airport world, issue 5, 2013
TRANSCRIPT
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October–November2013
In the spotlight: Information Technology
Airports: Dubai, Las Vegas, Burgas & Varna
Interviewed: The FAA’s Michael Huerta
Plus: Security, retail & airfield safety
IT: The journey
has just begun
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Take your piece of Vienna’s cake:Millions of Hungarian, Czech,Slovak and Austrian passengers.
Treat your airline with a luscious speciality, available only inVienna: Thanks to our location in the heart of Europe we are
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AW
OPINIO
How did we get to October so quickly?It seems like only yesterday I
was planning our first issue of
the year and now, I’m increasingly
being asked for my editorial plan
for 2014!
There will be plenty to look forward to in
2014, I can assure you, but we’re not there
quite yet as there are still three major ACI
events and inter airport Europe to go before
year-end and, of course, this Information
Technology (IT) themed October/November
issue to read at your leisure.When it comes to IT, it is almost
impossible to overstate the impact that
advancements in technology have had on all
our lives over the past 30 years.
Who could have guessed in 1983, for
example, that three decades later 75% of
the world’s population would have [access
to] a mobile phone (according to The World
Bank), and little thing called the Internet
would transform the way we live and
do business.Ever wondered why all those telephone
kiosks in airport terminals have vanished?
No, well that’s exactly my point, as in this
era of the ‘connected traveller’, nobody uses
them anymore, as we all have our own
mobile phones and often several other
communication devices with us.
And as you can read in this issue, there
is so much more to come in terms of aviation
and the airport environment.
We discover more about the benefits of
collaborative decision-making (CDM); mobileadvertising; near field communication; and
how IT can be used to excite the customer
and boost retail revenues.
And to those airports out there that onlyupdate their websites once or twice a year,
take a look at the feature on page 44 and see
what some of the experts think about that!
We also have some IT news of our own, as
we shall shortly launch a ‘responsive’ website
for better viewing on smartphones and
tablets, and by year-end, we’ll unveil the first
ever Airport World app, which we hope will
make it easier and more convenient for you to
read your favourite aviation magazine –
whether sitting in the garden at home having
a coffee, waiting for a flight at the airport,or climbing Kilimanjaro!
So, if you are reading this online in
November/December and finding it quick and
easy to view the IT articles and other main
features in this issue, please let us know.
The issue also contains airport profile
features on Dubai World Central, Las
Vegas–McCarran and Bulgaria’s Black Sea
gateways, while our regular Airport Exchange
column features Warsaw Chopin.
Finally, we learn more about FrankfurtAirport’s customer service programme;
launching retail operations in emerging
countries; perimeter security; and health
and wellbeing.
It seems crazy now, but looking back to
my teenage years in the late 1970s/early
80s, I can clearly remember being almost
spellbound by the first TV remote controls,
being dumbstruck by the invention of
the digital watch and laughing out loud
when someone suggested that we’d all
have our own personal computers in thenew millennium.
What’s that expression again? Time flies
when you’re having fun!
Editor, Joe Bates, contemplates
all things information technology,
including the launch of a new
‘responsive’ Airport World
website and app.
Printed in the UK by
The Magazine Printing Company
using only paper from FSC/PEFC suppliers
www.magprint.co.uk
Digital
age
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3 Opinion
10 News
12 ACI News
15 View from the top
16 The Dubai phenomenonDubai Airports CEO, Paul Griffiths, talks to Sarah McCay about his plans for
Dubai World Central–Al Maktoum International Airport ahead of the launch of
passenger flights this October.
20 Bigger and brighter Caroline Cook finds out how Fraport’s Bulgarian venture is boosting the performance of its
Black Sea airports.
22 Headline act
What has new aviation director, Rosemary Vassiliadis, got in store for Las Vegas–McCarran?Alex Hannaford reports.
27 Future thinkingAssistant director for facilitation & IT, Arturo Garcia-Alonso, contemplates the importance of IT
and the launch of ACI’s Airport IT Security Programme.
28 Enabling growthTechnology will be the key driver for the ‘airports of the future’, writes ARINC Asia-Pacific’s
senior director for aviation and ground, systems solutions, Jeff Amiri.
Issue 5 Volume 18October–November2013
Volume18Issue5
www.aci.aero
Inthe spotlight: InformationTechnology
Airports:Dubai,LasVegas,Burgas&Varna
Interviewed:The FAA’sMichael Huerta
Plus: Security, retail & airfieldsafety
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IT: The journeyhas just begun
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In this issue
CONTENT
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CONTENT
30 Going mobile
Ever-inventive brands are using smartphones to connect with passengers at airports and onalmost every stage of their journey, writes Jeremy Corfield.
32 Power to the peopleAlaistair Deacon discusses the importance of enhancing the passenger experience through
collaborative decision making.
36 Change for goodEric Miart provides a progress report on Airport Collaborative Decision Making (A-CDM) and
discusses the reasons for its comparatively slow uptake outside of Europe.
38 Bank on dataBetter analysis of sales data can help airports boost retail revenues and customersatisfaction levels, writes John de Giorgio.
42 Fast timesDoes near field communication (NFC) hold the key to faster passenger processing and
delivering the dream of seamless travel? Renaud Irminger shares his insights.
44 Web wondersBarry Mansfield reports on the latest in airport web design. How can sites be improved to
boost customer communication, the airport experience and operator revenues?
48 Thinking outside the box Adopting a multi-channel approach to retailing will help concessionaires maximise sales
revenues in the years ahead, write Andy Morrey and Sophie Albizua.
50 Airport Marketing ExchangeIn the first of a regular series of exchanges, David McMullen catches up with Przemysław
Przybylski of Warsaw Chopin Airport (WAW) to exchange ideas and explain why maximising the
social media potential of your airport begins with having a clear plan.
52 One visionAirport World rounds-up the latest airfield safety news from across the globe.
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UNNING HEAD
56 Don’t worry, be happy!
Stuart Bowden discovers more about Frankfurt Airport’s innovative‘Great to Have You Here’ customer service programme.
58 Lands of opportunity Duty free expert Paul Topping provides some insight into the challenges
and opportunities of launching retail operations in emerging markets.
62 Rest assuredFrom enchanted gardens to yoga rooms and health stations, Sarah
McCay takes a look at the latest health and wellbeing initiatives being
introduced at airports around the world.
64 First line of defenceJohn Romanowich discusses best practices for airport perimeter security.
66 Relief effortDr Teo Babun and James Smith provide a special report on the success of
an initiative designed to make airports in the Latin America & Caribbean
region more resilient to extreme weather and natural disasters.
69 Project watchJomo Kenyatta International Airport.
71 ACI’s World Business Partners74 Environment news
76 The last wordFAA Administrator, Michael Huerta, talks to Joe Bates about leadership,
budgets, safety and the development of the US airport system.
78 ACI traffic trends
ONTENTS
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Mayor scrapsMidway privatisationFor the second time in five years the planned
privatisation of Chicago Midway has collapsed at the
eleventh hour – this time due to one of the two
remaining bidders dropping out of the race for a 40-yearlease to operate the gateway.
Chicago Mayor, Rahm Emanuel, pulled the plug on
any potential deal on September 5 after the Industry
Funds Management/Manchester Airport Group
consortium dropped out of the bidding, citing valuation
issues for the decision.
Their decision left only the Macquarie Group/Ferrovial
consortium as the sole remaining bidder.
“The mayor has decided not to move forward with the
Midway leasing agreement,” said the mayor’s
spokeswoman, Sarah Hamilton.“We set a high bar that required a new level of
taxpayer protection. The companies did not meet that
bar and could not make an offer that would meet what
taxpayers deserve.”
A previous attempt to lease it to privatise Midway
fizzled out in 2009 after winning bidder MIDCo –
comprising Citi Infrastructure Fund, Vancouver Airport
Services (YVRAS) and John Hancock Life Insurance
Company – failed to secure the financing for the
proposed $2.52 billion, 99-year deal.
EWS
News in brief Somaliland, a self-declared republic in east Africa,has completed a renovation of the runway at EgalInternational Airport, which serves its ‘capital’Hargeisa. The gateway now boasts a revamped2.4km runway and expanded terminals.
Cintas Corporation has named Tampa InternationalAirport as a finalist in its 12th annual ‘America’sBest Restroom’ contest. Its toilets were renovated
earlier this year as part of the airport’s $30 millionMain Terminal Modernization project. Designedto provide a “bright, clean atmosphere with afresh, Florida feel”, each restroom has a wall-
sized image of flowers, birds, fish and other nativeFlorida wildlife. The airport quips: “Our facilities arespecially designed for folks who have to go whenthey are on the go.”
Warsaw Chopin Airport’s new airport hotel hasopened for business. Located 800 metres from thegateway, the three-star Hampton by Hilton WarsawAirport Hotel boasts 116 rooms and onsite parking
for 100 vehicles.
Dufry has signed a master concessionaire agreementto operate duty free shops at Sri Lanka’s newly
opened Mattala Rajapaksa International Airport.The gateway will be equipped to handle 5mppawhen its second phase expansion programme iscomplete in 2016.
The rededication ribbon-cutting ceremonyfor the historic airport terminal building atthe New Orleans Lakefront Airport took placeon September 28. Devastated by Hurricane
Katrina in August 2005, this original structureof classic Art Deco design, completed in 1933,was one of the first of its kind to operate in theUnited States.
Trillion-dollar industryThe Air Transport Action Group (ATAG) has released a report showing that
aviation supports 26.8 million jobs and $1.1 trillion in GDP across the
21 economies in the Asia Pacific Economic Cooperation (APEC) region.
According to its Aviation: Benefits Beyond Borders APEC report, there are
857 commercial airports in the region’s air transport system.
Paul Steele, ATAG’s executive director, commented: “The breadth and
importance of air transport to economies in APEC is impressive. The fact that,
ranked by GDP, the region’s air transport industry would be the fifth largest
APEC economy shows how large the industry is.”
The report estimates that by 2030, air transport will support up to
45 million jobs and $3.2 trillion in GDP. However, it cautions that if growth
were just one per cent lower each year, up to eight million of those jobs
would remain uncreated.
Steele continued: “Aviation is a great facilitator and catalyst for
economic growth, but it needs to be growth in a sustainable and systematic
way. We must ensure that the industry and governments work together to
build the needed infrastructure to facilitate this growth. But any new
infrastructure must fit in to a broader strategic plan.”
Out of this worldHouston Airport System (HAS) has unveiled its vision for the future for Ellington
Airport (EFD) by releasing conceptual renderings of a possible Spaceport.
The designs capture various elements of the project, including a terminal, an
aviation museum and the accompanying industries that are expected to arrive,
should Houston become the United States’ ninth licensed Spaceport.
Houston Mayor, Annise Parker, stated: “We believe a licensed Spaceport inHouston would not only serve as an economic generator for the city but would also
enhance Houston’s well-deserved reputation as a leader and key player in the
aerospace industry.”
If the licensing is secured, HAS would proceed in establishing the infrastructure
required to accommodate enterprises such as space vehicle assembly, launching of
micro-satellites, astronaut training, zero gravity experimentation and space tourism.
Aviation director, Mario Diaz, commented: “This is not a conversation based
on science fiction or futuristic projections. This is a conversation about how
Houston can access and enhance an industry that is already well-established and
growing exponentially.”
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NEW
Malcolm Johns will replace Jim Boult asChristchurchInternational Airport’s CEO at the beginning of2014. Johns is an experienced businessman andcurrently the chief executive of passenger transportnetwork, InterCity Group. He is also deputy chair ofTourism New Zealand.
Manas Airport in Bishkek has opened animmigration facility for economic migrants this
month as Kyrgyzstan’s airport operator chasesambitious growth targets. Kyrgyzstan is aimingto develop its air capacity under a NationalDevelopment Strategy for 2013-17.
Dublin Airport has passed a major milestone inits online communications by topping 40,000followers on Twitter. In a recent survey of 613airports on Twitter, Dublin Airport was rankedbehind only Heathrow, Gatwick, ManchesterAirport, Simon Bolivar Airport in Venezuela andLondon City Airport.
Hamburg Airport now hosts Germany’s only
Victoria’s Secret outlet. The store is focusedon skin and body care products and travelaccessories such as handbags, passport wallets,scarves and sunglasses.
Kim Aguirre is the new director of aviation at MinetaSan José International Airport. Assistant directorof aviation since 2008 and the gateway’s CCO since2011, she takes over from Bill Sherry who is retiringafter eight years.
Dr Stefan Schulte’s term as CEO of Fraport, due toend in August next year, has been extended untilAugust 2019. Schulte, who has led the German
airport operator since September 2009, has beengiven an early renewal on his contract to ensurecontinuity, according to Karlheinz Weimar, chairmanof the supervisory board.
For daily news updates, visit www.airport-world.com
Surplus saleDenver International Airport (DIA), Colorado, has raised $155,200 after
selling 17 pieces of airport maintenance and operations equipment.Several Colorado public use airports purchased equipment
ranging from dump trucks to snow ploughs at reduced prices at the
sale this summer.
The DIA Surplus Equipment Program has helped more than 20
Colorado airports purchase over 80 pieces of airport-related heavy
equipment since 2005.
Michael Huemann, manager of Leadville-Lake County Airport – which
bought a sweeper/scrubber, a generator and a 10ft dump truck with snow
plough – commented: “The equipment we have purchased has saved the
county thousands of dollars and has increased the amount of time our
runway is open during the snowy winter months.”
Goodwill hunting The Allegheny County Airport Authority has announced a pilot programme for
archery-only hunting in designated zones on Pittsburgh International property.Roughly 2,362 acres of land, separated from the airport by a fence line
and interstate highway, will be made available for authorised hunters.
Hunters will be cited for trespass if they are found to be hunting outside
the designated zones on the airport property.
Limited to the autumn archery deer hunting season – which also
overlaps with the turkey season – the programme aims to benefit the
community, manage wildlife near the airport and reduce motor vehicle
accidents on the interstate.
Pennsylvania state Rep, Mark Mustio, enthuses: “This is a good example
of government at several levels listening to the concerns of the residents and
addressing those concerns.”
Jewel in the crownChangi Airport aims to woo tourists and transit
passengers with Project Jewel, a multi-purpose
building featuring a garden and giant waterfall.
Under plans from a group of designers, led by the
architect Moshe Safdie, known for Singapore’s Marina
Bay Sands resort, Project Jewel will occupy an area of
30,500sqm by Terminal 1.The design includes check-in counters, a lush
garden and a waterfall descending from the glass and
steel structure’s roof.
Changi Airport Group (CAG) is working on the
concept with CapitaMalls Asia, one of Asia’s largest
listed shopping centre developers.
In combination with work on Terminal 4, due
to complete by 2017, it will raise Changi’s handling
capacity up to 85 million passengers a year,
claims CAG.
Lee Seow Hiang, CAG’s CEO, enthuses: “WithProject Jewel, we are pleased to be developing an
exciting product that will swing travellers to choose
Changi Airport, and Singapore.”
Expected to be ready by 2018 and linked by
walkways to the terminals, Project Jewel will be built
on the site of a open air car park next to Terminal 1.
Making an impressionSir Seewoosagur Ramgoolam International Airport (MRU) in Mauritius has inaugurated a
new $305 million terminal, raising its capacity to 4.5mppa.
The 56,900sqm terminal is the largest piece of infrastructure ever built in Mauritius,according to Aéroports de Paris Management (ADPM), the subsidiary of ADP, which oversaw
the project.
Constructed with 140,000 tonnes of steel, the terminal is intended to give an impression
of lightness through a roof modelled on the ravenala palm, a tree found across Mauritius.
ADPM CEO, Jacques Follain, says: “The terminal doubles the airport’s capacity and will
play a crucial role in the economic development of Mauritius.”
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T he Airport Excellence (APEX) in Safety Programme was developed by ACI
in response to the aviation and stakeholder communities’ call-to-action
to improve aviation safety worldwide.
It helps airports identify and mitigate aviation safety vulnerabilities
through peer review missions, education, mentoring and best practice
guidance to enhance the safety of aviation operations at aerodromes.
APEX, by its very nature of collaborative interaction between airport peers,
promotes frank and open discussion on challenges faced by local operators,
and helps to identify relevant solutions implemented by Safety Partners
within their operations abroad.
The Programme complements the ICAO Global Aviation Safety Plan and
other industry initiatives to ensure a holistic and coordinated approach thatoptimises outcomes for the benefit of all.
Airport Safety Partners are at the very heart of ACI’s APEX in
Safety Programme. They subscribe to the philosophy of ‘no airport
left behind’ and are leaders in the promotion of safety across
geographical boundaries.
What are the benefits for safety partners?
• Staff development: Unique opportunities to recognise high
performing staff and provide them with a learning environment
that promotes knowledge transfer and knowledge acquisition.
• Route partnership: Ensuring that best practices are integral to the
start and end of a journey.• Host Airport mentoring: Safety Partners often form bonds with
host airports that extend beyond the APEX review to include
reciprocal visits and partnerships.
If the programme is to continue growing and responding to
industry needs, APEX must increase the number of Safety Partners in
all world regions.
In fact, the last few months have proven to be very positive with
18 airport operators signing up, or formally committing, to the APEX
in Safety Programme.
Especially encouraging is the response from the ACI North America
(ACI-NA) region, which accounts for 50% of new growth. In addition to
this tremendous and positive response from ACI-NA, we will continue
reaching out to the global community of airports to enable this momentum
to continue in the coming months and years.
What do you have to do to become a Safety Partner?
Becoming a Safety Partner is easy and the commitment brings
many rewards. Safety Partners are simply requested to provide an
airport safety professional to take part in two APEX Safety Reviews
(each typically lasting one week), on mutually agreeable dates, in a
two-year period.
No costs are associated with serving as a Safety Partner, as the Host
Airport assumes both the travel and living expenses.
In return, Safety Partner professionals benefit from unique
professional development and networking opportunities and the status
of the Safety Partner airport is further elevated by virtue of its leadership
in the area of safety best practices.
CI WORLD NEWS
Become an APEX in Safety Partner todayVisit the website and sign up at www.aci.aero/apex
Christopher Miles, assistant director, APEX in Safety, provides an update on ACI’s globalsafety programme.
World in motion
ACI World director general, Angela Gittens, at the
launch of the APEX in Safety programme in Calgary.
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ACI WORLD NEW
ACI offices ACI World
Angela Gittens,
Director General
PO Box 302
800 Rue du Square Victoria
Montréal, Quebec H4Z 1G8
Canada
Tel : +1 514 373 1200Fax : +1 514 373 1201
www.aci.aero
ACI Fund for Developing
Nations’ Airports
Angela Gittens,
Managing Director
c/o Geneva,
Switzerland
Tel: + 1 514 373 1200
Fax: +1 514 373 [email protected]
ACI Asia-Pacific
Patti Chau,
Regional Director
Hong Kong SAR, China
Tel: +852 2180 9449
Fax: +852 2180 9462
www.aci-asiapac.aero
ACI Africa
Ali Tounsi,
Regional Secretary
Casablanca, Morocco
Tel: +212 619 775 101
www.aci-africa.aero
ACI Europe
Olivier Jankovec,
Director General
Brussels, Belgium
Tel: +32 (2) 552 0978
Fax: +32 (2) 502 5637
www.aci-europe.org
ACI Latin America & Caribbean
Javier Martinez Botacio,
Director General
Quito, Ecuador
Tel: +593 2294 4900
Fax: +593 2294 4974
www.aci-lac.aero
ACI North America
Deborah McElroy,
Interim President
Washington DC, USA
Tel: +1 202 293 8500
Fax: +1 202 331 1362
www.aci-na.org
ACI represents 573 members operating 1,751 airports in 174 countries and territories, which in 2012 handled 5.7 billion passengers, 92.5 million
tonnes of cargo and 79 million aircraft movements. ACI is the international association of the world’s airports. It is a non-profit organisation,
the prime purpose of which is to advance the interests of airports and promote professional excellence in airport management and operations.
March 12-14
ACI Airport Economics
& Finance Conference
& Exhibition
London, UK
2014 2014
May 26-28
ACI World Annual
General Assembly
ACI Asia-Pacific
Regional Conference
Seoul, South Korea
2013
November 2-5
ACI Latin America &
Caribbean Regional
Conference &
Exhibition
Montevideo, Uruguay
2014
April 29-30
ATAG Aviation &
Environment Summit
Geneva, Switzerland
2013
October 19-23
ACI Africa Regional
Conference &
Exhibition
Lomé, Togo
ACI events
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Over the last twenty years, we have witnessed the
transformation of the airport industry as structural and
ownership changes have brought new stakeholders andbusiness models into the industry.
Competition between airports has reached new he ights
and the flying public is demanding a higher level and greater
variety of services.
Regulators, too, are paying closer attention to the quality of
service delivered at airports. Indeed, regulators worldwide are
increasingly requiring airports (either run by the public sector, under
concession contracts or fully privatised) to benchmark the quality of
the services provided against other international airports.
In light of the above, ACI developed and launched the
Airport Service Quality (ASQ) initiative in 2006 to help airports
improve the quality of their services to the travelling public. Sincethen, the ASQ survey has become the airport industry’s standard
for measuring customer satisfaction with 281 participating airports
from around the world, including more than 75% of the world’s
100 top airports.
The ASQ initiative comprises four core programmes that provide
key customer survey and management information: ASQ Survey,
ASQ Performance, ASQ Assured and ASQ Retail.
It shows airports how to get maximum return from their
investment in service delivery. It also allows airports to create
performance guidelines and set up incentive programmes, with the
goal of maximising passenger satisfaction and spend.The ASQ Survey is the flagship programme which consists of a
customer satisfaction survey measuring passenger perception of the
quality of services provided by an airport, and provides insight into
the average passenger’s “on the day” experience.
The programme allows participating airports to benchmark their
results with other airports in their selected panel, as well as with
airports in their size category, region and globally.
The ASQ Survey uses the same questionnaire, methodology and
sample plan principles at all participant airports, which ensures
comparable results.
While each participating airport receives the data from all
other participating airports (allowing it to identify best practiceand to measure its own performance precisely), all participants
are contractually bound to preserve the confidentiality of the
data and results.
The survey fieldwork is administered by the participating airport
and the completed survey forms are centrally processed.
The ASQ survey is based on a self-completion standard
questionnaire, which is distributed to passengers in waiting areas
at departure gates of pre-selected flights, according to the sample
plan defined for each participant airport.
The questionnaire – translated into 35 languages with additional
languages translated if needed – is designed for airports of all sizes
through three different versions of the ASQ Survey, namely: ASQMain, ASQ Regional and ASQ Unique.
The Main programme runs for a full calendar year, with
surveys undertaken in each of the four quarters of the year.
The Regional programme is specifically designed for airports
with fewer than two million passengers with two survey periods:
summer and winter. Lastly, the ASQ Unique Survey represents a
single study in a particular period of time, using the same ASQ
standard questionnaire.
This version is especially designed for airports that want to take
a snapshot of their performance possibly with a view to participating
in ASQ Main or ASQ Regional.ASQ Survey covers 34 key service areas and includes eight major
categories such as access, check-in, security, airport facilities, food
and beverage providers, and more. All participating airports use the
same survey questions, which creates an industry standard set of
responses. All participating airports see the ASQ survey results for
all other participating airports.
Airports have found that high customer satisfaction is good
business. The information ASQ provides allows airports to optimise
investments and initiatives; monitor performance of suppliers; share
best practice with other airports; assess the performance of
management; and market their airport more successfully.
If you want to find out more about ASQ, visit ACI’s website atwww.aci.aero/Airport-Service-Quality or contact Rafael Echevarne,
director of economics and programme development, at
Director general, Angela Gittens, reflectson the success of ACI’s Airport ServiceQuality (ASQ) programme and whyincreasing customer satisfaction at your airport is good for business.
View from
the top
ACI VIEWPOINT
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RPORT REPORT: DUBAI
Dubai Airports CEO, Paul Griffiths, talks to
Sarah McCay about his plans for Dubai World
Central–Al Maktoum International Airport aheadof the launch of passenger flights this October.
The Dubaiphenomenon
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If any place on earth has the X-factor, surely it is Dubai, which has
grown from a small trading post in the Gulf to one of the world’s most
successful aviation hubs in less than 30 years.
For years, Dubai has arguably led the way for aviation growth in
the Middle East, and with Dubai World Central–Al Maktoum
International Airport (DWC) set to open to passenger flights in October,
its phenomenal growth over the last decade shows no sign of
slowing down.Dubai International Airport (DXB) has seen record growth in
passenger and cargo figures year-on-year.
Indeed, passenger traffic hit 32.6 million in the first half of 2013,
making it the busiest six months in the airport’s history, and air cargo
volumes rose 10.2% to 1,196,894 tonnes during the same period.
As a result, plans are afoot to increase DXB’s capacity to 90 million
passengers per annum by 2018.
For any other destination, this would seem like a phenomenal feat,
but not for Dubai. The city that has risen from the desert to become a
tourism and business metropolis in a matter of decades is about to
open a second international airport for passenger traffic.An even bigger international airport, tipped to handle more than
160 million passengers and 12 million tonnes of cargo annually once
fully operational, Dubai World Central will commence passenger flights
in October, when it begins its quest to become the busiest airport
in the world.
A fresh approachAccording to Paul Griffiths, CEO of operator Dubai Airports, the plan is
to completely reinvent the airport experience at DWC.
“We want to take a fresh view of the entire airport product,” he
enthuses. “Most airports today have built on the legacy processes of
the 1940/50s. Our aim is to have an airport like no other that will havea product and customer experience like no other.
“We want to make the passenger journey much shorter. We aim to
take the entire process and cut out as many steps as possible. There are
automated systems for all the legacy processes, such as check-in,
passport checks etc.
“The passenger can check-in from their home or office, ensure their
baggage is tagged and ready, have their passport details and profiles
checked so their security status is already predetermined, all before
leaving for the airport.
“The aim is to converge a lot of the legacy processes and make the
whole airport process pretty invisible but no less thorough.”The majority of DWC’s passenger movements will be transit
passengers, and again, the aim is to make transfer times shorter.
“This makes the end to end journey more attractive,” points out
Griffiths, who uses Emirates’ Newcastle to Sydney service as a prime
example of how Dubai connects the world.
“Before the direct Emirates flight you had to travel to Heathrow and
then via Bangkok or Singapore, so two intermediary airports. Now, one
airline flies direct, with a short transit in Dubai.
“This is a huge time saving and we hope that will be the case for
many more destinations.”
Faster turnaroundsGriffiths is also looking at streamlining the airside experience.
“At the moment, the way the airport turnaround is managed is a
bit fragmented,” he remarks.
His aim is to have one vehicle to turn an aircraft around in a short
time. There will be a complete review of the logistics behind this, but
the economics are clear: the shorter time spent on the tarmac the
better, both for the airport and for the airline.
Air traffic control capacity is another area Griffiths and his team are
looking at in great detail.
“It’s no good having slick operations on the ground if you don’t have
it in the air,” he muses. “We are looking at technical enhancements togive us greater reliability in the air traffic control process.”
The United Arab Emirates’ newest gateway, which officially
opened to cargo flights in June 2010, boasts a 92 metre high air
traffic control tower.
Customer comfort Griffiths is confident that passengers will particularly like what they find
post-security, where cinemas, gyms, swimming pools and health and
beauty services are all on offer.
“There is an opportunity to take the service beyond duty free and
integrate retail, entertainment and food & beverage,” he says.“You can take everyone as an individual who might want to use their
leisure time in a different way. You create more choices but make them
cost effective.
“In F&B, we are now working to reflect the international profile of
our customers with a load of international brands. When we opened
Concourse A [at DXB] in January, we were able to go out to the world
with a number of brand names. Our product service has to reflect our
global market.”
Target busting Phase 1 of DWC includes a single A380 compatible runway and
64 remote aircraft stands. Once completed, DWC will have up to fourpassenger terminals and five parallel runways, each 4.5km long.
Initial passenger capacity at Dubai World Central is 5mppa, but with
an ambitious target of 160mppa by the mid 2020s.
“Our aim is to build up capacity over time and we are just finding
out what the possibilities are to extend [beyond the target of
160mppa],” reveals Griffiths.
Passenger operations at DWC commence on October 27 with two
airlines: Saudi Arabia’s nasair and Hungarian low-cost carrier Wizz Air.
Nasair plans to operate more than 50 flights a week between Dubai
and destinations in Saudi Arabia. The carrier already operates
950 weekly flights to 28 destinations with a fleet of 21 aircraftcomprised of Airbus A320s and Embraer E190s.
Wizz Air will provide non-stop services linking DWC to Central and
Eastern Europe. It has a fleet of 40 Airbus A320 aircraft operating over
1,500 weekly flights to 93 destinations.
“Wizz Air will serve eastern parts of Europe giving access to the
winter sun market for a new category of visitors. It is a short flight down
to Dubai, and you are guaranteed excellent weather. There will be some
surprises from the network opportunities,” Griffiths promises.
Once the airport has the infrastructure and critical mass, Dubai-
based Emirates Airline is tipped to move its hub to DWC.
“Emirates is such a size now that we have to get enough capacity to
operate a single hub as they are growing and we need a capacity of atleast 60-70mppa.
It takes a few years to make an airport of that sort of capacity,”
Griffiths points out.
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While Emirates may move to DWC in the years to come, Griffiths is
not working on creating a carbon copy of DXB, which is located in the
old town centre of Garhoud.“The good thing about DWC is that it is at the opposite end of Dubai
from DXB, so airlines can serve a completely new catchment area.
Regional carriers, especially low cost carriers, will see a lot of the
benefits, with shorter transfer times to Downtown Dubai and the
marina area.”
The airport forms the heart of a greater project also called Dubai
World Central, a $32 billion, 140sqkm multi-phase development of six
clustered zones that includes the Dubai Logistics City (DLC), Commercial
City, Residential City, Aviation City and Golf City.
The development is the region’s first integrated, multi-modaltransportation platform connecting air, sea and land.
“Having an international airport on your doorstep is good for
business. You’ll get logistics and manufacturing companies starting to
see the distribution links,” notes Griffiths. “There are a huge amount of
business opportunities.”
Cargo connectivity Located in the vicinity of the Jebel Ali Port and Free Zone, with a bonded
road linking the airport with the seaport, DWC makes air-sea
connectivity achievable in four hours.
This makes the airport an important cargo hub, not just for the
region, but globally too, insists Griffiths.Phase one offers a cargo terminal building with a capacity of
250,000 tonnes a year. Once completed, the airport will have a capacity
for 12 million tonnes a year.
As previously mentioned, DWC opened to cargo operators in 2010,
and already, 34 cargo carriers are using the gateway, with cargo growing
by 144% in 2012 to 219,092 tonnes.Emirates SkyCargo has confirmed that all dedicated freight flights
will be operated from its new cargo base at DWC from May 2014.
Two airports, one city With DXB and DWC both falling under the Dubai Airports umbrella,
synergies are already forming between the two airports, but can
Dubai sustain both?
For Griffiths, who was managing director of London Gatwick before
his 2007 move to Dubai, it’s a challenge he’s happy to consider.
“There are great economies of scale: a lot of our new staff will gain
experience at the established airport and we will also redeploy some ofour experienced staff to DWC,” he says.
DWC will open with just a couple hundred staff. That figure will
definitely grow, but by how much is hard to gauge. Staff levels will
depend on the success of the automation reengineering, which will
cover labour intensive operations such as check-in.
So what will happen to DXB in the long-term, especially when and if
Emirates moves its hub to DWC?
“We don’t have to make a decision now,” Griffiths explains, adding
that the infrastructure at DXB is relatively young.
“Complexity of airspace might be difficult to manage and that is
something we will look at, but obviously we can keep both operating for
quite some time.”If both airports do continue to operate, Dubai could be on its way
to serving more than 260mppa – making it one of the world’s biggest
aviation hubs.
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Bigger and brighter Caroline Cook finds out how Fraport’s Bulgarian venture is boosting the performanceof its Black Sea airports.
RPORT REPORT: BURGAS & VARNA
In less than a decade, Fraport Twin Star Airport Management (FTSAM)
has transformed two of Bulgaria’s busiest airports, with 2013
marking the operator’s biggest achievements in the country to date.
A joint venture between German airport operator Fraport and
40% partner Bulgarian Aviation Group Airport Services, FTSAM won the
35-year concession agreement for Burgas and Varna airports in 2006,
and soon developed the facilities’ master plans – a feat anticipated for
several years.
“Fraport started analysing Varna and Burgas ten years ago when theBulgarian government first started going into concession agreements,”
FTSAM’s CEO, Aletta von Massenbach, told Airport World .
Educated as a lawyer with a postgraduate degree in project
management, von Massenbach – a 17-year veteran of Fraport –
joined FTSAM in October 2012 and is the only female CEO in
the Fraport portfolio.
She says: “Bulgaria has huge potential and the Black Sea coast is
beautiful. The country has a good economic framework and we found
that the airports fit our criteria. With a stable environment and good
partners, it made sense.”
The company wasted no time moving forward with its plans and, in
addition to updating the existing infrastructure at both airports, beganconstruction on new passenger terminals at Varna and Burgas in
December 2011.
Taking up the challengeDesigned by Halcrow Group, Pascall+Watson and their Bulgarian
partners SavantElbul, the terminals are FTSAM’s first major steps in
turning the airports into world-class facilities.
Starting work in December 2011, a consortium formed between
TechnoimportExport and Içta Holdings built the infrastructure.
Varna Airport’s terminal opened its doors to the travelling
public on August 27. At 20,000sqm, it’s three times larger than itspredecessor and features upgraded technology to enhance the
passenger experience.
“The processes are faster and there is a completely different
commercial offer,” says von Massenbach. “One of the best parts of our
new systems is that passengers don’t notice them; they just enjoy the
good flow through the airport.”
With 25 check-in desks; three boarding card checkpoints; eight
security lanes and seven gates, the terminal can cater for 2.3mppa.
The arrivals area – split into Schengen and non-Schengen
– has 12 passport control points, in addition to one 90m and two
60m baggage carousels.
The airport’s concessions offering has also increased dramatically;passengers can now enjoy a 770sqm shopping area, run by Nuance BG
AD, and a 1,200sqm food and beverage space, including a 554sqm
external courtyard.
Able to handle 3.3mppa, Burgas Airport’s slightly larger facility,
due to open around the end of October, has an 800sqm shopping
area and 1,220sqm for F&B – again, with a 554sqm courtyard.
It offers 31 check-in desks; three boarding card checkpoints;
nine security lanes, and eight gates.
The arrivals area – also split into Schengen/non-Schengen
zones – has 12 immigration points; one 90m and three
60m baggage carousels.
In addition to their much larger sizes, both terminals can beeasily expanded and offer flexible use for seasonal traffic needs.
“During the winter season, parts of both terminals can be
closed to save energy,” states von Massenbach, adding that the
airports’ overall energy consumption levels have reduced as a
result of sustainable design.
In airport-wide efforts to optimise consumption, FTSAM has also
installed intelligent building management systems while various
ancillary facilities, such as the heat plants, have been renovated. The
company is part of Fraport’s wider environmental management system
and is certified by the European Eco-Management and Audit Scheme.
While the opening of Burgas’ terminal depends on various
governmental and administrative procedures, von Massenbach toldAirport World that FTSAM was fully prepared for operations: “Varna
acted as a benchmark for Burgas, so it has not been a new project for
us. We’re hoping for a smooth process when it opens.”
The two airports are around 120km apart, making the parallel
construction projects challenging.
Explaining why Burgas Airport’s terminal will become operational
months after its sister facility, von Massenbach notes: “We couldn’t
do both openings at the same time with the diligence we wanted. Our
aim was to finalise Varna first and then move on to Burgas.”
Despite original plans suggesting the terminals would open
concurrently, she insisted: “We don’t view October as a delay tobring the project over the finish line.
“We didn’t want to inaugurate terminals at both of the twin
Black Sea airports during the middle of the high season.
Fraport is a cautious company and two terminals opening
at the same time was a challenging process.
Image courtesy of Fraport Twin
Star Airport Management.
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“For example, during the runway reconstruction work last year at
VAR, the airport was closed with air traffic diverted to BOJ instead. We
can use the airports in tandem.”
Next stepsThe opening of the new terminals forms part of FTSAM’s partnership
with the Bulgarian tourism board to boost visitor numbers to
the country.In recent years, the airports have seen a rise in passengers from
Russia, Belarus and Ukraine, while traffic from the UK and Germany
has remained “strong but stable”.
“We are seeing a tendency in travellers from Scandinavia as well,”
adds von Massenbach. “Now, it’s just a case of finding the right
marketing strategy to encourage this growth.”
She continues: “In terms of business, we are looking at how we can
optimise our commercial revenues and we expect a boost with these
inaugurations.”
The company is concentrating on building its commercial revenues
for the time being but plans for the coming years are already in place.Varna and Burgas’ master plans up to 2025 prioritise airside
development, explained von Massenbach. “The landside is in shape
now at both airports. We’ve already spent €165 million in seven years.
“The runway at Varna was refurbished in 2012 and we now want to
work on the apron and taxiways at both airports, starting from 2016.
“We also need to upgrade regular parts of the infrastructure on an
ongoing basis, such as the fire rescue facilities,” she says.
For Fraport as a whole, 2013 will also see the opening of St
Petersburg’s new terminal. “There is lots happening across the
company but we really are very excited about Bulgaria,”
concludes von Massenbach.
AIRPORT REPORT: BURGAS & VARN
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It may have seemed like an easy step up the ladder from deputy
director of aviation to the hot seat, but when you’re responsible
for one of the busiest airports in the US, your predecessor was
in the role for 16 years, and you’re taking the helm at an airport
that has seen massive amounts of construction over the past
few years despite a gloomy economy, that step doesn’t look sosmall any more.
The good news is that having served as Randall Walker’s deputy
at the Clark County Department of Aviation since 1997, nobody was
better qualified than Rosemary Vassiliadis to take over when he
retired in June.
Modest Vassiliadis states that she has “very big shoes to fill”
as Walker was a well-known and popular character in Las Vegas
who helped make McCarran a “very successful airport”.
Indeed, McCarran handled a healthy 41.7 million passengers
(+0.4%) last year – its second successive annual increase, and the
highest annual total since 2008 when 44 million travellers used the
Nevada gateway.Its all-time record was set in 2007 by the way when McCarran
operated above its then design capacity when 47.7 million
passengers squeezed through its facilities.
Vassiliadis admits that she finds her new role exciting,
challenging and daunting. However, one thing she doesn’t have to
worry about for a while is new infrastructure, as McCarran is in good
shape after a decade of construction designed to address the
growing number of passengers.
Terminal 3Key additions to McCarran’s aviation facilities include: Terminal 3,
airfield enhancements, new roadways, a central utilities plant and
a 6,000-vehicle capacity parking garage, all added as part of a
$2.4 billion project completed in June 2012.
“The actual Terminal 3 project took six years and McCarran
now has a beautiful facility to process passengers through,”
enthuses Vassiliadis.
She is, however, quick to point out that the US economy
nosedived just as the project launched, meaning that it was a big
decision to continue with construction.
“It was difficult. We were very cautious, but we’d already brokenground and we decided to go ahead,” she tells Airport World . “It
turned out to be the best decision we made. T3 opened last year
and now we’re cautiously optimistic about the future.”
What has new aviation director, Rosemary Vassiliadis, got in store for Las Vegas–McCarran?
Alex Hannaford reports.
Headline
act
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Vassiliadis says that the latest IT systems were incorporated into
the planning and design of the 1.9 million-square foot terminal in a
bid to ensure high efficiency levels and reduced waiting times.
They include 100% common-use systems to enable airlines to
time-share facilities, and new self-boarding gates to speed up boarding.
Automated aircraft docking systems also allow pilots to align with
a passenger loading bridge, requiring minimal ramp staff support.
Signage is provided by more than 1,100 LCD and LED screens,
giving passenger information, airline branding and real-time updates.The new $1.2 billion terminal effectively increases McCarran’s
capacity to 53mppa.
Having focused on expansion for the past 16 years, Vassiliadis
reveals that the gateway will now concentrate its energies on
becoming even more operationally efficient.
Revenue generationBefore joining the Department of Aviation, Vassiliadis was director of
finance for Clark County, which encompasses the city of Las Vegas. She
wouldn’t have known it at the time, but it provided her with valuable
experience for running McCarran.
Certain Clark County departments operated as enterprise funds,Vassiliadis explains, and so were supported entirely from user fees,
not tax dollars. Likewise, McCarran’s budget is comprised of rates
and airline charges.
“Then we try to maximise revenues with food and beverages,
specialty shops, parking and rental car fees,” she says.
In addition, Vassiliadis says McCarran is one of only two airports
in the US which has gaming in the building — something that can
provide a sizeable additional source of revenue, particularly as
gaming is precisely the reason most people are heading to Las Vegas.
Today, Vassiliadis says, the airport’s revenue is an equal 50/50
split between aeronautical and non-aviation related revenues.
Customer serviceGood customer service is imperative, notes Vassiliadis, who believes that
it is the job of her staff and everyone at McCarran to ensure that all
passengers enjoy a smooth and hassle free journey through the airport.
As part of this philosophy, she insists that McCarran always has
clean, working restrooms; that retail and F&B concessions are open
at the right times and are well stocked; and that merchandise and
souvenirs are available.
“If they had a good time but didn’t have time to go shopping in
Vegas, they can shop here and that’s what we want,” she smiles.“So we provide the latest products, displayed in an inviting way.
That’s customer service.
“Similarly, if there’s a torn piece of carpet, we replace it. We also
work hard with the airlines to ensure ticketing lanes and booths are
open with sufficient time for people to check in and get to their gate.
“We are also aware that many of our visitors only fly once a year,
so maybe a little more anxious than frequent flyers. The nature of
these passengers is they want to get to the hold-room area as soon
as possible before they start to relax. Once they see it, they’re fine
and they go wandering.”
Vassiliadis says her customer service commitment is partly
driven by the fact that McCarran is a major Origin and Destination(O&D) airport. Its status, she believes, means that passengers use
every facet of McCarran, unlike at other bigger airports, where they
are often just passing through.
“Atlanta, for example, is a much busier airport, but 65% of
people are connecting so they don’t use ticketing, they don’t use
the roadway system or parking,” Vasiliadis explains. “Here at
McCarran, 80% of our customers use everything.”
Vassiliadis is a big fan of “a sense of place” offerings that make
individual airports stand out from the crowd and enhance the
passenger experience.
McCarran certainly feels like an extension of the Las Vegasexperience and she cites Austin-Bergstrom International Airport in
Texas as an example of another gateway that does this well in terms
of its locally flavoured live music and retail/F&B offering.
“Vegas certainly has its share of entertainment and characters that
allow us to do things a little differently here,” says Vassiliadis, who
notes that when TSA first introduced ‘tip screens’ explaining the new
security procedures to passengers, McCarran did it “the Vegas way”.
“We didn’t have a film of a TSA agent explaining the procedure.
We had Vegas celebrities and personalities. And we’ll be updating
those to reflect who’s currently playing on the strip.”
Travelling can be a stressful experience and it’s touches like
these, she says, that help keep passenger anxiety levels down.“Customer service encompasses every part of our operation,”
adds Vassiliadis. “How do we do that? By getting my staff to take
ownership. Then the results are going to show.”
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RPORT REPORT: LAS VEGAS
Route development Thirty-one airlines currently use McCarran, the most popular being the
low-cost domestic carrier Southwest Airlines, followed by Delta, United
and then American.
Asked what her philosophy for keeping the airlines happy and
attracting more carriers, Vassiliadis believes that a sound financial
base is key.
“We don’t want to have spikes in rates and charges from year to
year because it’s hard for airlines to adjust to that. So each year we
have a budget meeting and we present our airlines with a multi-year
plan,” she says.
Domestically, the most popular routes at McCarran are to and
from Los Angeles, San Francisco, New York and Chicago. Forinternational travel the airport sees a lot of traffic between Las
Vegas and Canada – particularly Toronto, Calgary, Edmonton, and
Vancouver; then, it’s Mexico City, and the United Kingdom from both
Heathrow and Gatwick.
Currently, Korean Airlines provides McCarran’s only non-stop
service from Asia and so the current focus is on getting more routes
to the continent – primarily Japan and China, as Asian O&D has
grown 32% in the past three years.
McCarran has seen a number of new airlines use the airport from
Europe and Latin America. With the onset of the recession, it
became more heavily involved in its partnership with the Las VegasConvention and Visitors Authority and put a greater focus on new
international service.
Today, there is much more competition with other airports for
new service, especially international routes, but McCarran has had
an incentive programme whereby landing fees are waived on all
operations in excess of what the airline provided in the same month
of the prior year.
Additionally, the Las Vegas Convention and Visitors Authority has
a programme, which offers co-op marketing funds to support new
services, especially international.
In addition to passenger traffic, McCarran also handles around
200 million pounds of cargo a year, and while that may pale incomparison with some other large airports, Vassiliadis says the
legacy carriers have found it to be profitable, and they see some
interesting consignments go through.
“Because of the conventions we have, we see exotic animals, electronicstuff for the Consumer Electronics Show (CES), classic autos, fresh fish, and
flowers that the hotels use,” she says.
Appeal of Las VegasIn addition to gambling, Las Vegas also has the largest single-level convention
centre on the planet — with more than three million square feet of events
space, which is the site for this year’s World Route Development Forum.
In February, the Las Vegas Convention and Visitors Authority approved
the first phase of a $2.5 billion overhaul of the centre, the first major
expansion in more than a decade.
Vassiliadis believes that from a destination point of view, no other city
can offer the experiences than Vegas can. “You can still get a veryreasonable room rate; you can still get value here,” she says.
“The appeal of Las Vegas as a destination is as strong as ever. There
are so many different types of shows, not just headliners any more. We
have smaller, more intimate venues too. As for shopping, we have
boutiques to malls. Plus, there’s the dining , which has been its biggest hit
after gaming. All the top chefs come here.
“People still come to Las Vegas with a vacation mentality. They’re going
to splurge a little more, treat themselves to that fancy dinner.”
Future expansion
McCarran is located near the famous Las Vegas Strip and therefore hasonly limited space available for expansion. As such, in the early 2000s,
Clark County bought 6,500 acres of land about 30 miles southwest of the
current airport and embarked on ambitious plans to develop it as a relief
airport called Ivanpah Valley.
This was put on hold in 2010 in the economic downturn, but Vassiliadis
says the land is being retained and preserved for future commercialisation.
“You never know,” she says. “With the flexibility T3 gives us at McCarran
in terms of kerb space, parking, ticketing and baggage claim, we’re satisfied
for now, but if this town ever has huge growth again like it did in the 2000s,
the resorts will expand south.”
That’s when they may need Ivanpah. Vassiliadis says it’s prudent to
look to the hotels and whether they’re expanding to determine what theairport should do next in terms of expansion.
“We want to be ready,” she says. “And it would be prudent of me to
keep that site.” AW
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Airport World 5 2013 Now available online
>The magazine of the Airports Council International
n this issue
In the spotlight: Information Technology
Airports: Dubai, Las Vegas, Burgas & Varna
Interviewed: The FAA’s Michael Huerta
Plus: Security, retail & airfield safety
Follow us on
October–November 2013
Volume 18 Issue 5
www.aci.aero
In the spotlight: Information Technology
Airports:Dubai, Las Vegas, Burgas & Varna
Interviewed: The FAA’s Michael Huerta
Plus: Security, retail & airfield safety-
IT: The journeyhas just begun
globally, with foreign exchange and banking services, vending
machines, property leasing, hotels and lounges topping these up.Increased car parking revenues can usually be achieved by an
upturn in passengers – and subsequently more visitors using the
airport’s facilities – or by becoming more successful at gettingpassengers to use its car parks.
Increasing passengers, however, can be costly. An increase
in conversion rates is often tied to special promotional fees
and increased interaction with passengers in advance of whenthey are flying. In either case, capacity increases invariably
need to be supported by infrastructure investments and the
use of additional land on-site, both of which can come with ahigh-price tag related to this form of revenue.
Increasing retail/F&B revenues can be achieved by any
combination of expanding the concession footprint in aterminal and/or improving the performance of the airport’s
outlet-derived revenues.
Expandingthe retailfootprint isitself costlyandcapitalintensive.
Inaddition,whilenewerairport terminalsmayhavebeendesignedwithretailandF&Bin mind,someof theolderterminalswerejustnot
optimisedfortheseactivitiesand significant changesmayberequired.
Another issue to consider is the fact that diseconomies of scaleoperate in the retail and F&B sector. Doubling the supply of retail
square metres will not necessarily result in a doubling of sales, for
instance. After all, the passenger propensity for purchase is finite,and there are well known guidelines established for square metres
of retail space per million p assenger throughput.
The low-hanging fruit So where is the low-hanging fruit in the airport industry? I believethat the greatest bang for the buck can be obtained by focusing on
the opportunity to improve the performance of the existing retail
and F&B operators.This can be done usually with modest investment and thus, each
percentage increase in performance goes almost entirely to the
bottom line profitability of the airport terminal.
There are, of course, many opportunities for improvement,including focusing on upselling greater sales per passenger;
optimising the product mixfor the profile of passenger to maximise
revenue; and targeting both the higher spenders and non-spendersby focusing on conversion.
Others include developing the route mix to generate more
revenues (non-EU flights generate higher margins on dutyfree tobacco and liquor, for example), and monitoring and
maximising conversion rates of people who walkpast a store
compared to those entering and then buying either by design
or on impulse.Leveraging opportunities for more dynamicadvertising (with
targeted promotions in specificparts of the terminal), and targeting
passengers on a specificflight, is another method used by airports toboost retail/F&B revenues. The list goes on.
However, in all cases, to be successful they really require a deep
understanding of the retail sales patterns gained throughmeasurement. The old adage of not being able to manage what you
do not measure is plainly true in this case.
In the face of ever-increasing pressure f rom the airlines to keep
aviation costs down, a growing number of airports are turning to
- and relying upon - non-aeronautical revenue sources to sustaintheir operations.
Indeed, ACI’s 2012 Airport Economics Report shows that
the industrycontinues to derive an increasing proportion of its revenue from the non-aviation sector, with an estimated
$46 billion annually, or 44% of all global airport revenues,
earned from these sources.
With some regional disparities and specificairports in each regionbeing more successful in this area, pole position from among the
different sources of non-aeronautical revenues tends to be either
retail and F&B or car parking.Ofcourse,likeanyotherbusiness,airportsarestrivingtoincrease
revenuestreams–andsubsequentlytheirprofitability–butsome
increaseshavehighassociatedacquisitioncosts.Thisarticlehighlightsthelow-hangingfruitoftheairportindustry,where
improvementstothebottomlinearemosttangiblefortheleasteffort.
Aviation sector revenues are, of course, principally based on
passenger fees and landing charges. In fact, we know that some
airports are almost totally dependent upon passenger fees, whichmeans that the only way they can realistically increase their revenues
is to increase the fee – not a very sustainable strategy in the current
climate – or handle more traffic.However, accommodating more flights or passengers can be very
costly to an airport depending on its capacity. It may, for example,
mean that the airport has to increase the number of security lanes,
and invest in new ground handling equipment, check-in facilities oraerobridges, and – in extreme cases – even terminals and runways.
Increasing passengers would also certainly result in a need to
increase staff.All these factors ensure that accommodating more revenue-
enhancing passengers can be expensive, with only a relatively small
proportion of the increased revenue trickling down to the bottom line.Turning to the non-aviation sources of revenue, retail/F&B, car
parking and sometimes car rentals are the primary revenue streams
Betteranalysisof salesdatacan helpairportsboost retail revenuesand customer
satisfactionlevels, writesJohnde Giorgio.
Bank on data
SPECIALREPORT: INFORMATIONTECHNOLOGY SPECIALREPORT: INFORMATIONTECHNOLOGY
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Image courtesy ofIncheon International Airport.
F reeairportWi-Fiis widespread,inflight connectivityison the
increase,andairlines,airportsand airportretailerscommunicate
withpassengersviaapps andmobile-optimisedsites.
Themobilejourneystartswith researchingtravel,andincreasingly,
it continueswithbookingvia mobile.Travellersusemobilesbefore
their journey, at the airport, andat their destination.
There are numerous statisticsshowing airports providing
innovation in mobile connections, having huge numbers of Twitter
followers and receiving many thousands of Facebookand
Foursquare check-ins.
However,oneareaofthe airportcommercialspacethatisyet tosee
widespreadengagementwithmobilephonesis airportadvertising.
That’sstartingtochange, withairportadvertisingbusinesses
improvingtheirinvestmentinmobile solutions,andbrandsand
agenciesbeginningtoexperimentmore broadly.
As with any advertising, airport advertising must be relevant,
timely and accessible. In an airport setting, this means giving
passengers an engaging experience, and taking a mobile-centric
approach can really help to achieve that.
Peoplehaveclearpreferencesforthe technologiestheyuse,and the
waytheyusethem.The mobile experience isnow veryintuitive, and
that’sbecausemostpeoplecustomise theirmobileuseand behaviours
totheirownneeds.
Theychoose the device,plan,apps andtoolsthatworkfor them.
Soadvertisersandairportsthat recognisethis–and reflect it in their
offer–willbe themostsuccessful.
Interactiveandmobileadvertisingcan playameaningfulrole in
improvingthecustomerexperienceinan airport,bygivingp assengersa
fun,valuable,rewardingormemorablemoment thatbooststheir
enjoyment of the travelexperience.
Threerecentairportcampaignsencapsulatethevalue ofbrands,
agenciesandairportadvertisingcompaniesworking togethertodeliver
interestingandengagingexperiencesforpassengers.
Nice Cote d’Azur AirportTOTALInthelead-upto theMonacoGrandPrixearlier thisyear, TOTAL
deliveredafantasticexperientialcampaign at Nice Coted’AzurAirport.
Aswellas twosimulatorsfittedwiththeF1 computer game,
passengerscouldvisita ‘greenscreen’tohavetheir photostaken
‘with’RomainGrosjean.
Theycouldcollect a print, or uploadthe image to socialmedia via
theirownphonesor usingiPadsplaced aroundthe stand, whichalso
featuredothergamesanda competition. Additionally,hostesseswere
on-handtoprovidesupport andanswerquestions.
Akeyaspectof thiscampaignwasthe integrationoftheinteractive
experience within a broadercampaignthatreachedthepassengerat
severalpointsontheirjourney.
The campaign startedat the station withfloormedia,adgatesand
traincards, then built further throughcheck-in,todepartures,and onto
thegate.Thiswas complementedwithadvertisingonNiceAirport’s free
Wi-Fipages,boardingp assesandculminatedin onboardmedia on
seatbacktablesandininflight magazines.
Thisisagreatexampleofhowthefullstrengthoftheairportenvironment
canbeleveraged;withatrueunderstandingoftheaudienceandhowthey
usetheairport,astrongcampaigncanachievemaximumimpact.
Whatcanairportslearnfromthiscampaign?Deliveringentertaining
andengagingexperientialcampaignsinanairportis acomplexbusiness.
Ahigh-profile promotionalspace, qualifiedairsidestaff, data,power
andfreeWi-Fihad tobeavailable.It alsorequiredarobust media
inventorywiththeabilitytotracethe passengerjourney, allowingthe
advertisertobuildawarenessandexcitement about the experiential
zonepriortopassengersarriving.
Clearlythereisdirectcommercialbenefitin termsofmediaincome
froma campaign like this, but the broaderairportbenefitisthe
highlighttheyhavehelped createinthepassengerjourney andthe
socialandword-of-mouthchatterthecampaign generated.
UKairports O2SomeoftheUK’s busiestairportsweretheperfectplatformf ora
pan-regional, cross-media campaign byO2 promotingtheirEuropean
data-roamingoffer.
Timedtocoincide withthe peaksummerholidayperiod,this
campaignwasmobile-enabled,and atManchesterandGatwick
airports,wastotallyintegratedwiththeairports’dig italwalls.
Aswellasb eingabletoentera competition,passengerscouldalso
uploadandeditphotos forreal-timeviewingviaInstagram andTwitter,
using#O2Travel.The O2 TravelcampaignranatmajorUKairports, the
EuroStarandEuroTunnel.
Again,passengersweretargetedatkeytouch-pointsintheirentirejourney. Thisstartedwithbranded boardingpassesalongwithfloor
media at Londonrailstationsfeedingthe majorairporttrainexpress
services, vinyl-wrappedticketgatesandairportexpress traincards.It continuedthroughtoeverytouchpoint attheairportfrom drop-off
andcheck-intodeparturegate,usingsmall formatdigitalscreens
alongside giant standout lightboxes.Media also includedbrandingontheairports’freeinternetstationsand ontheWi-Filanding pages.
Withsome15,000interactionsperweekin ManchesterandGatwick
alone,it’sclearthatthis campaignresonatedwiththetravellingpublic
by‘givingsomethingback’.Passengershadareal-timeopportunitytodo somethingfunand
simple,andby makingthecampaignmobile-focused,O2ensuredthat
thecampaignreachedpeopleoff-airportviasocial mediaaswellas theprimaryon-airporttargetaudiences.
Forthiscampaigntohave realscale,andto justifytheinvestment
increativetimeandcost, amulti-airportbuywasa mustfortheadvertiser. Havingan agile andoutcome-focusedairportadvertising
company, anda specialistairportplanningagencywereveryimportant
factorsinbringingthe O2clientvisiontolife.The campaign also requireda consistentandflexible approach
fromtheairportsinvolved.Logisticsneeded tobemanageable,
andthat necessitatedabroadlyconsistentoffering fromairport
toairport.ManchesterandGatwick, in particular,havetaken a long-termview
in makingvaluable airside spaceavailableforlarge-scaleinteractive
touchwalls.
Australianairports GOOGLEArecent world-firstairportadvertisingprogrammebyGoogleisa great
exampleofairportsand theiradvertisingpartnersactingasenablersfortrulyinteresting, engagingandrelevant activityin the terminal.
ThecampaignfortheGooglePlayStoreallowedpassengerstousetheir
mobilephonesasremotecontroldevices,takingcontrolof39digitaladvertisingpanelsatBrisbane,MelbourneandSydneyairports.
AswellasinteractingwithGooglePlay Storecontent, Androidphone
userscouldalso then downloadselectedbooks, movies, music,
magazinesandappsdirectlyto theirphoneusingfree Wi-Fi.Thiscampaignis afantasticexampleofhow airportadvertisingwith
amobilefocus candelivergenuinevalueand benefittopassengers.
Severalimportant buildingblockswereputin placetoenabledeliveryofthisprogramme:
1. Theairportadvertisingconcessionaireinvestedheavilyin
asubstantialestateofdigitaldisplays acrossanumberofairports
2. Theirairportpartnersencouragedthisinvestment,and
providedaccesstohigh-impactadvertisinglocations
throughouttheterminal3. Theairportputfree Wi-Fiinplace.It’s unlikelythiscampaign
wouldhavebeenso effectiveifpassengershadbeen asked
topayforthe Wi-Fiservice
Ineachof thesethreecasestudies,thereare clearthemes.
Preparationandastrategicoutlookfromthe airportswasvital.Airportadvertisingbusinesseswithcommitment andaccesstocapital
werecentral.
The importanceofgoodcreativeideas (andthedriveof agencies) is
cleartosee,but withouttheinclusionof amobile-centric,customer-driven mindset, focusedon deliveringsomethingvaluable, entertaining
andmemorabletothepassenger, thesecampaignswouldhavebeen
lessremarkable.Thinkingabout,andfocusing on,theconnectedtravellercanhelp
airportsdeliveranenjoyablein-terminalexperience, whichpassengers
willrememberandwantto telltheirfriendsabout.
Ever-inventive brandsare using smartphones
to connect with passengersat airportsand
onalmost every stage of theirjourney, writes
Jeremy Corfield.
Going
mobile
Abouttheauthor JeremyCorfieldisdirector of ConcessionPlanningInternationalAustralia PtyLtd.
or www.concession-planning.com
AW
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