Airport World, Issue 2, 2022 by Airport World

Theme: Non-aeronautical revenues Airport profile: Istanbul Grand Airport World exclusive: Aerotropolis 4.0 Plus: ACI Africa’s Regional Conference

In the spotlight: Non-aeronautical revenues Volume 27 – Issue 2, 2022 www.aci.aero

OPINION

Airport World Editor Joe Bates +44 (0)1276 476582 joe@airport-world.com Design, Layout & Production Mark Draper +44 (0)208 707 2743 mark@airport-world.com Sales Directors Jonathan Lee +44 (0)208 707 2743 jonathan@airport-world.com Jon Sissons +44 (0)208 707 2743 jon.sissons@airport-world.com Advertising Manager Andrew Hazell +44 (0)208 384 0206 andrewh@airport-world.com Subscriptions subscriptions@aviationmedia.aero Managing Director Jonathan Lee +44 (0)208 707 2743 jonathan@aviationmedia.aero

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The numbers game Airport World editor, Joe Bates, reflects on the latest traffic trends and the ‘non-aeronautical revenues’ theme of this issue.

t almost seems wrong to be talking about the growing momentum of aviation’s recovery from the global COVID pandemic as war rages in the Ukraine, but as the traffic news is largely positive, and we are the global publication of ‘the voice of the world’s airports’, it is something worth highlighting. But before we get to the latest traffic figures, let us quickly review ACI World’s recently released provisional traffic data for 2021, which confirms that global passenger numbers rose by 25% to 4.5 billion, although the total for the year is still 50% down on 2019. A combination of factors, which include a large domestic market, saw most major US airports bounce back strongly in 2021. These included Hartsfield-Jackson Atlanta (ATL) – which welcomed 75.7 million passengers to regain its status as the world’s busiest airport – while the performances of Dallas/Fort Worth (DFW), Denver (DEN), Chicago O’Hare (ORD), Los Angeles (LAX), Charlotte (CLT), Orlando (MCO) and Las Vegas (LAS) earned them a Top 10 ranking. Coming right up to date, in April 2022, a number of European and US airports started reporting their busiest daily and monthly traffic totals for two or three years, their throughput being boosted by the easing of international travel restrictions and, most recently, by the Easter holidays, although the much-publicised delays caused by staff shortages meant that many struggled to cope with the rising demand. Those reporting an upturn in traffic in March 2022 include Ontario International Airport in the US, which welcomed 4% more passengers during the month than it did in March 2019; London Heathrow in the UK, which enjoyed its highest monthly passenger numbers since the start

of the pandemic; and Spanish airport operator, AENA, which notes that passenger numbers across its network were back to 78% of 2019 levels. There is, of course, still a very long way to go until passenger numbers are back to pre-pandemic levels across the globe, particularly on international routes, but the upward trajectory in traffic gives grounds for optimism that better times lie ahead. It could be argued that events of the last few years have shown airports just how important non-aeronautical revenues are in terms of helping them balance the books and potentially help fund the development of new facilities and services. ACI World’s vice president of economics, Patrick Lucas, specifically addresses this topic in his lead feature in the ‘nonaeronautical revenues’ themed section of this issue of Airport World. The themed section also contains features about how airports can enhance their retail and F&B revenues; Zurich Airport’s new Circle leisure and business district; and the ever-evolving aerotropolis concept. Elsewhere in the issue, we report on the highlights of the recent ACI Africa Regional Conference and Exhibition in Mombasa; and have articles about airport art; embracing artificial intelligence; sustainability; and the benefits of creating outdoor spaces in airport terminals. We also hear from ACI World director general, Luis Felipe de Oliveira; discover the latest news from ACI’s World Business Partners; and celebrate the 50th edition of our popular ‘people matters’ column. Our lead airport feature is on Istanbul Airport (IST), which has arguably led Europe’s recovery from the global pandemic having been the busiest airport on the continent for the last two years.

AIRPORT WORLD/ISSUE 2, 2022

CONTENTS CONTENTS

ISSUE 2 Volume 27

In this issue 3

20 22

Opinion

Airport World editor, Joe Bates, reflects on the latest traffic trends and the ‘nonaeronautical revenues’ theme of this issue.

View from the top

ACI World director general, Luis Felipe de Oliveira, reflects on today’s tough economic environment and new guidance material designed to help airports boost their nonaeronautical revenue and activities.

Ahead of the curve

The opening of the world’s first airport lounge for young travellers and a new innovation programme ensure that 2022 has got off to a good start for Istanbul Airport, writes Joe Bates.

Diversify and grow

ACI World’s vice president of economics, Patrick Lucas, considers the importance of non-aeronautical revenue to airports and how diversifying activities can boost the bottom line.

Aerotropolis 4.0

Dr John Kasarda presents a new Aerotropolis model that integrates 4.0 economy sectors with smart technologies and sustainable development practices to create and capture value for airports and the regions they serve.

Zurich Airport’s new commercial district

We shine the spotlight on the Circle, an innovative new leisure and business district at Zurich Airport that opened its doors to the public in late 2020.

Digital steps to recovery

In the post-COVID recovery, airports have never faced such a difficult challenge to raise their non-aeronautical revenue performance, particularly across their vital commercial spaces, writes Kavanagh Communications’ John Matheson.

AIRPORT WORLD/ISSUE 2, 2022

CONTENTS

Director General Luis Felipe de Oliveira (Montréal, Canada) Chair Aimen Al Hosni (Muscat, Oman) Vice Chair Candace McGraw (Cincinnati, USA) Immediate Past Chair Martin Eurnekián (Buenos Aires, Argentina) Treasurer Candace McGraw (Cincinnati, USA) ACI WORLD GOVERNING BOARD DIRECTORS Africa (3) Emanuel Chaves (Maputo, Mozambique) Dewananda Chellen (Plaine Magnien, Mauritius) Capt Rabiu Hamisu Yadudu (Lagos, Nigeria)

25 28

32 34 36 39 40 42

Come shop with me

Fluent Commerce’s Rob Shaw suggests some potential solutions to create a seamless airport shopping experience.

Good to be back

The association’s 30th anniversary, recovering from COVID and smart technology were among the topics covered at ACI Africa’s Regional Conference and Exhibition in Kenya, writes strategy and business development director, Romesh Bhoyroo.

Airport galleries

Airport World reviews some of the latest new artwork to be showcased at airports across the globe.

Smart money

FetchyFox chief revenue officer, Joe Waller, explains why airport executives should invest in AI powered digital infrastructure.

Embracing the great outdoors

HOK’s Matt Needham and William Jenkinson discuss trends in designing outdoor spaces for US airport terminals.

Green champion

Airport World reports on the news that Christchurch Airport has become the world’s first climate positive gateway.

World Business Partners News

The latest news from ACI’s World Business Partners.

People matters

Terri Morrisey and Dr Richard Plenty reflect on the 50th edition of their popular human resources column.

Asia-Pacific (9) Aimen Al-Hosni (Muscat, Oman) Mohamed Yousif Al-Binfalah (Bahrain) Geoff Culbert (Sydney, Australia) SGK Kishore (Hyderabad, India) Fred Lam (Hong Kong) Seow Hiang Lee (Singapore) Nitinai Sirismatthakarn (Bangkok, Thailand) Akihiko Tamura (Tokyo, Japan) 1 Vacancy Europe (7) Daniel Burkard (Moscow, Russia) David Ciceo (Cluj-Napoca, Romania) Elena Mayoral Corcuera (Madrid, Spain) Javier Marin (Madrid, Spain) Yiannis Paraschis (Athens, Greece) Stefan Schulte (Frankfurt, Germany) Nazareno Ventola (Bologna, Italy) Latin America & Caribbean (3) Ezequiel Barrenechea (Guayaquil, Ecuador) Mónica Infante (Santo Domingo, Dominican Republic) Juan José Salmón (Lima, Peru) North America (6) Lew Bleiweis (Asheville, USA) Joyce Carter (Halifax, Canda) Deborah Flint (Toronto, Canada) Joseph Lopano (Tampa, USA) Candace McGraw (Cincinnati, USA) Sam Samaddar (Kelowna, Canada) Regional Advisers to the World Governing Board (10) Guilaume Branlat (Saint-Denis, Réunion) Chellie Cameron (Philadelphia, USA) Arnaud Feist (Brussels, Belgium) Bashir Ahmad Abdul Majid (Delhi, India) Mpumi Mpofu (Johannesburg, South Africa) Andrew O’Brian (Washington DC, USA) Augustin de Romanet (Paris, France) Jorge Rosillo (Galapagos, Ecuador) Brian Ryks (Minneapolis-St Paul, USA) 1 Vacancy WBP Observer Keith Thompson (Gensler) Correct as of May 2022

AIRPORT WORLD/ISSUE 2, 2022

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View from the top

ACI VIEWPOINT

t the heart of the aviation ecosystem, airports are multifaceted businesses, engaging in commercial relationships with airlines, service providers, concessionaires, and other firms to serve our passengers. In 2020 – the first year the airport business was affected by the pandemic – airports derived 47.6% of their revenue from aeronautical revenue (aircraft and passenger charges), 38.8% from non-aeronautical sources, and 13.5% from non-operating revenue (including COVID-19 related support measures). As many of you know, on average, airports rely on non-aeronautical revenues to strengthen their financial viability, and this was significantly affected by the pandemic. In 2020, the impact included retail concessions (-65% compared to 2019), car parking (-49% compared to 2019), and property and real estate (-12% compared to 2019). Recognising the important role of airport commercial revenues in the recovery and long-term sustainability of the industry and the entire aviation ecosystem, ACI has launched a new series of guidance material (found on the ACI store) designed to help airports strengthen their non-aeronautical revenues and activities. Topics covered include airport ground access services, concession agreements, duty free, digitalisation, food and beverage, and sustainability. The series kicked off earlier this year with the Optimal Integration of Airport Ground Access Services Handbook, and the Sustainable Airport Ground Access Policy Paper. Passengers are at the centre of our activities, and airports are continuously improving the customer experience at their facilities. Over the years, airports have become multi-modal transportation hubs striving to meet the needs of a diverse group of travellers who may have varying preferences when choosing how to get to and from an airport. Significant trends, such as the potential impact from COVID-19, increasing automation and technological connectivity, and the decarbonisation of industries, are resulting in the quick evolution of passenger expectations. These might include increased digitalisation, electric vehicle charging stations, the amount of available kerb space, number of public parking spaces, need for remote parking lots, and the infrastructure required for bicycle access, for instance. When managed correctly, airports can enhance the customer experience and their revenue by effectively working with their service providers while striving to provide an exceptional customer experience. Past ACI research has shown that, on average, when customer satisfaction increases by 1%, non-aeronautical revenue increases by 1.5% – a potentially greater return on investment than that generated by traffic increases or expansion of commercial space.

The pandemic has also highlighted the need for an alternative outlook on the way that commercial contracts between airports and concessionaires are structured to reflect the current and future uncertainty around passenger profiles and passenger traffic volumes. This is especially true for leases incorporating a Minimum Annual Guarantee (MAG) mechanism or fixed rent clauses. As such, ACI also launched timely guidance on airport concessions. The Airport Concession Agreements White Paper provides an overview of the pros and cons of fixed and variable MAGs respectively. As a compendium, the Business Models between Airport Operators and Concessionaires White Paper outlines the main types of contractual relationships to mutually benefit both parties, while also creating the best outcome for passengers. The publications have been developed by ACI World’s new Sub-Committee on Airports’ Non-Aeronautical Revenues and Activities (ANARA), which is linked to the ACI World Economics Standing Committee, made up of experts from member airports and World Business Partners from around the world. The committee’s objective is to investigate, analyse, and formulate strategies, policy recommendations, industry positions, and guidance material on how best to improve, facilitate, and diversify the range of non-aeronautical revenue sources for the benefit of the air transport ecosystem. In fact, ACI is calling on airport members, as well as World Business Partners who specialise in the field, to join ANARA and its new prospective working group on sustainability in the non-aeronautical business. Partnerships like these among various participants of the aviation ecosystem are crucial while travel is rebounding around the world and more countries are opening their borders. ANARA intends to cover all three areas of sustainability in the area of non-aeronautical revenues and activities, namely the environmental, social and governance aspect, and develop guidance material, best practices, and policy positions on the subject matter. Interested parties are invited to contact the secretary of ANARA, Carlos Charpenel, director of economic policy at ACI World at ccharpenel@aci.aero. Overall, as the airport business rebuilds, we have an opportunity to strengthen these key revenue streams by understanding current trends and anticipating those on the horizon. Not only does this include wider societal and technological shifts, but also a deeper understanding of the behaviours and needs of the passenger. AW

AIRPORT WORLD/ISSUE 2, 2022

AIRPORT REPORT: ISTANBUL

Ahead of the curve

The opening of the world’s first airport lounge for young travellers and a new innovation programme ensure that 2022 has got off to a good start for Istanbul Airport, writes Joe Bates.

stanbul Airport has been grabbing the headlines since its muchheralded opening in April 2019, and it continues to shine, leading Europe’s traffic recovery from the COVID-19 pandemic and unveiling two pioneering new initiatives in the first quarter of 2022. The airport – referred to as Istanbul Grand Airport by operator iGA Airport Operation (iGA) – handled 52 million passengers during the 10 months it was open in 2019, and was expected to welcome more than 90 million in 2020, when the global pandemic stopped international travel in its tracks. Nevertheless, Istanbul Airport (IST) handled a creditable 23 million passengers in 2020 to become Europe’s busiest gateway and almost certainly held on to the crown last year when it accommodated an impressive 37.1 million passengers. The figures ensure that it fared much better than most of the world’s leading international airports during the pandemic, although iGA CEO, Kadri Samsunlu, is quick to note that he hasn’t celebrated IST becoming Europe’s busiest airport due to the circumstances in which its new found status has been achieved. “I would very much prefer it if we could go back to how things were pre-COVID as the world needs a healthy, competitive aviation industry,” says Samsunlu. “I would say that we are doing OK. Our passenger numbers returned to around 70% of 2019 levels last year and air traffic movements were back to 75%-80% of what they were before the pandemic.

AIRPORT WORLD/ISSUE 2, 2022

“Planes are flying, and routes are returning, so our priority in the latter half of 2021 and this year is to boost load factors, which are about 10% down on where they used to be and what the airlines want. “The reason why we have handled bigger volumes of passengers compared to other European airports is because Turkey has a population of 85 million people and therefore a sizeable domestic market, which has come back very strongly for multiple reasons. “The reasons include the devaluation of the Turkish currency, which has made travelling aboard expensive. Visa difficulties have also led to more people holidaying at home than before, and this pent-up demand to travel domestically has been encouraged by a tight cap on domestic air fares that makes travelling within Turkey pretty cheap right now.” This year is expected to be even better for IST in terms of passenger numbers as more international routes and services resume and people from Europe, in particular, start to travel again for holidays and, to a lesser extent, on business. Indeed, iGA’s forecast for the year is for passenger numbers to reach 80% of pre-pandemic levels in the first half of 2022, and to return to 2019 levels in the second half of the year, paving the way for growth all the way from 2023. And ACI EUROPE traffic figures for February 2022 appear to support this prediction with IST doing the best out of the continent’s top five

AIRPORT REPORT: ISTANBUL

airports for passenger numbers with its throughput for the month just 26.6% down on February 2019. This compared to -43% at Paris CDG, -30% at Madrid Barajas, 47.8% at London Hearthrow and -45.1% at Amsterdam Schiphol. However, things are not quite so clear now due to the war in Ukraine, as Istanbul has historically been an air bridge to the rest of the world for many Russians and Ukrainians. What we do know for sure is that the latest data released by iGA shows that the airport handled a total of 122.9 million passengers and 852,900 flights between its April 6, 2019, opening and March 27, 2022, and its monthly passenger numbers are on the rise. Arguably, iGA’s confidence in the future has been demonstrated by two recent initiatives – the opening of what is believed to be the world’s first airport ‘Youth Lounge’ for passengers aged between 15-30; and the unveiling of iGA Hub, a development it describes as a new “centre for aviation initiatives”.

Youth Lounge

iGA promises that the new facility – located in the international departures level – will offer “an exclusive, relaxing, and enjoyable travel experience to young people” as it aims to transform the airport experience for younger passengers. According to the airport, the Youth Lounge offers “numerous possibilities to engage the attention of young people”, which include a PlayStation music system, giant screen projector, table soccer, free board games sponsored by D&R and, on occasion, live performances. It adds that the facility has been exclusively customised for Gen Z, a move that is said to ensure “reasonably priced snacks, a selection of coffees, and seating areas which maintain social distancing”. Istanbul Airport’s chief digital and commercial officer, Ersin Inankul, says: “Our primary goal for Istanbul Airport is to carry this unique

structure far beyond the point of just being a journey, and transforming our guests’ journeys into unforgettable experiences.”

iGA Hub programme

Samsunlu explains that that the airport has joined forces with ITU ARI Teknokent – the headquarters of entrepreneurship and innovation in Turkey – to launch iGA Hub, a programme designed to foster “the development of ideas and create value for the economy of the country”. Indeed, the iGA Hub programme aims to build an entrepreneurial environment for the development of projects in the civil aviation and airport management sector in the fields of smart airport, robotics, sustainability, digitalisation, IoT, security and mobility. More specifically, iGA is hoping to encourage initiatives that will deliver higher quality, quicker, and more cost-effective solutions for passengers, employees, business partners, and airport authorities. IST employees with innovative projects and technology-based business ideas are actively being encouraged to apply to take part in the programme, with each chosen initiative potentially able to share some of the TRY800,000 (€50,000) in prize money associated with the scheme. ITU ARI Teknokent’s Incubation Centre, which is ranked among the top five in the world, will benefit and support initiatives in areas such as training, mentorship, prototyping, networking, and investing. Samsunlu, who notes that the iGA Hub will effectively create a bridge between different interested stakeholders and entrepreneurs, has no doubt that technology is one of the key ways airports can increase their operational efficiency and global competitiveness. “With iGA Hub, we intend to contribute toward the future development of global civil aviation,” enthuses Samsunlu. “It is part of our journey on the road to becoming a worldwide brand, as the initiatives developed at Istanbul Airport will assist other industries as well as the aviation sector.”

AIRPORT WORLD/ISSUE 2, 2022

AIRPORT REPORT: ISTANBUL

Awards and achievements

The gateway, which replaced Istanbul Atatürk Airport as Turkey’s main hub, is certainly no stranger to awards and achievements. Its impressive $10.2 billion terminal building, for example, is LEED Gold certified by the US Green Build Council (USGBC), the award recognising the sustainability efforts that went into designing, constructing and operating it. Another achievement worthy of note included becoming the first gateway in the world to be accredited in ACI’s Airport Health Accreditation programme. Samsunlu is also proud of IST winning the Best Airport in Europe Award from ACI EUROPE for the 40mppa plus category in last year’s annual awards programme. The gateway also received an ‘Accessible Airport’ award from ACI EUROPE. And far from resting on its laurels, he promises that the awards will only serve to motivate IST to do even better in the future, and hopefully, continue to “inspire the industry”. From an operational perspective, Istanbul Airport opened its fifth runway and third independent parallel runway in June 2020, meaning that it is now capable of handling up to 120 aircraft movements per hour. The new CAT III runway – located east of the terminal – has also helped reduced domestic taxi times by approximately 50%, landing times by four minutes and average take-off times by seven minutes.

Sustainability

Samsunlu notes that iGA was three months ahead of the Turkish government in endorsing the Paris Agreement on Climate Change when, in August 2021 “with strong encouragement” from ACI EUROPE, it announced its commitment to become a net-zero carbon emissions airport by 2050. He admits that the “inherent advantages” of the airport’s modern, low-emissions LEED Gold certified terminal building will play a key role in helping it achieve the Net Zero 2050 goal, as will a host of initiatives to maximise efficiency on the airfield and across the airport campus. Istanbul Airport’s Sustainability Report for 2020 also outlines plans to plant 1.2 million trees over the next five years, which is equivalent to the size of creating a 5,000-hectare forest.

AIRPORT WORLD/ISSUE 2, 2022

Samsunlu adds that IST currently recycles 40% of its solid waste and only uses recycled water to irrigate landscaped areas across the airport’s huge 42 million square metre site. The airport is also in the process of installing solar canopies in its car parks and, longer term, is expected to build solar power farms in more remote areas of the airport site. “Sustainability has always been an important guide for us in all our steps from design and construction to operation,” says Samsunlu. “We are shaping our works in line with the UN’s Sustainable Development Goals. We respect the planet we live in, we act with a sense of responsibility towards future generations, and we are aware of the importance of responsible consumption and management. “The sustainable and efficient management of resources has become an inevitable necessity in today’s world.”

Turkish Airlines

Like all major hubs, IST has benefitted from having a strong airline as its home-carrier. In its case, it is Turkish Airlines, which has grown to become a major force in recent years, serving more non-stop destinations from a single airport than any other airline in the world. Indeed, Turkey’s national flag carrier traditionally accounts for around 80% of all passengers passing through the airport and for 98% of all connecting traffic. Pre-COVID, it operated non-stop services to 326 cities in 127 countries across the globe from Istanbul, with its route network including 21 cities in the US, 116 in Europe, 36 in the Middle East, 60 in Africa and 43 in Asia-Pacific as well as 50 in Turkey. Turkish Airlines is also a growing presence in the movement of air cargo, boasting 35 freighter aircraft in its fleet, which in addition to bellyhold space on passenger flights, has led to it becoming the fifth biggest cargo airline in the world excluding integrators. With these figures in mind, is it fair to say that Turkish Airlines will play a huge part in IST’s recovery from COVID-19 and future success? Samsunlu says: “They are the national flag carrier of Turkey, our hub carrier and biggest airline, so they are extremely important to the success of Istanbul Grand Airport. “Going forward, we hope to work even more closely with them, particularly when it comes to sharing data, as there are huge operational and monetary benefits to be gained from greater co-operation.” AW

SPECIAL REPORT: NON-AERONAUTICAL REVENUES

Diversify and grow

ACI World’s vice president of economics, Patrick Lucas, considers the importance of nonaeronautical revenue to airports and how diversifying activities can boost the bottom line.

rom a bare-bones perspective, aeronautical and non-aeronautical activity provide airports with their two main sources of revenue, with the latter significantly growing in importance over the past few decades as airports have become more commercially aware and developed the non-aviation related side of their businesses. Aeronautical activity has historically accounted for the bulk of airport revenue across the globe. Indeed, during pre-pandemic times (2019), aeronautical income typically accounted for 54% of all revenues and non-aeronautical activities for 40%. However, many larger Asian and Middle Eastern airports with high levels of international passenger traffic have more than 50% of their revenues attributed to non-aero revenues prior to the pandemic. As we all know, aeronautical revenue is based on charges levied on passengers, aircraft, security and for terminal rentals, and non-aeronautical income is essentially revenue generated from retail concessions, duty free, car parking, real estate income, and food and beverage, among others. Since airports are businesses in their-own-right, diversifying their portfolio of activities – beyond the provision of infrastructure to airlines – by offering passengers, customers and local business communities a wide range of services, is a key axiom in this endeavour. Consequently, revenue sources on the commercial side of the airport business (i.e., non-aeronautical revenues) tend to be more diverse than traditional aeronautical revenue streams. In normal times, these non-aeronautical revenues constitute a vital component of an airport’s income statement and of its resulting bottom line. Such sources of revenue also tend to generate higher net profit margins than aeronautical revenues. Not only do non-aeronautical sources of revenue provide diversification of airport income streams but they also serve as an additional cushion during economic downturns. This is true for most shocks, but the scale of the COVID-19 pandemic and resulting travel restrictions made the COVID-19 outbreak a crisis like no other. Non-aeronautical revenue may be derived from rents charged to concessionaires offering a wide range of services to passengers, including car parks within the airport boundary, retail, banking, advertising, and car rental facilities on the airport site. It also includes revenue from office and building accommodations on airport land in the form of leases. Other minor sources of nonaeronautical revenue may include various charges, such as those for third-party employee security passes, pass-through charges for utilities consumption or access charges for public transport operators. All sources of non-aeronautical revenues understandably decreased in 2020 compared with 2019. Sources directly affected by passenger volumes suffered the most. Retail concessions (-65.2%), aviation catering services (-64.1%), food and beverage (-53.1%), and car parking (-48.9%) saw the most severe declines in revenues in 2020. Property and real estate revenues (-12.0%) were the most resilient with the lowest decline (see Chart 1).

AIRPORT WORLD/ISSUE 2, 2022

Chart 1: Year over year % change in selected non-aeronautical revenues (2020/2019)

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Source: ACI 2022 Airport Key Performance Indicators.

Chart 2 provides the global distributional breakdown of nonaeronautical revenue by source. Though retail concessions revenue was the largest source of non-aeronautical revenue for airports in 2019 (26.4%), the significant drop in passenger traffic brought down its share by almost 10 percentage points in 2020 to 16.8% of the total nonaeronautical revenue, only the third largest source. Meanwhile, with greater immunity from the traffic decline – property revenue/rent – recorded the biggest share in non-aeronautical revenue in 2020, up 9.7 percentage points, reaching 24.9%. The second largest source of non-aeronautical revenue was car parking with a 19.1% share in 2020.

Minimising the impact of traffic risk through revenue diversification

A long-standing principle of financial portfolio management always aims to minimise downside risk through diversification. This rings true especially in light of the lessons learned from the pandemic. With many revenue sources directly linked to passenger throughput, airport operators are looking at ways to diversify their revenue streams. One area is related to the existing real estate and property assets that airports occupy that are unrelated to the travelling public. While airports are an integral part of the aviation ecosystem, they are also strategic partners in the local communities and cities they serve. Airport real estate is very much linked to the Airport Cities concept. Thus, real estate can be commercially developed in various forms – offices, hotels, entertainment and conference centres, shopping outlets and cargo/logistics facilities are just a few among an array of applications. The development of commercial uses aimed at enhancing urban mobility and achieving sustainability targets – Electric Vertical Take-off and Landing (eVTOL) – is also growing in importance, especially in jurisdictions where ground access to airports is limited by congestion.

SPECIAL REPORT: NON-AERONAUTICAL REVENUES Chart 2: Distribution of non-aeronautical revenue by source (2020 vs. 2019)

**Car parking revenue includes revenue from airport-operated parking lots and car parking concessions revenue. ***Other non-aeronautical revenue includes revenue from other unspecified concessions, revenue from other unspecified activities. undertaken by an airport and other unspecified non-aeronautical activities. N.B. The distribution excludes ground handling concession revenue Source: ACI 2022 Airport Key Performance Indicators

Depending on the circumstance, airports may run such facilities and activities themselves or they may have a fixed lease with different service providers. A fixed lease may also be independent of the number of customers that are attracted to those respective businesses. The main thinking is that the structure of these revenue sources tend to be shielded from the traditional aeronautical businesses linked to airport passenger traffic.

Enhancing customer experience to boost revenues

Many airport operators are moving towards the experiential philosophy to develop authentic customer experiences. This could be linked to a brand or service at the airport or the cultural happenings where the airport is located. With non-aeronautical revenues being linked primarily to passenger traffic historically, previous research has shown that an increase of 1% in the global passenger satisfaction mean, as defined by the Airport Service Quality (ASQ) Survey, generates on average a 1.5% growth in non-aeronautical revenue in the broadest terms. In other words, creating a seamless and memorable experience for passengers is also linked to a more than proportional increase in revenues and propensity to spend. Wider use and deployment of digital technologies and e-commerce platforms that allow passengers to customise their journey are fundamental in developing non-aeronautical revenue streams by making it easy to make transactions before even entering an airport. The use of advanced processing has definitely sped up amidst the pandemic permitting smoother processes. Leveraging biometrics, big data, customs controls, baggage handling, and tracking has allowed airports and their partners to create a seamless journey for passengers and to minimise bottlenecks at various checkpoints. Thus, interactive and collaborative decision making allows all partners, including airport operators, to benefit from potential revenue gains by focusing on passenger needs.

Policy levers that broaden consumer choice – on-arrival duty and tax-free sales at airports

Enhancing customer experience also means expanding customer choice. Fostering the development of on-arrival duty and tax-free sales at airports is an opportunity to continue solidifying retail concession revenues, to diversify activities, and to broaden the scope of activities that duty and tax-free operators can undertake at airports. Airport duty and tax-free shopping on arrival is now an established practice on most continents across the globe and is especially prevalent in the Asia-Pacific, Latin America-Caribbean and Middle East regions, as well as in many European countries that are not part of the European Union (EU). More than 45 countries have already instituted the concept of on-arrival duty and tax-free shopping, including some of the largest aviation markets in the world – Australia, Brazil, China, Japan, India, Indonesia, Thailand, Turkey, and the United Arab Emirates. However, European and North American jurisdictions have been slow in embracing the concept. Duty and tax-free shopping on arrival will require legislative elements to be amended to bring airports in these regions in line with global industry practice. For instance, in the context of the EU, changes to EU legislation should be considered to facilitate this form of commerce — namely, the Excise Duty and VAT Directives. Purchases at arrivals duty and tax-free have minimal impact on domestic sales of products, as they merely substitute for products that would have been bought at the airport of departure. Subsequently, there is minimal impact on government tax revenue, and no increase in the number of products entering the market as travellers’ duty-free allowances remain the same for on-arrival duty and tax-free at airports in a given jurisdiction. Duty-free on arrival will not in any way impact passengers’ right to purchase on departure, as they will simply have the choice to either buy on departure or arrival. That said, the spend propensity increases. Experience from across the globe has shown that duty-free on arrival can improve spend per passenger by 20-30% on average. In summary, there are number of opportunities that airport operators and their partners could seize to make their businesses more resilient to a downturn. This frequently translates into revenue diversification in areas beyond the traditional aeronautical sources. There are also important benefits that governments need to consider in the context of reforming certain tax legislation – facilitating on-arrival duty and tax-free is a means to not only support airports and airport retailers in the recovery period, but it also ensures a multiplier effect through wealth and job creation across local communities from such expanded operations.

For more information:

You can learn more about ACI World’s guidance and other resources in the area of non-aeronautical revenue and activities by visiting the ACI Store online. The 2022 edition of the ACI Airport Economics Report presents the first in-depth global analysis of how the pandemic has affected airport industry revenues (aeronautical and non-aeronautical) by source, costs (operating and capital), and related trends across the globe and over time. The 2022 Airport Key Performance Indicators provide insight into how the pandemic has affected areas such as financial and employee performance, fixed-asset productivity, and airport operations.

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Aerotropolis 4.0

he planning and development of aerotropolises worldwide is changing. This change reflects a pivotal role that governments and the private sector envision them playing in the emerging 4.0 economy where R&D, rapidly advancing IT and automation, and continuing globalisation are interacting to spawn new generation industries and business services that rely extensively on digitisation and rapid long-distance flows of people, products, information, ideas, and capital. The result is a modification in the mix of businesses and industries being recruited to create modern economic muscle for the aerotropolis along with much greater emphasis on developing the institutional, physical, social, and technological environments that will attract 4.0 firms and their talented workforces.

Basic aerotropolis form and function

The aerotropolis has traditionally been defined as an urban economic region whose infrastructure, land use, and economy are centered on a major airport (see www.aerotropolis.com). Spatially and operationally, it consists of: (1) the airport’s aeronautical, logistics and commercial facilities anchoring a multimodal, multi-functional airport city at its core; and (2) outlying corridors and clusters of aviation-oriented businesses and industries that feed off of each other and their accessibility to the airport and its connecting surface transportation infrastructure. Aviation-oriented commercial corridors and industrial clusters can be observed up to 30 kilometres from the largest air gateways with some airport economic impacts felt as far as 100 kilometres away. Because airport cities are often confined to airport property, they cover much smaller territory than the expansive aerotropolis. They also usually operate under a single administrative organisation with authority over both aeronautical and commercial facility development. These two features allow airport cities to be: (a) comprehensively planned and architecturally themed; (b) developed and managed to maximise benefits to the airport owners, operators, commercial investors and users; and (c) supported by an appropriate business model to be profitable. For an increasing number of larger gateway airports, commercial (non-aeronautical) revenues constitute over half of their total revenues. Airport city commercial development is heavily leveraged by the airport’s passenger and cargo terminals. Included here are: (1) commercial facilities for air travellers and airport employees such as parking, retail shops, F&B establishments, and leisure venues both inside and outside the passenger terminals; (2) commercial facilities for those providing or supporting air transport services such as airlines, cargo service providers, and caterers; and (3) commercial facilities that are leveraged by air transport such as airport medical clinics, hotels, and offices of air travel intensive executives and professionals.

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Commercial development typically commences at and adjacent to the terminals and proceeds over time toward the airport’s fence. As airport property fills, airport city development can spill over the fence into adjacent areas. Given its vast geography, aerotropolis development is much more varied and diffuse. Commercial and industrial clusters tend to be larger and constructed independently of each other. The nature and scale of commercial and industrial facilities locating in the broader aerotropolis are shaped by the market structure and competitive strengths of the metropolitan region, available land along or near airport surface transportation corridors, the volume and type of business and leisure air travellers, and the extent to which metropolitan cores are built out. Logistics and distribution centres, free trade zones, convention and exhibition complexes, corporate headquarters and other office buildings, business parks, and even complete airport edge cities have formed along the airport’s main surface transportation corridors to the metropolitan centre and interstitial highways. Several of the largest airport edge cities such Amsterdam Zuidas, seven minutes from Schiphol Airport, South Korea’s Songdo International Business District, linked by a 12-kilometre bridge to Incheon International Airport, and Las Colinas near Dallas/Fort Worth International Airport, have become globally significant commercial nodes. Las Colinas, for instance, hosts the world corporate headquarters of eight Fortune 500 firms as well as over 150 foreign firms.

The 4.0 Aerotropolis

The 4.0 Aerotropolis builds upon and advances the form and functions of the traditional aerotropolis, as is illustrated in the compressed generic schematic. With the airport city continuing to serve as its multi-modal central business district, the 4.0 Aerotropolis consists of at least eight broader functional zones: a knowledge zone, ICT zone, modern industries zone, express zones, logistics park and free trade zone, meetings incentives conventions and exhibitions (MICE) zone, bright lights zone, and an office zone that may evolve into a more complete airport edge city. Depending on the economic structure of the metropolitan region and the market that the airport serves, other specialised zones may be developed. At the core of the airport city, passenger terminals are fully equipped with advanced technologies that ease and speed flows of passengers and baggage from kerb to aircraft. These include robotic assistants powered by AI that can speak multiple languages, biometric authentication and big data computer vision algorithms to facilitate immigration and security checks, along with self-service baggage drop-off that automatically measures luggage dimensions and weight and delivers baggage directly to the aircraft with real time tracking to the passenger’s smartphone.

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Airport city office buildings, hotels, and meeting facilities are ubiquitously fitted with the latest smart technologies as are all cargo processing facilities. Sculpture gardens, themed leisure areas, and public art contribute to placemaking and traveller relaxation while enriched arrays of shopping, dining, and passenger services further enhance their airport experience. Pioneered by Jewell Changi Airport, expect to see more eye-catching lifestyle destination structures near passenger terminals, emphasising nature themed environments and housing a plethora of retail, leisure, and entertainment venues. The airport city remains the maximal convergence node of 4.0 Aerotropolis multi-modal connectivity. When this multi-modal convergence includes high-speed and/or intercity trains, the airport city and its greater aerotropolis can draw on a substantially extended labour catchment area to staff high-end functions such as corporate headquarters. It should be no surprise that most airport cites that host nonaviation sector corporate headquarters (such as Schiphol CBD, Frankfurt Airport City, and Paris CDG’s Roissypole) are served by high-speed and/ or rapid intercity rail. In many instances, existing resident talent, even in the entire metropolitan region, is insufficient to staff the range of Aerotropolis 4.0 firms envisioned. This is especially so for facilities shown in the ICT Zone, Knowledge Zone, Modern Industries Zone, and Office Zone of the schematic. Transforming the local labour force to meet 4.0 economy talent requirements, though important, can be a a long-term process. Thus, in addition to substantially extending the aerotropolis labour catchment area and upgrading local labour skills, global talent recruitment will likely be necessary. The 4.0 Aerotropolis must offer

conditions where diverse, well-educated, inventive people will want to live, work, learn, create, be entertained, and raise and educate a family. This includes everything from providing quality international schools and branches of respected graduate research universities to developing attractive, livable, green mixed-use commercial and residential areas, the latter designed to neighbourhood scale. A frequent complaint I have heard from younger talent residing in aerotropolises, is that they find them limited in lively social gathering areas and nightlife compared to metropolitan downtowns. This is why the 4.0 Aerotropolis schematic contains a Bright Lights Zone that will appeal to creative young professionals as well as to tourists and visitors. 4.0 economy professionals also tend to be technologically savvy and environmentally conscious. Successfully recruiting them means that ubiquitous digitisation should characterise the aerotropolis complemented with environmentally sustainable practices in all business, residential, and infrastructure developments. Attracting new-generation industries and business services, technology, and talent that distinguish the 4.0 Aerotropolis should not distract advocates from recognising that, first and foremost, a successful aerotropolis requires a well-connected airport which moves growing volumes of air traffic, passengers, and cargo quickly and efficiently. Without sufficient air connectivity and supporting aeronautical infrastructure and facility operations, the engine that powers the aerotropolis will sputter. This includes not only runways, terminals, and air traffic control facilities but also soft infrastructure (e.g., Customs and immigration processes) along with the types of logistics and goods handling facilities and their supporting services identified in the 4.0 Aerotropolis Logistics Park and Free Trade Zone.

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SPECIAL REPORT: NON-AERONAUTICAL REVENUES

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Even with a powerful airport engine, a 4.0 Aerotropolis is unlikely to form organically. I therefore further present a strategic path for its development highlighting the key requirements and steps to optimise its three primary causal factors – (1) Air services expansion, (2) business cluster development, and (3) talent attraction, along with specifying the ideal features of a 4.0 Aerotropolis. The strategic path shows air route development attracting modern aviation-oriented businesses. Such business development, in turn, lures talent, with all three being essential to the prosperity of the 4.0 Aerotropolis. Reinforcing feedback loops operate. For example, business cluster development generates the additional passengers and cargo that attract airlines and sustain expanded route networks. Likewise, the features of the 4.0 Aerotropolis shown around and below it in the schematic are instrumental to meeting the wants and needs of airlines, innovative businesses, and talented labour.

Who’s pursuing Aerotropolis 4.0?

Whereas no aerotropolis exhibits all 4.0 features described herein, there is a distinct worldwide trend incorporating many of them into master plans and development. To note just a sample. Beijing’s new Daxing Airport and its adjacent economic zones are merging smart airport and sustainable city practices with new generation aerospace, life sciences and R&D to become a pioneering area of innovation and living. The 415 square kilometre Zhengzhou Airport Economy Zone has developed clusters of biomedicine research, new energy vehicles equipment, silicon wafers, and smart electronics along with big data infrastructure. Its electronics information cluster now has over 100 enterprises while its 20+ business incubators host more than 300 sci-tech start-ups. The Incheon Aerotropolis has been trendsetting not only in developing autonomous vehicle, biotechnology, and robotics industries along with remarkable integrated resorts appealing to affluent foreign tourists, but also in smart, sustainable urban development best represented by the Songdo International Business District.

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Taoyuan Aerotropolis in Chinese Taipei is the cornerstone of the island’s Asian Silicon Valley initiative, while Australia’s Western Sydney Aerotropolis has been master planned for advanced manufacturing, creative industries, and life sciences with a university consortium fostering 4.0 economy skills. The new aerotropolis being planned in Thailand’s Eastern Economic Corridor is following similar 4.0 principles. Dubai has likewise been a 4.0 Aerotropolis trendsetter with its medical and wellness, aerospace, ICT, advanced financial services, and new media clusters, whereas Saudi Arabia’s Neom Aerotropolis is ambitiously being planned to be at the forefront of space commerce, hydrogen fuelled aircraft, and hypersonic flight as well as several visionary manufacturing and producer services sectors. Munich Airport, among the leaders in smart technology applications, is developing LabCampus, a 500,000 square metre innovation district for incubating next-gen mobility technologies and creative commercial ideas. Elsewhere in Europe, the Paris CDG region has positioned itself as a global pacesetter in aerospace research and contributing to sustainable, socially inclusive aerotropolis development. In the US, the Denver Aerotropolis is a premier location for biosciences. Its CityNow initiative scheduled for buildout in 2026 will be a living lab for technology innovations to achieve carbon neutrality. On the US east coast, a 4.0 Aerotropolis is rapidly evolving around Orlando International Airport led by the 45 square kilometre Lake Nona development adjacent to the airport whose clusters include graduate research universities, global centres for financial innovation, medical, and human performance, and the 2,000 creative employee Imagineering Campus of the Walt Disney Company, with an electric vertical take-off and landing (eVTOL) AW hub under construction.

About the author

Dr John Kasarda is president of the Aerotropolis Institute China, CEO of Aerotropolis Business Concepts LLC, and a faculty member at the University of North Carolina’s Kenan Flagler Business School. Email: JDK@aerotropolisbusinessconcepts.aero

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Zurich Airport’s new commercial district

We shine the spotlight on the Circle, an innovative new leisure and business district at Zurich Airport that opened its doors to the public in late 2020.

urich Airport’s new district, the Circle, once no more than a sketch on the napkin of renowned architect, Riken Yamamoto, is now a reality and an increasingly popular destination for visitors ranging from passengers and locals looking to shop or dine out to business executives. For it is home to numerous stores and restaurants, two hotels, a convention centre, the Swiss headquarters of a host of international companies and an urban park as well as being a new centre for medical services. Zurich Airport notes that it has long been more than just a place people visited to catch a flight or arrive at on an inbound aircraft. Indeed, peoples’ fascination with flying and the longing for the big wide world brings thousands of visitors to the airport every year. The innovative new complex further emphasises this need and turns the airport into an urban centre.

The Circle develops

Zurich Airport’s vision to transform its commercial offerings for passengers and visitors actually started around 14 years ago when, in 2008, the ‘Circle’ was first defined. And from the very beginning it was clear that the project at Switzerland’s largest national airport would be more than just a shopping mall, corporate headquarters, or a business park. The plan was for the Circle to become a city district that would bring all these uses together. Its distinctive look was decided a year later when a design by Japanese firm Riken Yamamoto & Field Shop was chosen ahead of 90 others from architectural teams from 12 different countries in an international design competition. Five years later, during which time the design was further fine-tuned, construction work began on the project in the spring of 2015, effectively

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meaning that it had moved from being a sketch on a napkin to the largest construction site for a private building in Switzerland inside seven years. That lofty status was assured as the Circle was built by a joint ownership company comprising Zurich Airport operator – Flughafen Zürich AG – and Swiss Life AG, holding stakes of 51% and 49% respectively. Construction took five years, meaning that the Circle opened in challenging times in November 2020 when Switzerland and the world was struggling to cope with the global COVID-19 pandemic. As a result, celebrations were out of the question, so it enjoyed a low-key opening. Nevertheless, despite everything, the airport notes that everyone involved in the project continued to believe in it and that over time it would become the dynamic place for guests, tenants, employees, visitors and passengers to enjoy. And the patience is paying off as there has been a continuous stream of new tenants into the Circle since its opening that have helped expand its diverse offering. As a consequence of this, around 85% of the space is rented out, and with the lifting of pandemic-related measures in Switzerland, the Circle is becoming the lively and innovative place envisaged by its creators.

A district for Zurich Airport

Riken Yamamoto’s vision has set new standards for Switzerland. While from the outside, the Circle appears to be one building oriented to the airport’s prevailing structures, the interior of the complex presents the atmosphere of a small city centre, inspired by Zurich’s old town. On an area of approximately 30,000sqm, Yamamoto created a usable area of about 180,000sqm. Instead of a single building, the Circle is composed of six different ones that open up towards the park, creating an inner-city ambience.

SPECIAL REPORT: NON-AERONAUTICAL REVENUES And just like in a city district, people from different industries and backgrounds come together in the Circle. The urban structure is complemented by seven usage modules: Health & Beauty, Education & Knowledge, Dining & Events, Brands & Dialogue, Art & Culture, Hotels & Convention and Headquarters & Offices. Apart from the possibility of living there, the Circle offers all uses that are also available in a city district. And where the future plays an important role, sustainability is also indispensable. The Circle is setting new standards in this area, too. Energy is stored in underground thermal storage units, while energy and water consumption are minimised through energy recovery. The photovoltaic installation on the roof of the building harnesses another source of natural energy. The Circle is certified according to the highest standard LEED Platinum and received Minergie certification.

A place to be, a place to relax

With its inner-city feeling, the Circle offers a varied retail experience for its visitors: a Jelmoli Lifestyle and a Sports House, an immersive boutique by Omega, and exciting concepts from The Square Mobility Hub by AMAG, Bruno Wickart, Anecdote, Läderach Chocolatier Suisse, Sapori d’Italia, as well as DLUX Hair are among the offerings. While a variety of restaurants and other F&B outlets offer a range of culinary delights to suit all tastes and pockets. These include the French cosmopolitan rooftop restaurant Sablier overlooking the park, Babel restaurant in the Hyatt Regency Zurich Airport The Circle with its complex flavours of the Middle East, and Leon’s Loft on the main square offering a selection of ‘feel-good’ food. And, if the sometimes-busy world of work or travel gets too much, there is also a chance to take a breath at the Circle’s very own 80,000sqm park, which is located on a hill that can be reached by a short walk or a funicular railway at the foot of the hill. Aircraft and traffic are barely audible here, making the park a unique meeting and recreation place for visitors, airport staff and passengers. At the highest point in the park, the so-called sky platform, there is a view over the Circle, the airport and, on days with a clear view, even the Alpine panorama can be seen in the distance.

The Circle Convention Centre

Where people come together, there also needs to be the right space for it. The Circle Convention Centre is home to one of the largest convention centres in Switzerland. Operated by Hyatt Regency Zurich Airport The Circle, which is located right next to the Convention Centre and connected to it by a passageway, it offers over 2,800sqm of event space and a wide variety of options for congresses, events and meetings as well as gala dinners, trade fairs or product launches. The large Convention Hall can accommodate around 1,500 guests in theatre style, 1,200 guests in banquet style and 970 guests in classroom style. The space can also be divided into three sections and features a triple-height glass ceiling. An additional 17 meeting rooms increase the total capacity of the conference area to 2,500 people. All meeting rooms, notes the airport, feature state-of-the-art technology and natural daylight with “intriguing park or Zurich Airport views”.

At this point it is probably worth noting that Zurich Airport is the best-connected transport hub in Switzerland courtesy of direct flights, regional, national and international train connections, and road access to the nearby motorway. The local rail options ensure that the Circle can be reached in about 10 minutes by train from downtown Zurich.

On to the future through creative co-operation

The mix of uses is particularly distinguished by the fact that a large number of future-oriented companies and organisations have moved into the Circle. They include Microsoft Switzerland, Hyatt International, Zurich University Hospital, Novo Nordisk and Jelmoli, as well as SAP and the pharmaceutical company, MSD. The airport believes that the mix of companies from different industries ensure that the Circle is home to a highly skilled and intelligent workforce, noting that where brain power comes together, innovation can arise.

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Digital steps to recovery In the post-COVID recovery, airports have never faced such a difficult challenge to raise their non-aeronautical revenue performance, particularly across their vital commercial spaces, writes Kavanagh Communications’ John Matheson.

he collapse of non-aeronautical revenue (NAR) over the past two years and the need to revitalise those flows are major challenges as airports face pressure to invest in reviving their crisis-hit operations. Investment has never been so desperately needed while, at the same time, revenue has never been so sparse, including vital NAR from commercial spaces. Indeed, as ACI noted in its February 2022 Advisory Bulletin, the global airport annual revenue shortfall is projected to be $83.1 billion in 2021 and an additional $60.8 billion in 2022. Commercial spaces are the primary path to NAR but, with many retail partners currently reluctant or unable to invest, revenue growth from these vital spaces demands a creative response. That challenge is further exacerbated by the fact that consumer behaviour has been transformed over the past two years and travel retail’s traditional ‘bricks and mortar’ retail formats and sales strategies built on impulse motivation, risk being undermined by a mouse and a mobile phone. Worldwide, across almost every demographic, consumer behaviour has seen a startling surge to digitalisation, particularly in retailing. Customers have become accustomed to seamless digital experiences that give hugely expanded choice, tailored options, personalised offers, expanded services, versatile delivery options, etc. As digital interaction embeds ever deeper into their lives, consumers are effectively using their best digital experience to set their expectations across other brands, too, including their airport experiences. The airport experience must adapt to these changing expectations, especially among younger travellers. Research by Airport Dimensions shows that Millennial and Gen Z passengers now account for 75% of global traffic; a significant rise from the pre-pandemic figure of 66%. Airports urgently need to respond to these customer segments as they behave very differently to the older age groups that have traditionally been the core retail target audience. The hardening reality is that digital is the only credible route to reaching these people. Developing a comprehensive omnichannel platform is hugely challenging and is an investment that, even if they have the vision, many airports simply cannot undertake right now, but the digital imperative simply cannot be ignored.

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Pioneering airports, such as Frankfurt, Heathrow, Singapore Changi and Auckland, have developed various scales of digital platforms to enhance their retail and ancillary services experiences, creating greater choice and more personalised experiences for the customer but often also integrating far stronger service elements, such as home delivery and convenient on-airport collection points. These digital options are particularly effective in addressing the rising preference for pre-ordering goods and services, but it is important to understand that a digital platform does not replace the airport retail experience. For in reality they complement the in-store experience and support the airport and its retailers in developing a much strong relationship with the customer, including enticing them to visit in-store activations and product promotions, for example. Outlining the digital challenge for airports, Kian Gould, chairman of airport commerce solutions provider, Omnevo, says: “The core issue airports face is that a digital e-commerce offering is only really appealing if the physical retail offering is also attractive. “If you have homogenous stores, such as ‘News’ and a core ‘Duty Free Shop’, with relatively standard products, the cost of launching and operating a digital marketplace solution is difficult to justify as many airports do not have enough critical mass of visitors onto their website. “However, if the retail experience is diverse and exciting, a digital marketplace solution for all ancillary revenue streams can strongly boost penetration between on- and offline revenues. “Also, if the shopping offer is built upon the traditional focus on last minute impulse purchases, it simply doesn’t add enough to the customer experience. As a partial step forward, a number of travel retailers are working hard at developing stronger retail experiences, especially including more experiential and immersive in-store digital activations created in partnership with leading brands, and also support the customer’s service needs with reserve and collect options.

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“These in-store strategies can certainly help strengthen the in-store experience but, increasingly, the customer wants a comprehensive, seamless digital experience that blends digital and physical. So, real value is only added when an airport has a range of top brands and shops, including luxury elements, that can be consolidated into a digital marketplace solution. “Digitalisation is a rapidly expanding fact of daily life for travellers and, even if airports aren’t currently in a position to implement an omnichannel platform, they should at least try harder to meet their customers in the digital world. “This could, for example, include creating clearer, simpler processes for ancillaries such as parking. Too often, third-party ancillaries result in a confused experience for the customer as outsourcing to third-party vendors leaves the airport with no control or feedback on the customer – which results in them relinquishing a significant degree of customer communication and control. “For any airport that wants to develop a foundation of digital capability, investment in a CRM solution will enable them to capture a useful range of information on their customers via the airport WiFi, etc. Then digitalising airport parking through yield-management and e-commerce and more flexible dynamic pricing offers is also a must for any airport that has relevant parking revenues. “These are relatively easy first digital steps that would raise both the customer experience and revenue performance but also provide a core platform from which the airport can very quickly expand its future digital capabilities at will.” As the post-COVID recovery accelerates, some airports have opted for ‘digital drop-in’ advances rather than seeking to implement the scale and complexity of a comprehensive e-commerce solution. This includes smaller scale digital e-commerce platforms (such as serving a specific terminal rather than a ‘whole airport’ solution), automated vending services and a surge of digital innovations in F&B. This trend is particularly strong in North America, which has seen the strongest recovery among domestic traffic. It also involves increased levels of partnership with leading retailers in driving innovations that could prove to not only support a revenue recovery this year, but also provide a ‘test bed’ to support future innovation and performance.

JFKIAT, the operator of Terminal 4 at New York JFK, for example, has pioneered what it terms ‘one of the first fully integrated, online and offline premium shopping experiences in the United States’, through an e-commerce platform. As a result. travellers at T4 can purchase duty free items online before arrival, or while waiting for their flight. JFKIAT also recently launched a multi-brand automated retail concept, providing a contactless, 24/7 shopping destination hosting a range of product categories and mixing local with global brands. Elsewhere in North America, Toronto Pearson’s e-commerce platform, The Shops at Pearson, in partnership with Dufry, enables customers to access an exclusive online selection of premium products. Although delivery is currently only available to home addresses within Ontario, the platform provides Toronto Pearson with a smart combination of in-terminal and digital interaction with the customer that offers opportunities for deeper insight into customer behaviour and needs, which can fuel greater personalisation of the customer experience. In Europe, Istanbul Airport has adopted augmented reality (AR) technology to provide travellers with a virtual companion, named CIGA, to accompany their journey through the Arrivals terminal. CIGA provides airport information but also encourages the traveller to explore the retail offer, presenting store details as the traveller approaches and offering the latest discounts and promotional codes. When it comes to F&B, pre-order apps have been introduced at a number of airports over the past two years in response to the COVID crisis, principally to help minimise contact, save time and help reassure the traveller. Addressing customers’ increasing needs for pre-order convenience and service, these apps continue to expand, including delivery robots operating across number of airports, especially in the US, including Cincinnati, Philadelphia, Los Angeles and San Francisco. Small scale ‘drop-in’ solutions cannot capture the full potential of a fully engaging omnichannel approach (as seen at airports such as Heathrow, Frankfurt and Singapore Changi) that drives large portions of passengers to utilise digital channels to drive sales both digitally and physically, but these are small steps in the right direction. Each digital step takes airports closer to meeting the customer’s digital needs, and each step can take them closer to NAR recovery. AW

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Come shop with me Fluent Commerce’s Rob Shaw suggests some potential solutions to create a seamless airport shopping experience.

he COVID-19 pandemic disrupted the globe in ways that could not have been predicted – hitting the travel industry especially hard. And it goes without saying that the lack of travellers has had a huge impact on the retail stores in airports around the world, forcing them to figure out how to best maximise revenue in other ways. But, as countries begin to relax travel restrictions, many airports are seeing a gradual recovery in passenger numbers, and with them, a return to in-person shopping. These are competitive retail environments and airport operators are increasingly focused on providing customers with a unified, cross-brand shopping experience. At the heart of this approach are a range of key considerations, including:

Getting accurate inventory data from tenants

An airport is like a marketplace. Each store is independently managed, and tenants have their own back-end systems (or sometimes no system at all). This means the first challenge is to get accurate inventory data from all stores. To do this, all stores should use one channel – for example, a marketplace platform. That way each store can manage its own inventory, either through integration or an online portal. This data can then feed into an Order Management System, so you have a single view of inventory across all stores.

Providing a cross-brand shopping experience

Shoppers everywhere are getting more discerning. They expect more from their travel experience – and that means their expectations are

high when it comes to airport shopping. This is particularly true for the issue of convenience, and customers need a way to shop all stores easily. Part of the fun of airport shopping is the myriad of stores to choose from. So, make sure you give customers the same experience online. Let them shop all the stores across all your terminals. The added bonus? They get to shop in stores that aren’t in their departure or arrival terminal. This cross-brand shopping experience can elevate your airport above the rest.

Offering customers greater choice

When customers shop at traditional retail stores online they have lots of fulfilment options. Airports can do the same. Travellers may want to collect their order on the way to their flight, leaving the airport, or even have it delivered to their home. But when you let customers choose how they collect their order it can add a layer of complexity to the fulfilment process, so requires technology that is flexible enough to handle it. Travellers buy their airline ticket in advance, so why not let them shop in stores a few weeks ahead of time too, even as soon as flight schedules are released? If they can shop at tenant stores well ahead of their departure or arrival it makes for an exceptional customer experience. The challenge is managing those orders. Do you have stores set aside inventory as soon as an order comes in? Or do you process the order and stage it at a pick-up location? That’s where a robust Order Management System can really help.

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Enforcing limits for restricted items during checkout

Duty-free purchases are a big draw for many airport customers around the world. But each country has different limits on restricted items like alcohol, tobacco and perfume. And some, like the United States, prohibit the sale of tobacco online altogether. So, you’ll need the ability to control those limits for duty-free sales based on the rules in your location. However, when a family travels together, they may wish to make a single purchase of duty-free items using the combined allowance of all passengers. This means tying the purchase not to an individual ticket holder, but to the reservation. Likewise, depending on where a passenger is travelling to or from, not all purchases will be duty-free. Some will need tax applied. So, it’s important you have a system that can manage taxes at both the order and the line item level.

Managing pick and pack and order consolidation

Airport stores weren’t typically designed to fulfil online orders, and staff are focused on sales and customer service. So, when staff need to pick and pack orders, reducing the amount of time and friction within the process is key. If you can optimise the in-store pick and pack user experience to solve staff challenges, it will help increase efficiency and keep stores – and staff – happy. Once an order has been picked by store staff, you’ll need to manage moving those items from the stores to a central pick-up location in the appropriate terminal. Typically, many orders will be collected from the stores at the same time. They then have to be sorted and consolidated. That means you’ll need a storage area that can accommodate both orders that are still in process, and those that are ready for pick-up or delivery. But the benefit to customers is huge. It lets them shop all your stores, not just those in their nearest terminal. So, you’ll not only save them time and hassle – imagine someone running between terminals trying to collect their orders – but offer a better experience to your customers. Offering this service means that agile systems must be in place to do the work – alerting staff that orders are ready to be picked up, bringing

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orders to a central collection location within the appropriate terminal, and ultimately alerting the customer that the order is ready. Or in the case of restricted items like tobacco and alcohol, routing them directly to the specific boarding gate.

Managing order sourcing and splitting

With hundreds of stores across several terminals – and with some brands having multiple stores in one airport – airports need to have a system that can ensure they source each item from the best location. Fulfilment logic needs to be able to prioritise one location or the other based on specific parameters, such as proximity to the pick-up location or customer’s terminal. Or what if there are two items from the same brand but they are in two different stores located in two different terminals? What’s more, a single order may need to be split so it can be fulfilled from multiple stores. Flight schedules change constantly. But customers still want their order – and in the easiest manner possible. When there is a change in flight schedule that results in a flight coming into a different terminal, you need to be able to quickly pivot. Utilising a fluid Order Management System that can automatically trigger a transfer of orders to a new terminal pick-up location – and notifies the customer about the update – makes for delighted customers. Clearly, the issues which go to make up the airport shopping experience are highly nuanced. And, while not everything is in an airport’s control, offering an easy, seamless shopping experience is more likely to catch consumers’ attention. Furthermore, by adding the ability to sell to non-travellers and deliver goods to their homes, airports can increase sales while expanding their customer base. And, as tenant sales increase, this not only makes for happier tenants but if an airport has employed a revenue-sharing model, you AW will benefit twofold.

About the author

Rob Shaw, is senior vice president of global sales at Fluent Commerce.

ACI EVENTS: ACI AFRICA REGIONAL CONFERENCE

Good to be back The association’s 30th anniversary, recovering from COVID and smart technology were among the topics covered at ACI Africa’s Regional Conference and Exhibition in Kenya, writes strategy and business development director, Romesh Bhoyroo.

he chance to meet face-to-face again at an ACI Africa event led to a healthy 300 delegates attending the ACI Africa Regional Conference and Exhibition in Mombasa, Kenya, on March 14-15, 2022. In line with tradition, the event was preceded by 67th ACI Africa Board Meeting, Regional Committee meetings and workshops and, in Mombasa, followed by a free route planning workshop jointly organised with the African Airlines Association (AFRAA). The theme of the conference was ‘A New Vision for a Resilient and Sustainable African Airport Industry’, and as a result covered a host of topics of interest to the continent’s airports. These included sessions on the main challenges facing African airports in ensuring resilience; profitability and sustainability in the new normal; and debates about on air transport viability, smart technology, commercial revenues, air cargo and the liberalisation of Africa’s skies. In total, the 300 delegates – a figure which surpassed our expectations bearing in mind the COVID situation – were treated to seven conference sessions and 40 presentations over the two-day conference, including two from keynote speakers, ICAO regional director Barry Kashambo and Angeline Simana, interim secretary general of the African Civil Aviation Commission (AFCAC). The event itself had 14 sponsors, and it was particularly pleasing to see a busy exhibition hall with 19 exhibitors that included a booth from the Office National Des Aéroports (OANDA), which will

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host the ACI Africa/ACI World Annual General Assembly, Conference & Exhibition in Marrakech, Morocco, later this year. In his opening remarks at the conference, ACI Africa’s secretary general, Ali Tounsi, reflected on the 30th anniversary of ACI Africa, stating that it was important for everyone to take stock of its accomplishments and failures to prepare African airports for a stronger, safer, smarter and more sustainable future. He said: “There have been times of glory and struggle down this 30-year long memory lane. We have accomplished a lot together, but we have a lot more to achieve together. We shall succeed through co-operation, integration and transformation, and ACI Africa will stand beside its members to enhance their competitiveness, attractiveness and ensure a seamless passenger experience. “As drivers of tourism, trade and business, airports will not only be at the heart of economic growth but they will have to become environment flagships. In this context, each airport in Africa will eventually have to carve its roadmap to reach net-zero carbon by 2050.” Also taking part in the opening ceremony, Alex Gitari, Kenya Airports Authority’s managing director, focused on the importance of co-operation between airports and other industry players, noting that this was the path to follow as “technology and innovation alone will not make for the successful recovery of international air travel”. While KAA Board member, William Ole Maiyani, spoke about the need for airports and different industry stakeholders to adapt to the new operating environment and embrace digitisation as an experience enabler for travellers.

ACI EVENTS: ACI AFRICA REGIONAL CONFERENCE

“Touchless biometrics will help reduce waiting time and improve the passenger experience, while e-commerce and digital co-operation between airlines and airports will boost retail opportunities and maximise revenue streams leading to financial stability,” said Maiyani. Guest of honour, Kenya’s Cabinet Secretary, Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works, James Macharia, stated that Africa must focus more on domestic intracountry airport infrastructure to cushion its aviation industries from unexpected international crises. He also spoke about enhancing partnerships, focusing on the fact that airlines are the biggest clients of airports, which together, support the tourism industry. Macharia stressed that instead of seeing each other as rivals, airports and airlines should complement each other and advocated for public private partnerships in the airport sector to support infrastructure development. He concluded by urging the industry not to overly depend on governments for support as this might slow down growth and development due to financial impediments and “red-tapism”. In his keynote speech, ICAO’s Kashambo praised the leadership and vision of ACI in formulating unified industry practices that advance airport standards globally and address global challenges not only in Africa, but across the world. He also highlighted the key role ACI Africa and airports play, and will continue to play, in the liberalisation of air transport as well as through initiatives such as APEX in safety, APEX in security, A-CDM and the Airport Carbon Accreditation programme. In her keynote speech, AFCAC’s Simana provided an update on the implementation of the Single African Air Transport Market (SAATM). She presented the African Union vision for a united, prosperous and fully integrated Africa by 2063, embedded in the AU Agenda 2063, with one of the flagship projects being SAATM.

She stressed that SAATM seeks to create one single air transport market in Africa, liberalise civil aviation on the continent and drive economic integration, with AFCAC being the executing agency of both the Yamoussoukro Decision (SD) and SAATM. Next up, ACI World’s director general, Luis Felipe de Oliveira, moderated a panel discussion called ‘Achieving a viable African air transport industry in a post pandemic era’ where, among others, Rwanda Airports Company general manager, Charles Habonimana; ACSA CEO, Nompumelelo Mpofu; and ONDA’s vice president for strategy, planning and sustainable development, Lahcen Farhat, did their best to address some big picture issues. Speaking in the following session entitled ‘How can the tourism industry support air transport development in Africa?’, Kenya’s charismatic Cabinet Secretary Secretary for Tourism and Wildlife, Najib Balala, suggested three ways to enhance connectivity across the continent: • To consider Africa as one domestic market • Liberalise Africa’s air space • Eliminate the need for Africans to require VISAs to visit other African countries. The latter point, in particular, he believed may help boost air travel across Africa, whose airports have never handled more than 230 million passengers a year despite the continent’s population of 1.3 billion people. From an airport perspective, he noted that it was also time to make the airport experience more welcoming for travellers by making security less intrusive, opening more accessible and passenger friendly facilities, and fixing the basics such as enhancing signage, reducing queues and the hassle of Immigration/Customs/Health procedures. He concluded by saying that the opportunities to enhance connectivity are many, and included everything from supporting the

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ACI EVENTS: ACI AFRICA REGIONAL CONFERENCE

low cost carriers to drive demand in regional markets to increasing collaboration between tourism and aviation to “improve the quality of airport transport services and enhance Brand Africa”. Highlights of the ACI Africa Board Meeting on Sunday March 13, 2022, included the launch of ACI Africa Magazine; Celebrating 30 years of ACI Africa; Updates on the African Airports Certification Assistance Programme and ACI Africa Airport Certification Software; and a session called ACI Africa Licence to Skill – The CPE Route to become an ACI Africa Airport Expert. The event also saw ACI Africa sign a number of MoUs with its partners and members. The first was between AFCAC and ACI Africa, and underpins the co-operation and collaboration between the two parties through the co-ordination of certain activities and events.

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These include joint projects and programmes, and the exchange of information, data and best practices to help achieve their shared objectives and enhance their effectiveness in meeting the interests and needs of their respective members. ACI Africa also signed individual MoUs with Kenya Airport Authority, Senegal’s Limak AIBD Summa (LAS), Sudan Airports Company Limited (SACL) and Summa Airports (SA) in Niger. Each MoU was set on the basis to further strengthen the existing co-operation and collaboration between both parties in a number of areas of common interest ranging from knowledge sharing and capacity building to assistance in maintaining aerodrome certification. See you in Marrakech for the ACI Africa/ACI World Annual General AW Assembly, Conference & Exhibition in October 22-26, 2022.

AIRPORT ART

Airport galleries

Airport World reviews some of the latest new artwork to be showcased at airports across the globe. Flying visit

In a new first for the industry, VINCI Airports recently celebrated International Women’s Day by simultaneously hosting the first-ever global NFT exhibition showcasing the work of 22 female artists across 20 of its airports in Costa Rica, Dominican Republic, Brazil, France, Japan, Portugal and Serbia. Some of the artworks were first presented at the World Economic Forum, raising more than $250,000 for women-led climate solutions for the Great Green Wall – an African-led initiative to create an 8,000 kilometre mosaic of restored land across the width of the Continent from Senegal to Djibouti. VINCI Airports – working in collaboration with Code Green and the World of Women – believes that the initiative also served as a reminder about how much the airport sector, and mobility in general, contribute to cultural openness, by enabling human contact and the discovery of others. According to the global airport operator, the activation also highlighted the linkages between technology, environmental protection and gender equality, with women and girls by far the biggest victims of the accelerating climate emergency. Women currently make up 37% of VINCI Airports’ workforce, with some holding leadership positions as airport CEOs in the Dominican Republic, Cambodia, Brazil, the United States and France. Nicolas Notebaert, CEO of VINCI Concessions and president of VINCI Airports, noted: “We were proud to put our airports at the service of such a strong environmental message from women artists. “This collaboration embodied VINCI Airports’ commitment to making transportation more sustainable and more inclusive. Diversity and gender equity are in the DNA of aviation: mobility brings people closer and helps to build an open world.” Code Green CEO, Inna Modja, said: “It’s inspiring to see a mobility leader like VINCI Airports embrace the fight to decarbonise the transport sector and champion the role of diversity in its network. “It made them a natural partner in showcasing these powerful artworks at airports across the globe on the occasion of International

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Women’s Day, highlighting the linkages between climate justice and gender equality to a truly global audience.” World of Women co-founder and artist, Yam Karkai, commented: “At World of Women, we like to have an impact beyond the NFT Space. And we believe that this was an example of us realising this, by being able to curate and participate in this first ever worldwide NFT exhibition, beside talented artists. “We are proud to have achieved this alongside our partner Code Green, and with VINCI airports, which is accelerating its plans to support more women in leading positions, which is typically the type of change we want to see in the world.” Alexa Meade, Allison Harvard, Amber Vittoria, Diela Maharanie, Dong Lu, Elise Swopes, Inna Modja, Izzako, Livia Elektra, Marjan Moghaddam, Roya and Shavonne Wong are among the digital artists featured in the groundbreaking exhibition.

New kids on the block at Tulsa International Airport

Local artist, Carmen Taylor, has finished a vibrant new mural at Tulsa International Airport called ‘IMAGINE’. Located outside the Departures roadway across from the American and Delta ticket counters, the mural features three children seated on the backs of scissor-tailed flycatchers soaring through the air in front of the word ‘IMAGINE’. The kids are engaged in whimsical play as they throw paper airplanes, fly a toy airplane and wave the Tulsa flag. According to the airport, the ‘G in ‘IMAGINE’ is designed to meld into the shape of Oklahoma with a heart indicating where Tulsa is. The design is said to signify community, playfullness and wonder. The purpose of this mural, says the airport, is to inspire kids and adults alike to think about the endless possibilities that life has to offer. “I’m so excited that my mural found a home at Tulsa International Airport. It will be there to see people off on whatever journey they are on, and hopefully remind them to Imagine,” said Taylor. The airport’s new mural is the first completed project funded by a Tulsa Creates Together Grant. Tulsa Creates Together is a site-specific art

AIRPORT ART

campaign presented by Living Arts of Tulsa in partnership with the George Kaiser Family Foundation. The project aims to encourage collaboration between Tulsa artists and local businesses across the city. “We’re honoured to have Carmen’s work displayed here at the airport, and we’re grateful for the generous grant that Living Arts of Tulsa and GKFF awarded her to make this possible”, said Stephanie Chester, Tulsa International Airport’s community relations manager. “The inspiring ‘IMAGINE’ theme is a perfect message for our passengers as they are about to travel and explore new parts of the world.”

Pittsburgh cylinders reflect city’s steel making history

Nationally renowned artists Adam Kuby and Patrick Marold have designed new art installations for Pittsburgh International Airport (PIT) as part of its Terminal Modernisation Programme (TMP). The jewel in the crown of the TMP will, of course, be the airport’s new passenger terminal but operator, Allegheny County Airport Authority, notes that “artwork reflective of Pittsburgh’s steel making history and heritage” will be incorporated in the project. As a result, the installations include four 20 to 40ft tall cylinders representing Pittsburgh’s emblematic smokestacks, and ‘Cross Currents’, 21 unique patterns scored into the surface of the terminals retaining walls providing a sense of texture and visual character. Kuby, who created the latter concept, says: “I was trying to bring a sense of the region’s geography, geology and topography and hopefully ground the roads and bridges into the landscape. This was to tie them a little more closely to the land that they’re actually occupying.” Highlighting the pedestrian walkways surrounding the multi-modal complex, Marold’s intentional design of the ‘Open Columns’ will allow visitors to interact with the installations by stepping inside and experiencing the reflective interior. Based in Boulder, Colorado, Marold designed the hollow columns so that they are large enough to enter. Once inside, a polished metal interior aims to catch the sunlight, presenting a stark contrast to the oxidised exterior. “There’s this very rich history that newer industries are building on to redefine Pittsburgh. It’s a great city that way,” he said. “It’s not being wiped clean, it’s being built from within, and that’s really exciting and beautiful to see.” Several more artists have been commissioned to develop concepts, creating original work for various areas inside the new terminal.

The art commissioned for the TMP is an extension of the airport’s robust arts and culture programme, which has hosted artists-inresidence, participated in industry wide virtual concerts and prioritised giving local creatives a platform for their work. “It was important for the Allegheny County Airport Authority to find the right mix of creative minds to achieve the TMP’s artistic goals, ” enthuses Renee Piechocki, TMP art and design consultant and longtime member of PIT’s Art in the Airport committee. PIT’s arts and culture manager, Keny Marshall, notes: “Art is an immediate way for people travelling through the airport to connect with their environment and our creative community. So many great conversations about our airport, the art collection and how we fit into the creative community start right here. Our programme creates a place where everyone can collectively appreciate and interact with our region and the world around them.” Marold has previously worked with airports in Denver, Dallas and Fort Lauderdale, while this is Kuby’s first time creating in an airport setting.

Miami artists sow the seeds of botanical love at MIA

Thirteen Miami-area artists hope to sow seeds of love for the minute details of plants into the hearts and minds of Miami International Airport visitors with Pollinators, a newly installed art exhibition at MIA’s Concourse E pre-security area on the arrivals level near Door 11. The watercolour and mixed media works in the exhibition focus on plants from South Florida and their animal and insect pollinators, exploring the variety and variability of creatures that pollinate the region’s abundant and unique plant life. Focusing on these complex natural relationships, members of the Tropical Botanic Artists Collective illustrated birds, butterflies, moths, bees, wasps – even aquatic zooplankton – with the plants they pollinate. The Tropical Botanic Artists Collective was established in Miami, Florida in 2006 to pursue the beauty of tropical plants through art. Its members come from all walks of life, and each brings a unique viewpoint to their work. They share the love of the natural world, which is reflected in their admiration for botanical subjects. They hope that their viewers will take a moment to observe the wonders of minute detail in plants and bring these new powers of observation into everyday life. AW

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IT INNOVATION

Smart money FetchyFox chief revenue officer, Joe Waller, explains why airport executives should invest in AI powered digital infrastructure.

hange, that intangible thing that society finds both thrilling and unsettling, has traditionally been something that happened gradually over time, especially when it came to airports. That is until an unexpected event occurs that serves as a catalyst, accelerating change at a rapid rate. September 11, 2001, is one example in our industry. In record time, security protocols were changed, operational procedures altered and even airplane design modified. Those changes reflected both the perceived risk and the methods or tools available to address them. We have again entered a period of rapid change, but this time there are two catalysts. COVID is the most obvious catalyst, but it is the other catalyst – the one that has largely gone unnoticed – that may have a more lasting impact on airport operations, and society as a whole. I am, of course, talking about the growing capabilities and adoption of Machine Learning, or as it is more commonly known, Artificial Intelligence (AI) powered insights. Though AI has been a part of the public consciousness for years, few executives have direct experience using this tool. Their experience with data analytics typically involves excel spreadsheets. Excel spreadsheets, though useful for certain things, are to AI what roller skates are to a Tesla. Both are forms of transportation, but there is no comparison in terms of power or usefulness. So, for airport executives, the questions are whether, during this time of strained-budgets, is this new tool necessary and, if so, how best can it be used? In September 2021, ACI World, published a Digital Transformation Handbook that effectively stated that it was time to take off the roller skates and jump in the Tesla. Specifically, it advises airport executives on how to: • Leverage data analytics to gain a more comprehensive understanding of airport operations. • Accelerate investment in seamless and touchless travel • Increase intelligent automation to optimise business productivity, cost base and efficiency. These recommendations reflect both the tremendous power of AI and the new post-pandemic world in which the industry can no longer rely on outdated assumptions and models about operations and traveller behaviour.

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The Power of AI

Properly structured, AI has the power to improve virtually all aspects of the travel experience – both passenger facing and operations that the traveller never sees. This includes everything from the retail/concession experience, parking, security line optimisation and forecasting, cybersecurity, gate utilisation and terminal design to lost and found departments and even bathroom cleanliness. But, like any relatively new technology, it is sometimes difficult for established organisations to take that first step. That is where the catalyst of COVID came into play. IKEA, one of the largest retailers in the world, is perhaps the best example of how AI can impact an established business. It has always had an online presence, but it was a low priority, so subsequently disjointed and using last generation technology. Their focus was elsewhere – the 300+ enormous IKEA destination stores. However, as described in Marco Iansiti and Karim Lakhani’s excellent book Competing in the Age of AI, that changed when COVID hit. When stores began closing and expected digital sales did not materialise, the IKEA team realised that it was time to rethink their digital strategy. Though they were collecting data, it was stored in multiple silos and was essentially just sitting there unused. In record time, the IKEA team consolidated the data into a single data warehouse. That is no easy task, but IKEA was 100% committed to moving as fast as possible. This restructuring of the data allowed IKEA to then use AI insights to enhance the customer, employee and even supplier experience. The results were profound and undoubtedly caused the IKEA executives to wonder why they waited so long to put this powerful tool in place. Online sales increased three to five times over the post-pandemic pre-AI sales. Equally important, IKEA’s margins were “much higher” as well.

IT INNOVATION

IKEA’s experience is not an outlier and ACI World’s guidance for airport executives on how to begin investing in AI powered digital infrastructure is not unique. Both reflect the private sector’s rapid embrace of this technology. Indeed, on January 4, 2022, Chipotle Mexican Grill CEO, Brian Niccol, reported that his company was using AI to solve a multitude of challenges ranging from employee recruiting and retention to supply chain issues. Chipotle has even paired AI with visual senses to track guacamole use and forecast future needs. When asked about the power of technology, Niccol told the Washington Post: “Machine learning and automation is going to be a big disrupter because it just allows you to do processes that people didn’t love doing before. “As a result, they [will be able to] do them with great accuracy or great consistency. That [will marry] with analytics so you can better forecast, better prep, [and have] better execution. “Companies that invest in these areas will end up with hopefully better work for our employees and better outcomes for our customers.”

AI in the airport environment

Despite the extraordinary complexity of AI, its function is relatively straightforward: AI allows you to see what you otherwise cannot see and make informed decisions accurately and at scale. AI mines data for correlations and insights that scores of skilled technicians could never find and the most experienced operator would never expect. That knowledge is power. Most airports have yet to fully leverage the data available to them and currently lack the infrastructure to do so. To the extent data is collected, it is fragmented and in silos that reflect old-world operational thinking. That is a waste of a valuable resource. For a relatively small amount of money as compared to physical infrastructure, airports can

put an AI-powered digital platform in place and begin using that data to improve efficiency, maximise sales and enhance traveller satisfaction. Indeed, given the complexity and scope of airport operations, the opportunity is magnitudes greater for airports than for retailers like IKEA. Insights on how to improve the traveller experience and enhance operational efficiency are there for the taking. When investing in AI powered digital infrastructure, airport executives should take the following steps: First, recognise that AI is an extraordinarily complex niche in the software world. Though many IT professionals will have some experience with basic data analytics, few have the in-depth knowledge and experience needed to create a real, functional AI powered digital infrastructure. Even Apple, Google, and Microsoft routinely look outside their own organisations for AI expertise. Apple acquired Siri from creator Dag Kittlaus in 2010, Google acquired API.AI – a company specialising in conversational AI – in 2016, and Microsoft recently acquired Nuance, an AI company specialising in healthcare applications. In short, just as you would ask your family physician to help you find the best surgeon, charge your IT team with finding a company that specialises in AI in the airport environment. Second, assess the existing situation. Specifically, determine the extent to which operational data has been collected, how/where it is stored, and what opportunities there are to collect additional data. Most organisations find that data has been collected in a haphazard manner using different standards and is siloed by multiple stakeholders. Consequently, an experienced cloud architect will need to create a usable data architecture that facilitates AI. Third, in no uncertain terms, make sure your operational and IT teams know that the goal is to create an organisational and technical structure that generates insights effectively. You can expect resistance, especially from those who are unfamiliar with AI. Overcome that resistance by setting clear goals and educating the team on how AI will improve the organisation. Fourth, engage airport stakeholders early in the process. This is critical as these stakeholders are often the source for important data. Experience has shown that the natural resistance to sharing data melts away when stakeholders (even large, multi-billion dollar companies) realise that AI is a powerful tool they can use and not simply the airport meddling in their business. A properly structured digital platform will include customised role-based dashboards for each stakeholder so they too can harness the power of AI. Finally, and this cannot be emphasised enough, make sure that you choose partners with extensive AI domain expertise and the ability to orchestrate an integrated, unified data ecosystem that is flexible enough for the highly complex airport environment.

Embracing the opportunity

The best leaders recognise that for an organisation to thrive it must continually find ways to improve and invest in the best tools available. That is why leaders in the private and public sectors are embracing machine learning/artificial intelligence. Artificial intelligence allows organisations to use an extremely valuable and vastly underutilised resource – the reams of data their organisation generates every day. It is there for the taking, which is why ACI World has given such clear direction to industry leaders.

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PLANNING & DESIGN

Embracing the great outdoors HOK’s Matt Needham and William Jenkinson discuss trends in designing outdoor spaces for US airport terminals.

ravel is once again ramping up. According to the World Travel and Tourism Council, travel and tourism GDP is projected to rise by 31.7% in 2022. Similarly, the US Travel Association notes that 82% of American travellers are “excited to travel in the next 12 months” – the highest level since the start of the pandemic. As passengers return to the skies in record numbers, airports can refresh their terminals and take the stress out of the travel experience for people weary from COVID-19’s impact on the world. Bringing the outdoors into terminals is one way to reimagine and create healthier traveller experiences. HOK has designed nature-inspired spaces in airport terminals that incorporate lush gardens, open air terraces and floor-to-ceiling windows with iconic views of natural landscapes. Below are just a few ways to include outdoor spaces at airports.

Showcase the local culture and natural landscape

No matter the climate, there’s always an opportunity to showcase the local culture and natural landscapes. Take Salt Lake City, for example. Though it features cold and snowy winters and hot and dry summers, Utah’s capital can still incorporate the outdoors into its airport year-round. For Phase 1 of Salt Lake City International Airport’s Terminal Redevelopment Program, the HOK-led design team quizzed airport leaders and main airline carrier Delta Air Lines about their favourite aspects of the city. They described its warm people, explosive growth, and awe-inspiring scenery. They also shared their love of the brilliant hues of the sun and sky, the snow and skiing, the birds singing, the changing colours of the

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mountains from the darker greens and grays in the north to the fiery reds and oranges in the south. In response to the stakeholders’ aspirations for their airport, the team designed 50-foot-high, floor-to-ceiling windows that draw in daylight and offer sweeping views of the Wasatch Mountains. A ‘family room’ offers a fireplace, world map and large windows showcasing mountain views. Earth-toned, interior and exterior finishes further connect travellers to the unique western locale. Similarly in New York City, local urban pocket parks inspired the team designing LaGuardia Airport’s new Terminal B. Indoor green space is sprinkled throughout the terminal, providing passengers with immersive, park-like spaces featuring lush landscaping, pockets of trees and sculptural benches. Incoming and outgoing passengers also share soaring and airy sequences punctuated by 60-foot-high windows that fill the terminal with daylight. These green spaces and access to natural daylight indoors support the health of travellers and help them relax during their journey.

Rethink underutilised spaces

It’s important for airport operators and planners to evaluate their terminal space and functions. Are there dead zones that could improve the passengers’ experience? Are there opportunities to transform spaces for better functionality? At Tampa International Airport, the design-build team redeveloped the main terminal and airport concessions. During the project, the team discovered four underutilised outdoor terraces below the terminal’s transfer level, accessible only to maintenance workers.

PLANNING & DESIGN

By reconfiguring nearby APM shuttles, the team added 55,000 square feet of new interior space to the terminal and connected it with the terraces for travellers to enjoy. With these four outdoor spaces now accessible to the public, Tampa gained nearly 24,000 square feet of terrace space with lush plantings for traveller relaxation, dining or special airport events. Aside from providing places of respite for weary passengers, the outdoor spaces are revenue generators for the airport. Two of the terraces are leased by Hard Rock Café and PF Chang’s. The potential to create new outdoor spaces may also be overlooked in non-traditional places, including arrival and departure areas. In Atlanta, HOK led the HJ+P joint venture team to modernise the Hartsfield-Jackson Atlanta International Airport (ATL), the busiest airport in the United States. And as part of the modernisation programme, the project team outfitted the domestic passenger terminal with two soaring structural steel canopies with translucent ETFE (ethylene tetrafluoroethylene) fabric panels. Visible from air and land, the twin structures cover eight lanes of traffic at kerbside drop-off and pick-up areas. The canopies provide a welcoming ‘frontdoor’ that protects travellers, the roadway and the building facade from Atlanta’s ever-changing weather. The inflated ETFE pillows create a thermal barrier that has reduced the solar heat gain by at least 50%. Programmable LED lighting illuminates the canopies at night and act as a symbol of Atlanta and a civic storytelling device. Following the canopies’ completion, ATL installed kerbside ticketing and bag drop in the area – expanding the terminal’s processing capacity. Bridges floating below the canopies and above the roadway also offer travellers a unique experience on their journey into the terminal.

Ease traveller anxiety

Air travel can be a stressful experience, with anxiety around parking, making it through security, navigating unfamiliar territory or rushing to catch a flight. Stress-relieving spaces can support the health and wellness of passengers and mentally transport them to a calmer place, all while staying in the terminal. In Southern California, HOK modernised the historic Long Beach Airport terminal, taking advantage of the temperate climate. The design team created an open-air plaza and secure outdoor spaces, including airside gardens resembling resort spaces with fire pits. Palm tree-lined courtyards, native plantings and shaded wooden boardwalks fill the new concourse, helping travellers connect with nature and easing their anxiety. Apart from adding relaxing outdoor spaces, the modernisation pays homage to the airport’s original Art Deco terminal with new structures appropriately scaled behind it. The historic landmark remains the visual link between the landside and airside with lush landscaping leading up to the structure.

Embrace the great outdoors

As the world returns to a new form of normal, people are eager to leave their homes and take to the skies for their next adventure. To provide a smoother travel experience, airports can embrace the great outdoors by incorporating relaxing terraces, courtyards, landscaping and more into the terminal space to welcome back travellers and support them on their journeys. Creating these natural oases can strengthen travellers’ emotional attachments to a terminal, trigger more pleasant interactions with fellow passemgers and reinforce a strong sense of place. Like Frank Lloyd Wright once told his students: “Study nature, love nature, stay close to nature. It will never fail you.” Even in an airport.

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SUSTAINABILITY

Green champion Airport World reports on the news that Christchurch Airport has become the world’s first climate positive gateway.

hristchurch Airport has set a new sustainability milestone by going beyond carbon neutrality to become the world’s first climate positive gateway. Its general manager for planning and sustainability, Nick Flack, believes that the move makes his gateway a global leader in the transition of airports and aviation to a lower carbon future. “Achieving this next level in our journey is critically important because airports and aviation support economic activities that earn the most export dollars per tonne of carbon and support improved wellbeing for future generations,” enthuses Flack. Christchurch Airport has had its greenhouse gas (GHG) footprint independently measured and audited since 2006. Taking immediate action to reduce Scope 1 (onsite operational) emissions was the first step and has resulted in close to a 90% reduction in Scope 1 emissions to date. The airport was recognised as a world leader in airport decarbonisation in late 2020, when it became the world’s first airport to achieve Level 4 status in ACI’s Airport Carbon Accreditation programme. As a result, it now mentors airports around the world, including Brisbane and Perth in Australia and New York’s JFK, Newark Liberty and LaGuardia airports in the US, on how to reduce emissions. Flack says Christchurch Airport will continue to address emissions reduction, ahead of science-based targets aligned with limiting global temperature rise to 1.5 degrees. “This includes working with airline partners to accelerate the decarbonisation of the aviation sector,” he notes. “Emissions by aircraft while in the air are a big part of the remaining challenge. Airlines and aircraft manufacturers have plans to accelerate the development and deployment of lower-carbon technology. “As an airport, our focus is to ensure we are leading development of the necessary infrastructure so we can be early adopters of new technology. New Zealand’s first electric passenger aircraft was developed at Christchurch Airport and leading technological contenders are hydrogen and battery electric power for short-haul aircraft.” Last December, the airport announced plans for Kōwhai Park, which will boast New Zealand’s largest solar energy array, ultimately covering a 400-hectare area on the airport campus.

“By developing renewable energy, we will have the potential to provide 100% renewable electricity or hydrogen for aviation in Christchurch, and a renewable energy source to power low carbon ground transport and industry for Christchurch,” said a statement. “We see Kōwhai Park as a step beyond carbon neutrality and a way we can catalyse the low carbon future of the Canterbury region. “To progress this work, we are working with Hamburg International Airport. Hamburg is the European leader in applying hydrogen within airport operations, and works with Airbus to assist the transition of aviation to more sustainable energy. “The two airports now work together with regular meetings in the wee small hours to combine our knowledge and accelerate adaptation.” And Flack insists that his gateway is not stopping there, noting that in addition to this work, operator Christchurch International Airport Limited (CIAL) is voluntarily supporting permanent New Zealand native forestry restoration that removes GHG emissions from the atmosphere. He says: “We have followed best practice as set out by MfE ‘Interim Guidance for voluntary climate change mitigation’. “It means before making claims of voluntary climate change mitigation, organisations should first measure their emissions, commit to an emissions reductions plan, and continue to take action to reduce their emissions in accordance with their plan. “Our ambition is to go beyond ‘neutral’. We want to have a positive net benefit on our environment so are aiming at 25% beyond neutral. We achieved 90% reductions in our Scope 1 emissions, but at the moment, there is no technology available to reduce the final 10%. “So, we are investing in New Zealand based permanent native forestry restoration to remove carbon from our atmosphere beyond our own footprint. This will also actively assist biodiversity, habitat restoration, landscape resilience improvements, soil health and water quality.” This work sees Christchurch Airport partnering with CarbonZ to support permanent native forest restoration in the Lake Hawea region in Otago, including Manuka, Kanuka and Mountain Beech. AW

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WBP NEWS

Open for business The latest news from ACI’s World Business Partners.

Amadeus to help transform passenger experience at Keflavik Airport Isavia, the operator of Iceland’s airports, is embracing cloud computing with a major technology transformation at Keflavik, Iceland’s primary airport, in partnership with Amadeus. The move supports closer collaboration between the airport and its airline partners, including home carrier Icelandair, that will deliver significant improvements to the passenger experience. Examples include the introduction of digital payments and a new self-service check-in and bag drop that will deliver a more flexible passenger experience. By moving from a legacy, multi-provider IT environment to Amadeus Flow, an integrated cloud solution for all aspects of passenger processing, Isavia will retire its on-site systems and operate 100% of its passenger services from the cloud. The shift means airlines can now consider innovative options, like off-airport check-in and bag drop, with services positioned at key locations like city centres, bus stations or hotels.

All passenger service points at Keflavik will transition to Amadeus’ cloud solutions, including more than 130 check-in and boarding desks, as well as 50 new self-service check-in kiosks, and 25 new Auto Bag Drop Units provided by ICM Airport Technics, an Amadeus company. Isvia’s IT director, Bjarni Sigurðsson, said: “This major project is all about having the flexibility to collaborate more closely with our airline partners to deliver a better experience for passengers.” While Amadeus’ vice president for airport IT and airline operations EMEA, Yannick Beunardeau, noted: “With the vast majority of passengers at Keflavik flying on airlines powered by Amadeus, this project offers a playground for passenger experience innovation. “We plan to push the technical boundaries of airline and airport collaboration with a commitment from all stakeholders to experiment, learn and deliver better journeys. Operating on common cloud solutions opens the door to a raft of new passenger services.”

New Incheon and Tokyo Haneda security contracts for Smiths Detection Smiths Detection is to supply South Korea’s Incheon International Airport and Tokyo Haneda Airport in Japan with a suite of baggage screening equipment. Smiths Detection has signed a contract to provide Incheon’s Terminal 1 with ten HI-SCAN 6040 CTiX scanners, which use Computed Tomography (CT) technology to generate 3D images that deliver a very high level of detection and low false alarm rates. It will also supply the airport with nine iLane ASC automatic tray return system (ATRS) units to help increase baggage flows and alleviate bottlenecks during the passenger screening process, especially during peak travel seasons. To accommodate specific local space requirements, the units will be customised to allow for fire shutters to close through the lane in case of an emergency. Smiths Detection will also provide the South Korean gateway with an advanced checkpoint and screening management solution to connect all X-ray units and operator workstations.

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Meanwhile, in Tokyo, Smiths Detection is to supply Haneda with 12 sets of HI-SCAN 6040 CTiX carry-on baggage screening systems, iLane smart automatic tray return systems, and UV-C tray disinfection systems. It notes that its products will support the introduction of Japan Airlines’ Smart Security programme at the security checkpoints in Tokyo Haneda’s Terminal 1 and utilise “cutting-edge technology to realise more advanced security inspections”. The airline’s senior vice president for airport operations, Atsushi Maeda, said: “At Tokyo Haneda, we have redesigned the system from check-in to the boarding gate, and have strengthened human services, embracing the digitalisation of our system. The new checkpoint technology will further enhance security and shorten inspection times, helping realise safer, more secure and stress-free airport journeys and services.”

WBP NEWS

Plaza Premium Group and marhaba join forces

WBP profiles AeroParker

Membership Region: Europe Type of Business: Information Technology & Communications W: www.aeroparker.com AeroParker is a proven, scalable pre-book and pay airport car parking and ancillary software which significantly increases direct non-aeronautical revenue whilst collecting customer data for future commercial gain. AeroParker’s ‘Virtual Terminal’ is optimised for mobile, tablet and desktop devices ensuring the ultimate buying experience for all passengers using the system. Plaza Premium Group (PPG) has entered into a joint venture agreement with fellow airport hospitality brand, marhaba, to expand their international offering. The partnership brings together two major hospitality brands to combine knowledge and resources, which according to the partners, “will take airport hospitality to the next level through excellent and innovative airport concierge and lounge services as travel demand increases globally”. The first project under the agreement will see the development of the new marhaba Plaza Premium Lounge at Queen Alia International Airport in Amman, Jordan, which is set to open in July 2022. The lounge will have a capacity of 140 guests and is aid to be inspired by the beautiful landscape of Amman, with subtle inclusion of the local culture and heritage in its design. Bora Isbulan, deputy CEO of PPG said: “This is truly an exciting opportunity for PPG. Our global agreement with marhaba is a testament to our shared commitment to providing the best-in-class airport hospitality for travellers to enjoy. “We expect to yield more opportunities in the future through this collaboration. Meanwhile, we are also excited to announce our first venture through the PPG and marhaba’s global agreement, the launch of the new marhaba Plaza Premium Lounge. Travellers will be able to experience the new lounge later this year.” Marhaba is the global hospitality brand of airport ground services provider, dnata, whose CEO, Steve Allen, noted: “Our joint commitment to quality and service excellence will ensure first-rate customer experience for travellers throughout their journey.”

SSP opens new outlets at Huaguoshan International Airport The SSP Group has secured a deal which will see it develop the F&B offerings at the new Huaguoshan International Airport in the Chinese port city of Lianyungang in Jiangshu region. As the master concessionaire, SSP has assumed a central role in the development of Huaguoshan Airport’s F&B portfolio. The three to five-year contract will see SSP operate five concession units throughout the airport, two landside and three airside. According to SSP, it will introduce a mix of renowned international brands, SSP’s own concepts and much-loved local favourites. The new additions will include coffee brand Ritazza, Burger King and popular Chinese restaurants A’Xiang Rice Noodles and Rong Li Ji. The latter is said to deliver the authentic taste of Sichuan cuisine with a modern twist. The introduction of Rong Li Ji at Huaguoshan Airport marks SSP’s first venture with the well-known Chinese brand. Further units are expected to open at other locations across the region at a later date. Jonathan Robinson, SSP’s CEO for Asia-Pacific, said: “Our partnership with Huaguoshan Airport will enable us to demonstrate our expertise and commitment to adapting to meet changing customer expectations. “Over the past two years, we have seen a marked shift in the way customers wish to interact with F&B outlets. With this latest contract win, we will endeavour to elevate the experience that customers have come to expect from us through the implementation of digital ordering services. Passengers that visit Huaguoshan Airport can now order from their favourite local and international brands in the way that suits them.”

Arora Engineers, Inc.

Membership Region: North America Type of Business: Information Technology & Communications W: www.aroraengineers.com Since 1986, Arora Engineers, Inc. (Arora) has concentrated on the aviation industry as a core client. The firm’s solid mix of industry knowledge and expertise allows it to offer a broad spectrum of engineering services, including oversight, project management, and the design of new and existing mechanical, electrical, plumbing, electrical aeronautical, fire protection, and IT building and airfield systems. Arora also provides construction management and facilities maintenance management. As a certified MBE, the firm’s multidisciplinary approach offers clients comprehensive, cost-effective solutions.

Sasse Aviation Service

Membership Region: Europe Type of Business: Equipment W: www.sasse.de Sasse Aviation Service GmbH is a recognised service provider specialising in cleaning services for the aviation industry and operating at several airports in Germany, the UK and Ireland. Its services include airport and aircraft cleaning, maintenance of technical equipment, ramp services, lounge and gate services, winter and landscaping services.

AIRPORT WORLD/ISSUE 2, 2022

HUMAN RESOURCES

PEOPLE

matters Eight years and counting

Terri Morrisey and Dr Richard Plenty reflect on the 50th edition of their popular human resources column in Airport World.

t’s hard to believe that over eight years have passed since we wrote our first People Matters column in 2014. In that time, we have written 49 regular bi-monthly articles on the organisation, leadership and people aspects of the airport world. How things have changed since we first got involved in the airport sector in 2005. Most people now take it ‘as read’ that people matters are a topic of importance, but it hasn’t always felt like that. Reflecting back on the origins and evolution of this column provides an insight into changing attitudes and mindsets over the last 15 years. It all started with a chance conversation between myself (Terri) and the then managing director of Insight Media (now Aviation Media) at an airport conference in Dublin in 2007. I pointed out that that this conference, as well as other international airport gatherings, focused almost entirely on the physical infrastructure side of airports – the bricks and mortar, the runways, the terminal buildings and piers and the financial investments associated with them – with almost nothing on the people and culture side of working in an airport. Both myself and colleague Richard Plenty thought this was a major omission. At the time, we were engaged in a major change programme at Dublin Airport, ‘Shaping the Future’, working closely with the CEO, Declan Collier (who later became ACI World chair), to create a high-performance culture. It was clear that airport transformation required ‘two journeys not one’ – both infrastructure and organisation – and that leadership and people were key. So, the idea began to develop that there should be more attention paid to these very essential aspects of airport life across the globe, as airports do not run without the skills and efforts of the people who work in them. Shortly afterwards I attended an international conference at Dallas/ Fort Worth (DFW) to explore the topic further. At that Dallas conference I met with DFW’s then CEO, Jeff Fagan, and spoke with him about his leadership of the airport and also about the people issues and challenges he faced as the CEO. This was a conversation he hadn’t had before, and he also became interested in the topic. Further CEO conversations with, for example, James Cherry from Aéroports de Montréal (ADM) and the leaders of Memphis, Athens, Schiphol, Minneapolis-St Paul and Vancouver airports as well as the CEOs from many regional and small airports, gave rise to a series of articles which Richard and I co-authored in Airport World from 2008-2011 on the people challenges facing airports – articles that were the forerunner to this column. ACI began to pay increasing attention to leadership, organisation and people matters in the period 2011-2014. We were invited to run

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a session on leadership with the ACI World Board at their AGM in Calgary in 2012. ACI World invited us to design and run an airport HR programme in 2012, which continues to this day. And, Olivier Jankovec, director general of ACI EUROPE, encouraged and supported the formation of a regional Leadership and Human Resources Forum in 2013 to get HR managers more involved in this area. So, by 2014, there was already much more interest in the topic than in 2007. The time was ripe for a regular column in Airport World and the first column appeared in the February-March 2014 edition. It was entitled ‘Worth the Investment’ and introduced the idea of people and culture being just as important an investment as infrastructure. Building on our work both on the leadership conferences and as facilitators with the ACI World Strategic Human Resources Management Programme, we have since produced a series of articles on matters ranging from the use of evidence and data analytics to the impact of automation and technology, to traditional HR issues such as succession planning and talent management, to articles on people of courage and leadership role models such as Nelson Mandela. More recently we have been writing about sustainability, resilience, workforce planning and on strategies for dealing with crises and the pandemic. We first aired our thoughts on uncertainty in the February March 2017 issue when we spoke about dealing with the unexpected, which we developed further in our book Uncertainty Rules? Making Uncertainty work for you (Cork University Press/ Atrium) brought out at a time of great uncertainty right at the beginning of the pandemic! It has been an interesting and challenging eight years since we started the People Matters column. Airports have gone through many changes and developments in that time. We have tried to reflect these changes and have also endeavoured to bring some new thinking to the area of people and organisation. We have also seen a huge shift in the emphasis on people and culture over the years with more investment and professionalism entering the field. We are seeing a shift toward more strategic involvement and thinking on the part of the people side of AW organisations, which is very welcome.

About the authors

Terri Morrissey and Dr Richard Plenty are directors of This Is…, authors of the book, Uncertainty Rules? Making Uncertainty work for you, and run the ACI World Airport Human Resources Programme. You can contact them at info@thisis.eu