AIRPORT WORLD FEBRUARY-MARCH FEBRUARY-JANUARY 2014 2011
In the spotlight: Branding Airports: Moscow Vnukovo Special report: Security screening Plus: Airport design, people & UK capacity crunch
THE MAGAZINE OF THE AIRPORTS COUNCIL INTERNATIONAL
Growing the business February–March 2014 Volume 19 Issue 1 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 Reporter Justin Burns +44 (0) 20 8831 7508 justin@airport-world.com Design, Layout & Production Mark Draper +44 (0) 20 8831 7504 mark@airport-world.com Andrew Montgomery +44 (0) 20 8831 7564 andy@airport-world.com Erica Cooper erica@aviationmedia.aero Website Design & Production José Cuenca +44 (0) 20 8831 7517 jose@aviationmedia.aero Sales Director Jonathan Lee +44 (0) 20 8831 7563 jonathan@airport-world.com Advertising Manager Kalpesh Vadher +44 (0) 20 8831 7510 kalpesh@airport-world.com Andrew Hazell +44 (0) 20 8831 7518 andrewh@airport-world.com Subscriptions Lauren Murtagh +44 (0) 20 8831 7512 subscriptions@airport-world.com
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Prize assets Editor, Joe Bates, reflects on a busy start to 2014 and the growing importance of an airport brand.
M
ost industries traditionally enjoy quiet starts to the New Year; not so aviation, which has seen a host of airports celebrate development milestones in the opening months of 2014. They include the opening of a state-of-the-art new terminal in Mumbai, the inauguration of Boarding Area E in San Francisco’s Terminal 3 and, the signing of an agreement to potentially build a fourth airport in Moscow (see page 17 for more details). Elsewhere, Zagreb and Shanghai Pudong have unveiled spectacular development plans of their own. Abu Dhabi has celebrated the first construction milestone in its multi-billion dollar Midfield Terminal Building project, and MAHB has confirmed that Kuala Lumpur’s dedicated low-cost carrier terminal, klia2, will open in May. February also saw the announcement of the 2013 winners of ACI’s Airport Service Quality (ASQ) customer satisfaction survey, and the addition of a few new names to the annual roll of honour. Congratulations go to Abu Dhabi, Amman, Cape Town, Changchun, East London, Gimpo, Gothenburg, Guayaquil, Haikou, Incheon, Indianapolis, Kolkata, Langkawi, Mazatlán, Moscow-Sheremetyevo, Nassau, Quebec, San Antonio, Singapore Changi, Skopje and Upington for picking up the top prizes this time around. You can read more about the 2013 ASQ awards, as well as airport reaction to the results, in a special report inside this issue. Apart from the commitment to delivering top quality customer service, one thing
linking many of the winners is the development of a strong airport ‘brand’. Indeed, as you will discover in this ‘brands’ themed issue, many marketing and brand experts believe that some of the winners have the strongest airport brands on the planet, while other top performing gateways use the ASQ programme to help develop and strengthen theirs. Still not convinced about the importance of brands and branding in the airport environment? Take a look at our article on retail/F&B branding; read the views of Dufry CEO, Julián Díaz; and, discover how the Vantage Airport Group has created a totally new brand to reflect its evolution from Vancouver Airport Services. We also talk to Joseph Folz who tells us why one of the most famous motor manufacturing brands in the world, Porsche, has purposely located its US headquarters on the doorstep of the world’s busiest airport – Hartsfield-Jackson Atlanta. But it is not all about brands, as elsewhere in this issue we have articles about airport terminal design; the UK’s capacity crunch; the environment; smart security solutions; human resources/people power; and Moscow Vnukovo. Finally, the unfortunate postponement of February’s Trinity Forum in Bangkok due to events beyond the control of ACI, means that the upcoming Airport Economics & Finance Conference in London will be the industry’s first major event of the year. It promises to be bigger and better than ever before, and I look forward to AW seeing you there.
AIRPORT WORLD/FEBRUARY-MARCH 2014
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CONTENTS
Issue 1 Volume 19
In this issue 3 Opinion 8 News 10 ASQ Winners 2013 12 ACI News 15 View from the top Director general, Angela Gittens, reflects on the power of branding and ACI’s efforts to assist airports in improving their performance.
16 Family affair How can Moscow’s Vnukovo International Airport compete against the giants on its doorstep – Domodedovo and Sheremetyevo? Justin Burns investigates.
20 Adding value Why do airports need a brand? George Karamanos considers the importance of branding and the impact it can have on a gateway’s image.
24 The next step Building a stronger brand can help develop a world-class airport, writes Interbrand Cologne’s managing director, Nina Oswald.
29 Everybody wins Benet Wilson talks to a handful of airports that have used ACI’s Airport Service Quality survey to enhance the passenger experience and strengthen their brand.
32 Food for thought Kevin Brocklebank discusses some of the key branding challenges facing operators of airport shops and restaurants.
34 Open all hours Julián Díaz, CEO of Dufry, discusses the company’s brand, market presence and customer service commitments.
AIRPORT WORLD/FEBRUARY-MARCH 2014
5
CONTENTS
Director General Angela Gittens Chair Fredrick J Piccolo (Sarasota, USA) Vice Chair Declan Collier (London, UK) Immediate Past Chair Yiannis Paraschis (Athens, Greece)
37 Brand evolution Airport World discovers that the Vantage Airport Group rebrand capitalises on the global view of Vancouver International Airport’s investment partner.
38 Battle of Britain What next for the UK in terms of airport expansion? Martha Grekos provides a progress report on the work of the Airports Commission and the possible options open to the government.
41 People matters Our new feature on human resources/leadership. 42 Airport Marketing Exchange Today’s airport business and the modern multi-channel environment that we live in allow airports to collaborate effectively with passengers and potential passengers on brand strategies.
44 Bigger, the better? Richard Gammon explores what effect terminal size can have on passenger experience, operational efficiency and commercial effectiveness while giving us a glimpse into what the terminal of tomorrow might bring.
47 Screen test Rapiscan’s Frederic Brouiller considers whether passenger screening can ever be passenger friendly.
48 Smart security Airports looking for ‘smarter’ solutions for the security checkpoint will use connecting data as a key enabler, writes Nick Whitehead.
50 ACI’s World Business Partners 53 Project watch Helsinki Airport.
55 Environment news 56 The last word Porsche Cars North America’s Joseph Folz talks about brands, his favourite gateways and the company’s links with Hartsfield-Jackson Atlanta International Airport.
58 Traffic data
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AIRPORT WORLD/FEBRUARY-MARCH 2014
Treasurer Stefan Schulte (Frankfurt, Germany) ACI WORLD GOVERNING BOARD DIRECTORS Africa (3) Pascal Komla (Lomé, Togo) Robinson Misitala (Livingstone, Zambia) 1 vacancy Asia-Pacific (8) Tan Sri Bashir Ahmad (Kuala Lumpur, Malaysia) Dennis Chant (Gold Coast, Australia) Zhiyi Dong (Beijing, China) Seow Hiang Lee (Singapore) Kerrie Mather (Sydney, Australia) 3 vacancies Europe (7) Declan Collier (London, UK) Arnaud Feist (Brussels, Belgium) Michael Kerkloh (Munich, Germany) Tonci Peovic (Zagreb, Croatia) Stefan Schulte (Frankfurt, Germany) Sani Sener (Istanbul, Turkey) José-Manuel Vargas (Madrid, Spain) Latin America & Caribbean (3) Philippe Baril (Quito, Ecuador) Fernando Bosque (Guadalajara, Mexico) Héctor Navarrete Muñoz (Merida, Mexico) North America (7) Thella Bowens (San Diego, USA) James Cherry (Montréal, Canada) Frank Miller (San Antonio, USA) Fredrick J Piccolo (Sarasota, USA) Mark Reis (Seattle, USA) Maureen Riley (Salt Lake City, USA) Tom Ruth (Edmonton, Canada) Regional Advisers to the World Governing Board (7) Aaron Adderley (Hamilton, Bermuda) Rosemarie Andolino (Chicago, USA) Angel Cordova (Guayaquil, Ecuador) Howard Eng (Toronto, Canada) Saud AR Hashem (Jeddah, Saudi Arabia) Bongani Maseko (Johannesburg, South Africa) 1 vacancy (Europe) Observer World Business Partner Board Chairperson Roddy Boggus (Parsons Brinckerhoff ) Correct as of March 3, 2014
NEWS
Enhancing the passenger experience Cork Airport claims that the driving force behind its recently completed €3 million redevelopment programme was the desire to improve “the passenger experience”. The redevelopments included upgrading the baggage security screening system, introducing new screening technology for liquids and gels and upgrading the customer information desk. Cork Airport’s managing director, Niall MacCarthy, says: “This significant €3 million investment in Cork Airport will help us to continue to provide an award-winning passenger experience at the airport.” In February, Cork became the first Irish airport to make Google Indoor Street View feature on Maps available for all public areas of the airport. The innovative service allows passengers to take a virtual tour of the terminal building.
Slovenian airport sale?
Slovenia will complete the sale of the state-owned Ljubljana Jože Pučnik Airport by the end of the year, according to reports. Slovenian Prime Minister, Alenka Bratušek, is reported as saying it is among 13 state-owned assets set to be sold off in 2014 to raise funds for the government. Bratušek is reported as telling the German business daily newspaper Handelsblatt, that the government is making “good progress” with ongoing negotiations and there will be no delays in the sale. No details have been given on who has bid for Ljubljana Jože Pučnik Airport, which is Slovenia’s busiest airport, and serves the capital. Ljubljana Airport, which dates back to 1974, is planning on building a new 32,000sqm metre terminal that it hopes to open sometime in 2015. Operator, Aerodrom Ljubljana, recently reported a €5.2 million net profit for 2013, which is on par with the 2012 results and 3.8% above plans. Last year, Ljubljana welcomed 1.32 million passengers, up 10.2% on 2012.
Gatwick on the right track
UK Transport Minister, Baroness Kramer, celebrates the opening of Gatwick railway station’s newly upgraded Platform 7 with airport CEO, Stewart Wingate. Completion of the €60 million project will allow fast trains from both London Bridge and London Victoria to travel through the station more quickly. The project was made possible after a joint campaign between Gatwick Airport, local business groups and airlines, with the gateway contributing €8.5m to the project to ensure the upgrade could take place. Wingate says: “We recognised with over 14 million people arriving, or departing by rail, that an investment had to be made to improve the passenger experience in and around the airport.”
Cairo contract ends
Fraport’s association with Cairo International Airport (CAI) has ended following the completion of its nine-year management contract at the Egyptian gateway. The global airport operator helped transform Cairo by overseeing the opening of its impressive new Terminal 3 and developing its route network, but a spokesman told Airport World that the possibilty of renewing the contract “was never discussed”. As a result of the end of the contract, the three Fraport members of Cairo Airport Company’s management team have returned to Germany. Fraport’s chief financial officer, Dr Matthias Zieschang, says: “Our multi-year management contract with Cairo Airport Company (CAC) has been a win-win project for both Cairo International Airport as well as Fraport.” He says highlights of Fraport-led projects implemented at CAI included providing customised training for CAC employees and implementing new retail and real estate concepts. Fraport notes that Cairo International Airport also won a number of ASQ Awards in Africa during this period.
News in brief The world’s largest satellite concourse will be built at Shanghai Pudong Airport (PVG). Designed by US architect Corgan in association with Chinese partner IPPR, the complex is expected to boast 100 boarding gates when fully operational. Shanghai Airport Authority’s bold ambition is to transform Pudong into Asia’s “premier international hub”. Brisbane Airport has started work on the A$45 million redevelopment of its International Terminal. The entire redevelopment is expected to be finished in mid-2015. Airport
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CEO and managing director, Julieanne Alroe, says careful staging will ensure progressive growth of the airport can occur while ensuring passengers are not inconvenienced. A global tender process has been launched for a concessionaire to fund, build and operate Navi Mumbai International Airport. The Request for Qualifications (RFQ) has been issued by the City and Industrial Development Corporation of Maharashtra (CIDCO), which has set a four month deadline for the submission of bids. CSIA operator, Mumbai International
AIRPORT WORLD/FEBRUARY-MARCH 2014
Airport Limited (MIAL), will have first refusal on the new greenfield gateway, which could open as early as 2018 and serve as a reliever airport for Chhatrapati Shivaji before eventually replacing it. Aéroports de Paris Ingénierie (ADPi) will carry out studies for building a new 15mppa capacity terminal for low-cost carriers at Clark International Airport in the Philippines. Formerly known as Diosdado Macapagal International Airport, the old US air base is located on the island of Luzon in the Philippines.
NEWS
Top 10 busiest airports in 2013
Hartsfield-Jackson Atlanta has retained its crown as the busiest airport in the world in 2013 – but the most notable mover in the top 10 was Dubai International Airport, which moved up to seventh place from tenth. A total of 94.4 million passengers (-1.1%) passed through Hartsfield-Jackson in 2013. In second place was Beijing Capital International Airport with 83.7 million passengers (+2.2%), while third was London Heathrow, where traffic reached 72.3 million, an increase of 3.4% on 2012. Tokyo Haneda International Airport stayed in fourth spot with 69 million (+2.6%) and in fifth was Chicago O’Hare International Airport, the second busiest in the US, which welcomed 66.9 million (+0.1%). In sixth spot and growing fast was Los Angeles International Airport (LAX) with 66.66 million passengers (+4.7%), just in front of seventh placed Dubai International Airport, which handled 66.4 million (+15.2%) in 2013. In eighth place, up from ninth, was Asia-Pacific’s fourth busiest gateway, Jakarta Soekarno-Hatta, with 62.04 million (+3.4%), narrowly edging out ninth placed Paris CDG – Europe’s second busiest airport in 2013 – with 62 million (+0.7%). Taking the last spot in the top 10 was Dallas/Fort Worth where passenger numbers reached 60.4 million, a rise of 3.2%. 1. Hartsfield-Jackson Atlanta
94.4 million (-1.13%)
2. Beijing
83.7 million (+2.2%)
3. London Heathrow
72.3 million (+3.4%)
4. Tokyo Haneda
69.0 million (+2.6%)
5. Chicago O’Hare
66.9 million (+0.1%)
6. Los Angeles International
66.6 million (+4.7%)
7. Dubai International
66.4 million (+15.2%)
8. Jakarta Soekarno-Hatta
62.1 million (+3.4%)
9. Paris Charles de Gaulle
62.0 million (+0.7%)
10. Dallas/Forth Worth
60.4 million (+3.2%)
Ready for take-off
Kuala Lumpur International Airport’s eagerly awaited new low-cost carrier terminal, klia2, is set to open for business on May 2. The size and capacity of klia2 – it covers 257,000sqm and is equipped to handle up to 45mppa – will instantly make it the world’s largest dedicated low-cost carrier terminal. Unlike its predecessor, the new LCC facility will boast an assortment of facilities for passengers that include dozens of shops and restaurants, which have led the airport to describe it as “an airport within a mall”. Puan Faizah Khairuddin, the airport’s senior general manager for commercial services says: “Klia2 is constructed with one of the highest percentage of retail space offered by any commercial airport. Around 12% of its gross floor area (GFA) is dedicated to customer fronting commercial offerings – approximately 60% of which has been earmarked for retail and 40% for F&B. “The terminal will be a highly-desirable venue for Malaysian and international brands to showcase their products and services, pushing the envelope in terms of travel retail and redefining the travellers’ airport shopping experience.”
Mumbai’s new Terminal 2 opens A uniquely sculpted roof and impressive ‘sense of place’ fixtures such as a Bollywood mural are just two of the highlights of the newly inaugurated 4.4 million sqft Terminal 2 at Mumbai’s Chhatrapati Shivaji International Airport. Designed by Skidmore, Owings & Merrill (SOM), the new $2 billion terminal is capable of accommodating up to 40mppa and is said to symbolise India’s global future, while celebrating the country’s heritage. You can read more about the design concepts behind Terminal 2 in the next issue of sister publication, Asia-Pacific Airports magazine.
For daily news updates, visit www.airport-world.com LA/Ontario International Airport (ONT) is still up for sale, according to operator Los Angeles World Airports (LAWA). Commission president, Sean Burton, says: “LAWA is willing to consider a transfer of ONT to a qualified entity representing the cities and counties in the service area of the airport. However, LAWA will only consider such a transfer in exchange for fair compensation for assets transferred and reasonable protections for airport workers, including City of Los Angeles employees.” Bahrain International Airport is to be modernised and expanded and Aéroports de
Paris Ingénierie (ADPi) has won the contract to map out its future. ADPi will also design and supervise construction of a new passenger terminal of more than 150,000sqm based on the initial findings of studies in the master plan. Orlando International Airport is the first US airport to launch biometric kiosks for passengers arriving from visa waiver countries. The self-service kiosks are now operational and processing international passengers who have electronic system for travel authorisation (ESTA) approval prior to travel.
Bucharest Otopeni International Airport is set to get a new €1 billion rail link connecting it to downtown Bucharest. The new line will reportedly be built by metro operator, Metrorex, have 12 stops and is scheduled to open in 2018. Miami International Airport is set to downsize its ambitious ‘airport city’ project. Operator, Miami-Dade Aviation Department, had planned to create a $512 million airport city on a 33.5-acre site east of Florida’s biggest gateway, but is now considering a much smaller project.
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ASQ WINNERS
High life Joe Bates gets all the news and reaction to the 2013 Airport Service Quality (ASQ) awards.
A
sia-Pacific gateways have once again shone in ACI’s annual Airport Service Quality (ASQ) customer satisfaction survey, occupying the top spots in all the global best by size categories. Changchun (China), Haikou (China), Seoul Gimpo (South Korea), Seoul Incheon (South Korea) and Singapore Changi (Singapore) respectively topped the 2-5mppa, 5-15mppa, 15-25mppa, 25-40mppa and over 40mppa categories. ASQ champion, Incheon, was also named Best Airport in Asia-Pacific – ahead of Singapore Changi, Beijing Capital, Shanghai Pudong and New Delhi – while Abu Dhabi was voted Best Airport in the Middle East (ACI’s Asia-Pacific region incorporates the Gulf airports). Kolkata (India) and Amman (Jordan) also won awards for being the most improved airports in Asia-Pacific and the Middle East respectively, while Langkawi was named best airport handling under 2mppa in Asia-Pacific. Elsewhere in the world, Cape Town (Africa); Moscow Sheremetyevo (Europe); Guayaquil (Latin America & Caribbean); and Indianapolis (North America) were voted the best gateways in their respective regions. In the special regional awards for airports handling under 2mppa, the other winners were Mazatlán (Latin America & Caribbean); Upington (Africa); Skopje (Europe); and Quebec (North America). Finally, Best Improvement awards by region were won by East London (Africa); Nassau (Latin America & Caribbean); Gothenburg (Europe) and San Antonio (North America). “As airports face the increasingly competitive and demanding aviation market, it is crucial to keep a focus on meeting and exceeding passenger expectations,” enthuses ACI World’s director general, Angela Gittens. “Airport managers need factual intelligence to guide their efforts and optimise their investments. The ASQ Survey is a tool that provides data that enables airports to identify what their passengers value most and what the airport community needs to do to achieve excellence in customer service. “The results, over time, demonstrate that airports are paying close attention to the feedback from their passengers and undertaking corrective action to improve the passenger experience. “We can see that airport community leaders are continuously reviewing and enhancing their services. Airports work diligently to improve their performance by adopting customer focused strategies.”
Vasilenko, who claims that winning the award is “a nationwide achievement of our country”, attributes Sheremetyevo’s success to a desire to improve year-on-year. “The award is evidence that the airport has become better and that we are working in a more efficient manner than a year ago.” He says that Sheremetyevo implemented a number of projects aimed at improving the quality of services to passengers and “developing a positive atmosphere in the terminals” throughout 2013 and would do the same again this year.
Indianapolis
Tampa
Having been voted Best Airport in North America in 2012 and wining the accolade on one other occasion, the Indiana gateway is no stranger to ASQ success. Indianapolis Airport Authority’s executive director, Robert Duncan, enthuses: “We owe our unprecedented three first-place finishes among North American airports to our dedicated, world-class employees. “It is their tireless commitment and pride to maintain a safe, clean, courteous, and dependable airport operation that allows IND to consistently elevate the travel experience for our guests.”
Although it may not have won anything this year, Tampa is delighted by its third placing in the Best Airport in North America and 15-25mppa categories – as its ranking improved despite an ongoing revamp of the main terminal. It points out that customer satisfaction with airport security improved in 2013, in part, due to the addition of a TSA pre-check line that allows frequent fliers to undergo background checks in advance. Tampa Airport CEO, Joe Lopano: “We want to be number one in the world; that is always our goal. But to move up from fifth to third in the world [in the 15-25mppa category] during a very transitional period for the airport is an outstanding achievement and I could not be more proud of my team. “I credit this award to the outstanding efforts of our construction management staff who completed a massive renovation to the interior of the terminal with minimal impact to the comfort and convenience of our passengers.”
Moscow Sheremetyevo Director general, Mikhail Vasilenko, now refers to his gateway as being a “two-time champion”, in recognition of being named Best Airport in Europe for the second successive year.
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AIRPORT WORLD/FEBRUARY-MARCH 2014
Incheon Jung Chang-Soo, president and CEO of arguably the most successful ASQ champion of all-time, claims that its top performing ways are down to its total commitment to customer service – and, the fact that this philosophy is shared by its staff and the Korean government. “Our success is only made possible with the full support and confidence of the government and the united efforts of over 40,000 airport staff,” he says. “We will continue to work to become a leader in the global aviation industry by sustaining service competitiveness and upgrading every aspect of airport management.” Incheon was first named as the Best Airport in the World in 2005, four years after opening in 2001, and held on to the title until last year when it was phased out. It was the first airport to be inducted into the ACI Director General’s Roll of Excellence in 2011.
San Antonio Aviation director, Frank Miller, believes that his gateway’s customer focused approach to business was behind the airport winning the Best Improvement by Region award for North America. He remarks: “A customer‐focused approach is critical to the airport’s success in an increasingly competitive and demanding aviation market. “The ASQ survey is the industry standard for factual data that helps airports understand our customer and their expectations for a positive experience. The survey is also useful in helping San Antonio benchmark our airport against others in Texas, the nation and around the globe.”
ASQ WINNERS
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AIRPORT WORLD/FEBRUARY-MARCH 2014
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ACI WORLD NEWS
World in motion Martine Ohayon reports on the latest news and global initiatives from ACI World.
New security guide
ACI’s latest handbook is designed to be a starting point to help the aviation industry better understand the leading human factors practices that directly or indirectly impact upon security screening performance. Developed in conjunction with LeighFisher, The ACI Guide to Airport Security: Assessment of Human Factors in Checkpoint Screening, will help airports and airport security managers assess their organisation across a range of human factor and organisational effectiveness attributes that have been identified as having a potentially positive impact on security screening performance. The content of the guidance material was drawn from hands-on airport security management experience and interviews with a number of airports. It is intended to be a starting point, with more airports contributing material over time to form an increasingly accurate picture of the methodologies successfully employed at different types of airports. It is designed to help airports identify for themselves where there is room for improvement and to review what elements a leading practice approach contains. The guidance material covers attributes that are within the control of the airport security screening function and that have the potential to influence operational performance. A hierarchical structure was developed with the top level according to a conventional human factors approach: people, organisation, technology, and environment. Leading practices are not a “one size fits all” approach – some airports will satisfactorily achieve desired performance levels without implementing the guidance. However, they are intended to provide a useful and selfdiagnostic starting point for airports seeking to improve performance in certain areas.
Each level gives the Desired Outcome and then levels of approach from Initial through Intermediate to Leading Practice. The levels charts provide: • A compendium of human factor leading practices, drawn together from airports and other relevant industries. In this capacity, it is a document that will be regularly maintained and updated so that it incorporates new, successful methodologies and approaches. • A benchmarking tool that enables airports to analyse how their approach to achieving the desired outcome sits in comparison to other approaches, and, to identify the leading practices that might produce improved results. The main benefit of the Leading Practices guidance is that it enables airport security providers to assess their organisation against a broad range of attributes and identify improvement areas. It also facilitates airport security providers to learn about methodologies and approaches that have been successfully applied at other airports and to apply them more quickly. This guidance document for the very first time enables airports to assess their own security practices against human factor leading practices identified from industry, and through functional and domain expertise. It also provides a methodology to facilitate the sharing of leading practices in the checkpoint security task. This has been an important step in developing a methodology to help the industry self-diagnose and share leading practices. The future challenge is to encourage airports to consult and implement the guidance, and to contribute material based on their own successes to help maintain its currency. For more information on The ACI Guide to Airport Security: Assessment of Human Factors in Checkpoint Screening please visit www.aci.aero/ Publications/New-Releases or download the complimentary preview of the document.
Smart Security
ACI and the IATA have signed a Memorandum of Understanding (MoU) to jointly develop Smart Security (SmartS), the successor to the Checkpoint of the Future. The name change reflects the start of a new phase of pilot testing involving first-generation checkpoints. Since 2012, components of the Checkpoint of the Future have been tested individually. Under SmartS, several components will be tested together to see how they interact with one another in an operational environment. The renaming to Smart Security also signals the stronger ACI-IATA collaboration together with the strong participation of governments and other key industry stakeholders. “Airports, airlines, control authorities and system suppliers all have a role to play in making the process more effective, efficient and pleasant for the passenger,” says ACI director general, Angela Gittens. “Smart Security brings these stakeholders together with the shared goal of transforming the security checkpoint for the benefit of all the travelling public.”
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AIRPORT WORLD/FEBRUARY-MARCH 2014
The Checkpoint of the Future was launched in 2011, and the following year IATA and ACI, together with several national regulators, defined a roadmap for the future of passenger screening with blueprints for 2014, 2017 and 2020. From 2014, SmartS pilots will be conducted at airports to test multiple components working and interacting together. These airports include Amsterdam Schiphol and London Heathrow, along with the support and participation of their respective regulators and home carriers. The focus for 2014 is on optimising the security screening resources and asset utilisation; integrating innovative technology and repurposing existing equipment; and implementing new procedures to facilitate risk-based screening and decision-making.
ACI WORLD NEWS
ACI events
2014
2014
2014
2014
2014
September 7-10
April 29-30
June 16-18
September 17-19
May 26-28
ACI North America Annual Conference & Exhibition Atlanta, USA
ATAG Aviation & Environment Summit Geneva, Switzerland
ACI Europe General Assembly, Congress & Exhibition Frankfurt, Germany
The Trinity Forum Bangkok, Thailand
ACI Asia-Pacific/ World Annual General Assembly Seoul, South Korea
ACI offices ACI World Angela Gittens Director General PO Box 302 800 Rue du Square Victoria Montréal, Quebec H4Z 1G8 Canada Tel : +1 514 373 1200 Fax : +1 514 373 1201 aci@aci.aero www.aci.aero
ACI Fund for Developing Nations’ Airports Angela Gittens Managing Director c/o Geneva, Switzerland Tel: + 1 514 373 1200 Fax: +1 514 373 1201 acifund@aci.aero ACI Asia-Pacific Patti Chau Regional Director Hong Kong SAR, China Tel: +852 2180 9449 Fax: +852 2180 9462 info@aci-asiapac.aero www.aci-asiapac.aero
ACI Africa Ali Tounsi 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 Kevin Burke President Washington DC, USA Tel: +1 202 293 8500 Fax: +1 202 331 1362 postmaster@aci-na.org www.aci-na.org
ACI represents 591 members operating 1,861 airports in 177 countries and territories, which in 2012 handled 5.95 billion passengers, 93.6 million tonnes of cargo and 79.6 million aircraft movements. ACI is the international association of the world’s airports. It is a non-profit organisation, the prime purpose of which is to advance the interests of airports and promote professional excellence in airport management and operations.
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ACI VIEWPOINT
View from the top Director general, Angela Gittens, reflects on the power of branding and ACI’s efforts to assist airports in improving their performance.
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n today’s world, branding is much more than a logo or a particular product. Good branding practices, to reinforce positive perceptions, require an array of actions that will convey quality, credibility and excellence in service. These actions have to resonate in the minds of customers and stakeholders on a daily basis. Development and maintenance of brand identity has become an increasingly important element of airport management strategy, as airports face an increasingly competitive environment. While airlines can respond to market forces by altering their routes and frequencies, airports cannot move to a better market, so they have to make the most of the market they are in. They must meet the needs of customers – airlines, passengers and shippers – as well as satisfy the expectations of other stakeholders, including regulatory authorities and the local community. We often characterise the cornerstones in meeting the needs and expectations of the airport’s customers, stakeholders and constituencies as: safety and security, economic vitality, customer service and environmental responsibility. ACI has developed a series of programmes, including Airport Service Quality (ASQ), Airport Excellence (APEX) in Safety and Airport Carbon Accreditation, to assist airports in assessing and improving their performance in their cornerstone activities.
We have also given a great deal of attention to the enabling power of information technology (IT). Through the efforts of our members on the World and Regional IT Committees, ACI has helped airports make remarkable progress in optimising the use of new and existing technologies for the purpose of achieving greater efficiency and effectiveness. Further, they have promoted collaboration with other industry actors to ensure critical development of solutions and harmonised standards and protocols. In that spirit, ACI and the International Air Transport Association (IATA) have solidified their efforts by jointly developing recommended practices and technical specifications that would meet our respective requirements. An example of the results of this co-operation is the Aviation Community Recommended Information Services (ACRIS). ACRIS will facilitate the implementation of more efficient passenger and baggage processes and enable the linking of critical systems in real time to reduce delays, reduce costs and increase passenger satisfaction. The consistent application of innovation for continuous improvement in satisfying the needs and expectations of our customers, stakeholders and constituents is a vital component of our brand value. AW
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AIRPORT REPORT: VNUKOVO
Family affair How can Moscow’s Vnukovo International Airport compete against the giants on its doorstep – Domodedovo and Sheremetyevo? Justin Burns investigates.
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t may come as surprise to many, but Moscow’s airport system isn’t just made up of the big boys Domodedovo and Sheremetyevo, and their “little brother” Vnukovo, is beginning to make an impression. How so? Well, passenger traffic at Vnukovo International Airport grew at a faster rate than either of its rivals last year, arguably demonstrating that it is finally beginning to emerge from their shadows. The upturn, a healthy 15.2% rise on 2012, meant that 11.18 million passengers passed through Vnukovo last year. And 2013 was a landmark year for Vnukovo in more ways than one, as Moscow’s oldest airport and Russia’s fourth busiest commercial gateway used it to complete or put the finishing touches to a number of key projects in its seven-year, €2 billion transformation programme. New additions under the programme include a newly lengthened 3,000m runway, apron and taxiways as well as the state-of-the-art $1.8 billion Terminal A, which has effectively raised the airport’s capacity to 30 million passengers per annum. Boasting cutting edge technology and 52 gates, the new 270,000sqm terminal is one of the biggest in Europe. Last year also saw the opening of Vnukovo-3, one of Europe’s largest facilities for the handling, operation, maintenance and repair of executive jets.
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The complex has two VIP terminals, apron and hangars capable of handling up to 3,200 flights a month. Operators at the facility include RusJet Aircompany, FBO Vipport, Jet Aviation and Aeropit. The pride in seeing the completion of the terminal and new runway was evident in a beaming Vitaly Vantsev, chairman of the board of directors at Vnukovo, when he spoke to Airport World in Moscow. “Enhancing the passenger experience, raising our capacity and offering something we feel that travellers cannot get at Moscow’s other airports were the primary focus of our expansion programme,” reveals Vantsev. “For us, it is all about the passenger experience and making sure that everyone is handled with care and respect. We want our passengers to enjoy themselves. This means that the facilities must be convenient and the services provided are fast and efficient. Creating the right ambience is also important.”
Next on the agenda Although the current investment programme may be coming to an end, Vantsev is quick to point out that it is far from the end in terms of the ongoing efforts to upgrade the airport.
AIRPORT REPORT: VNUKOVO
Fourth Moscow gateway? Avia Solutions Group has signed an agreement with Russian state-owned holding company, Rostec, to establish a joint business venture to develop and manage a fourth Moscow airport on the site of the existing Ramenskoye airfield. Ramenskoye International Airport, as it would be known, would be built to meet demand for low-cost travel and will have a capacity of 12mppa. Avia Solutions Group is to invest $30 million into the company’s share capital and control up to 75% of the newly established company stocks. Rostec will contribute by bringing in land and real estate currently under its ownership in Ramenskoye, and in seven years time, the total investment is expected to top $236 million. Avia Solutions Group and Rostec will conduct the Ramenskoye development project in three stages, and plan on completing it between 2014-2019. At the moment the airfield, also known under the name of Zhukovsky, has two runways, including one of the longest in Europe at 5.4 kilometres. To transform the airfield into a full-fledged international airport a passenger terminal will be built and appropriate services established. In the first stage, existing facilities of Ramenskoye aerodrome will be supplemented with a new 7,000sqm terminal capable of serving up to 1.8mppa.
Indeed, more developments are planned and Vantsev believes that another €300 million needs to be spent on infrastructure enhancement projects at Vnukovo Airport over the next 10 years. Next up is the opening of a new Hilton Hotel later this year and the construction of a new aircraft maintenance and repair facility to make the airport more attractive to airlines. The new hotel will be linked to the terminal area via an underpass to shield guests from the extreme weather conditions Moscow can experience during the winter and summer periods. According to Vantsev, improving speed and access for passengers into the heart of Moscow is also a key priority, so Vnukovo’s board of directors are working with the state on plans to build a metro line station within the next three years.
Quick and easy Vantsev believes that the layout and design of its terminals makes getting around the airport very easy and convenient for passengers. It also means the Vnukovo is able to offer some of the world’s shortest transfer times for passengers connecting between domestic and international flights – 20 minutes on some routes. “When passengers enter Vnukovo, they do not need to think too hard about where they want to or need to go, as everything is very logical,” he notes. “All they need to understand really is which parts of the airport handle domestic and international flights. “Everything is designed for the passenger and their comfort, like the rest rooms, bars, shops and other facilities such as a fountain in Terminal A where you can feel like you are in the tropics while having a coffee.”
Airlines Situated 28 kilometres from the Kremlin, Vnukovo is the closest of Moscow’s three airports to the city centre and a direct train links it in 35 minutes. The convenience of its location ensures that it is popular with Muscovites, even if it does currently lack the expansive global route networks of Domodedovo and Sheremetyevo. So what type of airlines is Vnukovo aiming to attract? “We are focused on airlines which provide premium class services to passengers who want comfort and are willing to pay for it,” admits Vantsev. The comment is slightly misleading, for although the airport is always looking to expand its offering to business passengers to capitalise on its close proximity to Moscow’s central business district, it is certainly not simply an airport used by business travellers. Indeed, carriers serving Vnukovo today include low-cost carrier Germanwings, Austrian Airlines, Lufthansa, Turkish Airlines and Virgin Atlantic. New arrivals attracted by the developments include Transaero, while UTAir and Star Alliance members Lufthansa and Turkish Airlines have increased flight frequencies. Vantsev reveals that the airport is in negotiations with SWISS to launch flights later this year. Aeronautical revenues currently account for 60% of the airport’s income, but Vantsev is keen to reduce this figure in the future to make the airport less dependent on the airlines. The opening of a diverse range of new retail and F&B outlets in Terminal A will certainly boost Vnukovo’s income from shopping and dining, and more could follow in the future as Vantsev bids to maximise commercial opportunities across the airport site.
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AIRPORT REPORT: VNUKOVO
Ownership
Fourth Moscow airport
Historically viewed as being the airport of the mayor of Moscow, Vnukovo is actually majority owned by the Russian government. However, this could all change shortly following confirmation of the government’s intention to effectively privatise Vnukovo by selling its stake in the companies responsible for operating it by 2016. The government currently owns 74.74% of Vnukovo Airport JSC, and 25% plus one share of the International Vnukovo Airport company. The sale would allow for the formation of a new operating company in 2016 that will consolidate all the assets of Vnukovo Airport JSC, International Vnukovo Airport and the companies responsible for providing aircraft fuelling and ground handling services.
Moscow’s aviation potential hasn’t gone unnoticed by others, of course, and there now lies the very real prospect of new airports opening up in direct competition to Domodedovo, Sheremetyevo and Vnukovo in the future. Indeed, plans were recently announced for a fourth airport aimed at low-cost carriers at Ramenskoye (see box story) and a possible development at Yermolino, 72 kilometres southwest of Moscow. Vantsev was quite coy on their potential effect, but predicts it will take five or six years for one to be constructed at Yermolino, due to the regulations and laws existing on airport expansion. “There is a lot of work to be done on laws and regulations – it is, for example, impossible at the moment to develop the low-cost and discounted market for airports in Moscow,” he explains.
Long-term growth Rising competition The Moscow aviation market is evolving rapidly and grew by 14% in 2013, which, according to the Russian government, was above the world growth average of 4.6%. Indeed, Moscow’s three airports handled more than 70 million passengers between them last year – Domodedovo leading the way with 30.76 million (+9.2%), followed by Sheremetyevo with 29.3 million (+11.7%) and Vnukovo with 11.18 million. Vantsev predicts that the growth trajectory will continue and estimates that in 10 years time, Moscow will be handling 130-140mppa. “I think there will be a great increase in passengers in Moscow and the infrastructure for this number of passengers is already there, so it is achievable and we can develop up to this,” Vantsev comments. Upgrades have enabled Vnukovo to go head-to-head with Domodedovo and Sheremetyevo, and Vnukovo’s expansion has given it huge potential for growth compared to its competitors, according to Vantsev. “We have about 25-30% of the whole market, which is our aim. However, it is worth noting that the terminal infrastructure at Domodedovo totals 160,000sqm, whereas at Vnukovo we have 270,000sqm. So, we have plenty of scope to handle more traffic.”
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Vnukovo is forecasting it will handle an extra one million passengers this year and believes that it can sustain such a phenomenal annual growth rate for the foreseeable future. Its calculations are based on the fact that Vnukovo has witnessed a 26% surge in passenger traffic since the December 2013 opening of its new runway, and rising interest from airlines in launching new services. “Our goal is to handle 30 million passengers every year. This is the figure myself and my partners aimed at six years ago when we decided to develop the airport, and I don’t see a reason to change my mind now,” enthuses Vantsev. But for the time being, Vantsev says it is all about putting the finishing touches to his and his partners’ vision of offering outstanding levels of customer service at Vnukovo. To achieve this, he says, everyone needs to embrace the airport’s customer service philosophy and more staff need to provide “the personal touch” when dealing with passengers. “Adding personal touch is key for any world-class airport,” says Vantsev. “Arguably, we have done the hard part in upgrading Vnukovo’s infrastructure, now it is all about improving the quality of our services and what we can offer our passengers.” AW
SPECIAL REPORT: BRANDS
Adding value Why do airports need a brand? George Karamanos considers the importance of branding and the impact it can have on a gateway’s image.
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very year the Brand Directory, BrandZ, Forbes, Interbrand and other institutions rank the value or ‘belovedness’ of brands, presenting and analysing the performance of the top 100 or even the top 500 brands worldwide. And while Apple, Microsoft, Google, Coca Cola and IBM consistently hold the top rankings, it is interesting to observe that aviation hardly makes it to the top 500, with the exception of the leading aerospace and defense contractors, the two prominent aircraft manufacturers and eight airlines. Whereas airports catered in 2013 for more than six billion passengers, there is no airport brand featuring in these rankings. Before investigating the absence of airports in the top brands list, it is worth defining what a ‘brand’ means. The initial definition of ‘brand’ was the name given to a product or a service, therefore initially, a ‘brand’ would be similar to the current meaning of the word ‘trademark’. During the 1970s, marketers began to understand that there was more to the perception of distinctive products and services than their names. They realised that they could create a particular perception in the customers’ minds regarding the qualities and attributes of each product or service, and they called this perception ‘the brand’. In other words, ‘the brand’ is how the customer or the public perceives the brand offering – both factually and emotionally. And, therefore, while the ‘brand name’ exists objectively and people can see it, the ‘brand’ exists only in someone’s mind. This distinction between the brand name and the brand is easily demonstrated in the airport industry when passengers refer to specific airports. For example, airports like Heathrow, JFK, O’Hare, Frankfurt, Atlanta or Tokyo Narita relate mostly to the location, therefore they are perceived as simply brand names. On the other hand, Singapore, Amsterdam, Munich, Dubai or Hong Kong are perceived as more than just a location, having distinctive passenger experience boosting attributes such as being caring, customer-centric, easy-to-connect, good shopping and a clean and clear logo, making them true brands. Going back to the absence of airport brands on the top 500 list, it is mostly because only over the last 15 years marketing and branding have evolved into a key strategic instrument for certain airports around the world. Contrary to other industries – such as fast moving consumer goods (FMCGs), telecoms, banking, car manufacturers or even airlines -– airports have been slow in understanding the role and importance of marketing and brand building in their overall strategies. Consequently, very few airports have built their products and services around a well defined brand. This is partly down to the fact that the airports have only really transformed into private or self-financed businesses with commercial goals in the last 20 to 30 years, so perhaps it is little wonder that they are lagging behind others in terms of brand awareness, even though they hold such large customer bases.
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But why should airports build their brand? Increasingly, we see consumers holding brands to higher standards. Reputation has never been more important as customers expect brands to operate in accordance with higher ideals and greater responsibility. The best brands understand and appreciate more than just what people ‘buy’ or ‘use’. Instead, they seek to understand and deliver what people ‘buy into’. So, aligning an airport’s brand values with those of its passengers isn’t just about doing good; it’s about good business. And, since there is a significant trend for airport marketing to shift from a B2B to a B2C focus, brand building becomes of real essence. Therefore, developing a higher brand value, relative to other airport brands, should be a result from an airport’s ability to appeal to passengers with a particular balance of being ‘meaningful’ (meet expectations and generate affection), ‘different’ (unique in a positive way) and ‘salient’ (the brand of choice). The key characteristics of successful brands include:
Value In the case of airports this does not relate so much to the prices as such, but to the value of the products and services offered during the passenger’s stay at the airport. Dubai and Amsterdam Schiphol are good examples where passengers perceive the shopping experience at these airports to be of great value.
Relevance It is essential for an airport brand to remain relevant to the passenger experience. Singapore Changi continuously builds its brand around delivering the best passenger experience, using branding in all its aspects of operation and marketing, and therefore consistently ranking for the past 30 years in the top positions of passenger perception as one of the best airports in the world.
Technology While technology is usually associated with operational efficiency at airports, it is becoming more relevant and very useful for brand building. Wi-Fi at airports, for example, in combination with social media are transforming the interaction with the passenger, making it direct and immediate, allowing the airport in many cases to have more effective communication versus customer agents on information counters. No airport can afford to be out of touch nowadays; being social and available 24/7, is one of the best ways to build its brand. And actually, it is an oxymoron that technology becomes the means for a more human and informal communication with the customer. Heathrow, Dublin, Los Angeles and Gatwick are among the most successful airports in using social media to reach to their passengers.
SPECIAL REPORT: BRANDS
Singapore Changi’s ‘Social Tree’ stores the digital memories of passengers. Image courtesy of CAG.
Reputation
Meaningfully different
While an intangible concept, having a good reputation can benefit an airport in a multitude of ways including consumer preference; support for an organisation in times of crisis or controversy; and, the future value of an organisation in the marketplace. Brand strength, what you stand for, is a valuable component of a good reputation. By achieving ‘neutrality’ – the highest ranking – in ACI’s Airport Carbon Accreditation programme, Swedavia clearly demonstrates its environmental responsibility as a company. And this underpins a good reputation.
Customers will stay loyal to brands that meet their needs; even more if they see them as ahead of the game in setting trends. While airport loyalty is difficult to define, since the main reasons for using an airport is not usually the airport per say, in the case of airports competing for the same catchment area, being a ‘meaningfully different’ brand can provide an advantage. The location, nature and passenger base of London City Airport are the elements that have allowed its marketing strategy to successfully build a ‘meaningfully different’ brand.
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SPECIAL REPORT: BRANDS
Tulips in Amsterdam. Image courtesy of The Schiphol Group.
Personality
A great branded experience
A distinctive brand character is more likely to generate customer passion and create brand advocates. A brand personality is something to which the customer can relate, and understanding a brand personality enables the brand owner to deliver a consistent brand experience that connects with customers and leaves a deeper and more sustainable impression. In the case of airports, Singapore Changi and Munich have developed strong brand personalities that extend beyond the passenger base to the greater local and international public. Singapore’s personality includes traits such as enjoyable, efficient, trustworthy, innovative and customer focused. Munich has a brand personality that reflects assertiveness, efficiency, sophistication, corporate responsibility, and sociability.
A brand is only as good as its last experience. Recommendation and word-of-mouth are powerful forces that can make or break a brand even faster in this connected world. Once again Singapore Changi has built its reputation, based on its innovation and customer focus on delivering an unforgettable ‘Changi experience’, therefore providing a great customer experience. Building a brand is a difficult task that requires commitment by airport management, a carefully planned brand strategy that can combine the above elements, an effective implementation plan and time to see the results. But primarily, airports have to consciously take the role of managing the whole passenger experience at the airport, enriching it with its key brand values. As airports turn their focus on consumers, brands that make them stand out from the crowd will help them increase their non-aeronautical revenues, build loyalty, add value to the airport-company, and, hopefully, see them on the top 500 global brand ranking. AW
Globally local or locally global Airports are gateways of globalisation serving on a daily basis a mosaic of travellers. Whereas every airport has a different passenger profile, all passengers expect that their specific needs be met. It is therefore necessary for an airport brand to combine the aspirations of its international clientele with the local characteristics that can differentiate it from the other airports. Copenhagen, Zurich and Hong Kong airports are good examples of airports that deliver truly international brands with local touches.
About the author George Karamanos is managing director of KPI Aviation Marketing Solutions.
The airport to airline branding Airline marketing for airports has become very competitive over the past 10 years as airport marketers strive to develop a focused branding and positioning statements that will noticeably convey their message and differentiate them from other competitors. Delivering a reliable airport operation, offering an attractive incentive scheme, providing effective marketing support and investing in market intelligence cover the four basic airline needs: flawless operation, cost savings, marketing support and information. However, given that today most airports cover these needs in some way or another, a strong brand and a powerful positioning statement reflected on all marketing actions could further build the airport’s competitive advantage and brand value.
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In many cases, airports decide to develop marketing strategies including branding focused only on their airlines customers with logos and taglines that are different from their corporate brand. While this is considered a faux pas in marketing textbooks, the fact that airport marketing is still in an early stage can justify this trend. Airports that have developed strong positioning statements and marketing campaigns specifically for their airline customers include Abu Dhabi (‘The right place, the right people); Athens (‘We deliver’); Bordeaux (‘The big potential: the Bor’doh Vintage’); Brussels (‘Welcome to Europe’); Budapest (‘Where everything takes off’); Prague (‘Prague loves you’); Verona (‘Your better choice’); and Vienna (‘Open for new horizons’).
SPECIAL REPORT: BRANDS
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next step Building a stronger brand can help develop a world-class airport, writes Interbrand Cologne’s managing director, Nina Oswald.
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oday, travellers expect more from airports. Factors such as safety, promptness, and cleanliness – even a premium infrastructure and good technical services – are no longer enough to elevate an airport into the ranks of top airports worldwide. In fact, I would go as far to say that these are now minimum standards all airports are expected to meet. As such, customer expectations are transforming the airport sector. For one thing, despite our growing reliance on digital platforms and modes of interaction, the need for physical transportation is increasing around the world. From the changing transportation requirements of a rising middle class in Asia to dramatic surges in tourism related travel, the mobility mega trend is only getting bigger. Case in point: According to statistics released by the United Nations World Tourism Organization (UNWTO), more than one billion tourists travelled outside their countries’ borders in 2012 alone – a rise of 20 million tourists over 2011 and a new record in international tourism. So, what do airports have to do to make a lasting positive impression on all these travellers?
The new world of mobility is full of opportunity Driving this sea change is a broader shift in the transportation industry. In today’s inter-connected (and more complicated) world, most travellers can no longer rely on a single mobility solution – they require multiple services along their individual journey. Airports and airlines, of course, are integral players in the new world of mobility, but so are car brands, long distance trains, buses and all other transportation systems. These changing needs are pushing innovation, prompting new partnerships and putting pressure on airports to make nice-to-have features standard parts of holistic offers. For example, collaborative consumption (car-sharing) and collaborative offerings (airport train) are becoming more and more important along the traveller’s journey. Partnering will become a critical success-factor for airports in the future, which is the case for brands in other sectors as well. Airports need to build partnerships that extend beyond airlines, technical suppliers and duty free retailers.
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Diversifying will be key to not only building exclusive relationships with the world’s leading airline brands, but also in creating unique and differentiating shopping and entertainment experiences. It will also help expand opportunities to line up partners in the region to build real estate, creating fresh new offerings. Airports are no longer crossroads for people arriving from one destination and heading off to another. They have become an important and integrated part of mobile living. Proximity, therefore, is becoming increasingly important. People typically don’t want to drive for more than an hour from their homes to get to an airport– they want the airport to move closer to where they’re living and working. Additionally, digital applications that interlink platforms also help meet the expectations of those who want to travel smarter and stay connected throughout the journey. The truth is, the airport experience starts long before a traveller arrives at the terminal and doesn’t end when the plane takes off. From comparing prices online and assessing quality of service through Yelp reviews to car services and air travel mobile apps that track itineraries, find flights, or help people make the most of a layover – it’s all a constant feedback loop and part of the overall customer experience.
SPECIAL REPORT: BRANDS
Airports need to understand that they have to deliver a comprehensive and unique experience – beyond their existing corebusiness and platforms. If customer experience is considered through this lens and executed against a strategic vision for what the brand represents, airports have the potential to revolutionise that experience.
Leveraging your brand By looking beyond what airports have been and imagining what they could be, airports may be inspired to rethink their business models. From a classic location-focused service provider to an international airport manager like Germany’s Fraport, from a provider of airline traffic to a whole world of mega shopping like Dubai International or a complete world of its own like Singapore Changi, today’s airports are taking on distinct qualities, attributes and personalities. Already we can see that airports with a unique point-of-view and well-designed experiences for travellers have a stronger brand than the ones that don’t. They stand apart by offering what no other airport can offer in quite the same way. Changi, for instance, not only operates like a city within the city and provides outstanding shopping and entertainment options –
it offers a 360-premium experience that has reinvented what airports can be. With whirlpool baths and massage tables, rooftop bars, LAN gaming areas and free movie theaters, koi ponds and butterfly gardens, Changi is ‘creating joy, wonder, delight’ and bringing unparalleled comfort and luxury to travellers. Other gateways such as Los Angeles and Copenhagen feature distinctive interior design, while Seoul’s Incheon International Airport wows passengers with its bright architecture and exclusive, personalised services. As these airports demonstrate, a strong brand is a key success factor in driving customer preference and securing future earnings, which is why brand building is becoming a bigger priority for many airports. The ability to attract and retain employees is another major benefit in an industry that sometimes struggles with recruitment. In fact, building a strong brand as an employer – with highly motivated employees and an admired corporate culture – will become a major differentiator in the market, especially now that the sector is shifting its emphasis from infrastructures to people and service. So, now that you know the value and benefits of a strong brand, here are five tips that can help your airport become – or remain – a world-class hub with serious brand recognition:
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SPECIAL REPORT: BRANDS
1. Find your brand’s story and bring it to life When it comes to differentiation, storytelling plays an important role. Stories capture the attention of travellers, but also influence B2B partners such as airlines, real estate investors and tenants who increasingly judge an airport’s credibility, status, and success on the basis of the stories it tells. For passengers, choosing to travel through London or Paris is a purchase decision. Similarly, an airline’s commitment to a long-term hub contract or an investor’s commitment to an airport-friendly real estate project, are also purchase decisions. Stories, without a doubt, influence those decisions. Interbrand recently rebranded one of the world’s top gateways, Munich Airport. This work involved refreshing the look and feel of an iconic logo that has endured for 20 years but, more specifically, it was about defining a unique brand proposition. A brand proposition is a short, clear statement or simple idea that provides the rationale for choosing one brand over another. It also provides a central story that conveys the benefits and associations that set the brand apart to employees, customers, partners, shareholders and the wider public. Nike, for instance, embodies the idea of performance, which is at the core of its storytelling – and drives everything the brand does. Another good example is BMW, which puts ‘joy’ at the heart of its story and is a sentiment that touches every aspect of the brand’s image and communications, both internally and externally. Acting as a unifying thread and a guiding principle, a brand proposition helps to drive change within an organisation. In a sector where delivering distinctive stories is becoming as important as delivering infrastructure, the Munich Airport sets itself apart by emphasising both its ability to meet global demand and to express local flavour. The new claim, ‘living ideas – connecting lives’, puts collaboration at the heart of everything the airport does. Reflecting this concept, the visual identity is built around local distinctions and singular experiences. The cornerstone of the new identity, the logo, preserves the original form of the old ‘M’, with the right upstroke in the letter playing a fundamental role in terms of bringing the concept to life visually.
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As a ‘connector’, this portion of the letter is a linking element within the M or between two words and symbolises the place where two lives join together, or where two stories find each other in one place. Used almost like a hashtag, this element visually reinforces the idea of connection that is so central to the rebranding concept. Developed over the course of more than two years, the new brand was designed to strengthen the airport’s already successful position among its global competitors, enhance its appeal among customers and partners, and boost its attractiveness as an employer. As this example illustrates, a central story touches every aspect of a business, from organisational processes and leadership principles to products and communications.
2. Think about the customer experience Airports don’t have to be just temporary stops where people are content to grab a quick snack and magazine. They can be destinations that people look forward to visiting. Most travellers are in an airport for hours, sometimes close to an entire day or night. But are all airports taking advantage of the incredible opportunity they have to impress the masses of people who pass through? Strong brands understand that the retail store, for instance, is a key point of access into the brand experience at large. How do some of the world’s most beloved retail brands – Apple, Burberry, Nike, for example – drive choice and create loyalty? They invite consumers into an experience. They integrate digital into that experience, and create hip, sophisticated, or playful environments (online and off), that bring the brand’s values to life in engaging and memorable ways. Airports must think creatively—and boldly—about how they can shift the traveller’s experience from waiting out the hours in boredom to, “Wow, this airport is awesome! I would come here just to dine or shop!” In that sense, airports can, in fact, learn a lot from the world’s most successful retailers. So, conduct consumer research to find out whether your airport’s offerings and atmosphere are perceived as generic and institutional or warm, friendly and one-of-a-kind. Then use the findings to create richer and more meaningful environments and experiences.
SPECIAL REPORT: BRANDS
A cultural show at Incheon International Airport.
3. Find partners that enhance the airport experience While quality of customer experience is critical to the success of an airport, the ‘partner experience’ will be a growing priority in years to come as well. In fact, as the industry grows more competitive, improving B2C relationships will not be enough in order to leverage an airport’s full potential. This means it is not only the traveller experience that counts – the B2B experience becomes more important as airports begin to expand their business model. As a result, relationship building and the selection of partners is now a fundamental tactic for airports to stay attractive and grow. Having a strong brand attracts travellers, which means it also attracts airlines, retailers, hotels and other partners – and helps airports build and sustain those relationships.
4. Leverage your local DNA and cultural heritage Airports are crucial for tourism and nation branding in that they are the first places people see when they enter another country. Airports, for better or worse, create an immediate impression of a region and culture in the minds of visitors. What does your airport say about your city or country? Do you have the work of local artists and artisans integrated into the environment? Do you serve authentic cuisine and beverages from your region? Is the airport hospitable and welcoming? Culture is a point of difference. Bear in mind that it’s the consumer’s associations with the attributes of a particular region that make them want to visit in the first place. Increasingly, customers expect a greater variety of choices, higher quality food and merchandise, exceptional service, and really want to have a unique, cultural experience with more entertainment options when they’re travelling. How can you meet – or exceed – their expectations?
5. Be a good corporate citizen Airports occupy significant real estate and are at the centre of local and global discussions around emissions, resources and noise control. Being a good corporate citizen and integrating sustainability into airport construction, design, and operations is quickly becoming a smart way to guarantee the long-term future of airports, achieve cost-savings, and differentiate your brand.
Whether optimising the operations of the airfield, boosting energy efficiency, reducing carbon emissions, cutting water consumption, building LEED certified facilities or eliminating waste to landfill through recycling and composting, there is a lot airports can do to reduce their environmental impact and become better neighbours. It’s no longer enough to set targets. Customers are increasingly concerned about their own carbon footprints – and they want to know what you’re doing about yours. Becoming a hub of choice today means minimising environmental impacts, maximising the passenger experience, and building credibility as a sustainable, socially responsible brand that cares about people and the planet.
Brand-building pays off—but it’s a long-term investment All of these elements – customer experience, storytelling, cultural authenticity and environmental stewardship – either build or diminish the value of an airport brand. Another critical factor is employee engagement, as an airport’s employees can become its most valuable customer educators and brand ambassadors. Therefore, airports must make sure that management and employees understand the brand and how the brand is expressed. This way, travellers can have a consistently positive, memorable experience in the city or country they’re visiting – beginning with your airport. Developing and managing a brand is a long-term process that requires commitment, effort, and attention. But, for those willing to make the investment, the returns can be enormous. Besides the creation of a distinct image, a strong brand can help airports maximise the impact of communications, marketing and sales. But, most importantly, a well-managed brand actually boosts business performance, helps reduce risk, and delivers a higher economic value. To reach new heights commercially and financially, today’s airports must learn how to unlock the full AW potential of their brands.
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SPECIAL REPORT: BRANDS
Everybody wins Benet Wilson talks to a handful of airports that have used ACI’s Airport Service Quality survey to enhance the passenger experience and strengthen their brand.
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he Airport Service Quality (ASQ) awards, created in 2006 by Airports Council International (ACI), have become a tool that facilities around the world are using to market their excellence in the passenger experience. The highly respected ASQ awards are handed out based on a passenger satisfaction survey on the airport service experience taken on the day of travel. Every month, departing passengers are interviewed at the gate on more than 30 aspects of their experience at the airport that day, including satisfaction with the facilities, cleanliness and availability of toilets, staff courtesy and the efficiency of the process. As of 2013, ASQ surveys are being done at 275 airports in more than 50 countries, with more than 350,000 passenger interviews conducted.
Halifax International Airport Halifax International Airport Authority (HIAA), which runs Halifax Stanfield International Airport, has won a whopping 28 awards – 16 first place, eight second place and four third place finishes, including Best Airport in the World handling under 5mppa for seven consecutive years. “In addition to this recognition, Halifax Stanfield was inducted into the ACI director general’s roll of excellence, honouring airports that have ranked among the top five airports in the world for five consecutive years in the ASQ ratings,” says the airport’s Kelly Martin, manager of customer relations. Halifax Stanfield was the first Canadian airport and the second in North America to be awarded the ASQ Assured Certification, adds Martin. “This coveted certification recognises HIAA’s commitment to maintaining this industry’s highest service standards.” Halifax’s volunteer host programme – known as The Tartan Team because of their unique Nova Scotia tartan waistcoats – provide a warm and friendly welcome to passengers and visitors, enthuses Martin. “They circulate throughout the airport providing information and directions, as well as, providing assistance to apprehensive travellers,” she says. Halifax Stanfield also maintains personal care emergency supplies for those people in need, said Martin. Supplies include baby formula, baby food, diapers, bottles, cream, and other baby supplies, blankets, sleeping mats, toiletry items, bottled water, and calling cards. “We recognise that air travel, at the best of times, is a stressful experience and that not everyone travels for pleasure. We strive to do everything we can to ease that stress levels of passengers by delivering service The Stanfield Way.” While the ASQ awards are wonderful to win and have provided Halifax Stanfield with worldwide recognition, they are a by-product of the airport’s commitment to superior service, says Martin. “Our passengers and visitors are our primary focus and they will be the beneficiaries of the new programmes and initiatives we undertake to serve them better.” The airport proudly displays its ASQ awards around the terminal building to remind everyone about the commitment to superior service, says Martin.
Passengers are assured of a warm welcome at Halifax.
“Our ASQ awards also serve to put Halifax Stanfield on the global airport map. They serve as a starting point for our Air Service Development team in their discussions with airlines about new routes and new destinations,” claims Martin. “Our airline partners see our commitment to service and they know that we will serve them well as we work toward the shared goal of serving our passengers and our community to the best of our ability.”
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Jacksonville International Airport always does well in ACI’s ASQ surveys.
Jacksonville International Airport Florida’s Jacksonville International Airport (JAX) has ranked fifth of all North American airports in ACI’s annual customer satisfaction survey for the last two years. It was also fifth among airports worldwide serving 5-15 million passengers in 2008 and 2009. The airport uses customer feedback, including data from the ASQ survey, internal comment forms, social media, and face-to-face customer interaction, to improve the passenger experience, says Bryan Long, Jacksonville’s customer service manager. Airport improvements include: creating a standardised customer service training initiative for all employees; upgrading bathrooms; offering improved flight, gate, and baggage information screens; providing free Wi-Fi; delivering more food and beverage offerings for longer hours; creating a ‘Preferred Traveller’ lane at the security checkpoint; and building improved signage. Long also credited its Volunteer Airport Ambassadors, 55 people from all walks of life who donated nearly 10,000 hours of their time in 2013 to help customers. “We would not have the great reputation for customer service without our ambassadors,” he smiles. “Also, the leadership and hard work of the entire Jacksonville Aviation Authority staff is the foundation which makes us one of the best airports in the world. The success of all depends on each team member.” The idea of ranking is central to the nature of competitive spirit, says Long. “But being ranked the best for a given period of time, is not as important as steady improvement over time. The goal should always be consistent improvement in each area,” he states. “The ASQ programme helps us plan both short and long-term goals designed to improve the quality of our delivery and enhance the brand, making JAX a desired location to fly to. Awards will come and go, but the goal is consistent, relentless improvement.” Jacksonville is about always striving for higher satisfaction, says Long. “Where we do use the awards are when we work with our airline partners to grow new services or get more seats,” he reveals. “The awards are also useful for our regional economic development teams who are bringing new businesses to the area. The quality of air service plays a big factor when companies are scouting for locations.”
Moscow–Sheremetyevo International Airport Moscow’s Sheremetyevo International Airport was named Europe’s best airport for the first time in 2012 and successfully repeated the act last year. Talking about the airport’s 2012 success, airport press secretary, Mark Razenkov, says: “One of the main events of 2012 was the full-scale launch of our Airport Operation Centre, acknowledged as the best innovation project in the transport industry.
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“The centre was created to increase production control efficiency, improve response time to different situations and provide passengers and clients of Sheremetyevo Airport with higher safety levels and service quality. “In 2012, the centre ensured the steady and safe activity of aviation and business partners and prevented failures in the airport’s and airlines’ performance due to internal factors.” The growth of passenger traffic was accompanied by acknowledgement of the airport’s service quality, says Razenkov. “In 2012 we won the ‘The Best Russian Airport’ award in Condé Nast Traveller magazine,” he comments. Sheremetyevo continues to combine high growth and traffic volumes with high-quality service for passengers, claims Razenkov. “This is a great success of the management team and the result of a comprehensive programme for the development of infrastructure and bringing the quality of service in compliance with the best international standards,” notes Razenkov.
Guayaquil–José Joaquín de Olmedo International Airport Ecuador’s José Joaquín de Olmedo International Airport in Guayaquil, has won ASQ awards every year since 2007. Spokesman, Mark Rade, noted that airport operator Terminal Aeroportuaria de Guayaquil SA (TAGSA) and the Airport Authority of Guayaquil (AAG) analysed specific ASQ survey findings. This has led to continuous improvements, including: redesigning restrooms with better quality materials and illumination; adding body scanners to international security checkpoints; installing new carpets in passenger holding areas; improved communications with Customs and Immigration services for a better passenger experience; and investing $2 million for a complete remodelling of food providers in the terminal. The objective of AAG is to provide customers with the best possible service, says Rade. “Passenger surveys provide a direct way to understanding the real passenger experience at our airport, which helps us see the airport experience as our customers see it,” he comments. “The ASQ survey allows the airport authority and TAGSA to focus the available resources to accomplish this.” The ASQ programme also allows Guayaquil to benchmark the airport services with other airports, admits Rade. He says: “The results since 2007, we feel, speak for themselves. Even though we are a small airport, we compete with the very best in the world, and we feel confident that the ASQ programme will help us to continue to improve our services over the years to come.” AW
SPECIAL REPORT: BRANDS
Food for thought Kevin Brocklebank discusses some of the key branding challenges facing operators of airport shops and restaurants.
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always find meeting new people to be a great way of learning more about the retail channel, especially when that inevitable question (So what do you do?) comes up. The conversation then normally goes something like this: Them: “So what do you do?” Me: “I help airports, shops and brands by showing them how to make a lot more money.” Them: “Oh. That sounds interesting...” they pause. “Is that duty free shops?” Me: “Yes, that’s right.” Them: “So you tell them where to put things then?” Me: “Yes, that is part of it. What do you think of airport shops?” Them: “Ah, I always have a look, see what is there. Some of it can be expensive. Captive audience though, aren’t we? No choice but to pay higher prices for things like a bottle of water.” Me: “Last time you flew, did you buy anything?” Them: “Yes I did actually. I picked up a bottle of perfume. Cheaper than the high street.” Me: “Do you remember the name of the shop?” Them: “No, it’s just the duty free shop isn’t it? Just part of the airport.”
From this typical conversation, we have an anecdotal observation that the shopper often perceives the tax and duty free store to be part of the airport. This prompts some serious questions and implications for travel retailers. Some of them include: Is it necessary to differentiate and stand out from the airport?; What is the impact on the perceived experience at the airport as a whole?; Does bad service at security impact the attitude towards the retail offer?; Does bad service in stores impact the perception of the
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airport?; How do we overcome the challenge of language?; And, what should the brand stand for? Not forgetting: How do you attach brand values to the company name, symbol or logo?; Why should the shopper create any form of relationship with your brand?; How can you make your brand memorable?; How do you overcome the challenge of frequency?; And, how does branding impact your tender strategy?
KEY CHALLENGES I believe that duty free retailers face a unique brand challenge because in order to deliver results they need to establish brand value with channel stakeholders at the same time as creating a relationship with the shopper. When it comes to establishing brand value with channel stakeholders, the retailer must create a corporate personality that will demonstrate and represent its capabilities and values effectively. Indeed, reputation management is key, especially as brand perception of a retailer could be critical during the tender process. When it comes to creating a relationship with the shopper, retailers should draw on the classic stages of marketing to create ‘awareness’, generate interest and elicit ‘desire’ that leads to ‘action’ – the shopper buying! The challenge that retailers have now, is how to establish a brand in the mind of the shopper?
ESTABLISHING THE BRAND WITH THE SHOPPER Without a doubt creating a retail brand in the eyes of the shopper is difficult in travel retail. However, we are helped by the fact that there are three key elements required to create a relationship – the need to connect emotionally, drive consistency, and increase frequency.
SPECIAL REPORT: BRANDS
Popular promotions: A Hendrick’s Gin circus at Singapore Changi and a Bacardi Global Travel Retail rickshaw ride at Auckland International Airport.
Connect emotionally Emotions are a powerful thing. Tap into the shoppers emotions in a relevant way and you are on your way to connecting with them. Airport retailers are starting to move towards creating engaging and memorable experiences that capture the imagination of the shopper. Brands such as Hendrick’s Gin, for example, provide eccentric and interesting experiences in duty free stores to surprise and connect with the shopper. Are retailers able to replicate this for themselves or even piggy back off the product activations?
Drive consistency Consistency is critical in retail. Delivering a reliable and consistent experience takes effort, control and staff engagement, but it will pay dividends. Next time you go into an Apple store, try and move the Perspex show cards next to the product. If you are able to move them, you will notice that there are subtle markers on the table that specifies EXACTLY where the ticket should go, where the products should go and how they should be displayed. Nothing is left to chance. Every time I have been into an Apple store, the experience has been consistent worldwide. This makes it easy for the shopper to understand the concept and make it easier for them to connect with you. ‘Standardisation’ is nothing new, just look at McDonald’s with their ‘off the shelf restaurant designs’, standardised colour palettes, standardised fonts and standardised service experience. Which one of us, for example, has not been asked the question, “Would you like fries with that?” Standardisation not only creates a consistent experience but it also enables significant cost reduction. Within travel retail, almost every store is different. The latest trend is to create a ‘sense of place’ that is associated with the country or city the airport is located in, takes localisation to an extreme level. There are some retailers that incur huge refit costs because they re-design everything from fixtures through to signage in each store they work within (even if it is in the same airport). This adds a level of unnecessary complexity both for the shopper and for every function within the organisation.
MAKING A BRAND STAND OUT The weak link that airport retailers must contend with is the issue of frequency, as generally, the largest passenger group is made up of those who may travel once or twice a year at most. Such a low frequency, where dwell time is limited, makes it difficult to establish a long-term relationship with the shopper.
It is doubly hard to make a brand standout from the rest when sometimes shoppers are not always aware of the store that they are visiting! This, of course, leads to a question regarding logo design.
Simplicity Is the logo instantly understandable? Number one second rule here – instant means instant. Does it transcend language barriers? We are in an international environment after all. Classic examples include the Apple logo and McDonald’s ‘Golden Arches’. A brand logo must be so simple that it can be what the shopper thinks it should be for, as they say, ‘perception is reality’. A brand then, is really a coat hanger for shoppers to hang their perceptions on.
Values The retailer’s next task is to communicate what it stands for. Aim to do that in less than 100 characters and you have something that shoppers can take with them and share.
SO SHOULD A RETAIL OFFER BE DIFFERENTIATED? One of the questions raised earlier is, should a retailer work to differentiate itself? For example, should the ABC store in Airport X be called ‘Airport X Duty Free’ with ‘operated by’ and an ABC logo? Do travel retailers have enough brand equity alone to have leverage with shoppers? For retailers to effectively build their brands, the shopper must be able to walk into a store and instantly know where they are in terms of the brand and products on offer. Indeed, the brand should be in the very fabric of the design of the outlet from the colour of the walls, the design of the fixtures and even the tiles on the floor. And these are the traits that could appear in every store in their portfolio.
In summary Connect emotionally with the traveller but make it memorable; drive consistency through a well designed and rehearsed experience; increase frequency via social media channels; ensure your logo is instantly recognisable; and, be clear on what your brand stands for and tell your shoppers. Anybody still doubt the value of branding in the airport AW retail environment?
About the author Kevin Brocklebank is founder and managing director of global retail consultancy One Red Kite Ltd. Visit www.oneredkite.com for more information.
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SPECIAL REPORT: BRANDS
Open all hours Julián Díaz, CEO of Dufry, discusses the company’s brand, market presence and customer service commitments. How important is it to have a strong duty free brand, and is this more important for your airport customers than passengers?
What are your biggest airport locations in terms of the number of outlets, floor space and revenue generation?
It is very important to have a strong duty free brand for all stakeholders. For the airports, it is the confidence that they have a strong and reliable partner. For the customers it is the message that they will have an exciting shopping experience and will find the products they are looking for.
Our largest duty free store is in Terminal 2 at Guarulhos International Airport in Brazil, which, following a 1,600sqm extension, offers more than 3,142sqm of retail space. Our next biggest airport locations are the 1,400sqm walk-through Dufry Boulevard at Mexico City International Airport and our new white flagship store in Bali, which combines modernity with traditional local Indonesian motives. At 1,150sqm it is Dufry’s largest store in Asia.
In your opinion, what does the Dufry brand for? The Dufry brand means travel retail ‘know how’, modern shops with exciting architecture – especially at some of our flagship stores – and excellent customer service.
Does it help engender customer loyalty? In general, I think it is fair to say that passengers are looking for particular duty free products at airports and are not really concerned who the retailer is. Having said that, a good experience in our shops can engender loyalty and lead to customers actively looking for Dufry outlets. A satisfied costumer can also become great ambassadors and communicators for a brand because they will write about their positive feelings in social media and recommend Dufry.
When and where did Dufry open its first airport outlet and how many gateways are you present at today? The first duty free shop in an airport was opened in 1952 in Paris le Bourget. Today, we operate in 184 airports.
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What is your growth strategy? Our growth strategy is exactly what you have witnessed over the past 18 months – namely to focus on tourist destinations and emerging markets in Asia, Latin America and the Mediterranean through new concessions and acquisitions. We have been pursuing this strategy since the beginning.
Are traditionally big spending Chinese, Japanese, American and Russian passengers your biggest customers? Dufry serves many customer nationalities and profiles. Dependent on the shop location you will find the leading customer base. For example, the majority of customers in our Arrivals shops in Brazil are Brazilians and Argentineans and not Chinese or Russians. It is true that the latter are known to spend more money on luxury goods.
SPECIAL REPORT: BRANDS
Has Dufry embraced social media and the revenue earning potential of the Internet? Social media is undoubtedly an inherent part of engaging customers and other stakeholders, and as a result, Dufry is present on different social media sites like Facebook, Twitter, LinkedIn and others. Regarding the revenue potential of the Internet, I still think that we have great opportunities for expanding and improving the business through adapting new technologies, optimising retail practices and improved operational capabilities. I am convinced that new technologies will contribute substantially to our business, particularly with regard to our approach to potential customers before they travel. A better understanding of people’s profiles, for example, will help improve the way we operate today.
What is the key to good customer service? It may sound obvious, but the key to good customer service is to understand the needs of the customer. Dufry does a lot of customer research and, we believe, offers unique levels of customer service within the industry. We have, for example, created a worldwide customer service department to guarantee customer satisfaction. Initiatives such as our online pre-ordering system, sales training, mystery shopping programmes, and an after sales call centre that is open 24/7 are all designed to raise the bar on customer service.
Is it almost impossible to fail as an airport retailer as you have a captive audience year-round? Indeed, the possibilities that airports offer are excellent for retailers, but if the operator lacks the know-how about its customers, is selling the
wrong product or has neglected to offer a good shopping experience, then an outlet could easily to fail even, under these excellent conditions.
Is it possible to name the highlights of your 10 years in the hot seat at Dufry? I have certainly enjoyed seeing Dufry become one of world’s leading travel retailers since being publicly listed in 2005 and the last decade has been one of huge growth for the company. When I became the CEO of Dufry the company had 227 shops in 25 countries. Today, we have 1,388 shops in 47 countries. Our annual turnover has also more than quadrupled from CHF656 million (€556 million) to more than CHF3 billion (€2.43 billion) in 2012. We have witnessed many milestones as we have pursued our strategy of growth and acquisitions very determinedly over the last decade. Among the most important deals was the 2006 acquisition of the leading travel retailer in Brazil; the 2008 acquisition of Hudson Group in the US; the 2011 deals for travel retailers in Argentina, Uruguay, Ecuador, Armenia and Martinique; the 2012 acquisition of a 51% stake in RegStaer in Russia; and finally, in 2013, the purchase of Hellenic Duty Free Shops in Greece.
What are the biggest challenges facing the duty free industry today? Challenges are changes to legislation which may affect the sale or consumption of products traditionally sold by the duty free industry. I am specifically talking about the threat to tobacco sales and alcohol restrictions, the one bag rule, new security measures that impact on the travel retail environment and, political unrest. AW
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SPECIAL REPORT: BRANDS
Brand evolution Airport World discovers that the Vantage Airport Group rebrand capitalises on the global view of Vancouver International Airport’s investment partner.
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n 1994, Vancouver International Airport formed Vancouver Airport Services (YVRAS) as an entrepreneurial experiment into the business of airport privatisation. Vancouver International Airport (YVR) had transitioned to the private sector two years prior and the idea of private operators entering an industry traditionally maintained and managed by the federal government was still a relatively new concept in Canada and throughout most of the world. Capitalising on trends in private management, ownership and investment developed by the airport authority at YVR, Vancouver Airport Services quickly began leveraging and adapting the award-winning airport’s experience, best practices and differentiating concepts (such as showcasing each airport’s unique ‘sense of place’) and applying them throughout the world. Fast forward nearly 20 years to 2012: YVRAS, now an industry leading manager, developer and investor of airports worldwide, unveils its new name, Vantage Airport Group, and brand image – one that better reflects the company’s worldwide network while still highlighting its roots in the award-winning YVR. According to Vantage’s senior director of communications and marketing, Rebecca Catley: “Vantage was formed as an entrepreneurial endeavour and was one of the first companies to enter the business of airport privatisation. “As our history is inextricably linked to YVR, it was important for us to create an identity that would honour our origins. At the same time, we’d grown up and wanted to mark our independence and maturity as a business.”
A ‘brand’ new world At the beginning of the rebranding exercise, Vantage conducted qualitative research that began with a series of interviews with employees, partners and shareholders.
“We believed our brand didn’t need to be created, but rather revealed,” says Catley. “It was important for us to understand how our brand was being talked about in the real world, so that any new representation would be consistent with our past.” Under the YVRAS brand, there was a degree of confusion within the aviation industry and general public. With the distinctive ‘YVR’ in the name, it was assumed the company either operated the award-winning airport or, was a wholly-owned subsidiary – both of which were understandable misconceptions given that Vancouver Airport Authority was and remains an equity shareholder in the company. What the research revealed was the shared passion, innovation and ingenuity of the company and its people. It also identified that the company’s global presence provided a unique opportunity for sharing best practices across its network. These findings led way to the company’s name, and logo brand promise: Passionate about people, performance and place.
More than a name and logo As for the name, it connects to the company’s strong Vancouver heritage and plays on the word advantage. In addition, a vantage point represents a view from above, or a cut above the competition. The logo is inspired by a departure, and in the negative space, a check mark indicates a methodical and detail-oriented approach and doubles as an aircraft taking off. It connotes rising values, forward thinking and new possibilities. The attributes of the brand are balanced but dynamic, credible, positive and positioned AW for growth.
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UK CAPACITY CRUNCH
Battle of Britain What next for the UK in terms of airport expansion? Martha Grekos provides a progress report on the work of the Airports Commission and the possible options open to the government.
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he Airports Commission, led by Sir Howard Davies, was set up in 2012 to take a fresh and independent look at the UK’s future airport capacity needs. It was tasked with producing an Interim Report by the end of 2013 – setting out the nature, scale and timing of steps needed to maintain the UK’s status as an international hub for aviation, alongside recommendations for making better use of the UK’s existing runway capacity over the next five years – and a final report by summer 2015, setting out recommendations on how to meet any need for additional airport capacity in the longer-term.
Shortlisted options The Interim Report was published on 17 December 2013. This assessed the 52 proposals for new runway infrastructure the Airports Commission received, assessing these against its sift criteria by considering economic, environmental and social costs and benefits in addition to operational and technical feasibility. The outcome of this initial sifting process was that two potential sites were selected for further analysis and assessment – Gatwick and Heathrow. At Gatwick, the Airports Commission’s analysis will be based on a new runway over 3,000m in length spaced sufficiently south of an existing runway to permit fully independent operation. While at Heathrow, the Airports Commission’s analysis will consider two potential runway options: – A new 3,500m runway constructed to the northwest of the existing airport, as proposed by Heathrow Airport Ltd, and spaced sufficiently to permit fully independent operation; and – An extension of the existing northern runway to the west, as proposed by Heathrow Hub Ltd, lengthening it to at least 6,000m and enabling it to be operated as two separate runways: one for departure and one for arrivals. The Airports Commission said it had concluded that there was a need for one net additional runway in the south east by 2030, and likely demand for a second by 2050. However, it also stated that as both airports agreed there was not yet sufficient commercial demand for both to build new runways, only one of Heathrow or Gatwick’s runways would go ahead now, if recommended.
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Image courtesy of Gatwick Airport.
Options not shortlisted The Thames Estuary airport options were not shortlisted, as the Airports Commission believed that these presented “many challenges and uncertainties”. It also considered that the Thames Estuary airport options were extremely expensive (around five times that of the three shortlisted options); would present major environmental issues; and, the overall balance of economic impacts would be uncertain. The Airports Commission decided not to shortlist the Isle of Grain option, but it will look at it in the first half of 2014 and “will reach a view before the end of [that] year as to whether such an option would offer a credible proposal for consideration alongside the shortlisted options”. The Stansted Airport options were not shortlisted either, because in the Airports Commission’s view “its volumes have fallen in recent years and there is considerable spare capacity, unlike at Gatwick. “In addition, a large hub airport would be close to the coast of the Estuary, highly disruptive to airspace and would not present the same regeneration opportunities.” However, the Airports Commission is willing to consider it as a plausible option for any second additional runway in the 2040s.
Short-term options The Airports Commission has also put forward some short-term options to improve the operational efficiency of UK airports and airspace:
UK CAPACITY CRUNCH The Airports Commission will publish a draft Appraisal Framework for consultation early in 2014. This will set out details of how scheme designs should be developed and how scheme impacts will be appraised. It will also set out in early 2014 more details of how it will take forward its further analysis of the option for a new hub airport in the Thames Estuary. Lastly, the Airports Commission will publish as part of its final report its recommendations on the appropriate legal and planning processes that should be used to expedite the delivery of new airport infrastructure. It would be interesting to see whether the Airports Commission will be accepting the status quo of having to use the Planning Act 2008. The Planning Act 2008, as modified by the Localism Act 2011, put in place a new system of development consent for Nationally Significant Infrastructure Projects (NSIPs), including certain types of energy, transport, water and waste projects. Under this system, planning applications for NSIPs are examined by the Planning Inspectorate, in the context of National Policy Statements (NPS) produced by the UK government. NPSs include the government’s objective for the development of NSIPs in a particular sector, aviation, for example; give reasons for the policy set out; include an explanation of how the policy takes account of government policy relating to mitigation of, and adaption to, climate change. NPSs undergo a democratic process of public consultation and parliamentary scrutiny, before being designated (published). They also provide the framework within which inspectors make their recommendations to the relevant Secretary of State, who ultimately takes the decision on whether to grant or refuse development consent. • An ‘optimisation strategy’ to improve the operational efficiency of UK airports and airspace, including: airport collaborative decision making; airspace changes supporting performance based navigation; enhanced enroute traffic management to drive tighter adherence to schedules; and, time based separation. • A package of surface transport improvements to make airports with spare capacity more attractive to airlines and passengers, including: the enhancement of Gatwick Airport Station; further work to develop a strategy for enhancing Gatwick’s road and rail access; work on developing proposals to improve the rail link between London and Stansted; work to provide rail access into Heathrow from the south; and, the provision of smart ticketing facilities at airport stations. • Trials at Heathrow of measures to smooth the early morning arrival schedule to minimise stacking and delays and to provide more predictable respite for local people. • The establishment of an Independent Noise Authority to provide expert and impartial advice about the noise impacts of aviation and to facilitate the delivery of future improvements to airspace operations.
Next steps From now until the publication of the Airports Commission’s final report by summer 2015, the designs of the shortlisted proposals will be further developed and subjected to more detailed assessments. There will be a consultation on the shortlisted options and associated appraisals results in the autumn of 2014.
Conclusion The Airports Commission’s work remains a big challenge. Whatever its final recommendations in 2015, it will be impossible to reconcile the different views of national politicians, local politicians, airlines, airports, environmental campaigners and NIMBY-ism (‘not in my backyard’). There is no guarantee that whatever party, or combination of parties, is in power after the 2015 election it or they will adopt the Airports Commission’s final recommendation, but, the need for additional capacity has never been greater. The debate is often framed as if government can dictate where airlines fly, but ultimately, it is the airlines who will decide which airports they serve. Faced with high fuel prices and in many cases, difficult market conditions, airlines have to put their aircraft where the money is. Aircraft are truly mobile assets – they do not have to come to the UK. If the capacity is not available at the right UK airport they will go elsewhere in the world. The UK’s future as a global aviation hub demands that a clear decision be taken. We keenly await the AW publication of a robust final report.
About the author Martha Grekos is a principal associate planning and parliamentary team with Eversheds.
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HUMAN RESOURCES
PEOPLE
matters Worth the investment Richard Plenty and Terri Morrissey provide their thoughts on: Investing in people.
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elcome to the first regular ‘people’ column in Airport World where we will look at some of the key leadership, organisation and people challenges faced by airport managers and leaders around the world. We’ll be drawing on our experience as organisers of the annual ACI Europe Leadership and Change Management Summit and as the designers and trainers of the ACI World Airport HR programme to ensure we choose relevant topics! Let’s start with a basic question. Do airport managers spend sufficient time on people matters – in particular developing a high performance ethos and organisation culture? Put it another way, does a relentless focus on ‘doing things’ – answering the email, ticking off the daily ‘to do’ list, attending routine meetings – get in the way of investing the time, energy and commitment needed to motivate and engage people and get the most out of them? People are generally the second biggest cost for airports after infrastructure and capital. There’s a mass of data to show that organisations with motivated and engaged staff get much better business results than those which don’t – hardly surprising when the evidence shows motivated people are generally more committed and prepared to go the extra mile for their organisation. Yet in our experience the investment in management time, effort and energy needed to optimise this investment in human resources is rarely adequate.
So what can be done? We see three important steps: • Persuading the top management team that making a systematic effort in designing a high performance culture and improving staff engagement is worth spending time on and will ultimately result in dramatic improvements in business performance. • Developing a clear and deep understanding of the current organisation culture and climate. Many efforts that are made to improve motivation are targeted too imprecisely and make very little real difference. Staff motivation can be affected by many factors including: leadership, clear objectives and targets, clarity of roles, communication, training, adequate systems, good support and colleagues, fairness of pay and conditions, personal development opportunities and business circumstances. So make the time to speak with people individually, use focus groups and team meetings to understand the problems and, if possible, conduct a benchmarked survey (such as the ACI Europe AirPeople Survey) to pinpoint specific issues. • Design, deliver and communicate an action plan that is consistent with the airport business strategy – and have the courage to follow it up. Invest more time in your people – and you will get results!
It has been a busy start to 2014 with a number of high-profile changes in the top jobs at airports across the globe. In Sharjah, long-serving director general and former ACI World chairman, Ghanem Al Hajri, has retired after 36 years with the UAE gateway. Al Hajri, who helped launch Sharjah-based low-cost carrier Air Arabia, has been replaced by Salim Al Midfa who will serve as chairman of Sharjah Airport Authority. Meanwhile in India, Alok Sinha, the country’s Joint Secretary of the Ministry of Civil Aviation has been appointed chairman of the Airports Authority of India (AAI) after the sudden departure of VP Agrawal. Sinha will act as chairman until a permanent replacement is found. Elsewhere, Warsaw Chopin and Polish Airports have a new general director after Michał Kaczmarzyk replaced Michał Marzec in early February. Kaczmarzyk is a graduate of the Global ACI-ICAO Airport Management Professional Accreditation Programme (AMPAP) and former president of the board of LOT Cargo. And, ACI-NA has named Kevin Burke as its new president, succeeding interim president, Deborah McElroy, who held the reins after Greg Principato stepped down. “When ACI-NA undertook the search for a new CEO, our priority was finding a dynamic, visionary individual who could lead us confidently toward our goals,” enthuses chairman, Mark Reis. Burke comes to ACI-NA after nearly 13 years as the CEO of the American Apparel and Footwear Association. Principato recently joined National Strategies LLC as the company’s senior adviser for its transportation and infrastructure practice.
About the authors Richard Plenty and Terri Morrissey are directors of This Is. They can be contacted at info@thisis.eu
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E G N A H C X E G N I T E K R A M PORT
MARKETING
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SPOTLIGHT ON GATWICK’S REBRAND
Today’s airport business and the modern multi-channel environment that we live in allow airports to collaborate effectively with passengers and potential passengers on brand strategies.
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avid McMullen, vice president of airports at SimpliFlying talks to Gatwick Airport’s Jeremy Fletcher about the implications of Gatwick rebranding itself as ‘London’s airport of choice’, the process behind it and how integrated communication efforts are used in pursuit of these goals.
David McMullen.
Jeremy Fletcher.
A reality check on branding McMullen: We are witnessing many established airport brands repositioning to better meet customer needs. Why did Gatwick feel the need for change? Fletcher: The sale of Gatwick meant we needed to distance ourselves from our BAA heritage. We wanted to set ourselves apart and make it clear we had become a competitor. Gatwick, through research, exemplified a personable, friendly and professional approach, and these were excellent core values to build upon. McMullen: Indeed, it is important to find out what the current brand perception is before further action. Tell me, what is the new brand direction at Gatwick now? Fletcher: Our new identity was crafted to emphasise ‘your London Airport’. Be it passengers, employees, airlines, retailers or partners, we all have a responsibility of ownership around the brand. Clearly the identity is a small part of our brand and how it is portrayed, we cover the key elements of physical, digital and emotional touch points.
The relationship between airport brands and their customers McMullen: Speaking of touch points, new media channels and social networks have loosened control over brand messages. We always advise our clients to put in place measures to stay
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connected to the consumers and ensure the consumer can have an active role to play as well. Fletcher: We see it as more of an open network of opportunity. We have embraced a large number of the social platforms because they allow us to have open dialogue. This has almost become expected these days and it is important to reach our diverse audience groups with diverse messages. McMullen: Of course, the relationships between brands and their customers have now become more open-ended as online discussions extend the brand experience before and long after the ‘travel phase’ of the traveller’s lifecycle. Social media is especially valuable in capturing customer insights relating to brand position. Fletcher: Time-sensitive information is critical in allowing passengers to feel informed and in control. We use Twitter and our website for key updates. Feedback from these channels is directed to our core operational teams through daily performance meetings. In addition, having established a passenger experience group made up of teams across the organisation, we can ensure that we are focusing on issues that matter to passengers. McMullen: In the case of Gatwick, how do you see social media helping the airport to gain competitive advantage over neighbouring airports – or even competing European or global airports? Fletcher: We strengthen our competitive position by sharing the good things that we are doing, and building a network of ambassadors who will share these positive stories for us. As our network of routes expand, we need to find new opportunities for communicating to a wider audience. I have a question for you now. As the UK market has changed significantly in the last four years, do you think that UK airports have become more competitive with each other? McMullen: Effective marketing is critical to creating a successful airport. Increasingly over the last 12 months, customer intimacy and loyalty are common topics when we speak with airport CEOs. Airports need to establish a market position based on understanding the market and competition, whilst appreciating the dynamics of the airline industry. They can actively define this or passively permit the market to create the position. Competing airports also define your position in the market – particularly with a strong network of brand ambassadors on social media. Airports like Gatwick have recognised that the perceptions
MARKETING
of both can be shaped by your own marketing strategies. If we look at the London region as an example, Gatwick has six rival airports and even competes with the Eurostar on European routes, not forgetting the fierce competition from other UK runways like BHX & MAN. Social positioning will become key to an airport’s success. Through our ongoing research we’re already witnessing that 52% of global airports are focusing on air service development/ passenger development in their social media campaigns.
Knowing what matters in airport marketing McMullen: When creating or re-energising a brand, it is vital that airports understand where they are – relative to other airports and/or other industries – to measure the impact of their efforts. How successful has Gatwick’s social media strategy been in becoming ‘London’s airport of choice’? Fletcher: We regularly review our success criteria. We want to be sure we’re getting it right. Our award cabinet for social media is expanding, such as the ‘airport of the year award received at the National Transport Awards, Transport Times. It is about telling people what we are doing and making sure that service is consistent and passenger-focused. We also use external sources like YouGov for brand research and passenger research and feedback. McMullen: How does Gatwick measure the impact from their branding and customer service initiatives such as the live Twitter chats? Fletcher: Seeing the involvement and responses to Twitter, alongside our ever-increasing social media followers, allows us to identify where we are making an impact. It is vital that we are constantly engaging and evolving to ensure we stay ahead of the game.
Success comes with dedication McMullen: Training is often overlooked by many organisations, especially in social media. In our recent survey with 46 global airports, although the majority invest in at least one day of social media training, it is
clearly not enough if they want to achieve business goals effectively. Fletcher: At Gatwick, all teams involved in the use of social media are trained on various platforms to handle both daily conversations and in times of crisis. Images are increasingly important in telling and sharing stories. We recently worked with @Oggsie to train a team of staff Instagrammers on ‘social photography’, editing and hashtag usage. McMullen: It is very encouraging to see how Gatwick uses ‘social photography’ to drive the footfall of travel retail and energise sales even further. We see revenues becoming an important business goal to be driven on social media for airports very soon. Fletcher: How does SimpliFlying see its involvement in the industry in terms of influencing best practice and evolution? McMullen: It begins with spearing the awareness about how consumers have evolved to become connected travellers today. At SimpliFlying, we developed a lifecycle that identifies key stages and objectives of the connected travellers. This helps airports and airlines understand where the windows of opportunities lie, be it for brand awareness or selling. Compared to airlines, airports are just starting to catch up to this phenomenon. Fortunately, there are a handful of airports such as Gatwick that have showcased innovative marketing. As we work alongside some of these leading airports to inject fresh perspectives, we seek to extend our knowledge and expertise to more in the aviation industry to help them think differently in this age of connected travellers. AW SimpliFlying has worked with over 40 airlines and airports globally to help them think differently about aviation marketing. David McMullen leads SimpliFlying’s global airport engagement projects.
s hange? Send u xc e A & Q xt e n in the X to see featuredn Twitter #airportmarketing ke li u yo ld u o w o Which airport ns or join the conversation your suggestio AIRPORT WORLD/FEBRUARY-MARCH 2014
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AIRPORT DESIGN
Bigger, the better? Richard Gammon explores what effect terminal size can have on passenger experience, operational efficiency and commercial effectiveness while giving us a glimpse into what the terminal of tomorrow might bring.
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s the concept of hub airports has developed and the nature of competition between them increased, we have seen a global trend in airport design in recent years towards the development of progressively larger and larger terminals. But, does bigger really mean better? The drive to develop larger terminals has been prompted by the increasing need to improve operational efficiency and flexibility, improve passenger experience, and maximise revenue generation through concentrated, centralised commercial and retail offerings. In many instances, airport terminals have also become a destination in their own right and a status symbol through which to impress visitors arriving into the country. This is especially true when we look to locations such as the Middle East, home to some of the largest terminals in the world. From Dubai Terminal 3 to new facilities being built or about to open in Jeddah and Doha respectively, size is everything and each new development competes for the grandest space. If we look at how IATA’s Level of Service (LoS) rating judges a terminal’s performance, it focuses on two determinants, ‘space per passenger’ and ‘passenger process times’, which also translate into space.
Doha’s new Hamad International Airport is due to open later this year.
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Under these criteria, it could be deduced that larger terminals provide more space per passenger, meaning higher LoS and therefore greater passenger satisfaction. Certainly, some of the largest terminals around the globe consistently score highly in passenger satisfaction scores and are at the heart of very successful airports. Conversely however, if we look at the terminals which are rated the best in ACI’s annual Airport Service Quality (ASQ) survey, they include Incheon and Singapore Changi’s T3, which although not small, are nearly three times smaller than their Middle Eastern cousins. While big doesn’t necessarily mean bad, it cannot be proven that bigger equals better. Likewise, it cannot be said that small necessarily means best. Perhaps the issue is more complex than size – is there something else that contributes to a terminal’s success? To truly understand this issue, we must look at each element in detail – passenger experience, operational efficiency and commercial effectiveness – to really understand the impact of scale.
Passenger experience On entering or passing through a space, people will automatically access, analyse and react to the environment around them. This reaction will occur both consciously and subconsciously and will usually lead to both psychological and physiological effects. Mehrabian & Russell (1974) noted, “The three fundamental dimensions that affect human behaviour in an environment are pleasure, arousal and dominance”. Put simply, people feel most comfortable when they are in an environment that they understand, feel safe in and have some control over – one that provides a sense of wellbeing. But how do people perceive and engage with their environment? Research has shown that perception and engagement will be influenced by the following factors: scale and proportion, enclosure and boundaries, and legibility and navigability. To create the optimum space, it is important to ensure that each of these factors is considered in partnership. In summary, the success of a space in terms of passenger experience cannot be judged solely by scale alone. How successfully each of these factors – scale and proportion; enclosure and boundaries; and legibility and navigability – is optimised within a given space, regardless of the size, will determine how positive the resulting passenger experience will be.
AIRPORT DESIGN Operational efficiency and commercial effectiveness Within terminal design, we have seen a continued trend towards centralising operational processes into a single ‘central’ facility. If we look at Heathrow’s terminals for example, security search, immigration, connections and customs are all located in a single centralised facility. This is not only for space optimisation but it can be argued that control authority stakeholders distinctly favour singular centralised process facilities as this results in efficiencies in resource management. This trend for singular centralised processes continues when designing the retail offering. If we look again at Heathrow and their established policy for all existing and future terminals, there is a desire to incorporate a single walkthrough World Duty Free store immediately after security search. The rationale behind this is that 100% of passengers are exposed to the retail offering, which in turn guarantees maximum penetration. In addition, the current commercial/retail planning policy at Heathrow is to encourage footfall past as much retail frontage as possible on the way to the gates and to minimise the need to duplicate unit types and specific stores. This is a not a unique proposition, and indeed it is a principle that has been employed in HOK’s proposals for the development of Riyadh’s King Khalid International Airport. This design principle, of course, is wholly supported by the retail tenants whose commercial performance will be affected by maximising exposure, increasing their efficiency and maximising spend per square foot of retail space. While this works well for Heathrow’s terminals given their relatively modest scale, there is a point at which centralising facilities becomes problematic. This occurs for a number of reasons – firstly, the scale of the facility and the management of passenger flows into and out of the facility, in other words managing and balancing demand. Secondly, managing the walking distances to a single facility where the terminal is very large and dispersed, and thirdly, with large commercial facilities, ensuring that the whole of an area is ‘shoppable’ without the need for duplication.
This ‘point’ will vary depending on the configuration of the building but there are a number of examples worldwide such as Beijing’s T3 and Frankfurt’s T1 & T2 where both operational and retail facilities have been split and decentralised due to either scale and or/balancing demand and operational effectiveness. Whilst it cannot be said that a decentralised design leads to reductions in operational and commercial effectiveness, what can be said is that the size and scale of a building can influence both operational and commercial considerations. Moreover, it is not just size that influences design but also the specific configuration, arrangement and inherent constraints of a terminal that need to be considered when looking at building successful spaces. There is a fine balance to be struck between maximising operational efficiency and commercial return without sacrificing a direct, convenient and humane passenger journey.
Conclusions So does size really matter? In short, yes it does. Size and scale are crucial factors to consider when looking at terminal design. Get it wrong and your customers could feel overwhelmed, uncomfortable and lost, resulting in poor passenger experiences, reduced operational efficiency and retail offerings falling short of their potential. However, it is not just about size – these problems are symptomatic of terminals both large and small. As airport terminals continue to grow ever larger in future, the key will be creating intuitive design that provides both the space but also the comfort and ease that passengers need whilst reconciling the need to maximise non-aeronautical revenue. The world’s best airports have secured such a title not because of their size, but rather because they hit the sweet spot where the scale, proportion, legibility, navigability and characteristics of the architecture are optimised – and, it is accompanied by high standards of customer service. The challenge for airports of tomorrow is to ensure they do the same. As we move towards the future, the traditional concepts of ‘optimum’ sized terminals are already starting to shift and we at HOK predict that there will be a maximum ceiling for the size and capacity of the centralised model and a shift towards decentralisation. AW
About the author Richard Gammon is senior vice president & director of aviation and transportation at global design, architecture, engineering and planning firm HOK (www.hok.com).
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SECURITY: PASSENGER SCREENING
Screen test Rapiscan’s Frederic Brouiller considers whether passenger screening can ever be passenger friendly.
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e all know how the story can go when it comes to a bad experience travelling through an airport. You arrive hours in advance of your flight and then face seemingly never ending queues for check-in, passport control and security. It is incredibly frustrating, and for the security part of the journey, raises the question, can passenger screening ever be passenger friendly? Much has been made about the ‘Checkpoint of the Future’, a futuristic people and baggage screening lane that would end the long security lines and frustration. Typically, this scenario involves some borderline-science fiction-esque technology. But is that still the case? Can existing technology be used to achieve significant improvements in passenger experience? And, what else can be done to ensure the passenger experience is more streamlined?
Keeping ahead of technological advancements The key challenge for security screening equipment manufacturers is to design solutions that are both flexible and able to adapt to new threats and provide passengers with a stress-free experience. Much of the current development effort is focused on technologies that remove the need for divestment, whether that is the removal of laptops, liquids from bags or the removal of passenger’s shoes. We will therefore be seeing a more intuitive checkpoint that is able to take on roles once taken on by airport staff and allow passengers to pass through quicker and easier. As a result, checkpoints will see enhanced operational efficiency, whilst ensuring that passengers feel secure and calm. Travelling can create a lot of stress so designs must be able to efficiently guide people through advanced gating and signage systems; this in turn will dramatically speed up passenger throughput, meaning a more positive experience for passengers.
What can passengers carry-on? The rules and regulations about what is and is not allowed on a flight can be a cause for great frustration. How many times have you had to decant shampoo into small clear bottle yet forgot about the bottle of water you bought earlier meaning your bag has to be searched? Some relief is now available as the process for easing the restrictions of Liquids, Aerosols and Gels (LAGs) is underway. This phased approached, which began on January 1, 2014, means that soon, passengers will have the freedom to travel with liquids and gels.
The main question for the industry is: will the airports be ready? The LAGs restriction is a phased approach, and with a final deadline of 2016, it would be fair to assume that airports will make a smooth transition to comply within this timeframe. This means that it will not significantly impact on the passenger experience and instead, with the technology available to meet the requirements, only enhance and speed up the process for passengers.
Could pre-check be the answer? Taking the need to find a solution for customer satisfaction and security a step further is the TSA’s Pre-Check programme. Pre-Check is a pre-screening programme in the US where passengers agree to background checks prior to arriving at the airport. Assuming these checks do not reveal anything potentially dangerous, these passengers are flagged as safe and go through an expedited inspection at the airport, cutting the frustration and time associated with security lines. It is possible that in five years 90% plus of frequent travellers in the US will have enrolled in the Pre-Check programme. If countries such as the UK and Canada also implemented comparable programmes, the majority of flight routes will be covered, dramatically changing airport security as we know it and making it much more passenger friendly. The objective of the checkpoint is to enhance safety without inconveniencing passengers, which most industry watchers assumed would mean innovative screening technology. By opting into Pre-Check or a similar programme, the type of technologies required could change dramatically. Yes, we will still need excellent detection capabilities, but we will also need technology that is operationally efficient, can be operated remotely or integrated easily with other security systems. Perhaps in five years time passengers may look back at the old days of long security lines, disrobing and bags being dumped onto stainless steel tables and wonder why pre-screening wasn’t done earlier.
Do we need a checkpoint in the future? The checkpoint is here to stay, but perhaps the checkpoint of the future will be enabled by information in conjunction with technology. Information is key to security in the cargo world, so why not apply this to travellers and achieve the Checkpoint of the Future earlier with a reduced cost AW and greater passenger throughput and satisfaction?
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SECURITY: PASSENGER SCREENING
Smart security Airports looking for ‘smarter’ solutions for the security checkpoint will use connecting data as a key enabler, writes Nick Whitehead.
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echnology has underpinned many of the advances in the aviation industry over the past 100 years. It has enabled improvements to the comfort and safety of aircraft, helped airport operators cope with the increase in air traffic and allowed airlines to process passenger information more quickly and effectively. The rapid and widespread adoption of online check-in, which now includes the ability to print boarding passes at home, demonstrates the appetite of the travelling public to be more in control of the process. In 2014, more changes that will come into effect have the potential to improve all aspects of a person’s journey. Late last year, IATA and ACI announced plans to jointly tackle one of the main stumbling blocks to a positive passenger experience – security screening at the airport. While people expect a high level of safety during their travels, their tolerance for the inconvenience this can cause is not always high. Long queues at checkpoints will quickly overshadow any assessments that may have been made about the processes ability to keep them from harm. Smart Security, also known as the SmartS programme, will trial new technology with the stated aim of making security screening more sustainable (given the predicted rise in passenger numbers) and less disruptive to people’s journey. Individual components of the system have already been tested in airports, including at London’s Heathrow and Geneva, and the next step is determining how they work together. As Angela Gittens, director general, ACI World, explained at the time the programme was announced: “A touchpoint in the passenger journey
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that triggers a sense of dread is the security check. Through Smart Security, ACI and IATA will drive the needed change. “Airports, airlines, control authorities and system suppliers all have a role to play in making the process more effective, efficient and pleasant for the passenger. Smart Security brings these stakeholders together with the shared goal of transforming the security checkpoint for the benefit of all the travelling public.” But there are wider ambitions as well. Technology is already changing passengers’ experience at the airport from the time they check-in through to the time they board an aircraft. And, capturing and connecting the information gathered at each stage of their journey is one of the biggest challenges we face as we plan for more streamlined services.
Building blocks One of the initial requirements at an airport or in any environment that requires controlled entry and exit, is confirming the identity of the passenger. Atkins’ Passenger Authentication Scanning System (PASS), which has been implemented at Heathrow, uses advanced facial biometric technology to link passengers to their travel documents as they pass through security checks. The infrared facial recognition system, developed by Aurora, was accepted because it gives reliable results even in variable light conditions. During trials, airport operators and providers explored the ways in which passengers interacted with the technology and determined how the experience at checkpoints could be enhanced.
Images courtesy of Atkins Limited.
The system that has now been implemented balances a number of factors. They include: • Speed: The image capture and verification of identity can’t create delays. The system must be easy to use, keeping in mind most people will be infrequent passengers and self-service options are needed • Security: The system must meet the stringent standards of the relevant authorities, in this case the UK’s Border Force • Cost: The security solution must operate on the airport’s standard client and server machines It has already been applied in a self-service environment. Passengers’ biometric information is captured at e-gates prior to entry to security, so they can be checked later in the process as they seek to leave the departure lounge. The early indications are that the benefits of the technology extend beyond security as well. Travellers, for example, welcome self-service options, particularly if they smooth their journey. It also enables other airport services to become automated, which is good for airlines and operators. Last year, passengers at Heathrow’s Terminal 1 trialled a self-boarding scheme through an e-gate controlled by PASS. The trial was conducted in partnership with South African Airways. Speaking recently about the trial, Heathrow’s Terminal 1 director, Ian Hanson, said: “We are working in partnership with our airlines to trial this technology which should help make our passengers’ journeys smoother and simpler. Since its introduction we have had positive feedback from both airlines and passengers.” Technology that allows authorities to link an image of a person’s face to a travel document is one of the building blocks of the SmartS programme. Trials have shown that biometric facial recognition can be used to accurately check identity. IATA, working with Heathrow and Atkins, demonstrated the capability to check that the person presenting an e-passport was its owner. This opens up the possibility of a full self-service channel through the departure process, and acts as a key trigger in the SmartS vision.
A positive experience The supporters of SmartS speak about the possibility of having “an uninterrupted journey from kerb to aircraft door”. While it’s acknowledged that this will take time and there are numerous hurdles
SECURITY: PASSENGER SCREENING
to overcome before the vision becomes a reality, the technology to transform the passenger experience already exists. But a final solution will need to amalgamate online check-in, airline data, biometric technology and departure lounge systems into one seamless end-to-end solution. People already check-in online, drop their bags at self-service bag drops and use electronic boarding passes, so what’s next? The award winning Positive Boarding solution, developed by Heathrow with Atkins, hints at what can be achieved through the integration of existing data. The system links the passenger, via their boarding card, to live flight information and provides appropriate feedback and updates. For example, for passengers, it might be a friendly hurry-up message that includes which gate to go to, or a warning that the passenger doesn’t have enough time to get to the gate and will therefore need to reschedule their flight. Airlines, on the other hand, can make informed decisions about the likelihood of passengers arriving at the gate in time, allowing them to offload bags if necessary to avoid lengthy delays for the majority of people. According to Heathrow Airport’s passenger process programme leader, Mark Walker, PASS technology underpins Positive Boarding. He said: “We’ve gradually developed that product into something that allows us to control access to our airside environment at Heathrow, and will, in the future, drive how we actually operate things like our self-service boarding gates. “It will also interface with self-service check-in kiosks and bag drops as well. So, it will effectively tie all that information together and provide a wealth of joined-up data for us around how passengers are using our airport.”
Staying connected The complexity of the airport environment and the context in which it operates means very Iittle can be achieved by working in isolation. IATA’s and ACI’s joint backing for SmartS is an indication of the integrated approach that’s needed to improve the passenger experience. Technology will assist in this endeavour, but there are a series of non-technical hurdles on the way to achieving a streamlined service that require all participating groups to work together so all may benefit.
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WBP NEWS
The latest news from ACI’s World Business Partners Driving change
Chauntry has added Montréal-Trudeau International Airport to its growing list of clients in North America courtesy of its Software as a Service (SaaS) solution Parkspace accessed via the www.admtl.ca website. The solution has provided the airport with the ability to sell a range of parking products with discounted price points for Canadian Automobile Association (CAA) members and, according to Chauntry, has had a positive impact on Trudeau’s parking revenues. It notes that customer satisfaction levels have also risen since its adoption as motorists are now able to guarantee a reserved slot and earn Aeroplan miles with Air Canada for stays in Trudeau’s Econoparc and Valetparc car parks. Luc Charbonneau, director, parking and ground transportation at Aéroports de Montréal, (ADM), says. “Since the introduction of the Chauntry reservation system followed by an advertising campaign in December 2013, we are improving our customer service and achieving our parking revenue budget. “This has been a challenge for us in recent years and now offering car parking reservations with discounts and loyalty bonus is a great achievement at Aéroports de Montréal.”
Blown away in Kansas
Oshkosh Airport Products Group has refurbished and upgraded 10 of its H-Series snow removal vehicles for Kansas City International Airport in Kansas City, Missouri. The refurbished fleet (manufactured in 2006 and 2007) now features new Oshkosh XF 20ft high-performance front-mounted brooms, as well as new power units, forced air blower systems, and LCD controls. The refurbished vehicles are a critical element of the airport’s snow removal fleet, and maintain the airfield during large and small snow events as well as routine debris-clearing operations. Depending on conditions, the brooms can remove snow, ice, slush, sand and other debris at speeds of up to 40mph. “With the XF high-speed broom refurbishment programme, we have engineered a comprehensive kit approach for airports around the globe to transform inefficient front mounted brooms into the new performance benchmark,” comments Oshkosh Airport Products Group’s vice president and general manager, Jeff Resch. “That’s a win-win for snow removal teams and airport management.”
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Image courtesy of ICRAVE.
Concessions revamp at Washington National Sweeping retail and F&B changes are coming to Terminal A at Ronald Reagan Washington National Airport by the spring of 2015, according to the airport operator. The changes will be the culmination of a comprehensive upgrade to the gateway, according to the Metropolitan Washington Airports Authority (MWAA). It promises that full-service dining, publicly accessible iPads and charging stations and an expanded line-up of F&B and retail options will be part of the upgrade at the nine-gate terminal. The redesigned Terminal A, which originally opened more than 40 years ago, will also boast the airport’s first full-service spa. OTG and BMG have been selected to manage the Terminal A concessions development, working with MarketPlace Development, MWAA’s main contractor for concessions management. Manhatten based ICRAVE is behind the design concepts for the new look concessions area. MWAA’s CEO, Jack Potter, says: “We plan to create a food and retail experience in Terminal A featuring restaurants affiliated with well-known chefs, and we plan to engage with local community partnerships to provide experience for under-served young adults who aspire to pursue careers in culinary services.” The new array of shops and restaurants will be a highly visible component of MWAA’s ongoing programme to convert or reconstruct 95% of all Reagan National and Washington Dulles’s concessions through 2015. The first phase of new shop and restaurant openings is expected this spring.
New man in the hot seat
Roddy Boggus, senior vice president at global infrastructure firm Parsons Brinckerhoff, is the new chair of ACI’s World Business Partners Advisory Board. As such he will serve as the WBP observer on the ACI World Governing Board, replacing Randy Pope of Burns & McDonnell, who has served his term. An architect with 20 years of experience, Boggus has been involved with airport planning, design, and construction projects on behalf of both the airline industry and airport operators throughout the US, Europe, Latin and South America, as well as the Middle East and Africa.
WBP NEWS
Sporting life for Zoeftig Global public seating specialist, Zoeftig, has taken its first steps into the rapidly emerging South American market with the signing of a $2.3 million contract to supply Brazil’s key airport terminals. Zoeftig has penned a deal with Infra-America to supply 8,000 of its Zenky seats for Brasília– Presidente Juscelino Kubitschek and São Gonçalo do Amarante–Natal international airports, as the country readies itself for the world’s second largest sporting showcase this summer. Brazil is investing $17bn into its mass transit networks in preparation for the expected boom in tourism with its hosting of the FIFA World Cup later this year and the Olympic Games in 2016. “It’s a coup for any business to be involved in a prestigious global event, but to play a key role in two is very exciting,” explains Paul Williams, Zoeftig CEO.
Latin alliance for Shireburn Software Software developer Shireburn Software and IKUSI have announced a regional distribution partnership for the Latin American airport market. Shireburn – developers of Concessionaire Analyzer+ (CA+) that allows airport revenue management and terminal operators to collect and analyse the retail activities of concessionaires – believes that the collaboration will bring added value to its customers across the region. CA+ CEO, John de Giorgio, said: “Our strategic partnership with IKUSI is a major milestone in the
Boingo’s Dubai double Dubai Airports has selected Boingo Wireless as exclusive Wi-Fi provider for Dubai International (DXB) and Dubai World Central–Al Maktoum International Airport (DWC). Boingo will manage and operate ad-supported free Wi-Fi services throughout both airports, which serve a collective total of more than 66 million leisure and business travellers annually.
development of our solution and will have a profound impact on our ability to reach the growing Latin American airport market in which IKUSI has a strong presence and focus.” IKUSI airports director, Albert Algans said: “This is a significant opportunity for IKUSI. As a leading airport IT specialist, this partnership with CA+ strengthens our strategy to reinforce value added to our customers through business intelligence tools expanding into revenue management and strategic planning of the airport non-aviation business.”
Boingo will also offer premium Wi-Fi service options for travellers engaging in data intensive activities such as streaming video or uploading large files. “Dubai Airports recognises the importance of providing secure and speedy Wi-Fi services across the airport,” says Eugene Barry, senior vice president, commercial at Dubai Airports.
Common touch at San Diego ServiceTec International, Inc (ServiceTec) has been selected by San Diego County Regional Airport Authority to provide Common Use Operations Support Technicians at San Diego International Airport. As part of a new multi-year agreement, ServiceTec will provide professional technical support services for a wide range of airport IT systems and equipment. This includes maintaining the airport authority’s common use environment which consists of computer/enterprise servers, self-service kiosks,
audio paging, VoIP and links to airline data feeds. It will also support current and future IT projects that the airport is deploying to meet their evolving business and technical needs. “We are very pleased to have ServiceTec supporting our terminal operations IT systems and look forward to a valuable relationship,” says Rick Bellotti, senior manager of information technology at San Diego County Regional Airport Authority. “ServiceTec brings the right mix of experience and customer service that our customers expect.”
LG Electronics Europe Contact: Shawn Kim, head of HE B2B Europe Address: Krijgsman 1, 1186 DM Amstelveen, Netherlands Tel: +31 (0)20 456 3261 Email: shawnut.kim@lge.com Website: www.lgecommercial.com LG Electronics is a global leader and technology innovator in business solutions, mobile communications, consumer electronics and home appliances, employing 87,000 people working in over 110 locations around the world. LG Electronics’ IT division provides a wide range of digital signage solutions. LG Digital Signage is committed to offering comprehensive and indispensable technology solutions with the latest digital products and features tailored to the particular requirements of commercial environments. LG Electronics is a 2012 and 2013 ENERGY STAR Partner of the Year. record-usa Contact: William J Seibert, sales manager airports Address: 4324 Phil Hargett Court, Monroe, NC 28110, USA Tel: +1 704 635-5398 Email: bill.seibert@record-usa.com Website: www.record-usa.com US based record-usa, a member of the agta-record group, has been a proven leader of automated entrances for over sixty years. We are the world’s largest manufacturer of automated sliding door systems and have been providing the FLIP FLOW exit lane security solutions for the past ten years, with over 1,100 successful and proven installations globally. Commercial & Business Aviation Services (CBAS) Contact: AM Ganapathy Address: #4, 4th ‘A’ Cross, 2nd Block, Kalyan Nagar, Bangalore – 560 043, India Tel: +91 80 254 26821 Email: gana@cbasindia.com Website: www.cbasindia.com Commercial & Business Aviation Services CBAS delivers safety solutions to clients in all aspects of aircraft operations. For airport & aircraft operators our operational support services include consultancy in SMS (Safety management Systems) implementation, third party assurance audits and back-office support through web based SaaS (software as a solution) model that includes electronic solutions to safety record keeping including HTRM (Hazard Tracking & Risk Mitigation), FDTL (Flight Duty Time Limit), SMS manuals, ERP etc. For insurance companies, we offer guidance in helping their aviation customers operate with greater safety and security thus directly improving their return on investment.
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PROJECT WATCH
Helsinki Airport Major revamp planned for Finalnd’s gateway to the world.
project details Location: Helsinki Airport, Finland
Important developments:
H
elsinki Airport is to undergo a €900 million expansion project that is designed to strengthen its position as a hub between Europe and Asia and help it meet rising future demand. With traffic expected to soar from the current 15mppa to 20mppa by the early 2020s, Finnish airport operator, Finavia, claims that the phased expansion programme is vital to the gateway’s future. Improvements will focus on increasing check-in, transit travel capacity and passenger traffic arrangements. The first stage will be completed in the summer, when a new security checkpoint will be introduced in Terminal 2, while new departure processes are scheduled to be built around May or June this year. Additional security check capacity, a new congress area, an automated check-in and baggage drop are also expected to be constructed this year. Airport director, Ville Haapasaari, told Airport World: “There are certain steps we will take in the beginning and the first is to improve security at departure halls. “We have two big issues – one is the departure hall, which is too congested and the second is that we are getting more transfer traffic and widebody aircraft and need more space for them.” As part of the revamp, check-in will be modernised and Terminal 2 will get 12 new check-in kiosks along with 10 new bag drop machines. Haapasaari explains: “The increase in passenger volume particularly shows in the departure lobby of Terminal 2. “We want to increase the flow and the pass-through capacity to a great extent. Our goal is that all passengers can pass through the security check in less than 15 minutes.” Five new security lines will open to bring the number in Terminal 2 to 18 lines and the intention is to eventually increase this capacity by opening two additional lines.
Haapasaari says that during peak hours, Helsinki will be able to serve more than 3,200 passengers per hour. The third floor departure lobby will also be extended while an additional security checkpoint will be built upstairs from the check-in area. Conference and meeting facilities and the VIP President Terminal will also be renovated and reopened in the summer. The airport’s entire long-haul flight area will then be renewed in winter 2014/15. Ageing retail facilities have been torn down in preparation and a premium shop area will be introduced in April, while duty free stores and restaurants are also undergoing a transformation as part of a €30 million investment. World Duty Free Group will start operations in March, while an agreement has been signed with airport restaurant operator HMSHost to overhaul food outlets, which will open sometime from 2014-2016. Plans are to also build a new satellite building sometime from 2017-2019, which is scheduled to be constructed in front of the main terminal. Haapasaari says Helsinki must expand to keep up with development of airports in the Nordic region like Oslo and Copenhagen. “We need to keep pace and want to maintain our position as the leading transfer airport in the Nordic area,” he enthuses. And, as airport innovations move so fast, plans will be flexible to incorporate any new digital technology, while mobile phone applications and service kiosks will be introduced. Haapasaari adds: “The world is changing and we have to be agile, so will not have a fixed plan and must always maintain our flexibility. “The development will be step-by-step up to 2020 as the market can change in a short time.” The airport will benefit from a €200 million cash injection from the Finnish government, which recognises the importance of the upgrade. AW
Terminal 2 upgrade and new satellite building
Scheduled completion date: 2020
Principal companies involved: Finavia, TBA.
Total investment: €900 million
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ENVIRONMENT NEWS
Global round-up Airport World reports on the latest global environmental initiatives.
Being a good neighbour
London Gatwick has announced that it is significantly expanding its noise insulation scheme, which it says will make it the “most innovative airport in Europe”. The new scheme will cover over 1,000 more homes across Surrey, Sussex and Kent, meaning more than 40% more homes will be protected from noise than are covered with the old scheme. And, householders will be able to apply for up to €3,600 towards doubleglazing for their windows, and doors as well as loft insulation. As part of the new scheme, the noise boundary has been increased by using a lower level of noise from 66 Leq to 60 Leq as a baseline, with the boundary line drawn flexibly to ensure entire roads and communities are included. Secondly, the noise contour boundary has been drawn along the flight paths, by 15km to both the east and west of the airport, and, Gatwick says, it is not aware of any other airport in the world “offering a scheme of this magnitude”. The scheme is also said to take into account both the increased sensitivity people have towards noise levels, as well as the frequency of how many times they might be overflown. If the new scheme is taken up by all eligible households in the Gatwick area, it would cover around 2,000 homes. Gatwick says the impact of both the level and frequency of aircraft noise on local communities needs to be a critical issue for the Airports Commission, who will recommend next year, whether Heathrow or Gatwick should have an additional runway built. CEO, Stewart Wingate says: “The leadership position we have taken on aircraft noise shows the importance we attach to our local community as we continue to compete and grow from a single runway, but also as we plan to build a second. “We understand the public’s tolerance to noise is much lower than it was, which is why we are now extending our noise insulation scheme to cover the 30km flight path east and west of the airport. “As Heathrow starts to consult its local communities about a third runway they should break their silence about noise and think seriously about following our lead.”
International noise challenge
Swedavia has launched an international innovation challenge aimed at reducing ground noise in the residential area of Bromma Kyrka – close to StockholmBromma Airport. The Swedavia Airport Innovation Challenge 2014 is inviting people to develop feasible solutions and address the challenge holistically. The competition is open to all, with individuals and teams welcome to enter, and the winner will get 100,000 SEK (€11,200) and the opportunity to see the idea come to life at Bromma Stockholm Airport. Jenny Svärd, environmental and quality manager at Bromma Stockholm Airport, says: “We are arranging an innovation challenge that both can reduce ground noise and also can be a positive element in the area for our neighbours. “We hope to get many interesting and innovative solutions during this competition. “It is very important for us and our neighbours to find the best solution since it will make a difference with positive effects for the Bromma Kyrka area. For Swedavia, environmental and climate smart solutions are highly prioritized in every step in our development of the airport. Therefore, we expect high quality and a holistic perspective in the winning solution.” Swedavia is already one of the world’s greenest airport operators having been carbon neutral since 2006.
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The last word Porsche Cars North America’s Joseph Folz talks about brands, his favourite gateways and the company’s links with Hartsfield-Jackson Atlanta International Airport. How important is a good brand? Well, nothing is more important than great product, and Porsche builds some of the most remarkable cars in the history of the automobile. But there are many excellent cars – the promise of the brand makes the difference. Nobody needs a Porsche, but everybody wants a Porsche.
Is there any link between a good brand and customer loyalty? No question. A brand is almost something you wear, and your choice of a car is highly visible to all your friends, neighbours, and colleagues every day. People love driving their Porsche vehicles, but they also are proud to be associated with the Porsche brand. Our brand loyalty is extremely high, and protecting it is our top priority – if that ever changed, customers would have plenty of other choices.
What qualities does the Porsche brand stand for? Top quality; innovative engineering; a fabulous driving experience; and exceptional customer care. Porsche always has done things with finesse and creativity that some other companies have done with brute force – we call it “Porsche Intelligent Performance.” But we also are a brand with some inherent contradictions. Every Porsche is a serious performance car,
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but with everyday usability. Our brand offers high prestige, but also social responsibility. We stand for beautiful design, but also for function over form. Few, if any, other brands offer such a fascinating combination of attributes.
Can a brand today exist and flourish today without embracing social media and the new digital age? Some of us of a certain age shake our heads at social media, but a successful business has to listen to its customers all the time. This means going where they are and speaking with them at their convenience, not yours. And Porsche customers are early adopters who really understand and enjoy the latest technology. So the short answer to your question is ‘no’.
Do airports and/or airport operators need a brand? Yes, but I think in a different way. Buying a car, you might look at a Jaguar or an Audi along with a Porsche. But if I’m flying to Detroit, there’s no question what airport I’m using. Even if I’m flying to a multi-airport city like Los Angeles, I’m considering schedule or location but not much else. On the other hand, if I’m doing a site search for a new plant or office, I don’t just want a city
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with decent flights – I want a city with a really good airport. I want it to be easy to use, I want it to be cared for, I want it to make a good first impression. I want it to have a good reputation. I want to attract the best people and I want my customers and suppliers to want to come to me. A brand is a promise, a reputation – a top airport needs that.
Can you provide me with an example of what you consider to be a good ‘airport’ brand? I think that Amsterdam Schiphol has developed its brand very well. ‘Schiphol’ has become not just an airport name but the name of an entire planned development, and the brand name is reinforced by its neighbours and its airlines. Somehow they have even got all the KLM flight crews to refer to it frequently and consistently in many inflight announcements – count how many times you hear, ‘Schiphol, the airport of Amsterdam’. Additionally, it is a beautiful facility, with great amenities, easy to navigate, surrounded by a vibrant business community, close to a wonderful city, and it looks and operates all “of a piece” – very well thought out to make long journeys easier. And, it does little things well – like signage that looks like it was designed
by the same person at the same time. We actually have all those advantages and more here in Atlanta with HartsfieldJackson, and our new international terminal is just a masterpiece! Porsche is committed to joining the airport, local governments, and the business community in building a cohesive airport city around the busiest and best airport in the world.
Why have you located your North American HQ in Atlanta close to Hartsfield-Jackson International Airport? Our new headquarters will not only be home to most of the Porsche associates in North America, it also will incorporate one of only two Porsche Experience Centers in America, one of only five in the world. We want a home where everyone – our associates, our community, our owners, our dealers, and people who want to know more about Porsche – can live and breathe Porsche, and drive all our cars. In fact, part of our track will run through our building. An estimated 80% of the US population is within a two-hour flight – and you can get here non-stop from nearly 300 places. The Hartsfield-Jackson Atlanta International Airport literally brings the world to us, and from the terminals it will be just a brief shuttle ride to a waiting Porsche!
Factfile
THE LAST WORD
Name: Joseph Folz Age: 60 Job title: General counsel and secretary, Porsche Cars North America Nationality: American Time in aviation industry: Technically none, but 35 years in the automobile industry, and supervised a terrific corporate flight department for ten of those. Best known for: Being a business lawyer who tries to say ‘yes’. Little known fact: I’m distantly related on my mother’s side to Abraham Lincoln.
What has HartsfieldJackson got that other airports haven’t? It has non-stop flights practically every day to practically anywhere you would want to go on the planet. It also has great infrastructure and amenities; is close to the centre of an amazing, vibrant, friendly city and it is surrounded by land that is ripe for redevelopment. If that is not enough it is served principally by two ultra-competent carriers (Delta and Southwest); we have a climate that allows great year-round reliability; and the airport management team is highly professional and totally committed to client service. I can think of some otherwise nice airports where, when something breaks, they
tape up a hand-scrawled, misspelled ‘out-of order sign’. At Hartsfield-Jackson, they fix it. I can’t even go there without seeing some new improvement project. It really is one of the best.
What is your understanding of the airport city concept and do you believe in it? The ‘Aerotropolis’ concept is very well known and fully accepted by Porsche and our European colleagues see it every day at airports in Frankfurt, Amsterdam, Paris, and London. It is clear that all business is now global and that access to worldwide transportation is a defining competitive advantage. Further, cities that have leveraged their transportation assets have tremendous
advantages in economic development, and that is good for every business – indeed every citizen – in town. In many places in America, airports which were once far from population centres, like Washington Dulles and Dallas/Fort Worth, are now the anchors for thriving live-work-play communities. Working and living near major transportation assets will give us more time for things that really are important. I am honoured to serve as the initial chairman of the Atlanta Aerotropolis Alliance, a group of business, government, airport, and economic development leaders committed to building on our strengths, so we really do believe in it.
Are you a frequent flyer and do you have a favourite airport other than ATL? I’m a very loyal and satisfied Delta customer. My goal every year is to stay home and fall out of Diamond or Platinum status with them, but I never accomplish it. I love flying, and think it’s a miracle. We think the car business is complicated, but it’s nothing compared to an airline dealing every day with tens of thousands of customers and countless variables it can’t control, and it can never let anything go wrong. I love flying into and out of ATL, but I have a special fondness for Stuttgart-Echterdingen (STR) – it is tiny, efficient, and friendly, and a very comfortable train ride from Porsche’s global headquarters and my favourite little hotel. AW
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TRAFFIC DATA
ACI Traffic trends
ACI projects a 4.4% increase in global passenger traffic for the medium-term period covering 2014 to 2018. In tandem with slightly more sanguine views for global GDP growth in 2014, we project a commensurate uptick in worldwide passenger traffic growth. The European economy, which remains anemic, is expected to grow faster than previously anticipated; and the US economy, which is inching toward normality, is expected to follow suit.
Further, the Asia-Pacific economy is not expected to slow as much as previously projected. However, economic forecasts and, hence traffic projections, have been downgraded slightly for Latin America and Africa, due to lingering concerns over their political and socio-economic conditions.
Global passenger traffic to grow steadily over the next 5 years
Medium-term passenger forecast by region: 2014 – 2018 Estimates 2013 Africa 164.2 Asia-Pacific 1,830.3 Europe 1,652.2 Latin America & Caribbean 464.4 Middle East 278.9 North America 1,574.0 World 5,964.1
YOY 2013 2014 2015 0.5% 4.1% 5.2% 7.1% 7.1% 7.2% 2.3% 2.4% 2.9% 4.5% 5.5% 5.9% 9.9% 7.4% 7.2% 0.8% 2.1% 2.2% 3.7% 4.3% 4.6%
Forecasts 2016 2017 2018 2014-2018 5.9% 6.2% 6.0% 5.5% 6.9% 6.7% 6.5% 6.9% 3.0% 2.8% 2.7% 2.8% 5.9% 5.8% 5.6% 5.7% 6.5% 6.1% 5.9% 6.6% 2.1% 2.0% 1.9% 2.1% 4.5% 4.4% 4.3% 4.4%
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 Canadian airports, including Saint John, as well as Lima, Peru. For more information: Telephone: +41 22 354 07 54, Email: info@dkma.com, Website: www.dkma.com
For 2013, preliminary passenger figures are sourced from ACI and, for the remainder of the forecast period, we developed regressions based on the most recent forecasts of economic growth. If and when necessary, the team made adjustments to the regression-driven results.
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