airport world, issue 5, 2013

8/14/2019 Airport World, Issue 5, 2013

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October–November2013

In the spotlight: Information Technology

Airports: Dubai, Las Vegas, Burgas & Varna

Interviewed: The FAA’s Michael Huerta

Plus: Security, retail & airfield safety

IT: The journey

has just begun



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AW

OPINIO

How did we get to October so quickly?It seems like only yesterday I

was planning our first issue of

the year and now, I’m increasingly

being asked for my editorial plan

for 2014!

There will be plenty to look forward to in

2014, I can assure you, but we’re not there

quite yet as there are still three major ACI

events and inter airport Europe to go before

year-end and, of course, this Information

Technology (IT) themed October/November

issue to read at your leisure.When it comes to IT, it is almost

impossible to overstate the impact that

advancements in technology have had on all

our lives over the past 30 years.

Who could have guessed in 1983, for

example, that three decades later 75% of

the world’s population would have [access

to] a mobile phone (according to The World

Bank), and little thing called the Internet

would transform the way we live and

do business.Ever wondered why all those telephone

kiosks in airport terminals have vanished?

No, well that’s exactly my point, as in this

era of the ‘connected traveller’, nobody uses

them anymore, as we all have our own

mobile phones and often several other

communication devices with us.

And as you can read in this issue, there

is so much more to come in terms of aviation

and the airport environment.

We discover more about the benefits of

collaborative decision-making (CDM); mobileadvertising; near field communication; and

how IT can be used to excite the customer

and boost retail revenues.

And to those airports out there that onlyupdate their websites once or twice a year,

take a look at the feature on page 44 and see

what some of the experts think about that!

We also have some IT news of our own, as

we shall shortly launch a ‘responsive’ website

for better viewing on smartphones and

tablets, and by year-end, we’ll unveil the first

ever Airport World app, which we hope will

make it easier and more convenient for you to

read your favourite aviation magazine –

whether sitting in the garden at home having

a coffee, waiting for a flight at the airport,or climbing Kilimanjaro!

So, if you are reading this online in

November/December and finding it quick and

easy to view the IT articles and other main

features in this issue, please let us know.

The issue also contains airport profile

features on Dubai World Central, Las

Vegas–McCarran and Bulgaria’s Black Sea

gateways, while our regular Airport Exchange

column features Warsaw Chopin.

Finally, we learn more about FrankfurtAirport’s customer service programme;

launching retail operations in emerging

countries; perimeter security; and health

and wellbeing.

It seems crazy now, but looking back to

my teenage years in the late 1970s/early

80s, I can clearly remember being almost

spellbound by the first TV remote controls,

being dumbstruck by the invention of

the digital watch and laughing out loud

when someone suggested that we’d all

have our own personal computers in thenew millennium.

What’s that expression again? Time flies

when you’re having fun!

Editor, Joe Bates, contemplates

all things information technology,

including the launch of a new

‘responsive’ Airport World

website and app.

Printed in the UK by

The Magazine Printing Company

using only paper from FSC/PEFC suppliers

www.magprint.co.uk

Digital

age



http://www.dubaiairports.ae/



3 Opinion

10 News

12 ACI News

15 View from the top

16 The Dubai phenomenonDubai Airports CEO, Paul Griffiths, talks to Sarah McCay about his plans for

Dubai World Central–Al Maktoum International Airport ahead of the launch of

passenger flights this October.

20 Bigger and brighter Caroline Cook finds out how Fraport’s Bulgarian venture is boosting the performance of its

Black Sea airports.

22 Headline act

What has new aviation director, Rosemary Vassiliadis, got in store for Las Vegas–McCarran?Alex Hannaford reports.

27 Future thinkingAssistant director for facilitation & IT, Arturo Garcia-Alonso, contemplates the importance of IT

and the launch of ACI’s Airport IT Security Programme.

28 Enabling growthTechnology will be the key driver for the ‘airports of the future’, writes ARINC Asia-Pacific’s

senior director for aviation and ground, systems solutions, Jeff Amiri.

Issue 5 Volume 18October–November2013

Volume18Issue5

www.aci.aero

Inthe spotlight: InformationTechnology

Airports:Dubai,LasVegas,Burgas&Varna

Interviewed:The FAA’sMichael Huerta

Plus: Security, retail & airfieldsafety

T

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C I L I T

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I R P

R T

R L F

R U

R Y - J

U R Y 21 1

I R P

R T

R L C T

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IT: The journeyhas just begun

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C I L I T R

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In this issue

CONTENT



http://www.beumergroup.com/



CONTENT

30 Going mobile

Ever-inventive brands are using smartphones to connect with passengers at airports and onalmost every stage of their journey, writes Jeremy Corfield.

32 Power to the peopleAlaistair Deacon discusses the importance of enhancing the passenger experience through

collaborative decision making.

36 Change for goodEric Miart provides a progress report on Airport Collaborative Decision Making (A-CDM) and

discusses the reasons for its comparatively slow uptake outside of Europe.

38 Bank on dataBetter analysis of sales data can help airports boost retail revenues and customersatisfaction levels, writes John de Giorgio.

42 Fast timesDoes near field communication (NFC) hold the key to faster passenger processing and

delivering the dream of seamless travel? Renaud Irminger shares his insights.

44 Web wondersBarry Mansfield reports on the latest in airport web design. How can sites be improved to

boost customer communication, the airport experience and operator revenues?

48 Thinking outside the box Adopting a multi-channel approach to retailing will help concessionaires maximise sales

revenues in the years ahead, write Andy Morrey and Sophie Albizua.

50 Airport Marketing ExchangeIn the first of a regular series of exchanges, David McMullen catches up with Przemysław

Przybylski of Warsaw Chopin Airport (WAW) to exchange ideas and explain why maximising the

social media potential of your airport begins with having a clear plan.

52 One visionAirport World rounds-up the latest airfield safety news from across the globe.



UNNING HEAD

56 Don’t worry, be happy!

Stuart Bowden discovers more about Frankfurt Airport’s innovative‘Great to Have You Here’ customer service programme.

58 Lands of opportunity Duty free expert Paul Topping provides some insight into the challenges

and opportunities of launching retail operations in emerging markets.

62 Rest assuredFrom enchanted gardens to yoga rooms and health stations, Sarah

McCay takes a look at the latest health and wellbeing initiatives being

introduced at airports around the world.

64 First line of defenceJohn Romanowich discusses best practices for airport perimeter security.

66 Relief effortDr Teo Babun and James Smith provide a special report on the success of

an initiative designed to make airports in the Latin America & Caribbean

region more resilient to extreme weather and natural disasters.

69 Project watchJomo Kenyatta International Airport.

71 ACI’s World Business Partners74 Environment news

76 The last wordFAA Administrator, Michael Huerta, talks to Joe Bates about leadership,

budgets, safety and the development of the US airport system.

78 ACI traffic trends

ONTENTS



http://www.interairport-adb.com/



Mayor scrapsMidway privatisationFor the second time in five years the planned

privatisation of Chicago Midway has collapsed at the

eleventh hour – this time due to one of the two

remaining bidders dropping out of the race for a 40-yearlease to operate the gateway.

Chicago Mayor, Rahm Emanuel, pulled the plug on

any potential deal on September 5 after the Industry

Funds Management/Manchester Airport Group

consortium dropped out of the bidding, citing valuation

issues for the decision.

Their decision left only the Macquarie Group/Ferrovial

consortium as the sole remaining bidder.

“The mayor has decided not to move forward with the

Midway leasing agreement,” said the mayor’s

spokeswoman, Sarah Hamilton.“We set a high bar that required a new level of

taxpayer protection. The companies did not meet that

bar and could not make an offer that would meet what

taxpayers deserve.”

A previous attempt to lease it to privatise Midway

fizzled out in 2009 after winning bidder MIDCo –

comprising Citi Infrastructure Fund, Vancouver Airport

Services (YVRAS) and John Hancock Life Insurance

Company – failed to secure the financing for the

proposed $2.52 billion, 99-year deal.

EWS

News in brief Somaliland, a self-declared republic in east Africa,has completed a renovation of the runway at EgalInternational Airport, which serves its ‘capital’Hargeisa. The gateway now boasts a revamped2.4km runway and expanded terminals.

Cintas Corporation has named Tampa InternationalAirport as a finalist in its 12th annual ‘America’sBest Restroom’ contest. Its toilets were renovated

earlier this year as part of the airport’s $30 millionMain Terminal Modernization project. Designedto provide a “bright, clean atmosphere with afresh, Florida feel”, each restroom has a wall-

sized image of flowers, birds, fish and other nativeFlorida wildlife. The airport quips: “Our facilities arespecially designed for folks who have to go whenthey are on the go.”

Warsaw Chopin Airport’s new airport hotel hasopened for business. Located 800 metres from thegateway, the three-star Hampton by Hilton WarsawAirport Hotel boasts 116 rooms and onsite parking

for 100 vehicles.

Dufry has signed a master concessionaire agreementto operate duty free shops at Sri Lanka’s newly

opened Mattala Rajapaksa International Airport.The gateway will be equipped to handle 5mppawhen its second phase expansion programme iscomplete in 2016.

The rededication ribbon-cutting ceremonyfor the historic airport terminal building atthe New Orleans Lakefront Airport took placeon September 28. Devastated by Hurricane

Katrina in August 2005, this original structureof classic Art Deco design, completed in 1933,was one of the first of its kind to operate in theUnited States.

Trillion-dollar industryThe Air Transport Action Group (ATAG) has released a report showing that

aviation supports 26.8 million jobs and $1.1 trillion in GDP across the

21 economies in the Asia Pacific Economic Cooperation (APEC) region.

According to its Aviation: Benefits Beyond Borders APEC report, there are

857 commercial airports in the region’s air transport system.

Paul Steele, ATAG’s executive director, commented: “The breadth and

importance of air transport to economies in APEC is impressive. The fact that,

ranked by GDP, the region’s air transport industry would be the fifth largest

APEC economy shows how large the industry is.”

The report estimates that by 2030, air transport will support up to

45 million jobs and $3.2 trillion in GDP. However, it cautions that if growth

were just one per cent lower each year, up to eight million of those jobs

would remain uncreated.

Steele continued: “Aviation is a great facilitator and catalyst for

economic growth, but it needs to be growth in a sustainable and systematic

way. We must ensure that the industry and governments work together to

build the needed infrastructure to facilitate this growth. But any new

infrastructure must fit in to a broader strategic plan.”

Out of this worldHouston Airport System (HAS) has unveiled its vision for the future for Ellington

Airport (EFD) by releasing conceptual renderings of a possible Spaceport.

The designs capture various elements of the project, including a terminal, an

aviation museum and the accompanying industries that are expected to arrive,

should Houston become the United States’ ninth licensed Spaceport.

Houston Mayor, Annise Parker, stated: “We believe a licensed Spaceport inHouston would not only serve as an economic generator for the city but would also

enhance Houston’s well-deserved reputation as a leader and key player in the

aerospace industry.”

If the licensing is secured, HAS would proceed in establishing the infrastructure

required to accommodate enterprises such as space vehicle assembly, launching of

micro-satellites, astronaut training, zero gravity experimentation and space tourism.

Aviation director, Mario Diaz, commented: “This is not a conversation based

on science fiction or futuristic projections. This is a conversation about how

Houston can access and enhance an industry that is already well-established and

growing exponentially.”



NEW

Malcolm Johns will replace Jim Boult asChristchurchInternational Airport’s CEO at the beginning of2014. Johns is an experienced businessman andcurrently the chief executive of passenger transportnetwork, InterCity Group. He is also deputy chair ofTourism New Zealand.

Manas Airport in Bishkek has opened animmigration facility for economic migrants this

month as Kyrgyzstan’s airport operator chasesambitious growth targets. Kyrgyzstan is aimingto develop its air capacity under a NationalDevelopment Strategy for 2013-17.

Dublin Airport has passed a major milestone inits online communications by topping 40,000followers on Twitter. In a recent survey of 613airports on Twitter, Dublin Airport was rankedbehind only Heathrow, Gatwick, ManchesterAirport, Simon Bolivar Airport in Venezuela andLondon City Airport.

Hamburg Airport now hosts Germany’s only

Victoria’s Secret outlet. The store is focusedon skin and body care products and travelaccessories such as handbags, passport wallets,scarves and sunglasses.

Kim Aguirre is the new director of aviation at MinetaSan José International Airport. Assistant directorof aviation since 2008 and the gateway’s CCO since2011, she takes over from Bill Sherry who is retiringafter eight years.

Dr Stefan Schulte’s term as CEO of Fraport, due toend in August next year, has been extended untilAugust 2019. Schulte, who has led the German

airport operator since September 2009, has beengiven an early renewal on his contract to ensurecontinuity, according to Karlheinz Weimar, chairmanof the supervisory board.

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

Surplus saleDenver International Airport (DIA), Colorado, has raised $155,200 after

selling 17 pieces of airport maintenance and operations equipment.Several Colorado public use airports purchased equipment

ranging from dump trucks to snow ploughs at reduced prices at the

sale this summer.

The DIA Surplus Equipment Program has helped more than 20

Colorado airports purchase over 80 pieces of airport-related heavy

equipment since 2005.

Michael Huemann, manager of Leadville-Lake County Airport – which

bought a sweeper/scrubber, a generator and a 10ft dump truck with snow

plough – commented: “The equipment we have purchased has saved the

county thousands of dollars and has increased the amount of time our

runway is open during the snowy winter months.”

Goodwill hunting The Allegheny County Airport Authority has announced a pilot programme for

archery-only hunting in designated zones on Pittsburgh International property.Roughly 2,362 acres of land, separated from the airport by a fence line

and interstate highway, will be made available for authorised hunters.

Hunters will be cited for trespass if they are found to be hunting outside

the designated zones on the airport property.

Limited to the autumn archery deer hunting season – which also

overlaps with the turkey season – the programme aims to benefit the

community, manage wildlife near the airport and reduce motor vehicle

accidents on the interstate.

Pennsylvania state Rep, Mark Mustio, enthuses: “This is a good example

of government at several levels listening to the concerns of the residents and

addressing those concerns.”

Jewel in the crownChangi Airport aims to woo tourists and transit

passengers with Project Jewel, a multi-purpose

building featuring a garden and giant waterfall.

Under plans from a group of designers, led by the

architect Moshe Safdie, known for Singapore’s Marina

Bay Sands resort, Project Jewel will occupy an area of

30,500sqm by Terminal 1.The design includes check-in counters, a lush

garden and a waterfall descending from the glass and

steel structure’s roof.

Changi Airport Group (CAG) is working on the

concept with CapitaMalls Asia, one of Asia’s largest

listed shopping centre developers.

In combination with work on Terminal 4, due

to complete by 2017, it will raise Changi’s handling

capacity up to 85 million passengers a year,

claims CAG.

Lee Seow Hiang, CAG’s CEO, enthuses: “WithProject Jewel, we are pleased to be developing an

exciting product that will swing travellers to choose

Changi Airport, and Singapore.”

Expected to be ready by 2018 and linked by

walkways to the terminals, Project Jewel will be built

on the site of a open air car park next to Terminal 1.

Making an impressionSir Seewoosagur Ramgoolam International Airport (MRU) in Mauritius has inaugurated a

new $305 million terminal, raising its capacity to 4.5mppa.

The 56,900sqm terminal is the largest piece of infrastructure ever built in Mauritius,according to Aéroports de Paris Management (ADPM), the subsidiary of ADP, which oversaw

the project.

Constructed with 140,000 tonnes of steel, the terminal is intended to give an impression

of lightness through a roof modelled on the ravenala palm, a tree found across Mauritius.

ADPM CEO, Jacques Follain, says: “The terminal doubles the airport’s capacity and will

play a crucial role in the economic development of Mauritius.”



T he Airport Excellence (APEX) in Safety Programme was developed by ACI

in response to the aviation and stakeholder communities’ call-to-action

to improve aviation safety worldwide.

It helps airports identify and mitigate aviation safety vulnerabilities

through peer review missions, education, mentoring and best practice

guidance to enhance the safety of aviation operations at aerodromes.

APEX, by its very nature of collaborative interaction between airport peers,

promotes frank and open discussion on challenges faced by local operators,

and helps to identify relevant solutions implemented by Safety Partners

within their operations abroad.

The Programme complements the ICAO Global Aviation Safety Plan and

other industry initiatives to ensure a holistic and coordinated approach thatoptimises outcomes for the benefit of all.

Airport Safety Partners are at the very heart of ACI’s APEX in

Safety Programme. They subscribe to the philosophy of ‘no airport

left behind’ and are leaders in the promotion of safety across

geographical boundaries.

What are the benefits for safety partners?

• Staff development: Unique opportunities to recognise high

performing staff and provide them with a learning environment

that promotes knowledge transfer and knowledge acquisition.

• Route partnership: Ensuring that best practices are integral to the

start and end of a journey.• Host Airport mentoring: Safety Partners often form bonds with

host airports that extend beyond the APEX review to include

reciprocal visits and partnerships.

If the programme is to continue growing and responding to

industry needs, APEX must increase the number of Safety Partners in

all world regions.

In fact, the last few months have proven to be very positive with

18 airport operators signing up, or formally committing, to the APEX

in Safety Programme.

Especially encouraging is the response from the ACI North America

(ACI-NA) region, which accounts for 50% of new growth. In addition to

this tremendous and positive response from ACI-NA, we will continue

reaching out to the global community of airports to enable this momentum

to continue in the coming months and years.

What do you have to do to become a Safety Partner?

Becoming a Safety Partner is easy and the commitment brings

many rewards. Safety Partners are simply requested to provide an

airport safety professional to take part in two APEX Safety Reviews

(each typically lasting one week), on mutually agreeable dates, in a

two-year period.

No costs are associated with serving as a Safety Partner, as the Host

Airport assumes both the travel and living expenses.

In return, Safety Partner professionals benefit from unique

professional development and networking opportunities and the status

of the Safety Partner airport is further elevated by virtue of its leadership

in the area of safety best practices.

CI WORLD NEWS

Become an APEX in Safety Partner todayVisit the website and sign up at www.aci.aero/apex

Christopher Miles, assistant director, APEX in Safety, provides an update on ACI’s globalsafety programme.

World in motion

ACI World director general, Angela Gittens, at the

launch of the APEX in Safety programme in Calgary.



ACI WORLD NEW

ACI offices ACI World

Angela Gittens,

Director General

PO Box 302

800 Rue du Square Victoria

Montréal, Quebec H4Z 1G8

Canada

Tel : +1 514 373 1200Fax : +1 514 373 1201

[email protected]

www.aci.aero

ACI Fund for Developing

Nations’ Airports

Angela Gittens,

Managing Director

c/o Geneva,

Switzerland

Tel: + 1 514 373 1200

Fax: +1 514 373 [email protected]

ACI Asia-Pacific

Patti Chau,

Regional Director

Hong Kong SAR, China

Tel: +852 2180 9449

Fax: +852 2180 9462

[email protected]

www.aci-asiapac.aero

ACI Africa

Ali Tounsi,

Regional Secretary

Casablanca, Morocco

Tel: +212 619 775 101

[email protected]

www.aci-africa.aero

ACI Europe

Olivier Jankovec,

Director General

Brussels, Belgium

Tel: +32 (2) 552 0978

Fax: +32 (2) 502 5637

[email protected]

www.aci-europe.org

ACI Latin America & Caribbean

Javier Martinez Botacio,

Director General

Quito, Ecuador

Tel: +593 2294 4900

Fax: +593 2294 4974

[email protected]

www.aci-lac.aero

ACI North America

Deborah McElroy,

Interim President

Washington DC, USA

Tel: +1 202 293 8500

Fax: +1 202 331 1362

[email protected]

www.aci-na.org

ACI represents 573 members operating 1,751 airports in 174 countries and territories, which in 2012 handled 5.7 billion passengers, 92.5 million

tonnes of cargo and 79 million aircraft movements. ACI is the international association of the world’s airports. It is a non-profit organisation,

the prime purpose of which is to advance the interests of airports and promote professional excellence in airport management and operations.

March 12-14

ACI Airport Economics

& Finance Conference

& Exhibition

London, UK

2014 2014

May 26-28

ACI World Annual

General Assembly

ACI Asia-Pacific

Regional Conference

Seoul, South Korea

2013

November 2-5

ACI Latin America &

Caribbean Regional

Conference &

Exhibition

Montevideo, Uruguay

2014

April 29-30

ATAG Aviation &

Environment Summit

Geneva, Switzerland

2013

October 19-23

ACI Africa Regional

Conference &

Exhibition

Lomé, Togo

ACI events



http://www.axis.com/imageuseability



Over the last twenty years, we have witnessed the

transformation of the airport industry as structural and

ownership changes have brought new stakeholders andbusiness models into the industry.

Competition between airports has reached new he ights

and the flying public is demanding a higher level and greater

variety of services.

Regulators, too, are paying closer attention to the quality of

service delivered at airports. Indeed, regulators worldwide are

increasingly requiring airports (either run by the public sector, under

concession contracts or fully privatised) to benchmark the quality of

the services provided against other international airports.

In light of the above, ACI developed and launched the

Airport Service Quality (ASQ) initiative in 2006 to help airports

improve the quality of their services to the travelling public. Sincethen, the ASQ survey has become the airport industry’s standard

for measuring customer satisfaction with 281 participating airports

from around the world, including more than 75% of the world’s

100 top airports.

The ASQ initiative comprises four core programmes that provide

key customer survey and management information: ASQ Survey,

ASQ Performance, ASQ Assured and ASQ Retail.

It shows airports how to get maximum return from their

investment in service delivery. It also allows airports to create

performance guidelines and set up incentive programmes, with the

goal of maximising passenger satisfaction and spend.The ASQ Survey is the flagship programme which consists of a

customer satisfaction survey measuring passenger perception of the

quality of services provided by an airport, and provides insight into

the average passenger’s “on the day” experience.

The programme allows participating airports to benchmark their

results with other airports in their selected panel, as well as with

airports in their size category, region and globally.

The ASQ Survey uses the same questionnaire, methodology and

sample plan principles at all participant airports, which ensures

comparable results.

While each participating airport receives the data from all

other participating airports (allowing it to identify best practiceand to measure its own performance precisely), all participants

are contractually bound to preserve the confidentiality of the

data and results.

The survey fieldwork is administered by the participating airport

and the completed survey forms are centrally processed.

The ASQ survey is based on a self-completion standard

questionnaire, which is distributed to passengers in waiting areas

at departure gates of pre-selected flights, according to the sample

plan defined for each participant airport.

The questionnaire – translated into 35 languages with additional

languages translated if needed – is designed for airports of all sizes

through three different versions of the ASQ Survey, namely: ASQMain, ASQ Regional and ASQ Unique.

The Main programme runs for a full calendar year, with

surveys undertaken in each of the four quarters of the year.

The Regional programme is specifically designed for airports

with fewer than two million passengers with two survey periods:

summer and winter. Lastly, the ASQ Unique Survey represents a

single study in a particular period of time, using the same ASQ

standard questionnaire.

This version is especially designed for airports that want to take

a snapshot of their performance possibly with a view to participating

in ASQ Main or ASQ Regional.ASQ Survey covers 34 key service areas and includes eight major

categories such as access, check-in, security, airport facilities, food

and beverage providers, and more. All participating airports use the

same survey questions, which creates an industry standard set of

responses. All participating airports see the ASQ survey results for

all other participating airports.

Airports have found that high customer satisfaction is good

business. The information ASQ provides allows airports to optimise

investments and initiatives; monitor performance of suppliers; share

best practice with other airports; assess the performance of

management; and market their airport more successfully.

If you want to find out more about ASQ, visit ACI’s website atwww.aci.aero/Airport-Service-Quality or contact Rafael Echevarne,

director of economics and programme development, at

[email protected] AW

Director general, Angela Gittens, reflectson the success of ACI’s Airport ServiceQuality (ASQ) programme and whyincreasing customer satisfaction at your airport is good for business.

View from

the top

ACI VIEWPOINT



RPORT REPORT: DUBAI

Dubai Airports CEO, Paul Griffiths, talks to

Sarah McCay about his plans for Dubai World

Central–Al Maktoum International Airport aheadof the launch of passenger flights this October.

The Dubaiphenomenon



If any place on earth has the X-factor, surely it is Dubai, which has

grown from a small trading post in the Gulf to one of the world’s most

successful aviation hubs in less than 30 years.

For years, Dubai has arguably led the way for aviation growth in

the Middle East, and with Dubai World Central–Al Maktoum

International Airport (DWC) set to open to passenger flights in October,

its phenomenal growth over the last decade shows no sign of

slowing down.Dubai International Airport (DXB) has seen record growth in

passenger and cargo figures year-on-year.

Indeed, passenger traffic hit 32.6 million in the first half of 2013,

making it the busiest six months in the airport’s history, and air cargo

volumes rose 10.2% to 1,196,894 tonnes during the same period.

As a result, plans are afoot to increase DXB’s capacity to 90 million

passengers per annum by 2018.

For any other destination, this would seem like a phenomenal feat,

but not for Dubai. The city that has risen from the desert to become a

tourism and business metropolis in a matter of decades is about to

open a second international airport for passenger traffic.An even bigger international airport, tipped to handle more than

160 million passengers and 12 million tonnes of cargo annually once

fully operational, Dubai World Central will commence passenger flights

in October, when it begins its quest to become the busiest airport

in the world.

A fresh approachAccording to Paul Griffiths, CEO of operator Dubai Airports, the plan is

to completely reinvent the airport experience at DWC.

“We want to take a fresh view of the entire airport product,” he

enthuses. “Most airports today have built on the legacy processes of

the 1940/50s. Our aim is to have an airport like no other that will havea product and customer experience like no other.

“We want to make the passenger journey much shorter. We aim to

take the entire process and cut out as many steps as possible. There are

automated systems for all the legacy processes, such as check-in,

passport checks etc.

“The passenger can check-in from their home or office, ensure their

baggage is tagged and ready, have their passport details and profiles

checked so their security status is already predetermined, all before

leaving for the airport.

“The aim is to converge a lot of the legacy processes and make the

whole airport process pretty invisible but no less thorough.”The majority of DWC’s passenger movements will be transit

passengers, and again, the aim is to make transfer times shorter.

“This makes the end to end journey more attractive,” points out

Griffiths, who uses Emirates’ Newcastle to Sydney service as a prime

example of how Dubai connects the world.

“Before the direct Emirates flight you had to travel to Heathrow and

then via Bangkok or Singapore, so two intermediary airports. Now, one

airline flies direct, with a short transit in Dubai.

“This is a huge time saving and we hope that will be the case for

many more destinations.”

Faster turnaroundsGriffiths is also looking at streamlining the airside experience.

“At the moment, the way the airport turnaround is managed is a

bit fragmented,” he remarks.

His aim is to have one vehicle to turn an aircraft around in a short

time. There will be a complete review of the logistics behind this, but

the economics are clear: the shorter time spent on the tarmac the

better, both for the airport and for the airline.

Air traffic control capacity is another area Griffiths and his team are

looking at in great detail.

“It’s no good having slick operations on the ground if you don’t have

it in the air,” he muses. “We are looking at technical enhancements togive us greater reliability in the air traffic control process.”

The United Arab Emirates’ newest gateway, which officially

opened to cargo flights in June 2010, boasts a 92 metre high air

traffic control tower.

Customer comfort Griffiths is confident that passengers will particularly like what they find

post-security, where cinemas, gyms, swimming pools and health and

beauty services are all on offer.

“There is an opportunity to take the service beyond duty free and

integrate retail, entertainment and food & beverage,” he says.“You can take everyone as an individual who might want to use their

leisure time in a different way. You create more choices but make them

cost effective.

“In F&B, we are now working to reflect the international profile of

our customers with a load of international brands. When we opened

Concourse A [at DXB] in January, we were able to go out to the world

with a number of brand names. Our product service has to reflect our

global market.”

Target busting Phase 1 of DWC includes a single A380 compatible runway and

64 remote aircraft stands. Once completed, DWC will have up to fourpassenger terminals and five parallel runways, each 4.5km long.

Initial passenger capacity at Dubai World Central is 5mppa, but with

an ambitious target of 160mppa by the mid 2020s.

“Our aim is to build up capacity over time and we are just finding

out what the possibilities are to extend [beyond the target of

160mppa],” reveals Griffiths.

Passenger operations at DWC commence on October 27 with two

airlines: Saudi Arabia’s nasair and Hungarian low-cost carrier Wizz Air.

Nasair plans to operate more than 50 flights a week between Dubai

and destinations in Saudi Arabia. The carrier already operates

950 weekly flights to 28 destinations with a fleet of 21 aircraftcomprised of Airbus A320s and Embraer E190s.

Wizz Air will provide non-stop services linking DWC to Central and

Eastern Europe. It has a fleet of 40 Airbus A320 aircraft operating over

1,500 weekly flights to 93 destinations.

“Wizz Air will serve eastern parts of Europe giving access to the

winter sun market for a new category of visitors. It is a short flight down

to Dubai, and you are guaranteed excellent weather. There will be some

surprises from the network opportunities,” Griffiths promises.

Once the airport has the infrastructure and critical mass, Dubai-

based Emirates Airline is tipped to move its hub to DWC.

“Emirates is such a size now that we have to get enough capacity to

operate a single hub as they are growing and we need a capacity of atleast 60-70mppa.

It takes a few years to make an airport of that sort of capacity,”

Griffiths points out.

AIRPORT REPORT: DUBA



While Emirates may move to DWC in the years to come, Griffiths is

not working on creating a carbon copy of DXB, which is located in the

old town centre of Garhoud.“The good thing about DWC is that it is at the opposite end of Dubai

from DXB, so airlines can serve a completely new catchment area.

Regional carriers, especially low cost carriers, will see a lot of the

benefits, with shorter transfer times to Downtown Dubai and the

marina area.”

The airport forms the heart of a greater project also called Dubai

World Central, a $32 billion, 140sqkm multi-phase development of six

clustered zones that includes the Dubai Logistics City (DLC), Commercial

City, Residential City, Aviation City and Golf City.

The development is the region’s first integrated, multi-modaltransportation platform connecting air, sea and land.

“Having an international airport on your doorstep is good for

business. You’ll get logistics and manufacturing companies starting to

see the distribution links,” notes Griffiths. “There are a huge amount of

business opportunities.”

Cargo connectivity Located in the vicinity of the Jebel Ali Port and Free Zone, with a bonded

road linking the airport with the seaport, DWC makes air-sea

connectivity achievable in four hours.

This makes the airport an important cargo hub, not just for the

region, but globally too, insists Griffiths.Phase one offers a cargo terminal building with a capacity of

250,000 tonnes a year. Once completed, the airport will have a capacity

for 12 million tonnes a year.

As previously mentioned, DWC opened to cargo operators in 2010,

and already, 34 cargo carriers are using the gateway, with cargo growing

by 144% in 2012 to 219,092 tonnes.Emirates SkyCargo has confirmed that all dedicated freight flights

will be operated from its new cargo base at DWC from May 2014.

Two airports, one city With DXB and DWC both falling under the Dubai Airports umbrella,

synergies are already forming between the two airports, but can

Dubai sustain both?

For Griffiths, who was managing director of London Gatwick before

his 2007 move to Dubai, it’s a challenge he’s happy to consider.

“There are great economies of scale: a lot of our new staff will gain

experience at the established airport and we will also redeploy some ofour experienced staff to DWC,” he says.

DWC will open with just a couple hundred staff. That figure will

definitely grow, but by how much is hard to gauge. Staff levels will

depend on the success of the automation reengineering, which will

cover labour intensive operations such as check-in.

So what will happen to DXB in the long-term, especially when and if

Emirates moves its hub to DWC?

“We don’t have to make a decision now,” Griffiths explains, adding

that the infrastructure at DXB is relatively young.

“Complexity of airspace might be difficult to manage and that is

something we will look at, but obviously we can keep both operating for

quite some time.”If both airports do continue to operate, Dubai could be on its way

to serving more than 260mppa – making it one of the world’s biggest

aviation hubs.

RPORT REPORT: DUBAI

AW



http://www.leoadaly.com/



Bigger and brighter Caroline Cook finds out how Fraport’s Bulgarian venture is boosting the performanceof its Black Sea airports.

RPORT REPORT: BURGAS & VARNA

In less than a decade, Fraport Twin Star Airport Management (FTSAM)

has transformed two of Bulgaria’s busiest airports, with 2013

marking the operator’s biggest achievements in the country to date.

A joint venture between German airport operator Fraport and

40% partner Bulgarian Aviation Group Airport Services, FTSAM won the

35-year concession agreement for Burgas and Varna airports in 2006,

and soon developed the facilities’ master plans – a feat anticipated for

several years.

“Fraport started analysing Varna and Burgas ten years ago when theBulgarian government first started going into concession agreements,”

FTSAM’s CEO, Aletta von Massenbach, told Airport World .

Educated as a lawyer with a postgraduate degree in project

management, von Massenbach – a 17-year veteran of Fraport –

joined FTSAM in October 2012 and is the only female CEO in

the Fraport portfolio.

She says: “Bulgaria has huge potential and the Black Sea coast is

beautiful. The country has a good economic framework and we found

that the airports fit our criteria. With a stable environment and good

partners, it made sense.”

The company wasted no time moving forward with its plans and, in

addition to updating the existing infrastructure at both airports, beganconstruction on new passenger terminals at Varna and Burgas in

December 2011.

Taking up the challengeDesigned by Halcrow Group, Pascall+Watson and their Bulgarian

partners SavantElbul, the terminals are FTSAM’s first major steps in

turning the airports into world-class facilities.

Starting work in December 2011, a consortium formed between

TechnoimportExport and Içta Holdings built the infrastructure.

Varna Airport’s terminal opened its doors to the travelling

public on August 27. At 20,000sqm, it’s three times larger than itspredecessor and features upgraded technology to enhance the

passenger experience.

“The processes are faster and there is a completely different

commercial offer,” says von Massenbach. “One of the best parts of our

new systems is that passengers don’t notice them; they just enjoy the

good flow through the airport.”

With 25 check-in desks; three boarding card checkpoints; eight

security lanes and seven gates, the terminal can cater for 2.3mppa.

The arrivals area – split into Schengen and non-Schengen

– has 12 passport control points, in addition to one 90m and two

60m baggage carousels.

The airport’s concessions offering has also increased dramatically;passengers can now enjoy a 770sqm shopping area, run by Nuance BG

AD, and a 1,200sqm food and beverage space, including a 554sqm

external courtyard.

Able to handle 3.3mppa, Burgas Airport’s slightly larger facility,

due to open around the end of October, has an 800sqm shopping

area and 1,220sqm for F&B – again, with a 554sqm courtyard.

It offers 31 check-in desks; three boarding card checkpoints;

nine security lanes, and eight gates.

The arrivals area – also split into Schengen/non-Schengen

zones – has 12 immigration points; one 90m and three

60m baggage carousels.

In addition to their much larger sizes, both terminals can beeasily expanded and offer flexible use for seasonal traffic needs.

“During the winter season, parts of both terminals can be

closed to save energy,” states von Massenbach, adding that the

airports’ overall energy consumption levels have reduced as a

result of sustainable design.

In airport-wide efforts to optimise consumption, FTSAM has also

installed intelligent building management systems while various

ancillary facilities, such as the heat plants, have been renovated. The

company is part of Fraport’s wider environmental management system

and is certified by the European Eco-Management and Audit Scheme.

While the opening of Burgas’ terminal depends on various

governmental and administrative procedures, von Massenbach toldAirport World that FTSAM was fully prepared for operations: “Varna

acted as a benchmark for Burgas, so it has not been a new project for

us. We’re hoping for a smooth process when it opens.”

The two airports are around 120km apart, making the parallel

construction projects challenging.

Explaining why Burgas Airport’s terminal will become operational

months after its sister facility, von Massenbach notes: “We couldn’t

do both openings at the same time with the diligence we wanted. Our

aim was to finalise Varna first and then move on to Burgas.”

Despite original plans suggesting the terminals would open

concurrently, she insisted: “We don’t view October as a delay tobring the project over the finish line.

“We didn’t want to inaugurate terminals at both of the twin

Black Sea airports during the middle of the high season.

Fraport is a cautious company and two terminals opening

at the same time was a challenging process.

Image courtesy of Fraport Twin

Star Airport Management.



“For example, during the runway reconstruction work last year at

VAR, the airport was closed with air traffic diverted to BOJ instead. We

can use the airports in tandem.”

Next stepsThe opening of the new terminals forms part of FTSAM’s partnership

with the Bulgarian tourism board to boost visitor numbers to

the country.In recent years, the airports have seen a rise in passengers from

Russia, Belarus and Ukraine, while traffic from the UK and Germany

has remained “strong but stable”.

“We are seeing a tendency in travellers from Scandinavia as well,”

adds von Massenbach. “Now, it’s just a case of finding the right

marketing strategy to encourage this growth.”

She continues: “In terms of business, we are looking at how we can

optimise our commercial revenues and we expect a boost with these

inaugurations.”

The company is concentrating on building its commercial revenues

for the time being but plans for the coming years are already in place.Varna and Burgas’ master plans up to 2025 prioritise airside

development, explained von Massenbach. “The landside is in shape

now at both airports. We’ve already spent €165 million in seven years.

“The runway at Varna was refurbished in 2012 and we now want to

work on the apron and taxiways at both airports, starting from 2016.

“We also need to upgrade regular parts of the infrastructure on an

ongoing basis, such as the fire rescue facilities,” she says.

For Fraport as a whole, 2013 will also see the opening of St

Petersburg’s new terminal. “There is lots happening across the

company but we really are very excited about Bulgaria,”

concludes von Massenbach.

AIRPORT REPORT: BURGAS & VARN

AW

AW



It may have seemed like an easy step up the ladder from deputy

director of aviation to the hot seat, but when you’re responsible

for one of the busiest airports in the US, your predecessor was

in the role for 16 years, and you’re taking the helm at an airport

that has seen massive amounts of construction over the past

few years despite a gloomy economy, that step doesn’t look sosmall any more.

The good news is that having served as Randall Walker’s deputy

at the Clark County Department of Aviation since 1997, nobody was

better qualified than Rosemary Vassiliadis to take over when he

retired in June.

Modest Vassiliadis states that she has “very big shoes to fill”

as Walker was a well-known and popular character in Las Vegas

who helped make McCarran a “very successful airport”.

Indeed, McCarran handled a healthy 41.7 million passengers

(+0.4%) last year – its second successive annual increase, and the

highest annual total since 2008 when 44 million travellers used the

Nevada gateway.Its all-time record was set in 2007 by the way when McCarran

operated above its then design capacity when 47.7 million

passengers squeezed through its facilities.

Vassiliadis admits that she finds her new role exciting,

challenging and daunting. However, one thing she doesn’t have to

worry about for a while is new infrastructure, as McCarran is in good

shape after a decade of construction designed to address the

growing number of passengers.

Terminal 3Key additions to McCarran’s aviation facilities include: Terminal 3,

airfield enhancements, new roadways, a central utilities plant and

a 6,000-vehicle capacity parking garage, all added as part of a

$2.4 billion project completed in June 2012.

“The actual Terminal 3 project took six years and McCarran

now has a beautiful facility to process passengers through,”

enthuses Vassiliadis.

She is, however, quick to point out that the US economy

nosedived just as the project launched, meaning that it was a big

decision to continue with construction.

“It was difficult. We were very cautious, but we’d already brokenground and we decided to go ahead,” she tells Airport World . “It

turned out to be the best decision we made. T3 opened last year

and now we’re cautiously optimistic about the future.”

What has new aviation director, Rosemary Vassiliadis, got in store for Las Vegas–McCarran?

Alex Hannaford reports.

Headline

act

RPORT REPORT: LAS VEGAS



Vassiliadis says that the latest IT systems were incorporated into

the planning and design of the 1.9 million-square foot terminal in a

bid to ensure high efficiency levels and reduced waiting times.

They include 100% common-use systems to enable airlines to

time-share facilities, and new self-boarding gates to speed up boarding.

Automated aircraft docking systems also allow pilots to align with

a passenger loading bridge, requiring minimal ramp staff support.

Signage is provided by more than 1,100 LCD and LED screens,

giving passenger information, airline branding and real-time updates.The new $1.2 billion terminal effectively increases McCarran’s

capacity to 53mppa.

Having focused on expansion for the past 16 years, Vassiliadis

reveals that the gateway will now concentrate its energies on

becoming even more operationally efficient.

Revenue generationBefore joining the Department of Aviation, Vassiliadis was director of

finance for Clark County, which encompasses the city of Las Vegas. She

wouldn’t have known it at the time, but it provided her with valuable

experience for running McCarran.

Certain Clark County departments operated as enterprise funds,Vassiliadis explains, and so were supported entirely from user fees,

not tax dollars. Likewise, McCarran’s budget is comprised of rates

and airline charges.

“Then we try to maximise revenues with food and beverages,

specialty shops, parking and rental car fees,” she says.

In addition, Vassiliadis says McCarran is one of only two airports

in the US which has gaming in the building — something that can

provide a sizeable additional source of revenue, particularly as

gaming is precisely the reason most people are heading to Las Vegas.

Today, Vassiliadis says, the airport’s revenue is an equal 50/50

split between aeronautical and non-aviation related revenues.

Customer serviceGood customer service is imperative, notes Vassiliadis, who believes that

it is the job of her staff and everyone at McCarran to ensure that all

passengers enjoy a smooth and hassle free journey through the airport.

As part of this philosophy, she insists that McCarran always has

clean, working restrooms; that retail and F&B concessions are open

at the right times and are well stocked; and that merchandise and

souvenirs are available.

“If they had a good time but didn’t have time to go shopping in

Vegas, they can shop here and that’s what we want,” she smiles.“So we provide the latest products, displayed in an inviting way.

That’s customer service.

“Similarly, if there’s a torn piece of carpet, we replace it. We also

work hard with the airlines to ensure ticketing lanes and booths are

open with sufficient time for people to check in and get to their gate.

“We are also aware that many of our visitors only fly once a year,

so maybe a little more anxious than frequent flyers. The nature of

these passengers is they want to get to the hold-room area as soon

as possible before they start to relax. Once they see it, they’re fine

and they go wandering.”

Vassiliadis says her customer service commitment is partly

driven by the fact that McCarran is a major Origin and Destination(O&D) airport. Its status, she believes, means that passengers use

every facet of McCarran, unlike at other bigger airports, where they

are often just passing through.

“Atlanta, for example, is a much busier airport, but 65% of

people are connecting so they don’t use ticketing, they don’t use

the roadway system or parking,” Vasiliadis explains. “Here at

McCarran, 80% of our customers use everything.”

Vassiliadis is a big fan of “a sense of place” offerings that make

individual airports stand out from the crowd and enhance the

passenger experience.

McCarran certainly feels like an extension of the Las Vegasexperience and she cites Austin-Bergstrom International Airport in

Texas as an example of another gateway that does this well in terms

of its locally flavoured live music and retail/F&B offering.

“Vegas certainly has its share of entertainment and characters that

allow us to do things a little differently here,” says Vassiliadis, who

notes that when TSA first introduced ‘tip screens’ explaining the new

security procedures to passengers, McCarran did it “the Vegas way”.

“We didn’t have a film of a TSA agent explaining the procedure.

We had Vegas celebrities and personalities. And we’ll be updating

those to reflect who’s currently playing on the strip.”

Travelling can be a stressful experience and it’s touches like

these, she says, that help keep passenger anxiety levels down.“Customer service encompasses every part of our operation,”

adds Vassiliadis. “How do we do that? By getting my staff to take

ownership. Then the results are going to show.”

RUNNING HEA AIRPORT REPORT: LAS VEGA



RPORT REPORT: LAS VEGAS

Route development Thirty-one airlines currently use McCarran, the most popular being the

low-cost domestic carrier Southwest Airlines, followed by Delta, United

and then American.

Asked what her philosophy for keeping the airlines happy and

attracting more carriers, Vassiliadis believes that a sound financial

base is key.

“We don’t want to have spikes in rates and charges from year to

year because it’s hard for airlines to adjust to that. So each year we

have a budget meeting and we present our airlines with a multi-year

plan,” she says.

Domestically, the most popular routes at McCarran are to and

from Los Angeles, San Francisco, New York and Chicago. Forinternational travel the airport sees a lot of traffic between Las

Vegas and Canada – particularly Toronto, Calgary, Edmonton, and

Vancouver; then, it’s Mexico City, and the United Kingdom from both

Heathrow and Gatwick.

Currently, Korean Airlines provides McCarran’s only non-stop

service from Asia and so the current focus is on getting more routes

to the continent – primarily Japan and China, as Asian O&D has

grown 32% in the past three years.

McCarran has seen a number of new airlines use the airport from

Europe and Latin America. With the onset of the recession, it

became more heavily involved in its partnership with the Las VegasConvention and Visitors Authority and put a greater focus on new

international service.

Today, there is much more competition with other airports for

new service, especially international routes, but McCarran has had

an incentive programme whereby landing fees are waived on all

operations in excess of what the airline provided in the same month

of the prior year.

Additionally, the Las Vegas Convention and Visitors Authority has

a programme, which offers co-op marketing funds to support new

services, especially international.

In addition to passenger traffic, McCarran also handles around

200 million pounds of cargo a year, and while that may pale incomparison with some other large airports, Vassiliadis says the

legacy carriers have found it to be profitable, and they see some

interesting consignments go through.

“Because of the conventions we have, we see exotic animals, electronicstuff for the Consumer Electronics Show (CES), classic autos, fresh fish, and

flowers that the hotels use,” she says.

Appeal of Las VegasIn addition to gambling, Las Vegas also has the largest single-level convention

centre on the planet — with more than three million square feet of events

space, which is the site for this year’s World Route Development Forum.

In February, the Las Vegas Convention and Visitors Authority approved

the first phase of a $2.5 billion overhaul of the centre, the first major

expansion in more than a decade.

Vassiliadis believes that from a destination point of view, no other city

can offer the experiences than Vegas can. “You can still get a veryreasonable room rate; you can still get value here,” she says.

“The appeal of Las Vegas as a destination is as strong as ever. There

are so many different types of shows, not just headliners any more. We

have smaller, more intimate venues too. As for shopping, we have

boutiques to malls. Plus, there’s the dining , which has been its biggest hit

after gaming. All the top chefs come here.

“People still come to Las Vegas with a vacation mentality. They’re going

to splurge a little more, treat themselves to that fancy dinner.”

Future expansion

McCarran is located near the famous Las Vegas Strip and therefore hasonly limited space available for expansion. As such, in the early 2000s,

Clark County bought 6,500 acres of land about 30 miles southwest of the

current airport and embarked on ambitious plans to develop it as a relief

airport called Ivanpah Valley.

This was put on hold in 2010 in the economic downturn, but Vassiliadis

says the land is being retained and preserved for future commercialisation.

“You never know,” she says. “With the flexibility T3 gives us at McCarran

in terms of kerb space, parking, ticketing and baggage claim, we’re satisfied

for now, but if this town ever has huge growth again like it did in the 2000s,

the resorts will expand south.”

That’s when they may need Ivanpah. Vassiliadis says it’s prudent to

look to the hotels and whether they’re expanding to determine what theairport should do next in terms of expansion.

“We want to be ready,” she says. “And it would be prudent of me to

keep that site.” AW



Airport World 5 2013 Now available online

>The magazine of the Airports Council International

n this issue


Airports: Dubai, Las Vegas, Burgas & Varna


Plus: Security, retail & airfield safety

Follow us on

October–November 2013

Volume 18 Issue 5

www.aci.aero


Airports:Dubai, Las Vegas, Burgas & Varna


Plus: Security, retail & airfield safety-

IT: The journeyhas just begun

globally, with foreign exchange and banking services, vending

machines, property leasing, hotels and lounges topping these up.Increased car parking revenues can usually be achieved by an

upturn in passengers – and subsequently more visitors using the

airport’s facilities – or by becoming more successful at gettingpassengers to use its car parks.

Increasing passengers, however, can be costly. An increase

in conversion rates is often tied to special promotional fees

and increased interaction with passengers in advance of whenthey are flying. In either case, capacity increases invariably

need to be supported by infrastructure investments and the

use of additional land on-site, both of which can come with ahigh-price tag related to this form of revenue.

Increasing retail/F&B revenues can be achieved by any

combination of expanding the concession footprint in aterminal and/or improving the performance of the airport’s

outlet-derived revenues.

Expandingthe retailfootprint isitself costlyandcapitalintensive.

Inaddition,whilenewerairport terminalsmayhavebeendesignedwithretailandF&Bin mind,someof theolderterminalswerejustnot

optimisedfortheseactivitiesand significant changesmayberequired.

Another issue to consider is the fact that diseconomies of scaleoperate in the retail and F&B sector. Doubling the supply of retail

square metres will not necessarily result in a doubling of sales, for

instance. After all, the passenger propensity for purchase is finite,and there are well known guidelines established for square metres

of retail space per million p assenger throughput.

The low-hanging fruit So where is the low-hanging fruit in the airport industry? I believethat the greatest bang for the buck can be obtained by focusing on

the opportunity to improve the performance of the existing retail

and F&B operators.This can be done usually with modest investment and thus, each

percentage increase in performance goes almost entirely to the

bottom line profitability of the airport terminal.

There are, of course, many opportunities for improvement,including focusing on upselling greater sales per passenger;

optimising the product mixfor the profile of passenger to maximise

revenue; and targeting both the higher spenders and non-spendersby focusing on conversion.

Others include developing the route mix to generate more

revenues (non-EU flights generate higher margins on dutyfree tobacco and liquor, for example), and monitoring and

maximising conversion rates of people who walkpast a store

compared to those entering and then buying either by design

or on impulse.Leveraging opportunities for more dynamicadvertising (with

targeted promotions in specificparts of the terminal), and targeting

passengers on a specificflight, is another method used by airports toboost retail/F&B revenues. The list goes on.

However, in all cases, to be successful they really require a deep

understanding of the retail sales patterns gained throughmeasurement. The old adage of not being able to manage what you

do not measure is plainly true in this case.

In the face of ever-increasing pressure f rom the airlines to keep

aviation costs down, a growing number of airports are turning to

- and relying upon - non-aeronautical revenue sources to sustaintheir operations.

Indeed, ACI’s 2012 Airport Economics Report shows that

the industrycontinues to derive an increasing proportion of its revenue from the non-aviation sector, with an estimated

$46 billion annually, or 44% of all global airport revenues,

earned from these sources.

With some regional disparities and specificairports in each regionbeing more successful in this area, pole position from among the

different sources of non-aeronautical revenues tends to be either

retail and F&B or car parking.Ofcourse,likeanyotherbusiness,airportsarestrivingtoincrease

revenuestreams–andsubsequentlytheirprofitability–butsome

increaseshavehighassociatedacquisitioncosts.Thisarticlehighlightsthelow-hangingfruitoftheairportindustry,where

improvementstothebottomlinearemosttangiblefortheleasteffort.

Aviation sector revenues are, of course, principally based on

passenger fees and landing charges. In fact, we know that some

airports are almost totally dependent upon passenger fees, whichmeans that the only way they can realistically increase their revenues

is to increase the fee – not a very sustainable strategy in the current

climate – or handle more traffic.However, accommodating more flights or passengers can be very

costly to an airport depending on its capacity. It may, for example,

mean that the airport has to increase the number of security lanes,

and invest in new ground handling equipment, check-in facilities oraerobridges, and – in extreme cases – even terminals and runways.

Increasing passengers would also certainly result in a need to

increase staff.All these factors ensure that accommodating more revenue-

enhancing passengers can be expensive, with only a relatively small

proportion of the increased revenue trickling down to the bottom line.Turning to the non-aviation sources of revenue, retail/F&B, car

parking and sometimes car rentals are the primary revenue streams

Betteranalysisof salesdatacan helpairportsboost retail revenuesand customer

satisfactionlevels, writesJohnde Giorgio.

Bank on data

SPECIALREPORT: INFORMATIONTECHNOLOGY SPECIALREPORT: INFORMATIONTECHNOLOGY

39 AIRPORTWORLD/OCTOBER-NOVEMBER 2013 38 AIRPORTWORLD/OCTOBER-NOVEMBER 2013 38

Image courtesy ofIncheon International Airport.

F reeairportWi-Fiis widespread,inflight connectivityison the

increase,andairlines,airportsand airportretailerscommunicate

withpassengersviaapps andmobile-optimisedsites.

Themobilejourneystartswith researchingtravel,andincreasingly,

it continueswithbookingvia mobile.Travellersusemobilesbefore

their journey, at the airport, andat their destination.

There are numerous statisticsshowing airports providing

innovation in mobile connections, having huge numbers of Twitter

followers and receiving many thousands of Facebookand

Foursquare check-ins.

However,oneareaofthe airportcommercialspacethatisyet tosee

widespreadengagementwithmobilephonesis airportadvertising.

That’sstartingtochange, withairportadvertisingbusinesses

improvingtheirinvestmentinmobile solutions,andbrandsand

agenciesbeginningtoexperimentmore broadly.

As with any advertising, airport advertising must be relevant,

timely and accessible. In an airport setting, this means giving

passengers an engaging experience, and taking a mobile-centric

approach can really help to achieve that.

Peoplehaveclearpreferencesforthe technologiestheyuse,and the

waytheyusethem.The mobile experience isnow veryintuitive, and

that’sbecausemostpeoplecustomise theirmobileuseand behaviours

totheirownneeds.

Theychoose the device,plan,apps andtoolsthatworkfor them.

Soadvertisersandairportsthat recognisethis–and reflect it in their

offer–willbe themostsuccessful.

Interactiveandmobileadvertisingcan playameaningfulrole in

improvingthecustomerexperienceinan airport,bygivingp assengersa

fun,valuable,rewardingormemorablemoment thatbooststheir

enjoyment of the travelexperience.

Threerecentairportcampaignsencapsulatethevalue ofbrands,

agenciesandairportadvertisingcompaniesworking togethertodeliver

interestingandengagingexperiencesforpassengers.

Nice Cote d’Azur AirportTOTALInthelead-upto theMonacoGrandPrixearlier thisyear, TOTAL

deliveredafantasticexperientialcampaign at Nice Coted’AzurAirport.

Aswellas twosimulatorsfittedwiththeF1 computer game,

passengerscouldvisita ‘greenscreen’tohavetheir photostaken

‘with’RomainGrosjean.

Theycouldcollect a print, or uploadthe image to socialmedia via

theirownphonesor usingiPadsplaced aroundthe stand, whichalso

featuredothergamesanda competition. Additionally,hostesseswere

on-handtoprovidesupport andanswerquestions.

Akeyaspectof thiscampaignwasthe integrationoftheinteractive

experience within a broadercampaignthatreachedthepassengerat

severalpointsontheirjourney.

The campaign startedat the station withfloormedia,adgatesand

traincards, then built further throughcheck-in,todepartures,and onto

thegate.Thiswas complementedwithadvertisingonNiceAirport’s free

Wi-Fipages,boardingp assesandculminatedin onboardmedia on

seatbacktablesandininflight magazines.

Thisisagreatexampleofhowthefullstrengthoftheairportenvironment

canbeleveraged;withatrueunderstandingoftheaudienceandhowthey

usetheairport,astrongcampaigncanachievemaximumimpact.

Whatcanairportslearnfromthiscampaign?Deliveringentertaining

andengagingexperientialcampaignsinanairportis acomplexbusiness.

Ahigh-profile promotionalspace, qualifiedairsidestaff, data,power

andfreeWi-Fihad tobeavailable.It alsorequiredarobust media

inventorywiththeabilitytotracethe passengerjourney, allowingthe

advertisertobuildawarenessandexcitement about the experiential

zonepriortopassengersarriving.

Clearlythereisdirectcommercialbenefitin termsofmediaincome

froma campaign like this, but the broaderairportbenefitisthe

highlighttheyhavehelped createinthepassengerjourney andthe

socialandword-of-mouthchatterthecampaign generated.

UKairports O2SomeoftheUK’s busiestairportsweretheperfectplatformf ora

pan-regional, cross-media campaign byO2 promotingtheirEuropean

data-roamingoffer.

Timedtocoincide withthe peaksummerholidayperiod,this

campaignwasmobile-enabled,and atManchesterandGatwick

airports,wastotallyintegratedwiththeairports’dig italwalls.

Aswellasb eingabletoentera competition,passengerscouldalso

uploadandeditphotos forreal-timeviewingviaInstagram andTwitter,

using#O2Travel.The O2 TravelcampaignranatmajorUKairports, the

EuroStarandEuroTunnel.

Again,passengersweretargetedatkeytouch-pointsintheirentirejourney. Thisstartedwithbranded boardingpassesalongwithfloor

media at Londonrailstationsfeedingthe majorairporttrainexpress

services, vinyl-wrappedticketgatesandairportexpress traincards.It continuedthroughtoeverytouchpoint attheairportfrom drop-off

andcheck-intodeparturegate,usingsmall formatdigitalscreens

alongside giant standout lightboxes.Media also includedbrandingontheairports’freeinternetstationsand ontheWi-Filanding pages.

Withsome15,000interactionsperweekin ManchesterandGatwick

alone,it’sclearthatthis campaignresonatedwiththetravellingpublic

by‘givingsomethingback’.Passengershadareal-timeopportunitytodo somethingfunand

simple,andby makingthecampaignmobile-focused,O2ensuredthat

thecampaignreachedpeopleoff-airportviasocial mediaaswellas theprimaryon-airporttargetaudiences.

Forthiscampaigntohave realscale,andto justifytheinvestment

increativetimeandcost, amulti-airportbuywasa mustfortheadvertiser. Havingan agile andoutcome-focusedairportadvertising

company, anda specialistairportplanningagencywereveryimportant

factorsinbringingthe O2clientvisiontolife.The campaign also requireda consistentandflexible approach

fromtheairportsinvolved.Logisticsneeded tobemanageable,

andthat necessitatedabroadlyconsistentoffering fromairport

toairport.ManchesterandGatwick, in particular,havetaken a long-termview

in makingvaluable airside spaceavailableforlarge-scaleinteractive

touchwalls.

Australianairports GOOGLEArecent world-firstairportadvertisingprogrammebyGoogleisa great

exampleofairportsand theiradvertisingpartnersactingasenablersfortrulyinteresting, engagingandrelevant activityin the terminal.

ThecampaignfortheGooglePlayStoreallowedpassengerstousetheir

mobilephonesasremotecontroldevices,takingcontrolof39digitaladvertisingpanelsatBrisbane,MelbourneandSydneyairports.

AswellasinteractingwithGooglePlay Storecontent, Androidphone

userscouldalso then downloadselectedbooks, movies, music,

magazinesandappsdirectlyto theirphoneusingfree Wi-Fi.Thiscampaignis afantasticexampleofhow airportadvertisingwith

amobilefocus candelivergenuinevalueand benefittopassengers.

Severalimportant buildingblockswereputin placetoenabledeliveryofthisprogramme:

1. Theairportadvertisingconcessionaireinvestedheavilyin

asubstantialestateofdigitaldisplays acrossanumberofairports

2. Theirairportpartnersencouragedthisinvestment,and

providedaccesstohigh-impactadvertisinglocations

throughouttheterminal3. Theairportputfree Wi-Fiinplace.It’s unlikelythiscampaign

wouldhavebeenso effectiveifpassengershadbeen asked

topayforthe Wi-Fiservice

Ineachof thesethreecasestudies,thereare clearthemes.

Preparationandastrategicoutlookfromthe airportswasvital.Airportadvertisingbusinesseswithcommitment andaccesstocapital

werecentral.

The importanceofgoodcreativeideas (andthedriveof agencies) is

cleartosee,but withouttheinclusionof amobile-centric,customer-driven mindset, focusedon deliveringsomethingvaluable, entertaining

andmemorabletothepassenger, thesecampaignswouldhavebeen

lessremarkable.Thinkingabout,andfocusing on,theconnectedtravellercanhelp

airportsdeliveranenjoyablein-terminalexperience, whichpassengers

willrememberandwantto telltheirfriendsabout.

Ever-inventive brandsare using smartphones

to connect with passengersat airportsand

onalmost every stage of theirjourney, writes

Jeremy Corfield.

Going

mobile

Abouttheauthor JeremyCorfieldisdirector of ConcessionPlanningInternationalAustralia PtyLtd.

[email protected]

or www.concession-planning.com

AW

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airport world, issue 5, 2013

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