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The official publication of ACI Asia-Pacific www.aci-asiapac.aero

Passenger facilitation In focus: Passenger facilitation Airport profile: Osaka’s airport system

Issue 2, 2018 www.aci-apa.com

Review: ACI Asia-Pacific’s 13th Regional Conference Plus: Industry & World Business Partner news

Published by


ASIA-PACIFIC AIRPORTS MAGAZINE

www.aci-asiapac.aero

Asia-Pacific Airports Issue 2, 2018

Passenger facilitation In focus: Passenger facilitation Airport profile: Osaka’s airport system

Plus: Industry & World Business Partner news

6 View from the top

18 ACI news

Regional director, Patti Chau, reflects on the latest traffic trends, new airport infrastructure, ACI Asia- Pacific’s growing influence across the region and some past and future events.

8 News A snapshot of some of the biggest stories from across the region.

10 Back to the future

Joe Bates looks back at April’s ACI Asia-Pacific Regional Assembly, Conference and Exhibition in Narita and discussions about the future challenges and opportunities facing the region’s airports.

Issue 2, 2018 www.aci-apa.com

Review: ACI Asia-Pacific 13th Regional Conference Published by

Seminars, symposiums and the election of a new president make the headlines this June/July, writes Vivian Fung.

22 Investing in Japan

Emmanuel Menanteau, Co-CEO of Kansai Airports, tells Joe Bates more about Kansai Airports’ ambitions for Osaka’s airports and the Japanese market.

28 Easy come, easy go!

Sumesh Patel, SITA’s Asia Pacific president, argues that biometric technology will play a key role in ensuring faster, more efficient and safer passenger journeys through airports in the future.

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CONTENTS

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ASIA-PACIFIC AIRPORTS MAGAZINE

CONTENTS

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32 Better by design

40 Easy does it!

Arup associate director and aviation security specialist, Stacey Peel, reflects on the challenges of designing the airport of the future and reveals a new passenger processing concept that could help eliminate queues at airports.

36 People pleaser

Gensler’s Keith Thompson and Terence Young and Heerim’s Byungkoo Lee tell us more about the concepts behind the design of Incheon International Airport’s impressive new Terminal 2.

Asia-Pacific Airports (APA) www.aci-apa.com Editor Joe Bates joe@aci-apa.com +44 (0)1276 476582 Design, Layout & Production Mark Draper mark@aci-apa.com +44 (0)208 707 2743

APA Issue 2, 2018

Published by Aviation Media Ltd PO BOX 448, Feltham, TW13 9EA, UK Managing Director Jonathan Lee jonathan@aci-apa.com +44 (0)208 707 2743 Advertising Manager Jonathan Lee jonathan@aci-apa.com +44 (0)208 707 2743

Airbiz managing director, Greg Fordham, tells Asia-Pacific Airports more about the company’s new Express Access Swing intelligent (EASi) Gates concept.

42 Industry news Asia-Pacific Airports reports on the latest industry and World Business Partner news from across the region.

Subscriptions subscriptions@ aviationmedia.aero +44 (0)208 707 2743

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Asia-Pacific Airports (APA) is published four times a year for the members of ACI Asia-Pacific. The opinions and views expressed in APA are those of the authors and do not necessarily reflect an ACI policy or position. The content of this publication is copyright of Aviation Media Ltd and should not be copied or stored without the express permission of the publisher.


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SECTION FINAL VIEWPOINT WORD TITLE

VIEW FROM THE TOP Regional director, Patti Chau, reflects on the latest traffic NEW INFRASTRUCTURE trends, new airport infrastructure, Three of the most recent examples include Singapore Changi, which opened its new ACI Asia-Pacific’s growing Terminal 4 last October; Incheon International influence across the region and Airport’s Terminal 2, opened in time for the PyeongChang Winter Olympics earlier this year; some past and future events.

I

am pleased to say that the robust, upward momentum in traffic that Asia-Pacific and the Middle East enjoyed in 2017 continued in the first quarter of 2018, with our latest year-on-year statistics showing that passenger numbers across the regions increased by 10.7% and 4% respectively in March. On an individual airport level, ACI AsiaPacific gateways now account for five of the top 10 busiest passenger airports in the world (Beijing Capital, Dubai International, Tokyo Haneda, Hong Kong and Shanghai Pudong) and six of the top 10 cargo gateways (Hong Kong, Shanghai Pudong, Incheon, Dubai International, Tokyo Narita and Taiwan Taoyuan). With growth comes challenges, of course, and as in other parts of the world, airport operators and governments across Asia-Pacific and the Middle East need to invest in new infrastructure that will allow the aviation industry to keep up with demand. I am, however, happy to say that our region leads the way in addressing this challenge with a number of new capacity-enhancing airport facilities opening in the last 12 months and dozens more planned or under construction.

APA Issue 2, 2018

and Muscat International Airport’s new terminal which opened in March. Elsewhere, Hong Kong’s construction of its third runway is in full swing and substantial progress has been made in the large-scale renovations at Haneda and plans for a third runway at Narita, as Tokyo gears up for the Olympic Games in the summer of 2020. Beijing’s second airport, Daxing, is also expected to start testing operations in October 2019 ahead of a late 2019/early 2020 opening. In monetary terms, in Asia-Pacific, the big build equates to $156 billion being invested on existing airports and $145 billion on new airport projects. While in the Middle East investments have focused more on expanding existing airports, with $87 billion earmarked for these kind of projects, and another $8 billion for new airports. Looking at two of the world’s biggest and fastest growing markets, India and China, the Indian government has unveiled plans to develop around 100 airports in the next 15 years, investing an estimated $61.8 billion in the process. While China has announced plans to increase its number of commercial airports from 229 in 2017 to 260 by 2020, in line with the central government’s aim to have


ASIA-PACIFIC AIRPORTS MAGAZINE

ACI ASIA-PACIFIC’S GROWING INFLUENCE

Talking about airports in China, I am pleased to report that we have renewed our agreement with the China Civil Airports Association (CCAA) to strengthen the co-operation between our two associations. The agreement aims to further our exchange of knowledge and expertise by introducing and promoting ACI programmes to members of CCAA. We also agreed to enhance collaboration on a number of other practical areas. I believe the agreement will be beneficial not only to airports in China but to our wider membership across the Asia-Pacific region.

REGIONAL ASSEMBLY

We were pleased to see a great turnout at our Regional Assembly, Conference and Exhibition in Narita, Japan in April. We welcomed over 500 delegates from over 40 countries to Narita and appreciated the support and contributions of the 50 speakers from all over the world. Their expertise and insights on a wide range of topics on airport businesses and operations appealed to our delegates and helped make this event a successful one. I would also like to echo our president, Seow Hiang Lee, in his remarks thanking the host, Narita International Airport Corporation, for their gracious hospitality and tireless efforts to make this event happen. Next year, the Regional Assembly will be truly global as it coincides with the ACI World Annual General Assembly in Hong Kong. The event, hosted by Airport Authority Hong Kong will take place on April 2-4, 2019.

NEW RESOLUTIONS

The Regional Assembly took a unified stance to empower airports’ economic and environmental efforts by adopting two resolutions at the annual meeting. As one of the most diverse regions in the world, economically and geographically, it is important to recognise that there is no one-size fits all solution on how airports should be run.

Airports should have the flexibility to determine the most appropriate charging system, ownership and management models to best serve and support their communities. Just as important, airports are encouraged to continue engaging in industry-led sustainable development initiatives such as the Airport Carbon Accreditation programme, waste management and renewable energy strategies, not just as a means of responsibly protecting the environment, but also for achieving cost savings in the long run. You can read more about the two resolutions on our website and we look forward to your support.

AIRPORT ECONOMICS

I would also like to update you on our advocacy efforts on economic issues. This April and May, the ACI Asia-Pacific and ACI World Economics team visited nine countries within Asia-Pacific and met with governments, regulators and airport members to discuss relevant topics such as Airport Charges, Privatisation, Airport Networks and Slot Allocation. The countries included Australia, China, India, Indonesia, Japan, Malaysia, Singapore, Thailand and Vietnam. In the coming months, the Regional Economics Committee has decided to focus on addressing issues surrounding airport charges. If you need support from the Regional Office, please do not hesitate to contact my team for further assistance.

AND FINALLY…

Last, but not least, I would like to call for your participation on the two upcoming events to be held in our region in 2018. The Small and Emerging Airports Seminar 2018 will be held on October 10-12 in Langkawi, Malaysia, with the aim of gathering the small and emerging airports in the region to discuss some of the challenges and opportunities that they are facing. Also in October, we have the Trinity Forum in Shanghai, China, co-organised with the Moodie Davitt Report and ACI World and hosted by Shanghai Airport Authority. I hope you can join us at these two exciting events in APA our region. www.aci-apa.com

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400 airports by 2035 as part and parcel of the Belt and Road Initiative.

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NEWS

GREEN LIGHT FOR MELBOURNE AIRPORT RAIL LINK

LCC MARKET GROWING ACROSS THE REGION

Melbourne Airport has welcomed the news that Australian Prime Minister, Malcolm Turnbull, has pledged A$5 billion through a Commonwealth fund to build the Melbourne Airport Rail Link, connecting the CBD and the gateway. Airport chief executive, Lyell Strambi, said: “A rail link can help us to realise the full potential of Melbourne Airport, injecting enormous value into the Victorian and national economies, creating and supporting jobs for the local community and putting the world within reach for millions of Victorian travellers.” The rail link will also help reduce the strain on the Tullamarine Freeway which is one of the busiest roads in Victoria, catering to up to 210,000 vehicles a day.

The LCCs continue to grow strongly and accommodated 31% of all passengers handled across Asia-Pacific in 2017 or 1.2 billion passengers, ACI Asia-Pacific’s regional director, Patti Chau, told delegates at the 10th annual ACI Airport Economics and Finance Conference & Exhibition in London. Chau revealed that their growth had been particularly impressive in South Korea and Japan where in 2017 they handled 30.6% and 22.6% of their respective country’s international traffic compared to 8.2% and 4.8% in 2012. She noted that both Cebu Pacific and AirAsiaX reported a 26% rise in cargo volumes in 2017, a market largely ignored to date by the LCCs.

The Airports Authority of India (AAI) has pledged to invest $60 million on upgrading Goa’s Dabolim International Airport despite the ongoing construction of a new international gateway on a greenfield site in Mopa, North Goa. AAI plans to expand Dabolim’s existing terminal, add new parking bays and a parallel taxiway to better equip the gateway for an increase in traffic and aircraft movements. A new in-line X-ray baggage system, self-service kiosks and Common User Terminal Equipment (CUTE) will also be added as part of the upgrade. AAI insists that Dabolim, which handled around 7.5 million passengers in 2017, will remain open after the anticipated 2020 opening of the new $550 million Goa Mopa Airport, which is being built and will be operated by GMR-led GGIAL under a 40-year concession.

GOA GATEWAY TO BE EXPANDED

FRENCH CONNECTION A consortium spearheaded by Groupe ADP has completed the acquisition of a controlling 51% stake in Airport International Group (AIG), operator of Queen Alia International Airport in Amman, Jordan. Groupe ADP’s investment in the transaction is around $265 million with its interests in the consortium represented by its international investment arm and 100%-owned subsidiary, ADP International (ADPI). ADPI already held a 9.5% stake in AIG, which has held the concession to operate and develop Queen Alia International Airport since 2007. According to Groupe ADP, the deal to take over AIG, will give it further opportunities to APA Issue 2, 2018

“spread its know-how, expertise and services” at Queen Alia International Airport. The objectives, it says, are to reinforce the air network departing from Amman, improve the quality of service offered to passengers and the performance of aviation and retail activities, and ensure a sustainable and socially responsible development during the remaining duration of the concession, which runs until 2032. AIG CEO, Kjeld Binger, said: “This step marks a pivotal moment in our journey with Queen Alia International Airport, as we aspire to build on the substantial success we have achieved thus far, and reach unprecedented levels of excellence and innovation in the years to come.”


ASIA-PACIFIC AIRPORTS MAGAZINE

Hyderabad–Rajiv Gandhi International Airport’s cargo terminal has received the World Health Organisation’s Good Storage and Distribution Practices (WHO-GSDP) certification for pharma products. Awarded by SGS India, a leader in certifications in the pharmaceutical sector, the certificate underscores the airport’s commitment to and compliance with quality management standards and international requirements throughout the pharma supply chain. Hyderabad Airport Cargo Terminal received this certification following a rigorous six–month long evaluation process, during which a team of SGS India auditors analysed its transportation, handling and storage processes, quality policies, facility management, equipment maintenance and security. In 2010, Hyderabad Hyderabad-Rajiv Gandhi introduced India’s first airport-based dedicated pharmaceutical handling facility (Pharma Zone), to handle the export of pharmaceutical products. Pharma products now account for 60% of all cargo exports from the airport.

SHARJAH’S EXPANSION PLANS GATHERING PACE Sharjah International Airport has awarded Groupe ADP, through ADP Ingénierie, a contract to design and supervise the $410 million expansion of its terminal building. ADP Ingénierie notes that it won the €15 million contract after a “very competitive tender”. The upgrade, one of the largest ongoing airport development projects currently in the region, will involve increasing the capacity of the existing terminal from today’s 11 million passengers per annum to 17.5mppa at the same time as enhancing the passenger experience.

Gratien Maire, CEO of ADP Ingénierie, says: “This new contract rewards our know-how in airport design in a part of the world where we are very active. “Our team of experts will be deployed in Sharjah. One of the challenges will be to maintain the airport capacity and operations at all times during the execution of the construction packages, which are expected to start in 2019.” Groupe ADP claims to have a strong knowledge and understanding of the dynamic region having worked in it for over 40 years. www.aci-apa.com

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CARGO TERMINAL GETS WHO CERTIFICATION

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EVENTS: REGIONAL CONFERENCE

Back to the future Joe Bates looks back at April’s ACI Asia-Pacific Regional Assembly, Conference and Exhibition in Narita and discussions about the future challenges and opportunities facing the region’s airports.

A

packed conference programme featuring aviation industry leaders from across the globe, a variety of hot topics to discuss and the chance to sample some Japanese culture both modern and old made this year’s ACI Asia-Pacific Regional Assembly, Conference and Exhibition in Narita one to remember for all 521 delegates and 41 exhibitors lucky enough to be in attendance. The event officially began with opening addresses from Narita International Airport Corporation’s president and CEO, Makoto Natsume; Japan’s Parliamentary Vice Minister of Land, Infrastructure, Transport and Tourism, Kazuo Yana; Chiba Prefecture’s vice governor, Wataru Takahashi; and ACI Asia-Pacific president and Changi Airport Group (CAG) CEO, Seow Hiang Lee. Lee told delegates: “Our region, which includes the Middle East, is the largest and fastest growing aviation market with passenger volumes growing year-on-year by 8% and 5.3% in Asia-Pacific and the Middle East respectively. “Despite the looming challenges that continue on the horizon, many airports posted annual growth rates above the APA Issue 2, 2018

historical average in 2017. But to support this growing environment, a continuous investment in airport infrastructure remains an important imperative for all of us to ensure that the capacity is there when needed.” He cited Tokyo Narita’s plans for a third runway and extension to its existing second runway as an excellent example of the capacity enhancing work being carried out by airports across the Asia-Pacific region. He also praised Muscat’s newly opened terminal and Incheon’s new Terminal 2, noted that Beijing Daxing is set to open late next year, mentioned other proposed or ongoing development projects at Hamad, Hong Kong and Dubai World Central and welcomed the Australian government’s decision to build the Western Sydney Airport. A keynote address followed from NEC Corporation’s president and CEO, Takashi Niino, which gave delegates a glimpse of the high-tech future that possibly awaits the aviation industry and the world at large. An all Japanese panel discussion followed with moderator, the University of Tokyo’s visiting researcher, Katsuhiro Yamaguchi, leading a panel discussion entitled ‘Sustainable Tourism in Japan:


ASIA-PACIFIC AIRPORTS MAGAZINE

EVENTS: REGIONAL CONFERENCE

Stimulating Economic Growth Through Tourism Development’. Tokyo Narita’s senior executive vice president, Futoshi Osada, and Kansai Airports’ representative director and CEO, Yoshiyuki Yamaya, represented the airport side of things during the debate.

LEADERSHIP FORUM

Next up was the ‘Leaders Forum – Airport Industry Beyond 2020’, a panel discussion moderated by ACI World’s director general, Angela Gittens, which featured some of the best-known names in the industry in the shape of Oman Airports Management Company (OAMC) CEO, Sheikh Aimen Al-Hosni; Airports Company South Africa (ACSA) CEO and current ACI World chair, Bongani Maseko; Arup’s strategic aviation advisor and former Aéroports de Montréal president and CEO, James Cherry; and the re-appearing Lee and Natsume from CAG and Tokyo Narita respectively. Topics covered included what they considered to be the top airport priorities for future proofing their businesses; the need for greater collaboration between airports and airlines; and the challenges of attracting and retaining staff. In response to the top priorities question, OAMC’s Al-Hosni said: “It is important to make better use of our existing facilities before considering costly infrastructure expansions, and one way of doing this is to invest in IT and provide good solutions for passengers.” He noted that simply making it easy to get online made passengers happy as today’s travellers want to be connected 24/7, and this sometimes had the added benefit of helping reduce queues at

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check-in, introduced them to the airport’s facilities and made wayfinding easier. On the same topic, Cherry – a former ACI World chair – said: “I think [in planning terms] we don’t do enough to truly anticipate where technology is going or the changing demands of our passengers. So, I believe that every few years we should all sit down and reflect upon what are the emerging technologies that are going to affect us, and there’s dozens of them right now, and what are the things that are happening in our environment that are going to impact on us. “Very often, and we’ve all been subjected to this, we get demands that www.aci-apa.com


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EVENTS: REGIONAL CONFERENCE

are driven by security, government or immigration requirements and we can’t deal with them effectively so we shoehorn them into our buildings and our passengers suffer as a result. “When I talk about anticipating new technologies, I am not thinking about this year or next I am thinking about five, ten, twenty years out as when you pour concrete you are typically building something that is going to last at least 30 to 40 years.” Maseko revealed that as technology was almost certainly going to be the biggest disrupter in the future, ACSA was considering the possibility of codeveloping solutions with IT service providers rather than waiting for them to come to ACSA with solutions. He also mentioned that airports needed to be flexible in their future planning to take into account new trends and, on a separate issue, touched on the difficulties ACSA faces in holding on to good, young staff. In terms of the latter, he stated that a possible solution to the challenge could be to develop better defined career paths, which clearly outlined the growth opportunities for them within the aviation sector. Cherry commented: “Aviation is a fascinating career and once you get into it, people rarely leave. It is an exciting place to be and great to be part of but we have to do a better job of selling it. We have to get into the universities and community colleges and sell aviation and that’s for the benefit of airports, airlines, pilots, air traffic control and the industry across the board.” However, arguably it was the Association of Asia Pacific Airlines (AAPA) director APA Issue 2, 2018

general, Andrew Herdman, who set tongues wagging with his brutally honest assessment about whether today’s airports are delivering good value for customers, pondering whether passengers knew that airport charges accounted for around $40 of the cost of each airline ticket. Herdman said: “I am not a proponent of saying we want tin sheds [as terminals] as even the big, successful LCCs need sophisticated baggage handling systems, air bridges and connectivity, so you need scale, service and good quality infrastructure. But, having said that, you have to focus on productivity and sweating the assets to get more throughput and improve efficiency to reduce the unit costs. “I’d like to see more emphasis on capital efficiency measured in terms of what’s the impact on unit costs. I don’t know of any other industry that says we are going to double the size of the factory but the unit costs of doing this are going to be higher. It’s always lower, so we need to try and find a way in the airport infrastructure business of delivering a lower unit cost and better value to the customer as that is the key to sustainability.”

AIRPORT PRIVATISATION

After lunch, ACI World’s director of economics, Stefano Baronci, introduced the organisation’s new Policy Brief on Airport Ownership, Economic Regulation and Financial Performance before taking part in an informative debate entitled ‘Airport Privatisation – To Be or Not To Be?’ Talking about using privatisation as a catalyst for developing airports, Kansai Airport’s co-CEO, Emmanuel Menanteau,


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EVENTS: REGIONAL CONFERENCE

responded by asking: “Do you think we have any other choices? “Privatisation of any asset is the result of a government decision. In most countries when a government creates the regulation for privatisation, there are good reasons. The main reason, of course, is the need for investment as the government cannot afford the cost of building new infrastructure.” He noted that the process often reduced and allowed for the reallocation of public debt and in many cases led to huge improvements in airport efficiency and customer service standards, “ultimately bringing the best results for passengers.” Sydney Airport’s chief operating officer, Hugh Wehby, was as equally bullish about the advantages of privatisation, claiming that in his airport’s case the 2002 deal had achieved all of its objectives and more in terms of delivering on the Australian government’s original targets. “Sydney, like a number of Australian airports, was facing a substantial investment regime. Service standards were slipping. One of our largest two airlines [Ansett Australia] had collapsed and there was enormous demand coming from passenger growth,” said Wehby. “So, the government turned to the private sector to try and help solve these issues. Investment was needed in the first instance and we have spent around A$300 million a year without building a new terminal or runway because we have had to invest in so many facilities. “The Australian government’s goal was also to create the best passenger experience so it set the regime up to APA Issue 2, 2018

succeed by introducing a regulatory framework that was transparent, consistent and had longevity.” Also on the panel were GMR Hyderabad International Airport’s CEO, SGK Kishore; Societe Generale’s head of infrastructure finance for Asia-Pacific, Gavin Munro; and Masaharu Kubota, director general of aviation network development at Japan’s Civil Aviation Bureau.

ANNUAL ASSEMBLY

Day 1 ended with ACI Asia-Pacific’s annual Regional Assembly followed by a Gala Dinner where an unexpected highlight of the evening’s entertainment was the sight of ACI World’s Gittens on stage kicking an animated ball that was being projected onto a huge screen behind her! The Regional Assembly itself provided ACI Asia-Pacific’s regional director, Patti Chau, with the chance to highlight some of the Regional Office’s achievements over the past 12 months as well as for members to elect a new president and first vice president and celebrate the official presentation of a number of awards that included Airport Carbon Accreditation certificates, ACI Asia-Pacific Green Airports Recognition trophies and the ACI AsiaPacific Young Executive of the Year prize. CAG’s CEO, Seow Hiang Lee, was formally elected president of ACI Asia-Pacific and Kansai Airports’ Emmanuel Menanteau was named as the region’s new first vice president. Both positions are for two years. Rejoining the Regional Board are Queen Alia International Airport’s Kjeld Binger (second vice president) and OAMC’s Sheikh


ASIA-PACIFIC AIRPORTS MAGAZINE

developments is required to equip the region to cope with surging traffic growth. Gittens said: “The diversity of airports in our Asia-Pacific region is mirrored in each country’s economic and infrastructure development. Even among airports within the same country, the needs and conditions they individually face can be vastly different. “Requiring all airports to conform to any single particular model of ownership and management would significantly inhibit them from responding to the specific needs of their passengers and unique local challenges of growth. “It is therefore essential that our airport members be allowed to be flexible in how they are managed to best serve their passengers’ and the economic needs of their local, regional, and national communities. This is consistent with ACI World’s position for airports across the globe.” On sustainability, Chau said: “Just as important, airports are encouraged to continue engaging in industry-led sustainable development initiatives such as the Airport Carbon Accreditation programme, waste management and renewable energy strategies, not just as a means of responsibly protecting the environment but also for achieving cost savings in the long run.” According to the recent ACI Asia-Pacific Environment Survey, waste management and renewable energy are two of the environmental priorities for Asia-Pacific airports. www.aci-apa.com

EVENTS: REGIONAL CONFERENCE

Aimen Al Hosni (secretary treasurer) while Airport Authority Hong Kong’s Fred Lam was re-elected second vice president. New Sydney Airport CEO, Geoff Culbert, and Guangdong Airport’s general manager, Kejian Zhang, were also elected to the board for a period of three years. ACI Asia-Pacific now boasts 106 members that between them operate 605 airports in 49 countries and territories with the newest airport members being Qeshm International Airport (Iran) and Ras Al Khaimah International Airport (UAE). Members took a unified stance to empower airports’ economics and environmental efforts with two new resolutions. Resolution 1 was a Call for Support and Recognition to Create Fertile Ground for Sustainable Infrastructure Development to Serve and Support the Asia-Pacific Communities; and Resolution 2 was a Call for Airports to Adopt Waste Management and Renewable Energy. Chau noted: “As one of the most diverse regions in the world, economically and geographically, it is important to recognise that there is no one-size fits all solution on how airports should be run. “Airports should have the flexibility to determine the most appropriate charging system, ownership and management models to best serve and support their communities.” It was noted that in 2017, air traffic in Asia-Pacific and Middle East reached approximately 3.3 billion passengers and is expected to double by 2029, meaning that significant investment in airport infrastructure, operations and

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DAY 2

Day 2 of the conference began with a keynote address by Stephen Perkins, head of research and policy analysis for the International Transport Forum and the OECD, followed by a panel discussion on ‘Airport Capacity Expansion Plans in Asia and the Impact on International Air Transport’ and a debate about ‘Technological Innovation On Airport Operations’ moderated by IATA’s regional director for airport, passenger, cargo and security, Vinoop Goel. In the panel discussion on airport capacity expansion, Airports of Thailand (AoT) senior executive vice president, Sasisubha Sukontasap, revealed that all six AoT airports are undergoing expansion projects in order to meet growing demand and the government’s expansion plans. The projects include a new terminal, satellite concourses and runways at Bangkok Suvarnabhumi raising its capacity to 90mppa. And such is the demand for air travel she noted that although a non-AoT project, the Thai government has announced plans to develop a new international airport on the site of an existing naval air base in U-Tapao, about 140km south east of Bangkok and an hour’s drive from Pattaya. “The new airport and Suvarnabhumi and Don Mueang will all be served and connected by an express rail link and between them be able to handle future growth and tourism demand for Central Thailand,” said Sukontasap. APA Issue 2, 2018

She noted that Bangkok’s Suvarnabhumi and Don Mueang currently handle a combined 700,000 air traffic movements annually and AoT’s gateways welcome 85% of all passengers handled in Thailand. During the ‘Technological Innovation on Airport Operations’ session, Airport Authority Hong Kong’s Vivian Cheung revealed that she and her colleagues use the made-up word ‘technovation’ – created from technology and innovation – to describe the innovative work being done in Hong Kong by the airport in tandem with local research laboratories and universities to develop technology that will enhance the passenger experience, raise the airport’s capacity and reduce the need to recruit new staff. “Passenger demand is growing and everybody wants to travel, but we are finding it increasingly hard to recruit staff, so automation and new technology will help us improve this workforce issue,” said Cheung. The conference closed with the official launch of ACI’s new Landside Security Handbook and a lively debate about ‘New Trends Affecting the Airport Business’ moderated by Airbiz’s managing director, Greg Fordham, whose own idea for a new Intelligent gate concept can be viewed on page 40 of this issue. Next year’s joint ACI Asia-Pacific/World Annual General Assembly, Conference & Exhibition will be held in Hong Kong on April, 2–4, 2019. Put a date in your diary, you won’t want to miss it!

APA


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ACI ASIA-PACIFIC NEWS

Regional update Seminars, symposiums and the election of a new president make the headlines this June/July, writes Vivian Fung.

Seow Hiang Lee, CEO of Changi Airport Group, was officially elected president of ACI Asia-Pacific during this year’s Annual Assembly in Narita. Lee, who agreed to serve the unexpired term of former president Kerrie Mather after she retired in January, expressed his delight at taking on the role for the next two years. “ACI has long been at the forefront in fostering co-operation among its member airports and other partners in world aviation, and I am honoured to have the opportunity to serve as the president of ACI Asia-Pacific region,” he enthused. “I will continue to work closely with Patti [Chau] and the Regional Board to ensure that ACI remains relevant to the changing needs of our members and contributes toward a safe, secure, efficient and environmentally sustainable air transport system. “I would also like to take this opportunity to thank our past president, Kerrie Mather, for her contributions and her leadership in strengthening ACI Asia-Pacific and wish her all the best in her future endeavours.” ACI Asia-Pacific’s regional director, Patti Chau, commented: “I welcome Seow Hiang Lee as ACI Asia-Pacific’s new president. He APA Issue 2, 2018

has been an active member of the ACI Asia-Pacific Regional Board since 2008 and brings with him a wealth of international aviation industry experience and expertise. “As CEO of one of the most dynamic business and transport hubs connecting the world, Seow Hiang Lee has an excellent knowledge of airport operations, commercial opportunities, regulatory framework, infrastructure and investment requirements globally. “We look forward to his engaged leadership to steer ACI Asia-Pacific well into the future and advance the interests of Asia-Pacific airports.” Other changes to the Board of Directors included the election of Kansai Airports co-CEO, Emmanuel Menanteau, as first vice president and the appointment of two second vice presidents – Kjeld Binger (Airport International Group) and Fred Lam (Airport Authority of Hong Kong) all for two year terms. While new faces to the board are Geoff Culbert (Sydney Airport) and Kejian Zhang (Guangzhou Baiyun International Airport), both appointments being for three years.


October 10-12 Small and Emerging Airports Seminar Langkawi, Malaysia

November 27-29 Airport Exchange 2018 Oslo, Norway

2018

Oct 31-Nov 1 The Trinity Forum Shanghai, China

2019

April 2-4 ACI Asia-Pacific/ World Annual, General Assembly, Conference & Exhibition Hong Kong

ACI ASIA-PACIFIC BOARD

PRESIDENT

Seow Hiang Lee* (Changi Airport Group Pte Ltd, Singapore)

FIRST VICE PRESIDENT

Emmanuel Menanteau* (Kansai Airports, Japan)

SECOND VICE PRESIDENTS

Kjeld Binger (Airport International Group, Jordan) Fred Lam (Airport Authority Hong Kong, Hong Kong)

SECRETARY-TREASURER Sheikh Aimen bin Ahmed Al Hosni* (Oman Airports Management Company, Oman)

IMMEDIATE PAST PRESIDENT

Tan Sri Bashir Ahmad Abdul Majid** (GMR Airports Limited, India)

REGIONAL BOARD DIRECTORS

Badr Mohammed Al-Meer (Yangon Aerodrome Company Limited, Myanmar) HE Ali Salim Al Midfa (Sharjah Airport Authority, UAE) Gholam Hossein Bagherian (Iran Airports & Air Navigation Company, Iran) Il-Young Chung (Incheon International Airport Corporation, Korea) Geoff Culbert (Sydney Airport, Australia)

Eric Delobel (Cambodia Airports, Cambodia)

Dar-jen Tseng Taoyuan International Airport Corporation (Chinese Taipei)

Xue Song Liu* (Beijing Capital International Airport Co Ltd, China)

Jianrong Wu (Shanghai Airport Authority, China)

Pedro Roy Martinez (AB Won Pat International Airport Authority, Guam)

Kejian Zhang (Guangdong Airport Authority, China)

Guruprasad Mohapatra (Airports Authority of India, India)

REGIONAL BOARD DIRECTOR (WBP)

ACK Nair (Cochin International Airport Limited, India)

Greg Fordham (Airbiz Aviation Strategies Pty Ltd, Australia)

Futoshi Osada (Narita International Airport Corporation, Japan) Sasisubha Sukontasap (Airports of Thailand Public Co Ltd, Thailand) * WGB member **Regional Advisor on WGB

The ACI Asia-Pacific region represents 106 members operating 605 airports in 49 countries and territories. www.aci-apa.com

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ACI ASIA-PACIFIC NEWS ICAO ASIA AND PACIFIC REGIONAL CYBERSECURITY SYMPOSIUM

ACI Asia-Pacific was invited to make a presentation on ‘The Challenges to Smart Airports in a Cyber Environment’ at the recent ICAO Asia/Pacific Regional Cybersecurity Symposium in Hong Kong. It was the first time the symposium had been hosted by Hong Kong in Asia-Pacific following the adoption of a cybersecurity resolution at the ICAO Assembly in 2016. The symposium was an opportunity for experts in aviation, information technology, cybersecurity, ICAO and its members coming together to share latest technologies, information and experience. ACI’s presentation touched upon how vulnerabilities were inevitable as connectivity increases in the Smart Airport environment, emphasising the need for process managers to take ownership of cybersecurity processes in close collaboration with respective IT departments and stakeholders. We encouraged airports to adopt technologies enhancing operational efficiency and customer service in face of competition. Airports were also encouraged to adopt a total management approach to cybersecurity, inclusive of the procurement process to decommissioning of equipment and services. The symposium was jointly organised by ICAO, the Civil Aviation Department of Hong Kong SAR, and Airport Authority Hong Kong.

ACI-DNA SEMINAR ON AIRPORT SECURITY OPERATIONS CONCLUDED IN NEW DELHI

GMR Aviation Academy hosted the second ACI-Developing Nations Airport Assistance (DNA) Programme of 2018, the theme for the event in New Delhi, India, on May 28-30 being ‘Airport Security Operations’. Nearly 20 airport representatives from Bhutan, Cambodia, India, Maldives, Myanmar APA Issue 2, 2018

and the Philippines attended the seminar, which was conducted by Sara Gladstone. On the agenda during the three-day seminar was passengers and staff screening; landside security measures; security culture; security case studies; and best practice sharing.


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AIRPORT REPORT: OSAKA’S AIRPORTS

Investing in Japan

Emmanuel Menanteau, Co-CEO of Kansai Airports, tells Joe Bates more about Kansai Airports’ ambitions for Osaka’s airports and the Japanese market.

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he recent addition of Kobe to its Japanese airport network means that Kansai Airports now operates three of the country’s busiest gateways. Arguably, the jewel in the crown is Osaka’s Kansai International Airport (KIX), which handled 27.9 million passengers (+10%) in 2017 to cement its status as Japan’s third biggest gateway after Tokyo’s Haneda and Narita airports. Osaka International Airport (ITM) – formerly known as Itami International Airport – welcomed 15.6 million passengers (+3%) last year to retain its ranking as the country’s seventh busiest airport. While new addition from April 1 this year, Kobe Airport (UKB) – located in APA Issue 2, 2018

Kobe City just 35 kilometres from Osaka – accommodated 3.1 million passengers in 2017 to remain Japan’s 14th busiest gateway. The long-term goal is to eventually operate all three gateways as one airport system in a bid to meet rising passenger demand across the region.

LEADING THE WAY

In terms of the privatisation of its airports, Japan is a relative newcomer to the stage, so the world was watching back in November 2015 when Kansai Airports agreed to pay $18 billion deal for the 44 year concession to operate and develop KIX and ITM.


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THE APPEAL OF JAPAN

To those that thought that there was little to no future growth left in the Japanese market, think again, and Menanteau has little hesitation in stating that there is much more to come. His confidence is, in part, boosted by the fact that Japan has only embraced the low-cost carrier phenomenon in the last few years and, as KIX and ITM have proved since Kansai Airports took over the concession, www.aci-apa.com

AIRPORT REPORT: OSAKA’S AIRPORTS

The consortium – spearhead by global airport operator VINCI Airports and Japanese financial firm ORIX Corporation – was certainly entering new territory when the concession began on April 1, 2016, as the Japanese government had never before handed over control of one of its existing airports to the private sector. How would the airlines respond to the change in dynamics? Was the fee too high considering the work that needed to be done in terms of infrastructure enhancements to ITM? And what could the new concessionaire, Kansai Airports, do that the government couldn’t to stimulate traffic growth in a mature aviation market with an aging population and where new infrastructure costs come at a premium? The April 1 addition of Kobe Airport probably tells you all you need to know about the success to date of the Osaka airports concession.

“The concession fee was never an issue because building KIX on a man-made island 40 kilometres south of Osaka was a huge operation and the government always wanted to recover its investment,” says Kansai Airports’ Co-CEO, Emmanuel Menanteau. “How have the airlines responded to the change of owners? All of them have been very positive because they have seen that we are committed to developing the airports and have introduced a new pricing structure that is designed to stimulate traffic growth. “What do we bring to the table as a private operator? “We bring investment and international best practice and skills in operating airports. “We are quite unique in our business model in that we invest in, design and operate airports with the aim of enhancing capacity.” Talking about how the first two years of the five decade long concession have gone, he adds: “I would say we have done well and look forward to doing even better over the coming years. “Traffic is up at both airports since we took over the concession. We have also been quite successful in expanding Kansai’s route network, overseen the expansion of Terminal 2 at KIX and are now looking to complete the enhancement of the facilities at ITM.” He also reveals that the company has introduced a number of new technologies and processes to the Japanese market such as Smart Security, Fast Travel and ‘Smart Lanes’, which he believes have “changed some of the rules of the game with airlines and some stakeholders”.

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AIRPORT REPORT: OSAKA’S AIRPORTS

route development will follow if airlines are offered the right incentive schemes. “We [VINCI Airports] never had any doubt about the appeal of the Japanese market and, with our experience in construction and operating airports, and with the support of our Japanese partner, ORIX, we feel that we can grow the business,” says Menanteau. “In many ways it is a typical VINCI Airports concession, in that it requires a high demand in capital, but is a long-term investment with expected good returns.” VINCI and ORIX each have a 40% stake in Kansai Airports with the remaining 20% of the shares owned by local investors. He says that giving investors and bankers “good visibility” about the long-term objectives of airport concessions usually helps secure the backing required for construction intensive projects, which he reveals generally offer a quicker, but smaller, return on investments. “Although Japan is a mature aviation market and traffic growth has been quite flat, in recent years the government has made a big push to promote tourism and this has had a positive impact on visitor numbers, particularly from China, Korea, Taiwan and Hong Kong,” says Menanteau. “The campaign has actually exceeded its targets for the last two years, and this shouldn’t come as a surprise really as Japan has a great product. Tourists have a great desire and willingness to visit the country, and I am pleased to say that today, KIX is the APA Issue 2, 2018

number one airport in Japan for Chinese and Korean visitors.” He notes that the government fell just short of achieving its target of attracting 20 million international visitors annually to Japan by 2015 and is now aiming for 40 million by 2020, when Tokyo hosts the Olympic Games, and 60 million by 2030. And with a record 30 million people visiting Japan in 2017, it is arguably ahead of the game in its 2020 target.

TRAFFIC GROWTH

In terms of traffic growth at its airports, rising tourist numbers and the continued growth of the low-cost carriers in the domestic market helped make 2017 a record year for passenger traffic at Osaka’s airports. And the good news has continued this year for KIX with traffic up 12.2% to 7.5 million passengers in the first quarter of 2018, with throughput at ITM rising by 2.2% to 3.7 million. The introduction of a new pricing structure for the airlines, which includes reduced landing and parking fees for carrier’s launching new routes, certainly seems to have made an impact at KIX where AirAsia X and Scoot both commenced non-stop services to Honolulu last year and Qantas resumed flights to Sydney in December after a 10-year absence. Other airlines launching new international services from KIX in 2017 included Jetstar Pacific (Hanoi and Da Nang) and Air Seoul (Seoul Incheon).


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AIRPORT REPORT: OSAKA’S AIRPORTS

Menanteau is quick to point out that KIX boasts more direct routes to China today than either Tokyo’s Narita or Haneda airports, and is actively working to add more, along with new services to South East Asia, which is a key focus area for the airport. He suggests that narrow-body aircraft such as the A320neo and B737 Max now make it possible to serve a number of new destinations in South East Asia from KIX and is keen to explore the options with different airlines. The top five airlines at KIX today in terms of passenger numbers are Peach, the Jetstar Group (Jetstar Airways, Jetstar Asia Airways, Jetstar Japan and Jetstar Pacific Airlines), Japan Airlines, All Nippon Airways and Cathay Pacific.

LCC GROWTH AT KIX

Menanteau reveals that LCCs, led by Peach, now account for 42% of all passengers at KIX. Talking about the rise of the LCCs in Japan, which first entered the market in 2012 and now account for 10% of the world’s third largest domestic market, Menanteau says: “For a number of reasons Japan got its first LCCs much later than most other countries in Asia, and they are quickly making up for lost time. “They have made it easier and more affordable to fly domestically. They are cheaper to use than the high-speed trains APA Issue 2, 2018

and have really changed the way people travel within Japan. “We have also seen the introduction into the market of non-Japanese LCCs such as AirAsia X and Scoot which are developing Japan as a hub for international traffic.” Other LCCs serving the Japanese domestic market from KIX include Jetstar Japan and All Nippon Airways subsidiary, Vanilla Air, which is quickly evolving into a medium to long-haul operator.

INFRASTRUCTURE DEVELOPMENT

More visitors/people inevitably means a country needs to upgrade its infrastructure to cope with demand, and Japan is no different. The country is fast building new hotels, developing its road and rail networks and enhancing facilities at tourist sites to ensure that it is equipped to cope with long-term growth. The January 2017 opening of the expanded Terminal 2 at Kansai Airport means KIX currently has the capacity to accommodate predicted growth for the foreseeable future, but Menanteau states that improvements still need to be made to Terminal 1 to make it more operationally efficient. “We are currently in the study phase for the reconfiguration and renovation of Terminal 1 as the high growth in


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Kansai Airports is also overseeing ITM’s first major upgrade in nearly 50 years, investing much more than required under the terms of the concession to create a more efficient and user-friendly terminal. “In terms of innovation and facilitation, we are going to create a real Fast Travel experience with Smart Security in order to ensure quick and easy passage through the terminal,” he enthuses. “Why are we doing this? Because we feel that ITM faces direct competition from the Shinkansen high-speed trains, especially on the Osaka–Tokyo route, where it takes up to 85% of the traffic. If we are to tempt people to change their travelling habits and go by train, getting stuck at security for half an hour doesn’t work. “We are also going to increase the range and variety of commercial offerings in the terminal. The new additions will include a walk-through shopping mall after security and a revitalised landside that we hope will appeal to local people and encourage them to visit the airport to shop, dine and be entertained. “New landside facilities will include a kids’ park, a business zone, an expanded third-floor terrace and new shops and restaurants, some of which will offer high quality dining. Sense of place reflecting the Osaka region will be APA central to everything.” www.aci-apa.com

AIRPORT REPORT: OSAKA’S AIRPORTS

international traffic since 2010, while its domestic numbers have remained relatively static, has created some capacity issues as the facility was designed for an equal split between international and domestic operations,” admits Menanteau. “The imbalance in growth levels means that the international part of the terminal is always busy and congested and the domestic terminal sometimes looks empty. “Re-organising the terminal will allow us to reset the balance because at the moment we are tight for space for international operations and have capacity on the domestic side.” Terminal 1 handled around 22 million passengers in 2017 with international operations accounting for the bulk of the operations and 85% of all traffic at KIX. KIX’s new-look Terminal 2, a dedicated LCC facility currently used by Peach and Spring Airlines, now spans 66,000sqm and boasts separate ‘international’ and ‘domestic’ complexes and a host of retail/F&B outlets and passenger friendly facilities. These include the first walk-through duty free area in Japan, Smart Security lanes, reconfigured and easier to use drop off and pick up zones, additional bus stops and car parking for up 1,600 vehicles. Menanteau says: “It may be a low-cost terminal, but it is definitely not a no frills facility in terms of its facilities.”

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PASSENGER FACILITATION

Easy come, easy go! Sumesh Patel, SITA’s Asia Pacific president, argues that biometric technology will play a key role in ensuring faster, more efficient and safer passenger journeys through airports in the future.

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ow do you balance the two most critical aspects of border control? Passengers don’t want to wait, but airports and border authorities need to ensure the wrong people don’t get through border control. How can we guarantee comprehensive security while satisfying passengers’ desire to get through the airport as quickly and easily as possible? These questions become even more complex when you consider that passenger numbers are only going up. According to IATA, global airline passenger numbers are forecasted to grow from a projected 4.3 billion this year to 7.8 billion by 2036, with more than half that growth expected in Asia- Pacific. An additional 2.1 billion passengers in Asia-Pacific represents more than double the current traffic in the region. The quest for free-flowing passenger movement across borders is further APA Issue 2, 2018

complicated when you consider that most airports face a real-estate challenge: there simply isn’t enough space to build new terminals. Instead, airports will have to consider how they can be more efficient with the space they already use.

BIOMETRIC FUTURE

So, how can airports and border authorities make sure they carry out adequate checks on every single passenger to identify the tiny proportion who are not authorised to travel while avoiding snaking queues at border control? This is where biometrics will play a huge role as biometric identifiers are unique to


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IMPORTANCE OF INTEGRATION

each passenger and, crucially, the latest technologies are intuitive, fast and accurate. The end-game is for all airports to use biometrics to create a single identification token for passengers at every step in their journey, from check-in, bag drop, and security, right through to boarding and border control. Typically, the passenger’s biometric details are captured through a facial scan at the first touchpoint in the journey. The record is checked against the passenger’s travel documents – normally their passport – and a secure single token is created. Then, at each step of the journey passengers gain access simply with a facial scan and without having to show their travel documents.

How can airports harness the benefits of biometrics most efficiently? Integration with legacy business processes and systems, and external systems such as government watch lists is a big challenge. Integration must be cost-efficient and done in a way that works for every airline at every airport. The best way to do so is by leveraging the existing shared common-use IT infrastructure at airports around the globe. And it’s not as simple as integrating one or two systems. Comprehensive border control requires a multi-layered approach that encompasses several stakeholder organisations across multiple systems and departments. It’s only when you have that level of synergy and integration that you get real-time, intelligence-based risk assessment of passengers. Being at the heart of the air travel industry, SITA is in a unique position to facilitate this collaboration between airports, airlines and the government.

REAL WORLD EXAMPLES

It will take a little time before we see biometrics at every stage of every airport journey, but Brisbane Airport is setting a good example for airports looking to make the most of the technology. SITA Smart Path is in use at Brisbane Airport, giving passengers a biometric single token experience from check-in to the aircraft door, helping them fast-track through the airport. www.aci-apa.com

PASSENGER FACILITATION

Automation and secure biometrics lessens the risks of human error during manual checks by airline agents while also making the process more efficient and pleasant. It removes the need to show paper documents and passports at various stages of the airport journey before passengers get on a plane. Theoretically, passengers can breeze through all processes without breaking their stride. All they need is their face.

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PASSENGER FACILITATION The solution integrates into existing kiosks and boarding common-use systems ensuring easy implementation. Air New Zealand passengers are the first to be able to use it, but the airport is looking to add more airlines and more touchpoints. As we wait for ubiquitous biometric single token travel, we’re already getting accustomed to the ease of biometric passport checks. Most of us have experienced the process: place your ePassport on the reader, wait a few seconds, and walk through the open gate. It’s very easy-to-use and saves you time. For airports and airlines, it is also more cost and operationally efficient, allowing more passengers to be processed using the same level of human resources. And it’s not just passport control. Biometric boarding looks set to become the norm sooner rather than later, with a series of recent trials around the world showing the benefits of enabling passengers to board with a quick facial scan or picture. Passengers simply look at a camera to get through different stages of the journey. A major consideration for Asian airlines is how they will manage the US biometric exit check, which is increasingly popular APA Issue 2, 2018

at airports in the US following a number of successful trials. JetBlue, for example, is using biometric facial recognition boarding in collaboration with SITA and the US Customs and Border Protection (CBP) agency at Boston Logan International Airport. SITA is also taking part in a joint initiative between British Airways, Greater Orlando Aviation Authority and CBP, which incorporates US biometric exit checks for passengers flying out of Orlando.

NO TIME LIKE THE PRESENT

This isn’t a transient phase of identity management. Biometrics are here to stay. Passengers and airports both stand to benefit from embracing biometric technology more wholeheartedly. They’ve become the norm in our daily lives, as we unlock our phones, our laptops, and even our cars, so it makes total sense. Our research shows that 63% of airports and 43% of airlines plan to invest in biometric ID management solutions in the next three years. Instead of waiting and watching, now is the time to embrace biometrics at every stage of the airport journey.

APA


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PASSENGER FACILITATION

Better by design Arup associate director and aviation security specialist, Stacey Peel, reflects on the challenges of designing the airport of the future and reveals a new passenger processing concept that could help eliminate queues at airports.

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s the aviation industry finds ways to draw on the benefits of new technology, such as using blockchain to protect sensitive information, and seeks to improve its return on investment by planning ahead for emerging trends like autonomous vehicles, there is a lot of blue sky thinking about what the airport of the future will look like. In 2016, the industry talked of what Internet of Things (IoT) meant for airports and airlines. In 2017, the circular runway concept captured our attention as this blue sky thinking is critical to driving innovation. But how do we get from where we are today to what we are confident will be the norm in the next two to three decades? Many of today’s major capital developments aspire to be innovative, but many of the concepts being considered are still just that, concepts. The alternative options are to be first adopters or, as more commonly happens, revert to the same model of delivery with incremental upgrades in infrastructure and system performance.

UNLOCKING THE TRADITIONAL APPROACH TO SOLVING PROBLEMS

Arup’s recent work with India’s GVK Group challenged these options. Using our Future of Air Travel or FOAT methodology – which is founded on organisational psychology theories developed to unlock traditional approaches to problem solving – we looked APA Issue 2, 2018

at ways of bringing to life current thinking, identifying new ideas and driving innovation. In GVK’s case, the focus was on being future ready, with the key priorities being: • Delivering a zero-queue terminal • Re-imagining retail, entertainment and dining • Designing the future terminal – one space, multiple uses • Cost efficiency The FOAT workshop resulted in nine pilot programme ideas – all implementable and all giant steps towards the airport of the future. At the recent Passenger Terminal Expo in Stockholm, GVK and Arup shared, for the first time, the details of one of those nine pilots by taking a deep dive into the zero-queue terminal. The pilot focused on what is feasible in the next one to five years with current technology and architecture, and how this could take GVK’s airports one step closer to being future ready.

TODAY’S DISJOINTED AND DISRUPTIVE PASSENGER TERMINAL EXPERIENCE

Whilst today’s terminal model might be compared to a shopping mall, its provenance is the need to process passengers before and after embarkation. This is recognised in the nomenclature ‘Central Processing Unit’. Those processes, individually and collectively, have evolved and increased over time in quantity and in many cases complexity.


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And, as a direct result of the processes being owned and facilitated by many different entities, the passenger experience is one that is disjointed and disruptive, with multiple stress points caused by: • The passenger needing to compensate for the technologies’ inadequacies. For example, having to divest items at the screening checkpoint • Different processes between each airport, and at times between each journey at the same airport. For example, despite using self-check-in you must still queue to drop your bag whereas at other airports there is self-service bag drop • Multiple queuing as you reach each process: check-in, bag-drop, border control, divestment, person screening, secondary bag check, redress and boarding and on arrival border control, customs, quarantine and baggage collection

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PASSENGER FACILITATION

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• The provision of similar or the same data multiple times, generating a sense of duplication: check-in, bag drop, border control and boarding and, on arrival, border control again • The space and journey between each processing point being counter-intuitive and filled with distraction These individual processes result in significant space-take in the terminal, as well as time-take as each process occurs in a consecutive manner and requires time to and space to transition between them. This space and time consumption takes away opportunities to provide those aspects of the terminal experience the passenger enjoys and where the airport realises revenue from: retail, entertainment and dining. www.aci-apa.com


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PASSENGER FACILITATION

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What the passenger journey of a zero queue terminal could look like. Source: Arup.

INDIVIDUAL PROCESSING PODS

GVK’s timeframe of one to five years meant that the aspirational elimination of certain processes wasn’t feasible so we identified how, with existing technology, the disjointed and disruptive passenger experience could be addressed. It resulted in the idea for individual Processing Pods. The advantages of the Processing Pod are multiple. By using human-centred design, the process can be more intuitive and provide for concurrent processing, thus saving time. While carry-on luggage is being screened, the passenger themselves is being screened. While they undertake check-in and bag drop, the border control process happens passively because the same information is collected once and used for multiple purposes – government’s border control and airline’s check-in requirements. Arup and GVK hypothesise the processing time for the individual passenger can be reduced by up to 65% by concurrent processing and eliminating multiple queuing and transition times. APA Issue 2, 2018

The advantages aren’t only realised for the passenger. The Processing Pod should drive what has been elusive to the industry for so long – the sharing of data. Knowing the passenger will only provide the data once when at the pod, the information must be shared or at least accessible to all parties. Once this particular challenge of sharing data is unlocked, the benefits can be realised elsewhere in the airport, including customised retail experiences, for instance. Furthermore, the space-take required by the pod compared to that needed for dispersed processing could be up to 50% less, in turn releasing valuable footprint for non-aeronautical revenue opportunities. The entities responsible for the individual processes realise operating benefits too as they will only need to provide staff by exception, much like we experience at self-serve supermarket tills. The Processing Pod reduces the number of stress points for the passenger, the duration in which they are interfacing


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PASSENGER FACILITATION

Could Processing Pods help gateways like Dubai International Airport (pictured above) provide passengers with an even better airport experience?

with and transitioning between processes, and the number of times they are providing information. This in turn leads to increasing dwell time and likely desire to partake in the enhanced retail, entertainment and dining that is now more available due to the increased space available within the terminal. Of course, the proposed model is not without its challenges, with some of the more obvious ones including: • The sharing of data between entities, something that is challenging the industry today • Separation of passengers once screened, which will have a strong influence on the location and layout of the pods in the terminal • The need for technology to be increasingly passive, such as biometrics and personnel screening, so that passengers don’t have to behave in a certain way – standing with arms above your head, for

instance – in order to compensate for the technology’s limitations. The FOAT methodology allowed us to draw out these challenges and identify where a pilot can be most effective in challenging today’s technology and infrastructure. This, in turn, provides direction on what needs to be changed in order to become future ready and ultimately realising the airport of the future. The GVK-Arup FOAT event resulted in an innovative yet practical co-created idea – an idea that met GVK’s intent to be future ready in the next five years and delivered on their priorities of delivering a zero-queue terminal, reimagining retail, entertainment and dining, designing the future terminal – one space, multiple uses and cost efficiency. This shows that when ambition is supported with a structured and tailored methodology like Arup’s FOAT, the industry can start becoming future ready, today. APA www.aci-apa.com


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PASSENGER FACILITATION

People pleaser All images courtesy of Gensler/WanSoon Park.

Gensler’s Keith Thompson and Terence Young and Heerim’s Byungkoo Lee tell us more about the concepts behind the design of Incheon International Airport’s impressive new Terminal 2.

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s you would expect from an airport whose name is synonymous with top quality customer service, Incheon International Airport wanted its new Terminal 2 to be something special in terms of its look, feel, facilities, services offered and ease of use. High requirements indeed, but if the hugely positive feedback from passengers in the few months since Terminal 2 opened for business on January 18 is anything to go by, Incheon’s new high-tech facility is already proving popular with passengers. With 37 contact gates and 32 remote positions in Phase 1, the terminal is the airport’s first major expansion project in 17 years and boasts a number of ‘smart technology’ features such as 62 self-checkAPA Issue 2, 2018

in desks, self-bag drop and facial recognition systems that allow automated immigration processing. Initially equipped to handle 18 million passengers per annum, the 368,000sqm complex has its own airside hotel, sense-ofplace art work and other features that include an observation deck, napping rooms, kids play areas and others showcasing the best in South Korean culture.

THE DESIGN PROCESS

The airport announced a design competition for Terminal 2 on December 27, 2010, and Gensler was asked to join the Korean powerhouse Heerim as the collaborating design architect in what became the Heerim–Mooyoung–Gensler– Yungdo (HMGY) consortium.


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CONCEPTS AND INSPIRATION

We evaluated a variety of organisational concepts starting with some from an earlier ‘ideas competition’ and arrived at the ‘bent H’ layout, which offers the best balance between the needs of originating and connecting passengers while simultaneously meeting all the programme requirements. The inspiration behind the design was that of the phoenix, which is both a creature in Korean mythology and an indirect reference to reunification which remains a strong sentiment among most Koreans. Beyond that the design is a blend between looking into the future and looking to the past. The design of the passenger journey is an interpretation of a passenger walking through a traditional Korean painting. At the highest level is the cloud or mountain layer, the middle is the forest and village layer, and the lower levels represent a textured rocky coastline. Each layer in the building has a corresponding material colour and texture to reflect this painted inspiration. The design applies the patterns and local stone, wood and colours to create an authentic journey through Korea.

FUTUREPROOFING

Gensler’s role meant asking the question: What is the airport of the future? What does it mean for the region and the country and how do we see the journey changing into the next decade? The client, Incheon International Airport Corporation (IIAC), asked us to build upon the repeated success and awards of Incheon T1, and propel the passenger experience level to an even higher trajectory. We looked at everything from traditional mythology, painting and textiles to get inspiration while leveraging the innovations that Korean technology companies are pioneering. Gensler also led the design of the exterior envelope, creating a skin that maximises natural daylight.

CHALLENGES AND OPPORTUNITIES

One early hurdle we faced during the competition was fitting all the required aircraft including contact gates and remote stands on site while providing short walking distances between gates. With that solved, the next challenge came just after 30% of the basic design was submitted. The client, IIAC, requested a significant increase in the number of check-in positions, a change in the curvature of the headhouse, and relocation of the two security checkpoints to a more central location to aid in consolidation of some of the specialty retail offerings. In addition, the phasing of the programme meant that the north concourses and portions of the headhouse were to be deferred until a later date, yet the initial concept presumed a unified architecture. This required the headhouse to accommodate future expansion with a minimum of disruptions and maintain the architectural concept at Phase 1.

THE PASSENGER EXPERIENCE

The passenger experience is a fully integrated journey that includes retail and dining, educational moments as well as art and technology showcases.

www.aci-apa.com

PASSENGER FACILITATION

Working closely with Heerim, Gensler and Heerim collaborated on the design work that formed the basis of the design submittal. While the consortium partners were involved throughout, other key consultants included BNP (baggage), Hugh Dutton (curtainwall), Lea+Elliott (APM) and Landrum & Brown, SAP group (concession planning). The design competition attracted entries from seven internationally recognised architectural teams, and after each was evaluated by the jury, the HMGY team prevailed. Winning the competition, the HMGY team started the one-year basic design phase on July 25, 2011, with the goal of completing the project in time for the 2018 Winter Olympics at PyeongChang.

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PASSENGER FACILITATION During the design phase we identified the need for a variety of budgets and experiences at the airport: fast-serve and budget retail as well as fine dining and luxury retailers including Prada and Louis Vuitton. The outcome of our design studies was a vibrant boutique avenue as a venue for international boutique fashion houses and fine dining cafes overlooking ‘the avenue’ once a passenger passed through security. Large triangular gardens serve passengers and staff seeking a quiet place to relax and unwind and possibly enjoy a meal in view of the garden. The dining terrace includes a mix of high-end and mid-range priced food and retail serving western and Asian foods. Further out from the gates, where impulse purchases are more likely, are smaller convenience boutiques, fast-serve food and beverage options. These target tenants were planned in the early design phase, the actual selection of retail partnerships rest with the airport’s revenue development group and they were ultimately responsible for leasing a mix of retail, food and beverage.

INNOVATION

Two particularly unique areas stand out as innovative. The first is landside access across the airside to an observation deck via an internal bridge spanning the airside retail district. This space serves two functions: to allow non-passengers to view APA Issue 2, 2018

the operational airfield and post security activity in the concourse, and to provide educational entertainment. The gallery space showcases a model of the plans for the entire Incheon airport complex, a children’s play zone, an educational display showing the baggage system, a VR ride that takes the viewer through the baggage system, and a series of dioramas dramatising stories from staff about the history of Incheon airport. This space becomes a gathering place to learn about the past and future of the airport and feel the size of the community of travellers, staff and airlines. The second stand out experience is the integration of art throughout the building. Moments such as the three-story vertical core with the Korean alphabet; the migrating birds leading travellers to the observation deck; the sculptural information desks; and the reflective globes in the garden create an energy of curiosity and wonderment. Kids stop and play, people take selfies, and workers and staff find a place to recharge.

ABOUT THE AUTHORS

Keith Thompson is Gensler’s firmwide aviation and transportation practice area leader and Terence Young is a design director with the company. Byungkoo Lee is an executive vice president with Heerim.

APA


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INDUSTRY NEWS

Easy does it! Airbiz managing director, Greg Fordham, tells Asia-Pacific Airports more about the company’s new Express Access Swing intelligent (EASi) Gates concept.

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magine flying without waiting at the departure gate. What if you could browse the shops, have a meal or relax in your airline lounge until it was time to board? What if a self-driving vehicle was waiting for you, ready to transport you directly from the terminal to your aircraft? Express Access Swing intelligent Gates – EASi Gates – is a new concept developed by Airbiz that could deliver this experience. Evolving out of research into smart bussing for low-cost airlines, EASi Gates are now considered to be an innovative low-cost alternative to conventional expensive long concourses or piers. Passengers using EASi Gates are transported via an autonomous vehicle APA Issue 2, 2018

along an elevated structure above the apron at the sill height of the aircraft. A simple, hydraulically operated ‘gang plank’ integrated with the aircraft docking guidance system enables them to board their flight directly from the autonomous vehicle. Similar to a ‘people mover’ station, a dual doorway system at the gate provides a securely controlled pathway for departing and arriving passengers. The space under the elevated structure can be used to park the aircraft tug and other servicing vehicles, while apron lighting, aircraft docking guidance systems and other facilities can be mounted on the structure. A lightweight canopy can provide weather protection over the link between


ASIA-PACIFIC AIRPORTS MAGAZINE

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INDUSTRY NEWS

the autonomous vehicle and aircraft and even extend over the forward aircraft servicing zones. Airports will find that installing EASi Gates enables them to minimise their capital investment and operating costs. At the outset, the concept requires no walls, moving walkways, airconditioned spaces, toilets, gate lounges or other facilities â&#x20AC;&#x201C; nor does it require specialised equipment, such as buggies, to assist passengers with mobility constraints. Airports will also be able to increase flexibility in their operations. Swing gates will be possible without multiple level concourses and complicated corridors, as the autonomous vehicle facilitates the swing between international and domestic operations. Airlines will be able to keep their staff in the main terminal building rather than scattered throughout long

concourses, and staff will not be required at the gate to facilitate the boarding process. Passengers can remain in the main common departures retail area until it is time to board the aircraft, meaning more dwell time, less walking and decreased stress. The autonomous vehicles provide weather-protected access to the aircraft, and no safety or security issues by not having passengers at ramp level. EASi Gates hold the potential to increase safety and efficiency for airports and airlines, while decreasing cost and creating a superior experience for passengers. Airbiz has developed and rigorously tested the concept for fatal flaws. A number of airports have shown significant interest in further development of the concept to suit their particular needs.

APA

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SECTION TITLE INDUSTRY NEWS

WBP PROFILES

AEROTEL OPENS IN GUANGZHOU BAIYUN’S NEW TERMINAL 2 Guangzhou Baiyun International Airport’s impressive new Terminal 2 boasts its own transit hotel courtesy of Plaza Premium Group’s 57-room Aerotel Guangzhou. The group’s sixth hotel in its network and first in China, Aerotel Guangzhou – operated in collaboration with Hangwan Hotel Asset Management Company of Guangdong Airport Authority – offers double, solo and solo plus rooms to ensure that it caters to different size groups. While “flexible hourly-booking options” are designed to make reserving a room easy for potential customers either while they are at the airport or prior to arriving in Guangzhou. Plaza Premium Group Aerotel notes that each room is fitted with “quality bedding, powerful showers, bottled water, towels, slippers, a hairdryer, cable TV as well as complimentary Wi-Fi.” A Library Lounge is also available to provide refreshments, TV and reading materials. “We are very excited about our first Aerotel in China and are working closely with Hangwan Hotel Asset Management Company of Guangdong Airport Authority to create a comfortable transit experience for both international and local travellers in the new Guangzhou airport terminal,” enthused Song Hoi-see, founder and CEO of Plaza Premium Group. “Guangzhou Baiyun International Airport is the third busiest airport in China. I’m humbled with the opportunity given to Plaza Premium Group in creating a new airport experience. “With Plaza Premium Group’s 20 years of experience in shaping airport hospitality around the world, we look forward to sharing our global expertise and resources in enhancing travel experience in China.” APA Issue 2, 2018

DAIFUKU CO LTD (JAPAN) Location: Tokyo, Japan Contact: Adam Matheson, executive general manager E: adam.matheson@daifukubcs.com W: www.daifuku.com/jp Daifuku Airport Technologies (ATec) provides a broad range of solutions for airports and airlines, including baggage handling systems, self-service software and hardware solutions, baggage screening systems, specialised sortation control, ULD handling, software and controls and operational intelligence solutions. The business spans globally in collaboration with its group affiliates in Japan, the US, UK, Malaysia, Australia and New Zealand. DFS Group Limited Location: Kowloon, Hong Kong Contact: Jim Beighley, executive vice president, strategy and business development E: jim.beighley@dfs.com W: www.dfs.com DFS is the world’s largest company focusing on luxury retailing in the travel industry. With operations in over 55 airports globally, DFS has extensive knowledge and experience in the retailing of luxury brands in the airport environment. With its corporate head office base in Hong Kong, the company is ideally placed to aid with the development of airport retailing and other nonaeronautical revenue sources throughout the ACI network.

APA


Asia-Pacific Airports - Issue 2, 2018  

• In focus: Passenger facilitation • Airport profile: Osaka’s airport system • Review: ACI Asia-Pacific’s 13th Regional Conference • Plus: I...

Asia-Pacific Airports - Issue 2, 2018  

• In focus: Passenger facilitation • Airport profile: Osaka’s airport system • Review: ACI Asia-Pacific’s 13th Regional Conference • Plus: I...

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