–1480. https://doi.org/10.1108/AEAT-01-2022-0019

This article is written based on University of The People, Strategic Decision Making and Management (BUS 5117) written assignment by Fristy Tania in September 2023