Page 1

In the spotlight: Retail and F&B innovation Airport report: Miami Special report: Airport art ;OLTHNHaPULVM[OL(PYWVY[Z*V\UJPS0U[LYUH[PVUHS

Plus: Digital transformation & Airport integrators

Retail/F&B innovation: Boosting non-aeronautical revenues October-November 2018 Volume 23 Issue 5 www.aci.aero


Food & Beverages where traveling guest is #1

MERA

CORPORATION

4 Countries• 16 International Airport Terminals + 130 Locations• +40 Award Winning Concepts

Craving for business?

Contact: Gabriel Marquez, Development Director• gabrielm@meracorporation.com• www.meracorporation.com


OPINION ;OLTHNHaPULVM[OL(PYWVY[Z*V\UJPS0U[LYUH[PVUHS

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 Director Jonathan Lee +44 (0)208 707 2743 jonathan@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

Published by Aviation Media Ltd PO BOX 448, Feltham, TW13 9EA, UK

Website www.airport-world.com

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

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

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

Food for thought Editor, Joe Bates, reflects on the ever-evolving airport dining and shopping experience in this ‘retail/F&B innovation’ themed issue of Airport World.

F

ood is a subject that’s close to all of our hearts, so I suppose I shouldn’t have been surprised by some of the online comments we received a few years ago to a story about the comparatively new trend of airports offering healthier food options for passengers. It may have been 10 years ago now, but I remember that it seemed to really upset some readers who blasted the article as ‘rubbish’, ‘ridiculous’ and ‘fake news’ – OK, I made the last one up – because they insisted that ‘airports’ and ‘healthy food’ were words that could never be used in the same sentence! Ironically, the whole point of the article was to challenge people’s perceptions of airport food as the opening of a host of new outlets with healthier options on the menu meant that airport fare was no longer typically just about burgers, fries and other fast foods. And before anyone has a go at me for knocking fast food, let me just say that I am also a fan of it, particularly when on the go or keen to get somewhere and waiter service at a more traditional restaurant is just too time consuming. In essence, making them perfect for airports. However, like with anything, it is always nice to have a choice, and this is never more true than at an airport where visitors might be in and out in less than 60 minutes or hanging around for hours to catch connecting flights. Luckily, as commercial outlets at airports have become ever more innovative and sophisticated over the years, the choice of eateries and retail offerings at airports has continued to grow and evolve, and you will be able to read about some of them in this ‘Retail/F&B’ themed October/November issue of Airport World. The retail/F&B scene is set by Aircommerce’s managing director, Melvin Broekaart, who

outlines some of the key challenges and opportunities facing the industry going forward. The themed section of this issue also contains articles about ‘sense of place’ retail; the need for F&B outlets that excite and delight travellers; and a round-up of some of the latest headline making airport retail and F&B news from across the globe. I have no doubt that some of our examples of retail/F&B innovation at airports will be mentioned at The Trinity Forum – arguably the world’s most influential airport commercial revenues conference – which takes place in Shanghai, China, from October 31 to November 1. You will be able to read a comprehensive review of the event in our next edition. Another upcoming event is the ACI Latin America & Caribbean (ACI-LAC) Regional Conference, Assembly & Exhibition, which takes place in Miami on November 12-14, so it’s fitting that Miami International Airport (MIA) is the airport in the spotlight in this issue. Indeed, we get to talk to Miami-Dade Aviation Department’s new director and CEO, Lester Sola, who tells us more about his plans to improve, develop and grow MIA as a passenger and cargo gateway. Elsewhere in the magazine you can read about airport art and how an ever-increasing number of airports are becoming home to unique and innovative artworks as well as temporary galleries for some of the most famous paintings on the planet. We also hear from ACI World director general, Angela Gittens; look back at ATAG’s recent Global Sustainable Aviation Summit in Geneva; ponder the long-term potential of digital technologies for airports; and discover how audio visual creativity can help enhance the passenger experience. Another action-packed issue of your favourite airport magazine, I hope you agree!

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

AW

3


CONTENTS

In the spotlight: Retail and F&B innovation Airport report: Miami Special report: Airport art ;OLTHNHaPULVM[OL(PYWVY[Z*V\UJPS0U[LYUH[PVUHS

Plus: Digital transformation & Airport integrators

Retail/F&B innovation: Boosting non-aeronautical revenues October-November 2018 Volume 23 Issue 5 www.aci.aero

Issue 5 Volume 23

In this issue 3 Opinion Editor, Joe Bates, reflects on the ever-evolving airport dining and shopping experience in this ‘retail/F&B innovation’ themed issue of Airport World.

8 World in motion ACI reports on the success of the inaugural Customer Excellence Global Summit and launch of a new policy brief which stresses the importance of resilience and encourages airports to develop climate change adaptation plans.

11 View from the top ACI director general, Angela Gittens, considers the role retail/F&B concessions play in raising revenues and boosting passenger satisfaction levels.

12 Right place, right time Director and CEO, Lester Sola, tells Joe Bates more about Miami-Dade Aviation Department’s plans to improve, develop and grow Miami International Airport.

18 Growing the pie How can airport retail remain relevant as shopping patterns change? Aircommerce’s Melvin Broekaart believes that greater collaboration and data sharing between different industry stakeholders are key to its future success.

22 On the menu HMSHost’s CEO, Steve Johnson, provides his thoughts on the type of F&B innovation required to excite and delight travellers in modern airports.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

5


CONTENTS

Director General Angela Gittens (Montreal, Canada) Chair Bongani Maseko (Johannesburg, South Africa) Vice Chair Martin Eurnekián (Buenos Aires, Argentina) Immediate Past Chair Fredrick J Piccolo (Sarasota, USA) Treasurer Arnaud Feist (Brussels, Belgium) ACI WORLD GOVERNING BOARD DIRECTORS Africa (2) Saleh Dunoma (Lagos, Nigeria) Bongani Maseko (Johannesburg, South Africa)

25 The big picture A holistic, sense of place driven approach to airport development can have a hugely positive impact on retail and F&B revenues, writes John Matheson.

29 Open all hours Pop-up stores, news of the retail mix planned for Denver’s Great Hall and sweet shops are on the menu as we turn the spotlight on retail/F&B innovation at airports across the globe.

30 The art show From digital displays, giant sculptures and famous paintings to weird and wonderful exhibitions, Joe Bates reviews some of the most exciting new airport art offerings of 2018.

34 Sight, sound and light show Interactive signage, automated lighting and directional audio can help transform the passenger experience in airport terminals, writes AVIXA’s Brad Grimes.

37 The next big thing? Privatised airports are turning to ‘airside integrators’ to help them reduce costs, increase safety and boost efficiency, writes ICAO safety consultant, Dr Fethi Chebil.

41 The digital transformation John Jarrell, head of Amadeus Airport IT, reflects on the findings of a new report that explores the long-term potential of digital technologies for airports.

43 The future is green Airport World reports on some of the big stories to emerge from the Global Sustainable Aviation Summit in Geneva.

45 Industry news The latest global news from ACI’s World Business Partners and industry associates.

46 People matters Richard Plenty and Terri Morrissey provide their thoughts on how the changing nature of work can impact on our psychological wellbeing.

Asia-Pacific (9) Aimen Al-Hosni (Muscat, Oman) Kjeld Binger (Amman, Jordan) Fred Lam (Hong Kong) Seow Hiang Lee (Singapore) Xue Song Liu, (Beijing, China) Emmanuel Menanteau (Osaka, Japan) PS Nair (Delhi, India) Sasisubha Sukontasap (Bangkok, Thailand) 1 Vacancy Europe (7) Daniel Burkard (Moscow, Russia) Elena Mayoral Corcuera (Madrid, Spain) Arnaud Feist (Brussels, Belgium) Michael Kerkloh (Munich, Germany) Stefan Schulte (Frankfurt, Germany) Sani Şener (Istanbul, Turkey) 1 Vacancy Latin America & Caribbean (3) Ezequiel Barrenechea (Lima, Peru) Martin Eurnekián (Buenos Aires, Argentina) Andrew O’Brian (Quito, Ecuador) North America (7) Lew Bleiweis (Asheville, USA) Joyce Carter (Halifax, Canda) Howard Eng (Toronto, Canada) Deborah Flint (Los Angeles, USA) Joseph Lopano (Tampa, USA) Candace McGraw (Cincinnati, USA) Tom Ruth (Edmonton, Canada) Regional Advisers to the World Governing Board (10) Zouhair Mohamed El Aoufir (Rabat, Morocco) Pascal Komla (Lomé, Togo) Bashir Ahmad Abdul Majid (Delhi, India) William Vanecek (Buffalo, USA) Hector Navarrete Muñoz (Merida, Mexico) Yiannis Paraschis (Athens, Greece) Augustin de Romanet (Paris, France) Brian Ryks (Minneapolis-St Paul, USA) 2 Vacancies World Business Partner Observer Sarah Branquinho (Dufry Group) Correct as of October 2018

6

AIRPORT WORLD/OCTOBER-NOVEMBER 2018


ACI WORLDHEAD NEWS RUNNING

World in motion ACI reports on the success of the inaugural Customer Excellence Global Summit and launch of a new policy brief which stresses the importance of resilience and encourages airports to develop climate change adaptation plans.

T

his year, ACI, in collaboration with stakeholders and partners has made real progress in its priority areas and the global voice of airports is committed to continue on building partnerships and strong ties with aviation regulators and airports around the world. The transition to the 2018 northern fall and winter seasons was headlined by the successful organisation of the first ACI Customer Excellence Global Summit, superbly hosted by Halifax Stanfield International Airport. The event included an ASQ training session, the traditional ASQ Forum as well as the Summit, which was attended by more than 400 delegates from around the globe. One of the highlights was the Airport Service Quality (ASQ) Awards Ceremony sponsored by Aon Risk Solution. It was an appropriate setting for sharing ideas, celebrating successes and for recognising the top performers in customer service according to the passengers themselves. The awards honoured the achievements of airports in 2017 and included 15 first-time winner airports. The event was organised around the theme of ‘Delivering the best experience’, which was a timely subject for airports as they contend with an increase in air travel demand and customer expectations. We are already planning the next edition of the Summit that will allow our members to continue exploring solutions towards delivering the best experience.

New policy brief For aviation as an industry, safety and security remain paramount. Avoiding, minimising and mitigating environmental impacts are increasingly being recognised as equally crucial and a fundamental pillar of the industry. As part of its commitment to maximising the contribution of airports to maintaining and developing a safe, secure, environmentally compatible and efficient air transport system, ACI has recently published a policy brief to encourage airports to conduct risk assessments,

8

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

consider various adaptation measures, and develop mitigation measures for the potential impact of climate change on infrastructure and operations. The Airports’ Resilience and Adaptation to a Changing Climate policy brief was produced to help airport operators better understand the risks related to more adverse and more frequent adverse weather events. It provides guidance in conducting risk assessments to define their adaptation plans for operations and for existing and new infrastructure. The brief includes case studies from airports in Norway, Australia, Hong Kong, Istanbul, the Netherlands and Singapore. It also provides recommendations, and an extensive listing of potential climate stressors and their related potential impact on infrastructure and operations with a non-exhaustive list of airports that have already started to work on resilience and adaptation to climate change. “Improving operational resilience and adapting to the predicted effects of climate change has been a priority for airports around the world for quite some time but recent events have brought this into even sharper focus,” says ACI World director general, Angela Gittens. “It is well understood that climate change could have far-reaching effects and airports are certainly not immune to them. The aim of this policy brief is to provide airports with practical information, advice and real-life examples that they can use to examine their own practices. “Each airport can then make decisions on how they may introduce, improve, or adapt their own procedures and resilience plans that best suit their infrastructure and local conditions.” ACI members passed a resolution on resilience and adaptation to climate change at the World Annual General Assembly in Brussels in June 2018, recognising the potential impact of climate change on airport infrastructure and operations. This policy brief addresses many of the resolution’s intentions. The brief was launched at the Air Transport Action Group’s recent Global Sustainable Aviation Summit in Geneva, where ACI provided an update on its Airport Carbon Accreditation programme. You can read more about both on page 43 of this issue.


ACI WORLD NEWS

ACI events

2018

2019

2019

2019

2019

November 12-14

September 15-17

March 12-14

June 25-27

April 2-4

ACI-LAC Annual Conference, Assembly & Exhibition Miami, USA

ACI-NA Annual Conference & Exhibition Tampa, USA

ACI Airport Economics & Finance, Conference and Exhibition London, UK

ACI Europe General Assembly, Congress & Exhibition Limassol, Cyprus

ACI Asia-Pacific/ACI World Annual General Assembly, Conference & Exhibition Hong Kong

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

ACI Asia-Pacific Patti Chau Regional Director Hong Kong SAR, China Tel: +852 2180 9449 Fax: +852 2180 9462 info@aci-asiapac.aero www.aci-asiapac.aero

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

ACI Latin America & Caribbean Javier Martinez Botacio Director General Panama City, Panama Tel: +507 830 5657/58 jmartinez@aci-lac.aero www.aci-lac.aero

ACI Europe Olivier Jankovec Director General Brussels, Belgium Tel: +32 (2) 552 0978 Fax: +32 (2) 502 5637 danielle.michel@aci-europe.org www.aci-europe.org

ACI North America Kevin Burke President & CEO Washington DC, USA Tel: +1 202 293 8500 Fax: +1 202 331 1362 postmaster@aci-na.org www.aci-na.org

As of January 2018, provisional figures show that ACI serves 641 members operating 1,953 airports in 176 countries. ACI is a non-profit organization whose prime purpose is to advance the interests of airports and to promote professional excellence in airport management and operations. According to preliminary statistics, in 2016 airports worldwide welcomed 7.7 billion arriving and departing passengers and handled 110 million metric tonnes of cargo and 92 million aircraft movements.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

AW

9


ACI VIEWPOINT

View from the top ACI director general, Angela Gittens, reflects on the role retail/F&B concessions play in raising revenue and boosting passenger satisfaction levels.

I

n business, the relationship between customer satisfaction and revenue is crucial and this relationship has long been fundamental in the analysis of airport business performance. In this competitive environment, airports face increasing pressures to improve efficiency and diversify their product and service offerings while continuing to maintain the highest levels of safety and security. As airports have limited opportunities to raise aeronautical revenue, a focus on non-aeronautical revenue has become an imperative to maintain operations and accommodate growth in air service demand. This source of revenue may be derived from rents received from or fees charged to companies offering a wide range of services to passengers, including retail, food and beverage, banking, advertising, car parking and car rentals. Worldwide in 2016, retail concessions remained the leading source of non-aeronautical revenue for airports, representing 28.8% of non-aeronautical revenue. Car parking revenue and property revenue/rent followed retail concessions as the next largest sources of non-aeronautical revenue at 20.5% and 15% respectively. Retail marketing specialists have long demonstrated a clear relationship between customer satisfaction levels and the propensity to spend. As non-aeronautical revenue streams become an increasingly important focus for airports so the potential link between passenger satisfaction and non-aeronautical revenue demands closer investigation, opening the potential for a powerful new strategic approach to raising non-aeronautical revenue performance. The ACI Airport Service Quality (ASQ) programme assesses customer service perceptions through the airport industry’s most sophisticated measure of customer satisfaction, creating a platform for detailed analysis of the influence of service levels on non-aeronautical revenue performance. Supplemented by ACI’s annual Airport Economics Report, analysis of this uniquely comprehensive data demonstrates the existence of a positive relationship between a clearly defined series of customer service variables and the growth of non-aeronautical revenue. The ACI research entitled ‘Does passenger satisfaction increase airport non-aeronautical revenues?’ shows that there is a positive link between overall passenger satisfaction and non-aeronautical revenue. On average, when satisfaction increases by 1%, nonaeronautical revenue increases by 1.5%. The correlation was stronger than that of adding retail space or an increase in the number of passengers. This suggests that if airports invest in satisfying the service expectations of passengers, everything else being constant, passengers would spend more. The 2018 Airport Economics Report suggests that, on average, non-aeronautical revenue generates as much as 40% of an airport’s

total revenue. Within this category, the Middle East continued to have the highest proportion of non-aeronautical revenue attributed to retail concession at 56%, followed by Asia-Pacific at 41.6%. The fastest growing non-aeronautical revenue category in 2016 was F&B with 11.2% growth. Based on the latest ASQ Departures survey scores relating to ‘Restaurant/eating facilities’, ‘Value for money of restaurant/eating facilities’, ‘Shopping facilities’, and ‘Value for money of shopping facilities’, we see the following: • Restaurant and eating facilities consistently score the best among the four items of interest at global level. • Value for money of the shopping facilities has seen the biggest increase in satisfaction at global level. • From a regional perspective, Asia-Pacific is where the satisfaction increased the most and consistently among all four items while Europe and Middle East remained relatively stable with slight increases in score, for all four items. • In Asia-Pacific, it’s the shopping facilities item that obtained the highest score closely followed by restaurant and eating facilities. After all, every flight begins and ends at an airport and there is no better experience than indulging in a quick bite or savouring a delicious meal. Airport food and beverage sales have yet to reach saturation point and this area of the airport business represents an opportunity for operators and suppliers. And despite the rise of e-commerce, airports can’t lose sight of the physical shopping experience. AW

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

11


AIRPORT REPORT: MIAMI

Right place, right time Director and CEO, Lester Sola, tells Joe Bates more about Miami-Dade Aviation Department’s plans to improve, develop and grow Miami International Airport.

A

t first glance, February’s appointment of Miami-Dade Water and Sewer Department director, Lester Sola, to the position of director and CEO of the Miami-Dade Aviation Department (MDAD) seemed a strange one. There was certainly no doubting his management credentials as when he was director of the largest utility in the south eastern United States, Sola was responsible for providing high-quality drinking water and wastewater disposal services to more than 2.3 million residents, businesses and visitors daily. He managed more than 2,700 employees, had an annual operating budget of $796 million, and led a $13 billion capital investment programme, the largest in the history of Miami-Dade County. But, crucially, what did he know about airports and more specifically MDAD’s jewel in the crown, Miami International Airport (MIA)? Well, the answer may surprise you, as Sola is not only familiar with MIA having used it for most of his life and been an employee of airport operator, Miami-Dade County, for more than 26 years, but he has actually worked at it twice before on different projects. In fact, his background meant that he already knew most of MIA’s senior managers, and was aware of what needs to be done to make the airport even more successful, long before moving into the hot seat on February 16, 2018, making him the perfect man for the job.

12

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

“Having achieved the goals in my previous assignment, the chance to come back to Miami International Airport as director was an experience and an opportunity I couldn’t pass up,” enthuses Sola. “Nobody had to bring me up to speed with Miami International Airport as I know it very well having spent my entire career with Miami-Dade County. My first job was at the airport and this is the third time I have worked here, so my perspective is a little different to previous directors who didn’t have my knowledge and experience of MIA and had to transition into the role. “Having previously worked alongside many people I now call my colleagues was also an advantage as we didn’t have to go through the normal process of getting to know each other, and I already knew their the strengths and abilities. “I also consider that being familiar with the style of government we operate under is a positive, particularly when it comes to building support from our board of directors, which for us is a board of county commissioners.” So how have the first nine months gone? “I am enjoying it and think that with traffic rising, a number of new route launches, and MIA celebrating its 90th birthday in September, it’s been a good 2018 for the airport,” he says.


AIRPORT REPORT: MIAMI

Sola power: Lester Sola takes to the podium during Miami International Airport’s recent 90th birthday celebrations.

Leadership style An often overused expression in management is ‘my door is always open’, and invariably this doesn’t turn out to be the case. However, when Sola uses it, and in the same breath notes that he likes to be visible and can often be seen walking through the terminal talking to staff, you tend to believe him. He describes his management style as “very easy going for the most part, but objective driven and highly intent on achieving my goals.” “I tend to be approachable, walk a lot, and talk to everyone in the entire spectrum of the organisation to get a feel for different perspectives and learn how we’re doing and what areas we need to improve upon,” says Sola. “In my previous role with the Miami-Dade Water and Sewer Department, for example, I would often go out on site to see for myself what was going on and whether there was anything I could do to make life easier for people. You tend to learn more by getting direct feedback from staff rather than receiving filtered, second-hand information. “Outside people may misinterpret this kindness and openness as a weakness, but for me it’s actually a significant strength that I use to drive information from different sources to basically establish a plan forward that will allow us to continue to improve this airport and maintain a competitive advantage.” He accepts that not everyone will like his refreshingly open and honest approach, as some people are naturally wary of change, but says that the reaction to it to date from MIA staff has been overwhelmingly positive, with some long-serving employees revealing that he is the first airport director they have talked to in 35 years.

Biggest challenges and opportunities Sola believes that in many ways MIA’s biggest strength, its enviable route connections to Central and South America and the Caribbean, also

presents the Florida gateway with its greatest challenge as economic downturn in any of these regions has a significant impact on traffic. To put this in perspective, today, 23 airlines operate non-stop routes to 81 destinations in Mexico, Latin America and the Caribbean (LAC). The total ensures that MIA accounts for 79% of the US market with LAC. Indeed, MIA is North America’s undisputed hub for passengers travelling between the US and Latin America. During 2017 the airport handled 43% of the US-South American passenger market, 22% of the US-Central American market, and 23% of the US-Caribbean market. All ensure that MIA is the largest connecting point for flights between the Americas and for flights between the Americas and Europe. So, when economies across the LAC region are doing well, MIA invariably does well as more people tend to travel more often. However, it is exactly the reverse during recessions, with the airport inevitably feeling the pinch during the hard times, such as the recent economic downturn in Brazil. “While geographically, language, and the ease of conducting business in Miami really lends itself well towards the region where we are dominant, we are vigorously looking to expand our route network to the rest of the world to make us less exposed to economic downturns across Latin America and the Caribbean,” admits Sola. The recent addition of a new route to Milan (Air Italy), imminent arrival of Canadian low-cost carriers Flair (Edmonton, Winnipeg, Toronto) and Sunwing Airlines (Montréal, Quebec City, Toronto, Ottawa), increased frequency on the Copenhagen route (SAS), and announcements that LOT Polish Airlines and Royal Air Maroc intend launching new services to Warsaw and Casablanca respectively next year, would indicate that the plan is working. As a result of this strategy, Sola notes that MIA is currently served by over 100 airlines that between them offer non-stop services to 156 destinations in 60 countries across the globe, including 15 in Europe.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

13


AIRPORT REPORT: MIAMI

“We are actively pursuing new opportunities in Asia as it is an important, yet relatively untapped market for us,” reveals Sola. “A few years ago, we had no direct flights at all, but now we have several cargo flights operating year-round services.” The all-cargo services operated by a combination of Asiana Airlines, Cathay Pacific, China Airlines, Korean Air, Polar Air and Southern Air, essentially import technology into MIA for onward distribution to LAC and export food and perishables such as seafood and flowers from the region back to Asia-Pacific. “The next step is the introduction of passenger services from Asia to MIA that will allow passengers to interconnect through our network to South America,” he says. “It hasn’t happened yet, but we are working on it.” On route development in general, he notes: “It is an ongoing endeavour to pursue the airlines to persuade them to launch new routes. We have a dedicated team whose mission is to make this happen, and one of the ways they do this is by putting business cases to the airlines and showing them that the choice of coming to MIA is a profitable one.” The range and variety of new routes, and the operators themselves, which include legacy carriers, low-cost carriers and cargo airlines, arguably provide the best endorsement of MIA’s route development success.

Traffic mix MIA’s extensive route network to the LAC region and growing number of destinations elsewhere means that it more or less enjoys a 50/50 split between domestic and international traffic. São Paulo, London, Buenos Aires, Mexico City and Lima are among the most popular international destinations served from MIA, which handled nearly 60% of the international visitors to Florida last year. The bulk of passengers welcomed at MIA travel with hub carrier American Airlines, which accounted for around 67% of the 44 million passengers to pass through the gateway in 2018. After American and American Eagle, other big players at MIA in terms of market share include Delta, United, Frontier and LATAM Airlines. New York is the busiest domestic route served from MIA followed by Atlanta, Chicago, Dallas/Fort Worth, Los Angeles and Washington DC. American 100% occupies the North Terminal while the Central and South terminals are a mix of different airlines, with big US carriers Delta and United located more in the southern portion of the airport complex and many international carriers flying into the Central Terminal. “Our ability to provide as close to a 50/50 mix between domestic and

14

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

international traffic as you are going to find, and range of destinations served, has proven very beneficial as it ensures quick and easy connections across the US or to LAC and beyond,” notes Sola. The upturn in passenger numbers has also been boosted by a booming local economy and rising population in Miami-Dade County, which now exceeds 2.7 million people, many of which regularly use domestic services out of MIA for business trips. In general, passenger numbers have been on the increase since 2004, although the annual total did dip slightly in 2017, due to the impact of Hurricane Irma. Sola explains that in addition to grounding flights when it hit Southern Florida in early September, it forced the airport to wind down operations three to four days before it struck and it then took the equivalent time for everything to return to normal after it passed.

New infrastructure Sola is currently working with his management team on a new master plan for MIA, which he hopes to present to his board of county commissioners before the end of 2018. He reveals that it will involve investing more than $4.5 billion on infrastructure improvements over the next five to ten years to ensure that MIA is equipped to meet future demand. “We are not just looking at the terminals, we are looking at the entire footprint of MIA and our general aviation airports,” he tells Airport World. “We will be making significant investments in cargo operations and increasing the capacity of the terminals and their ability to handle new versions of aircraft.” This will involve expanding the North Terminal to allow for the addition of more gates and the modernisation of the Central Terminal and its Concourse F to make it more operationally efficient and customer friendly. He notes that MIA has the airfield capacity to accommodate around 80 million passengers per annum with its existing runways, so the airport is not looking to add any new ones for now. Away from MIA, Sola reveals it is likely that one of Miami-Dade’s four general aviation airports will be transformed into a cargo gateway.

New technology Sola believes that new technology will also play a significant role in enhancing the passenger experience and raising MIA’s capacity, so the


AIRPORT REPORT: MIAMI

MIA, located about seven miles north of downtown Miami, handled a record 2.24 million tons of freight in 2017.

airport is determined to remain at the cutting edge when it comes to IT innovation. He reminds me that in February, MIA’s Concourse E became the first in the US to exclusively use biometric facial recognition technology to screen all passengers arriving on international flights, and that this has allowed US Customs and Border Protection to process up to 10 passengers per minute. The technology, says Sola, will soon be rolled out across the airport in collaboration with MIA’s federal partners. Its determination to be at the forefront of technological innovation also recently led the Transportation Security Administration (TSA) to name MIA as one of only two US airports to be selected as test sites for emerging perimeter intrusion detection and deterrence security technologies. All the technologies trialled at MIA have been developed and tested in other high-risk transportation and public area venues. The lessons gained from the pilot programme in the airport environment could be replicated by the TSA nationwide. “We look forward to being on the frontline of this cutting-edge security technology,” enthuses Sola. “Opportunities like this, which assist us in providing a safer and more efficient airport for passengers and business partners alike, will always be welcomed with open arms.”

Cargo Boosted by a number of new freighter services and a rise in bellyhold shipments on scheduled passenger services, the US’s top airport for international cargo handled a record 2.24 million tons of freight in 2017. And the upturn is expected to continue this year with the 3% rise in volumes in the year to date perfectly in line with the expected annual increases of around 3% to 4% over the next few years. MIA benefited from three new international cargo carriers last year (Qatar Airways, TACA Peru and Aeronaves TSM) and they were recently joined by Ethiopian Airlines, which launched twice weekly B777-200 freighter services to Addis Ababa in August. Sola is confident that things can only get better for cargo and believes that the US Department of Commerce’s decision to designate

16

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

Miami International Airport’s entire 3,230-acre site as a Foreign Trade Zone will make Miami-Dade County an even more attractive place to do business. The decision allows existing or prospective airport tenants to operate manufacturing, warehousing and/or distribution centres on airport property, and have their federal tariffs deferred, reduced or eliminated – providing time and cost savings for approved importers and exporters. As a result, companies handling high-traffic commodities at MIA such as pharmaceuticals, electronics, textiles, footwear, auto parts, aircraft parts, avionics, machinery equipment, consumer goods and perishables are expected to make up the bulk of the FTZ’s tenants. MIA boasts a total of 18 dedicated cargo buildings today and these will be added to in the near future as Sola admits that the airport is already having to turn away consignments because it simply doesn’t have the facilities to handle any more freight.

Customer service MIA hasn’t yet joined ACI’s Airport Service Quality (ASQ) customer satisfaction benchmarking programme, but this certainly doesn’t mean that providing a good airport experience is a low priority for the airport. Indeed, Sola insists that it is a top priority for MIA and believes that everyone at the airport, and not just frontline staff, are an ambassador for the airport and have a role to play in ensuring that Miami International Airport is one of the most welcoming in the US. “We are often the first and last impression people get of Miami and therefore take customer service very seriously,” he says. “We work with JD Power and a number of other consultants to measure our performance today, and how we can improve our operations in the future. “If you are an aviation employee at the airport or report to me then you have a part to play in ensuring a good experience for passengers and visitors to MIA. It doesn’t matter if it’s not your job. If you see someone lost in the terminal, stop and help them out. If you notice that the toilets need cleaning, tell someone. We are all in this together.” Sounds like MIA is in good hands to me.

AW


SPECIAL REPORT: RETAIL/F&B INNOVATION

Growing

the pie

How can airport retail remain relevant as shopping patterns change? Aircommerce’s Melvin Broekaart believes that greater collaboration and data sharing between different industry stakeholders are key to its future success.

I

t might be hard to believe considering that many gateways appear to have turned their terminals and concourses into shopping malls over the last few decades, but airport retail, and in particular duty free shops with their tax free benefits, are in danger of being undermined by e-commerce and changes to the way we shop.

 Despite the rosy picture painted by annually increasing commercial revenues, essentially caused by rising passenger numbers, passenger spend is actually declining in most parts of the world. Travel retail will continue to evolve, of course, and airport operators will face challenges as they address a highly competitive marketplace and adapt to changing consumer behaviour and expectations. Innovation in technology, for instance, has fundamentally changed the way businesses function and work with each other. Especially in retail. It’s no surprise then that the nature of competition has changed, driven by companies expanding their offerings along with diversifying and innovating in new sectors. 

Technology giants such as Google, Alibaba and Amazon are constantly moving into new areas meaning that passengers at airports – historically considered to be a captive audience – are suddenly being reached with commercial offers directly on their mobile devices while travelling. 
You only have to look at the effect technology has had on conventional travel agents – which have practically been driven out of business by online travel agencies – and the demise of high street retail across the globe to see the impact e-commerce can have on worn-out business models and ignorance. And with customer-journey influencing decisions being made at board level every day presenting IT innovation as the solution for everything, the effect of new technology on our travel retail industry should not be underestimated. Any analysis of the health of the travel retail sector requires an assessment of the passenger journey and the ability to adapt and collaborate with other stakeholders in the chain.

18

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

Competition in travel retail comes not only from the neighbouring players in your space but also from those in other sectors who see an opportunity. Think of Uber (Eats) bringing a passenger to the airport together with a take away meal, and Amazon installing pick-up lockers at airports, as examples of the many businesses turning their attention to airports. 

 However, this can be viewed as a threat or as a motivation to collaborate and create a bigger pie for everyone to have a piece of. Airport retail and F&B operators should be their own greatest competition and be willing to disrupt themselves before someone else does.

Embrace the value chain The frequently preached, but rarely practiced trinity business approach (brands, airports and airport operators working together) is a step in the right direction, but contains just a fraction of the collaboration partners needed to truly make a difference in today’s connected world. The customer journey of the average passenger touches upon 8 to 10 collaboration partners, ranging from online travel agencies, ground transportation and airlines to airports, retailers and F&B operators. However, all work more or less individually with the same passenger during the same journey. They individually extract data during contact and then shield it from others to safeguard imaginary potential revenues coming from ‘their’ passengers.


SPECIAL REPORT: RETAIL/F&B INNOVATION

But this might all be about to change as competition forces all stakeholders within the passenger’s journey to get closer to their customers. Without doubt all sides will benefit from abandoning their adversarial relationships and building a bond of collaboration. Competition creates win-lose scenarios, but collaboration benefits us all. What is clear is that commercial interaction with a passenger should not only start from the moment they enter the airport. Contact should have been made way in advance and preferably year-round, guaranteeing a hyper-personal and relevant commercial experience. 

Indeed, pre-journey, all stakeholders should be embraced as business partners to provide an outstanding and highly appreciated commercial performance.

Collaboration is the key We have arrived at a point in time where stakeholders can analyse and act upon the huge amount of data that customer interactions create. In its simplest form, this is what everyone has been calling personalisation, but it could be so much more. For example, Amazon made huge waves with its Anticipatory Shipping patent that predicts which products consumers will buy and ships them to a nearby hub, anticipating the purchase and allowing for delivery within the hour. Innovations like these tap directly into what people want – immediate, exceptional and personalised customer service that goes

far beyond marketing and, in our industry, is only within reach when stakeholders collaborate to get closer to customers, providing more choices and superior service. Getting this right will result in ‘growing the pie’ for everyone instead of just growing their own piece at the cost of others. Let’s be honest, mistrust among stakeholders creates inconvenient and outdated passenger journeys and allows third parties from outside the airport industry to benefit. Take for example the way we, as an airport industry, develop apps for passengers. Based on standard smartphone behaviour, it is highly unlikely that anyone will add more than a handful of travel apps to their smartphone let alone use them, and the truth is that many of them, according to Google Insights 2018, are abandoned or never even used. Yet we expect travellers to download separate apps for each individual airport, airline and travel retailer that they connect with on their journey. Collaboration between passenger journey stakeholders may sound far-fetched, but according to ATKearney, it’s already happening on a small scale courtesy of ‘virtual vertical collaboration’, which essentially involves a changing combination of passenger journey stakeholders acting as though they are about to merge to create the efficiencies that come with merger integration. As a result, they abandon their adversarial relationship and go beyond secrecy and distrust to build a bond and make mutually beneficial business decisions.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

19


SPECIAL REPORT: RETAIL/F&B INNOVATION

Let’s start winning as a team, and protect ourselves from losing as individuals

Think of an airline sharing arrivals data inflight with ground transportation parties like Uber or the airport express so that disembarking passengers know the easiest and most convenient way to continue their journey. An added extra could be including a home-delivery opportunity for their luggage. Or how about landlords widening their business approach to include new ways of driving valuable traffic to airside retail and F&B locations by actively working together with online travel agencies to offer passengers the chance to purchase fast lane access through security just an hour before arriving at the airport? It is all too easy to forget that airport retail and F&B is one of the only physical retail channels in the world where we know who is coming in advance of their arrival. If we collaborate, all we need to do is listen to share this information. And why don’t airport operators work together more across the concession categories? For example, why not share a special-offer for

20

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

fashion when making certain liquor purchases or offer two coffees for the price of one at a conveniently located outlet to passengers spending a certain amount on retail?

Transparency and winning as a team Collaboration is not new. It is just rarely practiced in our industry. The value of virtual vertical collaboration lies largely in the perspective that transparency leads to insights about how to integrate more efficiently and create team wins rather than individual ones. Although a collaborative effort can seem complex, it’s really not difficult. What is difficult, however, is making the first move: deciding to engage in such an endeavour and systematically finding the right partner(s) with the right strengths to create a mutually beneficial alliance. This requires a profound level of trust and is not something done with just any company. You need to know with absolute certainty that your objectives are mutual, and sometimes having a facilitating independent third-party as intermediary helps to create this trust and to actually start collaborating. Let’s start winning as a team, and protect ourselves from losing as individuals. As Abraham Lincoln famously said, the best way to predict your future is to create it.

About the author Melvin Broekaart is founder and CEO of Aircommerce Group (aircommerce.com), a global travel retail firm that includes airports, airlines, operators and brands as clients. He can contacted at melvin@aircommerce.com

AW


SPECIAL REPORT: RETAIL/F&B INNOVATION

On the menu

HMSHost’s CEO, Steve Johnson, provides his thoughts on the type of F&B innovation required to excite and delight travellers in modern airports.

A

s we head towards 2019, there are key things everyone at HMSHost and many of our culinary colleagues can agree on. This is the fact that dining choices and quality have gained power over time and the term ‘foodie’ is not a fad. Cities across North America continue to follow the trends of major metros like Chicago, New York, and Los Angeles with flourishing food scenes and explosions of new food cultures in their restaurants. These trends are marked by resurgences of regional traditions and the imperative to create genuine culinary experiences. As a global restaurateur, HMSHost works to transport that dining revolution from each city into the airport. Our transformation in food and beverage is also rapidly evolving alongside airports as they push to modernise at a global pace. With these swift developments, HMSHost is tasked with developing the right mix of restaurants for travellers while also ensuring the right fit for various airport models from traditional master concessionaire to developer models and fractured terminals. HMSHost is equipped to meet this challenge with a business and operations team that continues to adapt while leading dining trends for travellers and concentrating our efforts on innovation, sustainability, and exceptional guest service. The pillars of excellence for innovation, sustainability and service have been shaped by today’s modern travellers that want to be empowered to choose every aspect of their dining experience. This is why we focus on providing the choices they want including local fare, mindful options and convenient order and pay solutions that are paired up with beautiful restaurant design and modern amenities like charging stations to create an ‘oasis’ for the passenger. With today’s technology advancements, people are accustomed to levels of convenience unheard of a few years ago. Processes like ordering and picking up food are advancing rapidly, so we offer options for a meal to be ordered either directly from our team, via the Host2Coast mobile app, from self-service kiosks, or from mobile point-of-sale solutions that move around the terminal to enable passengers to stay put while their food comes to them at the gate. We see the future as a place where ordering food ahead of time on your mobile device will be as seamless as using a mobile boarding pass is today. The ability to achieve business success while leading dining trends in various airports is also tied to the broader efforts over recent years

22

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

that have helped create the elevated, and still expanding, airport dining environment. Dining in airports today is about an immersive, cultural experience that is focused on the opportunity to experience the local culture through food. Currently this trend can be seen taking shape with the restaurants that HMSHost will open in Detroit Metropolitan International Airport. The culinary character of Detroit, for example, will be alive in the airport with Anita’s Kitchen Lebanese Café, which is the Southeast Michigan’s premier Middle Eastern restaurant; Cantoro Italian Market Trattoria, a storied family-owned and operated market and restaurant with a 40-plus year history in Detroit; and the Jolly Pumpkin Taphouse. In the near future, these restaurants will transport travellers all around the city to places they may not have been able to see during their trip. We know that passengers want these types of genuine culinary experiences because it adds immense value to their trip through the discovery of the charm and personality of a city. This trend is commonly referred to as ‘sense of place’ and, increasingly, HMSHost is creating restaurants that enhance the very definition of the trend with multisensory experiences that showcase the smells, flavours, and visual design elements of a city, region, and local brands. The ability to eat local is important to travellers and within every airport there exists a unique opportunity to immerse passengers in the local food scene.


SPECIAL REPORT: RETAIL/F&B INNOVATION

A great example of a food immersion concept is the forthcoming Boston Public Market in Boston Logan International Airport where passengers will have direct access to premier local products and vendors in a large food hall space. The scale of Boston Public Market’s product and vendor line up is unparalleled in an airport and will serve as one of the foremost examples of a collaborative local dining project. The availability of mindful choices is another massive movement for business success that HMSHost is driving with the wellness initiative, ‘Eat Well. Travel Further’. Offering healthful eating options in airports of all sizes is actually more than a trend, it is a necessity; it is a demand more travellers will make as awareness grows around food efficiency and the impact of the choices we all make every day. ‘Eat Well. Travel Further’ is a commitment to providing options for health-conscious travellers with wholesome ingredients, products, and flavours to fuel their journey. The initiative is bringing refreshing new options to market with culinary offerings like meal and snack lifestyle bento boxes such as the Paleo Lunch Box and the Protein Lunch box – all under 500 calories with no artificial colours, flavours or sweeteners and no hydrogenated fats or high fructose corn syrup. Additionally, one of the most powerful ways that we do business in airports is by working with nearly 100 exceptional Airport Concessionaire Disadvantaged Business Enterprise (ACDBE) partners.

With this programme, HMSHost provides our partners with a platform and the resources to successfully implant local businesses into the intricate world of airport operations. A full spectrum of ACDBE partnerships exists at HMSHost, ranging from joint venture agreements, sub-leased contract space, and supply chain contracts. Indeed, HMSHost’s ACDBE partners make up a significant portion of overall industry operations in North American airports, generating annual average revenues of over $3 million individually or more than $400 million altogether. As a company greatly invested in the future of food, we are dedicated to working with partners across the industry to continue implementing innovations in airports including the ability to create the best local food hall in an airport terminal with Boston Public Market, introducing the next evolution of ‘Eat Well. Travel Further’ and implementing new technologies to improve operational and service efficiency. HMSHost has developed creative offerings that stay on trend and keep our pillars of excellence in focus, while working within an ever-evolving airport business environment. There is a great deal of passion being poured into our business today in order to continue to set the bar for airports as dining destinations. With this mindset, and the perpetual exploration of innovations that are revolutionising choice for travellers, we hope to continue to help all passengers feel good on the move.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

AW

23


SPECIAL REPORT: RETAIL/F&B INNOVATION

The big picture A holistic, sense of place driven approach to airport development can have a hugely positive impact on retail and F&B revenues, writes John Matheson.

A

t this year’s ACI World annual Assembly, Conference and Exhibition in Brussels, an airport leaders’ symposium shared a broad consensus that airport branding is a key weapon in the battle to differentiate the airport. “Each airport is a destination in its own right and each one is different,” commented Fred Lam, CEO of Hong Kong International Airport and second vice president of ACI Asia-Pacific’s Regional Board. Today’s travellers are increasingly demanding of the airport experience and are seeking not only a higher level of customer service but also a stronger experiential aspect across the whole airport journey – and they expect each airport to offer something uniquely different. Many airports are addressing this challenge by developing a stronger ‘sense of place’, using not only the design of the airport spaces but a broad portfolio of factors that help the airport to share its own unique personality with the traveller. Although to be fully effective the strategy needs to be holistic across the airport, an airport’s retail space offers the most powerful opportunity to not only deliver customer needs but also to help differentiate the airport and enhance its unique sense of place. In doing this there is also huge potential to boost retail and F&B’s contribution to an airport’s non-aeronautical revenues. Rio de Janiero’s Tom Jobim International Airport is among the best examples of this in Latin America-Caribbean, having adopted a range of elements that express the vibrant personality of Rio across the airport. “A genuine sense of place is integral to our terminal development programme and the quality of the passenger journey,” says Gabriel França, Riogaleão’s commercial and corporate director. “The revamped Terminal 2 and the new South Pier have a lot of the city’s ‘carioca’ way of life and references to Rio’s landscape.

“For the interior design, the materials and colours selected represent the spirit of Rio de Janeiro. The use of green tones is inspired by the city’s mountain backdrop, the wood represents the forests, and the use of exposed concrete brings us back to the roots of Brazil’s strong history in Brutalism architecture, which is core to the airport’s original design. “The Carioca Street recreates the streetscape in Rio de Janeiro and many of the favourite places in the city and showcases some of the top brands from Brazil and Rio. “We want the traveller to experience a sense of place across the whole airport, so it needs to incorporate a mix of elements such as architecture and interior design to a stronger presentation of local brands so that we share a genuine flavour of Rio and Brazil. For example, our latest initiative has transformed the arrivals area into a corridor of Brazilian culture with works from artists from across Brazil. Right across the airport our passengers know exactly which city they are travelling through, it’s unmistakably Rio.” Designers of terminal interior space are using themes that reflect the location through aspects such as local culture, history, heritage and natural beauty to create unique locations. This is all done with a clear focus on the commercial return. In fact, the design is often combined with smarter terminal space planning, such as the repositioning of facilities like security and check-in to enhance passenger flows, and the adoption of walkthrough stores to draw more passengers to shop. Robbie Gill, managing director of airport retail design specialists The Design Solution, comments: “The key to successful design is to combine great looking spaces that share engaging local stories with highly effective planning of how the space works, especially regarding passenger flow.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

25


SPECIAL REPORT: RETAIL/F&B INNOVATION

The Dufry Tequileria outlet at Cancún International Airport is a great example of sense of place retail and created quite a buzz in the industry.

“It’s essential that the traveller encounters authentically expressed local themes and stories – which can be shared through factors such as the design of the space and the local products on display – but a stunningly beautiful store is pointless if footfall isn’t guided to it. “Whether it’s major hub or a small regional airport the design must draw passengers to the key retail spaces, driving nonaeronautical revenues for the airport and maximising its return on investment on terminal developments.” A key advantage of this strategy is that it can be adopted by airports of any size; which means that regional airports can aim to create a unique retail experience that not only expresses a persuasive sense of place but is also commercially effective. Major hubs such as Singapore Changi and Hong Kong International Airport have led the way in developing a holistic sense of place that reaches every aspect of the airport journey, but smaller airports are now able to adopt similar strategies with great effect. The trend is perhaps strongest across Europe, including recent new developments at Toulouse, Nice and Wroclaw airport. Nice Côte d’Azur Airport, for example, undertook a radical expansion of retail space that included a major emphasis on sense of place and the airport now expects to double its commercial turnover in the period from 2015 to 2019. The new walkthrough duty free store launched earlier this year at Tallinn International Airport provides another powerful example of the effectiveness of this approach for a relatively small airport (less than five million passengers). The Tallinn store design blends traditional elements of Estonian culture with leading edge technology and has an emphasis on local natural materials. Piret Mürk-Dubout, CEO of Tallinn Airport, emphasises the airport’s all ecompassing approach to the customer experience and its role in brand building, which she sees as increasingly vital for all airports: “Our whole airport is a concept, we really want to develop not only our brand building but also Tallinn as a destination. The design of the retail space is integral to the airport’s pledge to be ‘the world’s cosiest airport’; it’s cosy – with a commercial edge.

26

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

“In a way we are even branding nature into the passenger journey by making Estonia’s natural heritage, especially the forests, as the central focus of our new store’s design. This resonates with our passengers; it catches their attention, drives footfall and conversion and brings them back to us.” In Mexico, Cancún International Airport has radically updated its retail and F&B spaces, integrating a powerful expression of the city, including design themes that reflect the city’s beachfront and its famous colourful beach sign and give visitors an engaging link between the city and the duty free store. Grupo Aeroportuario Del Pacífico (GAP) – operators of 12 airports across Mexico – are planning to inject strong sense of place elements in their development plans, including developments for Los Cabos International Airport and Miguel Hidalgo y Costilla Guadalajara International Airport. In the Caribbean, the next phase of development at Sangster International Airport will see a radical new expression of the airport’s sense of place, not only in the retail spaces, but across the whole airport, incorporating a series of local themes into its redevelopment plans for much of the terminal. This will include the natural beauty of the islands and cultural elements such as music and heritage. Elsewhere, the development plans at Bermuda LF Wade International Airport, currently handling around 860,000 passengers per annum, demonstrate that sense of place is an opportunity for airports of absolutely any size. The initial planning for the airport’s new terminal (dues to open in 2020) blends intensive commercial strategies with design elements that reference classical Bermudian architecture, walls styled to represent the island’s coral reefs and displays of local art. By sharing the unique personality of its location and expressing a true sense of place, every airport has the opportunity to create a stronger customer experience that not only delights the traveller but also strengthens an airport’s non-aeronautical revenue performance. Every airport is a destination in its own right, but the airports that share their stories are the ones that travellers will want to return to and spend more time and money at enjoying themselves.

AW


SPECIAL REPORT: RETAIL/F&B INNOVATION

Open all hours Pop-up stores, news of the retail mix planned for Denver’s Great Hall and sweet shops are on the menu as we turn the spotlight on retail/F&B innovation at airports across the globe.

I

t seems that pop-up retail is going upmarket following the opening of a Giorgio Armani beauty outlet at Sydney Airport and a Louis Vuitton boutique at London-Heathrow. The Armani store, called Armani Box and opened in partnership with HEINEMANN Tax & Duty Free, features a curated edit of the Giorgio Armani make-up collection and is housed within a striking pop-up that comes complete with its own red gorilla! Sydney Airport’s general manager for retail, Glyn Williams, said the Armani Box outlet is a highly unique pop-up concept that reinforces Sydney Airport’s retail strategy to secure one-of-a-kind experiences for passengers to enjoy. “Having recently been one of only three locations in Asia-Pacific to showcase the Maison Christian Dior collection at T1, we’re thrilled to welcome another Australian first with the Armani Box, an exceptional concept that adds a serious level of theatre to our passenger’s journey,” he enthused. By the time you read this story, it is highly likely that the Louis Vuitton pop-up store in London Heathrow’s Terminal 4 will be have gone, not because it wasn’t popular, but because it is due to be replaced by a new permanent store opening in November. The 20sqm pop-up was inspired by the ‘My LV World Tour Collection’ that pays homage to Gaston-Louis Vuitton’s private collection of destination stickers. Giant monogrammed name tags alongside stickers of famous monuments and landmarks adorned the store’s see-through façade, referencing labels from the 1930s that were originally affixed to trunks and luggage to symbolise the art of travelling and exploration.

Denver’s Great Hall Local offerings that highlight Denver’s diverse mix of retail, coffee and F&B outlets are among the first concessions to be selected for Denver International Airport’s revamped Great Hall.

They include Jax Fish House & Oyster Bar, The Post Brewing Company, Caribou Coffee, Kabod Coffee, Denver Street Eats – a restaurant concept from Delaware North, Trugoy Group and Big Country’s Bar BQ – and retail and convenience store 5280 Market. “Jax Fish House & Oyster Bar and The Post Brewing Company represent Denver favourites, and Denver Street Eats will provide a rotating, local chef-showcase concept, while Kabod Coffee is a great local entrepreneur story,” enthuses Ignacio Castejon, CEO of Great Hall Partners, which is spearheading the transformation of the Great Hall, essentially the area under the tents of the airport’s Jeppesen Terminal.

Sweet success Hong Kong International Airport is now even more colourful and appealing following the opening of an innovative new confectionery outlet containing eight sweet shops. SWEET DREAMS by HEINEMANN covers an 820sqm area in Terminal 1, which the duty free operator says “focuses on sweet temptations”. Each of the eight shops, ranging in size between 57sqm and 186sqm has been designed according to an “extraordinary theme” ranging from the colourful diversity of a mysterious underwater world to the magic world of a bustling fair. While entertainment such as 3D shows, chocolate printers, virtual reality entertainment and games for children engagement are designed to engage and delight visitors. “We want to redefine the possibilities of presenting confectionery with our concept and create a really fun shopping ambience that inspires and captivates our customers,” enthuses Heinemann Asia Pacific’s CEO, Marvin von Plato.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

AW

29


AIRPORT ART

The art show From digital displays, giant sculptures and famous paintings to weird and wonderful exhibitions, Joe Bates reviews some of the most innovative new airport art offerings of 2018. Sydney’s cultural experience

Audio visual artwork in Charlotte

Sydney Airport has unveiled a striking work of contemporary art by Kamilaroi artist, Archie Moore, which the gateway hopes will “contribute to a strengthened cultural experience for departing visitors and leave an enduring positive impression”. Moore’s United Neytions artwork consists of 28 large flags that hang dramatically from the 17-metre high ceiling of Sydney Airport’s T1 International Marketplace and are said to speak of the incredible diversity of aboriginal culture. Sydney Airport CEO, Geoff Culbert, says: “We’re committed to celebrating the very best of local and Australian talent and showcasing our city and nation’s rich and wonderful stories. “We’re very much focused on continually finding new ways to ensure both local and international travellers enjoy a dynamic and unique experience whenever they visit Sydney Airport.” The memorable, multi-coloured work was chosen for display as part of a landmark partnership between the airport and the Museum of Contemporary Art Australia (MCA). Moore, who is recognised as a leading contemporary Australian artist, says: “The opportunity has allowed this series of flags that celebrate issues of place and identity to adopt a scale and status that official international flags have. “[These flags] draw attention to the histories, voices and presence of local indigenous people on whose traditional lands the airport lies, but also the passages of cultures, pasts, territories, ages and cultural knowledges that airports foster.”

Charlotte Douglas International Airport’s newly expanded Concourse A is now home to several huge new ‘data sculptures’ by digital artist, Refik Anadol. Dubbed ‘Interconnected’, the digital artwork is comprised three NanoLumens supplied hi-definition LED media walls, measuring over 2,000 square feet, that display constantly changing dynamic abstract visualisations derived from airport operations data (flight arrivals and departures, baggage handling and ground transportation). The centrepiece of the project, which is being described as one of the largest data sculpture visualisations in the world, is a 2.5mm NanoLumens ENGAGE Series LED display that is 140-feet long and 10-feet wide. “The largest display runs down a big part of the new Concourse A which has windows lining the other side so it can also be seen by people driving past as well as walking up to the airport from the outside,” enthuse Marcus Mitchell, programme director for the Arts & Science Council, which organised the project for the airport. “The fact that the displays provide such a high definition image viewed up close, as well as the brightness to be seen outside by people in cars whizzing by, provided us with the greatest possible impact.” Anadol says: “The artwork being displayed is constantly changing and evolving as it responds to the ever-changing flow of data, creating a living snapshot of the invisible patterns that surrounds us as we travel to, from, and within Charlotte Douglas International Airport.”

30

AIRPORT WORLD/OCTOBER-NOVEMBER 2018


AIRPORT ART

Giant sculptures in Doha Airport artwork doesn’t get much bigger than at Doha’s Hamad International Airport, which now boasts another giant sculpture to sit alongside its larger than life teddy bear. The latest addition, SMALL LIE by American artist KAWS, towers above the ground and is a gift from the Qatar Museum as part of its commitment to making art available to all beyond the confines of a gallery. Airport CEO, Badr Mohammed Al Meer, enthuses: “HIA’s space for public art is truly redefining the passenger experience. It is a monumental art piece. Our operations team had to dismantle the airport façade at concourse D to handle the crates and we worked on the technical installation for several weeks.” Artworks on show at HIA comprise a mix of site-specific creations and pieces which have been carefully selected for the airport, something the Qatar gateway feels “transforms the transportation hub into a large-scale gallery filled with breathtaking pieces of art”. These include the iconic Lamp Bear by Swiss artist Urs Fischer, Oryx statues by Dutch artist Tom Claassen, and the Playground by American sculptor Tom Otterness. Al Meer adds: “The airport is thriving and is committed to giving transit travellers a memorable journey through arts and culture.”

Munch artwork on display in Oslo Airport Original works of art from Norway’s most famous artist, Edvard Munch, will be on display at Oslo Airport for the next decade after operator, Avinor, persuaded the Munch Museum to temporarily share some of its masterpieces. A specially designed display case has been installed in the new international pier to allow passengers to enjoy his work. Airport director, Øyvind Hasaas, says: “We are very proud to be able to show travellers from all over the world one of Norway’s greatest artists. “We have many travellers who either have Oslo as their destination or who are just passing through, and now they will have the opportunity to see works by one of Norway’s finest, namely Edvard Munch.”

The first work on display is the painting ‘Head by Head’ (1905) and it is accompanied by the stone used for the lithograph Separation (1896), in the case. Once a year, the artwork will be replaced with a new one. “The contract with Oslo Airport gives us a completely new and exciting arena for the Munch Museum,” says Stein Olav Henrichsen, director of the Munch Museum. “Thousands of people pass through this part of the terminal every day, and this will give us a unique opportunity to introduce Edvard Munch to a new audience.”

Miami’s glass exhibition ‘Contemporary Glass: From Sand to Art, a diverse exhibition of glass objects created by contemporary artists is now on display at Miami International Airport. “Our airport serves as a prominent backdrop for the exchange of thoughts, people and cultures from around the world,” says Miami-Dade aviation director and CEO, Lester Sola. “Contemporary Glass: From Sand to Art, which is also a melting pot of people and cultures from around the globe in its own right, is just one example of how art imitates life – or vice versa – at Miami International Airport.” Located near Gate D29, the new exhibition has been curated by Linda Boone and features works by renowned glass artists Latchezar Boyadjiev, Marek Brincko, Dale Chihuly, Keke Cribbs, Dan Dailey, Bohumil Elias, Jon Kuhn, John Lewis, John Miller, Shelley Muzylowski Allen, Joel Philip Myers, Robert Palusky and Toots Zynsky. “In our ongoing effort to provide our passengers with unique art collections, we are proud to feature MIA’s first all-glass exhibition,” enthuses Gendry Sherer, MIA’s fine arts and cultural affairs director. “We’ve also been able to assemble an impressive combination of works by many of the top names in the medium.”

All in a name A collaboration of impressive illustrations to celebrate the history of well-known Irish surnames is now on display at the South Gates boarding area at Dublin Airport.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

31


AIRPORT ART

The stylish ‘All in a name’ exhibition at Dublin Airport celebrates the history of well-known Irish names.

This unique exhibition, which is called ‘All in a name’, showcases seven real-life people and describes some of the history associated with their popular surnames dating back to the 15th and 16th centuries. The myths and legends linked to the O’Donnell’s of Donegal, the Byrne’s of Dublin, the O’Carroll’s in Tipperary, the Kelly’s in Galway, the McCarthy’s in Kerry, Burke’s of Mayo and Murphy’s in Wexford are presented on these beautiful canvases. “It is estimated that up to 80 million people around the world have Irish surnames, however, the myths and legends associated with them are not always known,” enthuses Dublin Airport’s managing director, Vincent Harrison. “This exhibition at the South Gates provides passengers with a unique opportunity to experience another dimension to our rich history and create a lasting impression of Ireland for departing passengers.” The exhibition is one of seven installations throughout both terminals which form part of Dublin Airport’s Sense of Place Visual Environment Project.

Abstract art at LAX Los Angeles World Airports (LAWA), in partnership with the City of Los Angeles Department of Cultural Affairs (DCA), has introduced a new art exhibition at Los Angeles International Airport (LAX) that features works by multi-media artist Martin Durazo. Durazo was born and raised in the Echo Park area of Los Angeles and his ‘Points of Entry’ exhibition in the Terminal 1 Arrivals area

32

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

features 19 abstract paintings influenced by the physical and cultural landscape of Southern California. “We are excited to feature Martin Durazo’s artwork at LAX because, as an LA native, he has a unique understanding of what makes Los Angeles stand out from other cities,” said LAX’s art program director, Sarah Cifarelli. “Durazo’s energetic paintings create a memorable atmosphere for both locals and international visitors alike.” According to LAX, Durazo’s brightly coloured works draw upon the vibrant sounds, sights and subcultures of Los Angeles, creating a lively welcome for guests. His abstract paintings are suggestive of the topographies passengers might see as they fly over Southern California, or landmarks drivers might spot while traversing the Los Angeles basin. It notes: “The blue-green paint is reminiscent of the Pacific Ocean, just minutes away from the airport, while the neon colours evoke the dazzling lights of Hollywood club culture. Durazo’s paintings merge intense, vivid emotions and polished aesthetics, reflecting the intersection of high and low cultures that coexist in Los Angeles.” The artist himself comments: “I hope my work inspires LAX guests to discover different corners of Los Angeles. No matter how many times one visits or returns to LA, there is always something new to see and learn about this diverse city.” The exhibition’s location means that it is accessible to the general public as well as passengers and will be around until the spring of 2019.

AW


AIRFIELD OPERATIONS

The next big thing? Privatised airports are turning to ‘airside integrators’ to help them reduce costs, increase safety and boost efficiency, writes ICAO safety consultant, Dr Fethi Chebil.

A

new trend to evolve from airport privatisation is the emergence of companies dedicated to managing and integrating an airport’s complex airside safety systems, reducing its operational costs and ensuring regulatory compliance. Airside activities at airports are, of course, highly regulated and subject to a government enforcement process, and this has led to an ever-increasing number of private airport operators successfully transferring the risk of regulatory compliance and safety to a new type of dedicated cost-effective company – the ‘airside integrator’. These companies have the expertise and know-how to manage, operate, inspect and maintain the certification requirements of the airside activities, including: • Regulatory compliance: They are able to deal proactively with government agencies – including interaction with civil aviation inspectors and auditors – to track the continuous updating of regulations and ensure simplified and easy-to-deploy access to an international data base of evolving local and international airport related rules and regulations. • Inspection and maintenance, reporting and monitoring: They provide a core team of inspectors, operators and on-site agents supported by internationally deployed experts using the most advanced safety and compliance management systems. • Cost effectiveness: As ‘airside integrators’ operate airside at airports across the world and own proprietary safety management systems, the development and deployment cost are shared among a global network of projects and sites – everyone wins. These companies are called ‘airside Integrators’ for good reason. A wide range of stakeholders are involved in airside operations: ground handlers, airlines, contractors, inspectors, security services and government agencies, and very few companies can provide an efficient implementation capability to ensuring safety and compliance among all these actors. Dedicated ‘airside integrators’, however, can take charge of aligning all stakeholders toward safety and compliance, integrating

34

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

Figure 1: Risk transfer from airport private investor to dedicated airside integrator.

different communication and reporting techniques, workshops, on-site and remote monitoring, advanced SMS systems, training and awareness. Indeed, their focused expertise provides credibility and comfort, their integrated systems provide efficiency and their network brings cost effectiveness. The ‘airside integrator’ thus enables the private investors to transfer the risk of managing the airside to a properly equipped, specialised and cost-effective company.

Business model The business model of these new companies is built around mitigating two main risks, as shown in Figure 1 (above), which provides details on the value proposition related to the private sector risks.


AIRFIELD OPERATIONS

Figure 2. Airside Integrator Business Model.

Airport private investors have expressed concerns about dealing with government agencies and regulators. Issues of concern include the uncertainty related to aleatory and arbitrary certification requirements and random, unstructured and non-transparent regulatory enforcement processes which induce unforeseen costs and unwelcome distractions. However, the global network and proprietary safety management systems (reporting, data bases, resources and consultants) of an ‘airside integrator’ are built to address the concerns of private investors and to mitigate the risks related to airside operations in a cost-effective and efficient manner. Figure 2 illustrates the business model of the ‘airside integrator’.

Results speak louder than words In terms of regulatory compliance, during the first 18 months of using an airport integrator, some gateways have recorded a 150% increase in the reporting of hazards; a 45% rise safety awareness (based on the hazards reported, including speeds); and a 25% reduction in safety violations. With respect to inspection and maintenance, reporting and monitoring, in one case 76 risk assessments were carried out during the first year of operations and the risk mitigation plans developed by the airside integrator were accepted and deployed by all stakeholders. And in terms of cost effectiveness, the operational costs for airports using an airport integrator typically fall by between 10% to 15%. The figure is based on the assessment of the performance of seven airports to have brought an airport integrator onboard.

These include Jeddah–King Abdulaziz and Riyadh–King Khalid international airports in Saudi Arabia where operators of the private terminals, the General Authority of Civil Aviation (GACA) and Private Aviation Saudi Arabia (PASA), have transferred the risk of the airside operations and dealing with the certification requirements to the airside integrator, Airside Safety Operations International (ASOI). Other airports to use an airport integrator include Dubai International Airport, London Heathrow (for some airside operations) and Dzaoudzi-Pamandzi International Airport on the French island of Mayotte in the Indian Ocean.

Strategic view A private airport owner’s decision to transfer the risk of managing airside operations to a dedicated and properly equipped structure, can be a wise decision. Why? Because this is a new business trend that adds an increased level of expertise, safety, efficiency and accountability to the airport business. As a dedicated and focused service provider, the airside integrator will provide continuous association to, and ensure the support of, international agencies like ICAO and ACI for and with airport private-sector owners.

AW

About the author Dr Fethi Chebil works as an airport safety consultant for ICAO and is a former vice president of airports for SNC-Lavalin. He has over 20 years of experience of working on airport PPP projects.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

35


CUSTOMER SERVICE

This huge digital display at Singapore Changi is designed to make the security experience more customer friendly.

Sight, sound and light show Interactive signage, automated lighting and directional audio can help transform the passenger experience in airport terminals, writes AVIXA’s Brad Grimes.

F

orward-looking airports are transforming their terminals into lively, visual, and on-brand destinations that aim to relax travellers and instill a sense of calm during times most typically associated with stress and anxiety. A recent study found that happy, relaxed airport customers are twice as likely to shop and will typically spend 7% more on retail and 10% more on duty-free goods – a boost to airports’ non-aeronautical revenue streams at a time when the industry needs it most. According to ACI, while non-aeronautical revenue streams account for 46% of the total operating revenue for all US airports, around 41% of that revenue comes from airport-offered parking and ground transportation, which are under threat from transportation network companies (TNCs), such as Uber and Lyft, not to mention the looming specter of autonomous vehicles. Therefore, airports see a need to boost non-aeronautical revenues from retail, F&B other sources and many are going about it by cultivating terminal tranquility. And increasingly these efforts involve the use of immersive, cutting-edge audio visual technologies.

Sit back and relax Relaxation is not typically a feeling associated with time spent in an airport. For years, the airport experience has been about long, slow-moving lines, anxiety-ridden security screenings, and delays suffered at nondescript gates. But entertaining and engaging terminal experiences that feature state-of-the-art digital and audio visual technologies are helping airports reimagine the passenger journey. At Charlotte Douglas International Airport, for example, a 140-foot long display screen in the airport’s newly refurbished Concourse A features renown digital artist Refik Anadol’s unique ‘data sculptures’ that turn invisible patterns of data into captivating, relaxing and ever-changing artistic content.

Two more large screens (approximately 40ft and 28ft long) also display Refik’s work and all three are visible from outside the airport, with the effect of creating a welcoming experience. Meanwhile at Singapore’s Changi Airport a massive 230ft long by 33ft high LED display features stunning 3D visuals produced by audio visual design firm Moment Factory. The display is located in a security screening area, which has turned the normally tedious screening process into a far more engaging and less stressful experience. The idea behind both AV installations is to make travel frictionless, speedier and more enjoyable for passengers, giving them more time and energy to explore the rest of the airport, and more reason to travel through the airport again in the future. Airports are also using audio visual technology more often and creatively as an effective advertising platform. Operators are replacing static messages and images with attention-grabbing digital content that can respond to consumers’ mobile phone activity or shared information networks. At London’s Heathrow Airport, for instance, small, digital billboards deployed by global business publication the Financial Times, target specific passengers flying to six pre-selected US cities. The technology taps into Heathrow’s flight data via an application programming interface (API) to target only these passengers with ads relevant to the destinations they are travelling to. While at London’s Stansted Airport, officials recently deployed a 39-foot long large-scale curved visualisation system. The display is not only helping travellers find their flight information, but the brightness and size of the display also provides a dynamic tool for advertisers to get their brand message across in a way that is highly engaging for customers. “Airport advertising creates significant brand awareness and sales by helping advertisers reach highly coveted audiences such as the affluent frequent flyer and the key business decision makers around the world,”

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

37


CUSTOMER SERVICE

One of the many examples of pioneering audio visual displays at Los Angeles International Airport.

says Morten Gotterup, president of Clear Channel Airports, which recently concluded a study that revealed that airport advertising is a particularly effective means of delivering brand messaging to consumers.

Cutting through the noise to improve communication Airports are cavernous, noisy, and filled with simultaneous messages, whether displayed on signage or announced over PA systems. AV technology, however, is helping airports to communicate more clearly and concisely without distraction. Directional audio and subliminal wayfinding allow airports to cut through the noise and relay important communications to terminal passengers. Directional audio, a technology that delivers soundwaves to targeted locations such as a specific gate or in front of just one display, has become an important way in which to enhance in-terminal communications and thereby deliver an improved travel experience. “I recently visited Reagan National Airport travelling to DC and was amazed how, at a busy airport with a lot going on, I could walk up to a screen and whether it was a news feed or sports feed, I could hear the audio for only that screen and not another nearby screen,” says Jeff Roach, manager of Fairbanks International Airport in Alaska. “Zonal [directional] audio is really a great technique for not overloading a person and allowing them the experience that you’re trying to give them without all the distractions.” Subliminal wayfinding has been long used at airports to guide passengers through the terminal, to various destinations, without communicating with them directly or consciously. The international terminal at Atlanta’s Hartsfield-Jackson, for example, features signage with a curved top to match the undulating aesthetics of the terminal’s roofline; next door, however, the domestic terminal features standard rectangular signage with hard-edges. Shapes, fonts, colours, and even floor tiling have long been used to subconsciously communicate a sense of place and direction at airport terminals. However, increasingly, airports are using audio visual technologies, such as lighting and aural cues, to better facilitate subliminal wayfinding. At New York-JFK’s JetBlue terminal, for instance, glowing blue walls not only provide guests with a branded experience, but they also guide passengers to key activity points and urge them down long hallways or up stacked escalators. While San Diego International Airport features ‘The Journey’, an audio visual art installation composed of 38,000 suspended LED pendants that stretch 700ft down the terminal’s ceiling.

38

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

Beyond being a visual spectacle, the art installation also serves a functional purpose: to open up the terminal space, provide a sense of place, and guide passengers from the main hall to their gates. “You see a silhouette swim all the way down the terminal,” explains Jon Graves, senior marketing manager for the San Diego County Regional Airport Authority. “It’s slow, it’s methodical, and puts your mind at ease. It’s a great example of using art and video to ease the customer experience.” Tim Dixon, innovation and commercial director for ADXBA Limited, the firm that handled London Gatwick’s subliminal wayfinding, notes: “There are lots of international people arriving at airports, so you try to iconise and simplify things with graphics. “Through subliminal wayfinding, it doesn’t matter your nationality; it’s a universal language. People that speak only Chinese, English, or German or French will all still naturally follow a route via the subliminal wayfinding.” These uses of audio visual technology deliver immense value to airports, helping passengers reach their destinations while providing useful and engaging information.

A constant conversation Customer experience can be difficult to define, but easy to recognise when it’s less than good, and truly understanding the frustrations passengers face requires a two-way dialogue. “We say apathy is actually our worst enemy,” says Andy Merkin, producer for Moment Factory. “We would rather have somebody hate something, because then they feel an emotion. It is about engaging customers and listening to them, it’s a constant conversation that you’re having with your passengers.” Whether it’s a massive video wall with content that amazes and amuses weary travellers; a clear, informative LED display with an engaging and targeted advertising message for a nearby coffee shop; or a new audio technology that delivers soothing and easy-tounderstand instructions, AV technology is delivering value to both passengers and airports alike by reducing stress, increasing tranquility, and providing the opportunity for new streams of revenue.

About the author Brad Grimes is senior director of communications for the Audiovisual and Integrated Experience Association (AVIXA). For more information, visit www.avixa.org/transportationAV.

AW


IT TRENDS

The digital transformation John Jarrell, head of Amadeus Airport IT, reflects on the findings of a new report that explores the long-term potential of digital technologies for airports.

W

ith passenger numbers booming, airports everywhere are striving to find new ways to maximise their limited resources, while bidding to attract and retain carriers. At the same time, passenger expectations are on the rise, which means that airports, though faced with these challenges, also have an opportunity to embrace digital technologies – to improve efficiencies and in turn, to enhance the passenger experience. But what does that opportunity actually look like? Earlier this year, Amadeus commissioned Arthur D Little to explore the role of technology in helping to reduce airport operational costs, but it became clear throughout the research process that airports view technology – as do we at Amadeus – not just as a tool for cost reduction but crucially, as an enabler of business transformation and value creation. Of course, every airport has different needs and each is at a different stage of technological implementation so each, therefore, will have different digital investment priorities. However, what most airports do have in common, especially in the context of increasing demand for air travel, is a need to be more adaptable and efficient; and any technology which enhances passenger processing should help to achieve this, as well as enhancing the traveller experience. Collaborative smart machines and robots, for example, can enhance the passenger journey and decrease pressures on airport workforces by providing customers with clear and consistent information to facilitate their journey through the airport. Cloud technology, also, can enhance passenger journeys by removing the need for software installations at check-in desks and gates, while biometrics can reduce waiting times and enhance the efficiency of security and passenger processing. For airports and for passengers, that particular scenario is win-win because, as the research from Arthur D Little makes clear, there is a direct correlation between passengers’ experience and their propensity to then spend money in the terminal. How else can digital technology transform the airport business? Consider a passenger’s route through an airport. Fringe technologies

like virtual modelling, can help airports to better predict passenger flows and allocate their human resources accordingly, as well as making improvements to flight management. The practical benefits? Fewer delays and better rates of baggage reconciliation. But of course, adopting new digital technologies is not always straightforward, and it’s easy to see why. For a start, this kind of investment requires leadership, commitment and clarity of purpose, particularly given the lengthy, complicated RFP and procurement processes airports must go through. In addition, the need to maintain business continuity in airports can foster reticence around investing in digital solutions, especially when they are transitioning from pilot schemes to full-scale implementation. No one wants to risk connectivity issues that can impact negatively on an airport’s image. And then, of course, there are the costs of implementation. Hub airports, particularly those which are adopting a ‘spend to save’ attitude, are more likely to accept these costs than smaller airports with limited resources. Crucially, they do so because they recognise the valuable potential of new technology to attract airlines and drive revenues. Nevertheless, there remain some doubts around how to implement technical solutions, and particularly some uncertainty over which technology airports should prioritise. Understandably, this lack of clarity can lead to hesitancy and delay. This points to a lack of understanding of digital solutions within the airport microsystem and a correlating hesitancy to ‘transplant’ digital concepts into people’s day-to-day roles. Nevertheless, these are soft, cultural barriers that airports can, and should overcome in the short term, in order to reap longer-term, tangible benefits. For while the path toward airport digital transformation may not be easy, it does require, and immensely benefit from, effective partnering and collaboration across the airport ecosystem. It is perhaps not surprising then, that so many airports are already embarking on this path to a more digital future. And we at Amadeus are proud to make that journey with them.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

AW

41


EVENTS: GLOBAL SUSTAINABLE AVIATION SUMMIT

The future is green Airport World reports on some of the big stories to emerge from the Global Sustainable Aviation Summit in Geneva.

A

irports continue to do their bit to reduce aviation’s impact on the environment, with ACI revealing that a total of 246 airports now use its Airport Carbon Accreditation programme to manage and reduce their carbon footprint. Speaking at the Air Transport Airport Group (ATAG) hosted Global Sustainable Aviation Summit in Geneva, ACI World’s director general, Angela Gittens, said: “Airports around the world recognise that climate resilience and climate action are two sides of the same challenge. “With 48 new airports in the programme this past year, the Airport Carbon Accreditation programme has never seen such annual momentum. The 246 airports now accredited across the four levels of the programme welcomed 3.3 billion passengers last year, which represents 44.2% of global passenger traffic. All of those airports engaged in climate action voluntarily.” She added: “This collective effort is based on the airports industry making environmental stewardship a priority and it is making a difference. From May 2017 to May 2018, accredited airports succeeded in collectively reducing the CO2 emissions under their direct control by 347,026 tonnes. “To put that achievement in perspective, it would take more than eight million trees planted over 10 years to absorb the equivalent amount of CO2€.” The 44 carbon neutral airports in the programme alone offset 672,000 tonnes of CO2 in residual emissions. In other news, the airlines and aircraft operators among the 300 delegates were reminded about the upcoming milestones for the ICAO Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). ATAG’s executive director, Michael Gill, said: “Operators will need to start monitoring fuel use and CO2 emissions from all international flights on January 1, 2019. This is just a few months

away and, ahead of that milestone, an emissions monitoring plan needs to be developed and signed off by national authorities. “We are pleased that so many operators have already taken part in training provided by the IATA, alongside ATAG and the International Business Aviation Council. If your airline is not ready, more training will be available in the coming months and we encourage all of you to take full advantage now.” Delegates also learned that the global air transport sector today supports 65.5 million jobs and $2.7 trillion in global economic activity, according to the latest version of ATAG’s Aviation: Benefits Beyond Borders report. Launching the report at the summit, ATAG’s Gill, said: “More people in more parts of the world than ever before are taking advantage of safe, fast and efficient travel. There are over 10 million women and men working within the industry to make sure 120,000 flights and 12 million passengers a day are guided safely through their journeys. “The wider supply chain, flow-on impacts and jobs in tourism made possible by air transport show that at least 65.5 million jobs and 3.6% of global economic activity are supported by our industry.” The report also looks at two future scenarios for growth in air traffic and related jobs and economic benefits. One, based on an open, free-trade approach, predicts that growth in air transport will support some 97.8 million jobs and $5.7 trillion in economic activity in 2036. However, if governments create a more fragmented world with isolationist and protectionist policies, it predicts that 12 million fewer jobs and $1.2 trillion less in economic activity would be supported by air transport. ACI World’s Gittens noted: “Airports are crucial links in the air transport value chain that drive economic and social benefits for the local, regional, and national communities they serve.”

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

AW

43


INDUSTRY RUNNINGNEWS HEAD

The latest news from ACI’s World Business Partners

Ghana contract for Thyssenkrupp Thyssenkrupp has supplied Kotoka International Airport’s newly expanded Terminal 3 with seven passenger boarding bridges, three escalators, 16 elevators and over 40 auxiliary equipment units. The company worked in partnership with local distributor ARG1 Africa Ltd on the project, which now forms part of its growing African portfolio having previously supplied solutions to airports in Algeria, Cameroon, South Africa, Kenya and Nigeria.

Aviation training programme

ITAérea Aeronautical Business School, the United Nations Institute for Training and Research (UNITAR) and the International Training Centre for Authorities and Leaders in Merida (CIFAL Merida) are pleased to announce the first edition of its Master in Sustainable Air Transport Management (MATSM) programme. ITAérea Aeronautical Business School specialises in delivering high quality training to both professionals of the air transport sector and those who wish to start working in this fascinating and dynamic industry. It delivers training through its recognised Master in Sustainable Air Transport Management (MATSM) and other postgraduate programmes and shorter courses specific for air transport. ITAérea strives to meet the demand for the first-class professionals required by the entire air transport sector ranging from the airlines, airports, ground handlers, and aviation authorities to aircraft manufacturers, consulting companies and law firms. The school is staffed by more than 200 professors who, between them, have vast experience in the industry and a practical approach to sharing their valuable real-life experience to our students. Air transport has become essential to our global economy. It is a driver of economic growth and contributes to strengthening the ties between countries and the global economy. At the same time, there is a greater need to consider the sector’s contributions to the interlinkages among the three pillars of sustainability – economic, social and environment – in a more comprehensive manner. Exploring how to integrate the Sustainable Development Goals into the air transport sector, for example, is a key objective of this master programme. The MATSM is an executive e-learning programme that aims to equip students with in-depth knowledge of the airport and the aeronautical sectors, allowing them to fill management positions in airports, airlines, as well as in companies associated with airports and aviation in general. The programme includes five units that cover international air law; airlines; airports; air navigation; and the aeronautical industry. It concludes with the development of a master thesis consisting in the study of a subject related to air transport. Upon completion of the programme, participants will receive a diploma issued by ITAérea and UNITAR, with graduation ceremony held at the Palace of Nations in Geneva, Switzerland. For further information please contact info@itaerea.es or visit www.itaerea.es

AlixPartners Location: London, UK Contact: Jonathan Sandbach, independent contractor E: jsandbach@alixpartners.com W: www.alixpartners.com For nearly forty years, AlixPartners has helped businesses around the world respond quickly and decisively to their most critical challenges – circumstances as diverse as urgent performance improvement, accelerated transformation, complex restructuring and risk mitigation. Our approach enables us to help our clients confront and overcome truly future-defining challenges. We partner with you to make the right decisions and take the right actions. And we are right by your side. When it really matters.

Chetu Location: Plantation, FL, USA Contact: Joel Vosburgh, national account manager E: shows@chetu.com W: www.chetu.com Chetu offers custom software development services to the aviation industry. As aviation software development providers, we fully cater to airports and other operators in the aviation industry with custom flight operations software, reservation and ticketing systems, and MRO (Maintenance, Repair and Overhaul) software solutions.

Paige Datacom Solutions Location: Union, NJ, USA Contact: Carrie Goetz, global technical director E: cgoetz@paigeelectric.com W: www.paigedata.com Paige is a full-service manufacturer/distributor of copper, fibre, security, asset control and metals including tray systems and rittal cabinets. Paige developed the dual awardwinning game changer cable carrying gig-ethernet 656’ with poe+ and no repeaters! Paige also has custom asset protection extending security zones. We listen, we engineer, we provide.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

AW

45


HUMAN RESOURCES

PEOPLE

matters Wellbeing@Work Richard Plenty and Terri Morrissey provide their thoughts on how the changing nature of work can impact psychological wellbeing.

W

orking in paid employment can be good for us. Having a job gives us an income, and provides a sense of purpose, meaning and structure to our lives. We have the opportunity to develop our skills and competencies, build social networks and friendships, and feel that we are contributing to society. Feeling engaged and absorbed in our work can be a wonderfully positive and fulfilling experience. So, perhaps it’s not surprising that the evidence shows that people who are employed generally have better psychological health than those who are unemployed. But the nature of work is changing. There are increasing demands for higher standards of performance; innovation and new technology are reshaping the workplace; and there are much higher expectations around customer service quality. Workloads can be high and leave people with little time to reflect or recover. Jobs are less secure than they used to be as roles change and new skills and competencies are needed. And an ‘always on’ culture means that, for many, there is work to be done outside conventional working hours. In the airport sector, simply coping with rapid growth is constantly ratcheting up the workload. In short, organisational life is becoming more challenging. Just ‘keeping your head down’ and looking for an easy life is rarely an option. Organisations expect people not just to turn up and do their job but to deliver results: be responsible, adaptable, show initiative, be positive about change, learn new skills,

46

work hard, put in extra time when necessary, show empathy with the customers and embrace innovation. And be loyal and cheerful! The good news is that it’s possible to create a working environment where all this can be the norm, where people love their jobs and can perform at levels than they hardly believed possible. This can happen when organisations pay sufficient attention to their people and commit to creating peoplefriendly workplaces. Where this is missing, psychological well-being cannot be guaranteed. Depression, anxiety and burnout become real risks. Organisations can drift towards a culture of absenteeism, high turnover and low motivation with all the attending financial and industrial relations consequences. ‘Psychological wellbeing’ needs to be a leadership priority. The key is to identify and systematically eliminate and eradicate those outmoded approaches and practices which give rise to a toxic organisation culture. These include poorly designed jobs with unclear objectives, excessive workloads and inadequate support; lack of attention to the needs of those in the front line; inadequate communication on the reasons for change; badly trained and ‘old school’ style managers with a lack of empathy and human understanding; and an absence of ‘psychological safety’ which stifles risk taking and innovation. Involve people; give them control of their work as far as possible; invest in the development of skills in personal leadership, resilience, relationship building and team working. People matter.

AIRPORT WORLD/OCTOBER-NOVEMBER 2018

Hartsfield-Jackson Atlanta International Airport, the world’s busiest airport handling in excess of 100mppa, has a new boss following the arrival of John Selden as its new general manager. Announcing his appointment, Atlanta Mayor, Keisha Lance Bottoms, said: “Hartsfield-Jackson is without question one of our city and state’s most valuable assets, with an annual economic impact of nearly $35 billion for metro Atlanta. It has allowed our city to become a gateway to the world and it serves as a critical cargo hub for North America. I am excited that we have identified someone with the qualifications and passion of John Selden to lead our airport into the future.” A former navy and commercial pilot, Selden moves from the role of deputy general manager of New York’s John F Kennedy International Airport, the US’s sixth busiest passenger gateway. London Stansted has a new chief operating officer – former Virgin Atlantic COO, Steve Griffiths. Griffiths, most recently chief operating officer for the London Underground at Transport for London, will be responsible for the safe and secure day to day leadership of the airport whilst it undertakes its biggest ever capital programme. Auckland Airport has announced the appointment of Mary-Liz Tuck as its general manager of corporate services. In this role, Mary-Liz will be responsible for leading key corporate functions including legal, people, safety and public affairs. Groupe ADP has announced four new appointments – Aude Ferrand has become its new chief retail officer; Mélanie Carron has been promoted to the position of chief marketing officer; Eric Labrune takes up the role of chief customer satisfaction and operations officer; and Guillaume Arrigoni is its new chief marketing officer, whose role includes managing the route development strategy of Paris’s airports. Inez Bartolo is the new airport director of Ports of Jersey, the operator of Jersey Airport in the Channel Islands. He replaces the retiring Stephen Driscoll who worked at the gateway for an incredible 44 years, initially as an electrician, before working his way up the ladder.

About the authors Dr Richard Plenty is managing director of This Is… and runs the ACI World Airport Human Resources programme. Terri Morrissey is chairperson of This Is… and CEO of the Psychological Society of Ireland. Contact them through info@thisis.eu

AW


Profile for Airport World

Airport World, Issue 5, 2018  

• In the spotlight: Retail and F&B innovation • Airport report: Miami • Special report: Airport art • Plus: Digital transformation & Airport...

Airport World, Issue 5, 2018  

• In the spotlight: Retail and F&B innovation • Airport report: Miami • Special report: Airport art • Plus: Digital transformation & Airport...