Airport World, Issue 2, 2016

AIRPORT WORLD APRIL-MAY JUNE-JULY FEBRUARY-JANUARY 2015 2016 2011

In the spotight: Customer service Airport report: Pittsburgh Special report: Regional airports Plus: Retail, Remote ATC towers & baggage handling

THE MAGAZINE OF THE AIRPORTS COUNCIL INTERNATIONAL

Pushing the right buttons April-May 2016 Volume 21 Issue 2 www.aci.aero

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

Airport World Editor Joe Bates +44 (0)1276 476582 joe@airport-world.com Design, Layout & Production Mark Draper +44 (0)208 230 7867 mark@airport-world.com Sales Director Jonathan Lee +44 (0)208 707 2743 jonathan@airport-world.com Sales Manager Ellis Owen +44 (0)208 274 1540 ellis@airport-world.com Advertising Manager Andrew Hazell +44 (0)20 8384 0206 andrewh@airport-world.com Subscriptions Beth Owen +44 (0)208 707 2743 subscriptions@airport-world.com Managing Director Jonathan Lee +44 (0)208 707 2743 jonathan@aviationmedia.aero Published by Aviation Media Ltd PO BOX 448, Feltham, TW13 9EA, UK

Website www.airport-world.com

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

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

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

Unforgettable Airport World editor, Joe Bates, reflects on ACI’s Airport Service Quality (ASQ) awards and the continued efforts of gateways across the globe to raise the bar on customer service and create unique airport experiences.

B

ecause it was and still is one of my dad’s favourite songs and I probably heard it played a thousand times when I was a kid, I have always had a soft spot for ‘Unforgettable’, the song made famous years ago by the dulcet tones of Nat King Cole.

Unfortunately, back when I was a kid and arguably until the last 15 to 20 years, ‘unforgettable’ wasn’t a word you would commonly use in a good way to describe the world’s airports.

In those days the ‘passenger experience’ was far from the top priority and, let’s be honest, people were far more likely to put up with mediocrity ten, twenty, thirty or forty years ago than they are now.

Things are very different today, of course, and with many passengers having a greater choice of airports to fly out of than ever before and airlines now prepared to up sticks and move their entire operations to another gateway if they don’t get want they want, the pressure really is on airports to deliver something special.

Some, like perennial Airport Service Quality (ASQ) winners Incheon, Indianapolis, Seoul-Gimpo, Delhi–Indira Gandhi and Moscow Sheremetyevo clearly excel at this, as does Singapore Changi – which finished joint top with Incheon in the highly prized global category for airports handling Over 40mppa – and most of the other 2015 winners.

Indeed, they have been responsible for many of the most pioneering customer service initiatives ranging from the opening of cinemas, ice rinks, theatres and golf courses to the only airside transit hotel in the world with its own outdoor swimming pool.

We salute them all and, in this ‘customer service’ themed issue, you can read about some of their latest initiatives as well as a host of others by airports across the globe.

In addition to reviewing the ASQ results, which includes pictures from the awards ceremony at ACI Asia-Pacific’s Regional Conference and Exhibition in Australia, we also have customer service focused features on airport security; embracing the passenger experience; passenger innovation;

airport car parking; and health and wellbeing. The latter is particularly poignant for me as about ten years ago I was journeying through an airport in Asia when on a travellator, in the middle of nowhere, an elderly man sadly collapsed and died of a suspected heart attack right in front of me.

It was, naturally, quite upsetting. The situation arguably made worse by the fact that ‘help’ didn’t arrive for about five minutes and when it did, those involved were powerless to do anything about it because they didn’t have the technology/ tools to try and save the man’s life.

Thankfully, things are much improved these days with airports better equipped than ever before to deal with medical emergencies. You will be able to read about Swedavia’s investment and deployment of potentially life saving defibrillators throughout Stockholm Arlanda and other more R&R based initiatives in our ‘health and wellbeing’ focused customer service feature on page 31.

This issue also turns the spotlight on Vilnius Airport ahead of ACI Europe’s Regional Airports Conference & Exhibition in Vilnius, and takes a closer look at the relatively new phenomenon of remote ATC towers.

We also look back at the recent Airport Economics & Finance Conference and Exhibition in London where high finance, PPP deals, route development and economic regulation were just a few of the topics up for debate.

Elsewhere you can read about the retail revamp at Nice Côte d’Azur Airport; big baggage handling projects at Keflavík, Moscow Sheremetyevo and Bahrain; and the creation of a new Terminal 2 at Saõ Paulo–Guarulhos International Airport.

The airport in the spotlight is Pittsburgh and Allegheny County Airport Authority’s CEO, Christina Cassotis, tells us more about her ambitious route development plans and the way forward for PIT as a fast, efficient and customer friendly O&D gateway.

I hope you agree that it is another cracking issue that covers a wide variety of topics and airports from across the planet.

AW

AIRPORT WORLD/APRIL-MAY 2016

3

CONTENTS

In this issue Issue 2 Volume 21

3 Opinion Airport World editor, Joe Bates, reflects on ACI’s Airport Service Quality (ASQ) awards and the continued efforts of gateways across the globe to raise the bar on customer service and create unique airport experiences.

8

Money talk More than 250 delegates and 11 exhibitors from 50 countries ensured that the eighth Airport Economics & Finance Conference and Exhibition was a truly international affair, writes Joe Bates.

15 View from the top ACI World director general, Angela Gittens, reflects on the growth, development and enhancement of the Airport Service Quality (ASQ) customer satisfaction programme.

16 ACI news A new White Paper revealing that customer service is a key driver of non-aeronautical revenues and the unveiling of ACI’s first Accredited Training Institute are two highlights of the second quarter of 2016.

18

Pride and prejudice CEO, Christina Cassotis, talks to Joe Bates about the challenges and opportunities ahead as she bids to turnaround the fortunes of Pittsburgh International Airport.

24

Winners all!

Australia’s spectacular Gold Coast was the venue for this year’s Airport Service Quality (ASQ) awards ceremony for the world’s most customer friendly airports.

31

Who cares wins Joe Bates takes a quick look at some of the latest health and wellbeing initiatives taking place at airports across the globe.

32

Find space for parking!

Airports looking to boost customer satisfaction levels would do well to remember motorists and the importance of the car parking experience in passenger journeys, writes Chris Girling.

35

Out to impress From trendy new uniforms in Denver to Nao the robot at Tokyo Haneda, it has already been quite a year for customer service innovation at airports around the world, writes Joe Bates.

AIRPORT WORLD/APRIL-MAY 2016

5

CONTENTS

Director General Angela Gittens Chair Declan Collier (London, UK) Vice Chair Bongani Maseko (Johannesburg, South Africa) Immediate Past Chair Fredrick J Piccolo (Sarasota, USA) Treasurer Arnaud Feist (Brussels, Belgium)

39 Smiles better Security director, Johnnie Müller, discusses the launch of a new Smiley campaign to guide and monitor the movement of contractor/supplier vehicles at Copenhagen Airport.

41 Let us entertain you!

Airports embracing the ‘experience economy’ will be one step ahead of their rivals when it comes to popularity and revenue generation, writes James Samperi.

44 Big year for Vilnius Vilnius Airport director, Artūras Stankevičius, discusses record-breaking traffic figures, privatisation and some of the challenges faced by Europe’s smaller regional gateways.

47 Remote control Remote towers will allow for safe and efficient air traffic services, potentially reducing the costs for air traffic services at airports by 30% to 40%, writes Avinor’s Jan Østby.

48 Exciting times The award of the duty free concession for the new Istanbul Airport and investment and expansion elsewhere made 2015 memorable for duty free operator, Gebr Heinemann, but it wasn’t all plane sailing, reports Joe Bates.

50 That Riviera touch Portland Design’s director of environments, Lewis Allen, discusses the concepts behind the creation of the new ‘spirit of place’ inspired duty free offering at Nice Côte d’Azur Airport.

53 Treble top Airport World turns the spotlight on baggage handling projects at Keflavík, Moscow Sheremetyevo and Bahrain airports.

55 Project watch: Saõ Paulo–Guarulhos International Airport Saõ Paulo gateway’s new Terminal 2 on schedule to open as planned at the end of 2016.

57 ACI’s World Business Partners The latest news from ACI’s World Business Partners.

58 People matters Dr Richard Plenty and Terri Morrissey provide their thoughts on: The dark side of performance management on wellbeing at work.

ACI WORLD GOVERNING BOARD DIRECTORS Africa (2) Pascal Komla (Lomé, Togo) Bongani Maseko (Johannesburg, South Africa) Asia-Pacific (8) Kjeld Binger (Amman, Jordan) Dennis Chant (Gold Coast, Australia) Kenichi Fukaya (Tokyo, Japan) Seow Hiang Lee (Singapore) Xue Song Liu, (Beijing, China) Kerrie Mather (Sydney, Australia) Emmanuel Menanteau (Phnom Penh, Cambodia) PS Nair (Delhi, India) Europe (6) Daniel Burkard (Moscow, Russia) Declan Collier (London, UK) Robert Deillon (Geneva, Switzerland) Arnaud Feist (Brussels, Belgium) Augustin de Romanet (Paris, France) Sani Şener (Istanbul, Turkey) Latin America & Caribbean (3) Fernando Bosque (Guadalajara, México) Martin Eurnekian (Buenos Aires, Argentina) Héctor Navarrete Muñoz (Merida, Mexico) North America (7) Thella Bowens (San Diego, USA) Howard Eng (Toronto, Canada) Deborah Flint (Los Angeles, USA) Maureen Riley (Salt Lake City, USA) Tom Ruth (Edmonton, Canada) Miguel Southwell (Atlanta, USA) William Vanecek (Buffalo, USA) Regional Advisers to the World Governing Board (8) Aaron Adderley (Hamilton, Bermuda) Lew Bleiweis (Ashville, NC, USA) Joyce Carter (Halifax, Canada) Zouhair Mohamed El Aoufir (Rabat, Morocco) Michael Kerkloh (Munich, Germany) Tan Sri Bashir Ahmad Abdul Majid (Kuala Lumpur, Malaysia) Robinson Misitala (Livingstone, Zambia) Andrew O’Brian (Quito, Ecuador) Stefan Schulte (Frankfurt, Germany) Observer World Business Partner Observer Greg Fordham (Airbiz) Correct as of April 29, 2016

6

AIRPORT WORLD/APRIL-MAY 2016

EVENTS: AIRPORT ECONOMICS & FINANCE CONFERENCE

Money talk More than 250 delegates and 11 exhibitors from 50 countries ensured that the eighth Airport Economics & Finance Conference and Exhibition was a truly international affair, writes Joe Bates.

M

en in white coats, James Bond films, regulatory restraints, the importance of non-aeronautical revenues, route development and the continued struggle for profitability faced by 70% of the world’s gateways were all on the agenda at this year’s Airport Economics & Finance Conference and Exhibition in London.

In her opening address, ACI World’s director general, Angela Gittens, announced: “The traffic headline is that in 2015 passenger growth was strong across all regions except for Africa, while air freight growth was weak across all regions except for the Middle East.

“The economics headline is that overall the airport industry in 2014 was healthy, with mature markets bouncing back and emerging markets remaining resilient in the face of weaknesses in their countries’ economies.”

Passenger numbers at the world’s airports grew by 6.1% in 2015, revealed Gittens, noting that it was the best global performance since a 6.6% rise in 2010.

Reflecting on the emerging markets, Gittens stated that there was much more to come in terms of growth, especially in countries with large landmasses or multiple islands with big populations like Indonesia, which have “a growing middle class with a propensity to travel”.

“As these markets deliver airport investment, air traffic control modernisation and liberalisation of air markets, that propensity gets realised and traffic soars,” she stated.

“Right now, the US has 25 more airline trips per capita than India.

It wouldn’t take much of a change in that ratio to produce millions more trips in India. That country needs more airport investment and ATC modernisation. China and many African countries have relatively closed air service markets. Removing the constraints will have a big impact.”

Industry income as a whole in 2014 grew by 8.2% over the previous year to $142 billion, Gittens told delegates.

Worldwide, retail concessions remain the leading source of non-aeronautical revenue for airports. Car parking revenue and property revenue/rent follow retail concessions as the second and third-largest sources of income globally.

On a regional basis, Europe (36%) held the largest share of global airport revenues, followed by Asia-Pacific (29%) and North America (19%). Latin America-Caribbean, Africa and Middle East experienced the highest revenue growth, she said.

8

AIRPORT WORLD/APRIL-MAY 2016

EVENTS: AIRPORT ECONOMICS & FINANCE CONFERENCE

She also had a few words to say about government regulation and creating the right operating environment to encourage aviation growth.

“As we discussed at our December Economic Regulation conference in India, airports continue to have every incentive to increase passenger throughput, providing regulators with the opportunity to shift to light-handed and facilitated regulation. Introducing these efficiencies will provide more capital and enable growth,” she stated.

“And finally, let’s look at airport bottom lines. Given that airports are asset-intensive businesses, they require large minimum investments to accommodate a single landing. Thus, there is a critical mass that must be achieved before an airport can start recovering its large operating costs and infrastructure investments.

“Their capital-intensive nature is the main reason that the majority of smaller airports are loss-making – they don’t generate enough revenue to cover their capital and operating costs.

“Size is a major contributing factor to whether an airport is profitable or not. The sweet spot for return on invested capital is for airports that serve between five and 15 million passengers per year. Airports that serve fewer than one million passengers per year have a negative return on invested capital – in other words, this represents an actual economic loss.”

Reflecting on the 5.2% upturn in traffic across Europe in 2015, ACI Europe’s regional director, Olivier Jankovec, highlighted that for the first time since the global financial crisis of 2008, growth at EU airports led the way, rising by 5.6% compared to 3.9% at non-EU gateways.

He also revealed that the two extremes of the market, large hubs and small regional airports, “tended to underperform the European average”, attributing this mainly down to capacity issues at the bigger gateways and the connectivity challenges faced by the smaller ones.

“What we saw in 2015 was new market fundamentals taking shape,” said Jankovec. “Traffic has historically grown at twice the rate of GDP growth, but the phenomenal rise in passenger numbers since 2008 has changed things, particularly in the Eurozone, where traffic has increased by 13 times GDP growth, which is quite amazing.”

He noted that record traffic numbers at Istanbul Atatürk in 2015 meant that it was now Europe’s third busiest airport and he expected it to become number one in two or three years time if its current growth rates continue.

Thirteen EU airports accounted for the top 20 busiest passenger airports in Europe compared to 16 in 2008, he told delegates, the biggest climbers over this period being Istanbul Sabiha Gökçen (14 up from 81); Antalya (12 up from 22); and Moscow Sheremetyevo (11 up from 27).

AIRPORT WORLD/APRIL-MAY 2016

9

EVENTS: AIRPORT ECONOMICS & FINANCE CONFERENCE

Jankovec said 2016 was looking positive because the European economy was growing again and decreasing oil prices had proven “a bonanza for consumers”.

However, he warned that external risks such as the situation in Russia, economic slowdown in Brazil and China, the migration crisis, Britain’s potential exit from the EU and the threat of terrorist attacks meant that the industry could never rest on its laurels.

He believed that constant efforts to reduce costs and become slimmer and more efficient was key to the improving financials of Europe’s airports, citing cutting staff costs by 17.6% since 2008 as one example of the improvements made.

“Containing investments has also played a part, which is good in the short term and helps improve financial positions but worries me a little about the long-term ability to accommodate future growth,” admitted Jankovec.

On the plus side, he revealed that private investment in Europe’s airports was growing, with 205 gateways or 41% of Europe’s airports now boasting private shareholders, up from 22% in 2010.

Jankovec enthused: “In just six years, private investors have gotten involved in an additional circa 100 airports in Europe.

“This means that the number of European airports with private shareholders has more than doubled – and that three in four passengers are now travelling through an airport with private shareholders.

“Meanwhile, almost all fully publicly-owned airports are now corporatised and managed on a purely commercial basis.

“These are not anecdotal changes to our industry – they are truly transformative changes. They underline the fact that airports are now run as businesses focused on air connectivity development, operational efficiency, service quality, revenue diversification and sustainable investments.”

10

AIRPORT WORLD/APRIL-MAY 2016

Nevertheless, 51% of Europe’s airports are loss making, he confirmed, and although this figure is down from 60% in 2013, their debt is still a sizeable €72 million.

ACI Asia-Pacific’s regional director, Patti Chau, took the opportunity to share some of the challenges facing Asia-Pacific’s airports, which continue to grow at a rapid pace with passenger numbers up by 8% and 11.3% in Asia-Pacific and the Middle East respectively in 2015.

The challenges, she said, included a slowdown in the growth rate of the region’s low-cost carriers and the need to invest in new capacity enhancing airport infrastructure to ensure that cities, regions and countries are equipped to meet future demand.

She was, however, quick to point out that the seat capacity of the LCCs has more than trebled in South East Asia in last 12 years and that the low-cost phenomenon is still relatively new in China, where it now has the support of the Civil Aviation Administration of China (CAAC).

The race to keep pace with demand explained why the Asia-Pacific region continues to lead the world in both airport investment projects and the number of greenfield airports being constructed, noted Chau, who made special mention of Dubai Airport’s plan to invest $32 billion on upgrading its infrastructure.

Huge greenfield projects in the pipeline include Beijing’s new international airport set to open in 2019 and new gateways in Mumbai, Manila, Ho Chi Minh City and Sydney, while the Chinese government has announced plans for 66 new airports in the next five years, she told delegates.

Chau hoped that the creation of the multi-lateral Asian Infrastructure Investment Bank (AIIB) would help finance some of the much needed new airport facilities.

Talking about 2016, she said: “I believe the year ahead is set to be one of volatility and challenges. Low oil prices, for instance, coupled with China’s economic slowdown and the Chinese government’s

EVENTS: AIRPORT ECONOMICS & FINANCE RUNNING CONFERENCE HEAD

All images courtesy of Tadej Bernik/Airport World.

decision to devalue the RMB will stir up uncertainty while fluctuating exchange rates will affect consumer behaviour.”

Next up was an interactive polling session about the health of the aviation industry with the World Bank’s air transport lead, Dr Charles Schlumberger. Never one to miss an opportunity to entertain, he decided to wear a white coat and stethoscope and seek assistance from aviation specialist colleague, and ‘nurse’ for the day, Aldo Giovannitti.

If that seemed a little surreal, the next session on airport competition and connectivity was even stranger when moderator, David Feldman, asked the panelists to try and liken developments to James Bond film titles or Bond villains!

Doing their best, Brussels Airport CEO, Arnaud Feist, insisted that “The World is Not Enough” when it comes to seizing opportunities; Global Infrastructure Partners (GIP) partner, Michael McGhee, joked that when talking to the buyers of London City Airport it was with “A View to a Kill(ing)”; while former Shannon Airport CEO, Neil Pakey, remarked that in an increasingly tough world for small airports where some had already closed, it was very much a case of “Live and Let Die”.

McGhee added that he considered the villain in the room to be the bowler hat wearing Bond baddie ‘Oddjob’, who he said represented all the bureaucrats that over regulated the industry and failed to fully support and encourage aviation growth.

Day one ended with sessions on ‘airport economic regulation’ and ‘airport infrastructure, capital expenditure and finance’ before a highly enjoyable Gala Dinner at the Bluebird restaurant in London’s King’s Road.

Route development dominated most of day two with anna.aero’s chief analyst, Ralf Anker, giving a keynote address about the latest trends before airport bosses Christina Cassotis (Pittsburgh) and Rafael Echevarne (Montego Bay) provided an update of the opportunities and challenges at their gateways and John Strickland (JLS Consulting), George Karamanos (KPI Aviation Marketing Solutions) and Dr Chris Smith (Seabury) discussed issues such as the importance of marketing and promoting the uniqueness of different destinations.

Anker noted that a changing dynamic appeared to be behind Ryanair’s decision to actively compete against other LCCs and legacy carriers on 40% of its new routes.

His data also revealed that only around 50% of the 3,000 new services launched by the world’s airlines each year were genuinely new airport pairings.

A one-on-one interview with Aena’s president and CEO, Jose Manuel Vargas Gomez, followed before the conference concluded with a lively debate about ‘the digital passenger’.

AW

AIRPORT WORLD/APRIL-MAY 2016

13

ACI VIEWPOINT

View from the top ACI World director general, Angela Gittens, reflects on the growth, development and enhancement of the Airport Service Quality (ASQ) customer satisfaction programme.

T

his edition of Airport World is organised around the theme of customer service, and it couldn’t come at a better time given the latest developments with ACI’s Airport Service Quality (ASQ) programme.

In April, the world’s top-performing airports in customer service as judged by over 550,000 travellers last year, met in Gold Coast, Australia, for the 2015 ASQ Awards Ceremony, which took place during the ACI Asia-Pacific Regional Assembly, Conference and Exhibition.

ASQ has undergone a number of enhancements in the last year, including the 2015 return of ASQ Forums (the first 2016 forum was held in Brisbane in April), expanded awards categories and new analytic tools for airports to better understand their results and those of other airports.

In this highly dynamic industry of ours, ASQ allows participants to see what works for airports like themselves and helps them to develop a roadmap to better their customer service initiatives.

And as we know from our conversations, the forums and awards ceremonies give airports the opportunity to share best practices with one another.

We know that high quality customer service brings competitive advantages and community support, but we now can document that quality customer service also results in quality nonaeronautical revenue.

ACI has performed an analysis, produced in a White Paper, which tells us a concentration on customer service can potentially

deliver an even greater return on investment than can be achieved through traffic increases or expansion of commercial space!

The White Paper provides crucial guidance to airports on the most effective path toward raising non-aeronautical revenue, with the key learning from the paper being that satisfied passengers spend more. It will be released in late May and you can learn more about it on page 16 of this issue of Airport World.

And just as ASQ helps airports enhance their customer service initiatives, our PassengersPlus website (http://www.aci.aero/ Paxplus) acts as a showcase of the best that the world’s airports have to offer their passengers.

Organised according to categories that include entertainment and recreation, community and social service, tourism and culture, convenience through technology and many more, the website is an excellent way of demonstrating the airport sector’s commitment to the passenger experience.

It is easy for airports to submit their initiatives by visiting the website or by emailing rwhite@aci.aero.

Watch this space as there is more to come this year on customer service from ACI, including more research to help you make informed decisions on investing in customer service improvements and two more ASQ Forums, one in Guayaquil, Ecuador, and another in Naples, Italy.

I hope you enjoy this issue of Airport World and that it inspires you to continue your pursuit of excellence in serving your passengers.

AW

AIRPORT WORLD/APRIL-MAY 2016

15 15

ACI WORLDHEAD NEWS RUNNING

World in motion A new White Paper revealing that customer service is a key driver of non-aeronautical revenues and the unveiling of ACI’s first Accredited Training Institute are two highlights of the second quarter of 2016.

A

new ACI White Paper provides the clearest evidence yet about the positive impact good customer service has on nonaeronautical revenue generation at the world’s airports.

Indeed, the key findings of the White Paper analysing the influence of customer service quality on airports’ non-aeronautical revenue reveals that it is the strongest driver of non-aviation related income.

“ACI’s Airport Service Quality research and analysis suggests that, for most airports, prioritising customer service results is the greatest positive impact on non-aeronautical revenue,” states ACI World’s director general, Angela Gittens.

“It can potentially deliver an even greater return on investment than can be achieved through traffic increases or expansion of commercial space.”

The White Paper is based on the ACI ASQ annual global survey carried out at almost 300 airports of various sizes across the world and surveying over 550,000 passengers per year. It is further supported by data generated from the annual ACI Airport Economics Survey.

ACI’s analysis found that raising customer service levels can be significantly more effective in driving revenue – more effective even than a 1% increase in retail space.

Specifically it found that: • A 1% increase in passenger traffic drives a revenue increase ranging from 0.7% to 1%.

• A 1% increase in commercial space drives an increase in nonaeronautical revenue of 0.2%.

• A 1% increase in passenger satisfaction levels delivers an increase of 1.5% in non-aeronautical revenue.

The White Paper provides crucial guidance to airports on the most effective path toward raising non-aeronautical revenue, with the key learning from the paper being that satisfied passengers spend more.

Airports of all sizes across the world are able to utilise ASQ data to analyse their service performance and target their investment to drive the most effective enhancement of overall service quality.

Gittens adds: “Each airport, of course, faces unique issues in determining its investment programme, but many airports instantly seize upon traffic and retail space as the key engines of revenue growth, when in fact customer service may well be the optimal route.

“The in-depth tailored data provided by the ASQ programme not only gives each airport its own pathway to maximising service quality, but also helps deliver the best return on its carefully targeted investment.”

16

AIRPORT WORLD/APRIL-MAY 2016

New training institute In other news, ACI is pleased to announce that Dublin International Aviation Training Academy (DIATA) has fulfilled all the requirements to become the first ACI Accredited Training Institute (ATI).

The ATI initiative has been designed to build a network of airport training units that offer performance-based, up-to-date courses and other learning activities accredited by ACI that meet international standards for quality in workplace learning.

The ATI project reflects ACI’s belief that ongoing learning is a key component of organisational success; that human performance can be improved through workplace learning; and that for training initiatives to be successful they must meet and exceed established international standards.

In order to have a learning activity accredited, ACI must first review the course content and determine that it meets or exceeds established standards for structure, accuracy and timeliness of subject matter, and appropriateness for the industry. Upon confirmation of the above, ACI then accredits the individual course or learning activity.

“ACI is pleased to have DIATA, a highly respected international aviation training institution, as the initial launch partner for this programme,” enthuses Gittens.

“Our membership’s training needs are diverse, and the ATI initiative will allow us to develop a network of quality training venues throughout the world offering ACI-accredited course material in local languages, thereby increasing access to educational options that will ultimately drive the industry forward into the future.”

DIATA senior vice president, Kevin O’Driscoll, says: “We are delighted to be the first ACI ATI to receive this prestigious accreditation. This is a significant endorsement from ACI and is recognition of our success in establishing a training academy that leads the way in aviation on going learning at home and abroad.”

DIATA’s first accredited course is titled Breathing Apparatus Revalidation (BAR), which has been specifically designed for firefighters to ensure they have full familiarity with breathing apparatus and associated equipment. It is a recommendation that breathing apparatus users bi-annually complete re-validation training.

ACI WORLD NEWS

ACI events

2016

2016

2016

2016

2016

September 25-28

November 8-10

June 20-22

October 19-21

September 12-14

ACI-NA Annual Conference & Exhibition

ACI Latin-America & Caribbean Conference & Exhibition Brasilia, Brazil

ACI Europe General Assembly, Congress & Exhibition Athens, Greece

ACI Africa General Assembly, Conference & Exhibition Maputo, Mozambique

The Trinity Forum, Mumbai, India

ACI World Annual General Assembly Montréal, Canada

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 Tel: + 1 514 373 1200 Fax: +1 514 373 1201 acifund@aci.aero

ACI Africa Ali Tounsi Secretary General Casablanca, Morocco Tel: +212 660 156 916 atounsi@aci-africa.aero www.aci-africa.aero

ACI Latin America & Caribbean Javier Martinez Botacio Director General Panama City, Panama Tel: +507 830 5657/58 jmartinez@aci-lac.aero www.aci-lac.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 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 North America Kevin Burke President & CEO Washington DC, USA Tel: +1 202 293 8500 Fax: +1 202 331 1362 postmaster@aci-na.org www.aci-na.org

As of January 2016, ACI accounts for 592 regular members operating 1,853 airports in 173 countries. In 2015, airports worldwide welcomed 7.1 billion passengers and handled 105 million metric tonnes of cargo and 86 million aircraft movements. ACI is a non-profit organisation whose prime purpose is to advance the interests of airports and to promote professional excellence in airport management and operations.

AIRPORT WORLD/APRIL-MAY 2016

17

AIRPORT REPORT: PITTSBURGH

Pride and prejudice CEO, Christina Cassotis, talks to Joe Bates about the challenges and opportunities ahead as she bids to turnaround the fortunes of Pittsburgh International Airport.

I

t is all too easy to revert back the city’s boom years as a steel town or the airport’s “glory days” as a US Airways hub when thinking of Pittsburgh.

Yes, it was the home of the US steel industry and sure, as a US Airways hub up until 2004, Pittsburgh was a major player in the nation’s airport system, handling around 20 million passengers per annum on a regular basis.

But as many cities and airports have found, nothing lasts forever, and the demise of the steel industry followed by US Airways’ decision to pull the plug on its hub operation meant that like Cleveland Hopkins, Cincinnati/Northern Kentucky and Lambert/St Louis airports in the US and Brussels and Geneva in Europe, Pittsburgh International Airport had a huge void to fill.

Traffic plummeted from an all-time high of just under 21 million passengers in 1997 to 7.8mppa in 2013 and, to some extent, admits current Allegheny County Airport Authority CEO, Christina Cassotis, people were in denial about what had happened.

“For years people wanted to know when US Airways were coming back, and this kind of outlook really didn’t help as it prevented the airport and Pittsburgh from moving on and forging a new future for itself,” she says.

18

AIRPORT WORLD/APRIL-MAY 2016

“So, one of the first things I did when I joined was make it absolutely clear from day one that the hub wasn’t coming back and it was time for a new philosophy and a new business plan to take the airport forward.

“I think that most people have now accepted this and this has allowed us to make some decisions about infrastructure and partner with local organisations to work together towards growing Pittsburgh as an O&D airport.”

New strategy Cassotis has no doubt that the new focus of concentrating on nurturing and growing O&D traffic is the way forward, and believes that the launch of a number of new point-to-point services since her arrival 16 months ago proves that the new philosophy is right.

“I frequently say to people that the opposite of a hub is not, not a hub, it is an O&D market and we can be a good one and that is our future,” states Cassotis.

The new strategy, she says, involves partnering with the types of people and organisations that can help “facilitate inward investment in tourism”.

These include Visit Pittsburgh, the Pittsburgh Technology Council, Allegheny Conference on Community Development – comprising the

AIRPORT REPORT: PITTSBURGH

region’s top 300 companies – and Allegheny County, which includes the City of Pittsburgh.

She also notes that the O&D traffic in Pittsburgh never went away and that it is simply the loss of the airport’s connecting passengers that caused the dramatic decline in throughput that saw PIT fall from being a top 30 US gateway to one just about in the top 50 in a few short years.

It was ranked as the nation’s 49th busiest airport for passenger traffic in 2014 and Cassotis insists that the only way forward for PIT is up as new routes and better facilities and services bring more visitors to the city.

Image and perceptions Cassotis, who moved to Pittsburgh 16 months ago, is also honest enough to admit that there are a lot of misperceptions about the city, perhaps the most common one being that it is an aging steel town that had seen better days.

This, she is quick to point out, could not be further from the truth as the city has all but reinvented itself in recent years to emerge as a centre for technology, robotics, healthcare, finance, nuclear engineering and biomedical technology to name but a few industries.

Google, Bosch, Disney, Uber (driverless car testing), Intel and Yahoo are among 1,600 technology firms based in the area – Facebook recently announced plans to base its Oculus virtual reality centre in Pittsburgh – and the city is home to 68 colleges and universities that include R&D leaders Carnegie Mellon University and the University of Pittsburgh.

She adds that Pittsburgh also has a strong arts and culture offering, in part due to the generosity of its former steel magnets that left vast fortunes to be invested in the city.

Cassotis then reels off a string of attractions that, quite frankly, any city would be delighted to call their own. She also notes that

Pittsburgh has its own world-renowned symphony orchestra, ballet theatre and opera.

“This is a fabulous city,” enthuses Cassotis. “The cost of living is low and you can have a fantastic quality of life here because the city has been cleaned up and turned around. You have this convergence of a lot of things going right at the right time.”

Zagat recently rated Pittsburgh as the best food city in North America and an increasing number of organisations are naming the city as one of the best places to live in the US and the world.

“The people here are very proud of their city, and rightly so, so it was time to start telling the world about it and working with the city, tourism and business partners on developing a route development strategy that would act as a catalyst for the airport to grow once again.”

Route development Modest Cassotis attributes the airport’s air service development programme success over the past year to a concerted regional effort to attract new services and airlines.

As a legacy of its time as a US Airways hub, PIT will remain a fully residual airport until 2018 when it has to renegotiate its airline agreements, so in a bid to encourage traffic growth it restructured its rates and charges to encourage new entrants.

And the policy seems to have worked as four airlines (Allegiant, Sun Air Express, Porter Airlines and OneJet) launched services from PIT in 2015 and they will be joined by a fifth, Frontier, in June 2016.

The recent additions and new services by existing carriers meant that 17 new non-stop routes were launched from PIT last year that included a new service to Billy Bishop Toronto City Airport by Porter Airlines, while Delta committed to direct daily flights to Paris-CDG for six months of the year.

AIRPORT WORLD/APRIL-MAY 2016

19

AIRPORT REPORT: PITTSBURGH

Allegheny County Airport Authority CEO, Christina Cassotis.

All that jazz: A band was on hand to help celebrate the launch of Allegiant services to Orlando Sanford.

Six of the new routes introduced in 2015 were to small regional markets, which Cassotis is quick to point out are important for people accessing Pittsburgh and for the city’s businesses to access the wider market.

In addition to the new routes, many of the airport’s incumbent carriers upgauged aircraft and frequencies on existing services.

“The success of regional, domestic and international routes on a mix of carriers demonstrates our ongoing transition from a former mega-hub to a top origin-and-destination facility,” says Cassotis.

“We are pleased to see carriers’ confidence in the Pittsburgh market and increasing community support for these new flights.”

What has been the secret of PIT’s success? “It’s been a team effort with a laser focus on meeting the needs of where the industry is today,” she says.

“We, of course, highlight the attributes of Pittsburgh, but in truth all the airlines want to know is why we are good for their network and not why is Pittsburgh great, right?

“We now have the people and organisations on-board who can tell them this and it is a good and powerful story.”

The current focus of her attention is the addition of a second daily non-stop service to the San Francisco Bay Area, which she believes is dramatically underserved, and a year-round service to Europe.

Excluding cross-border services to Canada, Cancún, Paris and a handful of routes to the Caribbean are PIT’s only international routes today and the days of daily British Airways flights to London seem a very long time ago now.

Traffic growth As a result of new services, flights, seats and passenger numbers at Pittsburgh International Airport continue to move in an upward trajectory.

Indeed, Cassotis hails 2015 as being a “fantastic year” as the new non-stop services raised the number of destinations served non-stop from PIT to 54 and 8.1 million passengers (+1.6%) passed through the gateway.

“The increase is not huge, but it is for us as it shows that we are continuing to reverse the downward trend of recent years,” comments Cassotis, noting that it was the first time more than eight million passengers have used PIT since 2012.

“It also reflects the momentum that is going on in the greater regional community, which is one of transformation, revitalisation and resurgence,” she adds.

20

AIRPORT WORLD/APRIL-MAY 2016

“Maybe the best way of saying it is that last year the airport got back into the game as a willing and able partner for regional growth and meeting the needs of the economy.”

Would she be so bold as to predict what PIT’s passenger numbers maybe five to ten years down the line if the current level of route development success continues?

“It is difficult to predict the future, but there is a framework that I can see for five to ten years out, so I’ll have a go,” she smiles.

“Pittsburgh as a city and a region has gone from being dependent on one industry, steel, and one airline, US Airways, to diversifying the economy and diversifying the airline mix serving that economy.

“As a result, I predict that we will easily see non-stop, yearround, transatlantic services to Europe by one, if not two carriers, with seasonal fill-ins for some VFR [visiting family and friends] markets.

“I think five to ten years out we will also see the introduction of a Gulf carrier serving not only the Gulf region but India as well because there is a tremendous amount of growth going on at the moment with medical institutions in India and the number of students coming in.

“I expect all of this will lead to significant passenger growth and we will have the answers to the question about how best to develop our facility, bearing in mind that we were built as a connecting hub but now serve as an O&D market.”

Southwest is currently the biggest airline at PIT measured by destinations served and American Airlines is the largest in terms of passengers.

Revenue streams PIT enjoys a 58/42 split between aero and non-aeronautical revenues with car parking accounting for 51.5% of its income from non-aviation relation activities followed by rental car (20.6%) and F&B/retail (9.9%) Cassotis hopes that another source of non-aero revenue will join them later this year when CONSOL Energy Inc is finally expected to start flowing natural gas from thousands of feet below PIT. The 9,000 acre airport site – the fourth largest in the US – sits on top of the Marcellus Shale and three years ago PIT agreed to let CONSOL drill for natural gas from 47 wells on six pads across its landmass.

RUNNINGREPORT: AIRPORT HEAD PITTSBURGH

PIT received an initial down payment of $46 million from CONSOL for the rights to drill for gas on airport land for the next 20 years and Cassotis hopes that the initiative will make the gateway significant income when the wells are turned on for the first time later this year.

Existing facilities Cassotis says that contrary to assumptions, the airport does utilise most of its existing facilities, although inevitably for a gateway built for 30mppa, some gates remain unused.

The airport’s X-shaped design features a central core that includes the recently revamped AirMall concessions area, connected to four concourses, which between them are equipped with 75 gates.

And with four runways the airport is certainly not in need of new infrastructure any time soon, however, Cassotis tells Airport World that this doesn’t mean sitting back and doing nothing for the next few years.

“We have some choices to make as the facilities are 24 years old now and we’ve got to really think about how to modernise them as we are way behind from a technology perspective and some customer service amenities need to be improved,” reveals Cassotis.

The airport is actually in the midst of updating its master plan, which Cassotis assures will address these issues as well as deciding the best way forward for PIT in terms of its over capacity and solving a couple of smaller problems.

“We were built for connecting traffic and so only have 1,100 covered car parking spaces and this is clearly not enough for an O&D airport in the Snowbelt,” she explains.

“We also need to improve the operational efficiency of our Federal Inspection Services facility and our security checkpoints, which are too small and have insufficient capacity despite us having all this capacity airside. All this screams new master plan to me.”

22

AIRPORT WORLD/APRIL-MAY 2016

The airport is just starting to talk to the airlines about possible options and she believes that late summer/early fall will be about the right time to open up discussions with the general public.

Customer service Cassotis reveals that PIT scores relatively well for customer service in ACI’s annual Airport Service Quality (ASQ) customer service poll, passengers liking the gateway’s range of F&B and retail outlets, ease of navigation and non-crowded facilities.

According to Cassotis there is, however, room for improvement in its Wi-Fi speeds and security lanes, and these will be done, as she insists that the airport takes customer service very seriously.

Bringing in more local Pittsburgh concepts and passenger pleasing national and international brands was part of the recent $10 million revamp of the AirMall and has led to the airport earning a healthy $14.56 per enplaned passenger from concession sales in 2015.

New terrazzo flooring that pays homage to Pittsburgh’s past has been installed at the head of all four concourses and is already beginning to win awards.

PIT is also working closely with Pittsburgh’s arts community to help ensure passengers enjoy a sense of place when in its facilities and, in a pioneering move last summer, became one of the first airports in the US to allow ride-sharing operators to make kerbside pick ups.

“This was a result of listening to our passengers and responding to their needs, as well as responding to the changing marketplace,” says Cassotis.

Such improvements and initiatives helped PIT earn a top 10 ranking for medium-sized airports in the recent JD Powers North America Airport Satisfaction Study.

“We are working with all our partners on ways to make mprovements as we want people’s first impressions of the airport to be wow, I didn’t know that about Pittsburgh,” she enthuses.

AW

SPECIAL REPORT: CUSTOMER SERVICE

er year of

am

irport’s te

ational A

tern Incheon In

anoth celebrate

ess.

ASQ succ

Changi Airport Group CEO, Seow Hiang Lee, with Angela Gittens.

Winners all!

Australia’s spectacular Gold Coast was the venue for this year’s Airport Service Quality (ASQ) awards ceremony for the world’s most customer friendly airports.

A

CI’s Airport Service Quality (ASQ) customer satisfaction benchmarking programme is 10 years old this year and it marked the occasion with a record number of awards.

Indeed, it was a case of smiles all round, the occasional fist pump and lots of people striking poses as dozens of airports received their ASQ awards at a glittering ceremony held during the Gala Dinner at the recent ACI Asia-Pacific Regional Conference & Exhibition in Australia.

And it was fitting that the awards ceremony was held in the region as ACI Asia-Pacific airports completed a clean sweep in all of the global sections in the annual survey that involves over 550,000 passenger surveys at more than 300 airports in 80 countries across the planet.

In total, a record-breaking 62 airports won awards in the 2015 ASQ survey due to the introduction of new categories and the results in others being too tight to call.

In the global Best by Size categories, customer service king, Incheon International Airport, finished top in the Over 40mppa section, although this time it had to share the honour with Singapore Changi as the two super hubs couldn’t be separated on the score cards.

The duo finished ahead of an all Chinese cast on the runner’s up podium with Beijing Capital and Shanghai Pudong tied in second place and Guangzhou Baiyun finishing third.

ACI also found it impossible to separate India’s Mumbai– Chhatrapati Shivaji and Delhi–Indira Gandhi airports for top spot in the Best Airport by Size category for gateways handling between 25 and 40 million passengers per annum.

Seoul Gimpo retained its crown in the 15-25mppa category for the fifth successive year while Sanya Phoenix won the 5-15mppa prize and

24

AIRPORT WORLD/APRIL-MAY 2016

Jaipur, a new name in the winner’s enclsure, took the honours in the 2-5mppa category.

In the Best by Region categories, it was a case of as you like it for Indianapolis (North America); Amman-Queen Alia (Middle East); Mauritius (Africa); and Guayaquil (Latin America-Caribbean), which all retained their titles.

Incheon, too, finished top again in Asia-Pacific, although for the first time in 11 years it had to share the spoils with Singapore Changi in joint first place.

It was, however, a case of all change in Europe where the Russian gateways of Moscow Sheremetyevo, Saint Petersburg-Pulkovo and Sochi were joint winners ahead of nine airports that could barely be separated for joint second (Dublin, Malta, Prague, Zurich) and third (Copenhagen, Keflavík, London Heathrow, Porto, Vienna) places.

The new category of Best by Size and Region gave a number of airports the chance to shine in ACI’s ASQ survey for the first time. They included Sochi, Dublin and Heathrow, which came out on top in the respective 2-5mppa, 15-25mppa and Over 40mppa categories for Europe.

Others first time winners were Grand Rapids in the US, which led the way in the 2-5mppa group in the Best by Size and Region category for North America, while Denpasar (Asia-Pacific), Dammam (Middle East), Istanbul Atatürk (Europe), Kingston–Norman Manley (Latin AmericaCaribbean), Nairobi (Africa) and Saskatoon (North America) all won Most Improved Airport accolades.

Worthy of note is that Jaipur, Sanya Phoenix, Seoul Gimpo and Delhi-Indira Gandhi airports were double winners after repeating their global success with first place rankings in the Best Airport by Size and Region categories for Asia-Pacific.

SPECIAL REPORT: CUSTOMER SERVICE

Delhi-Indira Gandhi Inte

rnational Airport was ano

Sochi Airport scooped two prizes.

ther two-time winner.

just a few short years ago Dublin Airport was rock bottom in its peer group of airports surveyed in ACI’s service quality rankings.

“Since then we were determined to improve our customers’ experience of the airport and we have done that every year to get to this top spot.

“The key areas to drive passenger satisfaction at Dublin Airport are the courtesy and helpfulness of staff, security, check-in, cleanliness and the departure gates.

“We are passionate about improving our customers’ experience further and it is a key priority of our management and staff at Dublin Airport to continue to do that.”

Remarking on Indianapolis International Airport (IND) being named the Best Airport in North America for the fifth time in six years, Indianapolis Airport Authority’s board president, Kelly Flynn, notes: “The high level of customer service displayed by employees at IND is remarkable.

Incheon, the most successful ASQ airport of all time, was a triple winner after finishing top outright in the Over 40mppa section in the Best by Size and Region category for Asia-Pacific.

Commenting on his airport’s success, Incheon International Airport’s newly appointed CEO, Chung Il-young, says: “We continuously strive to do better and this now includes Victory was sweet for Seoul-Gimpo. improving the 2–5 MILLION PASSENGERS PER YEAR old facilities and operational systems of Terminal 1 First place Second place Third place and completing the construction of the second terminal Jaipur Lucknow Guayaquil by 2017.”

Singapore Changi’s senior vice president for 5–15 MILLION PASSENGERS PER YEAR corporate and marketing communications, Ivan Tan, First place Second place Third place says: “At Changi Airport, we believe in delivering a Sanya Phoenix Tianjin Binhai Hyderabad passenger experience that is personalised, stress-free and positively surprising. We call this the Changi Experience and we can only deliver it with the strong and 15–25 MILLION PASSENGERS PER YEAR steadfast commitment of our frontline personnel First place Second place Third place including our dedicated and hardworking Changi Seoul Gimpo Wuhan Denpasar Experience Agents (CEAs).

“The CEAs are our roving service ambassadors who comb our terminals armed with tablets. Rather than have our 25–40 MILLION PASSENGERS PER YEAR passengers walk to information counters, our on-the-go CEAs First place (tie) Second place Third place spot passengers in need and provide assistance such as Mumbai Taiwan Taoyuan Shanghai Hongqiao giving flight details and directions.

New Delhi “All the information they need is in their tablet. Together, our CEAs can speak close to 20 languages to cater to our international audience.”

OVER 40 MILLION PASSENGERS PER YEAR Talking about his gateway’s success in the 15-25mppa First place (tie) Second place (tie) Third place category in the Best by Size and Region section for Europe, Seoul Incheon Beijing Guangzhou Baiyun Dublin Airport’s managing director, Vincent Harrison, Singapore Shanghai Pudong enthuses: “This is a very significant achievement for us as

Best Airport by Size

AIRPORT WORLD/APRIL-MAY 2016

25

SPECIAL REPORT: CUSTOMER SERVICE

Most Improved Airport

Africa Asia-Pacific Europe Middle East Latin America-Caribbean North America

Best Airport by Size and Region (new category)

Nairobi Denpasar Istanbul Dammam Kingston Saskatoon

ASIA-PACIFIC 2–5 million passengers per year 5–15 million passengers per year 15–25 million passengers per year 25–40 million passengers per year Over 40 million passengers per year

Jaipur Sanya Phoenix Seoul Gimpo New Delhi Seoul Incheon

EUROPE 2–5 million passengers per year 5–15 million passengers per year 15–25 million passengers per year 25–40 million passengers per year Over 40 million passengers per year

Sochi Pulkovo Dublin Moscow Sheremetyevo London Heathrow

NORTH AMERICA 2–5 million passengers per year 5–15 million passengers per year

Grand Rapids Indianapolis

onal

Internati irobi-Jomo Kenyatta sents awards to Na al Airport (below). on ati Angela Gittens pre ern Int R SS uritius’ Airport (top) and Ma

“Our customers see it because this honour is the direct result of their feedback. We deeply appreciate the airport staff and business partners for excellent service and we thank passengers for recognising great service and our great airport.”

Executive director, Mario Rodriguez, adds: “Hoosier hospitality is the secret to our success. Our airport is certainly a beautiful, world-class facility, but it is the hard work and dedication of our staff and our airline partners that distinguishes us year after year.”

26

AIRPORT WORLD/APRIL-MAY 2016

Seokki Kim, president and CEO of Korea Airports Corporation (KAC), believes Seoul-Gimpo’s continued success demonstrates just how good its customer service levels are as he admits that the gateway is currently utilising “outdated facilities”.

He says: “Gimpo’s achievement of ranking the first in the world in airport services for the fifth consecutive time, despite its outdated facilities, is the result of the combined efforts of all airport employees who share the mutual goal of striving to provide the best airport services.

“We will do our best to continue to innovate and make improvements to remain a customer-friendly and business-oriented airport.”

Reflecting on Queen Alia holding on to its title of Best Airport in the Middle East, CEO, Kjeld Binger, says: “The fact that we have been recognised once again by our passengers through such a prestigious global organisation is further testament to our consistent track record of achievements and our efforts toward sustaining our standing as one of the top 20 airports, which serves five to 15 million passengers.

“Looking back at how far we have come since the new terminal was inaugurated by His Majesty King Abdullah II in 2013, it is clear that our competitive advantage lies in our conveniently smaller size, which makes for shorter transit processes and walking distances, not to mention Jordan’s stability and strategic proximity to Europe and Africa, making QAIA an ideal gateway for business and leisure passengers.”

Moscow Sheremetyevo believes that winning Best Airport in Europe for the third time in four years – this time sharing the honour with Saint Petersburg–Pulkovo and Sochi – demonstrates the quality of its customer service offering to passengers.

General director, Mikhail Vasilenko, enthuses: “Providing a superior level of customer service is very important because Sheremetyevo is the largest international airport in the country and therefore plays a key role in attracting investment and maintaining the competitiveness of Russia.

“The airport’s infrastructure will be modernised ahead of the 2018 FIFA World Cup to make it even more comfortable and attractive.

I want to thank the passengers for their high appreciation of our work as well as our partners and airlines for our joint success and victory.”

SPECIAL REPORT: CUSTOMER SERVICE

That winning feeling: Mumbai Chhatrapati Shivaji

International Airport.

You win again: Guayaquil International Airport.

Best Airport by Region (over 2 million passengers per year)

AFRICA First place Mauritius

ASIA-PACIFIC First place (tie) Seoul Incheon Singapore

Second place (tie) Cape Town Durban

Third place Johannesburg

Second place (tie) Beijing Mumbai New Delhi Sanya Phoenix Shanghai Pudong

Third place (tie) Guangzhou Baiyun Taiwan Taoyuan Tianjin Binhai

EUROPE First place (tie) Second place (tie) Third place (tie) Moscow Sheremetyevo Dublin Copenhagen Pulkovo Malta Keflavík Sochi Prague London Heathrow Zurich Porto Vienna MIDDLE EAST First place Amman

Second place (tie) Abu Dhabi Doha

NORTH AMERICA First place Indianapolis

Second place (tie) Dallas Love Field Grand Rapids Jacksonville Ottawa Tampa

Third place (tie) Dammam Dubai Tel Aviv Third place (tie) Austin Detroit Sacramento San Antonio Toronto Billy Bishop

LATIN AMERICA-CARIBBEAN First place Second place Third place Guayaquil Quito Punta Cana Monterrey

28

AIRPORT WORLD/APRIL-MAY 2016

Congratulations Saskatoon John G Diefenbaker International Airport.

Delhi-Indira Gandhi International Airport scooped two first places in the 2015 ASQ survey and was ranked joint-second best gateway in the entire Asia-Pacific region.

The opening of its new state-of-the-art Terminal 3 in 2010 certainly helped as operator, Delhi International Airport Limited (DIAL), proved good on its pledge to enhance service standards across the airport.

DIAL CEO, I Prabhakara Rao, notes: “The airport’s partners and employees have relentlessly delivered a distinct and enjoyable experience to our passengers enabling us to achieve three coveted ASQ awards.

“These achievements reiterate our commitment towards fulfilling our Prime Minister’s ‘Make in India’ mission and also act as a catalyst for the creation of a new paradigm for the passenger experience.

“In the fast-changing landscape of worldwide aviation, ACI’s ASQ benchmarking programme is the key to understanding how to enhance passenger satisfaction and improve business performance.”

Paying tribute to all the ASQ winners, ACI World’s director general, Angela Gittens, remarked that the ever increasing efforts of airports to concentrate on “ensuring a stellar passenger experience” appeared to be part of a larger trend.

“Airports have evolved into complex, customer-focused businesses in their own right that in many cases are in competition for passenger traffic,” she notes.

“From duty free and restaurants, to ambience, cleanliness, courtesy of staff, amenities, efficiency and more, air travellers are expecting big things from the airports through which they travel.

“More than anything, ASQ is a way for participants to measure the extent to which they deliver on these expectations.” AW

SPECIAL REPORT: CUSTOMER SERVICE

Who cares wins Joe Bates takes a quick look at some of the latest health and wellbeing initiatives taking place at airports across the globe.

S

tockholm Arlanda has become the first Nordic gateway to be recognised as a ‘Heart-Safe Zone’ based on its commitment to the installation of defibrillators and training staff how to use them in case of a medical emergency.

The airport has installed 31 defibrillators in public areas across its terminals and trained its staff in cardio pulmonary resuscitation (CPR).

“Our aim is to be on the scene with a defibrillator within three minutes of being alerted that someone is in cardiac arrest,” says Jörgen Jernström, rescue officer at the Arlanda Rescue Service.

Airport operator, Swedavia, is quick to point out that it has also invested in the potentially life saving equipment at its other nine gateways across Sweden as unfortunately, a number of people are taken ill on their travels each year.

Indeed, the machines were used five times at Stockholm Arlanda in 2015 after passengers suffered a cardiac arrest.

Equipping Arlanda with the life saving equipment has been recognised by the Swedish Standards Institute (SIS) – which represents Sweden in the European Committee for Standardization (CEN) – earning it Heart-Safe Zone accreditation.

According to Swedavia, the standards are quality-assured and were developed in partnership with organisations such as the Swedish Heart-Lung Foundation and the Swedish Resuscitation Council.

“Our staff are trained in CPR and can work a defibrillator, so passengers at our airports should feel safe even if there is a medical emergency,” adds Jernström.

“We now have defibrillators located all over Stockholm Arlanda, so wherever passengers are in the airport they can be assured that they will be within 90 seconds of one of our machines.”

Statistics show that of the 10,000 Swedes to suffer from cardiac arrest each year, only 550 survive, yet with the help of early CPR and a defibrillator within three minutes, the chances of survival increases 75%.

Sound of silence Frankfurt Airport must be trying to tell us something about peace and tranquility as in the first quarter of 2016 it has opened a couple of yoga rooms and unveiled a new ‘silent chair’.

It claims that the introduction of silent chairs have created new relaxation opportunities for passengers wishing for a quiet place to rest up at one of the world’s leading transfer hubs.

According to airport operator, Fraport, the silent chairs are the “perfect way to relax in peace while waiting for an onward connecting flight”.

It goes on: “These arch-shaped chairs noticeably reduce the ambient noise, enabling passengers to listen to their own music thanks to integrated speakers that can be connected to their smartphones, tablets or other digital devices.”

Silent chairs are currently available opposite gates A58 and Z58 in Terminal 1 and by gates D4 and E5 in Terminal 2, although more are expected to be added later this year if they prove popular.

Frankfurt Airport’s two professionally equipped and free yoga rooms are located beyond security near gates C14 and C16 in Terminal 1 and near gates D1 to D4 in Terminal 2.

Fraport notes that visitors will find all they require in the rooms, ranging from yoga mats, blocks, cushions and pads to floor-to-ceiling mirrors and a wall-sized Buddha designed to evoke “an appropriate ambiance”.

Sleep time Finally, Singapore Changi and Incheon retained the top spots in the annual passenger poll conducted by SleepinginAirports for being the most ‘sleep friendly’ airports in the world. Tokyo Haneda, Taipei Taoyuan and Hong Kong completed the top five.

It says: “These chart-topping terminals go above and beyond when it comes to providing a clean and comfortable travel experience, complete with services and facilities you might not even imagine.

“Spending time here truly is an experience in and of itself given that airports practically bring the host city to you! With indoor jungles, aquariums, IMAX theatres, spas and an endless number of shops and restaurants, travellers repeatedly talk about being sad to hear the boarding call for their flight.”

AW

AIRPORT WORLD/APRIL-MAY 2016

31

SPECIAL REPORT: CUSTOMER SERVICE

Find space for parking!

Airports looking to boost customer satisfaction levels would do well to remember motorists and the importance of the car parking experience in passenger journeys, writes Chris Girling.

I

n a world where customer experience is king, airlines have been improving their aircraft, whilst airport operators have focused on terminals.

Indeed, both have invested heavily in services to make the journey better, but often the start and end of a journey is forgotten – the parts that can be the most stressful and make or break the overall experience. That is why car parks are a vital element in the overall experience.

Car parking is an important revenue earner for airports across the world. Denver (DEN) and Dallas/Fort Worth (DFW), for example, generated $172 million and $135 million respectively from their car parks in 2015 and London Gatwick (LGW) makes over £60 million annually.

However, but with low-cost, off-site parking often providing a cheaper alternative and governments encouraging public transport links, arguably this valuable source of revenue is under threat like never before, which is why airports need to ensure a positive passenger experience.

A positive car parking experience gives airports a competitiveadvantage, not only reinforcing the operator’s brand, but further increasing passenger buy-in.

Benefits include increased occupancy by winning new customers who are currently using low-cost car parks, taxis, shuttle buses or rides from friends or family and, subsequently, more revenue.

But what does the ‘customer experience’ mean in the context of parking? Research will help operators understand their challenges, fears, likes and dislikes to create that better experience.

Consider booking (increasingly in-advance and online), directions and entry, the facilities themselves and the connection to the terminal itself. Parking should be considered as part of the end-to-end journey.

Booking should be an intuitive process that builds confidence and leaves customers satisfied that they have chosen the right official car park for the best price available.

Drivers should be given simple instructions on how to reach the right car park, and this needs to be consistent with any messaging on the approach roads and car park entrances. This ensures quick decisions are made, which reduce driver-error whilst lowering stress levels. Getting these basics right is key to passenger satisfaction.

Passengers in a bad mood are unlikely to make informed decisions, which denigrates their experience and perception of the airport.

32

AIRPORT WORLD/APRIL-MAY 2016

Pre-booking is often supported by number plate recognition technology, but should this go wrong, drivers need to know how to resolve the situation quickly and easily. This is where a regular maintenance programme can improve the customer experience.

Finding an empty space is often a major headache for drivers, which is why airports such as Fort Lauderdale-Hollywood are investing in new technology to help. It has opted for Park Assist, which utilises sensor technology that informs drivers which of the airport’s 5,500 parking spaces are available.

In China, Xiamen Gaoqi International Airport uses similar technology to free people from the rush and anxiety to find empty parking spaces while hurrying to catch their flights. Digital signs indicate how many parking spaces are open and red and green lights throughout the aisles show available spaces.

Another common problem is that passengers often forget where they have parked. Location information can be written on the ticket, but this is a long way behind the latest ANPR technology, which uses video cameras to locate a vehicle.

One company, at least, is testing technology that links the boarding pass with your car registration, enabling you to scan your pass to locate your car on return.

Carefully placed visual cues, totems and memorable naming/ imagery can aid unconscious memorability and help passengers find their car on their return. Images can also add colour and style to an otherwise bland environment.

Likewise, the clever use of lighting can be used to enhance the look and feel of dark and poorly lit multi-storey car parks as well as aiding intuitive wayfinding.

Additionally, coloured lighting can be used to affect human behaviour. Certain hues, for example, can create a more relaxed and

SPECIAL REPORT: CUSTOMER SERVICE

calming environment, which place passengers in a good state of mind before they enter the terminal.

In some cases, older multi-storey car parks can be very tight, and the sight of scrapes on protective barriers can cause concern.

Another issue to consider is that the line of sight is often poor in car park environments, with signs blocked by cars, people, pillars and bulk heads. Therefore careful sign placement with consideration for reading distance, visibility and illumination can make a significant difference.

Examples of how to improve the brand experience can include simple devices such as well-placed welcome and departure messages with careful consideration of tone of voice.

Tailored patterns and textures – perforated or etched cladding, for instance – can be used to enhance wall and floor finishes. These improvements create a higher quality environment that better fits the aspirations and brand image of the airport and can act as memoryjoggers that go well beyond the usual use of colour-coding to differentiate individual car parks.

The area between the car park and terminal building can also be significantly improved with the addition of unique graphics or sculptural pieces that can be used to create a sense of place to aid orientation and increase memorability.

They create good photo opportunities and useful meeting points to turn the journey from park to terminal from a chore to a positive experience.

Where transfer is by bus, bus stops should be well maintained and offer proper protection from the weather. The vehicle itself should reflect the operator’s brand values and be used to provide additional, helpful information to passengers, such as advice on airline terminals or flight departure times rather than the latest special offer in duty free.

Wayfinding certainly plays a key role when designing a better parking experience with passengers, given the right information at the right time, breaking down complex journeys into a series of connected stages.

After all, people prefer consistent and predictable information, which they find easier to recognise, understand and act upon. In this regards, the scale and position of information should be in accordance

with its importance relative to the location, and there should be seamless information beyond the immediate vicinity of the car park.

Passengers need to trust the information they are given, as confidence in its accuracy and consistency will give a positive boost to customers. The use of symbols to guide passengers is common, however, these need careful consideration as too complex or abstract can add another level of user thinking.

The key to successful wayfinding is providing information that can be quickly understood to aid decision-making. Additionally, staff can play a key role, as can well-placed web promotion and marketing.

The return journey to the car park should be equally trouble free – including having sufficient payment machines that are easily understood and used, to avoid queues and frustration.

In a world of where the importance of brand is paramount, this needs to be reflected in all aspects of the parking experience – both visually and in terms of service level.

But beware, even the best of intentions can backfire sometimes as Frankfurt Airport discovered when it was accused of sexism and reinforcing the myth that women are bad parkers after announcing that it had created spaces just for female drivers that were “bigger, nicer and close to the terminals”.

At a time when the customer experience is a key business driver, it is often the things that get forgotten about that make the difference between a good customer experience and a poor one.

Devoting sufficient planning time to understanding the behaviour, wants and needs of car park users will help airports build long-term relationships with travellers and ensure that parking continues to contribute towards their financial success for many AW years to come.

About the author Chris Girling is head of wayfinding at UK-based human behaviour and design agency, CCD.

AIRPORT WORLD/APRIL-MAY 2016

33

SPECIAL REPORT: CUSTOMER SERVICE

Denver’s eye-catching new uniforms (left) and Nao the robot (above) at work in Tokyo Haneda Airport.

Out to impress

From trendy new uniforms in Denver to Nao the robot at Tokyo Haneda, it has already been quite a year for customer service innovation at airports around the world, writes Joe Bates.

D

enver was one of the first to shine in 2016, introducing arguably the coolest airport uniforms on the planet for its customer service teams.

The new blue plaid uniforms – launched in partnership with Colorado-based Spyder Active Sports – are being worn by customer service agents at information booths, airport ambassadors and volunteers from its Canine Airport Therapy Squad (CATS).

“The new look for our customer service team will increase the visibility of our dedicated volunteers and employees who answer questions, direct passengers and help introduce millions of people every year to our special brand of Colorado hospitality,” says Denver International Airport’s CEO, Kim Day. “We are creating a new look and identity that reflects the spirit of the Rocky Mountain region, where we actively engage with passengers to help create an elevated travelling experience.”

I, Robot Nao has joined the growing list of airport robots by providing Japan Airlines passengers at Tokyo Haneda Airport with information about flight schedules, security requirements and weather reports.

Japan Airlines started trials of the humanoid robot guide at Haneda in February and the tiniest member of its workforce at just 60 centimetres tall proved popular with customers. Now the airline has to decide whether he impressed them enough to become a more permanent fixture at the airport.

Built by a French company, it speaks Japanese, English and Chinese and was placed in the departure hall and security check areas for maximum impact during the trials.

Making some noise In March, Austin-Bergstrom celebrated the South by Southwest (SXSW) music festival in the city by presenting its own SXSW sanctioned showcase of events in addition to its regular weekly lives shows.

“The SXSW shows make for extra musical fun added to the airport’s usual live music performances,” said the Texas gateway, noting that airport concessionaire, DNC, has been a sponsor of live music at Austin-Bergstrom since its inception.

A very different kind of noise is being made at Gatwick courtesy of the world’s largest interactive sound installation installed on its iconic 180-metre long Skybridge.

For the sounds to be heard in the ‘A Living River’ soundscape are from China’s Yangtze River courtesy 128 kilometres of cables and 160 speakers across 80 channels that immerse visitors in 3D sound for the duration of their journey across the Skybridge.

The soundscape includes everything from rushing water, the crackling of rocks and stones on the riverbed to skylarks singing in the trees and, incredibly, all were recorded by award winning sound designer and audio specialist, Nick Ryan, and a colleague during a whirlwind five-day trip to China when they recorded over 100 hours of material.

The sounds react and change to people’s movements (using motion sensors), so everyone’s experience is unique and, as an added element, the installation is responsive to live weather, so if it’s raining on the Yangtze you will hear rain in the Skybridge.

Described as a “one-off” installation by Gatwick’s chief commercial officer Guy Stephenson, the soundscape is designed to celebrate the work of HSBC’s 15-year partnership with World Wildlife Fund and The Water Programme in the Yangtze.

“Airports are all about experiences and I believe that we have created something unique here that will delight and entertainment our customers and that they will go home and talk about it and Gatwick Airport,” Stephenson told Airport World.

“I think if we put a smile on people’s faces then it will be a success. Is there any commercial benefit in it for us? Not really, but then again not everything is measurable. If people like it and talk about it then that’s great and they will hopefully want to come back.”

Food for thought And the world of airport retail and F&B hasn’t been far behind either in terms of the unveiling of new and sometimes literally mouth watering new facilities.

These have included the opening of a new celebrity chef restaurant at Washington Dulles (Wolfgang Puck); the unveiling of the world’s first airport

AIRPORT WORLD/APRIL-MAY 2016

35

SPECIAL REPORT: CUSTOMER SERVICE gin distillery at London Gatwick; plans for a rodeo bar and Belgian beer kiosk at Dallas/Fort Worth (DFW); and the creation of the largest M&M’s store in travel retail at Hong Kong International Airport.

According to DFS, the new 35sqm M&M’s outlet at Hong Kong International Airport is designed to offer “chocolate lovers a unique, entertaining and fun travel experience, driving travellers into the store”.

Located close to Gate N28 in Terminal 1 and set up in partnership with International Travel Retail, it is described as an “interactive retail theatre with a focus on fun as well as personalised and unique to Hong Kong”.

Sense of place displays include a replica of one of Hong Kong’s iconic dragon boats along with artwork that incorporates the brand’s world famous Red and Yellow characters.

Rio’s Hugo.

Travel retail’s biggest M&M’s store at Hong Kong International Airport.

Website innovation Rio de Janeiro’s Tom Jobim International Airport also has a new member of staff in the shape of its new sign language expert, Hugo.

He is described as a “virtual interpreter” by airport operator, RIOgaleão, and is a new addition to its website as part of an initiative to make the gateway more accessible and, subsequently the airport experience more enjoyable, for all users.

RIOgaleão says that Hugo is designed to help people with impaired hearing better understand, use and explore the airport website site to find information such as the location of airlines, buses, BRT [bus rapid transit] system, shops and restaurants.

The airport believes that it is a pioneering new service and states that it is one that it is particularly proud to have introduced as the 2010 Census revealed that up to 10 million people in Brazil alone have hearing difficulties, a large proportion of which don’t speak Portuguese.

Users can activate and interact with Hugo on the airport’s website – www.riogaleao.com – by clicking on the ‘Hand Talk’ icon in the corner of the screen.

The airport is expected to enjoy a record-breaking year for passenger traffic as Rio, of course, will host both the Olympic Games and the Paralympics later this year.

RIOgaleão notes notes that Rio de Janeiro’s hosting of two such huge sporting events this year ensures that ‘accessibility’ is its watchword for 2016.

It says: “We hope that Hugo ensures that we have a communication channel for all at Tom Jobim International Airport.”

36

AIRPORT WORLD/APRIL-MAY 2016

Cry me a river: Passengers at Gatwick enjoying the sounds of China’s Yangtze River.

Welcome to Michigan Finally, Detroit Metropolitan Airport (DTW) – which earlier this year introduced dedicated kerbside pick up areas for disabled passengers – has unveiled a new Pure Michigan photo exhibition which it hopes will please passengers and encourage them to explore the area.

For the newly installed photo experience at the International Arrivals Hall of the McNamara Terminal and in the North Terminal at will been seen by nearly 1.5 million international travellers that pass through the airport’s Federal Inspection Services facilities each year.

The campaign is one of the first of its kind in the US and is the result of a collaboration between Travel Michigan, the Detroit Metro Convention & Visitors Bureau, Detroit Metropolitan Airport, the airlines and US Customs and Border Protection (CBP).

Artwork as large as 12ft high and 61ft long, featuring images of Detroit cultural landmarks and the state’s natural beauty can be found at the European and Asian arrival gates and the baggage claim area in customs.

Native language videos featuring Detroit will also play on video monitors located throughout the customs area in the near future.

As flights arrive, the videos will be served up in the most appropriate language, including English, German and Mandarin.

Pure Michigan ads will also play on the monitors.

“Our arriving international travellers are now greeted with beautiful images of our state’s iconic landscapes, natural areas and culture – what better way to say, welcome to Michigan,” enthuses airport CEO, Thomas Naughton.

AW

SPECIAL REPORT: CUSTOMER SERVICE

Smiles better Security director, Johnnie Müller, discusses the launch of a new Smiley campaign to guide and monitor the movement of contractor/supplier vehicles at Copenhagen Airport.

I

n recent years Copenhagen Airport has won a series of awards for its B2C-focused customer service initiatives and, although we have no awards to show for it yet, we are equally committed to getting things right for our B2B customers.

And I am sure it comes as no surprise to you to hear that the challenges for B2B aimed customers are just as complex when it comes to compliance with security regulations.

To meet these challenges, Copenhagen Airport Security recently launched a Smiley campaign aimed at helping the vehicles used by suppliers and contractors comply with the security requirements and therefore ensure quicker and easier airport journeys.

This sub-group of B2B-segments tends to be particularly challenged as they need to bring various materials and tools to security restricted areas.

The security model in Copenhagen is based on both an informative and a punitive approach to compliance and support for the airport as it carries out large-scale reconstruction projects to ensure that Denmark’s leading gateway is equipped to meet future demand.

Indeed, an all-time high of 26.6 million passengers used Copenhagen Airport in 2015 – the fifth year on the trot it has set a new record – and it is more than aware of the need to upgrade its facilities to match this high-speed expansion.

It is interesting to note that close to 22,000 ID-card holders work at Copenhagen Airport today on a daily, weekly or monthly basis and this is likely to increase in the future as the gateway grows.

In terms of vehicles, it is in the best interest of both our customers and security staff alike that contractors and suppliers

receive extensive information and individual guidance as the interior storage facilities for different vehicles can vary greatly.

We do this by requiring security staff to hand out green, yellow or red smileys to drivers, which inform them of the designated security standard of their vehicle and what they need to do to improve the rating – move from a yellow to a green smiley, for instance.

If vehicles are not equipped with shelves and there is no inventory list, for example, suppliers and contractors need to carry tools and materials manually through checkpoints.

“Often it is only a few extra details that are needed, such as updating an inventory list or knowing how to correctly store equipment/tools,” explains Poul Eckhardt, union representative and security gatekeeper.

“That doesn’t sound like much, but it is important that we know all about vehicles in advance of their arrival at the airport.If we don’t, a time consuming search has to take place, which is in nobody’s best interest.”

A fan of the new system is Frank Vognsen, a sales engineer with Forbo Siegling Denmark, who regularly requires airside access to maintain the airport’s luggage transportation belts.

“Knowing exactly what is required is very welcome as we want and need to comply with security regulations in order to keep our customers at the airport,” he says.

A total of 279 individual suppliers/contractors are the target group for the campaign as they are responsible for 1,211 vehicle passes a year through security checkpoints to restricted areas at Copenhagen Airport.

Campaign material consists of a set of smiley-stickers in green, yellow and red and a pamphlet about security requirements for supplier and contractor vehicles.

AW

AIRPORT WORLD/APRIL-MAY 2016

39

SPECIAL REPORT: CUSTOMER SERVICE

Let us entertain you!

Singapore Changi’s Jewel project promises to be very special.

Airports embracing the ‘experience economy’ will be one step ahead of their rivals when it comes to popularity and revenue generation, writes James Samperi.

A

irport operators are moving from solely managing infrastructure to directly managing the customer experience within their facilities because it is not only the right thing to do but because it’s becoming the profitable thing to do.

Indeed, the aviation business continues to evolve and airports are changing from solely B2B infrastructure businesses to consumer experiences businesses.

Without doubt other commercial organisations envy airports, because they are largely guaranteed a diverse and captive audience that will engage with products and services if they have the time to do so, are in a good mood or are simply keen to make the most their time at the airport.

And airports for their part are becoming ever more imaginative about how to capitalise on these opportunities, today’s offerings increasingly valuing the importance of great service and embracing consumer technology to develop unique products and services that make the journey easier and more pleasurable.

ACI’s Airport Economics Report for 2015 reveals that around 50% of non-aviation related revenues come from retail concessions and car parks. The mantra being to get people through necessary processes with time to spare to allow them to go shopping.

This still holds true, of course, but consumer markets have completely changed over the last decade and passenger sophistication has increased as we’ve moved from consuming products, to services, and now to experiences. In other words we now seek out customisable and personalised experiences such as streaming our Spotify music in an Uber taxi or getting targeted recipe recommendations with our grocery shop.

Retail has also evolved. Apple, for example, has arguably changed the paradigm for electronic retailing by shifting from simply displaying products to creating immersive environments where customers experience the product and all its service applications.

And the philosophy clearly works because Apple stores are the most profitable by sales per square foot worldwide despite stocking considerably less product than other retailers, according to a 2015 article in Fortune magazine.

It’s a tough new world out there for retailers and it means that many airports will have to look at re-imagining how to attract new routes and airlines, retain passengers and increase spend, whilst attracting the right commercial partners.

The hub airports, in particular, are realising that experience really matters, as the majority of customers have a choice and it is here where we see some notable innovation examples. So what have airports done well in bridging the experience gap and making the most of captive revenue opportunities?

Taking more direct ownership over the end-to-end experience Airports have been bringing together and managing different service providers and commercial partners to enhance the customer experience across all stages of their journey.

Amsterdam Schiphol, for instance, demonstrates how experience and operations can work together, with innovations in security to reduce stress and make the environment less imposing. The design supports

AIRPORT WORLD/APRIL-MAY 2016

41

SPECIAL REPORT: CUSTOMER SERVICE

Dubai is determined to cater to all different types of passenger.

passengers in preparing for screening, speeding up queues and improving secondary inspections. They’ve even included a passenger ‘re-composure’ area in which to gather possessions in comfort.

Indeed, Schiphol’s security director, Ron Louwerse, has gone on record as stating that he believes that the next step for airports is to treat and view security as service rather than a necessity, and he thinks that his gateway can carry out this transformation without adding more costs.

Personalising the experience by combining the digital and physical environment This is about capitalising and creating digital experiences that enhance how passengers navigate with real-time information and responsive wayfinding.

Airports like Miami and Hong Kong are trialling beacon technology to offer traveller personalisation and automation for services ranging from directions, gate walk times, lounge access and boarding alerts. Several airports plan to take this further to include passenger offerings and commercial opportunities around retail and dining.

Developing targeted products, services and experiences that meet customer needs Passengers are different and need to be catered for as such. We’re seeing a more sophisticated understanding of the needs, wants and behaviours of customers to support the operation but, furthermore, help drive the development of the right products and services.

Manchester Airport Group (MAG) says that customer experience upgrade opportunities such as Escape Lounges, premium valet parking and fast track security clearance contributed towards a 6.7% rise in its revenues.

Meanwhile in the Gulf, Dubai Airports have focused on developing compelling experiences in order to attract and make the most of customers’ time as it realised many years ago that operating and sustaining one of the world’s busiest and, soon to be biggest airports, requires a different approach.

So, rather than being an add-on, there’s a realisation that improving the passenger experience will, in turn, drive many other things sacred to airports such as operational efficiency and revenue generation.

They’ve shifted from binary classifications of passengers by ticket type to a more sophisticated understanding of needs based on behaviours, attitudes and propensity to engage with certain services and experiences. As a result, their focus is on offering customers choice to navigate and spend time on their own terms and help customers help themselves through innovative technology.

Customer experience now sits at the heart of their development strategy and all decisions come back to passengers’ needs, wants and desires.

Finding ways to create a unique offer not found anywhere else An ever-increasing number of airports are realising the need to create a unique ‘sense of place’ and this might be centred on bringing together many cultures, celebrating the temporal nature of the experience or it maybe capitalising on the 24/7 qualities of airports and showcasing the operation.

Whatever it is, airports are distinctively different and have a largely guaranteed audience to look after and entertain, and one gateway that knows this and does this particularly well is Singapore Changi.

42

AIRPORT WORLD/APRIL-MAY 2016

Singapore’s super hub is consistently cited as the benchmark for others to follow, in part due to the fact that it has long shown that it is not bound by conventions. A case in point is its ambitious plan for Project Jewel or Jewel Changi Airport as it has recently been rebranded.

Being built as an extension of Terminal 1 and accessible by pedestrian bridges from T2 and T3, Jewel Changi Airport is designed to be an experience first and an airport second so it should come as no surprise to learn that its centre-piece will be the world’s largest indoor waterfall at 130ft.

Becoming more responsive and empowering passengers Airports are increasingly shifting from a responsive service model to a proactive one in a bid to set themselves apart from the rest and take customer service standards to the next level.

Heathrow recently demonstrated this with its ‘buy-before-you-board’ proposition that allows passengers to build a food hamper for their flight. The motivation for the new service being the changing eating habits of travellers that has led to a rising number of economy class travellers snubbing their on-board food offerings.

Make not mistake about it though, airports still have a long way to go on this front, because although they may be good at this from an operational perspective there is a lot of room for improvement in terms of the delivery of frontline products and services.

Summing up, the shift from infrastructure provider to experience provider is well on its way as airports realise the impact having a good time has on driving passenger numbers and increasing commercial performance, but there’s more work to do. After all, great experiences don’t just happen by chance. They are designed.

AW

About the author James Samperi is a director at Engine, a UK-based team of designers, researchers and strategists specialising in design and development services. www.enginegroup.co.uk

REGIONAL AIRPORTS

Big year for Vilnius Vilnius Airport director, Artūras Stankevičius, discusses record-breaking traffic figures, privatisation and some of the challenges faced by Europe’s smaller regional gateways.

How many passengers did Vilnius Airport handle in 2015 and how did this compare to 2014?

Passenger numbers grew by 13.4% last year to reach a record 3.3 million. It was the first time in the 100-year history of Vilnius Airport that we handled more than three million passengers in a calendar year.

What are the main drivers behind current traffic trends and what are your projections for 2016?

The number of people using the airport has been steadily rising since 2009, actually growing by 2.5 times in six years. Indeed, air travel has never been so popular in Lithuania and the increased mobility of the country’s population has boosted both tourism and business traffic. Lithuania is also becoming better known in the international arena and this has led to an increase in visitors from abroad. The addition of more new carriers and destinations this year will further expand the opportunities for travellers, so we expect this growth to continue for the foreseeable future.

What are the biggest opportunities/challenges you face today?

Striving to provide high quality services at the same time as accommodating continuously rising passenger numbers in facilities that we are close to outgrowing, is the biggest challenge. The design capacity of Vilnius Airport is 3.5 million and we expect to handle this in 2016. So, we have lots of work to do to find ways of prolonging the life of our existing infrastructure.

44

AIRPORT WORLD/APRIL-MAY 2016

Arguably, our biggest challenge is coming up in the summer of 2017 when we are due to carry out rehabilitation and reconstruction work on the airport’s runway. This will mean that Vilnius is unable to handle any aircraft movements between July 14 and August 18, when the airlines will have to temporarily switch their operations to our other airports at Kaunas or Palanga.

It is no secret that all our airports, but in particular Vilnius because it is operating close to capacity, are in need of investment to enhance their facilities to allow them to grow and fulfil their respective potential. For this reason we are actively looking to attract private investors to bid for the concession to operate Vilnius, Kaunas and Palanga airports.

We are carefully preparing the tender now with the priority being the identification of competent partners. This is a big challenge.

Did the airport make money a profit in your last financial year and, if possible, can you tell our readers more about your main sources of income today?

We don‘t have audited numbers from 2015 yet, but looking at the EBITDA margin, it is 15% bigger than in 2014. Aero revenues account for approximately 60% of the income of Lithuanian Airports [Vilnius, Kaunas and Palanga] and nonaeronautical for around 40%. One of the main sources of non-aeronautical revenues is rental.

REGIONAL AIRPORTS

Crowd pleaser: Vilnius Airport hosted a party late last year to mark the 100th anniversary of Lithuania’s airport system.

Do you think Europe’s hub airports face the same challenges?

We may not be a big hub airport but we serve a big region in Eastern Europe and believe that Vilnius is the chosen gateway of not only Lithuanians but people from certain parts of Poland, Belarus and Latvia as well. In my opinion, all airports face similar challenges. We all want good route networks that allow passengers to get to their destinations as quickly and conveniently as possible.

What are you doing to boost non-aeronautical revenues and is this task more difficult for you because of your size?

Non-aeronautical activities and their development are really important for us. Last year we asked our passengers about services in the airport and their expressed wishes were for new services, shopping and dining locations. Now we have quite a diversity of these locations but we are still planning to introduce more to meet our passengers’ expectations.

Do you think that local and national governments appreciate the importance of aviation and are supportive of it?

Yes, absolutely, in Lithuania. The government, for example, is very supportive of route development at Vilnius Airport and has introduced a number of incentives to encourage new air

services. Route development is vitally important for the local and national economy.

Why is it important that small, regional airports survive and prosper across the world?

All airports have a role to play and the appeal of many regional airports is that they offer a good opportunity for airlines to grow as they have the slot capacity rarely available at the bigger airports.

What impact have the low-cost carriers had on your airport?

All carriers are important to us. But in 2015, the low-cost carriers served 48% of all passengers at Vilnius Airport. This number increased by 6% over the last year.

How do you plan developing your airport over the next five to ten years?

Our future development plans include proposals for the construction of a brand new terminal and the reconstruction of the existing one, expanding the short and long-term car parks, and the addition of a new taxiway. We have also set ourselves quite high goals for customer service as we take the customer experience very seriously, too.

So, in five to ten years time, I see Vilnius Airport as being a fast growing, efficient and friendly airport.

AW

AIRPORT WORLD/APRIL-MAY 2016

45

NEW TECHNOLOGY

Remote control Remote towers will allow for safe and efficient air traffic services, potentially reducing the costs for air traffic services at airports by 30% to 40%, writes Avinor’s Jan Østby.

L

ast autumn, Norwegian airport operator and air navigation service provider, Avinor, announced pioneering plans to introduce remote tower solutions at 15 of its airports.

The move, which is now underway, is the largest commitment to remotely operated towers in the industry and aims to ensure the provision of safe and efficient operations at Norwegian airports for the forseeable future.

“Remote towers are an important focus area that offers great possibilities both for the Avinor Group and the Norwegian aviation industry,” says Dag Falk-Petersen, CEO of Avinor.

“The technology allows for safe and efficient operation of Norwegian airports, and will help us to maintain the extensive aviation services we have in Norway.”

We believe that their leading solution is better than comparable technology on the market today, and will be well suited for Norway’s demanding climatic conditions.

Kongsberg have used expertise from different industries to produce a unique sensor technology composed of newly developed and existing components that provide optical resolution at 360 degrees.

It is a seamless image where many of today’s challenges in re-creating such a large field of view have been solved using only one camera. The system also has additional features such as night capability using an infrared sensor.

Indra Navia has years of experience in delivering solutions to international air traffic management, including solutions for tower services for the world’s largest airports and leading ATM service providers.

Increasing efficiency

Safe operations

With remote towers, air traffic control services can be provided at several airports from the same location – a remote tower centre.

For many regional airports in Norway, traffic is limited, with long periodes with little or no traffic at all and this is a key reason why Avinor believes that centralising air traffic services allows for optimised staffing, increased efficiency and lower infrastructure investments.

In terms of staffing, the major potential for increased efficiency comes with the possibility for one operator to handle air traffic services at several airports simultaneously.

Investment in and maintenance of control towers are a major cost for airports, however, with remote towers, the construction and maintenance of traditional control towers will no longer be a requirement.

Instead, cameras and other sensor technology will be installed at a much lower cost – connected to a remote tower centre.

In total, with more efficient staffing and avoiding investments in air traffic control towers, remote towers can cut costs for air traffic services at airports by 30-40% per annum.

Every change in aviation is governed by strict safety regulations and, in line with this, Avinor and its partners will undertake a comprehensive safety analysis of the changes in its systems, procedures and working methods.

In addition, the technologies used for remote towers involves several solutions that provide tower staff with more information than they currently have in traditional towers.

Indeed, remote towers will only be introduced when it is absolutely confirmed and documented that the solution ensures safety levels equivalent to or better than the current solutions.

And Avinor is not alone in looking at the issue as remote tower operations have also been approved by the national civil aviation authorities in neighbouring Sweden, where Saab is working in collaboration with LFV, which has commissioned remote towers at a handful of airports.

Avinor is currently establishing its remote tower centre, and finalising the technical solutions for remote tower operations.

We expect to start remote tower operations during 2017.

AW

Cutting edge technology Kongsberg and Indra Navia will deliver a complete solution for remote controlled tower services for several airports from one control centre.

About the author Jan Østby is head of remote services at Avinor Air Navigation Services and can be contacted at remote@avinor.no

AIRPORT WORLD/APRIL-MAY 2016

47

RETAIL

Exciting times The award of the duty free concession for the new Istanbul Airport and investment and expansion elsewhere made 2015 memorable for duty free operator, Gebr Heinemann, but it wasn’t all plane sailing, reports Joe Bates.

G

ebr Heinemann has announced rising revenues and a new long-term extension to its duty free concession at Hamburg Airport.

The Hamburg based business and largest independent duty free retailer and distributor in the world generated a group turnover of €3.6 billion in its 2015 financial year – a rise of 13% on the previous year.

While the extension of its contract at its ‘home town’ airport means that it will operate the Heinemann Duty Free & Travel Value shops and three other concept stores at the German gateway until at least 2027.

Talking about the Hamburg extension, Raoul Spanger, executive director for retail at Gebr Heinemann, says: “We have a very trusting, friendly relationship with Hamburg Airport, which is based on profound mutual respect.

“After introducing our retail brand Heinemann Duty Free in 2008, we have frequently established new services, such as home delivery.

“We are delighted that we have now been able to agree an early extension of the contract with our home airport, Hamburg Airport, of eleven years. I would like to thank all our staff for their excellent work.”

Hamburg Airport CEO, Michael Eggenschwiler, says: “Heinemann has been at Hamburg Airport for over 22 years. The company makes travelling a true experience for our passengers, because for many people shopping in these attractive shops is a highlight when they take a flight.”

In terms of Heinemann’s performance in its 2015 financial year, co-owner, Claus Heinemann, described it as a “satisfying” and “exciting” year for the company in which retail activities accounted for around €2.8 billion of its revenues and the distribution side of the business for the remaining €800 million.

48

AIRPORT WORLD/APRIL-MAY 2016

Highlights included being awarded the duty free contract for Istanbul’s new mega hub, which co-owner Gunnar Heinemann notes was equivalent to winning five airport concessions because of its size and scope; the acquisition of a 60% stake in Amsterdam’s Schiphol Airport Retail; and expansion in Asia-Pacific.

Success in Asia-Pacific, reveals Gebr Heinemann, included the establishment of a new joint venture in Malaysia with Duty Free International, and the successful operation of around 7,000sqm of retail space at Sydney Airport, with more stores set to open in May. When fully open, it says its 10,000sqm Sydney Airport operation will be its biggest store and the largest single duty free outlet in the world.

Germany (16%), the rest of the European Union (33%), Europe’s non-EU countries (40%), Asia-Pacific (6%) and the rest of the world (5%) accounted for the group’s turnover by region.

Outside issues But don’t be fooled into thinking that it was all plane sailing for the duty free giant last year, as setbacks included a major decline in the Russian market and the continuing impact on its business of political instability and acts of terrorism across the globe.

Indeed, Gebr Heinemann’s operations in Egypt and Tunisia suffered a downturn last year, arguably the the worst affected airport from a Heinemann perspective being Sharm El Sheikh, which it says has gone from a busy gateway to virtually a ghost airport.

Executive director for retail, Raoul Spanger, however, insists that the company is not in the habit of pulling the plug when the going gets tough as it considers itself to be a long-term partner to airports.

RETAIL

The company is committed to transforming the duty free offering at Sydney Airport.

We are looking ahead with optimism and targeting growth of 10% this year “Our operation at Sharm El-Sheikh is almost non-existent today because there is hardly any business due to the traffic levels. In fact, we have lost 90% of our turnover here, so the situation is tough. We are hoping that flights will start again in the summer and turn things around,” he says.

He reveals that Heinemann and its concessionaire partner Atu Duty Free have also suffered financially in Tunisia where instead of anticipated 2015 revenues of €100 million they registered just €46 million.

“This just shows the fragility of the market,” adds Spanger. “One day everything is alright, and then he next day you get some news that makes it almost impossible to trade.”

Kay Spanger, the company’s executive director for purchasing and logistics, was nonetheless quick to point out that the fragility of the market is nothing new, citing the fire at Düsseldorf Airport in 1996 and the recent terrorist attack on Brussels Airport as an example of how things can literally change in an instant.

“We lost substantial amounts of money in Tunisia and Egypt last year and this is a concern, but we take the long-term view and hope that things improve before too long,” he says.

“You also have to remember that we invested a lot of money in these airports, so looking to get out of contracts at this stage is not really an option we would consider.”

In 2016, Turkey overtook Norway to become Heinemann’s biggest market, based on annual revenues of €631 million, the upturn from €560 million being largely attributed to the new Istanbul airport contract and the “strong performance” of Turkish Airlines.

Although revenues in Norway for the year increased by 3% in Norwegian Krone, fluctuating currency rates meant that in euro terms, Heinemann actually ended the year worse off than the year before with a turnover of €444 million compared to €458 million in 2016.

Hamburg Airport CEO, Michael Eggenschwiler (left), with Gebr Heinemann’s Raoul Spanger (right).

Russian market Reflecting on a 30% decline in turnover in Russia in 2015, Gebr Heinemann admitted that the Ukraine crisis, a 50% reduction in the value of the Russian ruble, a sharp drop in the oil price and the resultant inflation have led to people travelling and spending less.

“The commercial instability of the Russian market has hit its regional airports the hardest as the airlines appear to have decided not to fly from them anymore,” says Heinemann’s executive director for distribution, Peter Irion, noting that the results for the large airports in Saint Petersburg and Moscow are still good.

He reveals that Heinemann reported a rise in sales at both Moscow’s Sheremetyevo and Domodedovo airports in 2015, the latter despite Transaero’s bankruptcy and the decline in charter traffic to Egypt and Turkey.

“There is turbulence at the moment, but we do believe in Russia and see a positive outlook for the market for 2016 and the years to follow,” he says. “As a result, we will continue to invest in this region and expand our market share from the current 40% to 50%.”

The signing of a ten-year contract to exclusively operate the duty free shops at Moscow’s newly opened fourth gateway, Ramenskoye Airport, certainly proves this point.

Located 43km from Moscow and operated by Ramport Aero – a joint venture between Lithuania’s Avia Solutions Group and Russian state-owned corporation Rostec – the airport is expected to handle up to 1.9 million passengers in its first year of operations.

Looking ahead Looking to the future, Kay Spanger, notes that 2016 highlights will include the opening of the new outlets at Amsterdam Schiphol –the existing stores generated €88 million in sales in its first year – and the opening of Oslo’s new expanded terminal in September, which will allow Heinemann to open the world’s largest Arrivals duty free store at 4,400sqm and follow it up in December with the unveiling of a new 3,500sqm departures store.

Summing up, Claus Heinemann, says: “We are looking ahead AW with optimism and targeting growth of 10% this year.”

AIRPORT WORLD/APRIL-MAY 2016

49

RETAIL

That Riviera touch Portland Design’s director of environments, Lewis Allen, discusses the concepts behind the creation of the new ‘spirit of place’ inspired duty free offering at Nice Côte d’Azur Airport.

T

he design of the new walk-through retail offering in Nice Côte d’Azur Airport’s Terminal 1 embraces the opportunity to immerse shoppers in an experience that evokes the spirit of the French Riviera.

The store, operated by Lagardère Travel Retail, is uniquely designed for Nice so that it connects shoppers to what they already know and love about the Côte d’Azur.

The connection to the spirit of the Côte d’Azur region is achieved by creating experiences that are both literally and intuitively local such as store architecture that features the signature azure blue of the coastal waters; lighting that replicates the quality of sunlight; and programmed experiences that connect shoppers to the region’s cultural life and to the infectious “joie de vivre” that is a characteristic of the region’s seasonally vivacious events programme.

This combination of literal and intuitive experiences helps to move beyond the much celebrated ‘sense of place’ shopping experience to a more enigmatic ‘spirit of place’ experience.

Lagardère describes a ‘spirit of place’ shopping experience as an invigorating feeling of “je ne sais quoi”.

And this deeper experience is achieved by creating a shopper journey with multiple layers of sensory experiences, each one leveraging the local DNA of the Côte d’Azur, each pulling on its own local DNA to resonate a moment of local immersion.

The ‘spirit of place’ duty free shopping journey starts with the palm façade shopfront. This feature is formed using an abstracted pattern of palm fronds silhouetted against a blue background.

The abstraction of vernacular themes avoids creating a store design that is literally thematic. Today, shoppers prefer authentic experiences and whilst themed stores can be fun they can be judged as skin-deep imitations of what is ‘local’.

50

AIRPORT WORLD/APRIL-MAY 2016

Indeed, the palm façade announces a promenade through 10 category engagement experiences where each experience provides a vehicle to use the local DNA. Also, in a region famous for hosting world-class events and festivals, each experience provides shoppers with an opportunity to engage again with some of the big seasonal stories that attract them to the region.

In this way the experiences also help to culturally embed the store into the life of the region and provide opportunities for local co-creation and partnerships, whether commercial or cultural.

‘La Scéne’ is another feature that celebrates local events such as the Cannes Film Festival courtesy of audio visuals, interactive games and competitions with prize gifts.

The ‘art of the gift’ ribbon is a ceiling suspended feature and a key component for all Lagardère’s future duty-free stores. It serves as an intuitive wayfinding device to guide shoppers through the store and Nice is no exception, its ribbon’s colours of white and blue being customised for Nice Côte d’Azur Airport to reflect the region’s stories of azure blue and playful luxury.

Localising store components from an operator’s brand toolkit is a key way to avoid the déja-vu experience of many duty free stores whilst simultaneously maintaining the brand DNA of the operator.

As shoppers circulate through the store, the multi-sensory layers begin to build. In Fragonard’s ‘Le Jardin’ outlet the sounds of chirruping crickets on a sun-drenched summer afternoon serenade shoppers browsing this iconic brand’s range of Provencal products.

While the ‘Riviera Bar’ has been designed to evoke memories of the Côte d’Azur’s waterfront thanks to a projected seascape rippling the floor, the sound of waves and the refreshing bursts of ozone.

RETAIL

According to concessionaire, Aelia, the bar itself is designed to evoke the über chic glamour of the pristine white yachts that adorn the region’s coast.

Indeed, the region’s intoxicating day to night nightlife transition is conjured in the LED lighting that is programmed to reproduce the colour temperature and lumens of the region’s day parts.

In the Champagne category the airport’s ‘Champagne clock’ bursts into a short audio-visual celebration on the strike of the hour and LED screens explode with popping corks and bursting bubbles in a champagne moment of hedonistic celebration before all calms down to a gentle bubbly fizz.

As well as the various sensory delights of the region, the store features many of its products and its unique offers too. With the brand’s ‘here and nowhere else’ strategy, Lagardère’s vision is to celebrate local heroes, such as the locally and internationally renowned hair stylist Eric Zemmour who operates ‘Le Spa Express’ hair and nail spa.

Similarly celebrated is the brand Fragonard with a unique shop-in-shop featuring a fragrance personalisation experience.

Visual merchandising guidelines also play a part in building the spirit of place’experience. In the ‘Glamour et Tendances’, hotspot shoppers can get the latest look with an edited assortment of beauty products.

The Nice Côte d’Azur duty free store also evokes a spirit of place by combining a variety of experiences. Each on their own would not be enough to immerse shoppers in the region’s authentic spirit.

However, deployed together they create a journey that connects shoppers to the spirit of the region in multiple ways.

Multi-sensory experiences, the abstraction of local themes, local brands and products and a highly seasonal marketing programme all help to create a shopper journey that reveals the region’s spirit of place in a building sequence of layers.

Nevertheless, this toolbox of tactics is not enough to build a truly rich spirit of place. The key to immersing shoppers in a spirit of a place is to understand a defining feature of life today: Our connections and interactions with places are both real and virtual.

Our virtual familiarity with just about everywhere in the world has been built through all forms of media, from books to digital. It’s

a familiarity that has grown ever more intimate and dynamic through social media.

Media has extended our senses into virtually every corner of the world and we are constantly renewing our sense of the world on traditional platforms and new platforms such as Facebook, Twitter and Instagram.

In contrast with this virtual smôrgasbord of the senses, the real world can sometimes seem a blander and less charismatic place.

Airports reveal very little about where they are in the world if they are merchandised with cookie cutter retail concepts that appear as squatters inside cathedrals of glass, concrete, granite and steel.

Airports that have a sense of “placeless-ness” are at odds with the richly layered stories we are increasingly familiar with through our own personal experiences, both in the real and virtual worlds.

Shoppers today have a very rich understanding of places just about everywhere in the world. To attract shoppers in 2016 and beyond Largardère believes that its duty free stores must synthesise a spirit of place that is equally rich and more diverse with layers of experience.

As a result, its stores must be designed and programmed to be refreshed regularly and to play to all the senses. These strategies, used to design the Nice Côte d’Azur duty free store, will help to immerse shoppers in the enigmatically indefinable “je ne sais quoi”, and to feel the indefinable spirit of the region that they recognise and connect with as an attractive and distinctive place.

Indefinable? Perhaps not. At Portland we believe that a store with a true and powerfully immersive spirit of place is one where shoppers can emotionally connect with a place through many layers of in-store engagement.

Each layer in its own way is inspired by and projects local DNA. The layers create a shopper journey through a finely balanced collection of locally infused multi-sensory moments, cultures, products and behaviours.

When curated together, planned in the right sequence and designed with the right volume they will connect shoppers with that enchanting “quality without a name” shoppers know it when they feel it.

And judging by the excellent sales in the new Nice Côte d’Azur Airport’s new opened duty free outlets, they are very definitely feeling it.

AW

AIRPORT WORLD/APRIL-MAY 2016

51

4 levels of certification. 1 global programme.

135 accredited airports and counting .

.•.• ,,.

•• •• •• • •

aiq?ort carbon ace red itation

I Pl 'G I REDUCTION I OPTIMISATION I NEUTRALITY

Visit our interactive results website

www.airportC02.org

11 W' @AirportC02

BAGGAGE HANDLING NEWS

Treble top Airport World turns the spotlight on baggage handling projects at Keflavík, Moscow Sheremetyevo and Bahrain airports.

Northern flights Rapid traffic growth at Keflavík International Airport meant that a new baggage handling system was a priority to help the Icelandic gateway keep up with demand, and it once again chose Danish supplier Crisplant to deliver it.

Keflavík’s deputy terminal director, Guðmundur Daði Rúnarsson, says: “We have had a very good relationship with Crisplant over the years, are familiar with its system and knew that it was highly reliable – which as a hub was absolutely key for us.

“Then of course it had to be capable of the required throughput in the available space, be easily integrated with security screening and have excellent track and trace.

“Most importantly, there is the SCADA system that Crisplant provides, which gives the status of the BHS in real time, with alerts about any problems and how to solve them, plus a really good reporting tool that can give us a lot of essential information about the system.”

The system the airport decided on was the energy efficient LS-4000E tilt-tray sorter to replace the technology Crisplant installed during the airport’s 2007 renovations.

“We’ve also been focusing on check-in, so we’ve installed a lot of self-check-in kiosks and last year we opened a self-bag drop, all integrated into the Crisplant SCADA system. We plan on adding more of those this summer and during the coming years,” enthuses Rúnarsson.

Another component of a future upgrade that Rúnarsson is considering is an early bag storage facility. “It’s something we would like,” he says.

“There is a definite need. To be able to store bags for 24 hours at the airport would make it possible for airlines to tell their passengers that they don’t need to pick up their bags if they are simply staying for one day. That would be a huge incentive for passenger to stop over.”

The upturn in traffic at Keflavík has been driven by Icelandair’s decision to focus more on transatlantic services and positioning Keflavík as a hub or stop-over destination and, as a result, passenger numbers have soared from a post global financial crisis low of 1.7mpppa to 4.9 million last year.

And with an estimated 6.6 million set to use the airport in 2016 as transfer passengers now accounts for 43% of its annual traffic – rising from 27% in 2009 – the future certain looks bright for Iceland’s gateway to the world.

From Russia with love

Big deal in Bahrain

BEUMER Group has been awarded a contract for the design, fabrication, delivery, assembly, commissioning and implementation of a new automated baggage transportation system at Moscow Sheremetyevo Airport.

The new system will be installed in the Inter-terminal passage between the North and South terminal complexes.

The development of 40mppa capacity North Terminal Complex is one of the key projects of its master plan up for the period between now and 2030.

Almost two kilometres of new underground tunnels will connect the southern and northern airport areas and the labyrinth of passageways will be equipped with a BEUMER autover independent baggage carrier system.

“The development project for the North Terminal Complex at Sheremetyevo Airport represents a large-scale and unique project for Russian civil aviation,” explains Evgeny Tumel, deputy general director, chief engineer of Sheremetyevo Airport.

“The underground terminal-to-terminal tunnels under active runways will be the first of their kind in Russia. It will help establish Sheremetyevo as a major hub and will raise Moscow’s transit, tourist and business potential.”

The baggage handling system will integrate a 4.8km BEUMER autover system and include 187 autoca intelligent destination coded vehicles (DCVs).

According to BEUMER, it will be capable of accommodating up to 900 bags per hour in each direction and will be virtually maintenance free. Installation of the new baggage handling system is scheduled to start in February 2017.

Vanderlande has been commissioned to supply a state-of-the-art baggage handling system for Bahrain International Airport (BIA).

The agreement is for the design, manufacture and installation of a system capable of processing 4,700 bags per hour as part of Bahrian’s Airport Modernisation Program (AMP).

According to the gateway, the project is expected to revitalise much of the potential in Bahrain and the northern Gulf region’s aviation industry.

The system will feature an early bag store with capacity for at least 600 items of luggage and eight reclaim belts.

BAC CEO, Mohamed Yousif Al-Binfalah, said: “We look forward to working hand in hand with Vanderlande to deliver a state of the art system which should fulfill our vision to create an exceptional passenger experience.”

The planned upgrade of the airport includes a new terminal that will raise the gateway’s AW capacity to 14mppa.

AIRPORT WORLD/APRIL-MAY 2016

53

PROJECT WATCH

Saõ Paulo–Guarulhos International Airport Saõ Paulo gateway’s new Terminal 2 on schedule to open as planned at the end of 2016. project details Location: Saõ Paulo, Brazil Important developments: Creation of new Terminal 2 Scheduled completion: December 2016

T

he $50 million retrofit and transformation of Saõ Paulo–Guarulhos International Airport’s former terminals 1 and 2 into a single, new-look passenger complex is taking shape, with just under eight months left to go on the project.

The creation of a new Terminal 2 from the former facilities will equip the gateway with some of the most modern and passenger friendly airport facilities in Brazil, including the new 192,000sqm Terminal 3 opened in 2014.

According to the airport, the desire to increase its operational capacity; offer more comfort and convenience to passengers; ensure faster boarding and arrival procedures; and improved retail and F&B facilities – the size of the shopping area will double – are the key drivers behind the upgrade.

Architecturally, Saõ Paulo–Guarulhos – which is also known as GRU Airport following a 2012 rebrand – claims that its new Terminal 2 will provide “ample spaces and lighting and a more modern look” with expanded check-in, baggage claim, and boarding and arrival areas.

It will also feature a single, centralised security area for the screening of all passengers and cabin baggage.

The concessions layout for T2 will include the construction of ‘GRU Avenue’, a dedicated 1,750 square metre airside area for around 20 shops, restaurants and bars with views of the airfield. In addition, the terminal will also have a mezzanine level landside food court.

GRU Airport’s commercial team supported by Austria’s Airport Consulting Vienna (ACV) conducted the implementation study for the new concessions area, which is expected to welcome around 25 million passengers per annum.

ACV has also identified the need for two additional stores selling souvenirs, gifts, clothing

and accessories in the boarding pier access hall, shortly after the security checkpoint.

The airport reveals that future contracts for this new area will reflect its “new business strategy”, the key to which is the introduction of a mix of local and international outlets to ensure a portfolio of market-recognised brands.

“Our goal is to increase the number of commercial establishments and, at the same time, increase the scale of our commercial contracts by negotiating directly with the best known brands in each retail segment,” explains GRU Airport’s CEO, Gustavo Figueiredo.

Figueiredo notes that the number of retail/F&B outlets at the airport has increased from 102 to 234 since Guarulhos International Airport SA took over responsibility for operating the gateway in June 2012.

As a result, non-aeronautical revenues now account for 51% of the airport’s income as opposed to 35% just four years ago.

Brazil’s busiest gateway needs the new terminal to keep pace with soaring traffic demand, which has more than trebled over the last decade from 12.9mppa in 2004 to 39.5 million in 2014.

The airport has appointed Brazil’s Fernandes Arquitetos Associados in partnership with EBEI Engenharia to spearhead the T2 project.

Saguez & Partners together with the Invepar Group in collaboration with ADPI will oversee the planning and design of the entire project, including the master plan and the creation and preliminary designs for retail areas.

The airport says that the main goal is to make the new Terminal 2 – essentially created by retrofitting two 30 year old buildings – achieve close to the same standards of service offered by the airport’s new showpiece T3, which it notes was inspired by the world’s best airports and boasts innovative technologies and equipment.

Principal companies involved: Fernandes Arquitetos Associados; EBEI Engenharia; Saguez & Rocha; Invepar; Airport Consulting Vienna (ACV), Aéroports de Paris Engineering (ADPI) Total investment: $50 million

Creative solutions being employed by the design team to help it try achieve this lofty ambition are said to include better lighting and the use of materials that help project an ambiance of “modernity, “coziness, quality and simplicity”; the use of ceilings, floors and colours to create natural flows through T2; and the concentration of F&B outlets to form true food courts.

Fernandes Arquitetos Associados believes that the use of natural light, water and vegetation together with unobstructed views will also help make T2 a “peaceful environment”.

The use of natural lighting to help control, heat up and cool interior temperatures and other ‘bioclimatic’ features such as the use of energy saving lamps, occupancy sensors and photocells should also ensure that T2 is one of the most energy efficient airport terminals in Latin America.

In readiness for T2’s opening upon completion of the second phase of its development last December, the airport’s existing Terminal 4 became the airport’s new Terminal 1.

Concessionaire, Guarulhos International Airport SA, counts the Invepar Group, Airports Company South Africa (ACSA) and Brazil’s state-owned airport operator, AW Infraero, as shareholders.

AIRPORT WORLD/APRIL-MAY 2016

55

RUNNING WBP NEWS HEAD

The latest news from ACI’s World Business Partners

Everbridge Location: Burlington, MA, USA Contact: Michael Cardarelli, director, transportation practice E: michael.cardarelli@everbridge.com W: www.everbridge.com Everbridge is one of the leading providers of unified critical communications solutions to airports, enabling clients to automate their communication plans, speed response and eliminate human error.

Everbridge has the ability to deliver and verify messages in near real-time to more than 100 different communication devices, in over 200 countries and territories, in multiple languages all simultaneously.

Milestone delivery for Oshkosh

Quintiq

Oshkosh Airport Products has delivered and placed its 300th new generation Striker aircraft rescue and fire fighting (ARFF) vehicle into service at Québec City Jean Lesage International Airport in Quebec, Canada.

Vice-president operations at the airport, Serge St-Laurent, says: “Our overriding objectives are safety and to provide firefighters with the best possible equipment on the market. We had to renew our ARFF fleet and the Striker was the very best option for both our fire chief and chief mechanic.”

According to Oshkosh, the Striker’s 6x6 axle configuration with Oshkosh TAK-4 all wheel and fully independent suspension and an Allison seven-speed electronic automatic transmission offers a smooth ride and exceptional off-road capabilities. The vehicle’s firefighting system includes an 11,356-litre (3,000-gallon) water tank, a 1590-litre (420-gallon) foam cell, and a 249-kilogramme (550-pound) dry chemical system for multiple agent fire suppression capabilities.

“One of our biggest challenges is the climate; when you combine temperature and snowfall we have the toughest winter weather of all major airports in Canada,” adds St-Laurent.

“During the purchase process, we went through the Striker vehicles specs in meticulous detail – especially those that relate to handling extreme cold weather. We have yet to operate the Striker under those conditions but, from what we’ve seen, we’re very satisfied.”

Food for thought

Düsseldorf Airport has awarded F&B provider, SSP, a seven-year contract to operate eight food and beverage outlets as well as a state-of-the-art conference centre.

The contract is valued at £90 million and will pave the way for the opening of the first Jamie Oliver concepts at a German airport between 2017 and 2019 as well as a new offering from by German TV chef, Tim Mälzer, called Hausmann’s.

Locally renowned names including French-inspired café and patisserie Epi, and Italian family restaurant, 4 Cani, will also feature as well as international fast food brand KFC. The brand mix will be completed by a number of bespoke concepts showcasing the cuisine and culture of the Düsseldorf area.

Airport managing director, Thomas Schnalke, says: “With SSP as a main F&B tenant going forward, we are strengthening our reputation as an airport where passengers can be entertained on their journey.”

Welcome aboard!

Barbara Dalibard will be the next CEO of SITA, succeeding the long-serving Francesco Violante on July 1.

She joins from French rail operator SNCF, a Fortune 500 company, where she served as CEO of SNCF Voyageurs.

Omar Jefri, chair of the SITA Board and executive vice president corporate management & regulations at Saudi Arabian Airlines said: “Barbara Dalibard has the ideal combination of executive management experience and leadership to strengthen the role of SITA in the air transport community and we are looking forward to working with her.

“She joins SITA, which is well positioned for the future, after the strong leadership of Francesco Violante who over the past decade has dramatically transformed the organisation merging previously separate entities into a single company that delivers award winning IT solutions to the industry, touching every aspect of the travel journey.”

Location: Düsseldorf, Germany Contact: Rick Retzer, senior account manager E: quintiq.aviation@3ds.com W: www.quintiq.com The Quintiq operations planning and optimisation platform enables aviation industry players from airports and airlines to ANSPs and ground service providers to make the most efficient decisions about the use of their resources. No matter which planning horizon, the software provides full visibility of company processes and constraints and empowers planners to quickly compare different scenarios; make smart allocation decisions; deal with disruptions; and handle last-minute schedule changes.

ThyssenKrupp Airport Systems Location: Baiña – Mieres, Spain Contact: Penelope Trogisch E: penelope.trogisch@thyssenkrupp.com W: www.thyssenkrupp-airports.com ThyssenKrupp Elevator (ES/PBB) GmbH is one of the leading escalators and passenger boarding bridges companies in the world, providing effective and efficient solutions worldwide. Our activities are focused on a wide range of services, such as design, sales, manufacturing and after-sales (only for PBBs) of escalators, moving walks, TurboTrack and passenger boarding bridges.

AIRPORT WORLD/APRIL-MAY 2016

AW

57

HUMAN RESOURCES

PEOPLE

matters The toxic triangle Dr Richard Plenty and Terri Morrissey provide their thoughts on: The dark side of performance management on wellbeing at work.

H

ow many of us have worked in organisations where workloads are high and we feel under continuous pressure to perform, yet there seems to be little consideration of us as people?

Many organisations faced with pressures from their shareholders for quick results end up by default with an extreme performance culture. Extremely ambitious non-negotiable targets are set from the top, with high rewards for success and correspondingly high penalties for failure.

Across the organisation there are tight deadlines and relentless time pressures. Immediate results are all that seem to matter.

The best leaders find ways to use these pressures positively to stimulate, energise and inspire those who work with them. They are focused and driven to achieve results, but at the same time respect their people and take their personal circumstances into account. They listen to their staff knowing this will help get sustainable results.

Unfortunately, not all leaders are that enlightened. Some people are primarily attracted to the power and status associated with leadership roles. The pressures of an ‘extreme performance culture’ to get immediate results can reinforce any tendencies they have to be arrogant, manipulative, and bullying. It can also encourage them to cut corners and engage in dubious business practices.

This is the dark side of performance management. In circumstances like these, many employees may not dare to challenge

58

or speak out. Some feel that they don’t have the power to effect change. Some may be afraid, preferring to keep their heads down for career reasons. Others will have low self-esteem.

And there are always those who secretly admire their dysfunctional leaders for appearing certain and confident – and go along with them whatever they say.

The ‘toxic triangle’ of susceptible followers, over-the top leadership and extreme performance culture is a very dangerous combination. It leads to stress, burnout, inflexibility, lack of innovation, and suboptimal, non-sustainable performance. Enron provides a classic example where it ultimately resulted in the failure of an entire corporation.

How can it be avoided? All three sides of the toxic triangle need to be addressed: • Develop an ethical culture where how things are done matters as well as what is achieved. Use balanced scorecards to measure performance and encourage open dialogue.

• Keep leaders’ feet on the ground.

Watch out for signs of hubristic behaviour and ensure leaders are held to account. Ensure governance checks and balances are in place.

• Develop courageous followers.

Encourage people to be brave, forthright and speak out where necessary – and develop their mental toughness and resilience.

As Anatole France said: “It is the certainty that they possess the truth that makes men cruel.”

AIRPORT WORLD/APRIL-MAY 2016

ACI World has announced the appointment of Stefano Baronci as director of economics and programme development. He joins from IATA and counts serving as a senior policy manager for ACI Europe and secretary general of Italian airport association, Assaeroporti, among his previous positions.

Former chief strategy officer of the MAG Group and managing director of Manchester Airport, Andrew Cowan, is the new CEO of London Stansted Airport. Going in the other direction is Andrew Harrison who has left the role of managing director of Stansted to replace Cowan as chief strategy officer at MAG, based in Manchester.

The Port of Seattle has made two key appointments – Dave Soike has been promoted from aviation director of facilities and capital programs to the recently created position of chief operating officer (COO) and Ron Peck has been taken on as tourism director. Peck’s responsibilities include finding “innovative ways” of boosting visitor numbers.

According to an article in the Philadelphia Inquirer, new Philadelphia International Airport CEO, Rochelle ‘Chellie’ Cameron, has three priorities –improving customer service and the passenger experience, making best use of the airport’s existing facilities, and continuing with the airport expansion plan.

Martin Langaas is joining Avinor as its new manager for cargo development on June 1. He currently works in project and development manager position with Collicare.

Elsewhere, Leslie Fella has been hired as the new marketing and air service director at Evansville Regional Airport in Vanderburgh County, Indiana.

About the authors Dr Richard Plenty is managing director of This Is… and delivers ACI’s ‘Airport Human Resources’ training.

Terri Morrissey is chairperson of This Is… and CEO of the Psychological Society of Ireland.

Contact them through info@thisis.eu

AW