Spring 2009 AirportConsulting

Page 1

Spring 2009

Consulting

A Quarterly Publication of the Airport Consultants Council

PASSENGER PROCESSING — Extending the Self Service Experience

Herve Muller, IER

NEW TECHNOLOGIES ARE SWEEPING OVER THE AIRPORT INDUSTRY, ALTERING THE OPERATIONAL CONVENTIONS OF HOW NEW AIRPORT TERMINALS ARE BEING DESIGNED AND HOW EXISTING ONES ARE BEING RETROFITTED. New equipment and systems are bringing substantial changes in the way passengers travel and the demand for new solutions is strong. Airport executives and consultants are anticipating how these new technologies will affect the passenger’s entire traveling experience as they journey to the airport, through the terminal, and reach their seat on the aircraft. Those involved in developing airports are realizing that it’s no longer possible to rely on familiar terminal design concepts, and that it’s necessary to become skilled at incorporating new technologies into facility designs, building layouts, security screening, and passenger needs. It’s also essential that the appropriate

application of new tools are understood, so improved passenger processes expected by travelers, airlines and airports can be realized in a timely fashion.

The Evolution of Passenger Processing Passenger processing, once exclusively an airline function, has evolved over the last decade. Processing options utilizing information technology (IT) and computerized technologies provide passengers with enhanced flexibility, autonomy and responsibility. There is a widespread parallel evolution being pushed by the airlines to involve airports in provid-

ing passenger processing. This change has been less visible to passengers than the new technologies. A good example of airports and airlines sharing these responsibilities is the implementation of Common Use Terminal Equipment (CUTE) systems, which allow airlines to share checkin desks and gates. As airlines share these formerly exclusive systems with the airports, the need for costly airline-dedicated passenger processing infrastructure is significantly reduced. This sharing of systems also provides airport management with operational flexibilities that offer new alternatives for design See SELF SERVICE on page 16

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SPECIAL FEATURE:

CONSULTANT PERSPECTIVE:

PHOTO REVIEW OF 30TH ANNUAL ACC CONFERENCE & EXPOSITION

IMPLEMENTING SMS AT AIRPORTS

THINK LIKE A BUSINESS


Executive UPdate

Measuring Success

Timing is everything!

Evan Futterman Futterman Consulting, Inc. ACC 2009 Board of Directors Chair

The beginning of my term as Board chair coincided with a once-every-three-year ACC Strategic Planning Retreat. Preparations for the Retreat yielded a wealth of information about past successes of the organization and set the stage for a productive two days of work by Retreat participants. The ideas and discussions during the Retreat covered many important and timely issues — the existing economic climate, the current state of airport development, current and future trends that we must address in our businesses, and the strengths and weaknesses of the ACC organization, as seen through the eyes of the Board, senior staff, and leaders of the Strategic Planning Committee. The Retreat began the process of mapping the next five years in the evolution of our progressive organization. The updated strategic plan will help to steer ACC through a turbulent time in the aviation business, capitalizing on the cumulative expertise of our member firms, great events like the Planning, Design and Construction Symposium, and the creativity and dedication of Retreat participants. A personal thank you to Jerry Farrar and Roddy Bogus, the ACC Strategic Planning & Implementation Committee Chair and Vice Chair, for their leadership and efforts leading up to the event. Their hard work paid enormous dividends.

• Membership and participation levels are at all-time highs »» A far greater percentage of eligible member firms are now members. »» A far more diverse group of firms are members. »» A greater depth of participation is evident within member firms. • Associate Members are enjoying higher profile and receiving more value from membership • ACC is the go-to organization on the top issues of the day (including Safety, Security and Sustainability) • ACC is the go-to organization for Regulatory Agencies and Legislators on issues related to airport development • ACC has successfully implemented its International Strategy

To me, the success of the Retreat emanated from a key question posed to attendees a month before the event:

• ACC is making much greater use of internet delivery (webinars, web-conferencing, etc.) for the benefit of members

“You fell asleep and woke up five years later. All of ACC’s aspirations are realized. Everything that you hoped to accomplish with ACC has been achieved. What would you notice about ACC if this were the case? How would it better meet your firm’s needs?”

• The value of ACC is clearly recognized by its members and the entire industry

This question focused us on how we need to continue to grow to demonstrate value to our members and to the industry. It was clear to all participants that we must further enhance the value we provide to current and prospective members. If not, we will get sucked into the wake turbulence of the current economy and competition for investment dollars and fight for our survival.

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Seven principal characteristics of success were developed during the Retreat to guide our efforts in the years ahead:

Consulting, Spring 2009

The ultimate success of the Retreat will be measured years from now by our ability to execute. As Board chair, I am making the principal focus of my term a commitment to execute the plan, to “walk the talk.” As we progress toward all of these goals, ACC will offer unprecedented value to all members, and, together, we will be a major force in implementing airport development worldwide.


Table of contents

Spring 2009 …bringing experts together

Consulting

ACC 2009 Board of Directors Chair Evan Futterman

Futterman Consulting, Inc.

A Quarterly Publication of the Airport Consultants Council

Vice Chair Ronald L. Peckham, P.E.

C&S Companies

Secretary/Treasurer Terry A. Ruhl, P.E. CH2M HILL

Immediate Past BOARD Chair Michael J. DeVoy, P.E.

Cover Story

Inside This Issue

1

8–9

RW Armstrong

Board of Directors Michael R. Arnold

Passenger Processing — Extending the Self Service Experience

Member Spotlights This issue highlights ACC Executive Member Landrum & Brown, Inc. and ACC Associate Member Advance Testing Company, Inc.

By Herve Muller, IER

ESA Airports

Thomas B. Duffy

Safegate Airport Systems, Inc.

Michael K. Kluttz, P.E. Robert and Company

Carol Lurie, LEED AP, AICP

Vanasse Hangen Brustlin, Inc.

Special Feature 4–5

Enrique M. Melendez Jacobs

A. Bradley Mims

Parsons Brinckerhoff

10 – 11 ACC Events — Photo Review ACC 30th Annual Conference & Exposition

Implementing SMS at Airports: Progress and Challenges

12 – 13 Out & About with ACC

By Joanne Landry, Landry Consulting

14 – 15 ACC Members • New Members

Stephen M. Pelham

Reveal Imaging Technologies, Inc.

David G. Peshkin, P.E.

Applied Pavement Technology, Inc.

Susan Prediger CAGE Inc.

ACC Staff Paula P. Hochstetler President

T.J. Schulz

Vice President

Sharon D. Brown

• On the Move • And the Winner Is

Consultant Perspective 6–7

Think Like A Business: Crafting the Future Viability of Airports

• ACC Updates

16 – 17 Cover Story (continued from page one)

By Al Michejda AIA, NCARB, Vice President, HNTB & Steve Hostettler, Managing Director, DeernsUS, Consulting Engineers

Passenger Processing — Extending the Self Service Experience

19

Director, Programs and Finance

Upcoming ACC Events

Emily VanderBush

Coordinator, Marketing and Membership

John B. Reynolds

Coordinator of Communications

Spotlight ACC Institute

20

After All... Airport Business in a Post-Stimulus Market

AirportConsulting Editor T.J. Schulz AirportConsulting is published quarterly. The next issue will be distributed in May. For advertising information, contact John Reynolds at 703-683-5900. Please send your feedback, comments or suggestions to the editor at: Airport Consultants Council, 908 King Street, Suite 100, Alexandria, VA 22314, or e-mail TJS@ACConline.org. ©2009, ACC www.ACConline.org

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sPEcial fEatuRE

By Joanne Landry, Landry Consulting

Implementing SMS at Airports: PROGRESS AND CHALLENGES

SMS and Part 139

PA R T 13 9

Last year, the Seattle-Tacoma International Airport (Sea-Tac) joined 25 other airports as part of an FAA Pilot Program to develop and implement SMS programs. The Pilot Study focused on a gap analysis, specifically examining how the typical SMS elements (Policy, Risk, Assurance, Promotion) compared to existing operations for both the movement (runways and taxiways) and non-movement (ramp and baggage) areas.

4

A central question was to what extent US Title 14 Code of Federal Regulations (CFR) Part 139 certification requirements could be adapted or modified to support an SMS program. The results were promising at Sea-Tac: approximately 45 percent of the current Part 139 program could be included in an SMS program. Snow removal, emergency response, pavement, training tracking, fi re and rescue, wildlife hazards, hazardous materials, fueling, and self inspection are all examples of applicable Part 139 programs.

could, with adequate funding and guidelines, implement SMS programs as successfully as Part 139 programs.

Sea-Tac had advantages, including an automated self-inspection tool that rigorously manages its Part 139 program. This software application has long-term potential to include SMS reporting and inspection/audit elements. Sea-Tac, like most Part 139 airports, is excellent at meeting certification requirements by employing qualified staff and establishing programs to ensure operations are meeting federal regulations. Sea-Tac also has existing safety-related programs, communication routes, committees, and relevant departments that could be adapted to support an SMS program.

Phase II and Beyond

Part 139 airports are typically adept at developing fit-for-purpose programs from complex FAA regulatory and advisory guidelines. This is an important fi nding that indicates airports

A PRIMER ON PART 139

14 CFR Part 139 requires the FAA to issue Airport Operating Certificates to airports that serve scheduled and unscheduled air carrier aircraft with more than 30 seats and scheduled air carrier operations in aircraft with more than 9 seats but less than 31 seats. Airport Operating Certificates ensure safety. To obtain a certificate, an airport must agree to defined operational and safety standards outlined in the Part 139 Regulations and Advisory Circulars. These requirements vary depending on the size of the airport and the type of flights available.

Consulting, Spring 2009

Managed Through Standards

S

afety Management Systems (SMS) will likely be a pervasive part of airport development and operations in the years to come. The Federal Aviation Administration (FAA) is currently undertaking an internal and external initiative to implement SMS to comply with International Civil Aviation Organization (ICAO) requirements. This implementation is sure to have significant impacts on airports and their consultants. So far, the experiences at some airports have shown promise, as well as challenges. One thing is evident: as the implementation of SMS evolves in the United States, consulting opportunities may become more about local understanding, airport relationships, and individual cultures than generic implementation checklists and guides.

Not surprisingly, Sea-Tac had some SMS gaps. Its biggest limitation is staffi ng, and current economic constraints will not allow for additional hires. As a result, implementation of an SMS program would require collateral duty assignments to existing staff. This is a significant challenge for Sea-Tac and most likely for other airports.

Sea-Tac delivered its Pilot Study fi ndings to the FAA in mid-2008. After reviewing and compiling all Pilot airport results, the FAA decided to continue its research and further clarify the impact of SMS on Part 139 Airports. The FAA’s second series of Pilot Studies is focused on smaller Part 139 airports (Class II, III, and IV). These airports are conducting studies similar to the first series of pilot airports, but are developing gap analyses and safety implementation plans that address unique strategies, staffi ng impacts, environments, and cultures for their smaller or non-commercial operations. Sea-Tac, along with South Bend Regional Airport in Indiana and Concord Regional Airport in North Carolina, were selected for a

SMS and Part 139 Analysis Movement Area

Non-movement Area

139 139

139

SMS

139 139 139

139

139

SMS SMS

Best Practices

SMS

SMS


List of Three Follow on Study Airports separate year-long, follow-up Pilot Study that is currently underway. These airports are diverse in size and complexity, and they are tasked with testing the First Pilot Study’s SMS Manual and Implementation Plan. Specifically, the airports will be analyzing whether the proposed plans are operationally feasible, functional, and cost-effective to implement. One of the concerns identifi ed in the First Pilot Study was the ability to incorporate an ICAOcentric SMS program into a Part 139 operation. Philosophically, ICAO’s SMS should work in US Airports, but a test implementation could show possible differences. The combined fi ndings from the prior and current studies are expected to provide the FAA additional information to assist with a Notice of Proposed Rule Making (NPRM) scheduled for early 2010. Sea-Tac now plans to test critical elements of a typical SMS program against day-to-day operations. To complete a more thorough analysis, the consulting team is job-shadowing airport duty managers and airfield inspectors, reviewing standard operating procedures, tracking data from start to fi nish, meeting with tenants, participating in safety meetings, assessing legal and risk impacts, testing possible audit and inspection programs, documenting staff roles and responsibilities, documenting duties and reporting hierarchies, and re-visiting Part 139. The consulting team is co-located with the aviation operations team three to four days a week over the next five to six months to accomplish this task. Mark Coates, SMS Sponsor and Senior Manager of Airport Operations at Sea-Tac,

decided early in the follow-up Study proposal stage to require a 70 percent onsite presence from his consultants. Said Coates,

» Seattle-Tacoma International Airport » South Bend Regional Airport (IN) » Concord Regional Airport (NC) Key tasks each airport will investigate as part of the follow on study:

“I can’t imagine implementing an SMS system without a committed and integrated on-site team. Understanding our airport’s complex operations, teams, processes, and culture would be challenging to grasp through a couple of site visits. Having the team work directly with our operations staff will encourage buy-in and create synergies that I believe will result in a program that fits for the Sea-Tac community. It would be impossible to understand these relationships from an organizational chart; with SMS so much of the success relates to understanding the airport’s culture.”

Airport Safety Policy

Consultants’ Role

Task 1. Identify hazards.

Not all airports have the ability to integrate consultants into their daily operations, but the value of being on-site can certainly help consultants understand the subtle differences in management styles and organizational cultures as they craft an airport-specific SMS program. At Sea-Tac, the consulting team continues to gain an understanding of aviation operations. As a result, the fi nal SMS program should more accurately reflect the airport’s specific needs and have fewer implementation problems.

Task 2. Determine the risk, assess the risk, and analyze the risk associated with hazards identified.

Leveraging the strategies, templates, and guides available in the aviation community are an excellent start to developing an SMS program, but assuming the implementation can be done exactly the same at all airports could potentially compromise the success of the program and the safety of the operations.

Joanne Landry is the Owner/Managing Consultant of Landry Consulting LLC — www.landryconsultants. com. Landry Consulting is Women Business Enterprise (WBE) certifi ed with over 20 years of Program, Project, and Consulting Management Experience in a variety of industries and roles. Ms. Landry is currently the consultant for Seattle-Tacoma International Airport Phase I and Phase II Safety Management System (SMS) Program and is facilitating an Airport Teleconference and SharePoint site for SMS collaboration. A presentation of the FAA’s First Pilot study findings can be found at:

Task 1. Develop standard elements for an SMS Policy. Task 2. Define Safety Manager’s roles and responsibilities including Safety Committee functions, where applicable. Task 3. Review non-punitive programs with regard to legal authority. Task 4. Research third party data collection, collaboration, and reporting systems. Safety Risk Management

Task 3. Treat (mitigate) the risks for hazards identified and analyzed. Task 4. Reevaluate, analyze and communicate risks. Safety Assurance

Task 1. Establish a FOD program for the movement area, ramp, and bagwell areas. Task 2. Develop a personnel training and record keeping program that meets the requirements developed under the airport’s SMS Program. Task 3. Develop a ramp and bagwell selfinspection program that ensures safety is maintained. Task 4. Develop a minimum standard for safe operations on the ramp and in the bagwell. Safety Promotion

At this time, no Federal funds may be used in the implementation of proving of safety promotion actions under the airport’s SMS.

www.faa.gov/airports_airtraffic/airports/airport_safety/safety_management_systems/

www.ACConline.org

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consulta n t P ERsP Ec t i v E Prepared by Al Michejda AIA, NCARB, Vice President with HNTB & Steve Hostettler Managing Director for DeernsUS, Consulting Engineers

Think Like A Business

Crafting the Future Viability of Airports Today more than ever, airports and their host regions are increasingly recognizing their interdependence and consequentially, crafting and managing their own viability. In short, they are thinking more like a business, finding new ways of defining and maximizing airport resources and partnerships that would have been dismissed a short time ago.

W

hile the aviation industry has endured constant change throughout its history, the current global economic turmoil is neither incremental nor temporary. It threatens many airports with disruption and possible closure and calls for concerted actions to avert negative impacts. The stakeholders in this turmoil include airlines, airports, consultants, local communities and federal agencies. Depending on one’s perspective, these dramatic changes point to a future that can be opportunistic and exhilarating or declining and disheartening. An imaginative attitude is essential for airports to develop the winning strategies necessary for countering economic uncertainties.

Stakeholder Roles The most significant shift in airport stakeholder roles during the past decade has been the increased responsibilities many airports have assumed from the airlines. Two of the most obvious changes are the non-exclusive use of aircraft gate positions and, to a lesser extent, ground support equipment services. The increasing utilization of Common Use Terminal Equipment (CUTE) is another general transition of responsibilities away from the airlines and more towards airports. As a result of these shifts, consultants are becoming more engaged in the economic development of the community in the vicinity of the airport. To some extent, airports of all sizes and the airlines that serve them have already begun to forge business relationships with non-aviation partners to create economic advantages for

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Consulting, Spring 2009

themselves, local businesses and the traveling public. Said another way, airport developers are no longer viewing their role as limited to supporting the airlines. They are striving to consolidate aviation and regional forecasting, planning and funding methods to maximize long-term economic viability for all. This unified approach is requiring changes to a process that relies on significant cooperation among regional entities that are unaccustomed to such close collaboration. Airports and their consultants are in an ideal position, increasingly taking advantage of the opportunity to lead this shift and establish partnerships that include regional planners, fi nancial forecasters, master developers, and private side investors in addition to those traditionally involved in airport development. An industry benchmark is needed for planning future airports and their neighboring regions. It includes planning for sustainable growth that will connect the business district, convention centers, hotels and the lives of the airport community’s residents. Planners also need to assume that an increase in airport privatization will likely occur, perhaps accompanied at some point with the Federal Aviation Administration (FAA) and Transportation Security Administration (TSA) roles becoming primarily regulatory. Three scenarios that can be helpful to consultants and their airport clients as they consider effective actions are Off-Site Industry Reinvention, OnSite Reinvention and Regional Airport System Integration.


Off-site Industry Reinvention A number of cities and smaller communities are in the midst of redefi ning or reinventing themselves due to the restructuring of businesses served by their airport. Detroit Metro Airport provides a good example. Wayne County Airport Authority CEO Lester Robinson states:

“Detroit is the hub of America’s auto industry and its airport is the hub of Northwest Airlines. Both of those assets are in trouble and are taking steps towards re-inventing themselves for survival in the global economy. Without a doubt, the transformation will take place and be successful based on the entrepreneurial spirit of both industries and the skill of the region’s work force.

Strong, deliberate regional partnering will be essential if Detroit Metro Airport is to craft a viable plan for adjusting its aviation services and initiating resourceful non-aeronautical revenue sources that benefit the public, local businesses and the airport

On-Site Reinvention Dallas-Fort Worth International Airport (DFW) and Port Columbus International Airport are two examples of airports that are responding more to on-airport influences and opportunities. DFW was challenged early on when American Airlines transformed the airport into its major hub. Initially, the design had to be modified to facilitate passenger connectivity between terminals. Then, security check points needed to be accommodated. That was followed by the realization that international passenger capacity was inadequate. Like many other airports, their facilities adapted to these changes. Recently, as federal government funding has dropped, commercial development has been stimulated by granting gas and oil exploration rights to

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qualifi ed interests. Says Jeff Fegan, CEO of DFW:

“DFW is one of several US airports which were not a product of the transformation of a military fi eld or an expansion of a city airport. It is also the benefi ciary of visionary location and acreage, both of which have already proven to be crucial to its success. The willingness of Dallas, Fort Worth and Texas leaders to continue to invest in the airports reinvention has produced remarkable results.

Since 1964, Port Columbus International Airport has been the headquarters of the nation’s fi rst aircraft charter company, now called NetJets. Knowing that NetJets was developing plans for a significant expansion of their charter and fl ight training services, the airport management approached the company to see what the airport could offer to keep NetJets based in Columbus. By working with NetJets, the airport was able to incorporate new buildings, parking areas and runway improvements into their facility expansion plans accommodating every requirement necessary for the company to continue operations at Port Columbus.

Regional Airport System Integration Smaller airports have unique challenges when it comes to maintaining viability, particularly today, when more than 100 airports have lost scheduled commercial service. Sarasota International Airport (SRQ) demonstrates a unique and successful approach to enhancing a small airport’s economic environment. The airport combined its conventional airport fee abatement and marketing assistance program with a demonstration to air carriers that when an airline is located at SRQ, its market share also increases at nearby Tampa International Airport (TPA).

passenger ticket purchases more convenient. If the price or schedule options did not fit the travelers’ needs, they could use a simple dropdown menu on the airline’s website and check the TPA flights and schedules, which had a wider range of selections. This option enabled local residents to use SRQ more often and provided a loyal base of flyers for new airlines serving SRQ. It also enhanced the airline’s market share at TPA, since the SRQ traveler stays on the particular airline website to make the fi nal purchase. Through their website, SRQ was able to offer consumers an added level of convenience and a reduced level of stress in the ticketing experience than was provided by the larger airport facilities in the region.

Conclusion Do we have the ability to be forward thinking and imaginative outside of the usual comfort zone? Should we start creating our teaming partnerships with regional planners, fi nancial forecasters and master developers? If so, when? Do we continue to follow “today’s accepted methods” without looking at the possibilities associated with “thinking like a business”? These are particularly important questions and opportunities now, while the market is more open to fundamental change. Some airports with constrained sites may look to partnering more closely with their region to offset their physical boundary limitations. Other fortunate airports that have large sites may be able to establish off-setting revenue sources by developing non-aeronautical activities on airport property. In addition, regional partners can combine the assets of more than one airport in a region to enable all parties to benefit. The solution for every airport is different. It’s up to each airport and their consultants to determine the most well suited solution for their unique circumstances.

SRQ fi rst enhanced their website, then added travel planners and live flight tracking to make

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MEMbER sPotliGHt

acc ExEcutivE MEMbER

L ANDRUM & BROWN, INC.

11279 Cornell Park Drive Cincinnati, OH 45242 Phone: (513) 530-1235 Fax: (513) 530-1277 www.landrum-brown.com

L

andrum & Brown, Inc. offers the full range of aviation consulting capabilities, with personnel providing comprehensive airport planning, program defi nition and approval, operational, fi nancial, management, and strategic support services. Supported by a reputation for leadership, innovation and technical expertise, L&B’s capabilities, resources, credibility, experience, and relationships are unparalleled.

L&B has experience at airports large and small from locations as diverse as Chicago, Los Angeles, New York to Beirut, Mumbai, Beijing, and Sydney; along with smaller airports like Redmond, Eugene, Grand Canyon, Puerto Rico, American Samoa, and the U.S. Virgin Islands. Throughout the world, L&B is addressing critical environmental, fi nancial, economic and community considerations by providing key support to airport operators to balance the needs of today’s fi nancially strained airports and airlines with the ongoing globalization of the aviation industry.

L&B’s technical resources and innovative leadership are recognized by major regulatory agencies at the federal, state, and local levels. L&B is relied upon for guidance on a wide range of issues affecting the national air transportation system, from noise abatement and mitigation to regional demand allocation and airport access by every mode of ground transportation. With a continued commitment to provide the highest quality consulting services, L&B’s expanded portfolio of services includes, but is not limited to: • Airport Master Planning • Airfield Planning

• Landside Planning • Environmental Planning • Financial Planning

• Aviation Demand Forecasting • Capital Program Funding Analyses • Program Defi nition and Implementation Support • General Planning/Management Services

Consulting, Spring 2009

In short, L&B is about results, credibility, stakeholder relations, and technical excellence. The firm has consistently delivered for virtually every major air carrier airport in the U.S. and dozens of airports of all sizes throughout the world. L&B recognizes airports as critical contributors to the economic vitality of the communities they serve and the vital links in the global air service network. This philosophy is reflected in every one of our assignments.

• Terminal Planning

• Cargo and Support Facility Planning

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Combined, these specialized resources provide L&B with the unique capability to assist with the full scope of large-scale project implementation — from plan conception and design, through airline/tenant negotiations, fi nancing, and environmental approval to management of the new facilities.

L&B employs over 100 aviation specialists, with senior staff averaging over 20 years experience. Headquartered in Cincinnati, the fi rm has offices in Boston, Chicago, Kansas City, Los Angeles, Orange County (CA), Orlando, San Francisco, Melbourne (Australia), Hong Kong, and Shanghai. Prepared by Catherine Butcher, Marketing Manager


acc associatE MEMbER

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A DVA N C E T E S T I N G C O M PA N Y, I N C .

3348 Route 208, Campbell Hall, NY 10916 Tel: (800) 808-3868 Fax: (845) 496-1398 E-mail: sales@advancetesting.com Web: www.advancetesting.com

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nywhere a building, bridge, road or runway is constructed, inspection of the materials provided and their incorporation into the work is vital to ensuring the safety, serviceability, and durability of the structure.

Whether the inspection objectives are to support the owner’s intent as conveyed through the engineer’s design, the architect’s drawings, or the agency’s standard specifications; whether the inspection jurisdiction is the local building code, the contractor’s quality control plan, or the supplier’s production requirements– the inspector is front-line assurance that the contractor supplies the owner or agency with the product desired. The role of Advance Testing’s inspectors is to ensure that, despite aggressive scheduling, material variability, potential for human error and pressures of cost, the job gets done the way it’s supposed to. Founded in 1984, Advance Testing is a fullservice construction materials testing and inspection fi rm, with offices located in Campbell Hall, NY, Enfi eld, NH and West Stockbridge, MA. Advance Testing provides high quality services for a variety of contractors, agencies, and authorities on commercial and municipal construction projects that include major metropolitan airports, interstate highways, bridges, tunnels,

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warehouses, waste water treatment facilities, correctional facilities and others. Advance Testing’s services include both overall inspection of construction practices and specific materialsrelated testing for asphalt, aggregates, concrete, soils, and structural steel in an AASHTO and NVLAP accredited laboratory. Renowned by its clientele for its seamless integration of technological innovation and sound construction material engineering experience, Advance Testing maintains a highly qualified, diversified, and dedicated testing and inspection staff, so the owner or contractor can rest assured that project objectives are met without sacrificing quality in the process. With access to the latest and most innovative devices available to the materials testing industry, Advance Testing outfits each inspector and technician with the necessary components to deliver time-sensitive information directly to its clients, supplying the critical link of effective quality control: using sound information to make real-time decisions that directly impact quality.

materials testing expertise for aggregate, concrete, and hot mix asphalt pavements used on runway projects at numerous airports including John F. Kennedy, LaGuardia, Newark, Stewart International, Teterboro, and Logan. In addition, Advance Testing staff have presented at the annual FAA Eastern Region Paving Conference, reviewing best paving practices and relevant specifications. With more than 25 years serving a variety of public and private sector clients throughout the Eastern seaboard and beyond, high quality accredited laboratory facilities, and a dedicated and qualified pool of certified inspectors, Advance Testing is the choice for quality materials testing and inspection services. Prepared by Richard Hamilton, Technical Services Manager, Advance Testing Company, Inc.

While each job presents its own unique challenges, Advance Testing is consistently able to meet and exceed its client’s expectations in terms of staffi ng and performance. Advance Testing has extensive experience in FAA specifications and laboratory procedures and has provided

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acc EvEnts PHoto REviEW

A Milestone Celebration of Past Success, Perspectives for an Innovative Future NOVEMBER 10 – 12, 2008 // DON CESAR BEACH RESORT // ST. PETE BEACH, FL: Annual

Conference attendees were better prepared for 2009 because of practical sessions addressing the industry’s most relevant concerns. Featuring expert insight from consultants, airports, airlines, agencies, and international colleagues, as well as great opportunities for networking, the conference truly emphasized teaming as a crucial factor to future success in aviation.

2008 BOARD OF DIRECTORS CHAIR AWARD David Peshkin (left), Applied Pavement Technology, Inc., recipient of the 2008 Board of Directors Chair Award; Mike DeVoy, RW Armstrong, 2008 ACC Board of Directors Chair.

GOLF TOURNAMENT WINNERS — BEST FOURSOME (Left to right) Jack Norton, Lea+Elliott, Inc.; Mitch Chokas, CDM; Blair Hanuschak; Walter P. Moore & Associates; Frank Pervola, ADT Security Systems, Inc.

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Consulting, Spring 2009

THE OTHER NEW ADMINISTRATION Mike DeVoy (left), RW Armstrong, 2008 ACC Board of Directors Chair hands the gavel to Evan Futterman, Futterman Consulting, Inc., 2009 ACC Board of Directors Chair.

AVIATION AWARD OF EXCELLENCE Jack Norton (left), Lea+Elliott, Inc., 2008 ACC Awards Committee Chair and Gina Marie Lindsey, LAWA, recipient of the 2008 ACC Aviation Award of Excellence.


A WARM WELCOME (Left to right) Noah Lagos, St. Petersburg-Clearwater International Airport provides a light-hearted welcome to St. Pete Beach as Paula Hochstetler, ACC President; Mike DeVoy, RW Armstrong, 2008 ACC Board of Directors Chair and Marisol Elliott, PBS&J, 2008 ACC Annual Conference Committee Chair look on.

INFORMATIVE PANELS (Left to right) Panelists Robert Brancheau, Greater Orlando Aviation Authority; Lou Miller, Hillsborough County Aviation Authority; Paula Hochstetler, ACC President; Moderator Bob Bielek, TranSystems Corporation; and Marc Gambrill, Broward County Aviation Department.

CONFERENCE ORGANIZERS Marisol Elliott (left), PBS&J, 2008 Annual Conference Committee Chair with Brenda Tillman, RW Armstrong, Vice Chair.

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ACROSS THE POND TEAMING (Left to right) Paula Hochstetler, ACC President; Alan Regan, Buro Happold, representing the British Aviation Group; Mike DeVoy, RW Armstrong, 2008 ACC Board of Directors Chair.

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out & about WitH acc

ACC Meets with Obama Transition Team

61st Annual Wright Memorial Dinner

ACC hosted a table at the 61st Annual Wright Memorial Dinner of the Aero Club of Washington in mid-December, where many ACC members were in attendance. The

2009 ACC Board of Directors Chair Evan

evening featured Mr. Norm Augustine receiving the 2008 Wright Brothers Memorial

Futterman, Futterman Consulting, Inc.,

Trophy to for his lifetime of service to the aerospace industry as a professor, member of the Defense Department, and Chairman and CEO of Lockheed Martin.

ACC President Paula Hochstetler and ACC Vice President T.J. Schulz met with Duane Woerth of the Obama DOT Transition

Hochstetler attends 23rd Annual Aviation Issues Conference

team and discussed recommendations on

ACC President Paula Hochstetler attended the 23rd Annual AAAE Aviation Issues

the economic stimulus package and the

Conference held January 11 – 15 in Kona, Hawaii. This meeting provided an informal setting for aviation professionals to openly discuss the most important issues facing the

Administration reauthorization.

new Obama Administration, Congress and the industry as a whole in 2009.

SUMMER WORKSHOP S E R I E S

Partners in in Transition Transition Partners

July 15 – 16, 2009

Arlington, VA

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Consulting, Spring 2009

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Crowne Plaza, Washington National Airport

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ACC Committee Meetings July 14, 2009


out & about WitH acc

ACC/TSA Interface

ACC Involvement in ACRP

ACC President Paula Hochstetler attended

On behalf of the ACC membership, ACC President Paula Hochstetler attended the

a TSA invitation-only workshop entitled

all-day TRB Airport Cooperative Research (ACRP) Airport Industry Outreach East Coast

Identity-Centric Personnel Tracking for

Workshop where future potential research ideas were discussed and prioritized.

Airport Safety and Security. The technical information featured during the event was conveyed to the ACC Safety & Security committee members. In addition, Paula was joined by Solomon Wong, InterVISTAS, ACC Safety & Security Chair at TSA Headquarters for the TSA Transportation Sector Network Management (TSNM) Airports Conference Call that included 57 airports.

Success should be a non-stop pursuit. At URS, we believe that when you put your experience to work, you uncover solutions that move people forward.

NEPA Essentials Workshop

Today, as the requirements of the air transportation business continue to grow and change, our ability to help

Immediately following the 30th ACC Annual Conference & Exposition, ACC co-sponsored the ACC/ACI-NA/FAA NEPA

our customers meet their goals across all aspects of a project’s life cycle is unmatched. Which is why, whether

Essentials Workshop held November 13 –

it’s a terminal expansion, a runway, communications and

14 in Tampa, Florida. Nearly 80 attendees

security systems or landside improvements, more people

were present to learn the basics behind the latest efforts in National Environmental

are turning to us to get it done. We are the new URS.

Policy Act (NEPA) compliance. Expect a follow-up event in 2009!

POWER INFRASTRUCTURE FEDERAL INDUSTRIAL & COMMERCIAL URSCORP.COM

www.ACConline.org

13


acc MEMbERs

New Members Executive Members AIRPORT SAFETY CONSULTANTS, LLC Mr. Benedict D. Castellano, Principal 209 Heatherbloom Tr., Gambrills, MD 21054 Tel: (443) 845-4287 E-mail: ben.castellano@airportsafetyconsultants.com Web: www.airportsafetyconsultants.com Available for airport safety and certification assessments; training airport personnel in airport certification; preparation of airport emergency plans; as well as safety management programs.

BELUJANE KONZULT Mr. Chris Aligbe, Chief Consultant/CEO NO. 40 Unity Road Off Mobolaji Bank Anthony Way Ikeja, Lagos Nigeria Tel: 23417261987 E-mail: chris_belujane@yahoo.com Web: www.belujanekonzult.com Belujane Konzult provides consultancy services to airports on zero-funding approaches for upgrading facilities and infrastructure. It specializes in innovative branding at airports and start-up airlines.

LANDRY CONSULTING Ms. Joanne Landry, Owner/Managing Consultant 4433 28th PL West, Seattle, WA 98199 Tel: (206) 714-7663 E-mail: joanne@landryconsultants.com Web: www.landryconsultants.com

14

trench drain system (www.slotdrain.com) has been designed in conjunction with airport engineers specifically for use on airport projects. Elkington Gatic is well known for its specialist range of GATIC 2000 engineered access and trench covers, and drainage gratings. The company is a trading division of The Alumasc Group plc.

PRIVA TECHNOLOGIES, INC. Mr. Charles R. Chambers, Executive Vice President 1615 L Street NW, Suite 910 Washington, DC 20036 United States Tel: (202) 739-1687, Fax: (202) 833-3183 E-mail: cchambers@priva-tech.com Web: www.priva-tech.com Founded in 1999, Priva Technologies, Inc. is a privately-held corporation that specializes in developing advanced hardware and software-based authentication security platforms for the government, transportation, enterprise, and consumer markets. Priva’s flagship product, The Cleared Security Platform, is the most comprehensive and powerful authentication solution available today. The company is headquartered in Chicago, IL with research and development in Annapolis, MD, and Cupertino, CA and government relations in Washington, DC.

PRODUCTIVE SOLUTIONS Ms. Dawn E. Lucini Vice President, Business Development 59 Damonte Ranch Parkway #B-339 Reno, NV 89521 Tel: (775) 322-5700, Fax: (775) 322-5803 E-mail: dlucini@productivesolutions.net Web: www.productivesolutions.net

Landry Consulting is a small woman owned business providing consulting and program/project management services. Landry Consulting delivers fit-forpurpose solutions including Safety Management Systems that are scalable and focused on client’s needs. Its success is a result of on-site collaboration, industry best practice research, relevant and well-authored documentation. It delivers practical solutions, solid recommendations, and usable documentation; its goal is to enable clients to succeed.

Productive Solutions provides airports with the Aviation Security Platform (ASP), a software solution which allows for single entry of data to populate across multiple security systems. ASP is FIPS 201 compliant and is wholly compliant with applicable TSA security directives.

Associate Members

Participating Members

ELKINGTON GATIC Mr. Peter Burnap, Commercial Director Hammond House, Holmstone Road Dover, Kent, CT170UF United Kingdom Tel: +441304203545, Fax: +441304215001 E-mail: acp@gaticdover.co.uk Web: www.slotdrain.com

FLORIDA AIRPORT COUNCIL Mr. William R. Johnson, Executive Director 250 John Knox Rd. Suite 2 Tallahassee, FL 32303 Tel: (850) 224-2964, Fax: (850) 681-6185 E-mail: bill@floridaairports.org Web: www.floridaairports.org

Elkington Gatic is internationally renowned for the manufacture and supply of engineered access and trench covers, and surface water drainage products. The company’s worldwide reputation has been established through nine decades of product supply and performance on prestigious airport projects worldwide. The Gatic Slotdrain modular

FAC is the “voice of airports” in the state of Florida. Its membership consists of Florida’s publicly owned and operated airports and more than 200 corporate, education and associate members.

Consulting, Spring 2009

ACC Updates Between November 2008 and February 2009, ACC released e-mail supplements to this publication. These supplements are also available at www.ACConline.org.

Legislative News LN 8-12

• Airport Funding Included in Stimulus; Bill Possible Early Next Year • FY 2009 Appropriations Plan in Place • DOT/DHS Transition Status

LN 8-13

• ACC Meets With President-elect Obama’s DOT Transition Team

LN 8-14

• House T&I Committee Stimulus Proposal Includes $5.25 Billion for Aviation

LN 9-01

• House Democrats Release Stimulus Proposal; Includes $3B in AIP, $500M for TSA • Correction Clarifying Local Matching

LN 9-02

• House Approves Stimulus Bill; Senate Proposal Under Consideration

Regulatory News RN 8-05

• FAA Issues FY 2009 Entitlements & Apportionments Through March 6, 2009

RN 8-04

• FAA Issues AIP Grant Procedures through March 2009


And the Winner Is…

On the Move BRUCE LOEV, P.E., has joined URS’ Phoenix office as Principal Airport Engineer, where he will serve as Senior Project Manager on airport development projects and assist aviation business development activities in the west. Mr. Loev has 23 years experience managing airport planning and engineering development projects worldwide, ranging from multi-billion dollar redevelopment programs at major international hub airports to improvements at general aviation and regional commuter airports. ARORA ENGINEERS, INC. has expanded its New Jersey offices. Arora’s new offices have relocated to One Gateway Center in Trenton, NJ — in close proximity to clients in the New York Metropolitan Area. EVAN MCDOUGAL has joined Hoyle, Tanner & Associates, Inc. as Manager, Aviation Planning — North and will work out of the fi rm’s Portsmouth, NH office. McDougal will use his strong background in military and civilian aviation to further develop and enhance the planning component of the Hoyle, Tanner Aviation Services Group. WILLIAM VINYARD, AIA, has joined Giuliani Associates Architects, Inc. as Design Principal of its Alexandria, Virginia office. Mr. Vinyard brings twenty-five years of

design expertise, executing large-scale government, commercial, transportation, institutional, and academic projects throughout the United States and overseas. BRIAN J SANTIESTEVAN has joined All About Pavements, Inc. as a Project Engineer in their Ashburn, Virginia office. ALL ABOUT PAVEMENTS, INC. has opened

new offices to provide services to their Pacific Coast clients in Hawaii. Their new office location is 94-1221 Ka Uka Blvd., Waipahu, Hawaii 96797. MR. TIM STRICKLAND, MR. RYAN RENARDO, and MR. LUCA DELVERME, P.E. have all as-

sumed new positions at AVCON, INC. Mr. Strickland joins the fi rm as a CADD Technician with expertise in aviation planning and design as well as private and municipal development and will work out of the fi rms Niceville, FL office. Mr. Renardo joins AVCON as a Junior Project Engineer and will support the firm’s Land Development team from its corporate offi ces in Orlando, FL. Mr. DelVerme has worked for AVCON for 5 years, but was recently promoted to Senior Structural Engineer. He will assume the responsibilities of a group leader in the AVCON Structural Department.

GET YOUR GUIDE Invaluable resource!

MEAD & HUNT, INC. received a 2008 Airport Safety Award from the FAA Great Lakes Region for its work at La Crosse Municipal Airport in La Crosse, Wisconsin. The fi rm’s designs for runway reconfiguration at the airport met the FAA safety requirements and decreased the probability of incorrect runway departures. In addition, Mead & Hunt also received a 2008 Outstanding Achievement Award for Environmental Documentation for work on Runway Safety Area Improvements at General Mitchell International Airport in Milwaukee, Wisconsin. Mead & Hunt’s comprehensive environmental document satisfied FAA requirements for the proposed improvements which are planned to be complete by 2013. REVEAL IMAGING TECHNOLOGIES, INC., a privately held company that provides industry-leading threat detection products and services, was named as a recipient of Frost & Sullivan’s 2008 Excellence in Customer Value Enhancement Awards for its ability to respond to its airport security customer base and provide value-added services that ensure strong return on investment (ROI). GLIDEPATH LLC has won a contract to design, manufacture and install a new integrated baggage handling and security screening system at Nashville International Airport in Tennessee. The $32 million security project, due for completion in 2010, will see the company working alongside airport architects, Gresham, Smith and Partners, and local contractor Messer Construction Co., to design and build a technologically advanced new system for sorting and detecting explosive devices and compounds in checked baggage.

The Quick Reference Guide for Airport Consultants is a compilation of information from a variety of sources that airport consultants regularly use. The information compiled in this handbook was chosen based on input from ACC members and includes: • Common Acronyms

• Aircraft Details

• Select FAA AC’s

• Fleet Details

• Excerpts from FAA AC 150/5300-13

• FAA Contacts

• Airport Codes (US & Canada)

• Airline Designations

• Airport Statistics • Airport Diagrams

PURCHASE YOUR COPY >>>

• ACRP Info • …and more

CONTACT: John Reynolds, ACC Coordinator of Communications PHONE: (703) 683-5900 or E-MAIL: JohnR@acconline.org


covER stoRY SELF SERVICE continued from page 1

of terminal spaces, equipment, and functions. While sharing passenger processing functions has fostered major changes, the most visible effects in the terminal environment are being created by the expanded use of self-service processing.

Automated Passenger Check-in Automation now provides passengers with a number of new check-in options to the traditional airline ticket counter. Self-service kiosks offer passengers the ability to check-in and print their own boarding passes. Passengers can check in at the airline’s dedicated self-service kiosks, typically installed near ticketing counters, or from Common Use Self-Service (CUSS) kiosks that serve more than one airline. CUSS kiosks have passed the adoption curve and are found at a growing numbers of airports. IATA reports that 132 airports worldwide are currently offering CUSS kiosks and self-service kiosks account for 60 percent or more of today’s checkin transactions. Driven by the need to reduce costs, and an increasing reliance on off-airport check-in, airlines are increasingly retiring their own kiosks in favor of CUSS kiosks. The primary result of self-service kiosks on airport terminals is a decrease in the number of airline check-in counters required for a given number of passengers. Gradually, the number of airline self-service and CUSS kiosks will reach and exceed the number of check-in counters. In new terminals, there is generally a layout preference for open space in front of the counters to accommodate clusters of kiosks, rather than inserting them in to traditional check-in desks. Such examples can be seen in Heathrow’s new Terminal 5 and at Delta Air Lines’ check-in area in Atlanta.

On-line and Cell Phone Check-In In recent years, it’s been possible for passengers to use a computer to check-in via the Internet from homes and business. The convenience of on-line check-in has resulted in completely changed passenger expectations of what the airport check-in experience is all about. In 2008, several airlines in the US and internationally began allowing check-ins from cell phones. In a further step, some airlines — led by Continental — now offer a mobile bar-coded boarding pass (mBCBP) delivered directly to a cell phone, eliminating the need for a paper boarding pass.

16

Consulting, Spring 2009

“For the first time ever, a boarding pass issued by any airline will be readable by any other airline, airport, or government body.” Under the auspices of International Air Transport Association (IATA), the airlines in the last few years agreed on a standard for 2D barcodes and most have already implemented this standard or will do so in the near future. This collective airline industry achievement is most impressive. For the fi rst time ever, a boarding pass issued by any airline will be readable by any other airline, airport, or government body. This collaboration will allow further automation to be implemented at airports by making the boarding pass a universal document, readable for more functions at multiple touch points during the entire passenger journey.

Automated Baggage Drop While passenger check-in has become more automated, the baggage drop function is still

largely what it was 50 years ago: wait in line for a uniformed agent to weigh your bag and apply a label to it. Automated baggage drops are beginning to shift this task from the agent to the passenger without substantially increasing the time spent by passengers in the terminal. Remote baggage service continues to slowly increase as IT technologies are developed to allow passengers to drop their bag without having to interact with an agent. The use of permanent radio frequency identification (RFID) labels is one of the more attractive technologies being studied for this capability. The cost of RFID bag tags continues to decline to a point where an increasing number of airlines and airports are turning their attention to the technology. Airports outside of the US are increasingly shifting to self-tagging procedures using bag tags issued at the self-serve kiosk. Air New Zealand and Emirates are amongst airlines that have recently deployed innovative airport processes, relying on RFID identification and automated bag drop to do so. Las Vegas remains the prime North American showcase airport in terms of RFID implementation. Self-tagging baggage drops will have the most transformative impact on airport terminals since the advent of the self-service kiosk. Automating the bag drop brings improvement in customer experience, staff reduction, and increased passenger handling capacity at the terminal. It also


reduces the security risk inherent at overcrowded terminals. Another revolutionary idea that could have a major impact in time is a baggage shipping service that United Airlines has recently launched in partnership with FedEx. As easily as one can print a FedEx label at home today, it would be just as simple to print a bag tag at home and drop the bag at the airport. Consultants have a vital role in learning about and, as appropriate, supporting and promoting the adoption of these and other types of forwardlooking solutions.

Automated Security Checkpoint In response to the airlines’ deployment of cell phone check-in, Transportation Security Administration (TSA) has authorized a number of security pilot programs at large airports in Houston, Chicago - O’Hare, and Los Angeles. Under the name Boarding Pass Scanning System (BPSS), barcode scanners are deployed at the security checkpoint, enabling the aforementioned 2D barcode on a paper boarding pass or cell phone to be read and validated. It is anticipated that additional airport security checkpoints will be equipped by TSA in 2009. While this deployment is initially driven by the airlines and TSA, it will inevitably have an impact on airport layout and IT infrastructure. It is an exemplary case of cooperation between government and industry, with substantial gains in customer service. Future evolutions will most likely include the addition of automated ID check and connectivity with airlines host systems, and the possibility of moving through the checkpoint with only a frequent flyer card, an innovation already implemented by Air New Zealand.

Automated Boarding Automated access control gates are becoming a more common sight at jet bridge entrances in Europe and Asia. Lufthansa is a notable leader in the field. While the trend has long been judged too futuristic or expensive by North American airlines and airports, it has gained increased interest in the last 18 months and is expected to be implemented in the US in the near future. Airlines, on average, employ between one-and-a-half and two agents per flight at the gate. Automated boarding technology allows this number to be reduced to one. Airlines are increasingly offering frequent passenger priority

www.acconline.org

lanes at boarding where an automated gate would be ideal. The technology can also be shared between multiple airlines, making it an attractive airport feature. This is yet another important technology that consultants can promote as a key component shaping tomorrow’s airport and driving the adoption of transformative technology.

Automated Arrival At leading US airports, constant staffing represents a cost of three million US dollars per year to handle arriving passengers, which is typically spread among the airlines. Much of this funding is wasted with seemingly little attention being paid to what may be an easy and affordable solution. As passengers land and move through the rotating door between airside and baggage claim, a security agent is posted near the door to ensure passengers do not go back the wrong way. Automated technology in the form of anti-reflow gates are available

“Airlines employ between oneand-a-half and two agents per flight at the gate. Automated boarding technology allows this number to be reduced to one.” today with a fast return on investment (ROI), improved reliability, and security. The challenge for consultants is to find the right stakeholder willing to fund a solution that impacts the entire airport community.

Paving the Way for Tomorrow’s Airports A notable revolution is underway with the advent of Common Use Passenger Processing Systems (CUPPS), the new standard driven by the Airports Council International (ACI) and IATA which will provide uniform specification for common use systems. Pilot programs are planned in several locatons in 2009, including airports in Orlando and Las Vegas. The anticipated outcome is a broader acceptance of common use systems at airports worldwide

The nature of IT is such that we continue to see performance improvements and unit cost reductions on a regular basis. Processors are faster, memory is larger and less expensive, and software applications are more elaborate. To thrive in these dynamic times, airport consultants must cultivate a vision of innovation and feasibility. They must stay current with the latest developments and newest systems and determine which of the systems and processes will make passenger travel easier, safer, and more affordable. This requires consultants to identify, specify and promote a balance between the most cost effective and best technologies. Consultants must also help to craft a picture of the new terminal or retrofitted area many years before commencement of operations. They must recognize that some technologies may only be emerging today, but will be commonplace years from now. These technologies are likely to emerge at a faster pace than in the past, and will change the terminal layout and the way passengers use the terminal. Automating security, baggage drop, and boarding are among the trends that are inevitable and require consultants and vendors to share vision, courage, and knowhow. The future of airports is exciting. Herve Muller is IER’s General Manager in the Americas where he works with many of the region’s leading airlines and airports on implementing the technologies that will change passenger processing in tomorrow’s airport. He has worked in the field of airport IT for the last 15 years.

17


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ACI/ACC/AGC Project Delivery Summit IV June 3 – 4, 2009 ~ Savannah, Georgia

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ACC/ACI-NA/FAA Planning & NEPA Courses November/December, 2009 ~ location tbd 3392 Gatic Portrait2

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aftER all

Airport Business in a Post-Stimulus Market In a RECOVERING, but still uncomfortable financial market, YOU are your firm’s most LUCRATIVE asset…

T

he outlook for airport development opportunities in 2009 is challenging. While the overall transportation market experienced an unexpected surge in proposal opportunities in the final quarter of 2008, airports were the only transportation submarket still suffering a net loss. In the past, weakened markets have been conducive to industry-wide mergers and acquisitions (M&A). However, many within the industry do not foresee much M&A activity — if any — until 2010.

Clearly, much is riding on the pending economic stimulus package. Despite the reassurance a stimulus will provide, it is doubtful that it will be strong enough to offset the negative psychological remnants of the economic downturn. Mid-level firms will likely lack the comfort needed to reach into their pockets to increase their assets. Even if the industry outlook becomes more positive, these firms may avoid risk, hunker down, and not stretch themselves until there is comfortable distance from recent economic trends. On the other hand, some companies might be opportunistic about increasing their corporate assets. These firms have a strong balance sheet and made corporate moves prior to the stimulus with no ill effects. They may find the combination of the stimulus influx, in addition to volatile stock holdings and agreeable purchase prices, as a chance to grow. As one executive at a multi-faceted aviation firm recently stated, “the weak are going to be weaker, and the strong will be stronger.”

20

Consulting, Spring 2009

However, in an industry that constantly needs qualified staff, strength means more than market share and financial gains — it means the value and expertise provided a firm by its high-level, experienced employees. Recent years showed significant frequency of M&A activities in the architectural/engineering industry, due largely to high valuations and attractive sell-offs by privately held firms. Since then, valuations for firms — both public and private — have declined significantly. Recent trends display a shift that reflects the current makeup of the airport business workforce: the occurrence of mergers and acquisitions is motivated less by financial gain or increase in market share and more by gaining valuable, experienced staff. In the midst of financial crisis and a weak global economy, it is succession planning and ownership transfer that have come to the forefront, and the inherent value in retaining high-level employees has become a firm’s most lucrative asset. Between firms seeking to add and retain the best people and a more tenable market for some firms to act, the immediate future will likely see familiar names printed on different business cards. Firms and the employees must view this as an opportunity to show their value and act accordingly. Some believe this new dynamic will lead to a decrease in M&A action in the near future, given the strong possibility that firms seeking high-level, valued employees will avoid M&A completely and try to fill such roles individually. By acquiring individuals and

not firms, and being able to offer strong incentives unavailable to those employees in their current position, firms offer potential employees a safe option to leave a secure position in an insecure job market. Making the right decisions in contracts with high-level employees and shareholders is crucial for their retention. Moreover, respect of the existing corporate culture and showing opportunity, support and encouragement to the new staff help ensure that employees who made the move worthwhile don’t leave. In such a fragile market, much of the M&A activity that occurs may be dilutive. Without significant increases in market share or profitability, the assets in these moves are strong, highly-valued employees and the biggest risk is that assets leave. “We buy people and backlog,” said another executive, “and we spend due diligence to make sure the people don’t leave.” Consultants and other aviation employees should realize their value. Mergers and acquisitions that occur in this era when the people of the aviation firms are their most lucrative assets will be less about cost-cutting and corporate layoffs and more about keeping a firm sustained through retaining and adding valuable staff. Profitability will always be a primary goal, and new employees should understand that. Yet, now more than ever, they should have a positive outlook until they are proven wrong, realize the opportunities and resources available to them, and know that they are the asset that could make or break a deal.


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