Issues affecting Heathrow’s revenue stream

 The abrupt drop in air traffic has resulted in significant paralysis of both non-
aeronautical and aeronautical revenues. COVID 19 prevention measures
have forced Heathrow to cut capacity. As a result, aeronautical revenues
gathered from landing charges and take-offs have significantly fallen.
 Reduction of security charges is another issue resulting in the reduction of
revenue stream as passenger safety has been compromised by the COVID 19
situation. As most people are advised to stop flying, non-aeronautical
revenue collected from Heathrow's restaurant and parking facilities would as
be reduced. Furthermore, it is reported that the total revenue stream
generated by airports worldwide fell by 35 percent in the first quarter of
2020 (Nhamo et al., 2020).
 As supported by Ferguson & Hahn (2021) cost structure is another issue that
has affected Heathrow’s revenue stream. Heathrow has high fixed costs
maintaining equipment and infrastructure that incur regardless of the levels
of traffic. The operating costs that compromise the total costs further
making the budget tight for the company.
 Explanatio
n
The COVID 19 pandemic has affected many sectors, especially the airline
industry. The measures set by the government to mitigate the spread of the virus
have caused issues through which the revenue stream of Heathrow has been
affected. As depicted in the above explanation, there is a significant need for
Heathrow to consider strategies through which sustainability would be enhanced
amidst COVID 19. The decision by the firm’s management to implement plans is
dependent on the measures set by the government to mitigate the spread of COVID
19. For example, establishing a medical facility within the hospital would offer
services to consumers despite flight cancellations. On the other hand, online
appointments would minimize unnecessary movements, thus saving on
transportation costs for the firm’s consumers. Generally, one can debate that
effective strategies cut costs as the mentioned period majorly indicates financial
challenges to consumers.
 References
Ferguson, N., & Hahn, A. (2021). Landscapes of Heathrow: the aircraft
landing gear compartment and the politics of global transfer.
Anthropocenes–Human, Inhuman, Posthuman.
Nhamo, G., Dube, K., & Chikodzi, D. (2020). Impact of COVID-19 on the
Global Network of Airports. In Counting the Cost of COVID-19 on the
Global Tourism Industry (pp. 109-133). Springer, Cham