Airport World, Issue 6, 2013

AIRPORT WORLD DECEMBER 2013-JANUARY 2014

In the spotlight: People/Human resources Airports: Bahrain, San Francisco & Sydney Special report: Retail innovation Plus: IT trends, security & the environment

THE MAGAZINE OF THE AIRPORTS COUNCIL INTERNATIONAL

People power December 2013-January 2014 Volume 18 Issue 6 www.aci.aero

OPINION ;OL THNHaPUL VM [OL (PYWVY[Z *V\UJPS 0U[LYUH[PVUHS

Airport World Editor Joe Bates +44 (0) 20 8831 7507 joe@airport-world.com Deputy Editor Caroline Cook +44 (0) 20 8831 7560 caroline@airport-world.com Design, Layout & Production Mark Draper +44 (0) 20 8831 7504 mark@airport-world.com Andrew Montgomery +44 (0) 20 8831 7564 andy@airport-world.com Erica Cooper erica@aviationmedia.aero Website Design & Production José Cuenca +44 (0) 20 8831 7517 jose@aviationmedia.aero Sales Director Jonathan Lee +44 (0) 20 8831 7563 jonathan@airport-world.com Advertising Manager Kalpesh Vadher +44 (0) 20 8831 7510 kalpesh@airport-world.com Andrew Hazell +44 (0) 20 8831 7518 andrewh@airport-world.com Subscriptions Lauren Murtagh +44 (0) 20 8831 7512 subscriptions@airport-world.com

Published by Aviation Business Media Ltd 26-30 London Road Twickenham, TW1 3RW, UK Fax: +44 (0) 20 8891 0123 Managing Director Jonathan Lee

Airport World is published six times a year for the members of ACI. The opinions and views expressed in Airport World are those of the authors and do not necessarily reflect an ACI policy or position.

ISSN: 1360-4341 The content of this publication is copyright of Aviation Business Media and should not be copied or stored without the express permission of the publisher.

USA Mailing Agent, Clevett Worldwide Mailers, 19 Route 10 East, Bldg 2 Unit 24, Succasunna, NJ 07876. Subscription price $125. Periodicals postage paid at Dover, NJ 07801.

Postmaster please send address changes to Airport World, 19 Route 10 East Bldg 2 Unit 24, Succasunna, NJ 07876.

Printed in the UK by The Magazine Printing Company using only paper from FSC/PEFC suppliers www.magprint.co.uk

People power Airport World editor, Joe Bates, reflects on the important role frontline staff play in helping determine an airport’s image and reputation.

I

n today’s highly competitive environment where a good ‘airport experience’ could make the difference between a visitor buying something from a shop/restaurant or ultimately ever returning, the role played by frontline staff cannot be underestimated.

A friendly smile and welcome at check-in is always a good start, but how many times have you disappointingly been met by a seemingly overworked member of staff who cannot get rid of you quick enough?

Next comes the part of the journey that many find most stressful – partly down to the attitude of staff – security.

And if this takes forever or is punctuated by perceived rudely made ‘demands’ to do this or do that by employees who appear to be relishing their position of power, the airport experience is suddenly not so enjoyable.

Other areas where airports often let themselves down in terms of customer service is immigration and customs control, where long queues, lack of information and then expressionless officers behind desks make the entire process extremely unfriendly. Although airports have no direct say in these processes as they are invariably carried out by government agencies, surely it doesn’t have to be this way, and more can be done to make things more welcoming?

I suppose the point I am trying to make here is whether airports are truly aware of the key role airport employees play in people’s journeys, or that staff are arguably their most important asset?

I honestly don’t know the answer, but I am glad to say that an ever-increasing number

are beginning to recognise and reward staff that go the extra mile for the customer.

They include Singapore Changi, Dubai International Airport, Hong Kong and Aéroports de Montréal (ADM), all of which have introduced awards that recognise staff excellence. Indeed, Dubai’s include the Mega Star Performer (annual), Star Performer (quarterly) and Shooting Star (on the spot) awards which recognise “outstanding employee achievements and dedication”.

Another to recognise the huge impact staff behaviour can have on the ‘airport experience’ is Copenhagen, which has transformed its airport security experience by insisting on a more friendly style of screening that involves staff making eye contact with passengers and actually striking up a conversation!

While on a bigger scale, Gatwick has totally transformed its corporate culture since being bought by Global Infrastructure Partners (GIP), and now claims to be more passenger focused and aware of cultural differences than ever before.

Individual efforts like these are, of course, supported by ACI World in terms of its global training programmes and initiatives such as the Airport Service Quality (ASQ) customer satisfaction programme and its newly launched PassengersPlus initiative, which is specifically designed to promote global service excellence.

You can read about most of the above in this ‘people/human resources’ themed issued of Airport World, where we also learn more about leadership challenges and reflect on staff participation in a number of charity events/fun days.

Finally, as it is our last issue of 2013, I would like to take this opportunity to wish you season’s greetings and all the best for a healthy, wealthy and happy New Year! AW

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

3

Take your piece of Vienna’s cake: Millions of Hungarian, Czech, Slovak and Austrian passengers.

Treat your airline with a luscious speciality, available only in Vienna: Thanks to our location in the heart of Europe we are the home airport for millions in 4 countries. For more details scan the QR code or visit www.viennaairport.com/cake

CONTENTS

Issue 6 Volume 18

In this issue 3

Opinion

8

News

10

ACI News

13

View from the top Director general, Angela Gittens, reflects on the 100th anniversary of commercial flight, training initiatives and the fact that aviation is a ‘people business’.

14

Fantastic journey San Francisco International Airport’s long-serving boss, John Martin, talks to Joe Bates about infrastructure development, traffic growth and his gateway’s impressive green credentials.

20

Busy Bahrain Caroline Cook spoke to Mohamed Yousif Al-Binfalah, CEO of Bahrain Airport Company, about the airport’s development plans.

22

Ready and willing While the politicians are talking about a new airport for Sydney, Kerrie Mather, CEO of the existing one, is getting down to the business of running Australia’s busiest gateway.

Lucy Siebert reports.

24

Culture Club Tina Oakley, HR director of London Gatwick, talks to Sarah McCay about the airport’s new corporate culture and its positive impact on the passenger experience.

26

Learning curve ACI World’s training programmes are designed to develop airport employees from top management to frontline staff, writes Kevin Caron.

28

Spotlight on leadership Dr Richard Plenty and Terri Morrissey reflect on the highlights and lessons learned from the third annual Airport Leadership and Change Management Forum in Bologna.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

5

CONTENTS

Director General Angela Gittens Chair Yiannis Paraschis (Athens, Greece) Vice Chair Fredrick J Piccolo (Sarasota, USA) Immediate Past Chair Max Moore-Wilton (Sydney, Australia) Treasurer Louis E Miller (Atlanta, USA) ACI WORLD GOVERNING BOARD

30

Caroline Cook finds out more about the launch of a new global initiative designed to showcase the efforts airports are making to improve the passenger experience.

DIRECTORS Africa (3) Dalil Guendouz (Casablanca, Morocco) Pascal Komla (Lomé, Togo) Robinson Misitala (Livingstone, Zambia) Asia-Pacific (8) Tan Sri Bashir Ahmad (Kuala Lumpur, Malaysia) VP Agrawal (Delhi, India) Ghanem Al-Hajri (Sharjah, UAE) Dennis Chant (Gold Coast, Australia) Zhiyi Dong (Beijing, China) Seow Hiang Lee (Singapore) Kerrie Mather (Sydney, Australia) Kosaburo Morinaka (Tokyo, Japan) Europe (7) Declan Collier (London, UK) Michael Kerkloh (Munich, Germany) Yiannis Paraschis (Athens, Greece) Tonci Peovic (Zagreb, Croatia) Ad Rutten (Amsterdam, Holland) Stefan Schulte (Frankfurt, Germany) José-Manuel Vargas (Madrid, Spain) Latin America & Caribbean (3) Philippe Baril (Quito, Ecuador) Fernando Bosque (Guadalajara, Mexico) Héctor Navarrete Muñoz (Merida, Mexico) North America (7) Thella Bowens (San Diego, USA) David Edwards (Greenville, USA) Frank Miller (San Antonio, USA) Reg K Milley (Edmonton, Canada) Fredrick J Piccolo (Sarasota, USA) Mark Reis (Seattle, USA) Maureen Riley (Salt Lake City, USA)

33

Being charitable More airports are raising funds for good causes with fun runs and plane pulls.

Caroline Cook rounds up this year’s best charitable events.

34

Popping up everywhere Malgorzata Lach takes a closer look at the evolution of pop-up retail and F&B outlets at airports.

36

Airport Marketing Exchange SimpliFlying’s David McMullen and Shubhodeep Pal discuss the rise of airport investment in social media.

39

Investing in IT Airport World reviews the highlights of the 2013 Airport IT Trends Survey.

40

Cash converters How do airports around the globe increase retail revenues without incurring extra capital expenditure? Steve Messenger offers some guidance.

42

Smart thinking Joe Bates and Justin Burns round up the highlights of the recent SMART Airports Conference at inter airport Europe in Munich.

45

Sniffing out danger David Stockton explains why, in today’s high-tech world, airports across the globe still rely on dogs to help perform key security tasks.

Regional Advisers to the World Governing Board (7) Larry Cox (Memphis, USA) Stephen Gichuki (Nairobi, Kenya) Seow Hiang Lee (Singapore) Bongani Maseko (Johannesburg, South Africa) Barry Rempel (Winnipeg, Canada) Earl Richards (Jamaica) Miguel Southwell (Miami, USA)

47

Observer World Business Partner Board Chairperson Randy Pope (Burns & McDonnell) Correct as of December 11, 2013

Putting the passenger first

Project watch Nacala Airport.

48

Environment news

51

ACI’s World Business Partners

53

ACI traffic trends

54

The last word Heathrow Express’s managing director, Keith Greenfield, talks to Justin Burns about the advantages of airport rail links.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

7

NEWS

New concessionaire sought for Santiago

With the clock running down to September 2015, and the end of the current concession, Chile has issued a prequalification call to international investors interested in operating and developing Santiago’s Arturo Merino Benítez International Airport (SCL).

The successful consortium will be expected to construct and manage the new international terminal (Terminal 2), and upgrade, expand and operate the domestic terminal in return for a 20-year concession with an option for a five year extension.

Chile’s Ministry of Public Works claims that the upgrade will cost $720 million, triple the airport’s capacity to 30mppa by 2030, and ensure that Santiago remains one of Latin America’s most modern and passenger friendly airports.

The Chilean government is insisting that the new airport operator must hold at least a 25% stake in the winning consortium and be able to demonstrate that it has operated/managed an airport handling in excess of 20mppa for a minimum of five years.

Designed by Stantec, Terminal 2 will initially be around 200,000sqm in size and equipped to accommodate 14mppa.

Concessions coordinator, Carlos Plass Wahling, told Airport World that current concessionaire, SCL Terminal Aéreo Santiago SA Sociedad Concesionaria – which boasts Canada’s Vantage Airport Group as a stakeholder – would be invited to tender for the concession.

DAA’s global ambitions

The newly created international business arm of Irish airport operator DAA is actively looking for investment partners to form joint ventures to help it achieve its goal of operating airports in emerging markets such as Brazil, Japan and the Middle East.

Subsidiary, daa international, ideally wants to operate an airport as part of a consortium comprising itself and one or more partners who are prepared to make the equity investment necessary to buy the gateway or secure a management contract.

It wants to work with institutional funds and infrastructure developers willing to invest in airport assets in emerging markets, and use its experience of operating Ireland’s Dublin, Cork and – until recently – Shannon airports to develop and grow the gateways.

Chief executive of daa international, Colm Moran, says: “We formed daa international because we see an opportunity to leverage the expertise and skill base of our people at what we do best – running airports. We are primarily looking at the emerging markets and are not looking to make an equity investment at this stage.”

Bella, bella!

The shape of things to come? An artist’s impression of the new West Hub at Rome–Fiumicino Airport. According to The Design Solution, the 11,000sqm Avancorpo extension will transform the passenger experience for more than 15mppa. It is scheduled to open in 2016.

Curaçao spaceport

Curaçao International Airport has revealed it will open its own Spaceport in 2014, in a move designed to help boost its non-aeronautical revenues.

XCor Aerospace is expected to launch commercial space flights within the next 12 months and more than 250 people have already signed up for sub-orbital flights from the Caribbean airport.

The creation of the spaceport is part of operator Curaçao Airport Partner/Curaçao Airport Holding NV’s bid to transform the airport into the world’s first regional, self-sufficient ‘green airport city’, powered by solar energy and cooled by a seawater air conditioning system.

It will include 200 hectares of land set aside for commercial, retail, residential and research development, offering over one million square metres of rentable space for manufacturing and retail shops, logistics, offices, hotels, restaurants, R&D laboratories and warehouses.

Curaçao’s ambitious development plan is believed to come with a $1.8 billion price tag, based on annual investments of $30 million over the next few decades.

“It will create around 1,400 jobs, which is not bad for a small island with a population of under 150,000 people,” says Simon Kloppenburg, commercial developer for airport development.

News in brief Fears that some of Finland’s smaller gateways may have to close in the future were raised by Finavia’s CEO, Kari Savolainen, during a ‘think tank’ session at the recent Global Airport Development conference in Nice. When asked what keeps him awake at night, Savolainen admitted that it would be difficult for Finnish airport operator, Finavia, to continue to operate all 25 of the nation’s gateways in the long-term almost entirely from the profits of Helsinki Airport.

The long-awaited opening of Doha’s new $15.5 billion Hamad International Airport in

8

Qatar is set to undergo a ‘soft’ opening at the start of 2014. In its first phase, the airport will be served by 10 passenger airlines that will utilise one of the longest commercial runways in the world at 4,850 metres.

Perth Airport has opened the first phase of its new international arrivals area and claims that feedback on the facility – part of its A$750 million redevelopment – has been “overwhelmingly positive”. CEO, Brad Geatches, said: “We’ve completely changed how people arrive into Perth Airport off an international flight.”

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

Kannur is set to become the fourth international airport in the southern Indian state of Kerala, after Kannur International Airport Limited (KIAL) awarded the contract for its engineering, procurement and construction to Larson & Tubro Limited (L&T).

The Hillsborough County Aviation Authority Board has awarded Austin Commercial the design-build contract for a new consolidated rental car facility and automated people mover at Tampa International Airport.

The project is part of phase one of the

Terminal velocity

The final months of 2013 saw the opening of new state-of-the-art terminals in Prishtina (Kosovo), Shenzhen Bao’an (China), St Petersburg (Russia) and Burgas (Bulgaria).

The new €140 million terminal at Prishtina (above, left) has more than doubled the airport’s annual capacity from 2mppa to 5mppa.

Turkey’s Limak Group, which operates Prishtina International Airport with consortium partner Aéroports de Lyon, claims that the facility is the most “intelligent, technologically advanced, passenger- and eco-friendly terminal in the Balkans”.

Boasting a ‘manta ray’ type design and unique double honeycomb ‘skin’, the new 5.3 million sq ft Terminal 3 at Shenzhen Bao’an

International Airport (above, centre) is expected to quickly become a new icon for the Chinese city.

According to architect Studio Fuksas, standout features of the interior design include stylised white ‘trees’ that serve as air conditioning vents and distinctive white conical supporting columns that rise to touch the roof at a “cathedral-like scale”.

Already the largest public building in Shenzhen, the 63-gate complex will initially increase the airport’s capacity by 60% to 45mppa.

Meanwhile, St Petersburg-Pulkovo’s new Terminal 1 (above, right) opened for business on December 4. All flights will be gradually transferred to the new €700 million Pulkovo Terminal by the end of January 2014.

TAV to invest in rival Istanbul airport?

When the project is fully completed in 2016 it will increase the capacity at Russia’s fourth largest airport from 8.4 million to 17mppa.

Sergey Emdin, director general of Northern Capital Gateway, says: “We are now close to the incarnation of plans for Pulkovo to become a major hub in the Baltic region.”

Burgas Airport’s new 21,000sqm terminal (not pictured), designed by the British-based Halcrow Group and Pascall+Watson in partnership with SavantElbul, opened in late December.

Next up is the expected January 2014 opening of Qatar’s new Hamad International Airport.

Brazilian airport sales

TAV Airports is remaining tight-lipped about speculation linking it with a potential bid to buy GMR Infrastructure’s 40% stake in Istanbul’s Sabiha Gökçen Airport.

The global airport operator already counts Istanbul’s Atatürk Airport in its portfolio and has made no secret of its intention to add more gateways, although few industry commentators would have predicted a bid for its rival Istanbul airport.

Located on the Asian side of the city, Sabiha Gökçen handled 15.7 million passengers in the first 10 months of 2013.

Its current shareholders are Malaysia Airports (20%), Turkish firm Limak (40%) and GMR Infrastructure (40%) and the possibility of the former buying out the latter arguably remains the most likely scenario if the Indian airport operator decides to sell.

The consortium acquired the operating rights to the airport for 20 years for €1.93 billion in 2007. TAV declined to comment on the speculation.

The Aeroportos do Futuro group spearheaded by Odebrecht and Singapore’s Changi Airport Group has paid $8.3 billion for the 25-year concession to run and expand Rio de Janeiro’s Galeão Airport.

The deal is part of Brazilian president Dilma Rousseff’s programme to modernise infrastructure in Brazil ahead of the FIFA World Cup next year and Olympic Games in 2016.

Galeão Airport handles about 22mppa and is set to have 26 new gates added alongside expanded cargo storage.

Elsewhere in Brazil, Aerobrasil group – comprising construction company CCR and the operators of both Munich and Zurich’s airports – has paid $840 million for the 30-year concession to run Belo Horizonte’s Confins Airport.

Brazil’s state-run management company Infraero will retain a 49% stake in both airports.

For daily news updates, visit www.airport-world.com master plan – a $943 million series of projects that will create 8,000 jobs in the Tampa Bay area.

Kenyan President, Uhuru Kenyatta, has commissioned the construction of a new $654 million terminal at the Jomo Kenyatta International Airport.

The two-phased construction work is expected to start immediately and deliver a 20mppa facility by 2017.

Vanderlande Industries has been awarded an $18.6 million contract to design and

build the new baggage handling system at Luis Muñoz Marin International Airport in Puerto Rico. The project is part of operator Aerostar’s $1.4 billion 40-year investment enhancement programme at the San Jose gateway.

Phnom Penh International Airport is one of Asia’s top gateways, according to a survey carried out by hotel booking site, Agoda.com.

Customers ranked the Cambodian gateway 10th in the survey of the continent’s best city airports.

The retail concession at Brazil’s Viracopos International Airport has been awarded to travel retailer, Nuance. The ten-year contract with a possible five year extension is expected to deliver a lifetime turnover of more than $450 million. It is Nuance’s first entry into the South American market.

The Myanmar government has put half the Asian country’s airports up for sale, according to The Myanmar Times. It claims that the Ministry of Transportation will open tenders in January for private ownership of 30 domestic airports.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

9

ACI WORLD NEWS

World in motion

ACI congratulates Dr Olumuyiwa Benard Aliu on his election as president of the Council of ICAO.

Pictured left to right: CANSO’s Jeff Poole; ACI World’s Angela Gittens; ICAO’s Roberto Kobeh González and his successor, Dr Olumuyiwa Benard Aliu; and IATA’s Tony Tyler.

A

irports Council International (ACI) extends its warmest congratulations to the newly elected president of the Council of ICAO, Dr Olumuyiwa Benard Aliu.

Dr Aliu’s election was confirmed on November 18 when the 36 States that comprise ICAO’s Governing Council registered their unanimous agreement during the Council’s 200th Session.

His three-year term will take effect on January 1, 2014, and end on December 31, 2016. Nigeria presented his candidature on March 8, 2013.

“Dr Aliu is an outstanding diplomat and civil aviation leader with a great talent for consensus building and a passion for advancing aviation policy and practice,” enthused director general of ACI World, Angela Gittens.

“He has always impressed me with his seamless development and integration of strategic objectives, policies and programmes, as well as his warm and open personal style and talent for drawing together people to forge collaborations and partnerships.

“His 30 years of exceptional service to international civil aviation and extensive academic background have garnered the full confidence of ACI that

Global traffic trends

The latest ACI traffic results show that global passenger numbers continued along its growth path for the month of October increasing by 4.9% from the previous year.

With global passenger growth in the realm of 3% year-on-year for the last 12 months, October represented a banner month for passenger traffic, as airports in advanced economies bounced back with strong gains heading into the third quarter of 2013.

The Middle East continues to achieve the highest month-on-month passenger growth among the regions, registering a 10% rise in October.

10

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

relies on the Council to advance issues of great importance to the world’s airports. I look forward to working with him over the next triennium and congratulate him on his historic appointment.”

He is the fifth president of the ICAO Council in its almost 70-year history and its first president from the Africa region. Prior to his election, Dr Aliu served for eight years as the ICAO Council’s Nigerian Representative (2005-2013), director of the Nigerian Civil Aviation Authority’s Air Transport Regulation Directorate (2000-2004), and chairman for the formulation of African Civil Aviation Policy under the African Union (2009-2011).

Dr Aliu’s election to president follows the announced retirement of Roberto Kobeh González (2006-2013), who served as president of the ICAO Council for two consecutive terms.

ACI held a retirement luncheon for him in November to pay homage to the tremendous contributions that he has made to the sustainable development of the international civil aviation industry.

The luncheon was held in collaboration with the Civil Air Navigation Services Organisation (CANSO) and the International Air Transport Association (IATA).

Double-digit growth rates continue to persist for airports across the region.

Dubai (DXB) and Abu Dhabi (AUH) grew by 15.1% and 15.8%, respectively.

ACI World’s economics director, Rafael Echevarne, commented: “While there is a revived sense of optimism based on the latest traffic figures, it is still early to adopt the view that we are completely out of the woods.

“Nevertheless, key emerging aviation markets, such as Dubai, Istanbul and São Paulo, continue to post strong gains in passenger traffic in spite of the downside risks. For the month of October, only three out of the top 30 airports reported having a decline in year-on-year passenger traffic.”

ACI WORLD NEWS

ACI events

2014

2014

2014

2014

2014

March 12-14

April 29-30

June 16-18

February 26-28

May 26-28

Airport Economics & Finance Conference & Exhibition London, UK

ATAG Aviation & Environment Summit Geneva, Switzerland

ACI Europe General Assembly, Congress & Exhibition Frankfurt, Germany

The Trinity Forum Bangkok, Thailand

ACI World Annual General Assembly ACI Asia-Pacific Regional Conference Seoul, South Korea

ACI offices ACI World Angela Gittens Director General PO Box 302 800 Rue du Square Victoria Montréal, Quebec H4Z 1G8 Canada Tel : +1 514 373 1200 Fax : +1 514 373 1201 aci@aci.aero www.aci.aero

ACI Fund for Developing Nations’ Airports Angela Gittens Managing Director c/o Geneva, Switzerland Tel: + 1 514 373 1200 Fax: +1 514 373 1201 acifund@aci.aero ACI Asia-Pacific Patti Chau Regional Director Hong Kong SAR, China Tel: +852 2180 9449 Fax: +852 2180 9462 info@aci-asiapac.aero www.aci-asiapac.aero

ACI Africa Ali Tounsi Regional Secretary Casablanca, Morocco Tel: +212 619 775 101 atounsi@aci-africa.aero www.aci-africa.aero ACI Europe Olivier Jankovec Director General Brussels, Belgium Tel: +32 (2) 552 0978 Fax: +32 (2) 502 5637 danielle.michel@aci-europe.org www.aci-europe.org

ACI Latin America & Caribbean Javier Martinez Botacio Director General Quito, Ecuador Tel: +593 2294 4900 Fax: +593 2294 4974 jmartinez@aci-lac.aero www.aci-lac.aero ACI North America Deborah McElroy Interim President Washington DC, USA Tel: +1 202 293 8500 Fax: +1 202 331 1362 postmaster@aci-na.org 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.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

11

View from the top

ACI VIEWPOINT

Director general, Angela Gittens, reflects on the 100th anniversary of commercial flight, training initiatives and the fact that aviation is a ‘people business’.

D

ear colleagues, a century ago, on January 1, 1914, the first commercial flight travelled between St Petersburg and Tampa in the state of Florida in the United States.

Its first passenger, the Mayor of St Petersburg, Abraham C Pheil, sat on a wooden seat next to the pilot. Around 3,000 spectators and a music band witnessed the sound of the wooden open-air seaplane start its six-cylinder engine and take flight to an altitude of five feet above water. The world would never be the same.

The St Petersburg-Tampa Airboat Line became the world’s first scheduled winged airline service in history. After only three months of operations, the airline ceased operation when a city subsidy ran out and left the airline unprofitable!

As we head into 2014, the image of a wooden aircraft without a windshield or seatbelts can serve to remind us of the tremendous gains in safety performance the industry has made.

With ICAO at the global level, civil aviation commissions at the regional level, civil aviation authorities at the national level, and industry groups, such as the Flight Safety Foundation, IATA, ACI, CANSO and ICCAIA, aviation has become the safest form of transportation.

What started as a retrospective activity, reviewing the causes of accidents and endeavouring to eliminate or mitigate the conditions found to contribute, matured into the study of incidents that could lead to an accident. And now, marked by the release of ICAO Annex 19, the Integrated Management Section of The Convention on International Civil Aviation, we are evolving to a proactive approach where safety vulnerabilities are sought out and mitigated. Annex 19 exemplifies the concept of a safety culture, which refers to the attitude and actions of people.

As much as civil aviation is about technology, the conquest of gravity, the muscle of machinery, the massiveness of infrastructure, it is still a business of people serving people. When we are conducting research or speaking in technical terms, we refer to ‘human factors’ and the ‘human in the loop’.

And just as manufacturers and governments have invested in scientists and engineers to improve materials and machines, operators and governments invest in the range of human skills it takes to make our industry safe, secure, customer-friendly and economically and environmentally sustainable.

ACI, working through our committees, assists airport managers to get the best from their human resources. We offer an extensive suite of skills development programmes, classroom and online, for all levels of airport staff, entry level to top executive. The Global Training

curriculum is dynamic, its development guided by the current and emerging needs of airports as they attempt to recruit and retain the skills they need in all areas of the business.

In this increasingly competitive airport environment, our newest online set of courses, the Airport Operations Diploma, allows airports to cross-train staff as well as allows staff to broaden their skill-set as the modern airport breaks down the silos within. The Spanish language version of the course will begin in 2014.

I am also pleased to announce the publication of a significant new best-practice guide, The ACI Guide to Airport Security – Assessment of Human Factors in Checkpoint Security. This document is intended to help airports and airport security managers assess their organisation across a range of human factors and organisational effectiveness attributes that have been identified as having a potential impact on security screening performance.

This is a groundbreaking document, the fruit of a successful collaboration with LeighFisher. There is no other guidance document quite like it and it is our intention to develop complementary case studies and further guidance to help airports achieve these leading practices.

And, of course, we have our Airport Excellence (APEX) in Safety programme which is a hands-on exemplar of the new approach to safety management, where experts from ACI and Safety Partner airports, along with ‘friendly’ inspectors from ICAO or other regulatory bodies, participate with the Host airport in a review of the Host’s safety vulnerabilities, in accord with ICAO’s Annex 14 (and now, Annex 19).

The review is paired with one or more training courses where that is necessary and has as one of its outcomes, the establishment of a runway safety team, to facilitate continuous improvement, the inculcation of a safety culture and a breaking down of silos among the players on the airport platform.

The information we derive from the reviews informs our guidance publication priorities, our training priorities and our feedback to ICAO on the kinds of recommendations it needs to develop for the States to help airports improve safety. A truly virtuous circle. And it all starts with people.

AW

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

13 13

AIRPORT REPORT: SAN FRANCISCO

Fantastic journey San Francisco International Airport’s long-serving boss, John Martin, talks to Joe Bates about infrastructure development, traffic growth and his gateway’s impressive green credentials.

F

or many, the highlight of the last 15 years at San Francisco International Airport (SFO) is likely to be the 2000 opening of its giant and still eye-catching International Terminal.

The distinct facility with its impressive glass façade, spacious lobby and rail station is still the largest international terminal in North America and provides a fitting welcome to San Francisco for nearly one million passengers that pass through the gateway on international flights each year.

“It has stood the test of time well and much better than some of the rest of us,” jokes airport director, John Martin, who oversaw its construction and opening in the early days of his leadership.

“Its opening as the major project of a $3 billion construction programme was a major milestone for the airport. It is a very efficient building and changed the way we operated and the services we could provide. The airport has always been good at customer service. When we opened the international terminal, we became great.”

But these days you simply cannot talk about SFO without thinking about Martin, the airport’s longest serving aviation director after clocking up 18 years in the hot seat, its new-look Terminal 2 or highlighting one or two of its impressive green credentials.

Sense of place The modest Martin doesn’t often speak about his longevity at SFO because he doesn’t really like talking about himself. It is, however, something he is very proud of, and his love for the city, culture and its people clearly came across in my time with him.

Indeed, Martin has gone out of his way to create a ‘sense of place’ at SFO and ensure that “little pieces of San Francisco” can be found throughout his gateway in the shape of familiar shops, restaurants and services.

These have included opening versions of popular downtown shops and restaurants in its terminals and encouraging local artists to display their works as part of its long-established public arts programme.

Martin notes that he is actually a big supporter of ‘pop-up’ shops, and reveals that one of the reasons behind this is because he feels that they provide an inexpensive way for small, local businesses to come in and test the market.

“It is an ideal way to see if it is right for them before possibly setting up a permanent outlet,” enthuses Martin. “We have a retailer who started out with a little chocolate truck 30 years ago, and now has four large retail locations across the airport.

“This is the sort of thing we want to encourage, as it helps local businesses and helps create a sense of place.”

After car parking and rental car activity, which together make over $160 million in revenue per annum, concession income is the next biggest revenue earner for SFO – duty free sales bring in $27 million per annum alone and F&B around $10 million.

In fact, SFO’s spend per passenger is one of the highest in the US, with the average customer in Terminal 2 spending around $14.50, an impressive total for a domestic facility.

14

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

AIRPORT REPORT: SAN FRANCISCO

History in the making Talking briefly about his long association with SFO, Martin says: “When I took the job in 1995, never in the world did I think I would still be here 18 years later! It’s been an extraordinary ride with an extraordinary team.

“It’s the people that keep me here. We have a great culture where everyone who works at the airport is really committed to providing service and facilities.”

He notes that how he spends his time has changed dramatically since the early days, when he was preoccupied with construction of the biggest public works programme in the US [the International Terminal, extending the Bay Area Rapid Transport (BART) system to SFO and new parking garages].

“The first six years was all about keeping the airport open during construction. Then came 9/11 and things changed radically,” explains Martin. “We suddenly lost 40% of our traffic and the focus was very much on cost-cutting, maximising our concession revenues while maintaining customer service levels and getting new air services into the airport.”

Cost-cutting included laying off nearly 30% of his staff at the San Francisco Airports Commission, about 130 people in total, which Martin says was a “tough but necessary business decision to keep SFO’s cost structure down”.

The situation was not helped by United filing for bankruptcy in the aftermath of 9/11 or the fact that Southwest Airlines had pulled the plug on services to SFO and moved to Oakland six months before the terror attacks, citing the airport’s high costs as the reason for its exit.

Martin is the first to admit that these were difficult days for SFO, which had little low-cost carrier traffic at the time, so saw its traffic figures drop from an all-time high of 41 million in 1999 to 26.5 million in 2002 before starting the long road to recovery.

“Attracting low-cost carriers became a huge marketing emphasis for us and landing Virgin America in 2007, which is headquartered in San Francisco, was a huge deal for the airport in terms of our traffic recovery,” recalls Martin.

Indeed, Martin goes as far as to say that the 2007 arrival of Virgin America was “a game changer” for SFO, pointing out that whenever the carrier enters a new market, airline fees on average drop by around 25% and traffic rises by 22%.

“JetBlue and Southwest soon came online, fares dropped and passenger numbers began to increase. As a result we’ve been one of the fastest growing airports in the country in the last five years,” he says.

“So, you could say I’ve seen the good times, the bad times and the great times during my time at San Francisco.”

Greatest achievements What does he count as SFO’s greatest achievements under his leadership?

Without hesitation, Martin states that he is most proud of building a corporate culture where the employees are dedicated to providing exceptional service.

Adding: “On a physical level, the opening of the International Terminal – which is still very much the centrepiece of the airport and will be for years to come because of international traffic growth – is the highlight, closely followed by Terminal 2.

“I am also very proud of our record when it comes to the environment and sustainable development.”

Although he didn’t mention it, reducing SFO’s costs per enplanement by 30% over a four year period was also a significant achievement.

He also gets great satisfaction from the recent upturn in passenger traffic at the airport. In fact, such has been SFO’s growth in recent years that the airport equalled its previous best annual total of 41mppa in 2011, and handled a record 44.5 million passengers in 2012.

Green issues If Martin is reluctant to talk about himself, he is exactly the opposite about SFO’s environmental record, as he believes that the airport is one of greenest in the US and a considerate neighbour to surrounding communities.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

15

AIRPORT REPORT: SAN FRANCISCO

The gateway’s environmental roots can arguably be traced back to 1995 when it decided to build today’s AirTrain people mover system to eliminate the need for rental car buses, and start introducing CNG-powered ground support vehicles.

He lists the fact that SFO composts 77% of its waste products; that all new buildings have Gold or Platinum rated Leadership in Energy and Environmental Design (LEED) certification; and that the airport’s CO2 emissions are 34% below its 1990 levels, as the highlights of SFO’s green achievements.

SFO’s commitment to the environment extends to insisting that all door-to-door vans, hotel shuttle buses and taxicabs serving the airport use green fuels.

And it has shown the way by converting 60% of its own fleet of vehicles to alternative fuels and is aiming for 100% within the next few years.

“The culture of our organisation is that we want to make net contributions to the environment. We want to be an environmental leader and our staff embrace this philosophy and genuinely want to go home and tell their kids that we are a green pioneer,” says Martin.

“We have been doing this for a long time now, so it is not a passing fad or something we are doing to win political favour. We also like to share our environmental knowledge and standards with other airports so that they can benefit from our experiences.”

ACI-NA recently honoured SFO with its Environmental Management Award for its Climate Action Plan, in recognition of its efforts to reduce its annual greenhouse emissions.

People power On the SFO website, Martin claims that he loves the pride his staff and the public have in the airport.

This is certainly something that the airport commission has worked on over the years, according to Martin, who recognises that this is not the case everywhere.

“I believe that our people, SFO’s airline customers and concessionaires take real pride in providing exceptional levels of service to customers and the airport’s reputation for breaking new ground in environmental achievements, security and customer service.

“We have worked hard to create a sense of passion and commitment for the mission. We work with our employees to create a vision for the airport. It is not my vision, it is the vision of the airport staff and the organisation. The high-level goals are not my goals, they are ones created by my staff. They have a buy-in, and ownership if you like, to make the airport truly exceptional.”

Strategic plan He is quick to point out that much of SFO’s ‘Reaching for No.1’ strategic plan is based on feedback from staff during committee meetings, which looked at ‘best practice’ initiatives across the world and how they could be adopted and developed at the airport.

In Martin’s words, the catalyst for the plan was the need for SFO “to re-envision itself” and “set a new vision, mission and goals for passenger services, security, safety and the working environment for employees.

“Basically, our vision is to be an exceptional airport and service for our community,” he tells Airport World. “We want to be one of the world’s top rated airports for customer service.

We want to be a great place to work and an environmental leader among airports.”

Arguably, SFO has already achieved at least one of these goals after being named ‘The healthiest place to work in San Francisco’ in a San Francisco Business Times survey, beating mighty competition on the way such as Oracle and Google.

A key factor of the strategic plan, according to Martin, was the introduction of a new “guest service mentality” in a bid to enhance customer service, and ultimately satisfaction levels.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

17

AIRPORT REPORT: SAN FRANCISCO

Image courtesy of Gensler/Nic Lehoux.

He explains: “We want to treat passengers as not merely our customers but as our guests. This has meant learning from the hotel visitor industry and adapting things that it does well, such as concierge services, to the airport environment.

“It has also meant providing amenities and services that exceed expectations, such as Terminal 2, which offers the facilities and services you would expect to find in a trendy hotel in downtown San Francisco, but not at a busy international airport.”

New infrastructure Martin calls the newly renovated Terminal 2, redesigned to fit the business model of Virgin America and fellow occupant American Airlines, “something special”.

Its $383 million upgrade actually resulted in the facility becoming the nation’s first LEED Gold-registered terminal and one of the most modern and sustainable facilities in the US – a remarkable achievement of a complex that originally opened for business in 1954.

Today’s new, improved 640,000sq ft version – designed and built through a partnership between Turner Construction and Gensler (associate architects are Michael Willis and Hamilton-Aitken) – boasts 14 gates, 30,793sq ft of retail and concession space and the capacity to handle up to 5.5mppa.

Martin believes that some of the services and facilities that help T2 “break the mould” are its local foodcourt with offerings from celebrity chefs, Tyler Florence and Cat Cora; dozens of works of art from local and international artists; a children’s play area; “luxurious” restrooms; free Wi-Fi and laptop plug-in stations; club-like seating near the gates; and ‘dehydration stations’ where visitors can refill water bottles.

He reveals that the challenge ahead for the airport is to do even better in the soon-to-be completed Boarding Area E expansion of Terminal 3.

The upgrade of the old American Airlines area of Terminal 3 – part of the next $5 billion development phase at SFO – is actually due for completion in January 2014, allowing for United to move in and work to start on the phased multi-year remodelling of the rest of the terminal.

18

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

When finished in 2020, the new-look Terminal 3 will become United’s base at SFO and have facilities such as a single new central security checkpoint, a range of new concessions and some of the customer friendly facilities found in T2.

Also on the agenda under the 10-year master plan are proposals to tear down and rebuild Terminal 1, and enhance SFO’s appeal to transit passengers with the construction of a new four-star hotel in front of the International Terminal.

Like at DFW with the Marriott/Hilton, SFO plans financing and building the hotel itself and then awarding a long-term operating lease to a well-known hotel chain. The 10-storey, 450-room facility will be built on the site of an existing car park.

Another addition will be a new air traffic control (ATC) tower, which is currently being built between terminals 1 and 2. The complex is expected to open in 2015 and replace the existing tower on top of T2 that has served SFO since 1954.

Martin notes that the airport is also planning to improve the retail and F&B programme in the International Terminal with more unique offerings, while simple things such as piping music into restrooms is expected to enhance its overall ambience.

On-time performance One thing that isn’t on the cards is a new runway – Martin laughingly notes that he tried to get one 15 years ago – although SFO has high hopes that the delays caused by low cloud and fog on 30% of all mornings will be reduced by the recent introduction of new FAA-approved arrivals procedures.

Indeed, Martin says the procedures – that effectively mean SFO can still use both parallel runways for landings during low cloud – could eventually boost the airport’s arrivals capacity by up to 20%.

He adds that the introduction of NextGen technology should also help the airport improve its on-time performance record.

Always looking to make improvements clearly goes with the job, and nobody knows this better than Martin, who appears to remain as enthusiastic about the challenges ahead as the day he started 18 years ago.

AW

AIRPORT REPORT: BAHRAIN

Busy

Bahrain Caroline Cook spoke to Mohamed Yousif Al-Binfalah, CEO of Bahrain Airport Company, about the airport’s development plans.

I

t’s been an interesting year for Bahrain International Airport (BIA), to say the least. Operated by Bahrain Airport Company (BAC) since 2010, Gulf Air’s main base has shifted its development plans following the national carrier’s restructuring over the past 12 months.

Mohamed Yousif Al-Binfalah, who replaced Gordon Dewar as the CEO of BAC in September 2012, tells Airport World that the airport is in desperate need of more capacity.

“The existing infrastructure dates back to 1994,” he says. “That was when the terminal building was constructed, designed for four million passengers.”

Now, the airport’s traffic is more than twice that, seeing 8.47 million passengers in 2012 after reaching close to nine million in 2010 – stretching the terminal beyond its limits.

“The need to invest in the existing infrastructure is not a luxury.

It’s not a vanity. It’s a need that has to be fulfilled,” he asserts.

Finally, he states the Bahraini government has decided to build a brand new airport and is deciding between two locations.

The existing capacity constraints require the ambitious plans to come to fruition by 2030.

Al-Binfalah suggests BIA will suffer if the situation continues for much longer. “Bahrain is known for its efficiency and friendliness and we’ve been internationally recognised for this,” he notes.

“We are currently handling over eight million passengers per annum, so there is a lot of pressure on all touch points at the airport.

As a result, some of the passenger experience elements are not what we would like to have.”

Filling the gap Problem-solving As a result, BAC and its holding company, Bahrain Mumtalakat, have devised a three-step plan to improve the situation.

In the short-term, around $18 million will be invested to renovate and replace dated infrastructure assets.

Al-Binfalah explains: “We’ve started a number of tendering projects and we are about to place some of the orders.”

These projects, expected to be completed in 2015, include installing seven new air bridges; replacing flooring in arrivals; and implementing security-related infrastructure, including detection and CCTV equipment.

The next phase aims to invest $1 billion in expanding the terminal building – an additional 40,000sqm could be added – and its related amenities over the next five years.

While plans appear to lack details at the moment, Al-Binfalah says the development will include capacity for an additional 13.5 million passengers per year, extra car parking, state-of-the-art airport systems and modern baggage handling systems.

20

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

Currently, BAC has direct flights to more than 35 destinations, with some operating as far as Washington DC, London and Hong Kong.

In 2012, the airport welcomed new flights from Felix Airways, Safi Airways and Mihin Lanka Airways, as well as the introduction of the Boeing 747-8F on British Airways’ and Cargolux’s freight services.

Additionally, several routes have seen increased frequencies, such as Jet Airways’ Bahrain-Kochi operations, which commenced third weekly flights in October 2012.

The most significant developments this year have come from Bahrain’s national carrier, Gulf Air. After announcing a major restructuring last December, the airline has seen alterations throughout its network, fleet and workforce.

Following the resumption of flights to Iraq in September 2012, Gulf Air has increased services to several destinations in the past year, including Sana’a, Chennai, Jeddah and – most recently – Pakistan.

The restructuring further saw the cancellation of several “financially unviable” routes from Bahrain, including Colombo, Dhaka and Kathmandu.

AIRPORT REPORT: BAHRAIN Al-Binfalah comments: “We are expecting to add at least three new destinations next year. We would like to focus on Asia and the Far East, moving forward.

“We are picking up on a new strategy to try and attract airlines to serve the discontinued destinations.”

He continues: “We are also talking to airlines in China, Malaysia, Indonesia, Thailand and India and maintain a constant dialogue with home carrier, Gulf Air, about developing their network. In terms of Gulf Air, we are particularly interested in exploring how they can serve new destinations in Asia.”

When asked if BAC sought destinations to the west, Al-Binfalah replies: “It’s very difficult to attract services when the three major carriers – Etihad, Emirates and Qatar Airways – are quite aggressive in serving them.

“Nevertheless, we have connectivity to the US through United; to Europe through British Airways, KLM and Lufthansa; and we are still in dialogue with other carriers to explore how we can attract them to Bahrain.”

We are expecting to add at least three new destinations next year.

We would like to focus on Asia and the Far East, moving forward There is no denying that Al-Binfalah and his team have high hopes for BAC and the future of BIA, despite the fact that the airport’s long-term future lies on a new site elsewhere.

Indeed, BAC’s determination to ensure that service standards at the existing gateway don’t suffer in the meantime has resulted in a big push to raise customer satisfaction levels at the airport.

And the initiative appears to be paying off, as Bahrain has been named among the top five airports in the Middle East for the last two years in ACI’s Airport Service Quality (ASQ) customer satisfaction survey.

Furthermore, its employees were voted as the Best Airport Staff in the Middle East in the 2013 SKYTRAX World Airport Awards earlier this year.

According to Al-Binfalah, the SKYTRAX award recognises BIA as a world-class airport providing efficient, secure, safe and comfortable travel experiences within friendly surroundings.

He insists that both honours are a testament to the professionalism of BAC’s staff and its partners in providing “excellence in passenger services” in line with the company’s mission to offer passengers an exceptional travel experience.

“We are located in a part of the world which is known for its warmth and hospitality and therefore take customer service very seriously,” enthuses Al-Binfalah.

“We may not be the biggest or best-known airport in the world but this doesn’t stop us from aiming to lead the way in terms of customer service.”

Sounds like an ambition that is bound to win favour with the ever-increasing number of passengers that are set to pass through Bahrain International Airport in the next few years.

AW

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

21

AIRPORT REPORT: SYDNEY

Ready

and willing While the politicians are talking about a new airport for Sydney, Kerrie Mather, CEO of the existing one, is getting down to the business of running Australia’s busiest gateway.

Lucy Siebert reports.

I

t is not often that airports feature in election campaigns, but in a year that Australia had no less than three prime ministers, Sydney Kingsford Smith Airport found itself at the heart of local and federal politics.

The debate about whether Sydney needs a brand new 24-hour airport – and where that might be located – has been around for years, but it shot back towards the top of the political agenda during 2013.

Supporters of a new airport argue that Sydney’s growth means the current airport, which operates under an 11pm–6am curfew and a restriction of 500,000 aircraft movements a year, will be unable to meet demand in the coming decades.

The location of any new airport is always a political hot potato, but the current front runner is Badgerys Creek, 51km west of Sydney’s Central Business District (CBD).

Supporters of the project argue that the area could use the jobs boost a new airport would bring, and handily, the government already owns the land there on which a new gateway could be built. Prime Minister, Tony Abbott, has publicly backed the Badgerys Creek site.

Now, it is believed that Australia’s Transport Minister, Warren Truss, is aiming to make a decision on any proposed new airport in early 2014. Truss has been widely quoted in the media as saying he believes a 24-hour airport will be required before 2027.

A different view While some Australian politicians might be backing a new airport project, the operator of Kingsford Smith, Sydney Airports Corporation (SAC), which also has the right to operate any new gateway, believes the current airport has plenty of scope for growth and expansion. It argues a new gateway would not be required for another three decades.

The operator submitted its master plan to the government in December, outlining its belief that it will be able to service Sydney’s air transport needs until 2045.

The master plan forecasts passenger numbers rising to 74mppa by 2033, with aircraft movements increasing to close to 410,000. The airport operator argues this is well within its current capabilities.

22

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

Sydney Airport CEO, Kerrie Mather, is quick to point out the facility’s scope for future growth.

“We’ve got capacity to serve the very strong growth potential we are seeing here in the market. There has been a lot of misinformation about our capacity, given the debate around the second airport, but a number of government studies have been done in recent years confirming Sydney Airport has capacity for the foreseeable future,” Mather tells Airport World.

“We have a number of operational restrictions that were put in place to alleviate noise – they were put in place 20 or 30 years ago – well before new-generation aircraft that are having a very favourable outcome on noise. They don’t reflect modern aviation,” she adds.

Industry changes The CEO, who has headed up the listed Sydney Airport Holdings Limited since 2002 and has been managing director and chief executive of Sydney Airport since June 2011, believes structural changes in the industry have transformed the way the gateway operates.

Mather says new-generation aircraft will allow Sydney to meet demand, even with current restrictions in place, well into the future.

“The way our capacity is being used at the airport is fundamentally different to the way it was used five years ago, or even 10 years ago. It is unique because we are an O&D market,” she says.

“We are not a hub – we are the end of the line of major long-haul routes. If you look at those operation restrictions, we have close to 500,000 movements per year, and we are using about 320,000 of those. That hasn’t varied a lot over the past 10 years because those new-generation aircraft and the low-cost carriers are carrying significantly more passengers per aircraft.”

AIRPORT REPORT: SYDNEY Mather explains: “The concept creates two integrated precincts each accommodating international, domestic, regional and freight. It is actually a mixing of international and domestic, and will improve the airport experience and make our operations more efficient.”

She adds that the plan is possible as there is “no overlap” between the three busiest international hours and the four busiest domestic hours of the day.

“There are significant periods of the day the airport is relatively empty so the mixing of terminals provides a better balance of activity between the two precincts,” she adds.

Transport headaches

Highlighting this is the fact Sydney was the first airport to receive a commercial A380 service in 2007 with Singapore Airlines, and it now handles 120 super jumbo services a week.

Mather says this type of investment from the airport’s airlines bring major benefits for all stakeholders.

“The airlines are all investing significant amounts in this new-generation technology, which is driving better outcomes for them with more fuel-efficient operations; for passengers, it’s driving great product experience; and for the community, it leads to better noise outcomes,” she says.

Mather continues by pointing out the impact that the growth in low-cost carriers, including Jetstar, Tigerair Australia and AirAsia X, are having on Sydney’s operations.

Meanwhile the Qantas–Emirates partnership has also altered scheduling at Sydney, with the Flying Kangaroo now hubbing through Dubai instead of Hong Kong or Singapore.

“Once upon a time, when Heathrow via Asia was a major hub, most of our growth was into our peak, but we are finding that is moving throughout the day. And the LCCs are increasing their operations in the off-peak as they are serving the markets at different times of day,” she says.

Expansion plans With Sydney Airport Corporation in no doubt Kingsford Smith has sufficient capacity to meet the medium-term demand, its master plan includes a number of proposed schemes aimed at expanding facilities and improving the airport experience for passengers.

The main one of these is integrating the domestic and international terminals under one roof.

While the city of Sydney is known for its sweeping harbour views and beach-side living, it is also famous for its transport woes.

The airport is no exception. While it is just eight kilometres from the CBD and its fast and efficient airport rail link is popular with passengers, the gateway still suffers from road transport congestion and delays.

To address this, the master plan foresees the creation of an integrated ground transport system and an upgrade of major roads and intersections around the airport.

“We are working closely with the government on some of the issues to improve the traffic flow to the airport. The government has now prioritised Sydney Airport in terms of ensuring the transport links, investment in and expansion of the major intersections are one of the highest priorities,” says Mather.

Under the plan, there will be a new one-way ring road for the T2 and T3 precinct, and a new free-flowing road through the T1 precinct, as well as a new city-bound exit by 2018.

The airport claims this will increase ‘green light’ time at key intersections by up to a third. There will also be a new bus and multipurpose parking facilities.

Ongoing investment And despite the uncertainty surrounding the future of Sydney’s airport system, Mather points out the operator has continually made significant investments over the past decade.

“We’ve invested A$2 billion in capacity and improved facilities over the past 10 years and we will continue to invest significantly in enhancements,” she enthuses.

“The investments in recent years include the significant expansion of Terminal 1, which completed in 2010, and a significant capacity expansion of nearly 30% at Terminal 2.”

And during December it opened a new domestic two-level car park, creating an additional 964 car parking spaces.

This brings total car parking across the airport to 16,700.

So while there are question marks around what the future might hold for Sydney Airport, Mather is adamant that the current gateway will continue to play its central role in Australia’s economy for years to come.

“Every airport plays a vital role in the economy but Sydney has a particularly vital role in facilitating tourism and providing all the associated infrastructure for tourism and growing the economy,” Mather concludes.

AW

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

23

SPECIAL REPORT: PEOPLE/HUMAN RESOURCES

Culture club Tina Oakley, HR director of London Gatwick, talks to Sarah McCay about the airport’s new corporate culture and its positive impact on the passenger experience.

W

hen you have a staff of 2,600 made up of 40 nationalities working to serve every nationality under the sun, the importance of recognising and respecting cultural differences could not be higher.

This is an average day for London Gatwick’s staff. The challenges faced by them are many and unpredictable, but the airport is going all out to ensure its team is well equipped to cope.

Since leaving the BAA stable in 2009 after its purchase by Global Infrastructure Partners (GIP), London Gatwick has upped the ante on staff training and HR issues as it competes head-to-head with London Heathrow to become ‘London’s airport of choice’.

GIP’s results-driven approach has seen London Gatwick develop a stronger corporate culture and adopt a new, more customer-focused philosophy.

Leading the change in terms of staff approach is Tina Oakley, appointed as HR director of London Gatwick in September 2010. She joined the airport from P&O Ferries where she was HR director, but is no stranger to the unique nuances of the aviation sector, having clocked up 26 years working for British Airways in a variety of operational, customer service, commercial and HR roles.

&RPSHWH WR JURZ DQG EHFRPH /RQGRQ¶V DLUSRUW RI FKRLFH

Since coming onboard at London Gatwick, Oakley has introduced new staff training schemes, a new look and helped the airport define its vision and ambition for the future.

“The philosophy we have here is about treating every customer and employee as an individual and recognising that everyone is different; their reasons for travelling and working will be different,” Oakley stresses.

Turn It Up London Gatwick introduced its ‘Turn It Up’ staff training programme to frontline security teams last autumn, with a view to making the journey through security less stressful and more human.

“Our Turn It Up training focused on helping our people to recognise the individual differences of customers. We taught them to look for body language and read individual needs. It’s about altering your style,” Oakley explains.

Turn It Up proved such a success that London Gatwick is now rolling it out elsewhere, including to those that work with passengers with reduced mobility, car park staff, and even third party providers.

Since the GIP buy-out, staff training has been a core element of London Gatwick’s pursuit of improved operations and key performance indicators.

285 $0%,7,21 675$7(*<

'HOLYHU WKH EHVW SDVVH

QJHU H[SHULHQFH

+HOS RXU DLUOLQHV JURZ ,QFUHDVH YDOXH DQG HIILFLHQF\

SXWDWLRQ

DQFH RXU UH

HQK 3URWHFW DQG

FXOWXUH J (+ 6 HRSOH EHVW S WHFKQRORJ\ H K W S 'HYHORFHVVHV DQG SUR

WURQ %XLOG D V

24

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

SPECIAL REPORT: PEOPLE/HUMAN RESOURCES

“When GIP first took over, the focus was on operational excellence.

Now we have that as a bedrock, we are looking more at the passenger experience,” reveals Oakley.

“London Gatwick is now a very energetic, fast-paced environment focused on competing and wanting to win. We are very performance-based.

All of our staff now have an appraisal twice a year and get messages on how they are performing – that was a first for London Gatwick.”

As well as the new appraisals system and the Turn It Up programme, London Gatwick also operates an on-the-job mentoring scheme.

“Frontline staff are assigned to a team leader who offers support in terms of development and needs for the business. Reinforcement, while it might happen in a training facility, also happens on the job,” Oakley explains.

Her team also works closely with third party service providers. “The airport’s ‘Rhythm of Gatwick’ programme is about putting our values out across the airport with third parties,” enthuses Oakley.

“Their staff are key to making sure everyone is in tune with where Gatwick wants to be. Retail operators also want us to run the Turn It Up programme for them. We are taking it step by step across the campus.”

Language barrier Communication is key and all members of the London Gatwick team have to speak a high level of English. Some members of the concierge staff can speak up to 30 languages.

Technology is another tool used to help overcome the language barrier and some frontline staff now carry iPads.

“We’ve got iPads around the building and people can self-serve; but we also feel strongly that you do need that people element, so it is a combination of the two,” explains Oakley. “The iPads are used in certain circumstances, but the human element is key. We like to think that we are able to host our passengers as guests as they come through.”

London Gatwick also has Google Maps for the airport and a lot of the passengers who are tuned into technology use these to help them navigate around.

New look In addition to a new staff ethos, London Gatwick has also unveiled a new wardrobe of staff uniforms, inspired by employee feedback.

Stylish but designed to be fit for purpose, the new 21-piece collection was designed to stand out and give staff and passengers the feel of London Gatwick having a strong brand identity.

“The new uniform is teal and purple in colour and designed to look more approachable, less like a security uniform,” says Oakley. Name badges have been added to maximise the approachability of all staff.

The new uniform is the result of a 12-month project that gained the feedback of 1,400 airport employees who were asked for their comments on their clothing needs and invited to vote on their favourite designs.

Investors in people London Gatwick’s HR success can be easily seen throughout the terminal.

However, if further evidence was required of how the new corporate culture is working then the airport’s recent Investors in People (IiP) 2013 status is a testament to how programmes such as Turn It Up are contributing to the success of the organisation.

“When I first arrived, there was a survey that showed our relationship with our people was slightly wanting,” admits Oakley. “After getting that information, we put a real focus on people leadership and making that a way of life, so when we came to be benchmarked we were successful in getting accreditation, but more delighted to have changed our relationship with our people.”

The IiP standard is defined and set by business leaders, based on 39 must-haves that organisations measure up against. IiP accreditation covers everything from business planning and leadership, to management effectiveness and performance measurement.

However, now London Gatwick has IiP status, it is not sitting back. In fact, Oakley and the team are now going for the Best Companies survey to benchmark again. “The aim is to keep moving the bar further and further,” admits Oakley.

London Gatwick also uses events such as the London 2012 Olympics as a spearhead for change and improvement.

“We had eight different organisations working together as a team to make sure those coming through [for the Olympics] had a great experience. It was great to be part of that,” she says.

“Afterwards, we look at the whole picture and learn from it so we are even better the next time. We are good at looking forward here. There are always other things around the corner and so we look at the next challenge.”

Looking ahead, London Gatwick has its eyes on the prize and HR is to play a central role in achieving its ambitions, says Oakley.“Today’s London Gatwick is change-focused, energetic and very competitive with a strong vision of where we are going. I think most people would say it’s a very exciting time at Gatwick as there is literally so much happening,” she muses.

“Our focus is on people. We recognise that customers do have a choice and it is our ambition to become London’s airport of choice.” AW

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

25

SPECIAL REPORT: PEOPLE/HUMAN RESOURCES

Learning curve ACI World’s training programmes are designed to develop airport employees from top management to frontline staff, writes Kevin Caron.

A

viation is a vital part of the increasingly globalised world economy, facilitating the growth of international trade, tourism and international investment, and connecting people across continents.

The industry itself is a major direct generator of employment and economic activity, responsible for 5.6 million direct jobs, 63% of which are on the airport and include 500,000 directly employed by ACI members.

Whatever the mix of personnel talents and skills at a given location, airport leaders must have the means to unite their teams behind the shared objective of delivering service excellence to a multi-national customer base that has high expectations at all destinations.

Training provides a credible platform that allows today’s airport personnel to develop the competencies and skills that will help them reach these goals and better adjust to a volatile and rapidly changing modern business environment.

In today’s increasingly complex air transport and airport environments, leadership teams are regularly called upon to generate new revenue streams and to strengthen the social and economic potential of the communities they serve.

As a result, airport leaders need ‘rapid-response’ business skills to balance short-term imperatives with long-term business needs. Gone are the days of the airport as a simple infrastructure supplier.

26

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

A final challenge to consider is that, as our industry expands, airports will need to compete for existing skilled candidates.

They will need not only to attract and train new personnel but, in order to hold on to them, ensure that they can enjoy a satisfying career development path.

Developing ACI members Under the guidance of its Training Steering Group and regional Human Resource committees, ACI has designed flexible classroom and online education programmes to maximise benefits at all levels at the airport, from top management to front line staff. Three key drivers continue to guide ACI in this strategic exercise.

The first strategy, the alignment of standards globally from SMS to certification, is an industry pre-requisite. Where will the next generation of technical professionals come from?

How will we build and maintain consistency as these skilled professionals migrate across borders to new opportunities? Global accreditation programmes based on shared standards are part of the solution.

ACI is collaborating with ICAO in this area on the organisation’s Next Generation of Aviation Professionals (NGAP) initiative. The ultimate goal for the ICAO NGAP programme is to assess the changes that are needed to attract future generations to aviation and ensure that not only airport operators, but pilots, technicians and air traffic controllers as well, have the required competencies to do their jobs.

SPECIAL REPORT: PEOPLE/HUMAN RESOURCES

New employee survey The newly launched ACI Europe AirPeople Survey is an employee engagement tool specifically targeted at the global airport industry.

The aim of the survey is to help airport management employ systematic development, in order to create a high-performance airport culture in their organisation.

According to co-developer, Corporate Spirit, it provides clear metrics for interpreting results, takes cultural issues into account, and produces results that create an understanding for developing a high-performance airport culture.

It adds that AirPeople is an applicable tool regardless of an airport’s size, location or business model and comprises an employee engagement survey and follow-up workshops.

Talking about the survey at the recent Leadership & Change Management Forum in Bologna, ACI Europe’s director of membership services and events, Danielle Michel, explained that it was recently deployed at Croatia’s Dubrovnik Airport, where 70% of staff participated.

Findings showed that although employees were proud of their work, they believed communication on development plans was lacking.

As a result, Roko Tolic, the airport’s general manager, ordered weekly meetings from heads of various departments to keep the workforce updated on plans. Both the airport and ACI Europe hope to report more on the results of the changes at next year’s forum.

The survey was developed by research and consulting professionals Corporate Spirit and This Is..., in co-operation with ACI Europe.

To succeed, we must understand the next generation’s educational requirements and expectations. If we fail, we could face a shortage of aviation professionals in the next 10 to 20 years.

A second strategy is to ensure the competencies that are now required of airport professionals. These include proficiencies in technical and operational domains, as well as the complex business leadership field.

As a simple example of the multi-disciplinary skills demanded by today’s airports, the ‘airport city’ phenomenon is emerging more and more as a popular model for many hub airports, with due emphasis on the diversification of revenue streams.

As a result, airports increasingly seek out and train qualified individuals to focus on the economic and commercial aspects of airport management.

ICAO and ACI have already addressed high-level management competencies, joining forces to offer the Airport Management Professional Accreditation Programme (AMPAP). Through many of the elective offerings in this programme, we are also achieving significantly improved understanding of the non-aeronautical business, safety, environmental and regulatory imperatives that are vital for our airports.

The third ACI personnel strategy focuses on the need to improve operational performance through targeted training. We want to be able to see concrete results from course participation.

Let’s take safety, our number one priority, as an example.

Standards are defined, requirements understood, and budgets

approved, yet airports in many parts of the world struggle to comply with aerodrome certification requirements.

What is holding us back? Topping the list are investment, commitment, training, strategic human resources and entrenchment of an effective safety culture.

To respond, ACI has incorporated safety training at all levels of its training offerings, addressing different levels of knowledge and competencies through online SMS training, two dedicated safety diplomas (Global Safety Network and Advanced Global Safety Network) and an online operations diploma programme.

Additional tools being used to develop member competencies in this area are the joint ACI-ICAO Aerodrome Certification course and the Airport Excellence (APEX) in Safety programme.

One piece of a complex puzzle Our people will continue to play a key role as we re-invent our industry.

Training is only one piece of this puzzle, in addition to leadership, regulation, better sharing of best practices, environmental responsibility and new technologies, but it remains an essential component to future air transport sustainability and success.

Together with airport members, world business partners, faculties, vendors and other stakeholders, ACI Global Training has embarked on a voyage that will set a course for increased success in achieving airport excellence.

AW

About the author Kevin Caron is ACI’s assistant director, global training.

He can be contacted at KCaron@aci.aero

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

27

SPECIAL REPORT: PEOPLE/HUMAN RESOURCES

Spotlight on leadership Dr Richard Plenty and Terri Morrissey reflect on the highlights and lessons learned from the third annual Airport Leadership and Change Management Forum in Bologna.

I

f you had happened to be in the Piazza Maggiore in Bologna one evening in late October 2013, you would have been treated to a tuneful rendition of the well–known song ‘Volare’, echoing in Italian around the ancient square and sung with energy and great spirit.

Was this a group of travelling professionals, or local musicians looking to entertain tourists to this beautiful city?

In fact, the singers were all participants at the third annual ACI Europe Leadership and Change Management Forum held in the Royal Carlton Hotel in Bologna from October 23-25.

They had been amongst a number of volunteers trained to sing this beautiful melody in its original language, and had already had the opportunity to sing it with the backing of a local band at the Forum Gala Dinner held in the magnificent Palazzo Re Enzo.

So inspired were they by the experience that one performance wasn’t enough, so they took the opportunity to show to the wider community how airport leaders can learn new skills and adapt to local culture.

Indeed, this was a year when leadership was experienced as well as debated! The energy, spirit, discipline and teamwork showed by the singers were all themes that resonated with the deliberations, analysis and ethos of the conference itself.

vice chairman of ACI World) and James Cherry (CEO of Aéroports de Montréal and past chairman of ACI World).

They shared their experiences of leadership style and how this needed to be adapted to fit different circumstances. Leaders had to get results and needed to be flexible, pragmatic and realistic in their approach.

Collier compared his experiences of working as CEO of DAA, an Irish semi-state organisation which includes Dublin Airport and the international retail organisation ARI, with that of London City Airport, a small privately owned airport aimed primarily at ‘high end’ business travellers.

He distinguished between operational (task delivery) and conceptual (ideas into practice) leadership styles, noting that conceptual leadership was more difficult in practice but ultimately more pervasive and impactful, provided the right calibre of staff were available.

For his part, Cherry talked about how his personal leadership style had changed from being ‘directive’ to being more ‘empowering’ as his organisation had matured and circumstances had changed.

His preference was for delegation and engaging staff through providing them clarity, giving them influence, building their confidence and recognising their contribution. However, he emphasised, as had Collier, that sometimes a more directive style was necessary, particularly when the organisation was not fully mature.

Conference theme

Story telling about change

The theme of this year’s event was ‘leadership for sustainable growth’.

Airports have increasingly become fully fledged businesses and many airports, particularly in Europe, face difficult economic and social challenges.

Costs need to be managed and sustainable growth encouraged in order for airports to prosper. Austerity is not enough.

The major part of the first day was spent with people telling their stories of change from their personal perspectives. The medium of ‘story telling’ proved to be a powerful one as it enabled speakers to explain the context, what else was happening at the time and their personal experiences and learning.

Speakers included Dr Michael Kerkloh, CEO and president, Munich Airport, who spoke of the rebranding of the airport that was required to attract new staff for the expansion of the airport. He showed an inspiring music video about working there. All roads lead to Munich!

CEO master class on leadership This year’s forum opened with a CEO Master Class on Leadership, featuring Declan Collier (CEO of London City Airport and newly elected

28

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

SPECIAL REPORT: PEOPLE/HUMAN RESOURCES

Images courtesy of Tadej Bernik.

Heleen Kuitjen–Koenen, director of human resources for the Schiphol Group, talked of the impact of radical new working arrangements for office staff in Amsterdam, where fixed office hours are a thing of the past.

Apart from meetings, there is no requirement for staff to work in the physical location of the office. The programme has been a great success.

Productivity is up, office costs reduced and employee engagement increased.

There was an interesting debate about whether this approach would work as well in other cultures and locations.

Sue Baer, Arup’s global aviation planning leader and former aviation director of the Port Authority of New York and New Jersey (PANYNJ), recounted her experiences running Newark Airport during 9/11, and how she had developed a collaborative approach with the new government institutions and departments that were put in place after the event.

It took years and was at times a painful and painstaking experience but well worthwhile in terms of improving the passenger experience and airport efficiency.

Keynote speakers This year, the keynote speakers came from outside the industry and showcased Italian success stories of growth.

Corrado Lanzone, director of operations for Ferrari, gave some fascinating insights into the competitive world of Formula 1 racing and the ‘need for speed’ in making the continual adjustments and modifications necessary to ensure that racing cars stay competitive over the season.

“If you are totally in control, you’re going too slowly!” he joked.

Lanzone gave illustrations of teamwork, communication and empowerment, and the need to trust the team to come up with solutions to complex apparently intractable problems.

Enrico Cappelleti, a director of Technogym, spoke about how this business had developed from a local garage to the world’s leading gym equipment brand, and emphasised the business gains that could be achieved through having a fit and healthy workforce.

Other speakers Angela Gittens, director general of ACI World, led a discussion about the development of the next generation of airport leaders, which cannot be left to chance.

Olivier Jankovec, director general of ACI Europe, provided a fascinating overview of the social, political and economic environment of European airports and also launched the ACI Europe AirPeople Survey, which measures staff engagement and key aspects of high performance airport culture.

Aurelio Luglio, director of people and organisational development at Bologna, spoke about the airport’s award-winning fundraising initiative.

Other speakers covered topics including succession planning, health and wellbeing, organisational change, and the people implications of IT systems.

Lessons emerging from the forum What did we learn from the workshop about leadership for sustainable growth?

• Change and growth happen naturally given the right conditions and support. The key is to put into place a framework which encourages people to contribute, builds their skills and allows them the space to develop.

• Keep an open mind. One size doesn’t fit all. Diversity and difference make for business success. Growing a business isn’t simple – there will always be dilemmas and paradoxes to resolve. Leadership styles need to be adapted to fit the situation.

• Take care of your stakeholders! Make sure that you invest enough time and effort on bringing people with you. Engaged staff will put in more effort and will go the extra mile to find solutions. Building collaborative relationships with other stakeholders can be very hard work but is usually worth it.

• Building trust doesn’t happen overnight but it is a key component of organisation effectiveness. Complete control is not possible and can slow things down. Virtual working, collaboration, partnership and intercultural understanding all depend on trust.

• Sustainability is important. Don’t burn out yourself and others!

The investment in measures to promote health, wellbeing and employee engagement – as well as develop future leaders – will pay off in the long-run.

• Leadership for growth is about the heart as well as the head. It requires passion and commitment as well as intellect. Participating, engaging, having the courage to take a risk – and having fun – are all important. Something our ‘Volare’ singers learnt for themselves!

AW

About the authors Richard Plenty and Terri Morrissey are directors of This Is…, the co-organisers of the Leadership and Change Forum with Aviation Business Media. They can be contacted at info@thisis.eu Next year’s event will be held in Munich in December 2014.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

29

SPECIAL REPORT: PEOPLE/HUMAN RESOURCES

Putting the passenger first Caroline Cook finds out more about the launch of a new global initiative designed to showcase the efforts airports are making to improve the passenger experience.

T

o celebrate the best examples of airports putting travellers first, ACI has created a new initiative that provides the platform for airports to communicate their commitment to improving the passenger experience and responding to traveller needs.

Called ‘PassengersPlus’, it also gives passengers the opportunity to submit testimonials and stories on their experiences at particular airports.

Angela Gittens, ACI World’s director general, explains: “We want people to know that airport operators are committed to making things better for passengers.

“In an era where cutbacks and automation are the order of the day, efforts to share stories of putting the passenger first are important for airports, their passengers and other stakeholders.”

PassengersPlus divides airport initiatives into nine categories: entertainment and recreation; community and social services; tourism and culture; children and youth services; convenience through

technology; religious and spiritual worship; airport design; education and learning; and sports.

Gittens continues: “These stories reiterate the message that since the beginning of aviation, airports have been a part of the communities they serve, and have an unwavering desire to improve the treatment of airline passengers as valued residents and visitors.”

PassengersPlus is completely free of charge and, as Airport World went to press, more than 70 stories and videos from around the world had contributed to the initiative.

“I invite, and indeed encourage, all ACI members to share their positive passenger support stories, which we will use to help all airports fully earn the credit they rightfully deserve,” urges Gittens.

If you think your airport deserves recognition for its efforts in passenger experience, head over to www.aci.aero/paxplus to submit your story.

As well as boasting North America’s largest ‘living wall’, Vancouver International Airport’s international terminal features a 114,000-litre aquarium, housing 850 sea creatures.

Passengers of all ages can play a quick game of ping pong while they wait for their flights at Milwaukee’s General Mitchell International Airport.

Both Dallas/Fort Worth and San Francisco airports offer passengers a chance to relax in their fully-equipped yoga rooms.

30

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

SPECIAL REPORT: PEOPLE/HUMAN RESOURCES

Globally known for catering to its passengers’ needs, Singapore Changi Airport offers travellers the chance to capture their experiences at the airport with The Social Tree.

Incheon International Airport formed its ‘Ubiquitous Airport Team’ in 2006, to raise the bar on service standards. Now, passenger travel is simplified with several digital initiatives, including self check-in and automated boarding.

In addition to its very own Rijksmuseum and airport park, Amsterdam Schiphol boasts the world’s first airport library, located on the feature-filled Holland Boulevard.

Passengers can relax on one of Hamburg Airport’s new ergonomic, reclining seats.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

AW

31

SPECIAL REPORT: PEOPLE/HUMAN RESOURCES

Being charitable

More airports are raising funds for good causes with fun runs and plane pulls.

Caroline Cook rounds up this year’s best charitable events.

Working up a sweat at the Dulles Day Plane Pull.

T

hroughout 2013, airports around the globe have held fun days, runway runs and plane pulls to attract the crowds and raise money for charity.

Among the first off the starting blocks this year were Berlin Brandenburg and Tampa International, which both hosted an event on April 27.

Despite the much-delayed opening of Brandenburg, its south runway was put to good use when almost 4,000 runners battled the elements to complete the 10km race, equivalent to a half marathon.

Tampa welcomed more than 800 participants to its inaugural five kilometre runway fun run.

Kicking off the airport’s United Way Suncoast campaign, the event raised over $31,000 for community care and support.

Also hosting its first charity run, London Stansted squeezed in a break from its busy operations to boost funds for the Essex & Hertfordshire’s Air Ambulance Trust.

At 3am on June 24, 100 airport staff and air ambulance supporters donned their trainers in preparation for the race up and down the airport’s single 3,048m runway.

Sprinting ahead with arguably the most successful event of the year, Toronto Pearson’s June 15 runway run saw 2,600 joggers turn up for its sixth year.

Comprising a 5km run or a 2km walk, the event scored an incredible $150,000, with all proceeds going towards Toronto Pearson’s Community Investment Program, which funds local initiatives for a vital, sustainable and strong community.

More than 3,400 participants continued the year’s winning streak at Chicago O’Hare, where a 5km and 10km run on the runway, kids race and community day were held on September 29.

Runners were quick off the mark to grab the opportunity to sprint up Runway 10C-28C, weeks before the landing strip was scheduled to open to air traffic.

The festival included food vendors, live music, family activities and special exhibits, and raised funds for the Wounded Warrior project.

Across the pond, Aberdeen Airport hosted the Eastern Airways Runway Run at midnight on September 21 to rustle up funds for the cancer charity, CLIC Sargent.

Meanwhile, on September 30, 150 easyJet staff members raised more than €5,400 for UNICEF’s Change for Good programme by racing up the world’s busiest single runway at Gatwick Airport.

Budapest Airport’s first runway run got off to a flying start at the end of September, with 250 runners raising money to support sports activities for college students in need.

Washington Dulles roped in 70 teams for its annual Dulles Day Plane Pull and family festival on September 14. Boosting funds for Special Olympics Virginia, the teams of 25 had to tug an 82-ton FedEx freighter 12 feet.

The event, which included plane displays, a classic car show, airfield tours and live music, has raised $1.5 million since it started in 1992.

And last but not least, the C$80,000 raised by this year’s Plane Pull Challenge means that Ottawa Airport, in conjunction with Ottawa Senators Foundation, has raised more than C$380,000 for charity over AW the last eight years.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

33

RETAIL INNOVATION

Popping up everywhere Malgorzata Lach takes a closer look at the evolution of pop-up retail and F&B outlets at airports.

T

he phenomenon of pop-up shops goes back to the late 1990s/ early 2000s, when the first outlets started to appear in empty buildings or on street corners in downtown city centres.

The innovative approach to retailing first gained popularity in the US, ostensibly originating in Los Angeles and New York, before spreading to Europe and subsequently most of the rest of the world.

And like any new concept, it has evolved significantly over the last decade to the extent that it is now something more than just a temporary shopping area, and the model has been adapted to serve various purposes and suit diverse environments.

Indeed, a number of airports have seized the opportunity to embrace the pop-up trend and introduced the concept into the terminal environment.

They include Copenhagen, Paris CDG, London Gatwick, Helsinki and San Francisco, where airport director John Martin views them as the perfect opportunity for trialling potential new permanent outlets.

And why wouldn’t he, as the potential to bring multiple benefits to various parties – airports, brands and passengers – has developed the model further to embrace ideas that go beyond traditional airport retail.

Concepts such as pop-up bars, lounges, restaurants and even entertainment zones can help differentiate one airport from another, breathe new life into space-limited environments, showcase the local culture, and promote small businesses and their products and services.

34

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

Pop-up stores also offer airports the opportunity to be unique and surprise and excite passengers. They also give brands the chance to reach a new audience in a way that allows them to minimise costs and reduce the risk otherwise involved in establishing a permanent airport presence.

Going beyond retail Food & beverage (F&B) pop-ups are also gaining in popularity. Indeed, for the second year in a row, Copenhagen Airport celebrated the Copenhagen Cooking food festival with the opening of an in-terminal pop-up restaurant.

The airport teamed up with F&B operator, SSP, and Michelin-starred chefs, Thomas Rode, Mikkel Marschall and David Johansen, to open CPH Nordic Dining.

The chefs took turns to offer passengers Danish-inspired menus that included fresh, seasonal, locally grown products.

The recent rise in pop-up restaurant popularity has also been noticed by airlines that use airport space to provide premium services.

Virgin Atlantic, for example, partnered with London’s famous Ceviche restaurant to open a pop-up dining venue at its flagship Clubhouse at London Heathrow Airport.

Meanwhile, Australian carrier, Qantas, is rolling out a dedicated programme that will see a number of pop-up restaurants open in the

RETAIL INNOVATION

Qantas Club facilities at Australian airports, in partnership with well-known local restaurants.

The new project was launched at Sydney Airport with the opening of a pop-up eatery in collaboration with Merivale, a specialist in hospitality and entertainment.

In addition to dining experiences, airline lounges are also proving to be great venues for pop-up bars, if initiatives by United Airlines (which introduced Tito’s Handmade Vodka and Glenfiddich tasting bars at Chicago O’Hare, LAX, Newark-Liberty, Houston and Washington Dulles) and British Airways (which opened a temporary Grolsch pop-up bar at Heathrow Terminal 5 back in 2010) are anything to go by.

However, while airlines’ efforts tend to focus mainly on premium travellers, most airports try to cater to a wider group of visitors when working with brands.

For instance, Toronto Pearson and HMSHost recently opened a Grey Goose Vodka-branded pop-up bar and restaurant in its Arrivals Hall, in partnership with Bacardi Global Travel Retail, which wanted to promote its involvement in the Toronto International Film Festival.

Its offerings included complimentary cocktail samples that included three drinks designed exclusively for the event.

Other airports that have embraced pop-up bars include Amsterdam Schiphol, Helsinki and Stockholm Arlanda.

Tailor-made solutions One of the world’s most innovative pop-up outlets was arguably the IKEA lounge opened at Paris CDG in July 2012.

Designed to showcase the Swedish furniture designs, the 200sqm pop-up lounge was open to all travellers over the summer months and boasted its own bedrooms, living room and a dedicated play area for children.

In essence, it was a comfortable waiting environment for passengers while raising brand awareness amongst an international audience.

Elsewhere, in South Africa, a branded pop-up lounge can currently be found at Johannesburg’s OR Tambo International Airport. The facility, operated by Standard Bank, is set to be open until 2014 and offers a number of complimentary amenities such as free coffee, Wi-Fi, access to newspapers, iPads and charging points for mobile devices.

It seems like the possibilities that the pop-up concept brings to airports are endless. Back in 2011, for example, Fisher-Price promoted its toy range by setting up a temporary play area for infants and toddlers at London Gatwick.

The pop-up playground, available throughout the summer, allowed the brand to run real-life tests of its products and at the same time provide a valuable service to the youngest passengers.

Another brand to benefit from the pop-up concept was 3M, which in 2009 put its name to Airport Privacy Haven pods installed at a number of US airports to promote the release of a new product. The private zones offered travellers a chance to relax in a quiet environment equipped with complimentary Wi-Fi and power outlets.

A brand new approach The popularity of pop-up shops has even led to some airports developing their own pop-up concession programmes.

They include San Francisco International Airport (SFO), which recently announced that the first two contracts under its dedicated new pop-up concessions programme had been awarded to McEvoy of Marin – a producer of local, organic, olive oil and a natural body care line – and Collector – a Berkeley-based shop selling locally made art and hand-crafted goods.

Each will open separate stores in Boarding Area E of Terminal 3 in January 2014, for a period of between six months and a year.

According to SFO, its pop-up programme is tailor-made for small businesses based in the San Francisco area, with move-in-ready fixtures provided to reduce the initial set-up costs that often challenge many smaller companies.

It claims that the programme is an “innovative addition to its nationally recognised amenity programme”.

Airport director, John Martin, comments: “This is a win-win innovation. I am excited that our customers will enjoy an expanded selection of locally-sourced concessions, and our small business community gains greater access to business opportunities at SFO.” Without doubt, a dedicated concession programme for companies interested in a temporary presence at an airport allows for better control over the development of new pop-up outlets, and appears to be a way forward when approaching the concept.

AW

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

35

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

MARKETING

AIR

SCALING NEW HEIGHTS SimpliFlying’s David McMullen and Shubhodeep Pal discuss the rise of airport investment in social media.

T

he shift in airport attitudes towards marketing and in dealing with the new-age traveller is quite apparent – especially in Europe.

While airports have struggled with the dilemma of the ‘unknown passenger’ for a fair while, they have finally realised that the increasing use of public social networks offers enough valuable information about passengers that can help them drive key business goals.

Many airports today offer real-time customer service via Twitter and have immensely engaging Facebook pages. In fact, airports are launching some of the most innovative social and mobile campaigns today – all in an effort to tap into the ‘digisocial’ revolution and enhance the travel experience of today’s connected traveller.

Social media outlook 2013/2014 While a rising number of initiatives is good empirical evidence of airports’ keenness to invest in social media, SimpliFlying wanted to delve more deeply into the functioning of airport social teams themselves by asking questions such as: What are the kind of budgets allocated to social media? How many staff are being dedicated? What is holding airports back from becoming better in using social media?

In addition, we especially wanted to understand the internal priorities, business goals, and, not least of all, budgeting for 2014.

To study these parameters and gain a deeper understanding of airport investments in social media, SimpliFlying surveyed nearly 50 of the best airports on social media, for its annual Airport Social Media Outlook 2013/ 2014.

Compared to last year’s numbers, we definitely see a significant upward trend in terms of investment in airport social media. In fact, many airports are bullish about the prospects of a more aggressive social media strategy for 2014.

Budget, staffing and training Compared to a year ago, more airports have put in more money to social media in 2013, and the allocation of a bigger budget is a testament of the increasing importance of social media on the business agenda of airport organisations.

Advertising on social networks appears to be the top spending in the social media budget, with training as the second top spending.

This year, more airports have also dedicated more man-hours to social media, compared to 2012 when many of them were still exploring the usage of social media.

A good half of the airport respondents this year have dedicated man-hours equivalent to one full-time staff to social media, while more than a fifth overall has allocated man-hours equivalent to two full-time staff to social media.

Internally, there is an interesting shift sighted among airports this year with most marketing departments contributing more budget but less manpower to social media, and corporate communications departments contributing less budget but more manpower.

The majority of the airports invested in at least one day of social media training for their staff. Compared with gateways in North America, airports in Europe are leading this front.

In fact, 40% of respondents from European airports had invested in three days of social media training or more for its staff.

Airport social media: Business goals, campaign tactics and KPIs Qualitatively speaking, there is no denying the fact that many airports are engaging their passengers on social media to raise awareness of their brands. In Europe especially, with the season of snow looming large, it seems most airports are putting social

Source: SimpliFlying Airport Social Media Outlook 2013/2014.

36

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

MARKETING Source: SimpliFlying Airport Social Media Outlook 2013/2014.

media customer service and crisis communications teams (which happen to be among the top three business goals driven by social media) high on their social media agenda. Even news channels today source the latest news from social media channels – the recent shooting at LAX and the Asiana Airlines crash at SFO are evidence of the fact.

However, currently there seems to be a gap between what airports are measuring on social media and the business goals they seek to drive with social media. A large majority of the airports are using ‘likes’, comments, shares, and size of fan base as key social media metrics and key performance indicators (KPIs). They need to delve deeper and explore using average rates of response times and issues resolutions as KPIs. At the same time, they need to mine the data from various social media metrics to refine their campaigns – most of which involve online contests and user-generated content as the top components, among six other components polled.

What’s in store for 2014?

While most airports face similar challenges from last year – with ‘insufficient resource allocation’ as the biggest challenge of seven – there is a higher level of optimism to increase social media for 2014.

Only a very small minority (4%) are due to reduce their budget. What is noteworthy is that 51% of airports have indicated that they will be increasing their social media budget for 2014. And interestingly enough, it seems that the European airports are leading this front.

A significant change underway The numbers from SimpliFlying Airport Social Media Outlook 2013/2014 are emphatic evidence of a change under way – airports are increasing their investments in social media.

The tectonic plates of airport marketing have shifted radically in the last few years due to widespread adoption of smart devices, social networks and near-constant Internet connectivity. This has extraordinary implications for every airport as the new connected traveller expects airports to be accessible in their ‘pockets’, whilst receiving excellent customer service and a tailored airport experience on the go.

While our Airport Social Media Outlook survey research provides some answers and guidance to marketing in this age of the connected traveller, airports need to continue experimenting with different social media campaign formats and tactics to refine their marketing strategy and work towards achieving results that map back to their business goals – such as customer service, loyalty and revenue – in innovative ways that travellers cannot afford to ignore.

The full infographic for SimpliFlying Airport Social Media Outlook 2013/2014 can be found at j.mp/AirportSMOutlook14 ahead of the January 2014 release of the full report, which will form part of the quarterly SimpliFlying Airport Marketing Benchmarking Report. AW About the authors SimpliFlying has worked with over 40 airlines and airports globally to help them think differently about aviation marketing. David McMullen is VP for airports.

Shubhodeep Pal is VP for products & operations.

nd k on its new brangX ic tw a G n o d n e with Lo marketi a Q&A exchang competitive edge. #airport re tu a fe l il w e a The next issu e use of social media as direction and th AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

37

IT TRENDS

Investing in IT Airport World reviews the highlights of the 2013 Airport IT Trends Survey.

TOTAL IT SPEND AND AIRPORT REVENUE 2010-2013

T

he latest SITA Airport IT Trends Survey claims that airports invested $6 billion on information technology in 2013.

According to the survey, around 90% of airports expect their IT spending to either increase or remain stable in 2014, with a key focus on improving the passenger experience.

This follows a compound annual growth rate (CAGR) of 12% in IT investment over the past three years, outpacing the 2.83% CAGR in revenue.

Passenger processing technology is the highest priority, while investment is also being made in technology to improve passenger services and information.

Francesco Violante, SITA’s CEO, said: “As passenger traffic grows and airports aim to improve the passenger experience, technology is providing essential solutions, despite fluctuations in airport revenues.”

By 2016, around 95% of airports plan to invest in mobile apps to provide status information on flights and the airport, and to help with wayfinding.

According to SITA, 75% of airports will offer passenger services via social media by 2016, up from 56% currently.

Also by 2016, baggage self-service will go mainstream, with more than 80% of airports providing bag tag printing and assisted bag drop.

The survey – carried out in conjunction with ACI World and Airport Business – also highlighted the growing importance of business intelligence (BI), which transforms data into actionable information.

Within three years, 80% of airports plan to invest in new BI solutions for revenue optimisation and management, as well as airport operations, passenger flow monitoring and resource management.

However, SITA believes there is still a long way to go before airports reach their BI aspirations.

Only 8% of airports surveyed have fully achieved the data quality requirements for their current BI initiatives, and will still encounter challenges with data access and integration.

With one eye on the future, airports are starting to give serious attention to both cloud services and Near Field Communications (NFC). Some 49% of airports expect to evaluate cloud services through trials and pilot studies over the next three years, while 48% plan to look at NFC.

AIRPORTS INDICATE SIGNIFICANT CONFIDENCE FOR IT&T SPEND GROWTH IN 2014

56%

62%

63%

24%

15%

27%

21%

23%

10%

2012

2013

2014

Increase

Same

Decrease

NEW INFRASTRUCTURE INITIATIVES BY 2016

AW

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

39

RETAIL

Cash converters

How do airports around the globe increase retail revenues without incurring extra capital expenditure? Steve Messenger offers some guidance.

U

sing retail sales to supplement airport income is still a growth industry, with current sector sales estimated to be in excess of $46 billion a year and rising.

It’s unsurprising then that, according to Heathrow, around 27% of its annual income now comes from retailing, whilst for some other airports it is now more than 50%.

But since the major world economies tightened five years ago, sustaining sales and profitability has become increasingly challenging.

Indeed, with the airlines facing relentless cost pressures through fuel prices, deregulation and increasing competition, and airport running costs continually rising due to issues such as the need to enhance capacity, meet environmental controls and deliver increased security, both sides of the industry are keen to ensure retail revenues continue to grow.

Moreover, the need to do this without increasing capital expenditure (CAPEX) has heightened since 2008, when the sudden decline in air travel due to the financial crisis heavily dampened retail revenue growth.

Consequently, knowing how to make the most of sales by maximising the sales effectiveness of marketing activities has become a key focus for the major players, and knowing how to leverage all available data on sales and passenger tracking and feedback is a key enabler.

Effective marketing of the retail offer Airports like Heathrow and Singapore Changi have big retail operations and undertake intensive retail research. At Heathrow for example, marketing and insight director, Nick Adderley, ensures that the airport understands exactly how effective its retail marketing activities are, and how to maximise the incremental revenue that it can get from them.

A range of differing techniques are used for this, including sales data modelling (‘econometrics’), which Adderley had used several times before

40

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

in his previous roles as director of marketing for other major UK retailers, and which he believed would be very effective to help work out the answers for airports, too.

Of course, the first crucial element is getting the retail offer right: what mix of categories would work best? Which brands and facilities do customers want? How do you configure them so they do not detract from the airport’s primary purpose – catching a plane?

As Adderley puts it: “We ensure that shopping at Heathrow is ‘on the way’, not ‘in the way’ and that any strategically placed promotions reflect this mantra too.”

But once you have invested the CAPEX needed to achieve the best retail content and layout, how do you get the maximum spend per passenger (SPP) from that investment?

Does marketing the retail offer provide a profitable means of generating incremental sales and, if so, how can you know what works and what doesn’t?

Retail marketing activities comprise many different tools: advertising, promotions, loyalty rewards, service and pricing, for example, and each can be deployed both on- and off-airport.

Though marketing is only one of the factors determining SPP (nationality, tax rates, exchange rates, real incomes, travel class, purpose of trip, and many other factors also all make a difference), in working with various airports we’ve found that once you’ve accounted for the impacts of the uncontrollable factors, the impacts of marketing activities can be identified and you can see which ones are most effective at driving SPP.

Identifying the most effective marketing activities There are essentially three approaches for identifying the impact that marketing activities have on sales – test vs control experiments; market research; and statistical data modelling.

RETAIL

Images courtesy of LHR Airports Limited.

Test vs control experiments

Statistical data modelling

These enable airports to compare one group of travellers’ reactions to a particular marketing activity against another’s, with the difference showing the effect of the activity.

An example of this was an advertising test conducted by BAA in 2008-2009, which compared the impact of off-airport advertising on SPP in Scotland against other airports in the UK. This showed that off-airport advertising worked, and the continuing annual advertising campaigns

by Heathrow is evidence of the learning and ongoing benefits derived from the experiment.

The same approach can also be used to evaluate the benefits of loyalty schemes (across comparable airports and/or sets of passengers, for instance) and if you already have a loyalty scheme collecting transactional data, you can use it to evaluate the effects of off-airport advertising by comparing sales from geographical areas that were exposed to the advertisements, versus those that weren’t.

This is, of course, in addition to the normal practice of evaluating CRM campaigns using ‘control cells’ of people who were not sent the offers.

Unravelling these separate influences brings us on to the third technique – statistical data modelling. This enables airports to determine the likelihood that SPP will be higher or lower as a result of changes in individual influencing factors, and by how much.

By using data modelling to remove the impacts of operational factors, the models allow airports to see the contributions to SPP from all types of marketing activities, irrespective of whether they have taken place on- or off-airport.

The models work by quantifying the relationships between SPP and each of the influences that drive it, thereby providing better information for planning and a ‘baseline’ for expected SPP against which new marketing initiatives can be judged. This enabled Heathrow, for example, to understand the gains resulting from introducing multi-lingual sales ambassadors to its departure lounges in 2010; and the impact of new self-service tills at its largest and busiest newsagent outlets.

Whilst working with the airport on this, it also enabled my company, RedRoute International, to quantify the effects of improved satisfaction with individual aspects of the airport experience (such as car parking) on likelihood to spend in the stores.

Setting up such models is not easy, as it requires the extraction of data from almost every area of airport operations, but as many have found, the insights gained enabled them to deliver proven growth in revenues from their existing retail infrastructures without incurring additional CAPEX costs.

Market research If you are only managing one airport, however, and/or have no loyalty scheme in place, then running experiments is more difficult, so one alternative is market research. Intercept surveys are a great way to gather data from departing passengers on a variety of topics including satisfaction, shops visited, claimed expenditures, media noticed and how long they spent at the airport.

By comparing the answers across differing sub-groups, the surveys reveal valuable insights into the fundamental drivers of SPP, as well as the impacts of marketing activities.

A limitation of this approach, however, is it can be difficult to estimate the actual total sales effect. Whilst we may know that customers who took part in a promotion spent more than those that didn’t, estimating the total number taking part (and the true average spends of each group) is often imprecise.

Some analyses also have to be treated with caution. A 2011 JD Power customer satisfaction survey at airports in North America concluded that there was a 45% difference in average airport spend between passengers that were ‘delighted’ with their airport experience and those that were ‘disappointed’.

The challenge lies in determining whether their ‘delight’ was a cause of the extra spend or a consequence. It is difficult to be sure; both could be driven by a third factor, such as ‘wait time’.

Conclusion These three techniques therefore make it possible to measure the impacts of marketing activities and identify the best ones for growing SPP and passenger satisfaction.

Each approach has its limitations, as outlined, and it’s crucial to have a detailed strategy for using the knowledge gained so as to maximise the returns from the work, but if you have retail operations the size of those at airports such as Heathrow and Changi, the extra percentage points of retail AW revenue obtained are very worthwhile.

About the author Steve Messenger is head of data analysis, modelling and insights at marketing effectiveness agency, RedRoute International. The company’s aviation clients include Heathrow Airport and Heathrow Express.

He can be contacted at steve.messenger@redrouteinternational.com or via www.redrouteinternational.com

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

41

EVENT NEWS: SMART AIRPORTS

Smart thinking Joe Bates and Justin Burns round up the highlights of the recent SMART Airports Conference at inter airport Europe in Munich.

W

arnings about Europe’s capacity crunch, a possible 2027 opening date for a new Thames Estuary Airport in London and the importance of customer friendly security were all on the agenda of October’s SMART Airports Conference in Munich.

The warning about the capacity crunch came from Munich Airport’s president and CEO, Dr Michael Kerkloh, who stated that airports were already key economic generators for entire regions, and would become even more important in the future, if allowed to grow.

“At present, we are seeing only very moderate growth at many European airports. However, we should not draw false conclusions from this snapshot,” said Kerkloh.

“For the next 20 years, expert forecasts are in full agreement that we will see average annual growth of 4% to 5% in passenger traffic. However, the existing aviation infrastructure in Europe is not well positioned to achieve significant growth. In particular, we lack high-performance runway systems.”

He cited the recent EUROCONTROL study, which reveals that these deficiencies could result in the inability to cover 12% of air transportation demand in the next 20 years.

“It is becoming increasingly difficult to win acceptance in society and political backing for airport expansion projects,” warned Kerkloh.

“That is why I see the issue of sustainability as so crucial to the future of our industry.”

Hans-Peter Böhner, head of the transport department at the Bavarian State Ministry of Economic Affairs, Infrastructure, Transport and Technology, agreed with Kerkloh about the economic importance of airports, but noted that according to the German Airports Association, only 71 of Europe’s 462 airports were profitable.

In the circumstances, he warned that the dangers of losing State aid would pose “real problems” for Europe’s smaller regional airports, many of which would struggle to survive.

Thames Estuary Airport Talking about the UK’s capacity crunch, Chris Moores, Transport for London’s planning manager, told delegates that with government backing a new Thames Estuary Airport on the Isle of Grain could become a reality by 2029.

“Scattering new runways across London’s existing airports will not provide the answer to the UK’s capacity problems,” said Moores, when explaining the benefits of the ambitious plans for a four-runway Thames Estuary Airport favoured by Mayor of London, Boris Johnson.

He said its opening would allow Heathrow to be closed and developed as a new London borough – a theme that was later taken up by Foster+Partner’s Huw Thomas, who told Airport World that he believed the gateway could be built for €28.3 billion and open as early as 2027.

Thomas said the new airport could be totally funded through private enterprise and open once Heathrow reaches a capacity of 84mppa.

42

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

EVENT NEWS: SMART AIRPORTS

Images courtesy

of Tadej Bernik.

“We forecast that the airport would pay for itself within 10 years of opening,” said Thomas. “It would give London, the UK and Europe an advantage by creating a facility that can go head-to-head with Istanbul and other emerging airports around the world over the next 20 years.”

Airport expansion London City Airport’s CEO, Declan Collier, talked about the airport’s plans to add new infrastructure that would double its capacity to 120,000 flights and 6mppa by 2023.

Collier said that his airport’s Docklands location, just 20 minutes from Central London, and unique characteristics – 61% of its customers are business passengers earning salaries in excess of €120,000 per annum – meant that he believed it could do economically for London and the south east what the London docks did for Britain in the 19th century.

The airport currently employs 2,100 staff – 70% from East London, of which 30% were born there – and Collier believes that it will add another 1,500 if its plans for seven new aircraft stands, new Arrivals Building, new four-star hotel extension to its existing eastern pier, and taxi lane get the go-ahead.

He said the introduction of the next generation of aircraft, such as the Bombardier C series would allow London City Airport (LCY) to accommodate non-stop flights to the Gulf, Middle East, the North American east coast and “beyond Moscow into the Balkans” for the first time.

Collier added that the existence of LCY has spurred a huge level of investment in the surrounding area – 130,000 new jobs were expected to be created in Stratford and Canary Wharf alone by 2030 – and the fact that 50% of London’s population will technically live in East London within the next 10 years, made him confident about the future for his gateway.

In other news, Philipp Ahrens, Munich Airport’s general manager for Terminal 2, revealed that a central plaza with a ‘street market atmosphere’ will form the centre point of its new T2 satellite building, which is scheduled for completion in 2015.

He said the complex would also offer “clear views of the mountains in the background” and feature a range of innovative facilities that included 10 touch screen information gates, six information gate counters, and sleeping cabins.

The €1.2 billion project is a joint development between the airport and Lufthansa and is necessary because, despite only recently celebrating its 10th anniversary, Terminal 2 is already handling close to its 25mppa design capacity.

“It is a quality step up for us and Lufthansa,” enthused Ahrens. “There is a real need for this building. It will run on full thrust from day one and increase the quality and reduce remote boarding.”

Customer friendly security Copenhagen Airport’s security director, Johnnie Müller, talked about the importance of treating passengers with courtesy and respect during the security screening process at airports.

Müller, who revealed that nearly 50% of the Danish gateway’s 2,000 staff work in security, said: “We always look at things from a passenger perspective and then focus on customer service, and security is no exception.

“Our goal is simple, to provide the world’s best and fastest airport security check. A truly world class service is crucial. It is ambitious, but we believe we have to aim for the stars if we wish to constantly improve our processes and procedures.”

He said the gateway believed doing security in-house was better than outsourcing because it ensured that the airport was in control and better equipped to regulate service standards and quality.

And he revealed that the airport required his security staff to be “special” in terms of their service delivery as they are often the only employees of the airport operator that passengers meet on their journey.

“They represent Copenhagen Airport, so they have to give that little bit extra when it comes to customer service and ensuring the smooth flow of passengers through checkpoints,” insisted Müller.

“We require all our security guards to look at and make eye contact with passengers. The next thing we ask them to do is greet them, maybe just saying a simple ‘welcome, how are you?’ And, after they go through security we tell them to say ‘thank you, have a nice trip’. This is extremely simple, but has proved to have a hugely positive impact on customer satisfaction levels.

“We don’t want good security, we want great security. We require everyone to really love their jobs and believe it is much easier to find the bad guys when you create a more relaxed atmosphere and can have a good conversation with passengers.”

Müller says that Copenhagen Airport’s efforts to improve its security operation has included recruiting more customer-focused staff from the retail industry; developing its own customer service training programme for security staff; and use of a ‘coded language’ that employees can use between themselves to ensure that service standards never slip.

Other initiatives include creating a new centralised security checkpoint area; introducing family-friendly security lanes; introducing a tray return system and online system showing wait times at security checkpoints; adopting Lean principles; devising their own security management system; and “stealing good ideas” from other airports.

He noted that creating an optimum working environment for staff, and one that appealed to passengers was also important to providing good security.

“A lot of airport security environments are dark, noisy and devoid of natural daylight, which doesn’t create a good atmosphere. It doesn’t have to be this way,” explained Müller.

AW

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

43

SECURITY

Sniffing out danger David Stockton explains why, in today’s high-tech world, airports across the globe still rely on dogs to help perform key security tasks.

A

irport security is continually evolving to meet contemporary needs and threats. Safety, speed and efficiency are the three key attributes which are integral to the operation of any well-run airport.

With the ever-increasing threat from terrorism around the world, airports are looking at every aspect of security to ensure the safety of their passengers, employees, cargo and aircraft.

For passengers or cargo at airports, this security needs to apply from landside arrival right the way through to take-off.

The world’s airports use many different tools to ensure they run efficiently without compromising security and one of the most effective of these is a canine security service.

Using highly trained dogs along with security officers to search baggage can save a huge amount of time in the search process. For airports, this can be hugely beneficial as it controls costs as well as ensuring baggage moves efficiently and securely.

The ‘sniffer-dog’, trained to detect illicit substances in baggage and cargo, is probably the best-known use of dogs in airports, but their use in the aviation industry actually goes much further than this.

Aside from specific drugs such as amphetamines, heroin and cannabis, dogs can also be trained to sniff out explosives and currency.

Using their sense of smell to detect threats is where dogs can help airports make huge savings in manpower employed. A capable dog, utilised in a passive environment looking for specific items, takes just 20 to 30 minutes to search three quarters of the 300 passengers and their hand-baggage on a typical wide-bodied jet and can make passengers feel at ease with its cute looks.

Equally canines can be used to help secure an aircraft with their ability to move about the cabin safely and effectively.

Depending on their training, dogs can also play a vital role in protecting from intruders, guarding premises and searching people.

In protecting aircraft boundaries, patrol dog and handler teams are able to provide a great deal of flexibility and, in many cases, dogs can have a more enhanced ability to detect trespassers than their human handlers.

Even where this isn’t the case, the presence of canine security services also acts as a highly effective deterrent.

The benefits of these security services are potentially huge. Last year, G4S’s Canine Service explosive detection dogs actually stopped threats at Baghdad International Airport, one of the highest risk airports in the world, and they are now being used to search cargo at Brussels Airport, having passed a rigorous assessment in France to ensure they meet exacting European Union (EU) regulation standards.

To ensure only the most capable dogs go into service, security firms very carefully select individual dogs and put them through a rigorous training programme which enhances and assesses their obedience, detection, agility and search skills. This ensures they have the ability to consistently and effectively work in the most demanding environments.

Not only do dogs help to secure airports and their passengers and cargo but they can also save time and have commercial benefits.

Their use is an innovative way to ensure airports across the world can transit passengers and cargo efficiently and securely as part of a multi-layered approach to security.

AW

About the author David Stockton is a director of global aviation solutions company G4S. www.g4s.com

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

45

PROJECT WATCH

Nacala Airport Former airbase set to open as a new commercial gateway next year.

project details Location: Nacala, Mozambique

Important developments: New commercial airport

M

ozambique’s aviation infrastructure is set to be boosted by the opening of Nacala International Airport in Nampula Province in the north of the country in the first half of next year.

Being built on the site of a former Portuguese airbase close to the Port of Nacala, operator Aeroportos de Moçambique (ADM) believes that the gateway has the potential to become a hub for northern Mozambique and southern Africa.

Initially equipped to handle 500,000 passengers per annum, the airport will boast a 3,400 metre long runway and single passenger and cargo terminals.

Designed by Brazil’s Fernandes Arquitetos Associados and constructed by Odebecht International, the passenger terminal will feature 16 check-in desks, 16 immigration desks, four arrival and departure gates and two departure lounges.

At its heart is a central hall, featuring a mezzanine, where retail and food concessions, administration and operation offices will be situated, along with the airport’s main waiting and lounge area.

Lead architect, Daniel Hopf Fernandes, says they faced many challenges in designing the airport and it was vital to get it right as it is such an important project for the Mozambican people.

“The most challenging was the size of the airport, as it is really compact and it was a huge effort to reduce the size and keep all the necessary areas to a minimum,” he says.

“It is an important project for the country and to now see it close to completion is very exciting.

We believe that it will have a huge positive impact on Mozambique by showing its people what can be achieved.

“We want them to be proud of the airport and hope it will help improve the feelings of optimism about the future.”

Scheduled completion date: Indeed, Fernandes says he has been very pleased with observations made by local Mozambique residents about the design, who commented to him that the design reflects sea animals and different aspects of the country’s history and culture.

“The design is a mix of the Portuguese culture and the African culture, but it is hard to find one thing that symbolises it,” admits Fernandes.

“It was also important to appeal to people around the world as it is an international airport, so it was important the design incorporated everyone and was universal.”

According to Fernandes, one of the key aspects of the terminal’s design was making sure passengers flow quickly and efficiently through the one-storey complex.

Other facilities being constructed on the site include a cargo terminal, new taxiways, parking lot, air traffic control tower, support buildings and a fire station.

The airport’s development is being funded by an $80 million loan from Brazilian development bank, Banco Nacional de Desenvolvimento Economic e Social (BNDES), which is also underwriting a series of other construction projects in Mozambique.

In addition to providing an alternative entry point to Maputo International Airport, ADM is confident that the new gateway will open up trade, commerce and tourism in northern Mozambique, subsequently aiding economic and social development.

Mozambique’s economy is forecasted to grow by 8% in 2014 and tourism continues to rise, the number of international arrivals soaring by 9.6% to 2.2 million visitors in 2012, according to the country’s national tourism institute, INATUR. AW

April 2014

Principal companies involved: Fernandes Arquitetos Associados; Odebrecht International; Figueiredo Farraz Consulting and Project Engineering

Total investment: $114 million

AIRPORT WORLD/DECEMBER 2013 –JANUARY 2014

47

ENVIRONMENT NEWS

Nordic innovation Justin Burns reports on green initiatives at Trondheim and Stavanger airports in Norway.

N

orway’s Trondheim Airport is building a seawater exchange plant which will heat and cool its main terminal building and reduce its carbon emissions.

The initiative is part of the energy saving project that started in 2010, will cost NOK60 million (€7.2 million) and is scheduled for completion in summer 2014.

Enough energy will also be provided via the plant to also serve the nearby Radisson Blu and Rica Hell hotels, the Hellsenteret shopping centre, and any new buildings established in the airport city area.

The plant will stretch one kilometre into the neighbouring fjord and effectively replace the oil and electric boilers currently used by the airport.

Airport director, Per Jarle Ingstad, says: “This initiative will allow us to save 75% of the energy we now use for heating and cooling our terminal buildings.

“This is a very important contribution to our efforts to reduce our carbon footprint.”

According to the airport, seawater for the plant is collected from a depth of 40 metres in the fjord where it maintains a constant temperature of between +7°C and +9°C throughout the year.

The water temperatures mean that the gateway won’t have to use any energy to cool the terminal and other buildings between May and the end of August.

Trondheim is also aiming for a BREEAM rating on its newly completed terminal building, used for Widerøe’s turboprop flights to northern Norway, which was opened on December 2.

The BREEAM design and assessment rating is seen as the leading way to measure the sustainability of buildings and it would become the first airport building in the world to be awarded it.

Other eco-initiatives being undertaken by Norway’s fourth busiest passenger gateway – which handled 4.3mppa in 2012 – include collaboration with other airport stakeholders to reduce its CO2 emissions, as Trondheim bids to identify possible carbon reduction measures from taxiing, aircraft parking, energy use, ground handling and other areas.

Environmental advisor, Grethe Fremo, says the goal is for Trondheim to have a CO2 neutral fleet, now counting 80 vehicles, by 2020. The airport also plans to expand its recently installed food waste treatment facility that removes fat and water from food waste, which is then turned into fertiliser.

Director for operation services, Hans Hogstad, says: “Since 2010 the food treatment facility has reduced the airport’s food waste from 100 tonnes per annum to just five tonnes in 2012.

“Now the weekly food waste transport has been reduced to just once a year, the carbon footprint from waste transportation has been significantly reduced.”

Carbon emissions at Trondheim now total 55,000 tonnes of CO2 a year, with 63% related to aircraft movements (landing, take-off and taxiing), 34% to surface access transport and 3% for airport operations. Trondheim is one of 14 airports around the globe rated at the highest ‘Neutrality’ level of ACI’s Airport Carbon Accreditation (ACA) programme, and is striving to be Norway’s greenest and most eco-friendly airport.

Ingstad says: “The Airport Carbon Accreditation scheme provides a very useful framework for our carbon management. We are very proud to be one of 14 airports worldwide to be at ACA Stage 3+.”

48

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

Elsewhere in Norway, manmade wetlands are being created at Stavanger Airport Sola to collect rainwater and to serve as cleaning and crises management for potential oil spills.

The project is one of a number of environmental initiatives being carried out at Norway’s third biggest airport.

Its fire rescue trucks now use the more environmentally-friendly foam, Moussol, for instance, and the gateway is evaluating the operational and environmental efficiency of fuel tanks and converting its fleet of vehicles to green fuels.

Stavanger’s environmental advisor, Ingvald Erga, told Airport World that the airport is also set to improve its sewage system and insist on high environmental standards for all new buildings.

Other environmental projects already in existence include a power plant, which feeds on wood shavings to produce hot water for the terminal and airport hotel.

Erga says all are important in terms of the airport’s sustainable development and meeting new environmental goals, the latest being the 2014 target of gaining ACA Reduction Level 2.

“We still have a long way to go, of course, but we are absolutely committed to being green and making environmental improvements,” enthuses Erga.

“What next? We are looking at all our airport vehicles and hope to soon have a carbon neutral fleet.”

The gateway is also looking to incorporate a number of environmental projects in its planned new international pier, which should open by late 2016.

“We want the new building to be as low in energy consumption as possible and have a zero carbon emissions,” notes Erga.

Stavanger Airport Sola is actively working to reduce energy consumption across its buildings and is set to achieve a 25% reduction on its 2009 levels by 2015. It also hopes to be in a position to manage 50% of all on-site waste in the same year.

The desire to be environmentally friendly extends across Norway where one of the ambitions of airport operator, Avinor, is that its airports will be handling aircraft powered by biofuels by as early as 2020.

Indeed, it is even looking into whether it will be commercially viable to establish biofuel production for the aviation industry in Norway.

ENVIRONMENT NEWS

Global round-up Airport World reports on the latest global environmental initiatives.

Heathrow’s sustainability award

Heathrow’s new Terminal 2 has won a sustainability award before it even officially opens its doors for business in 2014.

The airport’s new showpiece terminal received the accolade at the Sustainability Leaders Awards in London in November.

According to the airport, sustainability was a guiding principle in the construction of Terminal 2 and the building includes an Energy Centre with one of the largest biomass boilers in the UK, saving 13,000 tonnes of CO2 per year.

It also has a water efficiency plan to reduce water consumption by up to 30% and 10 metre-high windows to maximise natural light and reduce the need for artificial lighting.

Plugged-in in Denver

Environmentally conscious Denver International Airport (DIA) has introduced 10 electric vehicle charging stations.

Customers who park their plug-in electric cars in the east and west parking garages at DIA can charge them up for free, with five docking stations located in each garage.

Chargers are compatible with most electric and plug-in hybrid vehicles, including the Chevy Volt, Nissan Leaf, and Toyota Prius.

The project is one of the first major public installations of commercial Level 1 electric vehicle charging systems in the US. DIA says it selected Level 1 stations as they are efficient, inexpensive, cost far less than Level 2 stations to install and will meet the needs of airport customers.

Kim Day, DIA’s manager of aviation, says: “Denver International Airport is already one of the most environmentally friendly airports in the world.

“These new charging stations are a continuation of our commitment to sustainability and environmental stewardship.

“At the same time, we’re addressing the evolving needs of our customers by adding a safe, convenient way for them to charge their electric vehicles at the airport.”

The average customer parks at DIA for 1.4 days and vehicles are fully charged in about eight hours via the charging stations.

Telefonex Inc has provided the charging stations, and Allen Will, its director of business development, says: “Colorado is at the forefront of developing infrastructure for electric vehicles and DIA clearly understands this market as well as the value of Level 1 charging.”

DIA is the 13th busiest airport in the world and fifth busiest in the US with more than 50mppa travelling through it each year.

Quiet, please!

Massport has approved a major enhancement to the noise monitoring system at Boston Logan International Airport and LG Hanscom Field.

The upgraded system will provide near real-time, web-based flight tracking to the public utilising the latest web technology, including high definition displays; compatibility with multiple browsers, tablets and smart phones; map filtering for arrivals, departures and overflights; replay compatibility; online complaint features and real-time weather displays.

“This enhanced system is a more sophisticated noise monitoring tool and website that is a critical component of Massport’s commitment to our neighbours and those communities affected by aircraft operations,” says Massport CEO, Thomas Glynn.

“In 2002 Logan was one of the first airports in the nation to provide web-based flight tracking to the public and this new version adopts the latest advances in website technology.’’

The Massport noise monitoring system is composed of 36 field monitors, 30 located in the communities around Logan Airport and six around Hanscom Field.

The system utilises a sophisticated database integrating input from the monitors, flight tracks, complaints, and weather.

Exelis Inc, formerly Rannoch Corporation, was selected in 2004 after a competitive bid process to operate and maintain the system for Massport and will implement the new system under a five-year, $2.8 million contract.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

49

WBP NEWS

The latest news from ACI’s World Business Partners

Another winner!

The RS&H-designed General Wayne A Downing Peoria International Airport is the 2013 recipient of the Illinois Public Airports Association (IPAA) Outstanding Achievement Award.

The Metropolitan Airport Authority of Peoria received the award in recognition of the successful new terminal that opened in 2011 and the record levels of passenger activity that the terminal has helped to generate.

“The new terminal helped us attract new service to Atlanta and Fort Myers/Punta Gorda, Florida, which helped us achieve a new annual passenger record in 2012 and is helping us run over 3% above that level this year,” says director of airports, Gene Olson.

“Central Illinois travellers praise the new facility because of its attractiveness and passengerfriendly layout. The airlines are enthusiastic about it because of its streamlined operational efficiency and reliability of its amenities, like heat and air conditioning.”

RS&H provided architectural, engineering, planning, and environmental services for the new 121,000 square foot building, which is energy efficient and sustainable.

Green features include being illuminated with natural light through clerestories in its public spaces and expanses of glass at its main axis, and large overhangs which provide solar protection while allowing natural light to shine in. The interior is also finished warmly with three different tones of wood panelling and bronze metal highlights.

Denver days

The City and County of Denver has awarded a contract to Parsons Brinckerhoff (PB) for general aviation, financial, and programme management consulting services at the Denver International Airport.

The on-call contract is in support of the planning and budget team at the Colorado airport.

Under the terms of the contract, PB will provide consulting services to assist the airport’s management team with capital planning on proposed capital projects.

Specific tasks might include analyses of capital projects to determine justification, prioritisation and decision support; strategic evaluation of the capital planning and project processes; and technical support with the implementation of programme management information systems to enhance capital planning, reporting, and project implementation.

UK expansion for Lockheed Martin

Lockheed Martin UK has further expanded its Information and Communication Technology (ICT) footprint by being named as the provider of ICT support services for NATS, the air navigation service provider operating at 15 UK airports and in over 30 countries worldwide.

Under the ICT agreement, Lockheed Martin UK is supplying NATS with Infrastructure Support Services across all their worldwide locations, including server support, storage and database support and network support; service management, including co-ordination of suppliers and procurement services; desktop support and virtual desktop support.

“This extension of our long-standing partnership with NATS underlines our growing footprint in ICT support,” enthuses Mark Cooper, managing director of Lockheed Martin UK Information Systems and Global Solutions Civil.

Golcon Limited Contact: Tony Gollin, director Address: PO Box 259234, Botany Auckland 2163, New Zealand Email: tony.gollin@golcon.co.nz Tel: +64 21 474 678 Website: www.golcon.co.nz Golcon can provide support in a number of ways such as strategic planning, facilitation and security services, executive mentoring and airport business optimising in areas such as outsourcing and airport concession development, corporatisation and privatisation, which can be provided at either government or airport level as appropriate.

Principal, Tony Gollin, has a long association with the ACI family; both in Asia-Pacific and in Europe, and prior to that with the Airport Operators Council International (AOCI).

ISS Facility Services Contact: Greg Gately, executive general manager Address: Unit 13/58 Metroplex Avenue, Brisbane, 4172 Australia Email: greg.gately@au.issworld.com Tel: +61 419 213 664 Website: www.au.issworld.com With a team of almost 15,000 people operating throughout Australia, ISS is one of the country’s largest facility service providers with annual revenue approaching A$1 billion. Our employees are often the first point of contact for passengers and you can depend on us to protect their security and provide a safe, clean environment. Our point of difference is our proven ability to deliver a people solution, staff who are well presented, well trained, and who “go the extra mile” to deliver an outstanding service.

SafeGate Germany Contact: Alexander Herring, managing director Address: Daimlerstrasse 17, 25337 Elmshorn, Germany Email: alexander.herring@safegate.com Tel: +49 4121 464 3037 Website: www.safegate.com The Safegate Group is one of the world’s leading providers of integrated solutions for safer, more efficient and environmentally friendly aircraft movements. All products comply with internationally recognised standards, with quality control maintained throughout development, production and installation in accordance with ISO 9001. Every year we implement solutions at more than 100 airports globally and have sold to more than 500 airports around the world for more than 40 years.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

51

TRAFFIC DATA

ACI Traffic trends

ACI projects a 4.3% increase in global passenger traffic for the medium-term period covering 2013 to 2017.

Europe and North America are expected to stay the course in terms of GDP and traffic projections, assuming that the US debt ceiling issue is resolved.

At the same time, growing concerns over the health of key emerging economies – principally Brazil and India – have resulted in lower GDP forecasts for the Latin American and Asia-Pacific regions, and this translates to lower traffic projections. Finally, the political turmoil in Egypt and terrorist attacks in Kenya have led to lower traffic projections for Africa overall.

Global passenger traffic to grow steadily over the next 5 years

Medium-term passenger forecast by region: 2013 – 2017 Estimates 2012 Africa 163.5 Asia/Pacific 1,709.7 Europe 1,615.9 Lat. America/Caribbean 444.4 Middle East 253.8 North America 1,562.3 World 5,749.6

YOY 2012 6.1% 8.0% 1.7% 7.6% 13.3% 1.7% 4.5%

2013 4.4% 6.3% 1.9% 4.7% 8.0% 1.1% 3.5%

2014 5.3% 7.0% 2.4% 5.6% 6.6% 2.0% 4.2%

Forecasts 2015 2016 5.6% 6.2% 7.1% 6.9% 2.9% 3.0% 6.4% 6.4% 6.3% 6.1% 2.1% 2.1% 4.5% 4.6%

2017 6.3% 6.8% 2.8% 6.3% 6.0% 2.0% 4.5%

2012-2017 5.6% 6.8% 2.6% 5.9% 6.6% 1.9% 4.3%

A forecast prepared by TFAS (Traffic Forecast Advisory Services) A partnership between ACI and DKMA, TFAS offers world-class traffic forecasting services. We provide airport specific traffic forecasts for the purpose of infrastructure development, investments and business planning. Recent projects include traffic forecasts for several airports, including Dawson City and Sault Ste-Marie in Canada.

For more information: Telephone: +41 22 354 07 54, Email: info@dkma.com, Website: www.aci-forecast.aero

For 2012, passenger figures are sourced from ACI and, for the remainder of the forecast period, data is projected using regressions developed based on the most recent forecasts of economic growth. If and when necessary, adjustments were made to the regression-driven results.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

53

The last word Heathrow Express’s managing director, Keith Greenfield, talks to Justin Burns about the advantages of airport rail links.

Factfile

What are the biggest benefits of rail links to airports?

Name: Keith Greenfield Age: 53 Job title: Managing director of Heathrow Express Nationality: British Time in aviation industry: Five years Best known for: Rebranding Heathrow Express Little known fact: Has a passion for sailing and sailed across the Atlantic Ocean in 2009

Speed and comfort of transfer for the customer is top, but reducing road congestion and improving the environment are really important too.

Isn’t it inevitable that a successful rail link will have an adverse economic impact on airports in terms of lost car parking revenues?

I think the economics vary greatly from airport to airport and country to country. At Heathrow we certainly don’t see that as a problem. Rail routes tend to be good where you have a high volume of people travelling to a city destination. Cars are good for a more diverse range of rural locations. You need to offer both.

Do you think quality rail links can drive airport growth?

Absolutely! I am often told about companies who have moved into the Paddington area of London specifically because of the Heathrow Express. If companies are moving office locations because of the air rail link, that must translate to overall airport growth.

Other than your own, what do you consider to be the best/most successful airport rail links and why?

There are many. Flytoget (Oslo) and Arlanda (Stockholm) started at the same time as us [Heathrow Express] and are very well run, one in public ownership and one

54

private. Both are fast and comfortable and very efficient. The Airport Express in Hong Kong has to get a mention for its downtown check-in facilities, which are the envy of the rest of us. It’s also very efficiently run by MTR.

Are airports and politicians finally waking up to the importance of air rail links?

It is great to see so many schemes in the planning and a few actually being built at the moment, such as Toronto’s ‘UP Express’. I know many others want air rail links, but the reality is that it is so expensive to build rail infrastructure that most will remain on the drawing board unless they get funding from national governments. In this respect, I think Heathrow Express will remain the exception as a 100% privately funded project.

AIRPORT WORLD/DECEMBER 2013-JANUARY 2014

Is investment in airport rail links increasing?

I am not sure. There are lots of aspirational schemes but only a few actually getting off the ground. Airports can be grown organically from a small aerodrome, but with a rail link you have to build the whole thing before you can use it; that’s a big investment.

How do you hold on to good staff?

People love working for a premium brand like Heathrow Express which we have just re-launched with a new brand identity ‘The Smarter Way’.

We also offer a short line of route and very flexible working hours, both of which fit well with people’s family lives.

For example 40% of our drivers are women and many are part-time.

How important is good customer service and a good brand?

Both are absolutely vital to our business success. The Heathrow Express brand promises ‘The Smarter Way’ to travel between Heathrow and central London. Our customer service has to live up to this promise on 150 services each day of the week. Fortunately, we do it pretty well most of the time.

Other than Heathrow, do you have a favourite airport and why?

Southampton – because it’s about the same distance as Heathrow from where I live! It has a rail station attached to the terminal with frequent express services to London. It’s a small modern airport and check-in is easy. I usually use the airport to fly to Salzburg in Austria for skiing.

AW