risk management in airports

7/29/2019 Risk management in Airports

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RISK MANAGEMENTIN

AIRPORTS


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Cholamandalam MS General Insurance Company Ltd AirportsRisk Management of Specific Industries Version 1

1. Introduction :

All over the world, more and more people are traveling by plane. For this

reason, many airports are being enlarged or modernized. Others are beingbuilt away from existing airports.

The airport operation consists of various activities required to enable asteady flow of air traffic. The flow of persons and objects in general, aswell as flight operations can be basically broken down into :

Passenger traffic : ticket sales, checking in, processing, support byairlines, emergency etc.,

Cargo : acceptance, delivery and handling of personal goods butalso transportation of bulky items (air cargo)

Aeroplane maintenance, repair, preparation for take off, parking Air-traffic control, apron control Organisation : airlines, airport administration, border guard, air

traffic control Periphery : retail shops, hotels, meeting centers, restaurants,

catering firms, infrastructure, traffic connections.

2. Processes :

We would now examine various airport activities in detail :

2.1 Passenger Handling :

2.1.1 Flight Information :

Nowadays not only business travelers demanding a high degree offlexibility, but also the modern, comfort-oriented private travelers are veryexigent when it comes to precise and up-to-the minute information abouttheir journey.

In todays large airport terminals, orientation is the most crucial factorwhen it comes to making the travellers journey experience more relaxed

and helping them find their way easily.

The traveller needs clear and unambiguous information about where he is,where he needs to go, how far he is from a particular point along his routefrom the terminal entrance to his gate, and how much time he has left.

And he wants to know about his next flight, its punctuality, the allocateddeparture gate, services, boarding time, any possible onward connections,

Property & Engg Dept, CMSGICL, HO Chennai Page 2 of 15


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or the latest news and the weather forecast for his destination. Maybethere is a sudden return of winter when he expected nicer spring weatherand he might just want to buy a warm jacket!

Only a well-informed traveller is a relaxed traveller who enjoys the airportexperience and takes his time to make use of the valuable leisurefacilities, which provide large parts of the airport revenue since thepotential of non-aeronautical revenues has been tapped at most modernairports.

Signposts, a large number of continuously updated flight informationscreens and appropriate announcements keep the passengers informed.Thus, at any time and from any place within the airport, the travelers canaccess information about their flight, its status, the time left until boarding,possible gate changes (if unavoidable), as well as directions to the gate

and the time required to get there.

This calls for intelligent FIDS (Flight Information Display System) and PA(Public Announcement) systems as well as careful terminal resourceplanning and allocation, and a close integration of systems

The Flight Information Display System (FIDS) should be designed tosupport continuous updating of the information for passengers even whilethey are on the way between gates or terminals.

2.1.2 Check in

Every passengers first physical contact after entering the terminal - withthe aviation world is the check-in counter or self-check-in kiosk. At thisinstant, the first and often most lasting impression is created, whichexplains why airlines make extensive efforts to enhance the quality of thecheck-in process.

But also the perception of the airport itself is to a great extent determinedby the first couple of minutes spent in the terminal.

If the check-in counter is easy and quick to find, the queue and waitingtime short, the passengers will very much appreciate that. This makes forpleased and relaxed customers, who will actually have the time and be inthe mood to shop at the airport, have a drink or take a meal before theirflight.



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2.1.3 Convenience :

Airports are turning into shopping malls with an attached runway fordistant access.

This commonly quoted impression of many travellers may be a littleexaggerated, but it is true that non-aeronautical revenues contribute asubstantial and growing part of the annual income of many modernairports in some cases they even surpass the aeronautical businessalready.

Shopping areas, dining experience, lounges and entertainmentextravaganzas are created to transform the formerly dull waiting time oftravellers into enjoyable - and profitable - quality time.

Airlines, on the other hand, are worrying increasingly about mountingdeparture delays due to the passengers distraction from their originalpurpose of being at the airport: Some simply forget about the time and arelate for boarding, which results in additional work for the ground crew andin delays. These delays, in turn, create an additional problem for theairline and the airport because flights and resource allocations are closelyinterdependent.

Then again, the passengers themselves will feel uncomfortable if theyarrive late at the gate, so most will keep a very large time margin forboarding. There is a solution that accommodates the expectations of all

parties involved: comprehensive passenger information, which meansease of mind for the passenger, full utilization of airports facilities, andprevention of unnecessary departure delays.

2.1.4 Boarding

Once the actual time of departure draws closer, the passenger is asked toboard the plane at a gate allocated well in advance after a thoroughplanning process aimed at optimum resource utilization.

Guided by an intelligent and well integrated FIDS (Flight InformationDisplay System), passengers can find their way to the right gate in goodtime. At most modern airports, this will be a common use gate (asopposed to gates specifically reserved for a particular airlines) in order toutilize capacities to a maximum. These gates are furnished with CUTE(Common Use Terminal Equipment), some gates may even have self-service boarding facilities to reduce personnel requirements and speed upthe boarding process for frequent travellers. Future-oriented concepts



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include the introduction of biometrics to further increase security at thiscrucial point.

2.2 Baggage :

The steady growth in passenger traffic is leading to enormous increases inthe volume of luggage. Airlines and their hubs are becoming increasinglyimportant as operators - a market moving this fast needs a reliable,competent partner who can cope with the logistics problems arising fromthis rapid expansion. First-class and business-class customers expectairlines and airports to ensure a high standard of baggage handlingservice.

Check-in of passenger luggage is supported by the check-in system,which in most cases today is a CUTE system (Common Use Terminal

Equipment). This system facilitates the communication between thecounter and the airline systems, where the luggage identifier for each bagand the so-called BSM (Baggage Sortation Message) for the BaggageHandling Systems (BHS) at all airports along the passengers itinerary isgenerated. The CUTE system also prints the Bag Tag, which is attachedto the bag and used at multiple points in the subsequent journey of eachbag. Future-oriented concepts will even do without paper tag. The tag isgoing to be replaced by small radio frequency chips for quicker and morereliable processing.

Sortation, transportation, storage and scanning of bags is supported

by a set of IT applications around the baggage handling process.

The initial inspection after check-in is fully automated. If there is any doubtregarding the safety of a piece of luggage, its X-ray image is scrutinizedby specially trained personnel. This is followed by further automaticinspections. If necessary, the piece of baggage in question is ejected fromthe material flow and may be subject to visual inspection by authorizedpersonnel in the presence of the passenger.

Baggage Reconciliation is an additional security step and IATArecommended practice as it prevents baggage being transported onairliners without the passenger who has checked in the bags being onboard.

Baggage Tracking and Tracing adds comprehensive search andmonitoring capabilities on individual airports or even across networks ofairports : knowing exactly the location of each piece of luggage at any time



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reduces mishandled baggage costs and improves customer service andsatisfaction.

Entire Baggage Management systems provide comprehensive planning,

control and decision support elements to the entire airport communitydealing with baggage processes from end-to-end.

Factors on which baggage design is dependent :

Integrated control and information technologies permit a scalable degreeof automation adapted to match the customer's requirements. Appropriatehardware and software solutions that guarantee faultless baggage sortingand tracking is required for this purpose.

State-of-the-art, redundant data networks link servers and control units toinformation terminals and operator stations at all strategic points andensure a reliable flow of information parallel to the flow of baggage.

Automated scanner gates (ATR) read the identification (baggage tag) of

each item of baggage and send it to the sorter computer. The computercombines this information with the data received from the airline (BSM)and the current sorting plan and thus determines the destination of thebaggage. It also takes into account whether it is an early, late orproblematic item of baggage and initiates the procedures speciallydesigned to cater for such cases as and when necessary. Flexible sorting



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strategies guarantee effective system utilization matched to the airport'soperational requirements.

Flight schedule changes, flight delays and cancellations automatically lead

to a reassignment of the baggage sorting destinations. Airport operationscontinue almost free of interruption.

2.3 Air Cargo

Land-side freight is delivered as bulk freight or in pre-packed Unit LoadDevices (ULDs). The interfaces for both types have to identify, weigh andcheck the incoming freight reliably.

Unlike flight baggage, air freight is based on the 'known shipper' principle freight has to be declared. Contents, weight and information on the

consignor and consignee have to be known and correct. But just checkingthese details is not enough. The increasingly stringent securityrequirements facing airports and flight operators necessitate a completecheck of the freight for any dangerous elements. New systems are neededfor supplementary inspections. These include X-ray inspections of pre-packed ULDs or low-pressure chambers for simulating flight conditionsprior to aircraft loading. These additional security checks constitute amajor intervention in the work flow in the terminals, yet at the same timethey provide an opportunity to test the entire logistics process. Improvingsecurity checks can thus help the operator optimize throughput times andcosts.

X-raying pre-packed ULDs and using low-pressure chambers and flightsimulation chambers reduce the risk of dangerous freight getting on board.Explosives can be found by applying low or high pressures, ultrasoundand time-triggered sensors audio signals are also detected. Speciallydesigned simulation programs reproduce the varying external conditionsduring a flight, thus reducing the risk of attacks in the air. Any hazardousobjects in the freight can be dealt with by a controlled explosion in thechambers, thus preventing any further damage.

The productive area of a freight terminal is the working area, where thefreight is handled. The freight is sorted and consolidated according todestination, time zone, flight number and other criteria at the workstations the build up and break down area.

Robust and reliable conveyor systems linking up all operative processesform the backbone of any cargo handling system. All sorts of freighthandling requirements have to be met: cold rooms, deep freeze



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chambers, transfer zones for perishable goods and open-air apron zones each air cargo center has its own specific requirements.

The various systems include :

Stationary conveyor systems (transport tracks, turntables, RA decks)Mobile equipment (transfer vehicles, truck docks)Storage systems featuring ETVs, stacker cranes, ULD elevatorsWorking areas for picking and splitting (workstations)High-bay warehouses for boxes, pallets and GLP (BSS)Internal transport systems for loose freight inside the terminalIntegrated PLC hardware and software solutionsIT management systems: Cargo Compact & Cargo WarehouseManagementDART maintenance and service tools

Security check, X-Ray and underpressure chambersMoby R localization systems

Design of Cargo Handling system : Factors

The main functions of a freight terminal are to accept and transfer freighton the land side (import, export) and to transfer and accept freight on theair side (inbound, outbound). The connecting conveyor systems transportthe freight within the terminal.



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2.4 Aircraft Handling :

One of the most important criteria of the success of an airport and animportant goal of all participants is the quick, efficient and on-time

turnaround of aircraft of any size.

For the airport, this means optimum utilization of available resources.For the airline, this translates to maximum flying time of their mostvaluable assets, their aircraft, and thus to maximized earnings.

And the passenger enjoys punctual departure, which is the basis of on-time arrival and smooth transit.

Thus, the efficient guidance and handling of any aircraft from touch-downto take-off is right in the focus of any airports activities. The airport has to

put systems in place, innovate and integrate technologies to support theground movement and handling processes of aircraft in order to maximizethe benefits the customers reap from safe landings, quick taxiing, preciseparking, organized ground handling, efficient loading and boarding, andthe punctual return to the runway.

IT systems play a significant role in keeping to flight schedules, monitoring



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ground movements, and planning and co-ordinating the apron andterminal activities of multiple parties. The central goal is to detect andremedy any deviations from plan to make sure that no time is wasted andall resources are used to their intended purposes.

VDOCKS Video Docking System is designed to ensure precise guidanceof the aircraft over the final few meters en route to its correct stop position.

The system relies on passive sensors that process visual data intoguidance information for the pilot. Guidance signals are clearly displayedand arranged, and thus easy to read for the pilot and the co-pilot. Allinformation is also clearly presented at the VDOCKS central workingposition. Video images of a particular gate are accessible by a simplemouse click and can be viewed on the human machine interface (HMI)screen.

2.4.1 Ground Handling

Ground Handling on an airport is one of the most complex and time-criticalprocesses in the entire industry. Multiple parties work on the same object,where even only a minute of delay in a single activity can create havoc onthe work-schedules of everybody else, leading to a substantial waste ofresources and multiplied delay of the entire system. Suchinterdependencies, the time-criticality and natural factors such as weatherhighlight the importance of careful planning and flexible management of allactivities and resources around an aircraft on ground.

2.4.2 Lighting systems

Depending on visibility conditions under which airports have to operate, aswell as on available radio navigation equipment, lighting systems shouldcomprise all visual aids needed for clearly marking the approach sector,runways, taxiways and apron, and for routing the landed aircraft safely.

The AGL system includes the following equipment:

Hazard and obstacle lightingWind direction equipmentIdentification beacons

Apron floodlightingSignal equipmentDocking system



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Airside visual aids are gaining increasing importance for the safemovement of aircraft on the ground. The increase of traffic volume and theneed for continuous improvement of traffic safety on runways, taxiwaysand apron are technical and economic challenges for intelligent airfield

lighting and control.

2.4.3 ALCS Airfield Lighting Control and Monitoring Systems

Airfield Lighting Control Systems (ALCS) allow air traffic controllers (ATC)to monitor and operate a range of lighting functions from the control tower,at the same time providing them with valuable feedback on theperformance status of system lighting equipment.

2.4.4 Surface Movement Guidance and Control System

ICAO has specified the provision of (advanced) surface movementguidance and control systems (A-)SMGCS to avoid collisions on theground.

2.4.5 Power Supply :

The airport never sleeps. Non-stop operation demands a power supplywith the highest degree of availability and flexibility, because a growingrate of demand fluctuations has to be compensated reliably and withoutloss in quality. At an airport, all sections and systems need a reliable andconsistent power supply at all times and in every respect: from the mains

connection to the airfield lighting, from the energy management to theemergency power supply concept.

In the event of component failures or other disruptions, it is the job of thepower supply system to keep all airport facilities, systems and subsystemssupplied with power with a minimum of interruptions.

3. Loss Exposures :

3.1 Passenger Transportation :

In and around the airport, passenger transportation involves a low hazardlevel, since nothing is produced in the strict sense of the word. At thesame time, there are fire loads due to office work, suitcases and retailstores. Electrical power, smoke and welding are some, but no all, of thepossible sources of ignition.

3.2 Cargo Transportation :



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Cargo transportation in an airport is in principle equivalent to receivinggoods at a manufacturing company. A large number of different goods(suitcases) are accepted and fed to various departments (planes) within a

short time. This means that fire loads are quite low during quiet times.However, considerable fire loads can accumulate during busy times.

The volume of cargo handled is comparable with that of a forwardingcompany. Here too, the fire loads can be occasionally high. Since valuablematerials are only transported by air, extremely high value accumulationscan be expected. Here too the sources of ignition include electrical power,smoke and welding among others.

3.3 Maintenance :

The greatest hazard specific to airports relates to plane repair. In repairareas, extremely high fire loads can occur (partially fuelled planes) withvery high values. Some of the repair works (such as welding or soldering)involves high temperatures. This requires special fire precautions. Thesituation is similar when airplanes are fuelled on the apron.

3.4 Traffic Control/Apron Control :

Air traffic control is equivalent to conventional office work. Take-off andlanding clearances, frequentation of routes and similar procedures are

processes. Apron control, however uses highly sophisticated electronicequipment which must always be available. Therefore, the fire protectionof this equipment must be considered separately.

3.5 Periphery :

In addition to the exposure specific to airports, higher exposures related tothe general infrastructure should be considered. These include :

Hotels Shopping centers at gates and in the outer buildings

Railway stations Multi-storey car parks

Needless to say, the airport periphery includes some main hazards suchas :

Tank farms



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Waste disposal Co-generation plant.

Possible causes of risk and loss prevention measures for this

infrastructure would be discussed with the respective occupancies.

4. Probable Maximum Loss Scenarios :

In most airport loss scenarios and disaster management plans, the eventof an airplane crashing over the airport building has been seen for PML-determining scenario. However, such an event occurs so rarely that itmust been not as probable but rather as merely possible, so that onecould depart from this scenario. Another unlikely scenario is an airplanefire during fuelling that spreads to the building.

For the case of a hangar fire, a few points needs to be considered. If thefire breaks out in the maintenance and repair hangar, the airport is usuallyaffected by the damage to the building and not to the plane since the lattercould be insured by airline insurance policies. Since the building value ofhangar may not be more than US$ 50 Million in most cases, otherscenarios should be given preference.

The best conventional scenario is the fire in a terminal building (regardlessof origin). It must be taken into consideration that very valuable furnishingsand complex building facilities can be destroyed. The affected area

depends on the number and quality of fire resistant partitions, the size ofthe building and values at risk.

In respect of business interruption, modern airports have complex facilitiessuch as fully automatic luggage transportation and computer supportedair-traffic control and hence the re-instatement might take upto 18 monthsor 24 months.

5. Major Losses :

Dusseldorf Airport, Germany, 11th April 1996.

The terminal A of the airport was damaged by fire. The loss was causedby hot work at an expansion joint of the approach ramp. Inflammableinsulation, lack of partitions and delays in fire fighting helped to spread thefire quickly. The property damage loss was US$ 115 Million and that forbusiness interruption was US$ 63 Million. 17 people lost their lives andanother 83 were injured.



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Gatwick Airport, London, 1st November 1991

Storage hall for cabin equipment and engines at the Gatwick airport

damaged due to fire. The cause of damage was presumably due tosmoking, but not clearly established. The property damage loss wasUS$ 42 million and Business Interruption loss was put at US$ 3 million.

Hullavington Airport, UK, 3rd January 1992

Storage hall for military supplies (eg., parachutes) affected by fire. Thetotal property damage loss was put at US$ 48 Million

Orly, France, 5th June 1991

Spare plane parts caught fire at the airport. The exact cause of fire is stillunknown. The total property damage loss was put at US$ 19 Million

Brussels, Belgium, 3rd October 1997

Central high bay storage rack for spare parts in the airport damaged. Theloss was estimated at US$ 53 Million for property damage and US$ 27Million for business interruption respectively.

6. Risk Management :

Airports are characterized by large rooms and large volume of people.Consequently, fire protection must focus on personal safety as well asavoiding and preventing spread of fires.

6.1 Basic Fire Fighting Equipment :

In all cases, portable fire extinguishers and hose reel/indoor hydrants mustbe located throughout an airport. With this equipment, persons withoutspecial training can fight any incipient fire. Signs must be provided whichare easily recognized and can be seen from far away.

6.2 Fire Service :

At airports, the fire service is usually responsible for organizational andpreventive fire protection. International aviation treaties regulate the natureof fire protection, equipment, training and time until fire fighters arrive at afire after an alarm sounds. This ensures optimum fire fighting, should aplane crash. Each airport makes its own arrangements for the fighting of



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fires in buildings. Thus an airport which is safe for passengers couldactually be poorly protected from the point of view of property damage.

6.3 Structural Fire Protection :

When airports are built or converted, it is a general rule that inflammablebuilding materials should not be used at all. Despite this, fire loads causedby bunches of cables and utility equipment cannot be avoided. Structuralpartitions are included wherever possible. If fire retardant or fire resistingwalls are not feasible, curtains, rolling shutters, doors and gates are usedto prevent smoke and heat from spreading. Fire retarding sealing must beemployed to prevent fires and smoke from spreading via conveyor belts,tubes or transportation equipment. The fundamental rule is that the morefire resisting the partitions are, the better.

6.4 Fire Detectors and Extinguishing Equipment :

The shopping areas of modern airports are built in an atrium design. Forthis reason, the buildings can be very high. In this part of an airport, area-wide sprinkler systems are not worthwhile since it takes too long for asprinkler at that height to get triggered. Thus at some airports, the insidestructures have been roofed over and equipped with sprinklers. This haseliminated the need to place sprinklers in the hall.

All other areas, the luggage area in particular should be provided withsprinklers without exception. Particularly exposed rooms, such as

communications centres and transformer rooms, must be equipped withgas or foam extinguishing systems. There are special protective strategiesfor tank farms, large kitchens and hangars. If extinguishing systems arenot available, as an absolute minimum area-wide detectors must beavailable in conjunction with a fire service equipped for fire protection ofbuildings.


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