Airport World, Issue 3, 2014

AIRPORT WORLD JUNE-JULY FEBRUARY-JANUARY 2014 2011

In the spotlight: Airport Service Quality (ASQ) Airports: Ferrovial Aeropuertos & Sabiha Gรถkรงen Special report: Investing in Africa Plus: Airport design, seating & advertising

THE MAGAZINE OF THE AIRPORTS COUNCIL INTERNATIONAL

ASQ: Getting it right June-July 2014 Volume 19 Issue 3 www.aci.aero

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Airport World Editor Joe Bates +44 (0) 20 8831 7507 joe@airport-world.com Reporter Justin Burns +44 (0) 20 8831 7508 justin@airport-world.com Design, Layout & Production Mark Draper +44 (0) 20 8831 7504 mark@airport-world.com Andrew Montgomery +44 (0) 20 8831 7564 andy@airport-world.com Erica Cooper erica@aviationmedia.aero Website Design & Production José Cuenca +44 (0) 20 8831 7517 jose@aviationmedia.aero Sales Director Jonathan Lee +44 (0) 20 8831 7563 jonathan@airport-world.com Advertising Manager Kalpesh Vadher +44 (0) 20 8831 7510 kalpesh@airport-world.com Andrew Hazell +44 (0) 20 8831 7518 andrewh@airport-world.com Subscriptions Lauren Murtagh +44 (0) 20 8831 7512 subscriptions@airport-world.com

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Believe in better Airport World editor, Joe Bates, considers the importance of good customer service and the success of ACI’s Airport Service Quality (ASQ) customer satisfaction survey.

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here was a time not so very long ago, when the idea of good customer service at an airport involved little more than a hassle free journey to your gate and an on time departure. And these things are, of course, still important, but in today’s world of the savvy and connected traveller – the latter courtesy of a host of mobile devices that ensure we are never more than a click away from 24/7 information – airport customer service has had to go to a whole new level to satisfy demand. As a result, nowadays you can do almost anything at an airport (i.e. go swimming, ice skating, visit the cinema, play a round of golf, visit butterfly gardens, shop ‘til you drop, enjoy fine dining or just sleep in your own personal pod) and nobody is that surprised! Indeed, the desire to raise the bar and even go beyond passenger expectations – the motto of customer service king, Incheon International Airport – has led to the opening of some magnificent new passenger-friendly terminals across the world that wouldn’t have been deemed possible 30 years ago. And as for airport staff, well, it’s true you will always get one or two that live in the Dark Ages and are unnecessarily rude or inhospitable – and I’m not just talking about security screeners – but, for the most part, frontline employees today are efficient and helpful. Now this could be down to the individual, of course, but more than likely, it is the result of a customer service training programme and/or an airport’s new, more passenger focused business philosophy.

How should people be treated? Well, when I was a little boy, my mum told me to treat people how you’d like to be treated yourself, and I think anyone adopting this mantra cannot go far wrong. You cannot talk about customer service at airports today, of course, without mentioning ACI World’s pioneering Airport Service Quality (ASQ) Survey, which, incidentally, is the theme of this issue. It therefore seemed only right to visit the ASQ Hall of Fame and discover more about what makes Incheon, Indianapolis, Keflavík, Moscow Sheremetyevo and Singapore Changi so good at delivering top quality customer service. We also hear from ACI World’s deputy director general, Craig Bradbrook, about the history, success and continued development of the ASQ programme. And, the spotlight on customer service doesn’t end there, as elsewhere in this issue we have features on designing user friendly terminals; innovation in airport seating; and turn the spotlight on Heathrow’s new showpiece Terminal 2. Our signature interview is with Ferrovial Aeropuertos CEO, Jorge Gil, and Istanbul’s Sabiha Gökçen comes under the microscope in our airport profile. I hope you agree that we well and truly cover the world in this issue and l look forward to hearing your feedback, and possibly learning a bit more about your airport, in the future. And, if you are going to be in Seoul this May for the ACI Asia-Pacific/ACI World Annual General Assembly, don’t forget to pop by and visit us at the Airport World booth on the AW exhibition floor.

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CONTENTS

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Issue 3 Volume 19

8 News 10 ACI News 13 View from the top ACI World director general, Angela Gittens, reflects on the importance of knowledge sharing and what ACI is doing to help airports achieve operational excellence.

14 Planning ahead Jorge Gil, CEO of Ferrovial Aeropuertos, talks to Joe Bates about the company’s prize asset, London Heathrow, and its global development plans.

18 Growing places Istanbul’s Sabiha GĂśkçen Airport is planning to expand and remains unfazed by the thought of a new mega-hub on its doorstep, write Chris Beanland and Joe Bates.

20 Quality guaranteed ACI World’s deputy director general, Craig Bradbrook, reflects on the first decade of benchmarking passenger satisfaction levels at airports.

23 Nothing compares to you Seven times winner of Best Airport Worldwide and the dominant performer in 25-40mppa category for nearly a decade, Incheon International Airport arguably sets the global standards for customer service excellence, writes Joe Bates.

27 Setting the pace Executive director of Indianapolis Airport Authority, Robert Duncan, tells Airport World about the secrets of the Indiana gateway’s Airport Service Quality (ASQ) success.

28 Best in class Stuart Bowden turns the spotlight on two of Europe’s top ASQ performers – Moscow Sheremetyevo and Keflavík Airport in Iceland.

31 Experience is everything Sweeping up two ASQ awards for 2013, Singapore Changi’s formula for success puts customer experience at its core, writes Tina Milton.

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CONTENTS

Director General Angela Gittens Chair Fredrick J Piccolo (Sarasota, USA) Vice Chair Declan Collier (London, UK)

32 The bigger picture Form and function will be intertwined in Shanghai Pudong’s planned South Satellite Concourse to elevate the passenger experience, writes Corgan’s Jonathan Massey.

34 Investing in Africa Airport development across Africa is beginning to gather pace with governments and investors looking at opportunities to enhance existing infrastructure, writes Joe Bates.

37 Looking good! Heathrow is confident that its new Terminal 2 will enhance the passenger experience and set a new benchmark in airport design, writes Justin Burns.

40 It all ads up Charles Hugill takes a closer look at the current trends and innovation in the global airport advertising market.

43 The bottom line Airport World talks to two of the world’s leading airport seating companies to discover more about the latest innovations and industry trends.

46 Airport Marketing Exchange In this age of increased connectivity and mobility, how exactly can airports tap into the connected travellers’ market?

48 The vital link Project management is the key to the smooth execution and delivery of a successful baggage handling system, writes Vanderlande’s Ariane Schipper.

51 The art of noise Sound can be a valuable tool for ensuring safety and comfort at airports, writes Graeme Harrison.

53 People matters Dr Richard Plenty and Terri Morrissey provide their thoughts on: Courageous leadership.

55 Project watch Heydar Aliyev International Airport.

57 ACI’s World Business Partners 59 Environment news 61 Traffic trends 62 The last word Airport World gets up close and personal with TIACA’s, Doug Brittin.

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Immediate Past Chair Yiannis Paraschis (Athens, Greece) Treasurer Stefan Schulte (Frankfurt, Germany) ACI WORLD GOVERNING BOARD DIRECTORS Africa (3) Pascal Komla (Lomé, Togo) Robinson Misitala (Livingstone, Zambia) 1 vacancy Asia-Pacific (8) Tan Sri Bashir Ahmad (Kuala Lumpur, Malaysia) Dennis Chant (Gold Coast, Australia) Zhiyi Dong (Beijing, China) Rodolfo Echeverria (Amman, Jordan) Kenichi Fukaya (Tokyo, Japan) Saud AR Hashem (Jeddah, Saudi Arabia) Seow Hiang Lee (Singapore) Kerrie Mather (Sydney, Australia) Europe (7) Declan Collier (London, UK) Arnaud Feist (Brussels, Belgium) Michael Kerkloh (Munich, Germany) Tonci Peovic (Zagreb, Croatia) Stefan Schulte (Frankfurt, Germany) Sani Sener (Istanbul, Turkey) José-Manuel Vargas (Madrid, Spain) Latin America & Caribbean (3) Philippe Baril (Quito, Ecuador) Fernando Bosque (Guadalajara, Mexico) Héctor Navarrete Muñoz (Merida, Mexico) North America (7) Thella Bowens (San Diego, USA) James Cherry (Montréal, Canada) Frank Miller (San Antonio, USA) Fredrick J Piccolo (Sarasota, USA) Mark Reis (Seattle, USA) Maureen Riley (Salt Lake City, USA) Tom Ruth (Edmonton, Canada) Regional Advisers to the World Governing Board (7) Aaron Adderley (Hamilton, Bermuda) Rosemarie Andolino (Chicago, USA) Ángel Córdova Carrera (Guayaquil, Ecuador) Howard Eng (Toronto, Canada) Saud AR Hashem (Jeddah, Saudi Arabia) Bongani Maseko (Johannesburg, South Africa) 1 vacancy (Europe) Observer World Business Partner Board Chairperson Roddy Boggus (Parsons Brinckerhoff ) Correct as of May 06, 2014

NEWS

Lübeck Airport files for insolvency Lübeck Airport in Germany has filed for insolvency in the wake of the departure of managing director, Egyptian businessman, Mohamad Rady Amar. Amar acquired the airport through his logistics and project management firm, 3Y Logistic und Projektbetreuung GmbH, for the symbolic price of €1 in late 2012, and officially took over the running of the gateway on January 1, 2013. It promised to transform the airport into the largest gateway in the state of Schleswig-Holstein, but things didn’t go according to plan, and Amar left in March. It is now widely being reported that he has since withdrawn all and any financial assistance for the airport. A local court has been appointed a preliminary administrator and has agreed to allow the airport to operate for now. Located 54 kilometres from Hamburg, Lübeck Airport handled close to 370,000 passengers in 2013, and at its peak in 2005, was handling more than 700,000.

Myanmar’s big ambitions

Myanmar’s bid to upgrade its aging airport system continues with the Department of Civil Aviation’s announcement that it will issue an international tender in the last quarter of 2014 for concessions to develop 39 domestic airports. Although only 4.2 million passengers used the nation’s airports in 2013, an increase in foreign tourism is expected to drive the figure to 30 million by 2030, meaning that the government potentially faces a race against time to enhance the nation’s entire airport network or risk losing out. And, with limited funds available, it is inviting private investors to the table through PPP agreements that would allow them to manage, operate and upgrade the gateways. The government is currently seeking international loans to help it fund 50% of the projected $1.5 billion cost of the planned new Hanthawaddy International Airport in Rangoon it wants to build in partnership with private investors. It is reportedly speaking to three international consortia about the airport, which it hopes to open by 2018. Already completed deals with the private sector include the award of a $150 million contract to upgrade Rangoon’s old Mingalandon International Airport and the appointment of a Japanese consortium to revamp Mandalay International Airport.

News in brief

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The wait is over

Qatar’s new showpiece gateway, Hamad International Airport (HIA), has finally opened to traffic. More than 16 months after its planned December 2012 opening date, Doha’s new $15.5 billion gateway opened for business on April 30 when 10 airlines switched operations to the new site. Fittingly, a Qatar Airways flight was the first to officially land on the East Runway, and received the customary water salute from waiting fire rescue vehicles. All the remaining carriers serving Doha, including national carrier Qatar Airways, are expected to move to the new airport by May 27. “Hamad International Airport is a world-class aviation hub purpose-built to cater to rapidly evolving aviation and passenger needs of the 21st century,” enthuses Abdul Aziz Mohammad Al-Noaimi, chairman of the New Doha International Airport [NDIA] Steering Committee. “In fact, its capacity on opening day will be 30 million annual passengers, which is more than the initial plan. Its capacity was expanded to accommodate the increased transit growth in Qatar over the course of the past decade.” Once fully open, the terminal will also boast 16 lounges, 26 art installations, more than 100 F&B and retail outlets, a transit hotel, a swimming pool, a luxury spa, squash courts and a four-storey catering facility that is one of the largest in the world. The on-site public mosque can accommodate 500 worshippers at prayer time.

For daily news updates, visit www.airport-world.com

Nuance has officially unveiled its new duty free and speciality stores at St Petersburg–Pulkovo Airport. Covering a total of 3,200sqm and designed to serve the four million passengers who are expected to travel through Pulkovo’s Main Terminal Building in its first year, Nuance states that its new retail concept is tailored to be unique to this airport.

involving federal government, state government and private sector funding. Construction of the airport is expected to begin in 2016 in readliness for a mid-2020s opening. Southern Cross Airports Corporation, the operator of the existing airport, Sydney Airport, has Right of First Refusal for the second airport.

The Australian government has given the green light to construction of a long-standing proposed second airport for Sydney in Badgerys Creek. The new airport is part of the a A$10 billion, 10-year infrastructure plan centred on Western Sydney,

Liverpool John Lennon Airport is under new ownership after The Peel Group acquired the Vantage Airport Group’s controlling 65% stake in the UK gateway. Peel is now become the sole owner of the airport, which it has pledged to develop.

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India’s GMR Infrastructure Limited and its consortium partner Philippines’ Megawide Construction Corporation has won a 25-year concession contract for the development of Mactan-Cebu International Airport. Izmir Adnan Menderes International Airport is celebrating the opening of its new €265 million domestic terminal. Operator TAV EGE – a fully owned subsidiary of TAV Airports – claims that it has developed the new 200,000sqm terminal to support growing domestic and international travel and boost the wider economic development of Izmir.

NEWS

Global Sustainable Aviation Summit ICAO’s landmark commitment to develop a global market-based measure for aviation carbon emissions dominated discussions at the recent Global Sustainable Aviation Summit in Geneva, writes Justin Burns. Around 250 delegates from 50 countries attended the seventh aviation environment summit co-ordinated by the Air Transport Action Group (ATAG), which aimed to provide a long-term view of the growth of air transport around the world. Other issues debated were government and industry partnerships, sustainable development, preparing for growth and what the next 100 years holds for aviation. The decision made at the ICAO Assembly in September 2013, where governments agreed to develop a global measure for carbon emissions by 2020, was a core issue of the summit. Panelists in the event’s first session, had contrasting opinions on whether the measure would come to fruition, due to the diverse issues raised by members. Prashant Sukul, India’s representative on the Council of ICAO, told delegates: “A protocol or a treaty will be needed to make it work due government differences,” he said, noting that in his view, India and China would be very much part of the process. A number of outstanding issues needed to be defined, according to Sukul, although he remained positive that the Environmental Advisory Group (EAG) has reached the point to resolve any that exist. An optimistic Carl Burleson, acting assistant administrator for policy, international affairs and environment at the US Federal Aviation Administration (FAA), disagreed with Sukul that a treaty would be needed. He showed faith in the ICAO being able to set the standards to be met and agreed upon, expressing his confidence a consensus will be reached. “The US is pleased with the outcome at the last ICAO assembly on tackling aviation carbon emissions,” and added that the US wants data and analysis before issues are resolved and carbon emission cutting targets are set. Fellow panel member, Damien Meadows, carbon markets advisor to the European Commission, also warned governments to deliver. In conclusion, the panel all agreed that ICAO members had to make it work as it was the ‘only choice’ on the table for a collective global process to cut emissions in the industry.

In 2013, the aviation industry emitted 705 million tonnes of carbon emissions, which represented 2-3% of the world’s total. In her closing remarks, ACI’s director general, Angela Gittens, stated that she believed that collaboration is the key to reducing the industry’s impact on the environment. “The reason why the aviation industry has come so far is co-operation and collaboration. Aviation no longer has a target on its back from the environmental side due to the co-operation led by ATAG,” said Gittens. “I urge governments to provide the right regulatory framework to aid growth. All industry players play a part in the long-term solution to receive its permission for growth – airports are doing their part.” Final summit remarks were left to new ATAG executive director, Michael Gill, who explained in his opinion that partnerships are the key to reducing carbon emissions. “Partnerships have been the reoccurring theme running through the conference. There is a real desire on all sides to work in a collaborative manner and our industry is clearly unique in engaging with civil society. “Looking forward, our focus has to be on climate change and the work at ICAO. There is lots to do and we are in touching distance, but it is clear that failure is not an option.” ATAG also used the summit to unveil an updated version of its Aviation: Benefits Beyond Borders report. The study looked at the economic and social benefits of the commercial aviation industry around the world and examined the sector’s environmental progress. It found that the air transport industry supports 58.1 million jobs and $2.4 trillion in global gross domestic product (GDP). Of the 58.1 million jobs, 8.7 million are within the sector itself, working for airlines, at airports, in air traffic management organisations and for the makers of aircraft and engines. Gill explains: “One aspect of the aviation sector often overlooked is the benefits that rapid, safe and good value air travel brings to the wider economy and society. Our report puts that in context. “It is clear that aviation is a vital component of modern life. Aside from the employment supported by the sector, aviation helps generate 3.4% of global GDP.”

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ACI WORLD NEWS

World in motion

ACI World’s ICAO relations director, Michael Rossell, reports on the highlights of the recent ACI Africa/ICAO Regional Security Conference in Dakar.

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n their opening remarks, Pascal Komla and Ali Tounsi, president and regional director of ACI Africa respectively, explained that this important Agence des Aeroports du Senegal (ADS) hosted event had four main goals. It aimed to ensure that participants had a common understanding of the global airport security picture; were brought up to speed on the latest security developments in Africa; addressed how security might be improved; and, outlined the respective roles of all stakeholders. ACI World’s director general, Angela Gittens, spoke of how the developing strategic partnership between ACI and ICAO is benefiting the membership and the airport communities. She noted that in an ideal world, security would not be necessary, but the reality is otherwise and the industry needs to develop a security culture that caters to passengers’ needs while at the same time ensuring that all our airports are safe and secure.

Having recognised the problems of aviation security in Africa, the theme of the second day centred on the pressing and collective need to address these problems.

Technological developments Several speakers discussed the technological developments that might be used. Guido Peetermans spoke about the joint ACI/ IATA initiative on Smart Security, but the two presentations that resonated with the airport representatives were those which recognised the impact of human factors, as presented by Andrew McClumpha of LeighFisher, and the need to develop a security culture, a theme expounded by Patricia Reverdy of the European Civil Aviation Conference. As a contribution to the conference, ACI distributed free copies of the recently published Human Factors in Aviation Security handbook on the condition that the airports use them to benchmark themselves against the levels in the document.

Global perspective Setting the international scene during his presentation, Jim Marriott, head of aviation security at ICAO, said that we are in a period of relative calm, meaning that there have been no specific serious terrorist events in recent years. He noted that we should not drop our guard, but rather use this period as an opportunity to consolidate what we had learned from past attacks. To this end, the ICAO Council recently agreed two sets of Amendments to Annex 17 that would enhance both cargo security and address the insider threat. Victoria Reeder, deputy assistant administrator at the TSA Office of Global Strategies, spoke about the four key partners to aviation security – governments, airports, air carriers and passengers – and how they need to work together to combat the risks inherent in the system. She described risk as a relationship between threat, vulnerability and consequence, and expanded on this theme to a packed workshop as part of the Developing Nations Assistance (DNA) training session following the conference. Other speakers during the first day included Kabbs Twijuke, the Ugandan representative at ICAO; Michael Munnis, regional manager, international operations, TSA; and Francesco Faiulo, policy officer with the European Commission.

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Support and co-operation The afternoon of the second day was dedicated to setting out a way forward and developing ideas of mutual support and co-operation, with Ambassador Moumouni Dieguimde, the Council representative from Burkina Faso, making an impassioned plea to directors general of civil aviation to give security the priority it needed and to seek meaningful commitments to that end. For ACI, I presented a walkthrough of the current Airport Excellence (APEX) in Safety programme and suggested that this might be a model for a new approach to security – a suggestion that received widespread support, though there was a recognition that there would need to be further work and pilots to test the approach. Angela Gittens encouraged the airports to talk amongst themselves, and with the Regional Office, about a possible APEX in Security programme. Kabbs Twijuke emphasised that Africa needed to get engaged, should not rely solely on outside support and should make sure that their regulators are briefed on the issues. Fidelis Onyeriri of the Africa Civil Aviation Commission said there were several key words that summed up the conference: harmonisation, capacity building, customer service, security culture, best practice, Smart Security, human factors, AFI FAL/SEC and, of course, co-operation.

ACI WORLD NEWS

ACI events

2014

2014

2014

2014

September 7-10

June 16-18

October 13-15

ACI North America Annual Conference & Exhibition Atlanta, USA

ACI Europe General Assembly, Congress & Exhibition Frankfurt, Germany

ACI Africa Assembly, Conference & Exhibition Durban, South Africa

2014

September 17-19 The Trinity Forum Bangkok, Thailand

May 26-28 ACI Asia-Pacific/ World Annual General Assembly Seoul, South Korea

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 1200 Fax : +1 514 373 1201 aci@aci.aero 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 1201 acifund@aci.aero ACI Asia-Pacific Patti Chau Regional Director Hong Kong SAR, China Tel: +852 2180 9449 Fax: +852 2180 9462 info@aci-asiapac.aero www.aci-asiapac.aero

ACI Africa Ali Tounsi Secretary General Casablanca, Morocco Tel: +212 619 775 101 atounsi@aci-africa.aero www.aci-africa.aero

ACI Latin America & Caribbean Javier Martinez Botacio Director General Panama City, Panama Tel: +507 238 2691 jmartinez@aci-lac.aero www.aci-lac.aero

ACI Europe Olivier Jankovec Director General Brussels, Belgium Tel: +32 (2) 552 0972 Fax: +32 (2) 502 5637 danielle.michel@aci-europe.org www.aci-europe.org

ACI North America Kevin Burke President & CEO Washington DC, USA Tel: +1 202 293 8500 Fax: +1 202 331 1362 postmaster@aci-na.org www.aci-na.org

ACI represents 591 members operating 1,861 airports in 177 countries and territories, which in 2013 handled 5.95 billion passengers, 93.6 million tonnes of cargo and 79.6 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.

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ACI VIEWPOINT

View from the top ACI World director general, Angela Gittens, reflects on the importance of knowledge sharing and what ACI is doing to help airports achieve operational excellence.

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hroughout its history, ACI has emphasised the importance of knowledge transfer and the sharing of best practice. As airport managers start to look much more closely at measurements and key performance indicators (KPIs) as a means of gaining a competitive edge, we have increased our knowledge transfer activities in parallel. In addition to conferences and seminars, we provide classroom and online training, and we are producing more relevant guidance material than ever before. Our number one priority is safety, and ACI has drawn up a set of safety KPIs for use by airport operators in each of our worldwide regions. The use of these core KPIs will assist airports in focusing on the key aspects of safety, and over time will be useful for monitoring risk and understanding relative performance. This set of safety KPIs may be referred to by airports as a safety metric. The next step is to incorporate the metric as a regular component of our successful Airport Excellence (APEX) in Safety programme, thereby adding a new dimension to an initiative that this year expects to conduct safety reviews in more airports than in its first three years combined. Customer service is another major focus for airport managers, and here again, ACI is deeply involved in helping our members boost their levels of passenger satisfaction. This year marks the tenth anniversary of ACI’s engagement in measuring and benchmarking passenger satisfaction with airport facilities and services. In 2004, ACI joined forces with IATA to offer a benchmarking programme, and in 2006 we launched our own benchmarking service, the Airport Service Quality (ASQ) programme. ASQ allows airports to benchmark their performance against themselves over time, as well as in comparison to other airports, counterparts or competitors. I am very pleased to note that airports are clearly using ASQ as a tool for improvement, as is evidenced by the fact that passenger satisfaction has increased markedly since the programme’s inception. On a related note, ACI has issued a Recommended Practice on measuring passenger service process times and KPIs as a means of better understanding passenger flows and bottlenecks around the airport. Over the long-term, the data would allow us to create real-world standards for passenger facilitation at airports of all types and sizes around the globe; identify best practices; complement the

passenger’s subjective quality assessment by measuring the actual objective quality of the service delivered; and, improve the overall passenger experience. ACI understands that gathering traffic statistics, producing analyses and forecasting are equally essential to understanding the complex airport industry worldwide. Our most highly requested information is traffic-related data, and testament to its value, is the fact that ICAO has increasingly been using these statistics as its main source of information on airport activity. Added to the above, we have just recently released our 2013 ACI Airport Economics Report, which presents data and analysis of airport activity for the financial year 2012. The edition significantly expands the coverage of airport economics, including airport infrastructure, capacity, employment, ownership and regulatory models. An in-depth analysis of industry income and costs continues to be the bedrock of the report, and this year’s edition also includes a new section analysing airports’ balance sheets. In the report, ACI provides KPIs through an exhaustive statistical annex based on the data collected, defining international benchmarks that are designed to provide quantifiable barometers of industry activity and performance. It is often quoted that one cannot manage what one cannot measure. Through the hard work of its committees and staff at the World and Regional levels, ACI plays a leading role in the continued evolution of aviation by developing the data and the tools to help airport operators manage their facilities and services. AW

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AIRPORT REPORT: FERROVIAL

Planning ahead Jorge Gil, CEO of Ferrovial Aeropuertos, talks to Joe Bates about the company’s prize asset, London Heathrow, and its global development plans.

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hey say good things come to those that wait, and after just over a decade with the company, Jorge Gil was appointed CEO of Ferrovial Aeropuertos in December 2012. It actually took him 11 years, and many different positions, to rise to the top, and he believes that this “apprenticeship” means that he is perfectly placed to take Ferrovial’s airport business to new heights. “I have two main aspirations: to grow professionally and to learn. And those are things that I have constantly experienced during my time with Ferrovial,” says Gil. “In the last thirteen years I have seen the company from many different positions and in different states of health, and I am pleased to say that we are much leaner and fitter today than ever before.”

Company background Founded in 1952, Ferrovial is one of the world’s leading developers of transport infrastructure, with activities in construction, toll roads management, maintenance and services. Its business interests equate to operations in more than 25 countries and a global workforce of 65,000 employees. Gil claims that the Spanish company is the world’s leading private investor in transportation infrastructure having invested €53 billion on its assets. This includes a major stake in key assets such as Canada’s 407 ETR highway and, of course, London’s Heathrow Airport, which in 2013 maintained its long-held status as the world’s busiest international airport for passenger traffic. He believes that its portfolio of successful businesses ensures that Ferrovial enjoys a worldwide reputation as an “efficient, exemplary organisation in the sectors in which it operates”. Gil jokes that Ferrovial “landed into the aviation industry” in 1998 when it was part of a consortium that bought a 24.5% stake in Aeropuertos del Sureste (ASUR), and since then, the company has invested and managed a wide range of airports in the UK, Italy, Australia, Chile and Mexico. It acquired its prize asset, Heathrow, in July 2006 when it led a consortium that paid €23.6 billion (£16.3 billion) – including debts – for BAA Airports Limited, now known as Heathrow Airport Holdings (HAH) . As part of the deal, it also acquired Gatwick, Stansted, Edinburgh, Glasgow, Aberdeen, Southamption and Budapest airports, as well as a controlling 65% interest in Naples International Airport operator, GESAC, the retail management contracts at a handful of US airports, and minority stakes in six Australian gateways. Ferrovial’s equity contribution to the deal was €3.7 billion (£2.6bn), giving it a 62% stake in the consortium, which also included CDPQ (28%) and GIC (10%). “This was a crucial step, which consolidated Ferrovial’s position as one of the world’s leading private airport operators and management companies,” reflects Gil.

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Investment challenges According to Gil, under investment at Heathrow meant that Ferrovial inherited an airport with outdated facilities and a poor reputation for customer service. It was something the company knew it had to address quickly, and Gil believes that investing €9.4 billion (£7.8bn) on upgrading the airport’s infrastructure since 2006, a strategy it continues today with the soon-to-open Terminal 2, demonstrates its commitment to the cause. He is also quick to point out that Heathrow has strived hard to improve its customer service standards, and subsequently its public image, under Ferrovial’s ownership. Indeed, Gil states that customer satisfaction levels are at an all-time high, with ACI’s Airport Service Quality (ASQ) Survey revealing that 75% of passengers rated Heathrow ‘Excellent’ or ‘Very Good’ in 2013, as opposed to just 48% in 2007. Heathrow actually achieved its highest ever overall passenger satisfaction score of 3.99 for the first two quarters of 2013 and 3.97 in the final quarter to ensure a calendar year high of 3.97 – marginally up on 2012’s 3.94. And, as customer satisfaction levels have increased, so has passenger spending in Heathrow’s shops and F&B outlets, with retail income (including car parking) rising by 6% to €590 million (£487 million) in 2013. Duty free outlets accounted for €153 million (+3.3%) of the total, airside specialist shops for €116 million (4.3%) and Bureaux de Change €54.5 million (2.3%) in 2013, as Heathrow’s net retail income per passenger rose 2.6% to €7.7. The figures prompt Gil to comment that Heathrow now delivers “excellent operating results”. “Our business model prioritises efficiency, safety and customer satisfaction with a focus on sustainability, along with value creation for stakeholders, employees and local communities,” enthuses Gil.

Catalyst for success Before becoming head of Ferrovial Aeropuertos, Gil was head of project financing and director of corporate development at Cintra, Ferrovial’s highway division, and then director of financing and capital markets for the whole corporation. He says that the refinancing of BAA in 2008 is one of the highlights of his career to date, because of the size and difficulty of the project and the fact that it took place during the 2007-2008 global financial crisis. Gil admits: “Had the size of the deal been ten times smaller, I would be equally satisfied, owing to the complexity of closing several transactions at the same time.” He certainly has no hesitation in stating that as a result of the move, HAH possesses a robust financial position, with a solid asset valuation, and a debt restructured through bond emissions.

AIRPORT REPORT: FERROVIAL

© photolibrary.heathrow.com

Today, Ferrovial holds a 25% stake in HAH and continues to be Heathrow’s main shareholder and long-term industrial partner. However, HAH’s airport portfolio is much changed from the one Ferrovial bought in 2006 as pressure from the UK’s Competition Commission has forced it to sell Gatwick for €1.8 billion (£1.5bn) in 2009, Edinburgh for €980 million (£807 million) in 2012 and Stansted for €1.8 billion last year. It also voluntarily sold its majority stake in Naples International Airport, Budapest Airport, World Duty Free and its real estate business. The sales mean that HAH’s airport portfolio now comprises just Heathrow, Glasgow, Aberdeen and Southampton in the UK, which between them, handled nearly 85 million passengers last year.

Heathrow Without doubt, Heathrow is the prize asset of both Ferrovial Aeropuertos and HAH, the latter even stating in its 2013 year end accounts that it had become “the full focus of the business” since the sale of Stansted. And, it is easy to see why, as the UK’s only hub handled a record 72.3 million passengers (+3.4%) in 2013 and was the recipient of a number of awards in the process. These included being named the ‘Best Airport in Europe handling over 25mppa’ by ACI Europe (won jointly with Amsterdam Schiphol) and Executive Travel magazine’s 2013 Leading Edge Award for ‘Best International Airport’, while Terminal 5 won SkyTrax’s ‘Best Airport Terminal’ award. And Gil, who describes 2013 as a “great year for Heathrow”, is confident that more accolades will soon be coming its way following the much anticipated June 4 opening of its new €3 billion (£2.5bn) Terminal 2.

Also known as The Queen’s Terminal, Terminal 2 will become the new home of the 23 Star Alliance carriers serving Heathrow as well as Aer Lingus, Virgin Little Red and Germanwings, ensuring that it handles around 20mppa. Gil insists that T2 – one of the largest privately funded infrastructure projects in the UK in recent years – has been designed from the outset with the needs of the individual passenger at its heart, and with sustainability as a guiding principle. He supports the claim by revealing that T2 will produce 40% less CO2 emissions than the buildings that it has effectively replaced. It will also be the UK’s first airport terminal to be awarded a BREEAM rating for its sustainable building design. “It is an easy thing to say, but continuous improvement truly is at the core of Heathrow’s heart,” adds Gil. “Every member of the team is committed to making every journey better, every day, and all the time.”

Economic regulation According to Gil, one of the biggest challenges faced by Heathrow in 2014 will be coming to terms with the impact new economic regulation will have on the gateway. He is, of course, talking about the Civil Aviation Authority’s decision that Heathrow can only increase its charges by less than the rate of inflation for the next five years. It doesn’t sound that bad, but effectively the new ruling means that Heathrow’s per passenger airline charges will fall in real terms from €25 in 2013/14 to €23 in 2018/19. Heathrow chief executive, Colin Matthews, has already blasted the regulation as “draconian”. And Gil agrees, claiming that the findings of

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AIRPORT REPORT: FERROVIAL

the toughest price review the airport has ever faced were based on aggressive operational, commercial and passenger forecasts, requiring Heathrow to reduce its operational expenditure by more than €726 million (£600 million), and stretch commercial revenue targets by in excess of €121 million. He notes that this makes it very difficult to achieve the already “very low return” approved by the CAA. “We will review our investment plan to see whether it is still financeable in light of the CAA’s settlement,” he warns. “It means that we will need to achieve a better level of efficiency, increase productivity and reduce costs while competing with other airports in Europe, which like us, are offering better passenger service every day.”

UK capacity crunch Talking about competition from major hubs around the world, Gil is pleased with the Airports Commission’s recent conclusion that Heathrow has been shortlisted as a viable option for expansion. So too has Gatwick, although he refuses to accept that it is the main competitor to Heathrow for extra capacity. Indeed, Gil argues that there is room for growth at both airports, but claims that what the UK needs is extra hub capacity. “Heathrow and Gatwick are different,” he says. “Heathrow provides regular, direct flights to long-haul business destinations by connecting passengers from all over Europe. Gatwick serves mainly short-haul and holiday destinations. “The choice is between one hub and none, not two or a split hub. We are working with all stakeholders to support the proposal to build a new runway at Heathrow. “It is of utmost importance if the UK wants to be part of the race to emerging markets. Long-haul connections from Heathrow have given the UK a competitive advantage for the last 50 years, and we want to ensure that we will be able to provide this critical access in the future.” Gil believes that building a third runway at Heathrow would also support more inward investment that would consequently deliver more jobs, more trade and more economic benefits.

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“Continuing to have one of the world’s best-connected hub airports in the UK is vital to supporting the economic growth of the nation,” he adds. “The Airports Commission’s final report, due out in 2015, will indeed be a significant milestone in Heathrow’s history. We hope the right decision is made and we are given the opportunity to expand Heathrow.”

Global airport operator Although only operating airports in the UK today, Ferrovial Aeropuertos hasn’t given up hope of rebuilding a global airport portfolio, as its recent participation in tenders for gateways in Brazil testify. Indeed, Gil confirms that Ferrovial is actively looking for new investment opportunities. “We are committed to increasing our airport portfolio and our goal is to invest in airports where we are able to bring added value,” he tells Airport World. “Our wide range of expertise allows us to add value in the areas of construction, financing or operations, boosting revenues and improving efficiency. This enables us to analyse both existing mature airports as well as new or CAPEX intensive airports.” When it comes to investment opportunities, Gil says that Ferrovial is truly global in its ambitions. “Whilst we have a preference for Organisation for Economic Cooperation and Development (OECD) countries, we are also open to other markets,” he reveals. “As investors, we have a preference for being majority shareholders. Having said that, we are open to considering other alternatives, such as management contracts, if appropriately linked to our core business. That is a decision we take on a project-by-project basis.” In response to the question what does Ferrovial bring to the table, Gil smiles, and says “everything”. He says: “Thanks to our operational experience, proven financial capabilities and synergies with other divisions in our group, we can deliver a world-class service, implement operational innovation and attract airlines and new routes, driving growth and improving the passenger experience.” When you put it like that, I don’t think it will be long before Ferrovial Aeropuertos adds to its list of gateways. AW

AIRPORT REPORT: SABIHA GÖKÇEN

Growing places

Istanbul’s Sabiha Gökçen Airport is planning to expand and remains unfazed by the thought of a new mega-hub on its doorstep, write Chris Beanland and Joe Bates.

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ooming traffic figures in Istanbul and across the whole of Turkey arguably make it one of Europe’s most interesting cities for aviation right now. A total of 52.8 million passengers passed through Istanbul last year with Sabiha Gökçen (SAW) – opened 13 years ago – welcoming 18.8 million (+27%) and Atatürk (IST) accommodating 34.1 million (+17%). And the success is expected to continue this year with Sabiha Gökçen already predicting that it expects to handle 24 million passengers in 2014 – an increase of 28% or 5.2 million more passengers than last year. Soaring demand is, of course, nothing new in Istanbul as passenger numbers at Atatürk have been on the rise for over a decade, and Sabiha Gökçen hasn’t looked back since its privatisation in 2008, during which time its annual traffic figures have rocketed from just 4.4mppa – largely due to Turkey’s fast expanding economy and new low-cost carriers entering the market. The steady upwards surge in traffic actually led to Istanbul’s airports being officially named as Europe’s two fastest growing gateways in August 2013, and means that both – in particular Atatürk which has little room to grow – are facing capacity challenges.

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Istanbul’s capacity challenge Indeed, such is the demand for air travel to Istanbul that this bustling city of some 16 million people is planning to build a third airport by 2018 to ensure that it is capable of meeting its future needs. And, if all goes to plan, Istanbul could soon be home to one of the world’s largest airports, with four terminals, six runways and an annual capacity of 150 million passengers per annum. Built north of Atatürk on the Black Sea coast, the new gateway is due to be constructed in four phases and upon opening, is expected to boast three runways and the capacity to handle up to 90mppa. Master planned by Arup, its opening would have coincided with the 2020 Olympics, had Istanbul not lost out to Tokyo for that honour. Being described as a new mega-hub to rival Beijing Daxing and even Dubai World Central in the in the years ahead, the new €8 billion airport will be built and operated by Turkey’s Cengiz-Kolin-LimakMapa-Kalyon consortium.

Expansion plans However, with Istanbul’s new mega-hub still a few years away, it is up to the existing airports to take the strain and accommodate the current phenomenal traffic growth, which is expected to continue for the foreseeable future.

AIRPORT REPORT: SABIHA GÖKÇEN Indeed, the airport saw 49 new destinations added to its network in 2013, and with new airlines coming onboard all the time, its dependence on highly successful low-cost carrier, Pegasus Airlines, is diminishing. Turkish Airlines’ decision to build up its international route network at Sabiha Gökçen, which arguably serves a different market to Atatürk due to its location on the Asian side of the Bosphorus, has also helped. Bugday says: “We are doing well, and the current growth of both Pegasus Airlines and Turkish Airlines is set to continue this year with each introducing a number of new international destinations. We’re also welcoming Qatar Airways with Doha flights in May; Transavia France and Air Malta are other confirmed airlines, with Paris and Malta flights. The future is bright.” SAW’s passenger appeal has also been boosted by the October 2013 opening of a new rail link under the Bosphorus Strait, which has hugely enhanced its connectivity to all of Istanbul.

Customer service

This situation ensures that SAW’s owners are already working on plans to expand its capacity, with a second runway and a new satellite terminal on the drawing board that would potentially raise the airport’s capacity from 25 million to 45mppa. Set to be built on what is today described as a “topographically challenging site”, the new 3,500m long parallel runway project alone will cost €1.3 billion and allow SAW to simultaneously handle take-off and landings for the first time. Sabiha Gökçen’s CEO, Gökhan Bugday, enthuses: “It’s expected to be operational in two to two and half years’ time and will effectively allow us to double our airfield capacity from 32 to 64 air traffic movements per hour. Next will come investment in terminal extensions and additional satellites.” The investment plan shows that Sabiha Gökçen certainly has no intention of closing down when the new mega-hub opens. In fact, Bugday believes that it will flourish as Atatürk’s anticipated closure will mean that it will be the closest and best connected airport to both the European and Asian sides of the city.

Route development Bugday – who notes that the airport opened a new apron with additional parking for 19 aircraft in 2013 – is particularly proud of SAW’s recent route development record.

Bugday insists that SAW’s aim is to create a customer-focused environment, with short processing times ensuring quick and easy passage through its facilities. “As time plays an important role for all our guests, we offer a ‘time-saver terminal’ [concept] for passengers who would like to complete all the necessary processing procedures in the shortest period time. “By offering a user-friendly terminal both for domestic and international passengers under one roof, passengers travelling from Sabiha Gökçen benefit from short transit times and easy access to the plane from the parking area in just 20 minutes once they complete all their flight processes in advance.” It has also introduced a prepaid fast track system for the guests that want to use the VIP terminal entrance and private passport counter. And, Sabiha Gökçen certainly hasn’t overlooked the benefits of social media as a way of communicating with its customers. “We use Twitter and Facebook to interact with passengers to give updates about developments, promote new routes and organise campaigns related to these items and award people with plane tickets or exclusive opportunities like free lounge entrance or free parking,” says Bugday. “We have a mobile application tailored for iOS and Android devices, which also offers useful information about the flights, terminal, and real-time traffic.” Bugday believes that new retail offerings are also helping breathe new life into the airport, with blue chip brands such as Nike and Apple being added to the offer, and a slew of new restaurants that will open in 2014. “Creating and nurturing a strong relationship with a customer is an indispensable key to the ongoing success of our business,” points out Bugday.

Ownership Malaysia Airports Berhad (MHB) recently bought GMR’s 40% stake in Sabiha Gökçen for €225 Million, giving it a majority 60% holding, and at this stage it is unclear how the change will impact on the airport. It is something that Bugday declines to be drawn on, but having an experienced global airport operator such as MAHB as its key shareholder cannot be a bad thing for the gateway as it looks to AW expand and grow up to 2018 and beyond.

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SPECIAL REPORT: ASQ

Quality

guaranteed ACI World’s deputy director general, Craig Bradbrook, reflects on the first decade of benchmarking passenger satisfaction levels at airports.

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his year marks the tenth anniversary of ACI World’s involvement in measuring and benchmarking passenger satisfaction. Readers might be surprised to learn that prior to 2004, there really wasn’t much to offer airports that wanted to benchmark their services with other airports. IATA’s Global Airport Monitor (GAM) Survey was available, but it struggled to attract airports. Earlier in the millennium when I was working with Airport Authority Hong Kong (AAHK), only about 30 airports participated in the GAM survey, and the small number of gateways involved meant that it was quite limited as a benchmarking tool. In 2004, ACI and IATA joined forces to launch a new benchmarking programme, the AETRA Survey. It was a giant step forward, although customer airports never really understood the name AETRA. Indeed, many thought it was an acronym, but the name was actually taken from the Latin word aethra, meaning ‘the upper air, clear sky’. Though the choice of name served only to confuse, the jointly run programme succeeded in attracting more participating airports and grew in significance. Hong Kong International Airport was awarded the ‘Best Airport Worldwide’ accolade in the first year of the AETRA Survey. We [AAHK] viewed it as a major achievement at the time and a well-earned return on the considerable amount of staff time, effort and money invested over a period of three years to improve the passenger experience. The survey programme provided Hong Kong International Airport with a methodology for measuring and understanding the passengers’ perception of the quality of service. While we were fortunate in having a new passenger terminal, passengers were still critical of many aspects of the service provided. And those survey scores convinced us that we needed to make numerous facility improvements, including rebuilding all our passenger toilets, which were only five years old. That was quite a capital asset write-off, but the greatly improved passenger satisfaction scores afterwards validated and vindicated the investment.

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Incheon International Airport moved into the number one spot in 2005 and has enjoyed the highest average passenger satisfaction scores every year since. It is a testimony to the pride, discipline and attention to detail that is evident at every level of the airport’s operation. But, it was probably Singapore Changi that created the airport passenger ‘experience’, and set the bar for other airports in terms of innovative passenger services and entertainment, making it the transfer hub of choice in South East Asia for many years. The AETRA programme ended in 2005 and ACI World launched the Airport Service Quality (ASQ) Survey the following year, building on the success of the AETRA Survey. ACI appointed DKMA SA as its sub-contractor, and that co-operation gave birth to a number of ancillary programmes, with the ASQ Regional Survey serving airports with fewer than two million passengers per year and the ASQ Unique Survey for those airports wanting a ‘one-off’ benchmark assessment. In 2007, ACI launched the ASQ Assured Programme, which benchmarks an airport’s management approach to service quality against a business excellence model adapted for airports. It provided a ‘seal of approval’, certifying that the airport was managing service quality in line with leading practice, with a continuous improvement process culture in place that was validated by the passenger satisfaction scores from the ASQ Survey.

SPECIAL REPORT: ASQ

Kuala Lumpur International Airport and Abu Dhabi International Airport were the first to gain ASQ Assured certification. Austin-Bergstrom was the first airport in North America to get Assured certification, and it stands out for me as one of the best examples of customer service management execution that I have seen. As we found in Hong Kong, measuring the perceived quality of service on its own provides an incomplete picture. One also needs to measure the actual service delivered. These two metrics used together can help airports to define service levels and drive improvements. For example, we measured queue times at check-in, security and passport control as part of a comprehensive service delivery metric. From our analysis, we were able to determine what improvement in queuing times would be needed to achieve a desired passenger satisfaction score. Those improvements in queuing time became a management objective and our line managers worked with the airlines and ground handlers to find ways of shortening the wait time. This experience influenced the development of the ASQ Performance programme, which was launched in 2008. Today, it measures 16 key performance indicators using manual observations. It is a good programme, but the fieldwork is resourceintensive. Moreover, airports consider it difficult to compare processing times with other airports since the airports might

be very different in design and size and may operate under very different security regimes. The important thing is that airports measure their actual service delivered and use that data to drive process improvement. All this sounds rather rudimentary, but it became apparent that some airports needed training in how to optimise their use of the ASQ tools. ACI responded in 2009, launching the Managing Service Quality at Airports course, and it remains part of the Global Training offer to this day. The most recent addition to the toolbox has been the ASQ Retail Survey. This was launched in 2012 and is designed to provide airports with more in-depth analysis of the strengths and weaknesses of their retail and food & beverage offer. The ASQ Survey provides a high-level indication of whether an airport has a problem, but does not necessary indicate the problem itself. Understanding the root causes of passenger dissatisfaction as well as the key drivers of overall satisfaction has become both a science and an art. The statistical analyses provide the numbers, but teasing out the story and picture behind the numbers is the art in managing service quality. And, it is fair to say that airports today have become very accomplished in both the science and art of managing service quality. Indeed, a number of airports have consistently featured in the top five of their respective categories in the annual ASQ Awards. ACI launched the Director General’s Roll of Excellence in 2011 to recognise those airports that had been rated by passengers as being in the top five for five years or more in their regional or airport size categories. This year Cairo, Dubai, Hyderabad, Keflavík, Montego Bay and Taipei join 23 other airports on the Roll of Excellence. It is important to emphasise though that some of the most innovative airports do not win ASQ awards. Often it is the smaller airports in emerging markets, where passenger expectations are easier to satisfy, that win. Look at the service innovations one sees in European airports, like the re-engineered security process at London Gatwick, the self-service baggage drop facilities in Amsterdam Schiphol, the seamless transfer experience at Munich and Zurich airports and the way London Heathrow wows the passenger with its shopping experience. We see leading practice in every region, and that is one of the enduring legacies of the ASQ programme. First and foremost, it is a service quality benchmarking tool box designed to help airports enhance the passenger experience. Airport service quality benchmarking has come a long way in the past ten years and the bar has been raised across the industry. The ASQ Survey results clearly show that the passenger is getting a better airport experience now than before, even with the more onerous security controls. But what satisfies passengers today will not necessarily satisfy them tomorrow, and so airports have to understand and respond to those changing expectations. The challenge for ACI is to ensure that the ASQ Programme evolves in ways to help AW airports do that.

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SPECIAL REPORT: ASQ

Nothing compares to you Seven times winner of Best Airport Worldwide and the dominant performer in 25-40mppa category for nearly a decade, Incheon International Airport arguably sets the global standards for customer service excellence, writes Joe Bates.

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f ASQ awards are anything to go by, Incheon International Airport is officially the most welcoming airport on Earth, having won more than any other gateway over the last decade. According to Gu-Jong Yoo, director of Incheon’s customer service management team, the simple answer is that the airport has to live up to the expectations of one of the most demanding audiences in the world – the South Korean people themselves. “The South Koreans are a very demanding people, we have no patience, especially when it comes to service standards, there is no limit to our expectations, so to be the best in the world all you need to do is satisfy the South Korean people,” jokes Yoo. So how exactly does the airport go about pleasing its passengers? Yoo explains that at all times, the airport seeks to live up to its own mantra of delivering a level of service that is quite simply ‘beyond expectation’. “Good customer service is about giving people more than they would expect to receive. Imagine you are expecting a visitor, you might offer them a cup of water when they arrive, that is what they would expect, but if you take a look at the weather and it’s a hot day, you might add a cube of ice – that in a nutshell is our customer service philosophy,” says Yoo. According to Yoo, at each stage of their journey passengers can expect a high level of service, from multi-lingual guides operating 24 hours a day, ready to answer any question, to some of the fastest arrival and departure processing times in the world and advanced IT systems, such as biometric security and ‘interactive’ information boards.

Its kilometre-long terminal features 73 duty free shops, from boutiques to high street stores, a food court offering restaurants serving Korean or international fare, and lounges, in addition to a number of unique attractions aimed at international passengers. Proof that Incheon is doing something right comes from the best source of all – its passengers – which give it an average of 4.9 out of five in every ASQ category. Incheon’s customer service strategy is guided by a special taskforce, the Service Improvement Committee (SIC); made up of the representatives from any department that has direct dealings with passengers, who regularly sit down to take stock of their performance and analyse how service levels can be improved. “As you know, Incheon has been in operation for 13 years now and during that time we have made a few mistakes but we’ve also had a lot of good outcomes and whether its good or bad, the committee has used this experience to set our service standards,” enthuses Yoo. These include the stated targets of processing 95% of arriving passengers within 40 minutes and the equivalent percentage of departing passengers in 45 minutes or less. Yoo reveals that Incheon enjoys an incredibly close working relationship with customs, immigration and quarantine (CIQ) officials – often sharing data between agencies – and actively encourages co-operation between airport departments and key stakeholders such as the airlines and outsourcing companies.

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SPECIAL REPORT: ASQ

Passenger processing became even more efficient after a passenger number forecasting system was established in 2004, which collates airline’s schedule and passenger load factors, allowing Incheon to predict the number of passengers it can expect at any given time. This data, which can be gained two days in advance, is then used by the airport to relocate staff as necessary and prepare immigration for busy periods or surges. Eliminating a 50-year old practice of never shifting immigration inspectors between arrivals and departures was scrapped, allowing for more flexible working conditions and a 30% increase in efficiency. Thanks to these innovations, the airport is now achieving an average of 11 minutes to process arriving passengers and 19 minutes for departures, considerably faster than the average expected by ICAO. These high standards have been maintained despite the airport’s passenger numbers growing, which have increased from 19.8 million in 2003 to a record 41.5 million in 2013. With passengers now finding they have extra time inside the terminal, Incheon’s customer service team has turned to its next goal – creating value for passengers. Indeed, the expansion of Incheon’s existing terminal allowed the airport to completely redevelop customer service facilities with a new emphasis on transiting passengers. Knowing that some transit passengers spend nearly four hours at the airport, it opened a host of health and wellbeing possibilities such as spas and massage salons, free shower facilities, children’s play areas and quiet areas with seating where passengers can recline and go to sleep.

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Other attractions include the free Korean Cultural Experience where visitors can immerse themselves in the country’s culture, dress in traditional Korean costume, play traditional instruments and for the ambitious, some do-it-yourself craft making. The Korean Culture Museum also offers travellers the chance to experience Korean history first hand with a range of maps, charts and diagrams representing Korean towns, villages and temples from an earlier era. An on-demand cinema is also available in which passengers can sit in futuristic egg-shaped booths to watch their favourite movies. It compliments the two-screen 245-seat CGV cinema and a video and media art complex in the airport’s Transportation Centre, which, in addition to more shops and F&B outlets, boasts a 1,109sqm skating rink during the winter months. So how does Yoo explain Incheon’s unprecedented ASQ success? Are South Koreans voting for it because it is their only main gateway airport and they are understandably proud of it? “Absolutely not! The ASQ process is carried out within strict guidelines, according to which interviewees should be 50% Korean and 50% other nationalities, with this figure further broken down into 12.5% Japanese, 12.5% Chinese and 20% other,” he says. “So even if Koreans were to be very generous and give us a good rating, that would not be enough to get a high score. The outcomes are based to a large degree on the opinions of our core market, international passengers.” As Incheon celebrates winning Best Airport in Asia-Pacific and Best in the 25-40mppa categories for nine years in a row, it will no doubt also be planning how to win next year and wondering AW how, exactly, customer service can get any better.

SPECIAL REPORT: ASQ

Setting the pace Executive director of Indianapolis Airport Authority, Robert Duncan, tells Airport World about the secrets of the Indiana gateway’s Airport Service Quality (ASQ) success.

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hat creates excellent customer service at an airport? Some might say the answers could be as varied as the passengers who transit the terminal. After all, with each airline journey comes a unique set of circumstances, from the many different emotions, priorities, and concerns that motivate passengers to travel, to the contingencies that are bound to emerge along the way. But one thing these trips have in common is that each begins and ends at an airport, and at the Indianapolis International Airport (IND), the Indianapolis Airport Authority (IAA) team of employees makes the most of the opportunities to bookend each passenger’s journey with an auspicious beginning and a happy ending. At IND, it’s no secret that the customer experience is underpinned by a beautiful terminal that just turned five years old in November 2013, making it an infant in airport years. It would be difficult to overstate the design advantages of a terminal constructed after 9/11; IND incorporates features like spacious screening areas and connected concourses that make the reality of post–9/11 security protocols more efficient and compatible with a pleasant customer experience. The terminal’s design also features soaring architecture, a robust collection of permanent and rotating art, and an abundance of natural light within its spacious environment, helping passengers feel more at ease regardless of their air travel emotions. For our shoppers and diners, approximately half of IND concessionaires are locally owned and operated and/or feature specialties that are iconically Indy, adding to the broad appeal the terminal’s ambience creates for visitors. But the most spectacular of facilities is only as good as the people who make it run. If IND’s new terminal is the foundation of a great passenger experience, the IAA staff are the capstone. By complementing the substantive data that is collected from the Airport Service Quality (ASQ) process with an approach of direct engagement with IND customers via frontline employees, social media, and other channels, the IAA

team is able to stay abreast of passenger perceptions, face challenges, and seize opportunities for further improvement. Recently, we added real-time ‘next bus’ displays, a reassurance to passengers using our parking shuttles. We have also rolled out new technology in a less obvious place: we installed automated seat-cover dispensers in restrooms that supplement the team’s rigorous cleaning schedules. Similarly, we focus employee communications and training on areas that research and practical experience show are within the direct influence of frontline staff: courtesy of our staff and cleanliness of our airport. Concentrating on these key controllable drivers allows the IAA team to leverage a positive ‘halo effect’ that can deliver overall success and counter negative variables like airline delays and other service challenges that are beyond our control yet detract from the customer’s travel experience. Friendliness, approachability, responsiveness, and a willingness to go the extra mile, particularly with courtesy and cleanliness, are recurring subjects of employee training and communications. In fact, so ingrained in the IAA culture is the habit of picking up paper from the terminal floor that many IAA team members catch themselves repeating the habit when visiting public spaces like shopping malls. But extra efforts go a long way with our customers. Passengers regularly share stories of our frontline employees re-routing a travel experience headed in the wrong direction, from our parking staff digging out cars during one of the toughest winters in recent memory to one of our Guest Services staff stepping into a communications void between a passenger and her airline to salvage not only an international itinerary but the passenger’s wedding! Stories like these are a big part of IND’s three ‘Best Airport in North America’ ASQ awards. But the IAA team also knows there is always room for improvement and that, with airports increasingly assuming a more critical role in enhancing the overall air travel experience, plenty of great competition exists. The IAA team is thrilled to be along for the ride. AW

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SPECIAL REPORT: ASQ

Best in class

Stuart Bowden turns the spotlight on two of Europe’s top ASQ performers – Moscow Sheremetyevo and Keflavík Airport in Iceland.

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oscow Sheremetyevo, Russia’s second biggest airport, is positively wallowing in awards at the moment. For the second year running, the Moscow gateway has been voted the best airport in Europe in ACI’s annual customer satisfaction survey, and it recently scooped awards from the Adam Smith Institute and Condé Nast Traveller magazine for being Russia’s best airport. So how is Sheremetyevo International Airport (SVO) doing it? Its head of quality and certification centre, Sergey Alexandrovich Giatsintov, says quality consists of three main components, namely infrastructure, use of technology, and the human factor. “All of these have been dealt with here,” he says confidently. “New terminals have been built, procedures causing hassle have been adjusted, and the psychology of an indifferent attitude towards passengers has been changed to a customer-in-focus approach. “Sheremetyevo pays special attention to quality monitoring, applying various effective instruments. The airport quality management system is certified as ISO 9001-2008, processes are measured, and there is a wide-ranging feedback system.” There are plenty of simpler, more obvious (to the passenger) detail improvements as well, according to Giatsintov. “Best new world airport practice and new services for passengers are implemented on a regular basis,” he adds. “Considered alone, they may

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seem individually insignificant, but combined they have considerable effect: online and mobile check-in, self-service kiosks and an innovative Skype registration service, free Wi-Fi and SMS flight information.” The list, it seems, is almost without end. As well as embracing the latest communications and service technologies, this attention to detail extends to the terminal environment as well. “At the initial stage of its quality transformation, the airport paid maximum attention to decreasing check-in and passport control queues and increasing the speed of baggage delivery,” reveals Giatsintov. “This allowed a reduction of time spent on airport formalities, and we could give passengers time to enjoy the pleasurable aspects of our terminals such as the shops and F&B outlets where branded operators provide top quality services. “We know that cleanliness is important to passengers, so we constantly clean the terminals, and much attention is paid to the creation of a pleasant and friendly ambience. “In addition to the normal, we also hold exhibitions, concerts and shows in the terminals that we believe help support the holiday atmosphere for leisure travellers, and anticipation of a pleasant flight.” Staff, he adds, have also come in for special attention. “Airport personnel, in recent years, have gained special elegance thanks to a unique uniform design by a famous couturier,” notes Giatsintov, “We have also introduced a special ‘Welcome Anytime’ customerfocused training course at the airport’s corporate university – which, incidentally, is open to third parties as well as our front-line staff – to ensure that they have the customer service skills to match their dynamic new look.” Giatsintov believes that Sheremetyevo’s growing reputation for providing quality customer service has boosted its appeal with Muscovites, but is realistic enough to admit that SVO still faces tough competition from Moscow’s other gateways – Domodedovo and Vnukovo. “The choice of airport is a multi-factor process,” he says somewhat philosophically. “However, when deciding which airport to fly from or to, many passengers tend to choose the one with a good reputation! “A good reputation also helps attract commercially significant and successful business partners, such as the world’s leading concessionaires, as they want to be associated with such airports.”

SPECIAL REPORT: ASQ

Keflavík International Airport Admittedly its name doesn’t help its cause, but when most people who have never been to Iceland before think of it, they commonly perceive it to be a cold and chilly place! It can be in the winter months, of course, but this northern land’s climate is certainly not reflected by the welcome passengers receive at its main airport, capital Reykjavik’s Keflavík International Airport. Indeed, its commitment to customer service recently earned it a place in the Director General’s Roll of Excellence – an honour that recognises those airports which, in the opinion of the passengers who participated in ACI’s ASQ surveys, have consistently demonstrated high levels of customer service over an extended period. Guðmundur Daði Runarsson, Keflavík’s deputy terminal director, is understandably delighted with his airport’s elevation to ‘star’ status. But, he says, no one will become complacent in their efforts to further enhance the passenger offering at Iceland’s main international gateway. “We are very proud,” he says. “We’ve been working very hard for this over the years and are delighted by the honour, but this is just the beginning of a never ending journey.” Does achieving such an award bring concrete benefits to an airport in commercial terms? “It doesn’t in itself,” says Runarsson. “It’s always difficult to put an exact value on services, but in a promotional sense it can be very helpful. Obviously we’re looking to put a value on it in dollar terms, but it’s difficult to quantify.” He goes on: “It’s very good for the development of new routes, for example, as it raises the airport’s profile and helps attract interest in Keflavík. So, in a promotional sense, I’d say that it is very helpful as we can demonstrate to airlines that if they bring their passengers to us, we place a high value on the services we offer to them when they are here.” Runarsson points out that when a passenger has a bad airport experience, they are more likely to complain to the airline than Isavia – the airport operator – or worse, just not use that particular route again.

A focus on service, he adds, does help generate repeat business, and people are maybe even willing to pay a little more when, for example, making a choice of which airport to transfer through. When asked about the main areas of focus for Keflavík’s dedicated ‘service team’, Runarsson tells Airport World that service levels must reflect the airport’s status as Iceland’s gateway to the world and a growing hub for trans-Atlantic services. “We have to offer a good welcome – and likewise give departing and transfer passengers a good experience, not just in terms of physical facilities, but in areas like passenger assistance, quick and easy transfers, and so on.” Runarsson is only too aware that Keflavík has a lot of hard work ahead of it to retain its lofty reputation for customer service, as history has shown that getting to the top is difficult, but staying there is even harder, as it means that the high standards that got it there in the first place have to be maintained – and further raised. However, unfazed by the challenge, Runarsson outlines some of the ongoing initiatives that he hopes will further enhance Keflavík’s service quality. “We’re employing service agents who roam the terminal offering assistance to passengers. They are simply here to make travel easier,” he says. “Also, since last year, we have taken on consultants to train our staff in service provision, and just showing a friendly face.” He also notes that Isavia listens to its passengers and, if possible and necessary, will make changes to its services and facilities on offer at Keflavík and its other Icelandic airports. Runarsson cites the conversion of a large part of Keflavík’s basement into new toilet facilities for passengers, effectively increasing the number of individual washrooms from 16 to 83, as an example of such a response. Aware of the number of international passengers passing through the airport, he points out that the seating areas contain a choice of European, UK and US plug points. In addition, every seat in the waiting areas has a USB plug. AW It’s clearly all in the details.

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SPECIAL REPORT: ASQ

Experience is everything Sweeping up two ASQ awards for 2013, Singapore Changi’s formula for success puts customer experience at its core, writes Tina Milton.

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reating a unique travel experience, which is personalised, stress-free and surprising are the key elements driving dedication to customer service at Singapore Changi. The Changi Experience is designed to allow passengers to enjoy a diverse range of facilities, services and activities peppered with elements of fun and excitement. These range from free Singapore tours for transit/transfer passengers and the world’s first Butterfly Garden in an airport (amid several other thematic gardens) to Singapore’s tallest indoor slide – the 12 metre high The Slide@T3 – and the world’s largest kinetic art sculpture at an airport, Kinetic Rain, in Terminal 1. On top of providing a spacious and comfortable environment for passengers, with lush greenery and rest areas interspersed across the terminals, wayfinding is installed to be simple and intuitive to keep travel stress-free. Airport operations management senior vice president, Jayson Goh, says: “Another differentiating factor is Changi’s operational efficiency, as operating standards are set for key service touch points such as check-in, immigration, baggage collection, taxi queues and so forth.”

Community To provide specialist help, over 200 roaming Changi Experience Agents (CEAs) proactively seek passengers who may need assistance. All CEAs are equipped with a tablet to access real-time information and offer assistance to passengers on the move. Goh notes: “We have CEAs with strong foreign language proficiencies from over 20 different nationalities, speaking a total of more than 35 languages and dialects, including English, Mandarin, Malay, Tamil, Hindi, Japanese, French, Tagalog and Thai.” Besides the staff working at airport operator Changi Airport Group, the entire airport community houses over 32,000 staff, which underpin the customer experience. They comprise airline employees, ground handlers, government agencies and other essential airport services, and it is crucial that all airport partners embrace the vision for service excellence providing a consistent Changi experience as One Changi Community.

Digital platforms In order to reach a diverse spectrum of passengers, Changi has also embraced new technology platforms. Social media tools such as Facebook, Twitter and iChangi mobile apps enable Changi to connect with over 360,000 ‘Fans of Changi’ and other users of the airport. Goh remarks: “We actively connect with them on the latest news at the airport, understanding their likes and dislikes, pushing essential information to users on a timely basis. This has greatly enhanced engagement with our passengers, providing us with valuable feedback, which is an important part of airport operations.”

Customer feedback However, Goh is far from complacent about Changi’s customer service achievements and by using an Instant Feedback System (IFS), in conjunction with its partners, ensures it is in sync with customers’ expectations. This can help with areas where it may have missed the mark in any part of the passenger journey. “The IFS can harness the power of customer feedback and also empowers our ground supervisors and managers to respond instantaneously to the customers’ needs or initiate any service recovery,” insists Goh. “The IFS is able to provide a comprehensive overview of the real-time performance levels at various service touchpoints at Changi. This initiative, termed as SWIFT (Service Workforce Instant Feedback Transformation), has been implemented airport-wide at key touchpoints such as check-in, retail and F&B outlets, information counters and washrooms.” In terms of future development, achieving consistency across all terminals is vital so service performance and delivery will be constantly reviewed with airport partners to ensure relevance to the growing passenger traffic at Changi. To strengthen the positive service mindset and service skills of frontline staff three approaches are deployed – relevant training programmes, service initiatives to engage and motivate airport staff and process improvements with airport partners to drive consistency and enhancement across the airport service experience. While its facilities provide many location firsts for visitors, Changi’s customer service strategy is to always put the passengers at its heart and build an experience they will not forget for all the right reasons. AW

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AIRPORT DESIGN

The bigger picture

Form and function will be intertwined in Shanghai Pudong’s planned South Satellite Concourse to elevate the passenger experience, writes Corgan’s Jonathan Massey.

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irports are working hard to set themselves apart from their competitors, and nowhere is this more evident than in the design of new terminal buildings. In an effort to bring business and tourism into their communities, airports often seek iconic structures to draw international notoriety, and so significant focus is placed on dynamic roof forms and structural expressions. However, while these may be the most obvious aspects of terminal design, they do not always directly address the most critical needs of the facility. Indeed, terminal designs focused on large-scale metaphorical expressions may overshadow the smaller, more human aspects, which ultimately are how the users of the facility experience the building. But things are changing, as an ever-increasing number of airport operators are beginning to realise that creating a good passenger experience is about more than just the process of moving people from kerbside to airplane through a building with an elegant roof form.

Form and function In today’s travel age, it’s about enhancing the time passengers spend in the airport by providing environments that are enjoyable and alleviate the inherent stress of flying. After all, airport terminals are complex machines, which facilitate a journey using multiple processes and modes of transportation. Given the nature of airports, where processes are repeated thousands of times a day by passengers and employees, the careful crafting of the environment and functionality are critical to the long-term success of the facility.

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The design must look past the obvious response of dynamic structure and roof, and address the true needs of passengers and operations. Form and function must be intertwined. An airport’s success is dependent upon the passengers’ ability to navigate a series of decisions and terminal architecture can either simplify the journey or add unnecessary complexity to it. To operate at peak efficiency, the terminal’s architecture and functionality must be designed together. Architecture needs to be part of the functionality, not divorced from it. When done properly, the design is then able to elevate the passenger experience to a new level. Corgan is currently designing the new South Satellite Concourse for Shanghai Pudong International Airport (PVG). This exciting project, to be completed in 2018, will be the world’s largest remote satellite concourse with more than 100 gates. The design concept is based on the principle of achieving elegance through careful planning and effective design. To enable the Chinese gateway to achieve its goal of becoming the premier Asia hub, the project must not only create a beautiful and efficient form, which exceeds all operational requirements, but also re-imagine the passenger experience. This focus on creating a unique experience will result in increased commercial revenues, higher passenger satisfaction ratings, and greater interest in Shanghai as a global destination. The principles of the design are based on the concepts of Flow Design, Experiential Design and Informative Architecture.

AIRPORT DESIGN

Flow Design

Informative Architecture

Significant plan exploration determined the most efficient and direct passenger flows, while also acknowledging that each passenger type requires a unique experience and movement through the airport. The solution enhances the journey of the passenger and provides aspects appealing to a variety of passengers. The efficiency of passenger flow is the foundation of the design concept. The project consists of an H-shaped plan covering more than one square kilometre, served by two separate Automated People Mover (APM) systems. When passengers arrive in the stations they are faced with a three-way decision as the stations are located at the intersection of three concourses. Because of this geometry and the unusual size of the facility, careful planning of flows, wayfinding and decision points were critical to minimising walking distances.

The third major design effort creates Informative Architecture that works in concert with the flow and experience using every part of the interior environment to support the purpose of the facility. This begins with the large-scale gestures of roof form and natural light. For PVG, a series of three roof planes were created. Each vertical break in plane is strategically placed to provide an interior edge of light reinforcing the primary directionality of the facility. This is the primary level of inference from the architecture that the passenger will perceive and serves to create a basic sense of orientation once passengers emerge from the APM station into the main volume. The secondary informative scale is related to the primary flow of departing and arriving passengers. At this scale, the focus shifts to specific decision points along each of the paths of travel. Due to the triangular geometry, the decision point planning process was critical to the clarity of the passenger flows. At increasingly smaller scales, other elements such as materials, lighting and graphics continue to convey the concepts above. This approach, of focusing on the interior experience rather than the exterior form, is an appropriate response for a remote concourse with no landside experience. With the challenges of geometry, scale and flow, the focus obviously belonged to the interior. With this focused interior approach of effectively combining flow, experience and informative architecture, I believe that Corgan is creating a cohesively conceived and executed AW passenger experience.

Experiential Design The second major component involves Experiential Design. The design of the passenger experience for this project involves a detailed understanding of specific passenger needs in order to facilitate and enhance their journeys. Passenger types were divided into four profiles to help inform the exploration of passenger flows, processes and architecture. These profiles were developed to identify the needs of each passenger type relative to services, the interior environment, concessions, amenities, wayfinding and physical environment. By understanding a person’s travel as an experience, the design materialises the details, emotions and expressions that enhance each passenger’s path through the processes of a typical airport, as well as pinpoints the activities encouraging them to become engaged in activities that help pass the time.

About the author Jonathan Massey is a principal with the Aviation Studio of Corgan, a multi-national architecture and design firm.

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FOCUS ON AFRICA

Investing in Africa Airport development across Africa is beginning to gather pace with governments and investors looking at opportunities to enhance existing infrastructure, writes Joe Bates.

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ncouraging annual traffic rises, boosted by economic growth and an increase in tourism, is providing a stimulus for expanding and enhancing airports across Africa, according to a new report. It has a lot of catching up to do, of course, because despite being the world’s second-largest continent after Asia, with around one billion people, it remains the most underdeveloped with an aviation market that accounts for less than 3% of global passenger traffic. The report – Airports in Africa: Capital Investment Programmes – 2014 by Brooks Market Intelligence – recognises that the overall need to invest in new infrastructure is down to a host of historical factors such as a frequent change in leadership and decades of underfunding. However, it states that times are changing and there is now room for “cautious optimism” as moves continue to liberalise the African market to encourage growth and international investment. “There have been successful attempts by the more stable governments to upgrade facilities to bring them up to international safety standards and, in some instances, expand capacity, in the drive to boost trade and encourage growth in tourism to its many historic sites, varied landscapes, and extraordinary abundance of wildlife,” it states. It says that this is particularly noticeable in Sub-Saharan countries and notes that a major contribution is being made by China, which has become a major force of influence and is showing increasing activity in the construction of airport infrastructure, supported by favourable financial terms by the Chinese government. To really make progress though, the report claims that African governments need to do more by removing the “heavy burden of taxes, which puts local airlines at a competitive disadvantage, and instigate better connections within the continent through liberalisation.” Courtesy of the report, Airport World below provides a snapshot of infrastructure development projects in North Africa.

Algeria Key projects include the construction of new terminals at both Algiers Houari Boumediene and Oran’s Es-Sénia Ahmed Ben Bella airports. Designed by UK architects Llewelyn Davies and Algerian company BREA, the new terminal at Algiers Houari Boumediene International Airport will raise the gateway’s capacity from 6 million to 10mppa when it opens in late 2014/early 2015. New taxiways, apron and access roads are also due to be added as part of the $330 million upgrade awarded to Terminal Ouest.

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The group is led by Prointec, the infrastructure and engineering subsidiary of Indra Sistemas. In a separate project, the Algerian government has approved the construction of a railway connection between Bab Ezzouar and Algiers Houari Boumediene. A 40,000sqm cargo village is also under construction at the gateway. Algiers Houari Boumediene is operated by SGSIA – a public economic enterprise managed by Aéroports de Paris (ADP). The nation’s 17 other gateways are the responsibility of government agency Egis Avia.

Egypt Cairo Airport Company is the operator of Cairo International Airport, which, until the end of January 2014, had been managed by global airport operator Fraport since 2005. Cairo International Airport’s Terminal 2 is currently being refurbished and expanded by Turkish construction firm Limak Holding. The $387 million project – financed by the World Bank – started in January 2012 and is scheduled for completion in 2015, when the complex will be equipped to handle 8.5mppa. It follows the construction of a third parallel 4,000m runway, 3.5mppa capacity Seasonal Terminal and an Automated People Mover at the gateway. An extended Metro Line linking Cairo Airport with Giza is expected to become fully operational by 2019. Fraport claims its nine-year management contract at Cairo International Airport was a great success. In February 2014, Fraport’s chief financial officer, Dr Matthias Zieschang, said it had been “a win-win project for both Cairo and Fraport”. Elsewhere in Egypt, Hurghada is set to get a new 91,500sqm terminal capable of handling 7.5mppa and a second 4,000m runway, the latter of which will be built by local company Orascom Construction Industries (OCI). Plans are also on the table for a capacity doubling, $350 million third terminal at Sharm El Sheikh and terminal extensions at Abu Simbel, Marsa Matrouh and Taba.

Libya The impact of the 2011 uprising that led to the fall of the Gaddafi regime continues to be felt in Libya today in terms of the uncertainty over whether a host of previously planned projects at a number of gateways will either commence or be completed. Work on the $825 million upgrade of Benghazi Benina International Airport, for example, was interrupted by the

FOCUS ON AFRICA uprising and has yet to resume. It included plans for a new Aéroports de Paris Ingénierie (ADPi) designed terminal, runway and apron. The airport now plans filling the void by opening a new “temporary” passenger terminal, being built by Korea’s Nemo Partners, this year. Nemo Partners also began work on a new terminal at Misrata Airport in 2013 and there is positive news elsewhere as work has begun on a new $450 million terminal at Sebha. The 3mppa capacity terminal at Sebha has also been designed by ADPi and the Libyan Civil Aviation Authority – responsible for the development, management and operation of the country’s 25 airports – says that work has also restarted on the $2.5 billion expansion of Tripoli International Airport. The multi-faceted expansion project originally included plans for new ADPi designed 175,000sqm East and West terminals to be built by an international consortium comprising Brazil’s Odebrecht (50%), Athens-based Consolidated Contractors Company (25%) and Turkey’s TAV Construction (25%).

Morocco A large number of projects have either recently been completed or are underway at the country’s smaller airports. They include terminal facelifts at Agadir and Dhakla; runway upgrades at Bengueric and Benslimane; new lounges, equipment and infrastructure at Al Hoceima, Laayoune and Oarzazate and Tangier; construction of a new 1,200sqm terminal at Errachidia; a new terminal building and take-off runway at Oujda; and a new terminal at Tan Tan. The projects come with a combined price tag of €320 million, of which €240 million will come from the African Development Bank (AfDB) through a loan arrangement.

Elsewhere, projects to expand the terminal building at Casablanca Mohammed V is close to completion. The gateway is also getting a new 30,000sqm cargo terminal capable of handling 150,000 tonnes of freight per annum and has unveiled plans for a new 50,000sqm Terminal 4 and a third runway. Marrakech Ménara is looking to construct a new 50,000sqm Terminal 3, which will increase its annual capacity to 10mppa. The project, which will be financed through a loan from the African Development Bank (AfDB), will follow the planned expansion of Terminal 2 and soon-to-be completed work extension of Terminal 1.

Tunisia A TAV Airports Holding-led consortium holds a 40-year concession to operate and develop Monastir Habib Bourguiba and Enfidha Hammamet airports, the latter of which it built and opened in December 2009. Tunisia’s Civil Aviation and Airports Authority, OACA, manages the country’s seven international airports of Tunis Carthage, Djerba-Zarzis, Tozeur Nefta, Sfax Thyna, Tabarka Ain Draham, Gafsa Ksar and Gabès Matmata.

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This article is based on the 2014 edition of Brooks Market Intelligence’s Airports in Africa Capital Investment Programmes – 2014 report, which summarises capital investment projects at more than 80 airports in 54 African countries. Copies of the report can be ordered at www.brooksreports.com

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AIRPORT DESIGN: HEATHROW T2

Looking good! Heathrow is confident that its new Terminal 2 will enhance the passenger experience and set a new benchmark in airport design, writes Justin Burns.

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he spotlight will be firmly on Heathrow this June when the world’s busiest international airport opens it latest showpiece facility – Terminal 2: The Queen’s Terminal. The huge new addition to Heathrow’s infrastructure has taken four years to build and will, arguably, make the UK hub more efficient than ever before as it will allow all 23 members of the Star Alliance to be under one roof for the first time. Initially equipped to handle 20mppa, the state-of-the-art complex has been built on the site of the old Terminal 2, which opened in 1955 and was designed to handle 1.2mppa but ended up handling over eight million passengers in its last few years. An enthused Stephen Buckley, head of category at Heathrow Airport Holdings, told Airport World, that the new T2 is a key part of the gateway’s future strategy. “This is a massive stepping stone, as it will be the most modern airport facility in Europe, handling a very large number of transfer passengers (through the Star Alliance). “Transit travellers will no longer have to switch between terminals, so the journey of many passengers will be so much better. “Terminal 5 was an incredibly strong benchmark, but T2 is built for the passenger and is all about the experience and journey, from the simplicity of the car park, to the check-in to airside, and the way the retail has been laid out. Everything is designed to enhance the passengers’ experience.”

Facts and figures Heathrow’s new addition sprawls the equivalent size of 25 football pitches, with the main terminal building T2A and a satellite building T2B, that connect via an underground walkway. The gateway signed up a raft of firms to work on the design and build of the Queen’s Terminal, including concept and lead architect Luis Vidal + Architects, who collaborated with Pascall+Watson during the

fit-out phase, to create a striking three-wave roof design, which can even have its colour changed. Master planner was Foster + Partners, who also took on the responsibility of terminal building concept architect during the initial project phase. The main terminal buildings were constructed by HETCo (a joint venture between Ferrovial Agroman and Laing O’Rourke) and Balfour Beatty. A total of 24 boarding gates will service flights, 10 located in T2A and 14 in T2B, while a two-level departure lounge has 10-metre viewing windows giving sweeping views of the aircraft apron, and the spacious check-in area features a mix of 182 traditional and self-service desks. Also built on the site are a four-storey car park with 1,340 spaces, a ground handling building and an energy centre and cooling station. Contemporary artwork has also been incorporated into the design of T2, and arriving passengers will be greeted by Slipstream, a 78-metre aluminium sculpture the size of an A400 aircraft, created by artist Richard Wilson.

Setting a benchmark Extensive planning and development went into T2, and planners used the positive – and negative – experiences learnt from Terminal 5 in their strategy. “We have taken the best things from T5, and lessons learned from that and other projects to create an even better terminal this time around,” says Buckley. “It has given us the chance to make the customer journey even better.” He says in Heathrow’s view, it will be a ‘benchmark’ project for the development of airport terminals, and will shape the hub for generations to come. “T5 was a great benchmark, but we have aimed to improve on the space and design, and in terms of retail and F&B,” Buckley adds, noting that successful elements from T2 are likely to be rolled out to Heathrow’s other terminals when they are upgraded in the future.

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AIRPORT DESIGN: HEATHROW T2 Going green Building a sustainable terminal and keeping carbon emissions to a minimum Buckley says, were a key part of the development. Terminal 2 will be one of the first BREEAM-certified airport terminals in the world, while the 50,000sqm three-wave roof, and 10-metre high windows have been designed and installed to maximise natural light. The terminal will emit 40.5% less CO2 emissions compared to those built before 2006, and 20% of T2’s energy needs will come from renewable sources, while 97% of the demolished buildings from the old T2 and former Queen’s Building were recycled. Meanwhile, the energy centre, Buckley explains, runs on wood chippings from Richmond Park, and is one of the largest biomass boilers in the UK, and will provide energy, and act as a cooling station.

All about the passenger According to Buckley, the passenger experience and comfort was at the heart of the T2 project, as Heathrow set about catering for every potential traveller requirement. Buckley explains that as Heathrow operates more than 99% capacity level on a daily basis, it only takes some fog to paint a negative image in the minds of customers, so it was vital T2 is somewhere people enjoy spending time. “What T2 will ensure is that your journey and while you are at Heathrow, will be as pleasurable and enjoyable as possible,” Buckley says. Facilities and have been built to meet passengers’ varying needs, and a host of innovative dedicated services have been introduced, he says. These include family short-stay parking close to the terminal building, children’s play areas, and for business travellers, car park space finding technology, and free Wi-Fi and connectivity tables. Multi-lingual passenger ambassadors will also be on hand to assist, while personal shoppers will help maximise shopping experiences. ‘Experiential’ is the word that comes up repeatedly when Buckley talks about what T2 is all about, and he says the difference between T2 and T5, is that the newer terminal will be more interactive and provide a better customer experience. “Terminal 5 looks, feels and sounds amazing, but T2: The Queen’s Terminal will have more things for people to do. “There will be beauty facials, nitrogen ice cream being made, and restaurants will use the latest technology, while it will be one of the first airports in the world to have personal shopping. “Everything is geared at T2 for technology, and to make the passengers’ journey as simple and easy as possible.”

Sense of place Heathrow aimed to create a ‘sense of place’ at T2, so Britishness was adopted as the central theme, to showcase everything that Great Britain has to offer. Research carried out by the airport during the planning phase, found travellers wanted more premium restaurants and a greater number of British brands. “Most of the research we have looked at when people talk about airports is they say they are the same,” reveals Buckley. “A lot of airports look and feel the same, for example, to the extent that you could be anywhere, but T2 has been designed and developed with a sense of place, that you feel you are in Great Britain.” Retail and F&B concessions include 64 shops and restaurants to keep passengers busy, of which 60% are British brands.

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Creating a diverse and unique retail and F&B environment to maximise non-aviation revenues was a key part of the T2 strategy. Passengers can shop at John Lewis (their first airport store), Burberry or Harrods, have a pint at a Fuller’s operated pub (London’s Pride), or eat at Heston Blumenthal’s The Perfectionists’ Café. At the forefront of the retail environment, is a 22,000 square foot World Duty Free store, kitted out with a high-tech digital facia. Regular services will include free beauty treatments from brands such as Clinique, while liquor brands will frequently run tasting bars and promotions. Buckley comments: “The duty free store at T2 is not a branded store, it is a house of brands. The duty free store will be a very luxurious environment.” So the stage is set for Heathrow once again, and T2 will even get the royal approval and endorsement when the Queen officially opens the new terminal on June 23. For now, the 24,000 staff it will employ are busy focusing on the first day, and Buckley says that he and his colleagues, are well aware the world will be watching. He says the hub expects some ‘teething problems’, but he confidently assures Airport World that Terminal 2 will be ready and raring to go come the June 4 opening date. Passengers on a United Airlines flight from Chicago O’Hare with an ETA of around 6am on June 4 are expected to have the honour of being the first to use the terminal. Do you think that this will be too early for a celebratory glass of champagne?

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AIRPORT ADVERTISING

It all ads up Charles Hugill takes a closer look at the current trends and innovation in the global airport advertising market.

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he world of airport advertising ebbs and flows as much as the sectors it straddles, namely ‘Aviation’ and ‘Out of Home’. Change has been a constant feature of this part of the international media landscape for years, and against this background it is possible to detect the following trends and patterns emerging.

Regional versus global On the supply side of the equation, airport media owners – or vendors – invest considerable time and effort improving their offerings (more of this later). On the buying side, there is a shift towards planning and booking more regionally, as opposed to globally. In Asian international airports, for instance, it is estimated that more than 70% of advertising campaigns are now being bought within the region, up from less than 60% five years ago, and nearer 50% in the five years before that. Gone are the days of brands queuing up to build long-term airport media holdings spanning the top 50 or so international airports simultaneously. Over the last 10-15 years, it has become the norm for advertisers to buy their airport campaigns tactically, market by market, or region by region, and typically for shorter (cheaper) periods. This pattern is now well established, and will increase as more airport-based media formats are converted to digital and shorter booking cycles become more feasible. Exceptions remain, HSBC’s well-known global jetbridge holding for instance, but they are relatively few and far between.

These infrastructure projects all produce a quantum leap in the range and quality of the media formats available. In the Middle East, for example, some of the best digital airport media inventory has recently been installed in Dubai, while 60% of the media opportunities at Qatar’s Hamad International Airport – due to open Spring 2014 – will be digital. These will include some of the largest airport interior displays yet built, each measuring more than 280sqm.

Airlines as media owners New buildings = new opportunities For significant improvements in airport media inventory, any major new building project involving passenger facilities provides a key impetus. New terminals and piers bring with them new opportunities. In Europe, Frankfurt’s Pier A in Terminal 1; Terminal 2’s S4 Satellite at Paris CDG; Heathrow’s Terminal 5 and its forthcoming Terminal 2 – opening in June 2014 – have all involved the introduction of significant amounts of media inventory in to the market. The futuristic pods linking Heathrow’s T5 Business Car Park with the terminal are one such example that effectively combines a media first with a new passenger service asset. Another good example of a gateway to benefit from new advertising opportunities offered by the opening of a new facility is Los Angeles International Airport, courtesy of its new Tom Bradley International Terminal. Elsewhere, changes of ownership at London’s Gatwick and Stansted airports have led to the re-building of airside departure and retail areas that have created new opportunities for improved advertising displays. In China, where digital formats account for 35% of Out of Home spend, recent airport building projects all include digital kit. And in Brazil, the new Terminal 3 at São Paulo’s Guarulhos Airport benefits from the efforts of a newly-appointed concessionaire with expertise in digital Out of Home in other non-airport environments.

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At Hamad International Airport, the growing trend of airline involvement in media ownership is evident. Qatar Airways, the national carrier and operator of the airport, will also sell the media opportunities therein via its own in-house team. In the US, United Airlines’ tie-up with Out of Home vendor Titan Air can now offer advertising displays in 40 airports, many of which have existing primary concessions with other rivals. Elsewhere in the US, RMG Networks sells media both inflight and on the ground with many of its partner airlines, and in Australia, oOh! Media are now delivering advertising solutions in Qantas Business Lounges across the country. Increasingly, airlines are seeing the benefit of media ownership both on the ground and in the air as they enhance their relationship with the customer, and this looks set to be the focus of their attention in future, with the opportunities for customer interaction provided by booking online.

The joint approach Most airport media concessions are traditional third-party agreements between a landlord/airport and the sales house responsible for selling the advertising space. However, in recent years some groundbreaking joint ventures have been formed. One such example can be found in India where Delhi’s Indira Gandhi International Airport and Times Innovative Media have

AIRPORT ADVERTISING

joined forces to manage the airport media there. A similar tactic was adopted in France back in 2011 by Media AÊroports de Paris and JCDecaux. This type of co-operative approach is still rare, but is more likely to succeed by encouraging a more collaborative way of working. Time will tell if it is to become more widespread. However, the in-house media sales operation, long-favoured at Amsterdam Schiphol and London City Airport, still generates some of the best and most innovative airport media campaigns. One thinks of the Bombay Sapphire East brand/retailer/ media collaboration and its rickshaw rides for passengers between duty free outlets and their gates. Who could forget the reptile’s tail poking out of the suitcase on the carousel at Schiphol? Unexpectedly, the client for this particular stunt was none other than the Dutch Customs Authority. At London City, the Bloomberg Hub, a newly launched groundbreaking immersive brand experience for the airport environment, deserves mention for its vision and its direct relevance to a business audience. In such cases, intelligent execution is critical for the concept to succeed when implemented, a task sometimes made easier when the media sales are handled by an in-house media team.

The future Based on the last 25 years, it seems almost inevitable that the passenger audience will continue to grow. New airports and terminals will be built. Media channels will both proliferate and consolidate (albeit with regional variations). With this growth will come more demands for improved services and connectivity across all parts of the consumer travel experience.

Digital media placements, with their tactical flexibilities, undoubtedly have a part to play in that area as they allow advertisers and brands to target their campaigns more intuitively, thereby engaging more effectively with their audiences. However, few marketeers have fully grasped the opportunity to communicate with the passenger with a consistent message at every stage of the travel trail, from the moment the flight is booked right through to arrival at journey’s end. One or two possibilities currently exist but there is no critical mass as yet. The onus for this nirvana to become a reality, rests squarely on the shoulders of the disparate group of vendors involved, and on the rather less numerous major buying points for this type of media activity. Implementing an integrated aviation media campaign from the beginning to the end of the travel process is not straightforward, but, nor is it impossible. With the right approach, and the improvements networked digital displays now offer, this could and should become a regular occurrence. Another potential development is for a commercial sponsor to take the plunge and sign a long-term naming rights deal for an entire terminal, or even an entire airport. One or two have come close in recent years, but not quite close enough to get over the line. For a single brand to undertake such an enterprise would signal the ultimate airport campaign. As someone once said, watch this space! AW

About the author Charles Hugill has worked in the Out of Home and airport advertising sectors for over 30 years as both a media owner, and as a planner/buyer of international campaigns. He runs his own independent consultancy, CHMedia Associates.

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AIRPORT SEATING

The bottom line Airport World talks to two of the world’s leading airport seating companies to discover more about the latest innovations and industry trends. Lynn Gordon, vice president , airport solutions, Arconas Why should airports care about airport seating? What airports have realised is that seating is one of the most effective ways of creating a better environment and passenger experience, which is so important at airports. The industry has transformed so much and there is much more attention now to the size, colour, experience, diversity, comfort and style and arrangement of seating to improve the passengers’ experience.

Is there any evidence that proves the positive impact good seating can have on passenger satisfaction levels at airports? Absolutely! Recently we did an installation at Portland, in Oregon, a beautiful mid-size airport. They saw their passenger experience ratings jump 12% immediately after the new seating was installed. There is tangible evidence in the ratings, and one client said when we added power to the seating, they saw a 12-15% jump in revenue. If passengers do not like the seating, this has a negative impact on their experience at an airport. They are less satisfied.

What are the current trends driving the latest developments in airport seating? The number one trend is powered seating which is embedded into the seats. It has been an enormous success for us. People are more wired than ever (iPads and iPhones etc). Another big trend is creating a more diverse environment within the hold room. When I first started in the business (15 years ago), the idea was to pack as many seats as possible, with row upon row of seating, but you find airports are breaking from that entirely now and are looking at mixing different types of seating, and acknowledging that they do not have one type of passenger. Airports want to make themselves much more inviting by creating a lounge type experience, and are doing that with colour especially, and are getting much more experimental.

Can seating make airports money? Seating can be developed and arranged in ways that encourage retail sales. For instance, we have done airports where the seating has been strategically located, particularly the comfortable seating around certain concessions and services for power, where people want to get drinks and relax. Seating draws people to concession areas. Our client at Columbus Airport saw a huge jump in revenues when we added power to the seating. There are ways to maximise the arrangement so it is comfortable and we are seeing some blending of holding and concessions.

How important is the need to be ‘green’ in airport seating? There are more and more LEED terminals, so seating can credit towards this certification. People are generally becoming more aware, and another area is air quality and the internal air quality that products release, so it is very important. We have always been an environmentally friendly company, and were one of the first manufacturers to introduce the moulded foam process, where there is minimal waste. It is also more durable. We replaced 20% of our petroleumbased foam using a soya bean derivative and, on top of that, we certified our beam seating. All our seating is CFC-free and low VOC, and certified to the emissions standards, to help with the air quality and to have more renewably sourced components. PVC-free upholstery is now available and all our aluminium and steel is recyclable and we also use other recycled materials.

What are the hottest markets on the planet right now for airport seating and why? I don’t want to point to one market as it seems to vary, but for us we have been very busy in South and Latin America. We outfitted the two São Paulo airports in Brazil for the World Cup and have done a lot of work in Mexico – it is very busy there.

What makes your seats stand out from the crowd? We are not the cheapest, but not the most expensive, and our seating is of very high quality, high design, made with the best materials in the business. High design, comfort and performance is my mantra – in a product that will last, backed up with top-notch service.

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AIRPORT SEATING Paul Williams, CEO, Zoeftig Group

Can airport seating ever be too comfortable – i.e. people don’t want to leave?

Is there any evidence that proves the positive impact good seating can have on passenger satisfaction levels at airports?

Comfort can be dialed into a design – and airports have different needs for different passengers. Where transit passengers are concerned, they need areas of comfort and relaxation, and it is down to the airport to select the right mix - with our assistance – of each type of seating. Where dwell time is much shorter, again, different finishes and comfort levels can be provided.

We have seen a lot of evidence recently of customer satisfaction scores plummeting where airports have removed areas of seating in favour of cafés and retail outlets. Passengers do not appreciate being pressured into sitting in restaurant/café areas and having to spend money in order to have a seat. There appears to be a strong correlation between inadequate or insufficient seating (i.e. airports getting the balance wrong) and customer dissatisfaction – ultimately leading to passengers defecting to other airports.

How important is the need to be ‘green’ in airport seating? It is very important. As a business, one of our key ambitions is continual improvement. In terms of our environmental performance, this means careful design, consideration and appropriate use of raw materials, production processes and packaging solutions. Product longevity has always been important to Zoeftig, and we also consider the environmental impact of a product at every stage of its development. As a business, we aim to deliver innovative products that combine exceptional quality, visual simplicity and reconfigurability, which naturally means reducing product and component complexity. As part of our product and packaging development process, we design out or limit the use of unnecessary and excess materials, and also design with disassembly in mind. For example, our latest flagship seating product has virtually halved shipping space requirements due to the clever way it is designed and packed. We also work with our suppliers and manufacturers to help minimise the environmental impact from the manufacture of our products and ensure that any waste is reused or recycled as far as possible. As a business, our aim is to become a more ‘local’ supplier to all of our customers around the world. We already have regional teams on three continents and manufacturers across the globe.

What are the current trends driving the latest developments in airport seating? In-seat electrical outlets – both mains and USB power – to meet the growing expectation from passengers for widely available, convenient device charging. Also, the mixing of more lifestyle type products (softer furnishings, for instance) with a combination of different gate seating arrangements such as curved rows, business clusters, etc mixed with traditional gate seating, to create a less sterile-feeling environment.

What is your biggest airport seating contract to date, and what did it involve? Our single biggest delivery to date has been to Kunming Changsui International Airport in 2011, which was over 14,000 positions. As well as having to overcome major logistical hurdles, with the airport on the other side of the world and located far inland, Zoeftig was required to provide a truly modular, reconfigurable solution that could be adapted to changing future needs. In keeping with the airport’s green image, the seating also needed to have excellent sustainable credentials. Our largest client to date has been McCarran International Airport in Las Vegas, to whom we have shipped more than 23,000 seats so far in total over the past decade.

How long does airport seating typically last? As a minimum, we offer a 10 year warranty on all our products. However, our seating is designed to outlive changing trends and airport reconfiguration requirements. Which means that our product will typically meet the airport’s requirements for longevity.

What makes your seats stand out from the crowd? Being a design-led company, we aim to make our chairs look and feel great, and different from those of our main competitors, while at the same time solving problems in terms of configurability, maintenance and cleanliness. We are one of the most innovative companies in the industry. We were one of the first to develop seatintegrated air conditioning and complete a major installation of seating with integrated power, for example.

If you only had 15 words to sum up what airports want from airport seating, what would you say? Great design, flexibility, variety of finish, easy to clean, maintenance-free, electrical power. AW

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E G N A H C X E G N I T E K R A M IRPORT

MARKETING

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CHANGI’S SUCCESS WITH CONNECTED TRAVELLERS In this age of increased connectivity and mobility, how exactly can airports tap into the connected travellers’ market?

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eyond meeting travellers’ expectations on social media, success is derived from a sophisticated ecosystem that can create an airport experience that travellers find worthwhile talking about on their networks. In this executive exchange, David McMullen, VP, SimpliFlying speaks with Ivan Tan, senior vice president for corporate and marketing communications, Changi Airport Group.

A lot of our business we cannot do on our own. Without good airline partners, a strong concessions and retail mix, passengers won’t want to spend time or money at the airport. For example, with carriers launching flights to Singapore, we help promote them on our social networks, and vice versa. The relationship is a symbiotic one.

Building an airport community of connected travellers

David McMullen.

Ivan Tan.

Get the brand right first, with airport partnerships McMullen: Passengers often consider airports to be a hassle. Aggravations of queues at check-in and security procedures tend to create negative reactions. How does Changi generate the positive and enthusing aspect of travel? Tan: Passenger or customer experience applies across the business spectrum, not just aviation. You need a good product – something that works, is of a good standard and that customers enjoy. Thereafter, word of mouth follows and a strong brand becomes stronger. Conversely, people will talk if things don’t work. Mistakes can be amplified on social media. So it’s a tricky balance. We work closely with security agents to strike a good balance between ensuring safety while not at the total expense of passengers’ convenience. McMullen: Indeed, it is extremely important to have the bases covered and show that efforts are being made. While some airports recognise they have a strong brand and big budget to harness social media to their advantage, there are also many others that entered social media half-heartedly and struggle to see the value. Tan: It is difficult, especially for airports, to have a successful social media programme on your own. Partnerships are absolutely crucial.

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McMullen: Since a few years ago, travellers have become more connected as they work and socialise on mobile devices while on the move. Changi Airport was one of the first few airports in the world to establish a social media presence. Tan: I’m sometimes asked why is Changi on social media? The honest truth is if we are not on it, someone will be on it for us. It is far better for us to be on social media to engage and manage these conversations. It has been quite amazing. We have discovered very strong advocates for Changi and we’ve built very good relationships with them. McMullen: And what do you pay attention to when you reach out to these connected travellers? Tan: People in general like the personal touch. To help extend a personal touch on social media, we have our staff sign off any tweet or post with their initials. We avoid template answers. McMullen: Changi has certainly done an exceptional job building a community that shares common values. When you manage to build trust with the audience over time, they are far more likely to respond as and when you introduce a new idea or retail offer. When planning content, airports need to relate it back to their business objectives and values. If you are Ryanair, it’s fine to be putting up promotions. But if you are not, don’t bombard with messages that are not representative of your brand values or objectives.

Social media challenges of a 24/7 airport McMullen: What implications do social media and the connected traveller have for Changi Airport? Tan: We see passengers becoming a lot closer to us even though the level of their expectations has gone up a lot as well. In this part

MARKETING

of the world, Twitter is not as commonly used as compared to in Europe and America. Even then, we easily get 10- 20 tweets that require attention each day. This certainly puts pressure on us to meet expectations. McMullen: Social media has definitely got many airports thinking whether or not their services need to be 24/7. Tan: In the case of Changi, we are a 24/7 airport. If an urgent tweet comes at 3am, it can’t be the case that we only respond at 10am. This has been one of the challenges we have to manage. McMullen: Given Changi is a 24/7 airport, how does Changi allocate resources for social media? Tan: The communications and responses on all our social media channels are managed in-house. These channels are monitored actively during waking hours. Due to the dynamic nature of Twitter, the Changi Contact Centre provides assistance to handle queries and complaints round-the-clock.

Social media shows insights into airport service quality, retail and operations McMullen: Sentiments within the travelling public can have an impact on ASQ. Do you feel social media has a significant input to how you improve the overall services at Changi? Tan: It certainly keeps us on our toes. We easily get 100,000 pieces of feedback a month from various channels. It’s a good gauge of how we are faring. We pay attention to trends and see what may be underlying causes for certain dissatisfactions. McMullen: Aside from engaging the connected traveller, what insights have you managed to tap into from social media that have implications for retail or operations? Tan: Our passengers are not homogenous. They come from diverse interest groups. For example, we have a huge plane-spotter community but we have others as well who are more interested in new F&B options at the airport. One of the challenges we face now is the customisation of content as much as we can to cater to these diverse groups. After posting something on Twitter

or Facebook, we look at the reactions and gather which offers or brand types generate the most interest. Social media is an interactive process, and kind of like a test bed. This helps us organise our promotions.

Facebook, Twitter – what else is necessary and when? Tan: Among airports, Twitter and Facebook are certainly most popular. What about other platforms like Pinterest and Google+? McMullen: Many airports tend to open accounts very quickly on several platforms without understanding the value of them. Pinterest for example, is effective in capturing imagination and inspiring people to travel. But first and foremost, airports should aim to cover the bases of customer service. There is no point inspiring people to travel if you can’t respond to important enquiries or deal with a crisis scenario. Tan: How about trends that you foresee may affect the way airlines and airports do marketing? McMullen: As a matter of fact, we are putting together our annual State of Airport Marketing trends report. One key trend that has developed significantly over the last year is crowdsourcing – i.e. ideas that are being developed by the passengers for the airport. Another trend is location-based customer service. While the idea itself is not new, we are finally seeing airports slowly developing better communications with passengers in the terminal. They are learning to pick up on negative situations and turning them around into positive sentiments. Such trends are particularly exciting and I hope to share more in our upcoming report. AW SimpliFlying has worked with over 50 airlines and airports globally to help them think differently about aviation marketing.

hange? the next Q&A excairportmarketingx in d re u at fe e se ion on Twitter # ould you like to Which airport wggestions or join the conversat Send us your su AIRPORT WORLD/JUNE-JULY 2014

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BAGGAGE HANDLING

The vital link Project management is the key to the smooth execution and delivery of a successful baggage handling system, writes Vanderlande’s Ariane Schipper.

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n complex baggage handling projects, effective project management is the vital link to ensure that objectives and customer expectations are met in full, in terms of time, cost, quality and performance. That doesn’t happen by itself: it demands a well structured and disciplined project organisation with the right combination of skills, resources and experience. Vanderlande has proved its project management capabilities with over 1,000 references at more than 600 airports worldwide. These widely differing projects range from small and mid-size regional airports right up to the largest international hubs, such as Amsterdam Schiphol, Paris CDG, London Heathrow, Hong Kong International Airport and many more. All these projects add up to a considerable global base of knowledge and experience, with project execution supported by a local presence in countries around the world. Successful execution isn’t just a question of ordering and installing. Project management provides the essential methods, structured approach and overview at every stage. The complexity of these airport projects, the diversity of the multiple cultures, many variables and parties involved make it important to choose a supplier with a proven capability and demonstrable experience in handling comparable projects. As a leading baggage handling system supplier and integrator, we regard project management as a prime responsibility to provide

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effective control over the design, function and performance of the baggage handling system. Proven excellence in project management has shown itself to be a key factor in ensuring customer satisfaction, and as a result the company’s reputation as a supplier.

Close customer partnership At every stage the emphasis is on close partnership with the customer, starting with initial analysis of the underlying operational processes and extending right through to total lifecycle support. This is based on core competences in all the required disciplines, ranging from system design and engineering, through supply chain management and procurement, right up to manufacturing to information and communication technology, system integration, customer services and support. Among the key factors for successful project execution are detailed planning of resources, personnel and materials, constant monitoring and review during execution, and good communication and teamwork within the project team, with the customer and with the other involved parties.

Importance for overall project success The importance placed on project management underlines the fact that successful execution is not just a question of ordering and installing.

BAGGAGE HANDLING

One of the important milestones in a well-managed project is the ORAT (Operational Readiness Acceptance Test) of the airport baggage handling system.

Project management provides the essential methods, structured approach and overview at every stage. It starts with the first contacts to define the customer’s needs and wishes, technical requirements, feasibility and constrains. Then it extends from supervision of the design process, system specification and action, through installation and testing right up to commissioning and handover for operation. Each stage of the process requires constant monitoring of progress against commitments in terms of time schedule, budget, quality, safety and system performance.

schedules and budgets, and to mitigate the impact of changes and external events. Co-ordination within the project organisation is also an important requirement, for example with internal specialists from all the different disciplines to ensure they are available as and when required. These contacts demand good communication with all the involved parties to ensure correct scheduling, allocation of tasks and timely availability of supporting materials and services. In many cases it will also be necessary to organise local labour and subcontractors, who may be needed for reasons of cost, flexibility or conditions calling for specified levels of local content.

A structured approach, but flexibility is essential No two airports are the same, so there are no ‘standard’ projects. Project management has to translate customer needs into the right solutions that meet all the applicable requirements and constraints. All the details and specifications need to be agreed with the customer right from the start, after which all the necessary steps need to be taken to ensure that these are met in practice. Customer requirements and external conditions may also change during project execution, so project management needs to have the flexibility to take timely and effective corrective action if and when needed. That means there is an important co-ordinating role of project management to deal with these changes in a way that causes minimal disruption and delays. These factors make a responsive and proactive approach essential, with the ability to act quickly and effectively when necessary.

Co-ordinating role with internal and external parties Among the most important tasks of project management is coordination with all the involved parties, both within the project organisation and outside it. External parties start with the customer and/or main contractor acting as principal, and also include suppliers and subcontractors as well as the relevant authorities at all levels – local, national, technical and supervisory. As well as having a proactive approach, project management must respond effectively to special situations. This is essential to maintain

Supervisory role in system integration, commissioning and handover Throughout the execution phase, project management needs to take timely action whenever necessary to identify and correct discrepancies, to prevent or deal with time and cost overruns, and to co-ordinate with third parties. In all these areas the project manager acts as the single point of contact between Vanderlande and the customer, with the ability and authority to intervene and to take the necessary action to deal with any issues that may arise. As well as a proactive approach, this requires the ability to respond effectively to situations that arise, to ensure schedules and budgets are maintained or to mitigate the impact of changes and other external events. This is an area where experience is a big asset, as the project manager is likely to have been in similar situations before and can call directly on colleagues for support.

The vital link to get the job done All these factors mean project management has a vital role to play in the success of each project. Their constant co-ordinating and communicating role ensures that project execution runs smoothly and predictably, yet has the necessary flexibility to deal with changes and special situations that arise along the way. At Vanderlande, the project manager is the vital link in getting the job done and ensuring customer satisfaction on completion. AW

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CUSTOMER SERVICE

The art of noise

Sound can be a valuable tool for ensuring safety and comfort at airports, writes Graeme Harrison.

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hen thinking of an airport lounge or a terminal building, what is the first idea that pops into your head? Chances are it’s an image rather than a sound. It’s unsurprising really – while many airports offer distinctive and striking visual impressions, most seem to boast the same soundscape of an unappealing and noisy environment. Yet sound plays a significant, though perhaps unconscious, role when we come to form our perceptions of a place. It can induce stress, evoke feelings of excitement, and even encourage us to relax – and it seems odd that it is often nothing more than an afterthought in too many building designs. To some extent, this blindness (or deafness) to the impact that sound has on us has become even more serious in the modern day. As populations continue to expand we’re living in a world that is steadily becoming noisier. Research from the World Health Organization has found that regular exposure to noise levels of just 50dB is enough to increase blood pressure, leading to a higher risk of heart attacks (as a point of reference, average noise level in a busy office or classroom can exceed 65dB). Then, once you get to hospital, the battle continues as the average hospital ward is still being recorded with noise volumes as high as 92dB – nearly double the acceptable standard. Conversely, silence is not the solution as the complete absence of noise is just as unnatural.

Sound trials Glasgow Airport trialled a scheme in which it played a generative soundscape in its departures terminal in an effort to try to sooth passengers in what can be a potentially stressful environment. In this case researchers found that travellers admitted to feeling more relaxed, even in cases where they hadn’t realised the soundscape was playing. And, perhaps more surprisingly, retailers noticed an uplift in sales during the trial, with some periods seeing an increase of nearly 10% in passenger spending. The Glasgow case study, however, is far from the only example of how sound can have a powerful effect on the local populace. On the other side of the world, in the town of Lancaster, California, after the local mayor installed a birdsong-based soundscape in the downtown area, reported crime dropped by 15%. And organisations such as the London Underground followed this lead and experienced similar gains with several tube stations, including Brixton and Clapham North, noting decreased levels of violence following the introduction of classical music.

However, sound is not simply a tool to keep travellers comfortable – it also plays a key role in ensuring the safety and security of the facility (as well as both staff and passengers alike). Airports are used by multi-national, transient populations that aren’t familiar with the layout of terminal buildings. During an emergency situation instructions need to be clear and easily intelligible – making no assumptions of knowledge on the part of the public. The traditional ‘ringing bell’ is at best outdated and at worst can be outright dangerous causing panic among passengers and failing to give adequate information to facilitate a safe and orderly escape.

Voice Evacuation Systems So what is the modern solution? Voice Evacuation Systems (VES), delivering clear, concise and targeted messages (often in multiple languages) hold the key. While the importance of building evacuations simply cannot be disputed, the manner by which the evacuation is carried out is certainly up for debate. We [Biamp Systems] commissioned some research to explore the public’s attitude to emergency evacuations and the findings were significant. A substantial portion of respondents – 35% – agreed that instructions delivered by an audio voiceover system would make them feel calmer. Being able to both calm people down and direct them away from danger is the goal of anyone responsible for evacuating buildings or facilities, whether it’s an office block, a hotel, or a multi-terminal airport. Perhaps the main benefit of a more sophisticated audio system is that it can provide real-time information to a building’s occupants, directing them along the safest exit routes. For example, in the case of an airport evacuation, passengers in one terminal may need to use the west exits, while at the same time, passengers in an alternative terminal need to be directed towards the east exits. In this instance, it is vital to have a system that provides zone management capabilities and allows location-specific information to be accurately communicated to people in varying areas or zones throughout the airport. So how far does the potential stretch? It’s clear that taking control of airport soundscapes can have a positive effect, avoiding the aggravation of uncontrolled noise and offering tangible benefits such as avoiding panic, calming passengers and even bumping up retail sales. What is exciting is that even small improvements to the sound design within a terminal building can bring about real value for airport operators – with this in mind, we must begin to design soundscapes with the same care AW and attention that is afforded to the interior.

About the author Graeme Harrison is executive vice president of marketing for Biamp Systems.

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HUMAN RESOURCES

PEOPLE

matters Lessons from Nelson Mandela

Dr Richard Plenty and Terri Morrissey provide their thoughts on: Courageous leadership.

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n the airport environment, there is a premium on reliable operations and keeping risks to a minimum. Unfortunately, life does not always go smoothly, and people in airport leadership roles sometimes have to face the challenges of uncertainty, change and turbulence. Periods of instability can arise through restructuring and reorganisation, political pressures, changing ownership, governance and leadership, commercial challenges and even crises involving physical danger and threat. To negotiate these times successfully puts intense personal demands on those in leadership roles at all levels. In particular, it requires courage – the ability, willingness and spirit that enables people to overcome their fears and face up to risk, danger, uncertainty and intimidation with self possession, self confidence, determination and resolution. Courage is needed when it is necessary to speak out and tell people the truth; to confront difficult situations and people; to persevere with a course of action in the face of problems and opposition, to build relationships and bridges with those who are not on your side; and to make decisions that are in the best interests of the organisation even where these involve some personal risk. The late, great, Nelson Mandela provided a brilliant role model of a courageous leader, demonstrating principled leadership, perseverance, patience, resilience and mental toughness in his drive to achieve goals of equality and freedom. He did so over many years in the face of adversity and personal danger.

He had respect for all, and was able to build deep relationships and gain support from all kinds of people, including those who had imprisoned him. Whilst prepared to take a tough stand where necessary, he demonstrated tolerance, forgiveness and compassion and was intensely pragmatic in his approach to problem solving. He was always looking for the ‘middle way’ – solutions which addressed the needs of all stakeholders. What can we learn from Nelson Mandela about ‘courageous leadership’? • Make sure you know what you stand for, communicate this clearly to others, and stand up for what you believe in – even if it is not the popular view • Act in a way that is consistent with what you say • Create an environment where there is mutual respect, co-operation and listening –where people are encouraged to speak openly • ‘Reach out’ to build relationships with a wide range of people – even apparent adversaries • Look for pragmatic solutions which preserve everyone’s interests – take the middle way • Be patient, disciplined and persistent Leadership is about ‘doing the right thing’ – and leadership without courage isn’t true leadership.

Miami-Dade Aviation Department (MDAD) has filled three key posts in its leadership team. Long-time MDAD executive Gregory Owens has been promoted to assistant director for business retention and development; Joseph Napoli is the new chief of staff and senior policy advisor; and Dan Agostino has joined the MDAD team as assistant director for operations. They join Hiram Barroso who was named as MDAD’s senior executive assistant to the director and deputy chief of staff late last year. Director, Emilio González, explains: “Like any large organisation, MDAD is only as good as the people who lead it, and I’m confident these four leaders will keep our department on an upward trajectory. “Each of them brings a unique set of skills and experiences to the table that will serve our organisation, our business partners and our passengers well.” Operator of New York JFK’s Terminal 4, JFK International Air Terminal, has named Gert-Jan de Graaff as its new president and CEO, succeeding the retiring Alain Maca. Long time Schiphol Group employee De Graaff has previously held senior roles at Amsterdam Schiphol and Stockholm Arlanda airports and has also worked for the Brisbane Airport Corporation, where the Schiphol Group is a 19% shareholder. Mineta San José International Airport has appointed Meenakshi (‘Meena’) Singh as its new deputy director of aviation, planning and development. In her role, she will oversee the Airport’s Capital Improvement Program (CIP).

About the authors Dr Richard Plenty and Terri Morrissey are directors of This Is... They can be contacted at info@thisis.eu

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PROJECT WATCH

Heydar Aliyev International Airport New state-of-the-art terminal opened at Azerbaijan gateway.

project details Location: Baku, Azerbaijan

Important developments:

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new, sleek and modern international terminal opened at Heydar Aliyev International Airport in Baku in October 2013, providing 60,000sqm of usable area, a capacity of 6mppa and 13 passenger boarding bridges. Azerbaijan Airlines (AZAL) wanted to create an international gateway to the country that would increase its airport’s capacity by 50%. Triangular in shape, with rounded off angles to reflect the Azerbaijan Airlines logo, the building measures 190m long and 280m wide. The creation of aviation design masters Woods Bagot, Buro Happold and Arup, with interiors by Autoban, the new terminal is arguably an architectural marvel. Built in a seismic zone, the four-storey structure provided a design challenge for all parties, particularly because it was contracted on a fast-track build time of just two years. When Arup designed the concept for the building, when possible the aim was to provide “generously proportioned spaces” lit with natural light. The design includes a tapered façade, giving the building a unique appearance. The organic shape allows light from the façade and roof to enter the building, while skylights form an integral part of the steel structure of the roof. The design uses a frame resistant system to allow for seismic forces and is constructed from a steel perimeter and underlying concrete structure. The construction of a new air traffic control tower was also part of the project. In addition, the existing terminal was refurbished: the old façade was stripped and replaced by metal mesh with additional insulation, a design more in harmony with the adjacent new terminal building. “Energy reduction and conservation is the cornerstone of the building services design,” enthuses Buro Happold’s project director, Paul Crayford.

“Various strategies, including daylighting control, tightly controlled infiltration and pressurisation strategies, dynamic system operations, energy recovery systems, along with variable volume controls, have resulted in a low carbon producing terminal, when benchmarked against other similar facilities throughout the region.” Sustainability carries through to the interiors, where Istanbul-based interior design firm Autoban created spaces from heavy-duty yet lightweight materials. “The environmental and sustainable design started with balancing the choice of materials and production techniques. For the floor covering of the entire terminal, we chose a quartz-based material that is both natural but also industrial at the same time,” says Seyhan Ozdemir, partner and designer at Autoban. Synthetic materials, such as plastic, were also avoided in keeping with the eco-friendly design, while low energy lightbulbs and efficient lighting systems prove key to sustainability. Lightweight materials were also used in the interiors to help tailor the design around its seismic zone location. To eliminate excessive construction and speed up fit-out time, Autoban designed a series of ‘cocoon’ semi-structures from a lightweight wood. The 6.2m to 10.5m high cocoons are used for a private check-in, luggage room, Internet information room, as well as café, restaurant, tea house, champagne and caviar bar, spa and beauty shop, music and book store, and a children’s play area. “They serve as interior landmarks while showcasing a compatible approach to the airport that is already built on the notion of mobility, they also strongly define our general approach to design,” notes Sefer Caglar, partner and designer at Autoban. AW

New terminal, revamp of existing one and new ATC tower

Completion date: October 2013

Principal companies involved: Woods Bagot, Buro Happold, Arup, Autobahn

Total investment: Undisclosed

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WBP NEWS

The latest news from ACI’s World Business Partners

Airport Retail Enterprises Contact: John Butts, director Address: 60 Dukes Wood Drive, Gerrards Cross SL9 7LF, United Kingdom Tel: +44 (0)1753 324 669 Email: john.butts@airportretail.com.au Website: www.airportretail.com.au Airport Retail Enterprises is one of Australia’s leading airport food and beverage retailers. The company operates over 40 outlets through a range of owned brands and franchised brands covering coffee, quick service restaurants, Asian food, fresh juices, sandwiches, licensed bars, table service cafés and fine dining restaurants. Airport Retail Enterprises is now seeking expansion opportunities in the UK and Europe.

London first!

Plaza Premium Lounge is to open its first lounge in Europe at Heathrow’s new showpiece Terminal 2. Its London offering will boast five luxury shower rooms, five en-suite, private relaxation rooms, a Wellness Spa with an exclusive treatment menu by British organic spa brand, ILA, a champagne bar, and a selection of food, drinks, tapas and freshly baked artisan breads. Business facilities including high-speed Wi-Fi, a selection of international newspapers and magazines, televisions and full flight information are also offered. Founder and CEO of Plaza Premium Lounge Management Limited, Hoi See Song, says: “We are absolutely thrilled to announce our arrival in Europe in conjunction with the launch of the new Terminal 2 at London Heathrow.”

Going international

AECOM Technology Corporation has been awarded a $17 million management contract in connection with the construction of a new International Arrivals Facility (IAF) at Seattle-Tacoma International Airport. It will provide comprehensive programme, project management and controls support services to assist with the project, which includes construction of a new Federal Inspection Services (FIS) facility and renovations of Concourse A and the South Satellite facility. “We are honoured to play a role in the new IAF programme, which will provide additional capacity for the Seattle-Tacoma International Airport to address the region’s increasing international passenger growth,” says AECOM chairman and CEO, John Dionisio. Sea-Tac’s new IAF facility is expected to cost around $300 million.

Call us Corgan

Corgan Associates has announced that it is now legally known as Corgan. “We shortened our official name to better reflect the Corgan brand. It’s simple, direct and has impact. It’s what people call us and it’s what we call ourselves,” says Bob Morris, president and CEO of the architecture and design firm. Although it is a small change, it is an important move for the strength of the Corgan brand, he said. The firm has expanded and now has eight offices across the US and internationally. It believes that the straightforward name provides a unifying brand platform for the firm’s growth. One firm, one vision, one culture – and now one name. “The shortened name also provides clarity and a consistency for us legally as we operate in multiple locations,” Morris adds. “Corgan celebrated its 75th anniversary in 2013 and this name change reflects that the firm has changed and grown throughout its existence,” he added. As part of Corgan’s new name, it has launched a redesigned and expanded website to better reflect the firm’s scope and expertise. It can be found at www.Corgan.com

Airport Solutions Ltd Contact: Debbie Riley, operations and safety director Address: Belvedere, Woodcote View, Wilmslow SK92DT, UK Tel: +44(0)7958 876855 Email: debbie@airportsol.com Website: www.airportsol.com Our team of specialist consultants are drawn from all areas of the aviation industry and have extensive experience of working with airports, airlines, regulatory authorities and governments throughout the world. Clients continue to benefit from this wealth of experience through an integrated approach to providing cost effective business solutions. Quality of advice, training, procedures and policies developed by Airport Solutions Ltd has been recognised by ICAO and ACI, who continue to work in partnership with Airport Solutions Ltd on many projects, from delivering and maintaining a fully certified airport to writing compliant and efficient procedures for all aspects of Aerodrome Safety and Security. Luxottica Group Contact: Bettina Danet Address: 2nd floor, Block E Mountainview Central Park, Leopardstown, Dublin, 18 IE- Ireland Tel: +353 129 23313 Email: info@luxottica.com Website: www.luxottica.com Luxottica Group is a leader in premium fashion, luxury and sports eyewear, with over 6,200 optical and sun retail stores in North America, Asia-Pacific, China, South Africa and Europe as well as a strong and balanced brand portfolio. Luxottica’s key house brands include Ray-Ban, Oakley, Vogue, Persol, Oliver Peoples, Arnette and REVO, while license brands include Bvlgari, Burberry, Dolce & Gabbana and Donna Karan.

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ENVIRONMENT NEWS

Going green Guest writer, Steven Ellis, discusses aviation’s de-icing challenges during the winter months and examines the current landscape for the use of environmentally sensitive fluids.

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here are a number of challenges presented to airports, airlines and service providers during winter months, requiring a huge investment of time and resources from those responsible for winter operations. Aircraft, runways, taxiways and gate areas need to be free from ice and snow to ensure the safety of passengers, and the safe take-off and landing of aircraft. The safety critical nature of keeping planes flying in harsh weather conditions means that careful planning is fundamental. The scale of the preparation needed is often underestimated by those not involved with winter operations in an airport. The process of preparing for the next winter season typically begins in April/May and spans approximately six months. This includes a review of the previous winter season for lessons learned, rehearsing snow plans, the training of ground handling teams and extensive checks of the de/anti-icing fluids and their storage conditions. In the run up to winter, it is incredibly important to maintain the correct levels of fluid stocks. This can be a logistical challenge, and timing is extremely important. Airports and airlines typically get no more than two days advance warning of severe weather conditions and so forward planning is key.

Environmentally sensitive de-icing The impact of aircraft and runway de/anti-icing fluids on the environment is receiving greater attention. Companies are under increasing pressure to manage their environmental impact and progressively more stringent regulations are being introduced. Storm and melt water run-off can become contaminated with de/ anti-icing fluids, moving to nearby waterways and placing huge demands on wastewater treatment infrastructure. Charges are then passed onto the airport and airline. When assessing the environmental performance of fluids, it is important that the full lifecycle of the product is considered. It is possible to take a bio-route when manufacturing fluids, for example, using corn sugar-derived glycol in place of glycol derived from a petrochemical route. Using a sustainable glycol in the manufacture of de/anti-icing fluid is set to have a dramatic and immediate impact on the carbon footprint and greenhouse gas emissions resulting from the aviation industry due to the large quantities that can be sprayed in a year. In the case of Kilfrost’s Type I fluid, DF Sustain, the product is readily biodegradable, has low toxicity, and its manufacture uses up to 40% less energy than standard glycol.

The future for de-icing Looking to the future, it is unlikely that de/anti-icing techniques will change as the combination of heat and chemicals is a proven and effective technique.

Other technologies such as infrared de-icing structures or the coating of aircraft so they become hydrophobic, repelling water and preventing the formation of ice, have yet to come to the forefront and may prove costly. Instead, the industry’s attention is turning to how fluids are applied to an aircraft, the infrastructure within airports and examining how the de-icing operation can be managed more effectively. More intelligent solutions are being developed with a view to intercepting run-off and managing its safe disposal. A multidisciplinary approach to investigating this is important. We expect to see a rise in designated de-icing pads, as opposed to de-icing at each gate, to improve efficiency and flight management. There are a number of advantages to this. Fluid can be collected within a small surface area, and the infiltration of storm water can be reduced. This in turn reduces the charges resulting from wastewater management. As customers demand cheaper, more competitively priced flights, airlines are trying to strike the right balance between cost efficiency and safeguarding the environment, without compromising safety. Managing the overspray of fluids can help to reduce the high costs of disposal. Fluids with better ‘sprayability’, combined with the right infrastructure within airports, allow airlines to manage the volume of run-off, reducing costs and the environmental impact. AW

About the author Steven Ellis is senior manager of Kilfrost’s Winter Division, which supplies environmentally-friendly de/anti-icing solutions to the aviation industry. Visit www.kilfrost.com for more information.

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TRAFFIC DATA

Traffic trends ACI projects a 4.6% increase in global passenger traffic for the medium-term, 2014 to 2018. This is a slight upward revision to our previous forecast and largely represents changes to supply-side factors. Carriers that have been cautious in recent years, are now more optimistic and adding capacity in the short-term – notably Europe, but even Asia-Pacific. However, carriers are less upbeat about other regions, where growth in capacity will remain unchanged or slow relative to past expansion.

Globally, on the demand side, medium-term world GDP growth is expected to remain unchanged from our last forecast: recent upward revisions to GDP forecasts for Europe and North America will be counterbalanced by downward revisions in other regions.

Stable growth in passenger traffic projected for the next 5 years

*URZWK UDWH

Medium-term passenger forecast by region: 2014 – 2018 Estimates YOY Forecasts 2013 2013 2014 2015 2016 2017 2018 2014-2018 164.8 0.8% 2.5% 4.7% 5.5% 6.2% 6.0% 5.0% Africa Asia-Pacific 1,834.5 7.3% 7.5% 7.3% 7.0% 6.8% 6.6% 7.0% Europe 1,659.5 2.7% 4.3% 3.5% 3.1% 2.9% 2.8% 3.3% Latin America & Caribbean 468.0 5.3% 5.5% 5.6% 5.8% 5.7% 5.6% 5.6% Middle East 278.4 9.7% 8.5% 7.8% 6.5% 6.1% 5.9% 7.0% North America 1,576.3 0.9% 1.7% 2.1% 2.0% 1.9% 1.8% 1.9% World 5,981.6 4.0% 4.8% 4.7% 4.5% 4.4% 4.3% 4.6%

A forecast prepared by TFAS (Traffic Forecast Advisory Services) A partnership between ACI and DKMA, TFAS offers world-class traffic forecasting services. We provide airport specific traffic forecasts for the purpose of infrastructure development, investments and business planning. Recent projects include traffic forecasts for Cusco Airport and Toronto Pearson Airport. For more information: Telephone: +41 22 354 07 54, Email: info@dkma.com, Website: www.dkma.com For 2013, preliminary passenger figures are sourced from ACI and, for the remainder of the forecast period, we developed regressions based on the most recent forecasts of economic growth and included adjustments based on carrier development.

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The last word Airport World gets up close and personal with TIACA’s secretary general, Doug Brittin.

Factfile

What is the outlook for air cargo going into 2014? Moderate growth but no substantial upturn. Obviously, some markets will make faster gains than others. We are starting to see some sustainability in the small rate of growth and that is welcome. However, the market expects to see a continued downward pressure on yield. This is a both short- and long-term concern because as an industry, we have to continue to invest in key areas such as modern aircraft fleets, e-commerce, security, compliance and training as well as development. With 35% of world trade by value moving by air, global and regional businesses and consumers need our industry to continue to grow and prosper in order to fulfill its vital role.

What are TIACA’s priorities in the year ahead? We want to be the platform leader for the air cargo industry on all key issues: safety, security, market access, customs and trade facilitation, e-commerce and the environment. We want to continue to grow our membership globally, especially with small and mid-size companies representing regional interests. We will be increasing our collaboration with various government and regulatory bodies, such as ICAO, the World Customs Organization and the US Department of Homeland Security, among others.

What structural reforms would you like to see? The key is collaboration. Governments must first recognise the vital role our industry plays in national and international

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Name: Doug Brittin Nationality: American Job title: Secretary general, The International Air Cargo Association (TIACA) Time in aviation industry: 34 years Best known for: His pioneering work with the TSA Little known fact: His love of transportation has also seen him work in the road and rail sectors

economic development and employment and then understand the importance of engaging with us as part of the legislative process. There also needs to be much more cross-government co-ordination and global standards development on areas such as air cargo security and aviation emissions. We do not want countries or economic trading blocs creating and enforcing unilateral standards.

What is your response to the ICAO agreement on aviation climate emissions? We see it as a major breakthrough in the development of global standards for the industry, and urge ICAO and its member states to ensure they complete the technical work on this leading up to the next ICAO General Assembly in 2016 so we can achieve the ultimate goal of

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an aviation carbon neutral growth strategy by 2020. Getting 191 countries to agree to develop a global market-based measure for emissions is a hugely important milestone, but there is now a great deal of work to be done by each nation.

What new technology has had the biggest impact on the air cargo industry in the past decade? The expansion of cargo screening technology is one area that stands out. It is actually more interesting to look at how technology is going to improve what we do going forward. The e-freight and e-AWB initiatives are already completely removing paper from some air cargo supply chains and there is a groundswell of support for this, driven by the

potential gains in efficiency and cost reduction. Technology is now critical to the air cargo industry. Without it, air cargo will lose its key differentiator: speed. Today, we need to move information even faster to allow for advance analysis of data as part of the air cargo security process, for example, and that relies on efficient technology.

What were your highs and lows of 2013? The biggest highlight for TIACA is the growing collaboration with industry regulators, such as the agreement to solidify our co-operation with ICAO and the WCO. We would have liked to have seen a higher rate of growth for the industry in 2013, but nonetheless, we have seen a steady level of improvement and we expect that to continue.

AW