Airport profile: Muscat In Focus: Sustainability
Plus: ACI World Customer Experience Global Summit; Investing in Asia-Pacific; eVTOLs and Retail/F&B
IN THE SPOTLIGHT:
INNOVATION Volume 28 – Issue 5, 2023 aci.aero
OPINION
Airport World Editor Joe Bates +44 (0)1276 476582 joe@airport-world.com Sales Directors Jonathan Lee +44 (0)208 707 2743 jonathan@airport-world.com Jon Sissons +44 (0)208 707 2743 jon.sissons@airport-world.com Advertising Manager Andrew Hazell +44 (0)208 384 0206 andrewh@airport-world.com Design, Layout & Production Mark Draper +44 (0)208 707 2743 mark@airport-world.com Subscriptions subscriptions@aviationmedia.aero Managing Director Jonathan Lee +44 (0)208 707 2743 jonathan@aviationmedia.aero
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The next big thing! Editor, Joe Bates, reflects on the 'innovation' theme of the penultimate 2023 issue of Airport World.
I
have no idea who first coined the expression, ‘the next big thing’, but it has been around for a long time, and I distinctly remember it being used to describe a number of new innovations in my lifetime… most of which didn’t quite live up to the hype! I know this is going to sound crazy to the younger generation, but thinking back to when I was a school kid, some of the new innovations that really wowed the Bates family at the time were the DVD player, digital watches, the microwave oven, air conditioning and electric windows in cars, and the TV remote control! The DVD player in particular probably had the biggest impact on our family, and indeed millions like us, as their global popularity led to the birth of video rental chains like Blockbuster, which meant that instead of going to the cinema if you wanted to watch a film you could, for the first time, hire one and watch it in the comfort of your own home. Since then, of course, technology has taken things to another level, the new era of tech-driven advances arguably beginning with the global roll-out of mobile phones and desktop computers with dial-up internet access! From a technology perspective, an online training provider recently made a list of what it considered to be the Top 15 new technology trends for 2023. They include AI and Automation; Blockchain; 5G Networks; Augmented Reality; Virtual Reality; The Metaverse; Biometrics; Cybersecurity; Cloud Computing; Internet of Things; and Robotics. All of the above are being actively used or trialled at airports across the globe today, as airport operators and the aviation industry as a whole strives to become more operationally efficient, sustainable, personalised and customer friendly.
Indeed, we cover some of the technology trends in the ‘innovation’ themed section of this issue of Airport World, where we also discuss retail and F&B innovation, LaGuardia Terminal B’s accessibility mission; and operational innovation at Amsterdam Schiphol. Our main interview is with Oman Airports CEO and ACI World chair, Sheikh Aimen Al Hosni, who updates us on the progress of Muscat International Airport (MCT) and the development of his country’s airport system. Oman Airports will get the chance to showcase MCT's fantastic new terminal to the world when it hosts the inaugural Airports Innovate conference in Muscat on November 20-22. Elsewhere in this issue of Airport World, we look at investing in airports in the Asia-Pacific region; consider the potential opportunities and challenges of eVTOL aircraft to the aviation sector; learn more about Stockholm Arlanda’s new Marketplace development; and report on some of the sustainability news stories making headlines around the world. Also in this issue, we hear from ACI World director general, Luis Felipe de Oliveira; review some of the highlights of the recent ACI World Customer Experience Global Summit in Incheon; reflect on how investing in people and culture is essential for innovation in our regular ‘people matters’ column; and report on the latest news from ACI's World Business Partners (WBP). I hope you enjoy our penultimate issue of 2023 and that it can at least provide some good news at a time when there doesn’t seem to be an awful lot of it about in the world. Ending on a lighter note, what do you think are some of the biggest failures of potential ‘next big things’, in your lifetime? Some of my friends have suggested home MiniDisc players, but surely the award has to go to the Sinclair C5 electric car? Look it up if you AW haven’t heard of it, it was quite different!
AIRPORT WORLD/ISSUE 5, 2023
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CONTENTS CONTENTS
ISSUE 5 Volume 28
In this issue 3 Opinion
Editor, Joe Bates, reflects on the 'innovation' theme of the penultimate 2023 issue of Airport World.
9 View from the top
ACI World director general, Luis Felipe de Oliveira, considers how innovation continues to make passenger journeys easier and enhance the sustainability of airports.
10 ACI News
We report on the latest traffic statistics from ACI World, ACI Asia-Pacific & Middle East's new Airport Connectivity Report, and ACI EUROPE's green skies commitment.
12 The Omani way
Sheikh Aimen Al Hosni, CEO of Oman Airports and ACI World chair, provides Joe Bates with an update on the progress of Muscat International Airport and the development of his country’s airport system.
16 Menu of innovation
Pragma Consulting’s Katie Hastings looks at some examples of retail/F&B innovation at airports across the globe.
18 Time for technology
INFORM’s Alexander Wendorff explains how advanced technologies can help airports better manage and optimise their resources.
21 Celebrating innovation
ACI World's Technology Innovation Awards, held in partnership with Amadeus, highlight cutting edge initiatives and leadership by airports that improve operations or increase efficiency.
22 Access all areas
LaGuardia’s Terminal B shows just what can be achieved when it comes to designing an airport terminal that is accessible by all, writes Stanis Smith.
24 Smart operations
Amsterdam Schiphol continues to innovate by using smart solutions to enhance its operational efficiency and help secure its long-term future, report the Royal Schiphol Group’s Zahra Merchant and Jan Zekveld.
AIRPORT WORLD/ISSUE 5, 2023
5
CONTENTS
Director General Luis Felipe de Oliveira (Montreal, Canada) Chair Aimen Al Hosni (Muscat, Oman) Vice Chair Candace McGraw (Cincinnati, USA) Immediate Past Chair Martin Eurnekián (Buenos Aires, Argentina) Treasurer Arnaud Feist (Brussels, Belgium) ACI WORLD GOVERNING BOARD DIRECTORS
28 The future is now
George Richardson, co-founder and CEO of AeroCloud, explains how computer vision can transform airport operations and the passenger experience.
30 Pursuit of excellence
We review some of the highlights of the recent ACI World Customer Experience Global Summit in Incheon.
32 Buying into airports
Asia-Pacific’s airports continue to appeal to investors interested in privatisation deals and upgrading infrastructure, writes Modalis Infrastructure Partners’ partner, president and CEO, Curtis Grad.
36 Planning for vertical take-offs
OAG’s chief analyst, John Grant, considers the potential opportunities and challenges of eVTOL aircraft and how the aviation sector might adapt to meet the new trend.
38 Retail therapy
Charlotte Ljunggren, director for marketing and commercial business development, tells us more about the opening of Stockholm Arlanda Airport's new Marketplace development.
40 High achiever!
Endorsed by ACI, ICAO and IATA, Incheon Airport Aviation Academy strives to lead the way in global aviation training.
42 Making a difference
Airport World rounds-up a handful of the latest sustainability news stories making headlines around the world.
44 World Business Partners News
Announcements, news stories and opinions from ACI World Business Partners across the globe.
46 People matters
6
Richard Plenty and Terri Morrissey reflect on how investing in people and culture is essential for innovation.
AIRPORT WORLD/ISSUE 5, 2023
Africa (3) Emanuel Chaves (Maputo, Mozambique) Fabrice Grondin (Saint-Denis, Réunion) 1 Vacancy Asia-Pacific & Middle East (9) Aimen Al-Hosni (Muscat, Oman) Mohamed Yousif Al-Binfalah (Bahrain) Geoff Culbert (Sydney, Australia) SGK Kishore (Hyderabad, India) Seow Hiang Lee (Singapore) Emmanuel Menanteau (Paris, France) Akihiko Tamura (Tokyo, Japan) 2 Vacancies Europe (7) Armando Brunini (Milan, Italy) Arnaud Feist (Brussels, Belgium) Jost Lammers (Munich, Germany) Yiannis Paraschis (Athens, Greece) Kadri Samsunlu (Istanbul, Turkey) Stefan Schulte (Frankfurt, Germany) Nazareno Ventola (Bologna, Italy) Latin America & Caribbean (3) Ezequiel Barrenechea (Guayaquil, Ecuador) Mónika Infante (Santo Domingo, Dominican Republic) Juan José Salmón (Lima, Peru) North America (6) Kevin Dolliole (New Orleans, USA) Deborah Flint (Toronto, Canada) Joseph Lopano (Tampa, USA) Candace McGraw (Cincinnati, USA) Sam Samaddar (Kelowna, Canada) Roelof-Jan Steenstra (Toronto, Canada) Regional Advisers to the World Governing Board (10) Lew Bleiweis (Asheville, USA) David Ciceo (Cluj-Napoca, Romania) Fred Lam (Hong Kong) Tan Sri Bashir Ahmad Abdul Majid (Delhi, India) Javier Marin (Madrid, Spain) Mpumi Mpofu (Johannesburg, South Africa) Andrew O’Brian (Washington DC, USA) Jorge Rosillo (Galapagos, Ecuador) Brian Ryks (Minneapolis-St Paul, USA) 1 Vacancy WBP Observer Esperanza Morales Martin (Global Exchange) Correct as of October 2023
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View from the top
ACI VIEWPOINT
ACI World director general, Luis Felipe de Oliveira, considers how innovation continues to make passenger journeys easier and enhance the sustainability of airports.
A
irports have come a long way since their inception, with innovation leading many of the changes that have transformed them from transport hubs into destinations in their own right. Innovation has been the driving force behind transforming airports into more efficient, enjoyable, and sustainable spaces for the world’s travelling public. Perhaps one of the most notable innovations in recent years has been the introduction of biometric technology, which has streamlined security checks and boarding processes – extensively covered in the previous edition of Airport World. Or the integration of blockchain technology to enhance security, greater transparency, instant traceability, increased efficiency, and automation. Another significant innovation has been the proliferation of smart technology to enhance the passenger experience, such as real-time information on flights, weather, and airport amenities. Most airports now offer mobile apps that allow passengers to book parking, order food, and take advantage of other duty-free amenities that are constantly evolving. Sustainability is another area where airports are innovating. Many airports are implementing green initiatives such as using renewable energy sources, reducing waste, and implementing water conservation measures. From investing in sustainable and resilient infrastructure, to smaller initiatives such as introducing green spaces and gardens into airport design, airports are leveraging innovation to build a long-term transport system and a more pleasant environment for passengers. In support of our members, ACI’s approach to innovation cuts across all areas of the airport business. Reflective of this prioritisation, ACI World together with ACI Asia-Pacific and the Middle East and ACI EUROPE, are launching a new event dedicated to capturing the remarkable innovations that are transforming airports and the future of air travel. For the first time, Airports Innovate – a dynamic think tank – will be held from November 20-22, in Muscat, Oman, and generously hosted by Oman Airports. Together we have crafted an exceptional programme with the aim of seeking out-of-the-box ideas from the world’s leading experts, visionaries and innovators. As the industry must continue to adapt to a quickly changing landscape; the onus is on every sector of the aviation ecosystem to collaborate in the areas of design, technology, and innovation. This new event is dedicated to providing a platform for this. Just ahead of the event, for the fourth year running, we will open the 2024 edition of the ACI World-Amadeus Technology Innovation Awards, which highlight cutting edge initiatives and leadership by airports that improve the operation or increase efficiency in a rapidly changing environment.
Airport members of ACI will soon be invited to submit their candidacy in one of three categories: • Best innovation(s) in airport passenger related processes • Best innovation(s) in airport operations and installations management • Best airport innovation leader (individual) Another growing area of innovation is what’s known as the Twin Transition, a concept that bridges the agendas of digitisation and sustainability. It focuses on greening technology and data assets to reduce energy consumption and associated emissions (referred to as Greening of IT). It also harnesses the potential of technology and data to accelerate the achievement of sustainability goals (referred to as Greening by IT). For example, this involves using the Internet of Things to optimise the heating and cooling of airport buildings. I’m pleased to report that ACI World has joined forces with Royal Schiphol Group and PA Consulting as a collaborative taskforce to develop practical guidance to assist airports in integrating digital and sustainability priorities into their strategies. The Twin Transition Playbook and White Paper provide key guidance for airport professionals as they intertwine both priorities. Despite change, what is clear is that airports are constantly innovating to improve the passenger experience and reduce their impact on the environment. As technology and innovation continues to advance, we can expect to see even more exciting developments in the near future, with ACI World supporting its members every step of the way. AW
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RUNNING ACI NEWS HEAD
World in motion
We report on the latest traffic statistics from ACI World, ACI Asia-Pacific & Middle East's new Airport Connectivity Report, and ACI EUROPE's green skies commitment.
ACI World news: Global traffic figures close to full recovery ACI World's latest quarterly air travel outlook reveals that global passenger traffic is expected to recover in early 2024 , when around 9.4 billion passengers are expected to pass through the world's airports. Highlights from ACI World’s 14th Advisory Bulletin on the impact of COVID-19 on the airport business—and the path to recovery include: • Global passenger volumes in 2023 are expected to reach 8.6 billion passengers, which is 94.2% of the 2019 level. • The year 2024 is expected to be a milestone for global passenger traffic recovery as it reaches 9.4 billion passengers, surpassing the year 2019 that welcomed 9.2 billion passengers (102.5% of the 2019 level). • The gap between the Business as Usual (BAU) forecast from 2019 and the current recovery projections reveal that the percentage of lost traffic continues to decrease on a quarterly basis, from -23% in Q1 2023 to -13% in Q4 2024. • While the Asia-Pacific region is expected to have a substantial jump in passenger traffic in the first half of 2023 along with the ongoing opening of the Chinese market, its recovery is predicted to slow down significantly in the second half of the year due to challenges in overseas tourism and looming economic concerns. The region is expected to reach approximately 3.4 billion passengers in 2024, or 99.5% of the 2019 level. • Recovery in the Europe region is expected to slow down in the year 2023 and 2024, in contrast to the sharp uptick experienced during its 2022 summer season. By the end of 2023, around 2.3 billion passengers are expected in the region, or 95.5% of the 2019 level. This will further increase in the year 2024 while at a slower pace, to around 2.5 billion passengers, or 101.4% of the 2019 level. • The Latin America-Caribbean region is forecasted to be the first region to surpass its 2019 level. In 2023, the region is estimated to reach 707 million passengers, or 102.9% of the 2019 level. In 2024, the region is expected to welcome 759 million passengers, or
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110.5% of the 2019 level. Like the Africa region, emerging markets such as Colombia and Mexico are predicted to drive the region beyond the 2019 level. • The Middle East region was the fastest-recovering market in the year 2022. In the year 2023, the region is predicted to continue its recovery and reach 394 million passengers, or 96.8% of the 2019 level. In 2024, the passenger number is projected to be 429 million, or 105.4% of the 2019 level. This forecast may be impacted by the economic circumstances of neighbouring markets. • By the end of 2023, the North America region is estimated to reach near the 2019 level with 2.0 billion passengers, or 99.8% of the 2019 level. While the region showed a strong recovery during 2021 and 2022, driven by domestic travel, its growth for the next couple of years is expected to continue at a slower pace. In the year 2024, passenger traffic in the region is forecasted to reach 2.1 billion passengers, or 103.7% of the 2019 level. ACI World director general, Luis Felipe de Oliveira, said: “ACI World projects that global air travel will nearly return to pre-pandemic levels by the end of 2023, with all regions expected to reach this milestone by 2024. “Upside factors include the reopening of the Chinese market and surge in domestic travel, supply chain disruptions gradually subsiding, and inflation slowing down. “While downside risks remain present, we continue to witness the dedicated efforts and commitment of ACI airport members and partners, and we are filled with optimism about the industry’s future. Aviation is a key driver of growth, jobs, and prosperity, providing employment, social benefits, and economic development to communities worldwide. This sector remains a steadfast force in global economic recovery, bridging connections among people, cultures, and economies.”
RUNNING ACI NEWS HEAD
ACI Asia-Pacific & Middle East news: New Airport Connectivity Report
Released at the same time as the opening of the new Middle East office in Riyadh and official rebranding of the region to ACI Asia-Pacific & Middle East (ACI APAC & MID) the new Airport Connectivity Report sheds some light on how the region’s airports are doing in terms of their recovery from the pandemic. Dubai International Airport (DXB) and Doha’s Hamad International Airport (DOH) were the most connected airports in 2022 – followed by Tokyo Haneda (HND) – and retain their status in the preliminary direct connectivity ranking for 2023, with Incheon International Airport (ICN) replacing HND in third place. Developed in partnership with PwC, the Airport Connectivity Report measures passengers’ ability to access the global air transport network – capturing both direct and indirect routes – and also factoring in the quality of service of each connection, such as destination choice, service frequency, onward connectivity and price, contributing to the passenger experience. The report covers a sample of 100 airports that account for almost 60% of the combined passenger traffic in Asia-Pacific and the Middle East in 2019. It reveals that air connectivity in the Middle East stands out with +26% growth in total connectivity in 2022 vs 2019, with direct connectivity to destinations in North America, Asia-Pacific and Africa witnessing the strongest recovery post COVID-19, with low-cost carriers (LCCs) driving the growth. In stark contrast to the Middle East, Asia-Pacific has seen a decline in air connectivity by -38% in the same period. Several key factors contributed to the decline in air connectivity, including extended travel restrictions due to COVID-19, limitations on air traffic rights, constraints on airport slots, rising airfares, economic downturns and geopolitical tensions. ACI APAC & MID says that this decline in air connectivity, coupled with increasing airfares, illustrates its negative impact on the recovery of air travel and the resultant inconvenience to passengers. From the passenger perspective, connectivity is essential for mobility, providing significant economic and social advantages. Nevertheless, preliminary rankings for 2023 suggest a positive outlook for the region. Stefano Baronci, the director general of ACI Asia-Pacific & Middle East, said: “This study provides an invaluable tool to the
industry and policymakers to adopt the use of air connectivity indicators to appraise the performance and sustainable development of the aviation industry and its economic and social impact on countries. “In addition, it also shows how to prioritise positive outcomes for consumers rather than simply focusing on the price-determination function for the benefit of all aviation stakeholders and the travelling public. “The next step will be for ACI Asia-Pacific & Middle East to work closely with each government to promote aviation market liberalisation, visa simplification, investment in the development of infrastructure with a focus on the environment, and innovation of services.”
ACI EUROPE: Delivering the world’s most efficient, environmentally-friendly sky ACI EUROPE is among a number of associations representing the European aviation sector to sign a Joint Industry Declaration announcing their intention to make Europe the world's most efficient and environmentally friendly sky to fly in. In line with the EU’s Green Deal objective of reaching climate neutrality by 2050, and to optimise capacity in the skies, associations representing airlines, airports, air navigation service providers, aviation manufacturers and business aviation have committed to joint action. They aim to transform the sector and work together to maximise capacity in the air, whilst further reducing the environmental footprint of flying. A key technological pathway to this transformation in the coming years is the optimisation of the European air traffic management (ATM) system.
With European passenger traffic set to recover to pre-pandemic levels in 2024, digital innovation in ATM can improve efficiency and provide the capacity to meet this projected demand, while at the same time realising considerable CO2 savings. This transformation, it is claimed, will be achieved by deploying new digital tools developed under the EU’s Single European Sky ATM Research Programme (SESAR). As a first immediate step, the associations will work together to update the EU ATM Master Plan, which serves as the common roadmap for SESAR. With this Declaration, the associations confirm their commitment to work together to make their industry truly sustainable and more efficient, for the benefit of all Europeans.
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AIRPORT REPORT: MUSCAT
The Omani way
Sheikh Aimen Al Hosni, CEO of Oman Airports and ACI World chair, provides Joe Bates with an update on the progress of Muscat International Airport and the development of his country’s airport system. Can you tell us a little more about Muscat International Airport (MCT)?
Muscat International Airport is arguably the jewel in the crown of our airports as it is the biggest airport in Oman and our primarily international gateway, facilitating international travel and connecting the Sultanate of Oman to the world through national carriers, Oman Air and SalamAir, and the host of international airlines that serve it.
How many passengers did MCT handle in 2022 and what is the forecast for this year?
We handled 8.6 million passengers at Muscat Airport in 2022, which was more than double the 3.7 million that passed through the airport in 2021. If you remember, MCT welcomed an all-time high of 16 million passengers in 2019, which dipped to 4.0 million in 2020 and the low of 3.7 million the following year. This year we are on target to accommodate around 12 million passengers in Muscat.
How big a difference has MCT’s new terminal made to the airport’s operational efficiency and the passenger experience? The 2018 opening of Muscat International Airport’s new terminal has transformed the airport and opened new growth horizons. The new 580,000sqm terminal has initially raised MCT’s capacity to 20 million passengers per annum, in the process, significantly improving the airport’s operational efficiency and taking the passenger experience to another level. The facility has modernised and expanded our capacity allowing us to better accommodate the growing number of passengers while providing a more comfortable and efficient journey for all passengers.
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Who are the biggest airlines in terms of market share at MCT today?
After the national carriers Oman Air and Salam Air, flydubai is a key player as it has continued to grow at MCT, aided by its vast network and support of code-share carrier, Emirates. High demand for travel to the Indian subcontinent also means that Air India, Air India Express, Indigo, and Pakistan International Airlines (PIA) are among the biggest operators in Oman. The Oman News Agency recently reported that Oman Air and SalamAir had signed a memorandum of understanding (MOU) “to enhance various aspects of cooperation and develop and implement a joint commercial strategy in the field of air transport”. The article said that the rival carriers had agreed to explore ways to co-ordinate their networks to create greater operational efficiency and to work on areas such as destination planning, schedules, fleet and inventory management, and managing revenue and sales.
How important is Oman Air to the success of MCT and Oman's other airports?
Oman Air is currently responsible for around 50% of our total traffic volumes. The total highlights its importance to us and the significant role it plays in our daily operations and overall success.
Are you striving to develop the cargo side of the business?
Cargo development is a priority for us, even with such strong competition as Dubai International Airport (DXB) on our doorstep. MCT's CEIV Pharma and CEIV Fresh status has played a significant role in supporting our cargo capabilities and attracting businesses looking for reliable and specialised cargo handling.
AIRPORT REPORT: MUSCAT
How important are sense of place facilities and retail/ F&B offerings to Oman Airports?
Sense of place facilities and retail/F&B offerings are key contributors when it comes to enhancing our passenger experience and also promoting the local culture, so will always be a consideration for us when upgrading or expanding or facilities. With regards to promoting Omani culture, The National Museum recently opened an exhibition promoting the cultural heritage of the Sultanate of Oman in a corner of the Departure Hall at Muscat International Airport. It constitutes a supportive addition to the revitalisation of cultural tourism in the Sultanate of Oman, as the Sultanate has a great history and multiple treasures, and it is important for visitors coming to the Sultanate of Oman or travellers through transit flights to know what these treasures abound in the National Museum.
What other airports do you operate in Oman?
Oman Airports is responsible for the operation of four commercial airports – Muscat (MCT), Salalah (SLL), Duqm (DQM) and Suhar (OHS), and separately operate and manage a number of Petroleum Development Oman (PDO) airports to support the oil and gas industry's transportation needs. Each of our airports plays a distinct role within the country's airport system. As explained, Muscat is the main international gateway. Salalah plays a pivotal role as the main tourist airport catering to the growing tourism sector and welcoming visitors to Oman's southern region. Duqm and Sohar primarily meet the domestic and regional connectivity needs of the communities they serve. Oman's PDO airports are part of the Petroleum Development Oman network. Oman Airports plays a crucial role in managing and operating these airports ensuring their efficient and safe operation. Our involvement includes overseeing various aspects such as infrastructure maintenance, air traffic management, and airport services to facilitate their operations. Our target is to expand our footprint and expand our airport portfolio network and creating synergies and economy of scales.
How important is Oman's airport system to the economic growth and development of the country?
I’m sure that my words would be echoed by airport leaders across the world when I say that all airports are important to the regions and countries they serve in terms of their connectivity and economic and social impact, and our airports are no exception. Oman's airport system is a key contributor to the country's economic growth and development. Our primary mandate at Oman Airports is to enable the tourism and logistics sectors in Oman, which are fundamental economic drivers that will help diversify the national economy. We have made significant strides in this regard by growing the number of airlines that serve our airports and expanding the route network from Muscat and Salalah, in particular, which have improved the connectivity of Oman to the world. As you might expect, Oman Airports plays a crucial role as a job generator in the Omani job market, and we are committed to developing our human capital to become a future aviation leader. I am proud to say that we are one of the leading companies in Oman when it comes to investing in the training and development of our staff and enhancing the quality of the Omani labour market. Indeed, we strive to be the employer of choice in Oman, which will help us to attract and retain the best talent.
Where are the country’s airports in terms of their recovery from the global pandemic?
We are getting there! I would describe the recovery as robust as passenger traffic across our airport system is now back to 75% of pre-COVID levels and Salalah Airport has achieved a complete recovery. Muscat Airport is making significant strides along its path to recovery, and I expect its passenger numbers to be back to 2019’s levels in the coming years. To put this in perspective, our airports were closed for six months during the height of the COVID pandemic. The closure proved a significant challenge, but we managed to maintain our workforce. In fact, as a company, we made a deliberate effort to ensure that our workforce remained employed and available for the eventual recovery phase. This commitment to our employees was a key factor in our successful resumption of international flights without major staff issues.
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AIRPORT REPORT: MUSCAT
How seriously do you take good customer service?
Anybody that knows me, and indeed the Omani people, will know that the delivery of good customer service is a never-ending mission for us. For this reason, we continually prioritise enhancing the passenger experience. Possibly the most standout initiative for us in terms of customer service innovation is the launch of singe token travel through embracing new, cutting-edge technology for automated passenger processing. Everything we do is influenced by the desire to make the passenger journey smoother and more convenient. I should probably make it clear that we have heavily invested in enhancing the quality of services for our passengers, and our efforts have gained international recognition. These include MCT being named the Best Airport in the 15 to 25 million passengers per annum category for the Middle East in ACI’s Airport Service Quality (ASQ) awards for 2022. Salalah Airport also triumphed in the ASQ awards, being named as the Best Airport in the Middle East handling less than two million passengers per annum. It was also recognised for having the ‘Most Dedicated Staff’ and for offering the ‘Easiest Airport Journey’ in the Middle East. These achievements further underscore our unwavering commitment to delivering outstanding services across all our airports.
Is Oman Airports committed to the sustainable development of its gateways?
We may not be a pioneer in this area, but we are fully committed to the sustainable development of our airport system and are committed to achieving net zero emissions by 2050. We are currently establishing the baseline for our new long-term environmental, social, and governance (ESG) roadmap. Our efforts include significant initiatives in energy optimisation and the proactive exploration of solar energy. On an individual airport basis, Salalah has achieved Level 3 ‘Optimisation’ and Muscat and Duqm Level 1 ‘Mapping’ status respectively in ACI’s Airport Carbon Accreditation programme. These achievements are proof of our commitment to reducing our carbon footprint and promoting sustainable development in the aviation industry. We would like to thank the teams at each airport and across the company for making the recent ACA successes possible.
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What is your route development strategy and does this differ by airport?
We want to expand the route networks of all our airports and have different strategies for each because, as previously stated, all serve very different markets. Salalah is a well-known leisure and tourism destination for all GCC citizens and residents during the Khareef season, while the beautiful white sands, relaxing resorts, and preserved nature are a unique attraction for the European winter getaway. This unique appeal recently persuaded flynas to launch flights to Dammam, Jeddah and Riyadh in the Kingdom of Saudi Arabia. For MCT, we managed to attract a new airline (AirSial) this year and have a few more in the pipeline as our teams are working tirelessly to increase the number of international destinations served from the capital. We will continue to attract additional business regardless of the challenges that many airlines are facing in terms of aircraft deliveries, engine issues, and shortage of pilots.
What comes next for Oman’s airports in terms of your vision 2040?
Our next steps involve continued infrastructure investments to align with Vision 2040 goals, along with airport land development for diversification and competitiveness. Notably, we completed Phase 1 of Logistic Gate last year and plan to finish the remaining phase next year. This will help us position Oman Airports as a key enabler of economic growth in the state. Logistics Gate, launched with DHL Express, is one of a number of strategic initiatives we are introducing to stimulate economic growth. We believe that the move is a major milestone that will pave the way for us to tap into the logistics market, and we have exciting plans to develop real estate around MCT and Salalah Airport to further expand our business activities and transform Oman Airports into an ecofriendly airport operator. Moreover, in collaboration with our shareholder, we are actively exploring potential investments in growth markets outside Oman, aligning with our commitment to fostering economic development AW and expansion.
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SPECIAL REPORT: INNOVATION
Menu of innovation
Pragma Consulting’s Katie Hastings looks at some examples of retail/F&B innovation at airports across the globe.
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irports have enjoyed a sudden influx of high passenger numbers since the end of the pandemic. While this is great news, it has had an impact on airport operations, and commercial space capacity has become a major challenge for airports as they try to accommodate the growing demand for F&B and retail services. Commercial is an important aspect of revenue generation for airports and while operational requirements must take priority, the significance of commercial revenue should not be ignored. Although there are longer-term infrastructure solutions that airports can undertake to address these challenges, in the shorter-term they need to find innovative approaches to optimise the commercial space.
Integrating F&B and retail
This involves creating seamless transitions between shopping and dining areas, utilising shared spaces to ease passenger flow, and integrating unique concepts that build on many commercial trends such as experiential and digital. Singapore Changi (SIN), Rome Fiumicino (FCO) and Copenhagen (CPH) airports have arguably revolutionised the airport experience by seamlessly integrating F&B outlets with retail spaces. This innovative approach creates a harmonious interaction between dining and shopping, ultimately enhancing the customer experience. One of the key elements of this integration is the airport-owned F&B-friendly seating areas. These dedicated spaces provide passengers with comfortable seating options where they can relax, dine, and engage with their surroundings. By strategically placing these seating areas near F&B outlets and retail shops, these airports not only optimise their seating capacity but also encourage passengers to spend more time within the airport premises. The Jewel Changi complex at SIN showcases a best in class approach to F&B and retail integration for the passenger. The complex combines world class retail outlets and dining experiences with a variety of leisure attractions for the passenger to enjoy. By integrating F&B and retail, Jewel Changi offers passengers a comprehensive experience that
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maximises commercial opportunities within a limited space while supporting the passenger journey. Similarly, Eataly at FCO and the FoodMarket in CPH have seamlessly integrated F&B and retail, offering a unique experience for travellers. Eataly's combination of gourmet restaurants, cafes, and retail shops in Fiumicino enables passengers to immerse themselves in authentic Italian food culture while exploring retail offerings. Whilst Copenhagen’s food market integrates F&B and passenger seating to enhance the passenger experience and drive revenue.
Optimising operational efficiencies
This is another crucial aspect of mitigating commercial space capacity issues in airports. Efficient processes help reduce congestion and enhance passenger flow while also reducing the stress passengers have during the airport journey. This in turn can result in an increase in passenger spend for the airport. Tokyo’s Narita International Airport (NRT) and Miami International Airport (MIA) in the US are two prime examples of building improved operational efficiency. Narita launched ‘Face Express’, a contactless airport experience for passengers. Through the use of biometric technology, passenger’s facial imagery is captured and verified against their passport which can then be used throughout the journey, from check in to the boarding gates. Passengers can therefore experience less congestion, have a more seamless experience and ensure additional time for an airport’s retail offering. MIA’s MIA2GO app allows passengers to order their F&B from any unit available for collection. This innovation not only streamlines the shopping experience but also reduces the need for extensive retail spaces within the terminal. By leveraging technology to optimise operations, airports can alleviate space constraints while enhancing customer satisfaction. Mobile food ordering apps such as MIA2GO also create the opportunity to increase the quantity of food and beverage concepts at airports without increasing the commercial space in premium locations, using remote kitchens.
SPECIAL REPORT: INNOVATION
Brand activation and pop-up concepts
These initiatives bring unique and engaging experiences to passengers, build on the impact of commercial retail trends, and attract more passengers within a limited space. Amsterdam’s Schiphol Airport (AMS) exemplifies this approach through its ‘Holland Boulevard’. This is a dedicated area that showcases the best of Dutch culture, featuring pop-up exhibitions, art installations, and interactive displays. By promoting local brands and cultural experiences, Schiphol is enhancing passenger engagement while creating additional revenue streams. Such activations enable airports to adapt their commercial offerings dynamically, leveraging temporary spaces and revitalising the passenger experience.
Utilise the ‘dead space’ around the airport
Many airports can further enhance the commercial provision within a limited amount of space by looking to up and coming commercial trends that are being seen in downtown commercial areas. Commercial trends such as experiential activation is becoming increasing prevalent both downtown and at airports, too, as many passengers have begun wanting to experience an increased level of innovation and excitement at the airport. Experiential activation can build the passenger experience and commercial revenue in airports through the use of small, empty pockets of ‘dead’ space that are unable to house a significant scale of commercial offerings but are nevertheless useful in drawing passengers to key commercial zones through the innovative use of space. Airports such as Schiphol and San Franciso International Airport (SFO) are able to understand how to activate their dead spaces in order to build commercial revenue with experiential activation. At AMS, the focus is on transforming empty corridors into immersive experiences. The Riiksmuseum, for example, is located between Lounges 2 and 3 and holds regular exhibitions and events throughout the year. SFO builds on the arts and culture of the city through utilising space that was no longer being used for operational purposes such as unused ticket machines as temporary displays.
Embrace digital innovation
Digital innovation is increasingly being used in order to activate a more efficient use of space as passenger awareness and technological
usage continues to grow. While digitalisation is primarily focused on the operational aspects, there are many ways and examples of how airports have utilised digitalisation for commercial purposes. Many commercial brands are taking advantage of the growth in consumer knowledge around digital innovation and technology by utilising various technological initiatives such as mobile apps, online ordering platforms and personalised marketing campaigns. This can be done through the launch of e-commerce sites which encourage passengers to avail of a seamless travel retail shopping experience like that of Auckland Airport’s ‘The Collection Point’ and Dublin Airport’s ‘Click and Collect’. Both provide passengers with the ability to collect their purchases in the airport at the beginning or end of their journey. Passengers are therefore able to shop on a tight timeline or travelling with their purchases for the entire journey with airports able to offer additional products online that would not take up additional commercial space. Other airports are using digital innovation to build on the ‘wow factor’ of the airport and increase the passenger experience. Taoyuan International Airport (TPE) in Chinese Taipei, for example, recently ran a digitally immersive pop-up discovery store for the Glenfiddich whiskey brand. Passengers can have their movement captured by a motion sensor which creates an evolving piece of computer-generated art that references the process in which the whiskey is made. Passengers can then personalise their purchases with a written or recorded message by scanning a QR code on their phone. Commercial space capacity issues pose significant challenges for airports in meeting the growing demands of passengers and consumer trends. However, there are many ways in which airports can ensure a more efficient use of space while also building the passenger experience and increasing commercial revenue. Through the integration of F&B and retail, operational efficiencies, leveraging brand activation and also utilising ‘dead space’ and digital innovation, airports can enhance the passenger experience while reducing passenger stress, optimise commercial spaces, and maximise revenue potential within a limited space. AW
About the author
Katie Hastings is a consultant at Pragma Consulting (www.pragmagroup.com) and was previously group strategy analyst for Irish airport operator, daa.
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SPECIAL REPORT: INNOVATION
Time for technology
INFORM’s Alexander Wendorff explains how advanced technologies can help airports better manage and optimise their resources.
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oday’s challenging market conditions continue to heap pressure on airports to make the optimum use of their resources. Indeed, growing traffic demands, labour shortages, increased pressure to meet sustainability goals and heightened regulations are just some of the reasons why airports have to make maximum use of their workforce, ground support equipment, hub and turnaround processes, gates and stands. These requirements are driving the so-called smart airport market, which the Fortune Business Insights Smart Airport Market report for 2023-2030 projected would grow from $4.05 billion in 2023 to $11.56 billion by 2030 reflecting a compound annual growth rate (CAGR) of 16.1%. Going forward, the smart airport will embrace the application of new technologies that both improve business processes and maximise resources, while also enhancing the passenger experience. Gaining greater insights into the technologies that are facilitating airports’ better resource management and process optimisation is important for airports and the industry at large.
ChatGPT is another technology trend that airports are beginning to apply to improve the passenger experience and support better data capture and management for enhanced market insight and decision making. Another form of technology which is helping airports further mitigate their most pressing challenges are advanced software solutions designed for improved resource management and process optimisation.
Industry trends and market conditions
These Artificial Intelligence (AI) based solutions support intelligent planning, flexible shifts, and working time models which accommodate workload demand fluctuations and unpredictable flight changes. They optimise all scheduling processes (flight schedule-driven staffing requirements, capacity planning and roster modifications, for instance), helping airports strike a balance between cost-effective staffing, employee requests and passenger satisfaction. Deployed across ground services, engineering, maintenance and cargo handling operations, the software automates staff scheduling and roster planning processes, taking into account rules and regulations, customer service level agreements (SLAs), collective bargaining agreements, and an airport’s business and financial objectives. Employees are engaged digitally, able to access their schedules online and swap shifts, enter their preferred shifts, and make vacation or personal time-off requests. To address demand fluctuations and unexpected disruptions, the software makes recommendations to meet additional flight needs, and short-notice staff changes with consideration to required qualifications. All workforce-related processes (for instance, demand planning, scheduling, time recording and management, payroll) are integrated for seamless operations.
The global pandemic arguably fast tracked the introduction of touchless technology at airports and made airports even more open to new approaches and technologies as reflected in the latest trends and market conditions. There are several trends currently affecting airports, many of which relate to the application of advanced technologies. For example, over a third of airports already deploy biometric data instead of the manual document check-in process of passengers presenting passports and boarding passes, and many others are considering applying this technology. Robots are also taking off at airports. Mordor Intelligence estimated that the airport robot market will achieve a CAGR of 15% by 2025. Robots are taking the place of human-manned desks, addressing passengers’ inquiries and supporting security screening and baggage handling. Also being deployed at airports are autonomous vehicles which leverage advanced light detection and ranging (LiDAR), AI-powered object detection, telematics, and computer vision to support various ground handling processes (container loading/unloading, for example). Through smart technologies like IoT, more data is available to use handling equipment of all kinds more efficiently, reducing emissions and helping airports meet their sustainability goals.
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Technologies promoting airport optimisation
Airports have been stepping up their game by seeking solutions that will increase operational efficiency and an improved passenger experience. They are applying intelligent solutions that optimise specific areas of operation. These include solutions for: • Workforce management • Ground support equipment • Hub and turnaround management • Gates and stand management
– Workforce management solutions
SPECIAL REPORT: INNOVATION
– Ground support equipment solutions
Designed as smart planning tools, they provide airports with scenariobased workload and resource demand forecasting of requirements for both personnel and ground support equipment ahead of upcoming scheduling needs. Leveraging technologies such as Hybrid AI, Operations Research, and advanced optimisation, they help ensure a successful day of operations even under the most challenging circumstances. Providing tactical resource management and decision support, they optimise resource management.
– Hub and turnaround management solutions
By delivering full visibility of hub and turnaround processes, these solutions bring complete transparency and real-time monitoring of clearance activities, milestones, passenger connections, baggage and crew transfers, and related interdependencies. This enables bottlenecks to be identified early and responsible parties forewarned of these potential disruptions. Using flight and handling details, imminent flight delays can be calculated and those processes which may prompt flight delays quickly addressed to prevent operational disruptions. The solutions’ loadbased, dynamic process model facilitates precise calculation of target time off-block calculations. Cost-based decision support – which considers delays, rebooking and crew costs – is another valuable feature of the software. In short, these solutions facilitate proactive, revenue-based decision making, early interceptions of potential disruptions for reduced delays and related costs, and increased reliability.
– Gates and stand management solutions
The most advanced solutions offer a full range of strategic and tactical planning for controlling gates, apron positions and terminal resources. They automatically provide relevant data to users and third-party systems, supporting optimised resource management and cost reductions. The solutions deliver “what-if” scenarios that enable the development and then assessment of alternative plans. On the day of operations, aircraft stands, gates, counters and baggage belts are continuously optimised and adjusted based on current flight plan information. All assignments are automatically forwarded to the airport’s Flight Information System (FIS) and Airport Operational Database (AODB). Rule-based requirements and preferences (e.g., size restrictions, minimum ground times, minimum time intervals, temporary closures, crossing gates/stands area passenger flows, airline priority allocation of advanced positions) are considered.
Through the solutions’ powerful optimisation methods, resources are maximised, while aircraft tows and passenger bus transports are minimised. By following specific rule sets relating to different terminal resources, the software enables precise demand determinations for passenger gates, belts, common and dedicated check-in areas, as well as optimised resource allocations and accommodation of specific airline requests. The software’s automatic capture and accumulation of relevant flight data analysis and visualisation, reporting, user-friendly dashboard and data warehousing further supports efficient operations and scenarios. Planners and dispatchers experience increased productivity, while airlines and passengers experience greater satisfaction.
Conclusion
Airports are facing increasing pressure from airlines related to an airport’s aeronautical fees and the airlines’ greater use of their “preferred airports” which accommodate their financial requests. They must also contend with heightened security controls and standards relating to aircraft movements, passenger safety, and baggage handling. Knowing the important role airports play as economic engines in their communities, many governments are lending their financial support to help address the airlines’ greatest challenge – labour shortages. In the US, for example, the Department of Commerce awarded approximately $20 million in aviation workforce development grants through its Aviation Learning Opportunities & Funded Training (ALOFT) Program. The funds, which were distributed to airports, maintenance repair and overhaul (MRO) operators, and aviation products and aircraft manufacturers, were to be used to build on-site training facilities and service expansions, and for third-party and vendor training costs on machinery and equipment, training curriculum materials and salaries. Financial support from governments, in combination with the deployment of advanced technologies to optimise resource management and operations, will ultimately pave the way for airports to achieve a strong balance between business and financial goals and better meeting the needs of the airlines and passengers. AW
About the author
Alexander Wendorff is a solutions manager for INFORM Aviation Division, a leading global provider of AI-based optimisation software that facilitates improved decision making, processes and resource management.
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SPECIAL REPORT: INNOVATION
ACI World's Technology Innovation Awards, held in partnership with Amadeus, highlight cutting edge initiatives and leadership by airports that improve operations or increase efficiency.
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n what has now become an annual event, ACI World and Amadeus invite airports to submit innovative technology projects and examples of leadership that enhance the passenger journey, drive operational efficiency or improve processes for employees, travellers and other stakeholders, for the chance to win a Technology Innovation Award. Past winners have involved themes such as big data, biometrics, artificial intelligence, and automation. This year, from submissions received across the globe from airports of all sizes, a panel of external industry experts decided that the 2023 award winners are Incheon, for its Airport XR Metaverse Services initiative; Hong Kong for its innovation in airport operations and installations management; and Miami International Airport’s Maurice Jenkins for being an innovation leader.
Incheon innovation
The ‘Best Innovation in Airport Passenger Related Processes’ was won by Incheon International Airport for its XR Metaverse Services initiative, which connects virtuality and reality. The project is a new and innovative metaverse service that is designed to allow passengers to enjoy smart, easy and comfortable travel through the South Korean gateway. It consists of a 3D spatial metaverse environment providing an indoor wayfinding service of the actual passenger terminals (T1, T2 and Concourse), covering about 1.4 million square metres. It is based on 3D spatial data and augmented reality (AR) technology and offers a virtual experience of Incheon International Airport using VR technology. AR-based indoor wayfinding enables users to visit the digital version of the airport from home and get the necessary information by virtually experiencing various facilities and processes within the airport.
Operations management excellence in Hong Kong
The ‘Best Innovation in Airport Operations and Installations Management’ award was won by Hong Kong International Airport for its Digital Apron and Tower Management System (DATMS). The initiative represents the first airport and Air Navigation Service Provider (ANSP) collaboration system with a single digital platform. Using the latest digital video technology, and in line with the ICAO Global Air Navigation Plan, Airport Authority Hong Kong (AAHK) collaborated with the Civil Aviation Department (CAD) of Hong Kong to implement the DATMS for Hong Kong International Airport.
The new system enables stakeholders to overcome physical visual constraints by supplementing the out-of-window view with ultra-high-definition camera views on displays, overlaid with essential aircraft information to enhance visual surveillance by airport and aerodrome operators.
Leading by example
The judging panel awarded the ‘Best Airport Innovation Leader’ accolade to Maurice Jenkins, chief innovation officer at Miami International Airport. ACI World and Amadeus note that Jenkins has more than 30 years’ experience and sustained superior performance directly linked to Miami International Airport's strategic growth and the realisation of its innovative objectives. They state that he has “envisioned new technologies that improve business processes and customer experience and has been a keen adopter of self-service technologies, while also encouraging airlines serving the airport to embrace innovation”. Jenkins has also applied his expertise to help drive improvements for the benefit of the wider industry as past chairman of ACI North America’s Business Information Technology (BIT) Committee, which sponsors initiatives to develop ground-breaking airport technology-based service models and works with members and partners to encourage innovation in the industry. Amadeus’ executive vice president for airport and airline operations, Elena Avila, enthused: “The industry has made great progress recently, particularly by applying new technologies like biometrics to improve the passenger experience. “Looking forward, we anticipate a need for more fundamental technology transformation. Big challenges like responding to disruption require a whole new level of collaboration and data sharing between airports, airlines and their stakeholders. “There’s a huge opportunity to join up the technology platforms underpinning these shared processes so every company involved in aviation can better communicate, share their business logic and work from the same operational view. Ultimately, that’s how we’re going to achieve a step-change and it’s a primary focus for my team.” ACI World will shortly launch the 2024 Technology Invitation Awards, when submissions will be invited for three award categories – Best innovation(s) in airport passenger related processes; Best innovation(s) in airport operations and installations management; and Best airport innovation leader (individual). AW
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SPECIAL REPORT: INNOVATION
Access all areas
LaGuardia’s Terminal B shows just what can be achieved when it comes to designing an airport terminal that is accessible by all, writes Stanis Smith.
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any in the airport industry are aware that LaGuardia’s Terminal B has won a host of host of design and sustainability awards despite its full construction only being completed in the summer of 2022. Fewer in the industry are aware that it also recently received Gold Certification under the Rick Hansen Foundation Accessibility Certification (RHFAC) programme, the first airport terminal in the US to achieve such recognition. So, what is RHFAC? And why is an accessibility programme important? To answer those two questions, we need some context. It is no exaggeration to say that airports are among the most significant public buildings in any city and community. For that reason, they are often held to higher standards than other building types in many respects, particularly when it comes to accessibility. While most airports worldwide have been designed and built to meet local accessibility codes, these are not consistent from one jurisdiction to another, they are typically out of date with passenger needs, and they do not give credit for innovation. One of the interesting trends in recent years has been the appearance of various aspirational standards for sustainability, such as LEED, BREEAM, WELL, Fitwel etc. While certain aspects of these standards may be not particularly be well-suited to airports, they have served two critically important functions. They have encouraged airports and their designers to go beyond minimum standards, and they have encouraged innovation. As a result, sustainable design is becoming mainstream in the airport industry to levels that go significantly beyond code-compliance. When it comes to accessibility, the picture is different, and accessible design is lagging behind sustainable design. Some progressive airports
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have introduced accessibility features into their terminals that are not required by code, and such initiatives are to be welcomed. However, until recently there had been no comprehensive framework that airports could use to approach accessibility in a holistic manner, go beyond code-minimums, encourage innovation, and be inclusive of people with mobility, visual, hearing and cognitive disabilities. Nor had there been any way for airports to get third-party accreditation and recognition if they decide to go above-and-beyond when it comes to accessibility. It’s fair to ask why accessible design should go above-and-beyond code-minimum compliance. The most compelling response I can give to that question is simple self-interest: each of us will probably live with a disability at some stage in our lives, whether due to illness, accident or aging. People with disabilities are the largest minority group in the world and one that is growing for demographic reasons. According to United Nations data, over a billion people have a disability globally – some permanent, some temporary, some visible and some invisible – and as the population ages, that proportion is set to increase. Airports have unique considerations when it comes to accessibility. Air travel operates across multiple regional and international jurisdictions. For passengers with disabilities, different accessibility features in different airports can result in differing expectations and frustration. Navigating airports is often stressful and sometimes confusing. For people with disabilities, it’s even more so. For example, individuals with vision disabilities can’t always read the changing information boards. Individuals with hearing disabilities can’t always hear updated flight information over airport public address systems.
SPECIAL REPORT: INNOVATION
To address this concern, the Rick Hansen Foundation, a non-profit foundation with a lengthy and distinguished track record of advocacy for people with disabilities, has spent several years developing the RHFAC programme, which includes the following features: – It is a rating and recognition programme that measures the meaningful accessibility of a site based on the holistic user experience of people with varying disabilities. – RHFAC is designed to challenge building owners and operators to go beyond code minimum to embrace innovative solutions and make their sites universally accessible. – It provides a consistent and pragmatic approach to measuring access through a rating survey and celebrates an organisations’ commitment to accessibility through certification and labelling of their sites. – The programme gives credit for innovation in many of its rating categories, thereby encouraging owners and designers to be creative in addressing accessibility needs. – It provides owners and/or operators with a better understanding of their current level of meaningful accessibility via their rating scorecard, a roadmap of where to improve, and sets aspirational goals and ways to recognise their commitment. – RHFAC is well-suited to airport terminals as well as numerous other building types. – The programme recognises an organisation’s commitment to accessibility through formal certification in two tiers: ‘RHF Accessibility Certified’ or ‘RHF Accessibility Certified Gold.’ – It is based on current global research as well as the United Nations Social Development Goals. – RHFAC has gone to great lengths not to conflict with local codes and standards such as the ADA, and in the rare situations where such conflicts may arise, local codes take precedence. – It can be used for completed projects or projects under design. – The costs of obtaining an RHFAC rating are modest, far below the costs of rating systems such as LEED etc. RHFAC has been used successfully on more than two thousand building projects across North America, including over a dozen international airports. We would like to congratulate LaGuardia Gateway
Partners (the private manager and developer of LaGuardia Terminal B) as well as the Port Authority of New York and New Jersey, for the leadership they have demonstrated by adopting RHFAC and being the first US airport to do so. As part of being awarded RHFAC Gold, some of the innovative accessibility features in LaGuardia’s Terminal B include: • Hearing loops at all guest experience desks. • Intuitive departure board displays in two different formats and colour-coding to assist with intuitive navigation. Distance to gates is also displayed. • Accessible assistance kerbside drop-off/check-in service and call button. • Intuitive and consistent colour-coded wayfinding throughout the terminal, including the use of architectural and art landmarks for intuitive navigation. • Calming seating areas that are noticeably different from the rest of the terminal’s spaces thanks to sensory stimulation provided through plants and foliage. For any architects, interior designers, engineers, or technologists reading this article who may be interested in becoming accredited as RHFAC professionals, in-person courses can be taken at a number of universities, and an online course is available from Athabasca University. In conclusion, the spirit of RHFAC is that everyone regardless of their age or abilities should be able to travel with comfort, dignity, and independence. I hope that this article has made a compelling case for the industry to consider the benefits that RHFAC has to offer, and I would be pleased to provide any further information on request. AW
About the author
Stanis Smith (stanis@stanissmith.com), has spent most of his career designing airport terminals around the world. He is also a Board member of the Rick Hansen Foundation, a non-profit dedicated to removing barriers and creating an inclusive world for people with disabilities.
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SPECIAL REPORT: INNOVATION
Smart operations
Amsterdam Schiphol continues to innovate by using smart solutions to enhance its operational efficiency and help secure its long-term future, write the Royal Schiphol Group’s Zahra Merchant and Jan Zekveld.
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he very nature of the aviation industry ensures that it is constantly evolving and creating new logistical and transformational challenges for airports, which need to be addressed before current solutions become outdated and they eventually have a big impact on operations. The Royal Schiphol Group cannot afford to let this happen at Schiphol Airport as we are the gateway to the world for Amsterdam and the Netherlands, welcoming 52.5 million passengers (+105%) and 397,646 aircraft movements (+17%) in 2022. Luckily, Amsterdam Schiphol (AMS) is used to dealing with constant logistical challenges and, as a result, we have learned to adapt really well, resulting in a robust and resilient organisation that has gained a well earned reputation for developing innovative solutions to different challenges.
Explorative innovation
We tend to look at the innovative landscape as space and horizons as ‘Earth’, ‘Moon’ and ‘Mars’ within it as a modern-day simplification of the three horizons of innovation model developed by McKinsey in 1999. While we innovate on all horizons as an organisation, Schiphol’s Innovation Hub focuses primarily on horizon two and three challenges. So-called Moon and Mars shots. The team has developed its own way of working. A method that fits projects with horizon two and three challenges. This includes looking outside the aviation industry for innovation, or exploring companies, products and systems that remained relevant, and almost future proof through their innovative thinking and creative mindset. The projects below show innovation at AMS its best, as well as the type of co-operation and commitment needed by different stakeholders in the airport ecosystem to make them happen. All our projects are multi-disciplinary in nature and require collaboration.
UFP Research Lab
One of the projects within the environmental health domain focuses on mitigating the exposure to potentially harmful air pollutants such as
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ultrafine particulate matter to those who work at the airport environment. Local air quality is a highly complex topic that takes time to understand, but also super important to accelerate. Firstly, we connected thought leaders on the research topic to come up with a truly explorative vision, strategy and first experiments with novel applications of existing (aerial water droplet) technology. Later, we created a UFP Research Lab. We scouted the world on the latest air quality sensors and installed them at various aprons. As a result, we can now carefully quantify the impact of various mitigative strategies on local air quality and also learn more about the influence of weather and other factors. Schiphol | New research lab for ultrafine particles on apron
Timeslots
The long queues, delays and flight cancellations experienced across Europe in the summer of 2022 caused by airports and other stakeholders not having the staffing levels to cope with unexpectedly fast rise in demand, proved the catalyst for the launch of Timeslots at AMS. It was a simple idea that arose from a larger future vision for an home-enrolment programme for all passengers. It allows users to book a timeslot for security up to 72 hours (about 3 days) prior to their flight. The QR code received confirms their place in a virtual queue and can be scanned on arrival at the designated queue and timeslot chosen. The passengers can then swiftly make their way through security and free of cost. At AMS, we are actively introducing innovative ways to better the quality of our service offerings to all passengers. The benefits of Timeslots include improved passenger sign-in patterns, a smoother flow through the security process and an overall better passenger experience. It also provides a new touchpoint for passengers at the airport, which gives us better insights into passenger behaviours. To date, more than 668,000 time slots have been reserved, and a hugely positive 98% of all those to use the initiative say that they were very satisfied with the service.
SPECIAL REPORT: INNOVATION
Amsterdam Schiphol is currently examining whether the possibility to reserve time slots can be extended to other airport processes such as check-in and passport control. Schiphol | Timeslots
COBOT
The world is moving towards automation, where manual repetitive tasks are replaced by robots. However, if one looks closely at aviation and especially the baggage halls, one learns that the vast majority of their processes are still done manually. ‘COBOT’ (an acronym for ‘Collaborative robot’) is an emerging technology in robotics where an ecosystem is created to allow for a man and robot to work together as a unit and in the same space. Doing so, should increase the quality of work and, over time, the working life of staff. A Danish company called COBOTLIFT manufactures robot arms that can lift heavy items and place them at a different location, removing all the physical strain from a human in the process but still relying on the intelligence and judgment of the human. Their robots were created with the purpose of being used at bakeries to lift heavy sacks of sugar and flour, but through rapid development and testing, an appropriate model was created especially for the baggage halls at Schiphol. To date, we have purchased 19 COBOTs, which are going to be implemented across the baggage hall south starting at end of October 2023. We are confident that we will shortly see the positive impact it will have on the baggage handlers and how they work in the future. Amsterdam Airport Schiphol to fast-track the use of baggage robots after successful pilot project.
Deep Turnaround
Deep Turnaround improves the aircraft turnaround processes based on historic, real-time and predictive insights for all stakeholders. Using AI image-based processing, the Deep Turnaround algorithm detects and reports over 70 unique turnaround events in 30 turnaround processes. It detects delays as early as 40 minutes before the targeted off-block-time (TOBT), and helps to make informed decisions. It uses computer vision techniques gained from thousands of hours of data from aircraft turnarounds at Schiphol, giving it the predictive capabilities to detect delays before anyone else can.
On top of these predictions it uses machine learning to predict a so called Actual end of ground handling time, that is an indication for when the ground handling will be finished and usually is more accurate than user-entered TOBTs. This information is displayed to all relevant stakeholders through a dashboard that shows then where and when to take action. Benefits of this technology are very broad. Examples range from post-operational analysis, to increased stand-capacity through better utilisation of existing assets and better use of available runway slots.
Conclusion
At Schiphol, we are innovators. The centralised Innovation Hub’s role is to accelerate change by spearheading innovation, while still making sure that we are in line with the overall positioning and vision of the Schiphol group. While we celebrate our successes, we are not afraid to recognise potential failures or reassess priorities when the situation calls for it. Explorative innovation is characterised by high degrees of uncertainty, and somethings innovations just don’t fly. We continuously iterate on various innovations over the entire scope of the aviation sector and their relevancy on a timescale. We focus on specific issues in the airport environment such as autonomous technology, the future of baggage handling, and the future passenger journey. Currently, we are testing automated vehicles to shuttle passengers around airside, and we hope to see something come from this by 2024. Other initiatives are focused on new energy solutions or experimentation with other self-driving technology. Indeed, you can follow our innovation closely on Schiphol.nl/ innovation and, when interested in opportunities to use the innovations at other airports, email us on aviationsolutions@ schiphol.nl or visit Schiphol | Schiphol Group Aviation Solutions AW
About the authors
Zahra Merchant is a strategic innovator and Jan Zekveld is the head of innovation with the Royal Schiphol Group. Both are based in the Schiphol Group’s Innovation hub at Schiphol HQ in the Netherlands.
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SPECIAL REPORT: INNOVATION
The future is now
George Richardson, co-founder and CEO of AeroCloud, explains how computer vision can transform airport operations and the passenger experience.
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he removal of COVID-19 restrictions has allowed a steady return to air travel. According to the UN Aviation Agency, the number of air passengers carried in 2022 was an estimated 47% up on the previous year and is expected to reach close to pre-pandemic levels this year. But while this is undoubtedly positive news, the industry faces a series of ongoing challenges. Airports are under pressure to accommodate this growing number of travellers and deliver the best possible customer experience, while they contend with issues including staff shortages and ever tighter operating budgets. In an effort to overcome these challenges, airports are moving away from the legacy technology on which they’ve relied on for years, and embracing developments like cloud, data analytics and artificial intelligence (AI), the latter of which includes machine learning (ML) and perhaps the most exciting of all, computer vision.
What is computer vision?
Computer vision is a subset of AI. On a simple level, it’s worth comparing with human vision. Humans make decisions based on visual input received from their eyes. If, for example, a person wants to recycle, they can split out their glass bottles, paper and metal from items that can’t be recycled. It’s a decision – and subsequent action – entirely based on visual input. In the same way, software can be built to allow a computer to make similar decisions based on input received from a camera; so, it can detect items from a recycling conveyor belt visual feed and pick out materials fit for recycling.
Tracking passenger flow – accurately – for the first time
When used within airports, computer vision has the potential to significantly improve the way in which they are managed, helping
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to accurately predict the flow of travellers, and enabling operational leaders to make confident decisions on everything from resource allocation to commercial opportunities. Understanding how passengers move through an airport, from kerb to gate, is a decades-old issue. And a hold-up at any part of that journey can have a knock-on effect; potentially leading to long queues, delayed flights, and unhappy passengers. Airports have trialled various technologies to solve this issue, including WiFi and Bluetooth. Computer vision, though, is the first technology capable of intelligently, accurately, and anonymously tracking passengers throughout their whole journey in real-time – from arriving at the airport, through security and departure halls to the gate, and then boarding the aircraft. In essence, computer vision takes visual inputs from CCTV cameras located throughout the terminal and makes decisions based on that data. Combining this visual data with AI and ML algorithms allows airport operators to spot trends, draw learnings, and predict future scenarios to inform more accurate decision-making. Across most sectors, including airports, there have naturally been worries about AI from consumers when it comes to privacy and security. Importantly, computer vision can be used anonymously by airports while being fully compliant with all local privacy legislation, such as GDPR in the European Union and the UK. No data is stored, and passengers can’t be identified as individuals.
What can airports achieve with computer vision?
By monitoring passenger flow in real-time, alerts can be triggered in response to any unexpected bottlenecks that may occur, meaning they can be quickly and effectively addressed with additional resources.
SPECIAL REPORT: INNOVATION
For instance, staff can be notified when passengers have been waiting at a check-in desk for more than 20 minutes; a situation that can be quickly remedied by opening additional desks. Facilitating smoother passenger flow is a key objective for airport operators. But the benefits of using computer vision go beyond this one use case. Computer vision can enable better resource planning. By connecting the data insights, it provides with AI and ML technologies, airports can maximise their – often stretched – resources, by redistributing employees to where they’re most needed, based on real-time or predicted operational needs. If they know, for example, that departure halls are especially busy between 3pm and 5pm every Friday, they may consider emptying the bins more regularly or scheduling additional maintenance checks on the bathroom facilities. The technology can be used to maximise the profits of concessions, too, as getting passengers quickly through security and into the departure hall is a key source of revenue for many airports in Europe. Airports can combine insights from computer vision with data from other sources – like a business intelligence platform – to identify valuable trends data. This can be passed on to inform planning for concession partners, such as duty free, retailers, and hospitality providers, to maximise customer spending. Should there be a large number of passengers arriving at a particular time each day, concessions could consider running promotions or creating a pop-up to encourage sales, for instance. Indeed, providing adequate retail and hospitality opportunities, being certain the correct number of staff is available to ensure facilities are kept in good condition, and limiting the amount of time people spend queuing will all help deliver a better experience for passengers. This, in turn, can engender greater loyalty among travellers and encourage them to return to a given airport should alternative options exist.
Tried and tested
It may once have been a science fiction writer’s dream, but today, computer vision is very much a tried and tested reality. Liverpool John Lennon Airport, for example, uses it. Historically, the UK gateway used various systems and manual methods like queue counting to track how individuals travelled through the building, but none delivered the desired insight. But by identifying peaks and bottlenecks, and where queues were most likely to be, computer vision enabled its operations team to flatten planning curves and increase efficiency. In addition, the accurate information it provided helped inform its marketing team’s decision-making and improve spend per head in its retail and concessions environments. And, on the other side of the Atlantic, Florida’s Sarasota Bradenton International Airport used the technology to automate gate allocation and passenger prediction analytics, helping it take on new airlines and increase its annual passenger figures. Going from 900,000 passengers in 2019 to over 3.4 million in three years, it was the US’s fastest-growing airport of 2022.
Overcoming challenges
Airports today face a variety of challenges. While numbers may be returning after the pandemic, many are still struggling with the fall in revenue and debts incurred during the peak of COVID, not to mention the shortage of employees. Computer vision overcomes challenges such as these. It uses existing CCTV infrastructure, which eliminates the need for expensive replacement equipment, and as no camera images are stored or accessed, it complies with data privacy regulations. Most importantly, it’s proven to increase efficiency and reduce friction in flow, improving the passenger experience while delivering additional benefits around security, marketing, revenue, and more. This is a new technology for airports. These current applications are only scratching the surface. For the airport sector, when it comes to AW using computer vision, the sky really is the limit.
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SPECIAL REPORT: INNOVATION
Pursuit of excellence
We review some of the highlights of the recent ACI World Customer Experience Global Summit in Incheon.
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ver 600 participants from across the world attended the ACI World Customer Experience Global Summit – the premier global event dedicated to customer and employee experience in Incheon, South Korea, in early September. The theme of this year’s event was ‘Empowering the Airport Community for a Customer-Centric Culture’, and it proved a popular one as it provided the perfect opportunity to share ideas, experiences and best practices on how to take customer service to the next level. The Summit aimed to explore innovative strategies and solutions to elevate the airport passenger experience, raising the bar for the aviation community. Hag Jae Lee, president and CEO of host Incheon International Airport – the first airport in the world to achieve the highest level (Level 5) of ACI’s Airport Customer Experience Accreditation programme – opened the Summit, with delegates also being officially welcomed by Won Kug Baek, South Korea’s Vice Minister of the Ministry of Land, Infrastructure and Transport (MOLIT). Opening addresses were the given by Luis Felipe de Oliveira, director general of ACI World and Stefano Baronci, director general of ACI Asia-Pacific and Middle East. Highlights of the event included insights from Luc Mayrand, the vice president and creative portfolio executive at Walt Disney Imagineering, on how to harness the magic of entertainment and apply it to the airport experience, and of course, the Airport Service Quality (ASQ) Awards ceremony. ACI World’s annual ASQ Awards recognise airport excellence in customer experience worldwide based on data from ASQ’s renowned Departures and Arrivals Surveys.
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In total there were 14 Summit sessions with over 45 C-suite speakers covering timely topics such as leadership, the role of IT, the human experience, airport groups, revenue generation and travel retail. Among the Summit panel speakers was Mikael Charpin, general manager and producer at Moment Factory, whose company is known for designing immersive light and sound environments that transport audiences to different worlds through a combination of interactive elements. There was also an insightful fireside chat between Elena Avila, executive vice president of airport information technology and airline operations at Amadeus, and Damon Wong, senior vice president of Changi Airport Group. One of the Summit sessions glimpsed into the future where mobility isn't just about getting from point A to B, and aircraft are not the only transport options. Together with Chul Bae Lee, executive vice president, and head of LG Electronics’ Corporate Customer eXperience Center, participants were shown a version of the world where airports transform into dynamic intercity transportation hubs, and the airport experience becomes so finely tailored that it adjusts and advances in harmony with individual preferences. At the Summit’s Closing and Handover Ceremony, Hartsfield-Jackson Atlanta International Airport (ATL) was announced as the host of the 2024 ACI World Customer Experience Global Summit. The event will take place in Atlanta from September 24-26, 2024, and is set to welcome global and regional airport CEOs, industry leaders, regulators, and dignitaries.
SPECIAL REPORT: INNOVATION
ACI World director general, Luis Felipe de Oliveira, enthused: “As the curtains fall on yet another successful ACI World Customer Experience Global Summit, it is clear that airports are prioritising the passenger experience, and in turn, a more sustainable future for the industry, travellers and communities worldwide. “We gained valuable insights and strengthened connections with a like-minded airport community committed to cultivating a customer-centric culture through strategy and action. “We are thrilled that next year’s Summit will be hosted by Hartsfield-Jackson Atlanta International Airport (ATL). As the world’s busiest airport for total passenger traffic in 2022 – welcoming over 93 million passengers that year – their unique
perspectives on customer and employee experience promises to be a learning experience for all in attendance.” ATL’s general manager, Balram Bheodari (pictured above with ACI World vice chair and CEO of Cincinatti/Northern Kentucky International Airport, Candace McGraw), said: “We are honoured to have been chosen as the host for the 2024 ACI World Customer Experience Global Summit. “This is a significant moment for Atlanta and Hartsfield-Jackson Atlanta International Airport and we are thrilled to welcome global leaders in the aviation industry to Atlanta. “This summit is a testament to our commitment to enhancing passenger and employee experiences, and we look forward to sharing our unique perspectives while learning from our colleagues.” AW
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INVESTING IN AIRPORTS
Buying into airports
Asia-Pacific’s airports continue to appeal to investors interested in privatisation deals and upgrading infrastructure, writes Modalis Infrastructure Partners’ partner, president and CEO, Curtis Grad.
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espite being very slow to remove COVID restrictions, AsiaPacific remains a key region for airport investment and development as traffic flows are predicted to see some of the biggest rises in the coming years, especially for domestic travel in China and India, based on Boeing’s outlook to 2042. Largely, this has been driven by demographic shifts in terms of population growth as well as wealth creation which has taken more people into the middle-class segment, who then have the means – and inclination – to travel. According to data sourced by Statista, Asia-Pacific’s already large middle class population – 1.38 billion in 2015 versus Europe’s 724 million – is set to explode to 3.49 billion by 2030. Meanwhile numbers in the developed regions of North America and Europe will be stagnant. Even other developing regions like Central and South America; the Middle East and North Africa; and Sub-Saharan Africa is not expected to show anything like the growth of Asia-Pacific in the coming decade. Airports in the region are expected to benefit hugely from this growth, which is why governments and private operators are planning ahead to ensure that their respective facilities are equipped to meet the future high demand for air travel. India provides a great example of this as the most populous country in the world has been on a privatisation path for over 15 years. Indeed, state-owned Airports Authority of India has handed over control of several assets, mainly through public-private partnership (PPP) contracts, to local players such as GMR and GVK, initially, with the latter divesting its airport holdings, including Mumbai (BOM) and the planned Navi Mumbai, to Adani in mid-2020.
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As highlighted in the airportIR Deal Pipeline, this process is still ongoing with a second phase of airport privatisations that will see 25 more airports put out to bid based on the mood music from India’s aviation ministry. Most of these 25 are regional brownfield gateways with a total passenger throughput of 13 million, and the contract length is expected to be 50 years. While India is perhaps the most active market in Asia-Pacific for PPP activity, other major ‘live’ projects are scattered across the region, from Pakistan in the west of the region, to Indonesia and the Philippines, and Australia in the east. At the end of last year, local media reported that there was a green light for Pakistan’s Aviation Ministry to begin outsourcing operations of Jinnah International Karachi Airport (KHI), Islamabad International Airport (ISB), and Allama Iqbal International Airport (LHE) under a PPP model. In June however, the government announced that it would restrict the outsourcing initiative to ISB only for the time being, opting for a more caution step-by-step approach. The Ministry tweeted on X (formerly Twitter) that the outsourcing would “pave the way for foreign direct investment”, which could help improve standards and services at the airports under contract(s) that would run for 20 to 25 years. In the Philippines, several airports are in a privatisation queue, but the big one is Manila’s Ninoy Aquino International Airport (MNL), which handled almost 48 million passengers in 2019. Unsolicited bids were made in recent years with the latest, according to a local report in June, coming from the Manila International Airport Consortium. Its proposal is $4.7 billion (Ps267 billion) for a 25-year concession rather than 15 years.
INVESTING IN AIRPORTS
The consortium – composed of Aboitiz InfraCapital, AC Infrastructure Holdings Corp, Asia's Emerging Dragon Corp, Alliance Global – Infracorp Development, Filinvest Development Corp, JG Summit Infrastructure Holdings Corp and Global Infrastructure Partners – said a shorter concession would lead to higher passenger charges and lower investment. The MNL project is structured in two phases – improvements and enlargement of the existing terminals, and expanding capacity to 65mppa within a four-year period. By September, at least five companies had secured bid documents for the PPP deal. The potential bidders include three major groups – San Miguel Corp, GMR, and Manila International Airport Consortium (MIAC), plus Spark 888 Management Inc and Asian Airport Consortium, and others are expected to enter the fray in the coming months. Meanwhile at Sangley Point (SGL), the conversion of the Atienza navy base to a civilian airport costing $11 billion is being positioned to move forward. A local report said that the Virata-Yuchengco-led consortium signed a joint venture and development agreement with the Cavite provincial government. Other partners include Samsung C&T Corp, as well as MacroAsia Corp. Manila’s new northern gateway, Bulacan International Airport, is well into its construction phase. The PPP project is led by SMC whose subsidiary San Miguel Aerocity Inc was granted the franchise to construct and operate the new international airport following an unsolicited bid. According to the government, the four-runway airport should begin operations in 2027 and ultimately have a capacity of 200 million passengers per year. As all of these projects are in the greater Manila metro area, they will impact the scope/viability of each other so careful consideration of the terms of each deal will be required on all sides to get the best out of these assets.
China’s listed operators go backwards
Stocks and shares are an indicator of current investor mood. There are a handful of listed airport operators in Asia-Pacific, including Auckland Airport, Beijing Capital Airport Company, Japan Airport Terminal Co Ltd (JATCO), Shanghai Airport (Avinex), and Airports of Thailand. Their performances to mid-September have been very mixed.
Year-to-date share prices (to September 19) indicate that Japan Airport Terminal Company and Auckland International Airport came out on top with their stock marginally ahead by 0.84% and 0.64% respectively. Beijing Capital International Airport Company was heavily down by 35.4%, while its mainland rival, Shanghai International Airport Company, did almost as badly, dropping 33.8%. Both stocks are the lowest they have been in some years as they suffer from China’s weakened economy. GDP has been revised down to 5% this year, and 4.5% in 2024, according to a Reuters poll. “This slowdown could be just the tip of the iceberg,” Bingnan Ye, senior economist at China Merchants Bank International in Hong Kong told the agency. He said the downside risk was that household consumption might improve “more slowly than many expect”. Moreover, the elation surrounding China reopening its borders in January has been tempered by the fact that travel activity is still low. According to seat analyst, ForwardKeys, neither Beijing Capital or Shanghai Pudong will make the global top 10 for departure scheduled seats for the 12 months to February 2024. Meanwhile, Airports of Thailand – whose international gateways have traditionally been reliant on Chinese travellers – has seen its shares fall by 6.3% year-to-date. However, after a bumpy ride during COVID-19, the stock has performed well since January 2022 with a solid upward trend overall, despite this year’s drop. In the world of infrastructure, airports have been a good bet in the past. Modalis Infrastructure Partners recently updated its analysis of EBITDA multiples for selected airports and operators (See graphic on page X) broken down by majority share stakes (in dark blue) and minority share stakes (in light blue). As the chart shows, the average EBITDA multiple was 15.9 but early majority-stake deals have outperformed this, sometimes by close to double (or more). After the global financial crisis in 2008-09, multiples slipped dramatically and there was extra caution in the market with more minority (rather than majority) deals taking place. In general, however, EBITDA multiples for majority stakes have performed better, with London City Airport (LCY), Fraport’s Greek Airports and Italy’s SAVE showing some strong gains since 2014.
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INVESTING IN AIRPORTS
To list or not to list?
In March, Australian investment management firm Maple-Brown Abbott released an analysis comparing the average trading multiple of listed airport companies versus the average direct transaction multiple over the past decade. The firm reviewed 35 transactions of global airports over the 10 years from 2013 to 2022. It found an average transaction multiple over this time was 17.0x EV/EBITDA, which represents a 35% premium to the average trading multiple of listed airports of 12.6x. Why would there be this historical outperformance of unlisted over listed infrastructure? There are several reasons, both structural and circumstantial. Maple-Brown Abbott said: “In our view, the combined tailwinds of greater leverage, rising asset prices and a widening valuation gap between assets in the listed and direct markets have been the major contributors. Many of these tailwinds are unlikely to continue indefinitely and some appear to have been caused by short-lived factors including a historical period of declining and low interest rates.” In the airports sector, there is also the stability factor of large gateways being fully owned by the state to consider. In parts of the world such as the United States, Middle East, and parts of Asia, this is the case, even though some, such as Singapore Changi Airport (SIN), operate at arms-length under a private business model. This can offer the best of both worlds: state financial coffers – useful during events such as the Global Financial Crisis and COVID – but still run on a profit principle. Nevertheless, airport privatisation through PPP continues to have a valuable place. It offers governments a route to new – and regular – revenue streams over a long contract period; better managed facilities, as they are often taken over by highly skilled global operators – sometimes in partnership with local infrastructure players; and a viable route to mid- and long-term investment via capital markets, so that the facilities stay up-to-date through infrastructure development. Major acquirers, whether individual companies or consortia, are also more likely to actively manage the business, cut costs and
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improve efficiencies. All of which can improve profitability and appeal to shareholders as well as ratings agencies, an important factor when considering the cost of debt for new projects. In a post-COVID market, we have seen air traffic recovering at different rates in different regions depending on their speed of opening up to international travel; consumer appetites to go abroad; and, lately, the cost-of-living crisis limiting discretionary spending. But the general trend is firmly back up again. ACI data shows that major international hubs, in particular, boomed in 2022. Dubai (DXB), for example, saw its traffic soar by 127%, pushing the airport up to fifth place in the global ranking (from 27th in 2021). Even more spectacular was London Heathrow (LHR), rising from 54th to eighth on the back of 218% passenger growth. Asian airports were, however, largely missing from the list, apart from Delhi’s Indira Gandhi International Airport (DEL), ranked ninth, and Tokyo Haneda (HND) ranked 16th. This year, more Asia-Pacific airports should return to the top 20. The normalisation of air travel in 2023 and 2024 will be a stabilising influence for the market, and a signal for privatisation projects to proceed. Investors will always look at the numbers first and if the demand forecasts for cargo and passengers are back on track for the next decade, so will their appetites. Modalis Infrastructure Partners expects to see a steady flow of deals in Asia-Pacific in the next 12-18 months as passenger numbers rise on the rebound of discretionary spending, with capacity constraints again becoming an issue, and general market confidence returning. AW
About the author
Modalis Infrastructure Partners Inc (www.modalis.ca) is a global strategic advisory firm, specialising in international transport infrastructure privatisation, investment, development and operations. Visit www.airportir.com to read about the latest investor news and industry intelligence.
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4-5 December 2023, Vienna
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ADVANCED AIR MOBILITY
Planning for vertical take-offs
OAG’s chief analyst, John Grant, considers the potential opportunities and challenges of eVTOL aircraft and how the aviation sector might adapt to meet the new trend.
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he aviation industry is about to embark on a transformative period of technological change as it strives to meet its net zero targets within the next two decades. While there is no silver bullet solution that can do this, a series of small steps can lead to marginal advances until eventually – and perhaps surprisingly – we reach our destination. While much attention has been focused on biofuels and alternative sources of energy such as hydrogen and batteries, the hype around battery-powered aircraft is currently declining. The use of single-aisle aircraft, specifically A320XLR, for long-haul flights is a recent development. This has enabled secondary markets to be connected directly without the need for a hub airport. Next year, Qantas hope to launch their flagship non-stop services from Sydney to London and New York on the back of advanced aircraft technology. Furthermore, the introduction of electrical vertical take-off and landing (eVTOL) aircraft is just beginning. Because of this, there is significant attention within the industry surrounding Advanced Air Mobility, which leads us to question as to what this means for the future in the aviation sector. The latest developments in the United States have revealed that the certification process for eVTOL services is making significant progress. Commercial operations are anticipated to begin by 2025, although the exact launch date is still unclear. But before that first service, there is a whole list of issues to be addressed. From a planning perspective, it is crucial to overcome these operational challenges. So how could this all play out?
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Over the last decade, the initial concept of eVTOL’s hasn’t really changed. These aircraft are designed to fly relatively short distances that could either connect a network of satellite locations around a major city with direct speed access to that city’s hub, or perhaps to a central location in the city such as Piccadilly Circus in Central London. In other words, there appear to be two immediate use cases for eVTOLs. The first involves connecting small communities to major airport networks, and the second consists in replacing existing air services with a more environmentally friendly option. It’s important to note that no eVTOL has yet been certified for commercial passenger use. However, there are several manufacturers predominantly based in North America, that are well advanced in their certification processes. At first, eVTOLs are expected to be used in search and rescue, disaster relief and the rapid distribution of emergency supplies. Once the concept has been proven, then there is no doubt about the opportunities and potential impact of eVTOLs in commercial aviation. In Dubai, progress is being made on the development of an eVTOL taxi launch by 2027. Similar developments are also underway in and around the West Coast of the US through an agreement between Uber and Joby Aviation. Initially, these plans are centred around the creation of ‘vertiports’, which will cater to the wealthy who need to get around heavily congested road systems. It’s inevitable that some of those vertiports are going to be at or very close to airports.
ADVANCED AIR MOBILITY
Indeed, the question is, will they be airside or landside, and if landside, will they be located close to the main passenger terminals or, more likely, the general aviation facilities? It’s important to note that eVTOL taxis or charter services will only serve a very small percentage of those passengers arriving at airports and are not going to help when airports are reviewing their surface access strategies. Nonetheless, for airlines, this small percentage of passengers can be a highly profitable market. UA Ventures, a subsidiary of United Airlines, has invested $15 million in Eve Air Mobility to order up to 200 air taxis that are capable of carrying a maximum of four passengers distances of up to 60 miles. The company has also received letters of intent from markets such as Kenya and Singapore, where linkages to the national airlines can be traced. As one of the major players in the US, United Airlines has several major hub bases across the US, which means that more than 200 taxis may be required once the concept is validated, and demand builds up. The potential return relative to the investment and the advanced sustainability credentials that can be generated have all been considered by United Airlines and clearly make sense, but it remains a niche product and leads us to question, how financially viable is the real future of eVTOLs? Despite the advancements made so far, there is little indication of a genuine eVTOL aircraft that could offer a 50-seat capacity and operate a range of up to 100 miles. While this could encourage a migration away from more conventional aircraft operations. In the United States alone, there are over 350 airport pairs currently operated that are less than 100 miles apart, some of which are served by B737 aircraft, such as Madison–Chicago O’Hare operated by both American and United Airlines. If an EVTOL aircraft is developed, it could create numerous opportunities for future
operation not only in the US but also in places such as the Caribbean, Greek Islands, Scandinavia and even the United Kingdom, there are numerous opportunities for future operation. One of the main features of eVTOLs is not just its carbon saving ability, but its vertical take-off ability, which could significantly impact future airport capacity requirements. Airport planning has traditionally focused on future capacity, particularly regarding runway availability. However, eVTOLs could alleviate some pressure on airport capacity by using their vertical take-off capability from remote locations at airfields. Yet, for this to succeed, any such developments must be carefully considered and assessed. While VTOLs will not in themselves eradicate the need for more new runaway capacity, in some locations, if a few peak hour slots that were used for sub-100-mile services could be released for eVTOL operations, that has to be a practical resource reallocation. Quite how much thinking is taking place in this area is unclear but judging by the number of conferences now scheduled, it’s a big subject area, for conference organisers at least. As for the implications for OAG, we’re not expecting to see a dramatic increase in the number of locations seeking an airport code because of eVTOL developments, although we continue to watch that possibility closely. We are, however, expecting that in the coming years, some enlightened airlines will bring scheduled eVTOL services into their schedules and that we will need to add additional ‘aircraft’ codes and seating configurations to our databases; we’ve been doing that sort of thing for years so will be ready when ready. In aviation, things can change unexpectedly and alter all of your plans, no matter how well-prepared you are. Ultimately, the aviation sector is dynamic because of the innovation it enables and currently with all the advancements we AW have seen, I expect an incredibly exciting future.
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RETAIL/F&B
Sweden's Minister for Infrastructure and Housing, Andreas Carlsson (left), and Swedavia CEO, Jonas Abrahamsson, at the opening of Arlanda's new Marketplace. Photo courtesy of Daniel Asplund/Swedavia.
Retail therapy
Charlotte Ljunggren, director for marketing and commercial business development, tells us more about the opening of Stockholm Arlanda Airport's new Marketplace development. Are you excited about the first phase opening of Stockholm Arlanda’s new Marketplace development?
Absolutely, as it will transform the commercial space in Terminal 5 and is the second big development at the airport this year after the successful summer opening of our new state-of-the-art security checkpoint. To put things in perspective, together with the faster and larger security checkpoint, the 11,000 square metre Marketplace is the biggest commercial investment in history at Stockholm Arlanda. These big investments will offer our passengers an improved, smoother and more inspiring passenger experience at Sweden’s largest airport.
What can passengers expect to find in the Marketplace?
When the Marketplace is fully open it will have around 40 new outlets that will form the commercial heart of Terminal 5. Around 10 new shopping and dining concepts have opened to date. These include our new flagship duty free store – which is in considerably bigger than its predecessor – and three food and beverage concepts with a special focus on the needs of families. Two of the new F&B additions are approximately 700 square metres in size and one of them is open 24 hours-a-day, seven days-a-week, to cater to the around-the-clock needs of both passengers and staff. But this is only just beginning, as more F&B and retail concepts will open in the coming months and be followed by dozens of commercial openings throughout 2024 and the beginning of 2025. The new facilities will offer a great commercial mix of both Nordic and international influences. There will be a conceptualised destination for retail pop-ups
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in the heart of the Marketplace and the new food hall will also contain two F&B pop-ups that will be replaced every six months. The purpose of this is to create a sense of anticipation that there will always be something new to experience when visiting the airport.
Why is Swedavia investing in upgrading the commercial offerings at Arlanda?
We continue to enhance the retail and F&B outlets at Sweden’s airports as part of our commitment to meeting the needs of our passengers. We’ve invested around 1.5 to 2 billion Swedish Krona [€130-€170 million] at our airports on facilities that will demand now and in the future, the majority of which has been invested in Stockholm Arlanda. In total, we have spent around SEK 3 billion [€250 million] on our big Arlanda projects, when you include the new Marketplace and security checkpoint at Arlanda. The latest projects mean that will have invested a total of SEK20 billion [€1.7 billion] between 2016 and 2023. We even continued to invest during the global pandemic to ensure that we would be capable of meeting passenger growth and the long-term needs of travellers. Arlanda’s status as Sweden’s biggest airport means that the desire to transform its commercial facilities has been particularly strong. Looking forward, our ambitions include providing the best connectivity at our Arlanda hub and striving to ensure that the airport offers inspirational meeting places, such as the new Marketplace established in Terminal 5.
RETAIL/F&B
In addition to the Marketplace, Arlanda’s SkyCity will also get a number of new, updated commercial offerings as will our nine other airports across Sweden. Elsewhere, at Göteborg Landvetter and Malmö airports, for example, we will see a host of openings over the autumn/winter period. Luleå Airport saw its commercial offerings updated in spring this year and many more openings will follow across our airports.
Can you tell us about Swedavia’s new commercial strategy for your ten Swedish airports?
The new commercial strategy is based on the results of extensive retail studies and important feedback, both from our passengers and our airport partners. We’ve also looked at how current trends are influencing the wider market in Sweden and internationally and have conducted research into the potential future retail trends, and the possible impact they may have on our airports, so that we are already thinking about what comes next. In essence, our new strategy is focused on offering something for everyone at our airports, different price ranges, global/local brands, etc. We strive to offer a high price value, and our tool to achieve that is our focus on competitiveness. In the Marketplace, for example, our goal was to partly achieve this by having at least two actors competing against each other in the same segment. The Marketplace will offer width and variation rather than ‘luxury shopping’. Our strategy dictates that the offering must include a Nordic and local touch mixed with international influences for both restaurants and shopping, according to what our passengers think are important. We also want to ensure value for money. I should add that we now comply with the law on concession procurement, which means that we do not have any rental contracts, and thus no longer set any rent. As a result, all the actors in the new Marketplace are there on exactly the terms they set themselves in the bidding process.
What makes the Marketplace at Arlanda so different to what has come before in terms of Swedavia’s retail/F&B offerings?
We’ve listened to what our passengers think are important for a better airport in terms of trends and experience and, as a result, the Marketplace will offer the largest and widest range of retail and food and beverage ever provided at a Swedish airport. We placed a big focus on F&B development, meaning that restaurants and other food options will account for around 50% of the total floor area in the Marketplace. We’re building the airport for today and the future.
Are sense of place offerings important?
Sense of place offerings are naturally important at all of our airports as we want our passengers to know that they are in Sweden and ideally whether they are in Stockholm, Göteborg, Luleå, Malmö or Visby, for example. I would say that sense of place in terms of retail and F&B is probably more important at our larger airports where we can have a bigger and more varied commercial offering.
What percentage of Swedavia’s revenue does retail/F&B account for?
What I can tell you is Swedavia has two revenue streams, aviation and commercial, and our commercial activities accounted for around 40% of our total revenue in 2022. All revenue sources are, of course, important as they boost our income made from airport charges and other non-aeronautical sources such as car parking and real estate. Without doubt the new Marketplace development at Stockholm Arlanda gives us the opportunity to grow our retail and F&B revenue.
What are you doing to meet the needs of travellers who might want food and goods brought to them at the airport or even have them delivered to their homes, if they live in Sweden?
Together with Dufry, our tax free partner, we have introduced 'pre-order & collect in store' at Arlanda. We think that finding ways to accommodate the evolving needs of passengers is very important and continue to follow AW developments within the industry and society as a whole.
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BE PART OF THE FIRST SMART AIRPORTS & REGIONS AFRICA 2023 CONFERENCE & EXHIBITION CONNECTIVITY, INNOVATION, OPPORTUNITIES 20 – 22 February, 2023 | Cape Town, South Africa
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US$3,000 | Table top booth – includes 2 conference passes Jonathan Lee jonathan@smartairports.aero
Jon Sissons jon.sissons@airport-world.com
SMART-AIRPOTS.COM/AFRICA
TRAINING
High achiever!
Endorsed by ACI, ICAO and IATA, Incheon Airport Aviation Academy strives to lead the way in global aviation training.
I
ncheon Airport Aviation Academy (IAAA) is a prominent aviation training centre based at Incheon International Airport in Northeast Asia. Since its establishment in 2008, IAAA has consistently provided high-quality aviation training programmes to over 10,000 aviation professionals from 150 countries worldwide.
Global recognition and certification
IAAA is one of the first training centres in the Asia-Pacific region certified by three globally-renowned international aviation organisations: Airports Council International (ACI), International Civil Aviation Organization (ICAO), and International Air Transport Association (IATA). In 2011, IAAA was certified as the first associate member in the ICAO TRAINAIR PLUS Programme. This achievement solidified IAAA's reputation as a leader in aviation training. In 2014, IAAA earned the certification of ICAO Regional Training Centre of Excellence (RTCE), further emphasising its commitment to raising industry standards. IAAA was certified as an Accredited Training Partner of ACI and a Regional Training Partner of IATA last year, and in June 2022, it became the world’s first airport to be recognised under the ACI-ICAO TRAINAIR PLUS Programme.
Expanding the market through collaboration
In response to the challenges posed by the COVID-19 pandemic, IAAA has actively sought international collaboration to enhance its training services and expand the market. Indeed, in the last year alone, the academy has signed training co-operation agreements with 15 overseas aviation training centres based in countries that include Indonesia, Oman, Nigeria, Vietnam, Malaysia, Thailand and Tunisia. Based on these partnerships, IAAA has offered customised training courses, meeting the specific needs of aviation professionals worldwide. The academy is also actively working to strengthen its ties with other training centres and increase collaboration with overseas universities, training institutions, and international aviation organisations. In May this year, IAAA joined forces with ICAO, Embry-Riddle, and Korea Aerospace University to introduce the Global Aviation Professional Program (GAPP). This collaborative effort combines the strengths of international aviation organisation, academia, and industry expertise to offer practical aviation training for aviation professionals. Next year it plans to focus on developing new courses and programmes in various fields, while successfully operating GAPP, and continuing to expand its presence through collaborations with AW various international institutions.
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SUSTAINABILITY NEWS CERTIFICATE
of ACCREDITATION 7 September 2023 - 5 December 2026 This is to certify that Airport Carbon Accreditation, under the administration of WSP, confirms that the carbon management processes at
RAJIV GANDHI INTERNATIONAL AIRPORT implemented by GMR Hyderabad International Airport Ltd. have earned the accreditation level of TRANSITION, in recognition of the airport’s exceptional work in aligning its carbon management with global climate goals to reach absolute emissions reductions, establishing related partnerships with its business partners and compensating responsibly the residual CO2 emissions under its control, as part of the Global airport industry’s response to the challenge of Climate Change.
www.airportCO2.org
Stefano Baronci Director General ACI Asia-Pacific
(JVMJP $PSUF 1SPHSBNNF %irector WSP
Making a difference Airport World rounds-up a handful of the latest sustainability news stories making headlines across the globe. New sustainability milestone for Hyderabad and London Luton
Hyderabad’s Rajiv Gandhi International Airport (HYD) and London Luton (LTN) have become the latest gateways to achieve Level 4 in ACI’s Airport Carbon Accreditation programme. Achieving Level ‘Transition’ status, HYD – operated by GMR Hyderabad International Airport (GHIAL) – is a sustainability pioneer for the region. GHIAL CEO, Pradeep Panicker, said: “Today, climate change is the most pressing challenge and as a global corporate citizen, Hyderabad Airport is building multiple pathways to reduce carbon emissions. “Our entire airport operation runs on renewable energy with a mission of zero waste and zero discharge. This achievement shows our commitment to environmental responsibility. “We have set ambitious targets to achieve zero carbon emissions. We continue to invest in sustainable technologies and assets, enabling the airport eco-system to contribute to the environment and help build a greener world.” Earlier this year, GHIAL announced its transition to 100% sustainable green energy for its energy consumption at the airport and across its ecosystem. In partnership with Telangana State Southern Power Distribution Company Limited (TSSPDCL), the move has transformed its operations by harnessing the power of green energy through a combination of its own 10 MWp (megawatt peak) solar power plant and green energy supplied by TSSPDCL. By integrating green energy into its operation and infrastructure, the airport is expected to reduce its carbon footprint by approximately 9,300 tons of carbon dioxide annually. Panicker said: “We at Hyderabad International Airport have pledged to build a sustainable environment that will help reduce our impact on the environment and create an environmentally friendly airport. It permeates every aspect of the airport’s infrastructure and operations at every touchpoint of activity.”
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Meanwhile, in Europe, London Luton Airport has become only the third major UK airport to achieve Level 4 ‘Transformation’ status. The ACA scheme is a globally recognised carbon management programme that independently assesses and recognises efforts to manage and reduce airport carbon emissions. As a Level 4 accredited airport, LTN has demonstrated that it is ‘transforming its operations to achieve carbon reductions in line with global climate goals’. The airport notes that the achievement also highlights its commitment to working with key airport partners to reduce their emissions at the airport. Airport CEO, Alberto Martin, said: “London Luton Airport is committed to sustainable aviation and achieving the highest level of the ACA programme is a significant milestone, demonstrating our commitment to minimising the environmental impacts of the airport. “London Luton Airport has taken important steps to set an ambition to be Net Zero in its carbon emissions by 2040. However, we recognise there is still a great deal of work to be done, continuing to demonstrate our focus on delivering on our sustainability commitments for our passengers, industry and local community.” The Level 4 accreditation is a major milestone in LTN’s sustainability journey, underlining the progress of its Net Zero roadmap and the drive to achieve significant carbon reductions across all aspects of the airport including partner operations. Key initiatives include: • Collaboration with airlines to increase the number of quieter, more fuel-efficient next-generation aircraft operating from the airport – reducing airline emissions by 20% per aircraft • Finalising plans for the installation of a 10Mwp solar plant at the airport that will generate enough green energy to satisfy 25% of the airport’s electricity demand • Transitioning to alternative sustainable fuels (e.g., HVO) saving around 80% of carbon across the carbon lifecycle, as well as continued investment in electric vehicles.
SUSTAINABILITY NEWS
This year also saw the transformational launch of the fully automated, electrically powered Luton DART connecting the terminal and the mainline railway at Luton Airport Parkway station. LTN notes that encouraging passengers to travel to and from the airport by rail, rather than car, will reduce the environmental impact of journeys, saving around 80% on carbon emissions (6.8kg of CO2e per passenger journey from central London). The DART has carried more than one million passengers in its first six months of operation.
Fraport unveils plan to turn electric vehicles into mobile power storage units Global airport operator, Fraport, is gradually converting its fleet of vehicles at Frankfurt Airport to electric drives and, even more ambitiously, looking to upgrade its charging infrastructure to turn them into mobile storage units that are able to feed unused power back into the grid if needed. The technology required to do this isn’t yet ready for large-scale use and current interfaces will need to be standardised, particularly for many of the special-purpose vehicles used for aircraft ground handling. However, Fraport is receiving support from the German Ministry for Economic Affairs and Climate Action for broadly implementing this ambitious idea at the airport. Over the next four years, a total of €5 million will flow to Frankfurt Airport within the scope of Germany’s programme to promote electromobility. Fraport itself, together with other partners, will invest another €4.1 million in the project. “Frankfurt Airport is providing an ideal, self-contained field test system for implementing a bidirectional charging infrastructure,” explains Michael Kuschel, Fraport’s vice president responsible for power and networks. “We are playing all of the main roles in it: we are both the network operator and its primary consumer. The charging points
are part of our own infrastructure, and we are also providing the required software. This unique constellation enables us to model the required test environment despite the fact that not all of the technical and regulatory definitions have been fully formulated yet.” Also involved in the project are Stromnetz Hamburg GmbH (the owner and operator of Hamburg’s power distribution network), which will support Fraport for developing the required software, and the Darmstadt University of Applied Sciences, which will be monitoring the economic and technical aspects. The German Ministry for Economic Affairs and Climate Action has put the DLR German Aerospace Center in charge of the project. Fraport AG currently has a fleet of about 650 electrically powered vehicles and is planning to add another 600 cars, buses, and dedicated ground handling vehicles with electric drives by the end of 2026. With the aid of bidirectional charging equipment, the storage batteries of this motor pool will collectively constitute a large-scale virtual reservoir able to accept and provide constantly changing amounts of electric power. Controlled by sophisticated software, it will manage supply and demand without negatively impacting everyday operations at Frankfurt Airport. “Fraport’s long-term goal is to introduce bidirectional charging throughout the airport while taking the wide variety of vehicle types used into account,” adds Kuschel. “An airport operates critical infrastructure, which makes it essential to consistently ensure a stable network and dependable power supply. This is a major challenge, but once it has been successfully mastered the system will crucially strengthen the airport. “It will also provide attractive economic benefits, since we expect that this migration will also allow us to reduce our expenditures for AW electric power by making efficient use of available resources.”
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RUNNING WBP NEWS HEAD
Open for business Announcements, news stories and opinions from ACI World Business Partners across the globe.
Transoft Solutions introduces AeroCENTRAL Transoft Solutions, developers of productivity-enhancing software and services for aviation, civil infrastructure, transportation and traffic safety industries, has announced a new addition to their aviation product portfolio that bridges the gap between airside planning and operations. AeroCENTRAL, the company’s first SaaS solution for the aviation industry, allows users to share key airside infrastructural and operational information across teams and departments, through a single, centralised system. Scalable and easily accessible by various stakeholders, the platform hosts specialised applications for operational and technical planning tasks. The two applications on the AeroCENTRAL platform that are available at launch are Stand Guide and Specifications. These applications allow airports, airlines, ground service providers and their partners to publish, distribute, and view aircraft parking stand configurations, equipment locations, turnaround procedures, and aircraft technical specifications – ultimately, supporting safer operations and more efficient decision making. AeroCENTRAL allows users to incorporate existing data, such as details from Transoft’s AviPLAN software, with additional technical and operational data, into a single platform. The platform can also connect to external geographic information systems (GIS) and Airport Operational Databases (AODB).
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Intuitive and user-friendly for those of all levels of experience and proficiency, airport planning, operational planning and ground service teams will be able to publish, access and use the same up-to-date airport infrastructure and operational information, or aircraft data. This removes the need for numerous online and offline data sources, and with the ability to access and use the platform on a range of devices, AeroCENTRAL brings further convenience for the users. AeroCENTRAL ultimately saves time, reduces data duplication, and minimises the risk of data loss or error, to support users in achieving safe and optimal operational tasks. “We’re very excited about this product launch and expect AeroCENTRAL to be a game changer for airside operations and planning in the aviation industry”, said Mark Rodrigues, vice president of aviation at Transoft Solutions. “This platform will streamline how airside operations teams work together with a significant improvement in collaboration, on top of minimising uncertainty to support safer and more optimal airside operations. “Additionally, we anticipate that users of Transoft’s AviPLAN software will welcome AeroCENTRAL Stand Guide to their technology stack as it is the only application on the market capable and authorised to migrate AviPLAN design sessions from CAD into a geographic mapping system.”
RUNNING WBP NEWS HEAD ABILIO
Membership Region: Europe Type of Business: Security W: www.abilio.be Abilio, your revenue generator. Abilio has developed the unique ‘Fastliner’ concept, which gives the passenger the opportunity to clear security control at airports without stress and it thereby reduces queuing time whilst enhancing passenger experience. New revenues for the airline industry will be generated thanks to our unique product!
YARDI SYSTEMS
World’s first walk-through security scanner Fraport has begun testing the world’s first walk-through security scanner for passengers at Frankfurt Airport. The R&S QPS Walk2000 from Rohde & Schwarz is designed to speed up security checks, and is currently being put through its paces in Terminal 1’s Concourse A.
Passengers simply walk through the scanner, which utilises AI based detection software to automatically identify metallic and non-metallic objects, at a normal pace without stopping. The test and evaluation phase is set to last up to six months and will provide Fraport and Rohde & Schwarz with important information to help optimise the system.
New outlets open at LAX’s Tom Bradley International Terminal Los Angeles International Airport (LAX) believes that it has elevated the guest experience with the opening of a host of new retail and F&B outlets at the West Gates in the Tom Bradley International Terminal. According to Los Angeles World Airports (LAWA) and concessions partner, Unibail-Rodamco-Westfield (URW), the new dining options offer a mix of American classic and international cuisine including the first airport restaurant from celebrity chef Guy Fieri’s brand Chicken Guy! LAWA says that the new restaurants will provide guests with more choices for dine-in options and faster service using the latest technology for mobile pick-up and delivery via LAXOrderNow.com. Guests can shop for the latest in LEGO sets, travel essentials, iconic candies and chocolates, and top-rated luggage with brands including TMZ, InMotion, and the soon to open See’s Candies. “The West Gates is one of the most modern and innovative airport concourses in the world and these new concessions are a wonderful complement to the exceptional experience our guests can expect when flying with LAX,” says LAWA CEO, Justin Erbacci.
Membership Region: North America Type of Business: Investment W: www.yardi.com Yardi is solely dedicated to the design, development, and support of real estate investment management and property management software. We continue to develop and deliver software and services with the highest commitment to responsiveness, quality, innovation, and customer focus.
BURNS & MCDONNELL
Membership Region: North America Type of Business: Planning and Construction W: www.burnsmcd.aero
“In partnership with URW, we have assembled a diverse line-up of brands and created opportunity for small-and-minority-owned businesses to participate in our airport concession’s programme.” Maral Matossian, URW’s general manager for LAX, said: “We are excited to deliver new retail and dining options that continue to elevate the guest experience at LAX. “A mix of dining options cater to all guests and our newest restaurant, Navarre, will bring flavours we have not seen before.”
Burns & McDonnell provides planning, design, programme management and construction services for airport, airline and military aviation projects. It services include expertise in terminal building advisory services, planning and design; cargo facilities; airport master planning; paving and lighting; and environmental permitting and design.
AIRPORT WORLD/ISSUE 5, 2023
AW
45
HUMAN RESOURCES
PEOPLE
matters The human factor in innovation
Richard Plenty and Terri Morrissey reflect on how investing in people and culture is essential for innovation.
"
W
hat was impossible yesterday is an accomplishment today, while tomorrow heralds the unbelievable." These were the words of entrepreneur, Percival Elliott Fansler shortly before the world’s first commercial airline flight took off from St Petersburg to Tampa Bay in Florida, USA, on January 1st 1914. A distance of only 17 miles with just one passenger, the former Mayor of St Petersburg. Fansler’s words were prescient. This one flight paved the way for the billions of passenger journeys that now routinely take place annually, and the complex organisation, infrastructure, technology, and regulation that support them. The development of aviation has been a story of collaboration, co-operation – and relentless growth. Airports have evolved from simple landing strips to business organisations that underpin the economies of the communities that they serve. Geo-political change and economic uncertainties have provided an ever-shifting context. On the whole airports have adapted well and shown a great deal of resilience to changing circumstances. Still, the need for innovation has never been greater than it is currently. Coming out of the COVID pandemic, airports now face the immediate challenges of dealing with renewed growth, rebuilding their economic viability and improving the passenger experience while at the same time addressing the longer-term challenge of environmental sustainability. How airports bring people with them, so that innovation is welcomed rather than resisted, is critical. Digitisation and technological advances provide paradigm shifting opportunities for innovation, but to take maximum advantage of the possibilities for change will require attention to the people who work at the airport as well as the technology. Investment in the human side of airports and the organisation culture is equally important in
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fostering innovation. In particular it will be important to focus on: • Building communities for collaborative working. Co-creating solutions with others is generally a more successful way of innovating in a complex world that just ‘buying in’ expert solutions. After all, it’s the socio-technical system that needs to change, not just the technical one, and involving people creates a better shared understanding of what needs to be done and what needs to change. Building communities may involve forming new organisational alliances and partnerships – or consolidating existing ones. Developing higher levels of trust underpins this approach. • Paying attention to the employee experience. People who trust their organisation and feel positive about their overall work experience are more likely to embrace innovation. One innovative area, that of the human centric workplace, sees people, their values, ideas, and experiences as a priority and puts effort into creating meaningful working environments that are inclusive, flexible, and fair. This approach aims to create better work experiences, build in resilience and de-risk innovation. It cares about the experiences of its employees as much as it does about customers and puts in similar investment and effort into making this happen. • Reconsidering attitudes towards failure. Without the possibility of failure, true innovation cannot flourish. Amy C Edmondson in her book, The Fearless Organization, talks about the need to create organisations where people feel free to speak out, are encouraged to engage in creative ideas generation, and do not fear making mistakes or being punished for getting things wrong.
Thomas Wodlbye officially replaced John Holland-Kaye as CEO of London’s Heathrow Airport on October 18. Gary McLean has been announced as the new managing director of Dublin Airport by Irish airport operator, daa, succeeding Vincent Harrison who has taken up the position of chief commercial and development officer for the daa group. Swedavia has announced that Susanne Norman will become its new chief operating officer for international airports and Karin Цhrstrцm its director of regional airports, effective from April 1, 2024. Norman will succeed the departing Peder Grunditz who has decided to leave Swedavia after 20 years of service. In such organisations, failure is considered part of the learning and innovation process. In the words of singer-songwriter Ed Sheeran … ‘You learn nothing from success. Nothing. You learn everything from the failures… Success happens from failing hundreds of times. It doesn’t happen overnight… and you have to have the belief that eventually it’s going to get better’. Pay attention to people and culture and ‘What is possible today, will be an accomplishment tomorrow’.
About the authors Terri Morrissey and Dr Richard Plenty run ACI’s Human Resources training. Contact them at info@thisis.eu
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