Nobody goes there any more because it's too crowded," Yogi Berra once remarked about a New York restaurant.

Crowding is also becoming a problem for commercial development around many of Europe's most popular airports, such as Heathrow in London.

"Demand relating to areas around airports is such that, in Europe, airport authorities who do not have sufficient land reserves are acquiring adjoining areas in order to respond to the demands of their customers," said Elisabeth Giry-Le Deut, head of real estate marketing services for Aeroports de Paris (ADP) in France.

Can't top airport's advantages

Despite the hurdles, however, airports remain prime locations for U.S. companies to set up their European operations for a number of reasons:

Easy access. Few places are more convenient to meet with suppliers or customers than international airports.

"Locating in or close to an airport enables easy organization of European meetings or workshops for time-conscious business travelers," said Math Bassee, senior consultant for JCG International in Harrison, N.Y.

Intermodal transportation. This access makes airports a logical choice for intermodal facilities. In Paris, high-speed train can ship goods throughout Europe, and an express urban rail line soon will provide access from Charles de Gaulle Airport to the center of the city in just 20 minutes.

"Given that most staff will be found in the local employment pool, companies have to ensure that employees can easily and safely commute every day," said Bassee.

International flavor. The concentration of international businesses offers ample networking opportunities.

"The airport itself is host to many international companies, offering a truly international and dynamic environment, where companies work in the same time frame and get into contact with each other more easily," said Leonie Campfens, marketing and communications coordinator for the Amsterdam Airport Area (AAA).

Big-city amenities. The image of airport development consisting of nondescript warehouses on the edge of the property is outdated.

"Schiphol Airport offers a wide range of public functions from which the business parks in the airport area profit - shops, supermarkets, hairdressers, bars, lunchrooms, restaurants and hotels," said Campfens. "It offers virtually a 24-hour economy from which internationally active companies at the airport can profit."

Prepared in Paris

Although the two Paris airports (Orly and Charles de Gaulle) are among the busiest in Europe (see chart), they are exceptions to the rule about large airports becoming hemmed in.

"Given its huge land reserves, and in line with the expected expansion in aeronautical capacity, Aeroports de Paris has established a range of real estate products to meet the requirements of companies undertaking a strategic location venture," said Giry-Le Deut.

Companies such as New Balance and Schneider Electric have set up shop near Paris airports.

"This demonstrates that our concept is of interest not only to companies connected with the aeronautical sector, but also to a whole range of national and international businesses looking to complete a strategic establishment venture," said Giry-Le Deut. "These may be businesses that have headquarters in another region but who would like to have offices available for the arrival of their customers or international partners."

Part of the success can be attributed to the variety of spaces available. ADP offers real estate in three categories:

"Village" buildings combine one-third office space with two-thirds for storage or other uses.

"High-tech" category buildings provide up-to-the-minute communications infrastructure.

The "Tertiary" category at Charles de Gaulle Airport consists of Continental Square, with four office buildings around a central square; the Dome, comprising eight buildings linked by a glass-covered pedestrian walkway; the Aircraft Building, focused on small businesses; and the Air France headquarters building.

"In response to ever-growing demand, ADP has, over several years, implemented major real estate schemes at its two main airports," said Giry-Le Deut. "The aim of the schemes it to provide the facilities necessary to cope with the development of air transport in relation to freight, maintenance and the establishment of airlines' tertiary operations.

"In addition, ADP has developed high-quality programs in response to companies that, though not directly connected with air transport, are interested in a strategic venture to establish premises."

On track in Amsterdam

Like Paris, Amsterdam is taking a proactive approach to airport development. The "Airport City" concept at Schiphol Airport mixes retail, office and industrial/warehouse space. Rents are comparable to the central business district. The concept is being expanded to regional airports across the Netherlands, including Rotterdam, Eindhoven, Maastricth-Aachen and Lelystad.

"More and more, AAA is turning into a center for high-quality business parks, which have a magic attraction to the international business community," said Campfens.

Numerous U.S. businesses, including AT&T, Rockwell-Collins and Canon, have a presence at Schiphol. The airport's central location is a key selling point.

"Schiphol Airport is located strategically in the Netherlands and Western Europe, securing fast and efficient transport of goods and people," said Campfens. "The city of Amsterdam is only 10 minutes by car and rail. This airport is especially efficient for European headquarters, shared service centers, marketing and sales offices, logistics centers, test and repair centers, training and research-and-development centers.

"Ninety-five percent of the European Union can be reached by truck from Amsterdam within 24 hours."

As in Paris, part of the success has come from tailoring facilities to the specific needs of various industries.

"Unlike many other airport locations, AAA/Schiphol Airport offers companies quality offices and warehouses at well-developed business parks that are segmented in function," said Campfens. "Business parks in AAA offer to any company the accommodation it requires, whether they need a European headquarters, a distribution center or ICT accommodation. The supply varies from offices with a view over the airport's runways to offices within walking distance of the main airport terminal to campus-like, attractively designed offices in landscaped surroundings."

The cluster of international companies creates business opportunities.

"The World Trade Center at Schiphol Airport is host to many international holdings that can save time by setting up their international sales and marketing at the airport for both clients and personnel," said Campfens.

Emerging alternatives

Regional European cities are working hard to follow the models developed by Paris and Amsterdam. Many U.S. companies are considering low-profile locations to reduce terrorist threats, according to Bassee.

Liege Airport, in Belgium, has seen a 30 percent increase in cargo transportation in recent years. It offers easy access to such countries as Germany and the Netherlands. A private company, SAB, was set up in 1990 to develop and market the airport area.

Liege is recognized internationally as a freight airport and ranks 12th in Europe as an airport cargo platform," said Beatrice Camus of SAB. "Studies are being carried out on plans for the construction of a new passenger terminal with improved conditions, which will be capable of handling more passengers."

"For the American business opportunities, it's clear that Liege has a huge advantage due to its position in Europe and the infrastructure we can offer to any potential business," she said.

In other developments at regional airports:

London Mantson Airport is becoming a viable alternative to Heathrow.

"Although, of course, it may not be as developed, it is becoming more and more international," said Bassee. "It currently offers a low-cost, 740-acre development with easy access to London."

Vienna International Airport handled 12 million passengers in 2000 and expects volume to increase to 26 million by 2015. Its International Air Cargo Center provides convenient intermodal transportation.

One of the largest expansion projects at the airport over the next few years is an office park, which will provide several new office buildings adjacent to hotels and a World Trade Center.

Berlin's Brandenburg International Airport is also expanding, with offices, warehouses and hotels on the drawing board. The first phase is scheduled to open in 2007.

El Venizelos Airport in Athens, the newest in Europe, is looking at ways to capitalize on traffic following the 2004 Summer Olympics.

Two industrial sites will be developed at Milan's Malpensa Airport

Expansion opportunities abound at European airports. U.S. businesses may have to look harder than before to find space that meets their needs, but the effort will pay off.

"Against the background of great economic competition and the globalization of trade, companies have a significant competitive advantage if they position themselves at the center of a transportation network," said Giry-Le Deut. "They are thus able to control the time and space available to them."

Alan Goforth is a freelance writer from Lee's Summit, Mo.

Top 10 European Passenger Airports

Rank Airport Total Passengers

1 London Heathrow, UK 64,607,185

2 Frankfurt, Germany 49,360,620

3 Charles de Gaulle, France 48,240,137

4 Amsterdam, Netherlands 39,604,589

5 Madrid, Spain 32,765,820

6 London Gatwick, UK 32,056,942

7 Rome, Italy 25,921,886

8 Paris Orly, France 25,399,111

9 Munich, Germany 23,125,872

10 Zurich, Switzerland 22,649,539