Asia-Pacific Airports - Issue 3, 2020 by Asia-Pacific Airports Magazine

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

The new normal: Living with COVID-19 In the spotlight: Canberra Airport Special report: Resuscitating commercial revenues

Issue 3, 2020 www.aci-apa.com

Design & Build: Delhi Noida International Airport Plus: Investor appeal of airports & Industry news

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Asia-Pacific Airports Issue 3, 2020

6 View from the top Director general, Stefano Baronci, reflects on ACI Asia-Pacific’s efforts to support the region’s airports through COVID-19 and help reboot aviation as the global economy struggles to get back on track.

8 ACI Asia-Pacific news Communications manager, Samantha Solomon, rounds-up the latest news and developments from ACI Asia-Pacific.

The new normal: Living with COVID-19 In the spotlight: Canberra Airport Special report: Resuscitating commercial revenues

Issue 3, 2020 www.aci-apa.com

Design & Build: Delhi Noida International Airport Plus: Investor appeal of airports & Industry news

Published by

12 Under the radar How is Australia’s capital city gateway, Canberra Airport, faring in what is turning out to be the toughest ever year for aviation? Joe Bates investigates.

16 Risky business Lufthansa Consulting’s Catrin Drawer and Andreas Jahnke consider what the impact of COVID-19 is likely to be on the investment appeal of airports across the globe.

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CONTENTS

The official publication of ACI Asia-Pacific

ASIA-PACIFIC AIRPORTS MAGAZINE

CONTENTS 20 In the shop window Paccaya Resources CEO, Andrew Ford, talks to ACI Asia-Pacific’s head of communications and events, Jeannie Wong, about the challenges of resuscitating commercial revenues at airports.

24 Time to take-off Subhas Menon, director general of the Association of Asia Pacific Airlines (AAPA), argues that more needs to be done to reboot aviation and let the world fly again.

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 3, 2020

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

26 Delhi Noida International Airport Construction of a second Delhi airport is expected to commence in the second half of 2021 if financing is secured.

28 Industry news Technology-driven solutions take centre stage in the latest news update from ACI’s Asia-Pacific and global World Business partners.

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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.

SAVE THE DATE

2020 ASQ CUSTOMER EXPERIENCE CELEBRATION WEEK 26-30 October, 2020

Celebrate the achievements of 2019 ASQ awards winners and applaud outstanding efforts by ACI members who continue to invest in customer experience and listen to the voice of their customers.

ASQ awards represent the highest possible industry accolade for customer experience.

ASIA-PACIFIC AIRPORTS MAGAZINE

VIEWPOINT

VIEW FROM THE TOP Director general, Stefano Baronci, reflects on ACI Asia-Pacific’s efforts to support the region’s airports through COVID-19 and help reboot aviation as the global economy struggles to get back on track.

he restart and recovery phase for aviation is proving to be an uphill battle, a situation not helped by constantly changing travel restrictions and growing fears about a new wave of the pandemic that has already cost over 900,000 lives globally and virtually brought the world as we knew it to a standstill. Our ongoing response to the pandemic, of course, includes doing all we can to help and support our members through the crisis. It has been more than three months since the ACI Asia-Pacific COVID-19 Task Force produced its initial guidance document for the recovery of the airport sector. This was shortly followed by the ICAO Council’s Aviation Recovery Task Force (CART) Take-off guidance. Yet, well into the latter half of the year, travel is still significantly down with few signs that governments are ready to change their positions on lifting travel restrictions or quarantine requirements. In the face of this situation, our team has deployed a two-pronged approach to advocacy efforts with governmental agencies and consumer-confidence building activities.

TRAFFIC FORECAST

We are in uncharted territory, and with so many variables and no signs yet of a COVID-19 APA Issue 3, 2020

vaccine, it is almost impossible to know how long the current crisis will last. However, based on our latest analysis, ACI now forecasts that global passenger traffic volumes are not expected to recover to 2019 levels before 2023. And our data indicates that the markets which rely on significant volumes of international traffic might not recover until 2024. Specifically, for our region, ACI’s latest analysis predicts that passenger numbers in Asia-Pacific and the Middle East will decline by 55% and 60% respectively in 2020. This is all very different to our early year forecast made prior to the pandemic, when we expected that Asia-Pacific alone would handle close to 3.5 billion passengers in 2020. The revised full year estimate for AsiaPacific now predicts that just over 1.5 billion passengers will pass through its airports in 2020 – an unprecedented decline of around 1.9 billion travellers. Sadly, the Middle East will not fare much better, as we now expect it to handle just 170 million passengers in 2020 – a significant 250 million less than the 420 million passengers we predicted would be welcomed by its airports in our pre-COVID forecast. When we look at airport revenues, a direct reflection of traffic, they are forecasted to decline by approximately $27 billion in the

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QUARANTINE AND TRAVEL RESTRICTIONS

This leads me to assure you that we are actively tackling the biggest barrier to recovery: quarantine measures. These unilateral measures are not only severely hampering the restart but also contributing to the worsening economic situation, as described above. ACI Asia-Pacific is urging governments to replace quarantine requirements with testing and contact tracing protocols, at least between low-risk countries, where the virus situation is under control and the risk of importation is low. Together with ICAO we are widening our consultation with the regional offices of the World Health Organization to ensure that countries know that there are alternative safeguarding measures that they can take that can revitalise the sector, ultimately boosting jobs and national economies. We recognise some states are taking steps in the right direction by easing quarantine requirements. However, they need to be accompanied by relaxing, and ultimately lifting, travel restrictions.

RESTORING PASSENGER CONFIDENCE

Another focus area for us has been on finding ways to support our members help restore the public’s confidence in air travel.

It is safe to say that COVID-19 has changed the world to such an extent that ‘health’ has now been added to the key priorities of ‘safety’ and ‘security’ for all airports, and ACI has responded to the new reality by launching its Airport Health Accreditation programme. This fully-online process requires airports to document the health measures that they have implemented, which then get checked against the ICAO CART recommendations. We worked closely with ICAO to ensure they fully supported our new programme, which I am delighted to say has been embraced by airports across our region. Indeed, I am pleased to share that Incheon (South Korea), Velana (the Maldives) and Mumbai-Chhatrapati Shivaji Maharaj (India) have become our first accredited airports and they will soon be joined by another 50, including 25 which are currently finalising their accreditation processes. If your airport hasn’t already engaged, I encourage you to do so as part of the recovery efforts.

YOUNG EXECUTIVE AWARD

To end on a brighter note, my team and I are proud to announce that the application process for the Young Executive Award for 2021 is now open. Our flagship programme is specifically designed to recognise and develop talent in our region. We believe that it is a great opportunity for young, upcoming and aspiring leaders to take a wider look at the industry and come up with solutions for today’s issues. It perhaps won’t surprise you to learn that the topic for this year's competition relate to the impact of the pandemic on airports. As usual, we have assembled a stellar panel of judges, which this time out include leaders from Sharjah Airport, GMR Hyderabad, Changi Airport International and an internationally-recognised medical scientist from ICAO. In closing, I would like to thank you for your continued support for our association’s activities as we continue to secure our sector’s future. Ciao! Stefano APA

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Asia-Pacific region and $8 billion in the Middle East by the end of 2020. Clearly the industry cannot sustain such heavy losses in the long-term. These are indeed challenging times, yet despite today’s hardships, investment continues, albeit at a slower pace and in a measured manner. Going forward, we anticipate that the demand for new airport infrastructure will gather pace as passenger numbers begin to return, and that private investors will increasingly fund the development of new facilities. Our Regional Economic Committee is in the process of scoping a relevant industry study to support policy recommendation in these areas.

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Regional update Communications manager, Samantha Solomon, rounds-up the latest news and developments from ACI Asia-Pacific.

AIRPORT HEALTH ACCREDITATION SUCCESS South Korea’s Incheon International Airport had reason to celebrate in August when it became the first airport in the Asia-Pacific region to become accredited under the recently launched ACI Airport Health Accreditation programme. “Receiving the ACI Airport Health Accreditation is the result of the best efforts of 70,000 airport workers who are at the forefront of the national quarantine and the excellence of Korea’s response to COVID-19," said Bon-Hwan Koo, president and CEO of Incheon International Airport Corporation. “Passengers’ safety is our highest priority and we will continue to make every effort to build a thorough quarantine system so that passengers can use our airport with confidence.” ACI’s Airport Health Accreditation programme assists airports by assessing new health measures and procedures introduced as a result of the COVID-19 pandemic in accordance with ICAO Council Aviation Recovery Task Force recommendations. APA Issue 3, 2020

Areas of assessment for accreditation include cleaning and disinfection, physical distancing (where feasible and practical), staff protection, physical layout, passenger communications and passenger facilities. “It gives us great pleasure to announce that Incheon is the first airport in our region to successfully complete the online accreditation process for the Airport Health Accreditation programme. Passengers travelling through or to Seoul, Korea, can rest assured that Incheon is prioritising health and safety in a measurable, established manner," enthused ACI AsiaPacific’s director general, Stefano Baronci. Incheon was quickly followed in the accreditation stakes by Velana International Airport in the Maldives and Mumbai–Chhatrapati Shivaji Maharaj International Airport in India. Talking about Velana’s AHA success, Gordon Stewart, CEO and managing director of Maldives Airports Company Ltd (MACL), stated: “This achievement proves that the health and safety measures we are practising at VIA are in alignment with international

ASIA-PACIFIC AIRPORTS MAGAZINE

PRESIDENT Seow Hiang Lee*

FIRST VICE PRESIDENT Emmanuel Menanteau

(Changi Airport Group Pte Ltd, Singapore)

(Cambodia Airports, Cambodia)

SECOND VICE PRESIDENTS DE HE Ali Salim Al Midfa SGK Kishore* (Sharjah Airport Authority, UAE)

(GMR Hyderabad International Airport Limited, India)

SECRETARY-TREASURER Sheikh Aimen bin Ahmed Al Hosni*

IMMEDIATE PAST PRESIDENT Tan Sri Bashir Ahmad Abdul Majid**

(Oman Airports Management Company, Oman)

(GMR Airports Limited, India)

REGIONAL BOARD DIRECTORS Chang Wan Son

Mohamed Yousif Al-Binfalah (Bahrain Airport Company SPC, Bahrain)

Kjeld Binger* (Airport International Group, Jordan)

Akihiko Tamura (Narita International Airport Corporation, Japan)

Yoshiyuki Yamaya (Kansai Airports, Japan)

Geoff Culbert* (Sydney Airport, Australia)

Kejian Zhang

Gert-Jan de Graaff

(Guangdong Airport Authority, China)

(Brisbane Airport Corporation PTY Limited, Australia)

best practices, ensuring the health and safety of our passengers, employees and other airport stakeholders. “To have successfully passed the strict audit by ACI demonstrates that our airport is a safe place to visit. This achievement will no doubt build passenger confidence and provide a timely boost to Destination Maldives.” The ICAO-supported Airport Health Accreditation programme, launched in July, has been positively received by airport operators globally, with more than 200 applying for the accreditation process to date. The fully-virtual application process is open to ACI member airports of all sizes globally across the regions.

(Korea Airports Corporation, South Korea)

Bon Hwan Koo (Incheon International Airport Corporation, South Korea)

Fred Lam* (Airport Authority Hong Kong, Hong Kong SAR)

WBP REPRESENTATIVE Greg Fordham (Airbiz Aviation Strategies Pty Ltd, Australia)

SPECIAL ADVISORS Suleiman Al Bassam

Yun Qin

(General Authority of Civil Aviation, Saudi Arabia)

(Shanghai Airport Authority, China)

Videh Kumar Jaipuriar

Jean-Michel Ratron

Delhi International Airport Ltd, India)

(Tahiti Airport, French Polynesia)

Xue Song Liu*

Nitinai Sirismatthakarn (Airports of Thailand, Thailand)

* WGB member

(Beijing Capital International Airport Co Ltd, China)

**Regional Advisor on WGB

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ACI ASIA-PACIFIC REGIONAL BOARD

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SHARJAH AIRPORT ACHIEVES CARBON NEUTRALITY Sharjah Airport has become the first airport in the Gulf Cooperation Council and the second in the Middle East to attain Level 3+ Neutrality status in ACI’s Airport Carbon Accreditation programme. The UAE gateway has made a firm commitment to ensuring its operations have a minimal impact on the environment while working towards reducing its carbon footprint and energy consumption. “By reaching carbon-neutral status, the highest status currently in the internationallyrecognised Airport Carbon Accreditation programme, Sharjah Airport is firmly positioning itself as an environmental leader in the region and beyond,” notes ACI Asia-Pacific’s director general, Stefano Baronci.

“We are grateful to the management team at Sharjah Airport for their continued commitment and active participation in ACI Asia-Pacific environmental initiatives and in support of working towards a new societal value.” Close to 60 ACI Asia-Pacific airport members have been accredited under this programme.

CALLING ALL YOUNG EXECUTIVES We are inviting applications for the 2021 edition of the ACI Asia-Pacific Young Executive Award. The annual research paper competition encourages entrants to contribute innovative solutions for current aviation industry issues. Riding on the issue that has dominated the year, this year’s topic is ‘Passenger Facilitation under Pandemic’. The competition has proven to be a rewarding experience for past winners, with many commenting that the programme encouraged them to explore issues that they never tackled in their every day jobs, learning new skills that benefited their airports on the way.

The winning Young Executive will receive a cash award of $1,000 and a complimentary scholarship for the Airport Operations Diploma Programme, an online self-study programme. Participation benefits more than just the participant as the prize includes an additional scholarship for a high potential employee to any one ACI Global Training Leadership and Management Professional Certificate Course, either virtual or in classroom. The competition information is available on the ACI Asia-Pacific website with a deadline of Friday, December 4, 2020.

GREEN AIRPORTS RECOGNITION 2021 Earlier this year, ACI Asia-Pacific recognised nine airports from across the region for their environmental efforts in water management in the 2020 Green Airports Recognition programme. Marking its fifth anniversary, the annual recognition programme is turning its attention to Air Quality Management in 2021. The initiative provides an excellent platform for ACI Asia-Pacific members to promote their environmental best practices to minimise

APA Issue 3, 2020

aviation’s impact on the environment. Programme details will be released in October. APA

314 accredited airports 47

159

in North America

in Europe

in Asia-Pacific

in Africa

in Latin America & Caribbean

Welcoming

3.9 billion passengers per year.

In countries across the world.

44.8%

Or of global air passenger traffic.

ASIA-PACIFIC AIRPORTS MAGAZINE

AIRPORT REPORT: CANBERRA

Under the radar How is Australia’s capital city gateway, Canberra Airport, faring in what is turning out to be the toughest ever year for aviation? Joe Bates investigates.

t is probably fair to say that Australia’s capital city gateway, Canberra Airport, goes under the radar compared to some of the country’s bigger and better-known airports. Indeed, the 3.3 million travellers that passed through its facilities last year meant that Canberra (CBR) was Australia’s eighth busiest airport for passenger traffic, handling a fraction of the 27.5 million and 26 million passengers handled at Sydney (SYD) and Melbourne (MEL) respectively. However, don’t confuse its size with a lack of ambition, because with the notable exception of 2020, traffic has been on an upwards trajectory in Canberra since 2015, and the trend has led to CBR opening new capacity enhancing infrastructure this year to ensure that it is better equipped to meet long-term demand. APA Issue 3, 2020

AIRFIELD SAFETY

On August 13, Canberra Airport celebrated the opening of its new Taxiway Bravo, which the airport’s head of aviation, Michael Thomson, notes completed a 14-month project to improve aircraft safety and reduce passenger travel times. “Taxiway Bravo aligns with our long-term vision as a world-class, small international airport to be as safe and efficient as possible and provide the best travel-experience we can help to facilitate, now and well into the future,” enthuses Thomson. CBR operator, Capital Airport Group, worked closely with Huon (the main contractor) and Spiire (superintendent on the project) to ensure that the new taxiway was delivered on time and on budget.

ASIA-PACIFIC AIRPORTS MAGAZINE

NEW SECURITY SCREENING SYSTEM

Another 2020 success worth noting is the installation of a new security screening system with technology from Rapiscan Systems (body scanners) and Smiths Detection (security machines) to further improve the screening of passengers and their carry-on luggage. Thomson says: “We have invested in the new technology as part of our ongoing improvements to enhance the passenger experience – without compromising on safety – and to meet new government regulations regarding security screening at airports. “They also allow for better utilisation of staff while increasing the security outcome for everyone. Whether it be for business or leisure, get back to flying through our COVID-safe Canberra Airport knowing that it is now even easier and even safer to reach your destination.”

IMPACT OF COVID-19 ON TRAFFIC

There is simply no denying that passenger numbers at CBR, like at most of the world’s airports, have suffered hugely as a result of COVID-19, and with travel bans in operation at six of Australia’s eight states and territories at the time of going to press, the next few months will be a struggle.

The impact of COVID-19 on Canberra Airport was almost instant, with passenger traffic dropping 98% in March/April as airlines scaled back services or ceased flying all together. Indeed, the airport went from handling 770 flights per week to double digits, and the lack of scheduled flights forced CBR to close its passenger terminal on April 15th and 16th. Things picked up in June with the return of a number of services to Sydney and Melbourne followed by Adelaide, Brisbane, Newcastle and Ballina/Byron Bay, but the closure of neighbouring Victoria’s borders in July and Queensland’s in August has once again hit passenger numbers. The situation led to the recent Saturday closures of the entire airport (August 22 and 29) and Thomson admits that more Saturday, and possibly Tuesday closures may lie ahead as Canberra Airport adjusts to the new normal of today’s COVID-19 impacted world. He is, however, in no doubt that traffic will return in the future and is quick to point out that CBR is doing all that it can to stay open and to keep people employed as it works hard to “reinvigorate domestic aviation travel”. “We are committed to the recovery of Australian domestic aviation and the importance it has for thousands of people’s livelihood and the economy,” insists Thomson. “Yet without a domestic aviation recovery plan in place there will be no Australian aviation and thousands more jobs will be lost. We need a national domestic aviation recovery plan."

NATIONAL EFFORT REQUIRED TO OVERCOME PANDEMIC

Thomson is calling on all governments within Australia to develop a national aviation recovery plan – a plan that adheres to health authority advice and one that allows people to travel based on a risk assessment and passengers meeting prerequisites for travel. He explains: “A national plan developed by the Federal Government and the Australian states and territories is therefore essential for the recovery of aviation and the thousands of jobs that rely on it.

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AIRPORT REPORT: CANBERRA

Canberra Airport’s head of projects, Zarko Danilov, says: “Around 150 people have worked tirelessly on this build to create a 1.6 kilometre taxiway that will enable large international aircraft – and domestic planes – to move more safely around the airfield. “It may just look like a large road to many, however, to build such a road capable of carrying planes in excess of 180 tonnes takes some serious engineering and a lot of hard work. “Taxiway Bravo eliminates the need for planes to cross the main runway (which is the current arrangement) and clears the path for more planes landing or taking off. In short, it makes the whole airfield safer and more efficient.”

ASIA-PACIFIC AIRPORTS MAGAZINE

AIRPORT REPORT: CANBERRA “A plan that enables the recovery of aviation will not only stimulate the economy through jobs directly in the aviation and tourism sectors but also all of the associated industries including hire cars, accommodation, retail, education and hospitality. “The plan should focus on establishing the environment required to re-start flights and the management of the risks of COVID-19 in accordance with health authority advice. “It should require travellers and all in the industry to meet prerequisites for travel and work.” Thomson has little hesitation in admitting that the pandemic has ensured a very hard year for Canberra Airport, all airport staff and for most businesses associated with the gateway. Like other airports, reducing its costs is now a top priority and Thomson notes that his staff have agreed to salary reductions, increased leave periods and in some cases accept redundancy packages to ensure that CBR is best positioned to survive the pandemic. Other cost cutting measures have included closing half of the domestic terminal and all of the international terminal and ceasing all unnecessary expenditure. Efforts to make CBR a safe environment for staff and passengers include becoming the first major airport in Australia to use thermal cameras for body temperature screening (EOS Australia); increasing the cleaning of high touchpoint areas across the terminal; APA Issue 3, 2020

providing touchless entry to the airport from the car park; and the now standard introduction of physical distancing measures and installation of hand sanitiser stations.

TRAFFIC TRENDS

The current global downturn in traffic makes it almost impossible to predict what the next couple of years will bring for CBR in terms of passenger numbers and route development. Prior to COVID-19, annual throughput at CBR was expected to almost treble to 9mppa over the next 20 years, meaning that the gateway wouldn’t need any major new infrastructure until the 2030s at the earliest. As a result, the airport’s master plan outlines plans to extend both the southern and western ends of the existing terminal in the 2030s to raise CBR’s capacity to 12mppa. For now, there is obviously no need to revise these plans as no decisions have to be made for at least a decade and it may be at least two years before traffic at CBR returns to 2019 levels. CBR is primarily a domestic O&D airport for Canberra, the neighbouring city of Queanbeyan and the surrounding region that includes the Australian Capital Territory (ACT) and much of south eastern New South Wales. In 2019, CBR was served by six airlines between them operating non-stop services to six domestic and two international destinations – Doha and Singapore.

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“We play a significant role in the Australian airport system as the gateway to the nation’s capital facilitating travel for business, tourism, defence and political engagement in the capital,” says Thomson, “We also provide a retail hub for passengers and their around two million ‘meeters and greeters’ each year. “Over the years Canberra Airport has developed and changed considerably. When the Snow family purchased the aerodrome in 1998, Canberra Airport was an airport which did not befit its status as a gateway to the National Capital of Australia and was in need of a significant infrastructure upgrade. “Today, we have world-class terminal facilities and can accommodate all types of aircraft other than A380s. We began as a small domestic airport and now we are an international hub with Qatar Airways and Singapore Airlines opening Canberra to the world.” Longer-term, CBR harbours ambitions to handle services to Bangkok, Dubai, Mainland China, Hong Kong, Hawaii, Los Angeles, Tokyo and New Zealand. Traditionally the top three airlines at CBR are Qantas (including QantasLink), Virgin Australia and FlyPelican with Melbourne-Canberra being the most popular route by some way, followed by the Sydney, Brisbane, Adelaide and Gold Coast in terms of market share.

APA

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AIRPORT REPORT: CANBERRA

POSITIVE MENTAL ATTITUDE

In times of such negativity, can Thomson give us three reasons why he is confident that the aviation industry, and CBR, will recover from COVID-19 and see passenger numbers once again equal and eventually surpass 2019’s levels? “Aviation will recover, it is just a question of when,” states Thomson, listing the industry’s historical resilience to adversity, its importance to the global economy, and peoples’ desire to travel as his three reasons. “The world has seen global pandemics and other disruptions to aviation before and aviation travel always returns,” explains Thomson. “This is especially relevant for a country such as Australia where the vast distances between cities and the rest of the world make air travel necessary. “Make no mistake about it, aviation is critical to the world’s ability to function on many levels. People and practices will adapt, and we will find ways to live with COVID-19. We will see aviation return as the COVID-19 related risks associated with travel are managed appropriately as opposed to blanket closures of borders. “Not everything can be achieved in business, and certainly not in tourism, via a video link. Face-to-face meetings and direct human engagement for families and friends is essential because we are human. “Finally, there is still demand. People want to travel. They just need to know that they can travel in a COVID-19 safe way – and that depends on authorities taking action and showing strong leadership to allow a risk managed approach to the problem and not blanket closures of borders.” While Australia considers the merits of a national aviation recovery plan to help it emerge from COVID-19, you can be assured that Canberra Airport will continue to do all it can to ensure that it is a safe and friendly place to use whatever the purpose of your visit.

ASIA-PACIFIC AIRPORTS MAGAZINE

INVESTING IN AIRPORTS

Risky Business Lufthansa Consulting’s Catrin Drawer and Andreas Jahnke consider what the impact of COVID-19 is likely to be on the investment appeal of airports across the globe.

oes COVID-19 mean that airports have finally lost their mantra of being a safe, longterm investment opportunity for investors? The short answer is ‘no’, because airport investments have never been a “sure thing” with a guarantee of return. In fact, most of the world’s airports aren’t profitable and never have been. Indeed, the latest economic data by ACI World shows that around a quarter of all airports worldwide fail to generate enough money to cover their operating and capital costs. Admittedly, usually the smaller and secondary airports, but even some hubs do not always manage to generate profits. And analyses by air transport specialist, Andy Ricover, presented at GAD 2019 shows that there is no correlation between profitability and an airport’s ownership structure. APA Issue 3, 2020

The fairy tale of the fabulous wealth of private airport investors is simply not true. It has been nourished by spectacular deals, billions of dollars in profits after a few years of holding, and exaggerated valuations based on market-driven (but not always economically justified) EBITDA multiples. It is also true that too much inexperienced money – trusting in the supposedly crisis-proof and constantly growing airport investment – has driven prices up, and that trend is now almost certainly over. The COVID-19 crisis has suddenly shown that an entire industry can be economically destroyed in days. Such a crisis was foreseeable, but hardly any airport has mitigated the risks in terms of processes or, more importantly, with its cost and capital structure – neither private airports, nor those in government ownership.

ASIA-PACIFIC AIRPORTS MAGAZINE

â&#x20AC;˘ Airports have never been a risk-free investment class â&#x20AC;˘ The COVID-19 crisis will accelerate airport sales and lower market prices â&#x20AC;˘ Not all airports will recover from the crisis; it is important for new investors to choose the right airports and manage them actively.

It is simply not enough to replace public money with private capital from pension funds to generate better returns. Passengers and airlines have the choice of which airport they want to depart from and where they want to fly to. Only a few airports are lucky enough to be located in very attractive destinations with large catchment areas. And even then, they are subject to competition from other airports (for example, Beijing, Shanghai or Tokyo). Even if an airport has developed well over the past few decades, at some point it will reach its limits of growth and then be exposed to governmental decision-making processes, environmental influences and the possible escape of passengers from the crowds. So, what does it take to manage an airport profitably? Some airports are managed as if it were enough to build a runway and a terminal. The airlines would bring the passengers and with them come the revenues from handling. Admittedly, these aeronautical revenues still account for 55% of the revenues globally, according to ACI. However, our analysis based on the ACI figures, also show that, on average, airport costs exceed their aeronautical income. Aeronautical revenues per aircraft movement (ATM), for example, only cover about 75% of the operating costs.

The possibilities to increase the fees for aircraft and passenger handling are limited due to government regulation and cost reduction pressure from airlines. Without additional income from shops, restaurants, parking etc, an airport cannot survive. These non-aeronautical revenues, however, demand prerequisites: attractive shopping offers, a pleasant atmosphere, short waiting times and good processes, a large number of flight connections and attractive transfer options. Such an airport ecosystem of airlines, shops, restaurants, hotels, suppliers, service companies does not develop on its own; it has usually grown over decades. It requires active promotion, partnership contracts, joint decisions, involvement of politicians and tourism promoters, marketing at home and abroad. The system partnership between the airport and its suppliers and service providers also ensures distribution of sales, costs and thus risks, and is therefore a key element in cushioning risks and ensuring cost efficiency. Finally, planning and foresight are the ingredients that ensure that an airport is never too large or too small to serve the number of passengers comfortably and efficiently. The coronavirus crisis has destroyed the sensitive airport ecosystems, like a fire destroys the rainforest ecosystem. Ground handlers are insolvent and consequently thousands of jobs have been lost. Cleaning companies, caterers, restaurateurs and shop owners, security companies, ticket www.aci-apa.com

INVESTING IN AIRPORTS

Key take aways

ASIA-PACIFIC AIRPORTS MAGAZINE

INVESTING IN AIRPORTS

agencies and check-in companies are bankrupt or threatened by bankruptcy. And even the airlines are threatened by their collapse and have reacted with flight schedule reductions. Hardly anyone expects air travel demand to even come close to pre-crisis levels before 2023. And just as 9/11 changed the processes at airports with regard to security checks forever, the COVID-19 crisis will also leave its mark on airports in the long-term. More protection measures, social distancing and health checks will require investments in new technologies, massively reducing passenger throughput and overall efficiency.

REBOOTING AVIATION

But how do you actually rebuild an ecosystem, especially in a short-term? How do you balance the need to provide services for airlines and passengers on the one hand, and the losses to be expected during the transition phase (maybe until 2023) on the other? And how do you manage to convince airlines to fly to your own airport? Why should anyone fly to a city’s secondary airport now if the hub has the route network and the capacity? How can a regional airport prevail against a neighbouring airport? What role will politicians play, and how many airports are they planning to subsidise over the next few years? Why not open one regional airport and mothball three or close them permanently? It has never been more important for potential airport investors to choose the right airport. The one with the best ‘recovery’ chances and the strongest growth opportunities. There will be a choice in the coming years. Airports that have already been privatised belong de facto to the debtors. Usually, airport takeovers are financed by a small amount of equity and a larger amount of debt. Without income, as is currently the case, these debts can no longer be serviced. APA Issue 3, 2020

The equity investors therefore have to forget dividends and eventually even have to inject additional capital – a nightmare for pension or sovereign funds. That is why they are now calling for the state to help. But why should a government use taxpayers’ money to take on the financial risk that the private investor deliberately took? Therefore, some investors will inevitably be looking for the exit door.

CHALLENGING MARKET

Airports owned by governments are still (partially) public property, on the other hand, and currently accumulating massive debts that will have to be paid back at some point. This narrows the financial scope for other, far more urgent investments, such digital infrastructure, schools, business stimulation. People want to travel. However, their own job, their children’s education, etc are much more important. So why should a state or a municipality own shares in an airport that might be loss-making? It is therefore to be expected that the number of airport sales offers will increase. The money to buy is still there, as is the need for ‘safe’ investments. We expect that the sometimes completely exaggerated valuations for airports or their concessions will fall to a crisis-adjusted, adequate level. Investors have learned what has actually always been clear: airport investments are not a risk-free asset class. The risk must be priced in and actively managed. Passive investors, who relied on existing airport management for lack of their own expertise, have learned their lesson. And those investors who listen to good advice, select the right airports and actively manage them throughout the lifecycle, will APA be successful. About the author Catrin Drawer is an associate partner at Lufthansa Consulting, where Dr Andreas Jahnke is managing director.

More than 200 airports are already signing up

Airport Health Accreditation Programme

A merit-based programme for airports to be recognized by passengers, staff, regulators, and governments for prioritizing health and safety measures.

Increase the travel confidence in your passengers. visit aci.aero/AHAAccreditation

Congratulations to Incheon International Airport, the first accredited airport in the ACI Asia-Pacific region!

ASIA-PACIFIC AIRPORTS MAGAZINE

COMMERCIAL REVENUES

In the shop window Paccaya Resources CEO, Andrew Ford, talks to ACI Asia-Pacific’s head of communications and events, Jeannie Wong, about the challenges of resuscitating commercial revenues at airports.

t goes without saying the COVID-19 pandemic has crippled the global economy and devastated the aviation sector at large. With the sector trying hard to restart and recover from the pandemic, companies are faced with a multitude of decisions on how best to resuscitate and resume commercial activities. Paccaya’s Andrew Ford agrees with ACI’s anticipation that aviation's recovery will be gradual and in phases as passenger traffic returns to airports across the region. In fact, the latest projections indicate it will take four to seven years to recover to 2019 levels. In the face of this sobering reality, how can airports ramp-up operations and business activities in order to protect and, eventually, revert to growing commercial revenues?

APA Issue 3, 2020

Ford opined that airports will need to resize and reshape their commercial businesses, but in the immediate term must address these key areas: 1. Health & Safety – Re-assure passengers that the airport is a safe environment to enter 2. Foster evolving programmes as passenger numbers increase – bring passengers to the airport 3. Business maximisation of the current commercial platform 4. Digitisation of airport commercial businesses (both front and back-of-house) 5. Longer-term resizing and reshaping of the business. Obviously, for the area of health and safety, airports are to a certain degree,

ASIA-PACIFIC AIRPORTS MAGAZINE

Take out some of the unnecessary clutter and create visual experiences in F&B outlets and duty free shops In addition to these basic fundamentals, there are opportunities for airports to collaborate with their business partners in the other areas with a view to restart and collectively safeguard commercial revenue opportunities from future uncertainties. JW: COVID-19 was certainly the unexpected catalyst, prompting many operations to go digital. Indeed, we are already hearing of operations and business transactions at airports shifting to go frictionless, touchless, contactless, cashless, digitising offerings, etc. But part of the shopping experience is to be able to see, touch or try out products. So, what can retailers do to increase dwell time under such circumstances? How will going touchless impact some of the newer and larger airports which pride themselves in having so many square metres of gross floor area for retail shops and outlets? And does this mean airports will instead need to provide more back-of-house, storage areas for shops to stock up in order to meet e-commerce demands? AF: Focusing on the current business is key at the moment – keep those expenses down and generate as much business/cash flow as possible during the ramp up. And take advantage of new opportunities! The increased amount of dwell time passengers will experience in the terminal – more time at the gate waiting to embark

is an opportunity to set up small gate duty free shops. There’s a great deal of research information coming back to us about how passengers want to avoid crowded shops, restaurants and bars, and also touching items unnecessarily – bathroom doors, check-in desks, touch screens, and even luxury brands in the shops. Some simply want to click, order, pay on their iPhone and collect the purchase from a service desk at the airport. As with the huge advances of virtual shopping in city centres, why not a virtual airport shop to order from? Large airports with a lot of space must use this space intelligently. Take out some of the unnecessary clutter and create visual experiences in F&B outlets and duty-free shops – customers may not want to touch items but they’re very happy to be entertained! Also, it helps spread people about in the shop or restaurant. Another key area is the digitisation of the airport’s back-of-house. Getting food and consumer goods from the airport delivery centre to the shelf goes through so many sets of hands! Perhaps now is the time to look at digitising the whole process of getting the product through the airport and to the customer? JW: What will be the key differences between larger airports and smaller airports in developing nations in being able to meet the new expectations and demands of digitisation? AF: Larger airports normally have a larger pool of skill sets and advisors to help, (a) drive the current business; and (b) plan for increased digitisation around the customer interface area and that of the airport’s supply chain. Smaller airports will need to find the outside advisors to help them with this specialised area of work. At Paccaya, and for airports, we’ve developed a complimentary roadmap to aide with improving business in the ramp-up of passenger flows – if any of ACI’s members wish to get a copy we’d be happy to send it to them by email. www.aci-apa.com

COMMERCIAL REVENUES

dependent on external factors and stakeholders, including local governments and health authorities. There are only so many health and safety measures they can implement unilaterally, and these need to be implemented in order to, (a) protect the health of airport employees; and (b) reassure passengers that airport businesses are safe to enter.

ASIA-PACIFIC AIRPORTS MAGAZINE

COMMERCIAL REVENUES JW: You have talked about the need for airports to share data and the desire to work in tandem with aeronautical teams. What are the benefits of doing so and what are your recommendations on how this can be achieved? AF: This is a very important area where airports can greatly improve the overall business. Driving aeronautical business is key to an airport’s success, and it also helps drive the second area, that of nonaeronautical revenues. He notes that airports should: 1. Ensure their aeronautical and nonaeronautical teams are sharing information about expected flights and load factors. The non-aeronautical team needs to know what to expect in the way of potential customers. 2. Share information in advance about expected flights and load factors with the airport concessionaires. The concessionaires can then ensure they have enough staff at key times, the right language needs, and in the right part of the terminal Also, they should prioritise income generation by ensuring the right assortment/offer is ready for the customer type coming through the airport. 3. As needs are changing, airports and concessionaires should ideally share information about changing traveller and nationality profiles. The big APA Issue 3, 2020

spending Mainland Chinese travellers when travelling are expected to be younger, keen on health and wellness products, keener on experiences and less keen on shopping, etc. “This type of information in important for both the airport and concessionaire to ensure the right offer is available for the expected key passenger/customer types,” says Ford. “Sharing data and communicating openly will help stimulate increased sales and an improved offer for the customer coming through the airport.” He concludes: “And this leads us to the overall airport imperative – to resize and reshape their business. It’s a huge task but needs to be done as airport businesses in the future will be fundamentally different from what they were pre Covid-19. “Passenger will travel differently owing to health concerns, will shop differently and probably spend less, will eat in new ways at the airport, for example, and all of this needs to be reviewed to build new business plans for the airport.” About Paccaya Resources Paccaya Resources, an ACI Asia-Pacific’s World Business Partner (WBP), is a specialist advisory firm that assists airports to improve their non-aeronautical commercial performance.

APA

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New smartphone app which provides passengers with information about the health measures in place at individual airports around the world. Developed in partnership with members of ACIâ&#x20AC;&#x2122;s Airport IT World Standing Committee, Check & Fly app provides a way for airports to communicate to passengers directly to help them plan to travel, meet any requirements, and make their journeys smoother and more efficient.

The Check & Fly app is available on the Apple App Store. aci.aero/checkandfly

ASIA-PACIFIC AIRPORTS MAGAZINE

AIRLINES

Time to take-off Subhas Menon, director general of the Association of Asia Pacific Airlines (AAPA), argues that more needs to be done to reboot aviation and let the world fly again.

irlines look set to record net losses of $84 billion this year. Costs are declining but airlines are burning cash by the millions

every day. International revenues are not expected to reach 2019 levels until at least 2024. Tourism is expected to decline by at least 80%. The entire aviation system is in shock. The silver lining is that all stakeholders in the aviation sector are of one voice calling for its urgent restart. This crisis is not of aviation’s making. Neither is it the only sector affected. Aviation is an enabler of many things, especially global trade, tourism, supply chains and jobs. One job in aviation generates 25 others in the wider economy, while trade and global supply chains depend predominantly on aviation. Aviation can also drive the global recovery. Yet more than six months into the pandemic, most international flights remain grounded by border closures even as lockdowns are gradually eased. Hopes that international air travel would gradually return in the second half of 2020 proved premature as governments direct attention to fighting resurgent domestic infection. Whilst there have been discussions about air corridors, travel APA Issue 3, 2020

bubbles and green lanes, such initiatives have so far failed to take off due to their impractical requirements and inability to scale up to meet passenger expectations. Progress is being made on testing, contact tracing, wearing of masks and social distancing, which are now being implemented by governments across the world. Such measures are also being applied in the context of international air travel, but these are neither consistent nor co-ordinated amongst States. The last time there was no civil aviation was in 1945. Then, the world created ICAO to start civil aviation. As aviation ground to a halt in 2020, ICAO, which celebrated its 75th anniversary on August 15, again came to the rescue with guidance on aviation public health measures. ICAO issued its ‘Take Off’ Guidance in June 2020 to anchor co-ordinated efforts to restart international air travel. However, progress has been negligible as governments are preoccupied with community transmission. We cannot wait indefinitely to reboot aviation. It will take time for COVID-19 to abate and for the world to discover a vaccine or cure. We must learn to adapt to the ‘new normal’ and recreate an aviation network by applying science to mitigate identifiable risks to travellers and crew.

ASIA-PACIFIC AIRPORTS MAGAZINE

APA

www.aci-apa.com

AIRLINES

Cross-border flights can only resume in earnest when governments act in concert to apply measures that are safe but practical to facilitate rather than deter travel. Onerous quarantine requirements applied on both ends of a flight, are a primary impediment to travel. The public health response must reassure travellers that standardised and sensible precautions based on prudent medical advice have been adopted without adding unproven or inconvenient measures like quarantines or caps on visitor numbers. The current patchwork of blanket containment measures for overseas travel, only serve to suppress demand while proven and pragmatic policies will restore confidence in air travel. Europe has allowed cross border travel without quarantine since June 15 and more recently with third countries. Applying a 14-day record of cases per 100,000 of population (given that people can be infectious for up to 14 days), the European Centre for Disease Prevention and Control (ECDC) has classified countries according to their epidemiological profile for virus containment. Countries that have the same or lower level of cases as well as adequate public health facilities including testing, contact tracing and health care, are the ones with whom Europe is resuming cross border travel. Such objective basis to address identifiable risks to allow flights to resume between pairs of States, could be a way

forward. ACI and IATA recommend that countries accept a negative COVID-19 test 48 hours before travel instead of quarantines. Surveys of frequent travellers indicate that travellers are ready to fly when the virus spread is contained. They are also prepared to put up with testing, screening, face masks and continuous sanitisation during the travel process, to fly again. But they express a strong aversion to quarantine requirements. Since Asia-Pacific first encountered COVID-19 and is first to witness containment, it is logical that flights could restart in the region. If governments could prioritise jobs, tourism and trade to resume aviation, it will mark a turning point for global mobility as well as economic and social development in the region. Besides, how long can governments prop up the industry? Better to allow airlines to earn their own keep. Airlines need to fly their planes and serve air travellers to make ends meet while contributing to tourism, trade, economic and social revival. The same goes for airports and tourism establishments. Enabling aviation and giving its stakeholders a fair chance to sustain their resources, cover their costs by generating cash flow and see to their own recovery would also usher a global recovery even if COVID-19 still hovers. The virtual world may have overtaken our reality, but travel, trade and tourism are very tangible activities. Staycation and self-sufficiency will only make the world poorer. Cross border travel, tourism and trade can start a virtuous cycle of social and economic healing from a virus that has brought the world to heel. This respiratory disease that has the world gasping for breath indefinitely, needs a pragmatic, progressive and proactive response, collectively by all in the aviation ecosystem, including governments. Restarting aviation could breathe new life into the global economy and society thereby leading the way for an effective way of life in the new normal. Let airlines take off, so that the world can fly again.

ASIA-PACIFIC AIRPORTS MAGAZINE

DESIGN & BUILD

Delhi Noida International Airport Construction of a second Delhi airport is expected to commence in the second half of 2021 if financing is secured.

t may still be a few years away from becoming reality, but a second Delhi airport is now well and truly on the radar following confirmation that Zurich Airport will build and operate the new gateway and the appointment of its new management team. Delhi Noida International Airport (DNIA) will be led by CEO, Christoph Schnellmann, while Kiran Jain, a popular and well-known face in the airport and aviation industry, will serve as its chief operating officer. The Swiss airport’s wholly-owned subsidiary, Zurich Airport International AG (ZAIA), submitted the highest bid for the 40-year concession to develop and manage APA Issue 3, 2020

Delhi Noida International Airport, which will be located in Jewar, in Uttar Pradesh, around 72 kilometres from Delhi’s Indira Gandhi International Airport. Expected to cost around €600 million, the greenfield airport is slated to open in 2024 and and will initially be equipped to handle 12 million passengers per annum. However, an ambitious development plan includes proposals to raise its capacity to 30mppa in Phase II and 70mppa by the end of the concession in 2061. DNIA chairman and managing director, Daniel Bircher, reveals that Zurich Airport has received the letter of award (LoA) of the contract following the gaining of all the

ASIA-PACIFIC AIRPORTS MAGAZINE

Bircher notes that Zurich Airport is no stranger to doing business in India having previously been part of the consortium that successfully built and operated Bengaluru’s own greenfield gateway, Kempegowda International Airport, before selling its stake in 2017. “Our success in Bengaluru and elsewhere across the world, where we operate a total of nine airports, proves that we are more than qualified to take on the challenge of Delhi Noida International Airport,” states Bircher. “Our aim is to develop and operate a portfolio of airports in Asia. Delhi Noida is part of this strategy and other Indian airports could follow in the future, when the time is right.” Talking about the appeal of DNIA to Zurich Airport, chief financial officer, Lukas Brosi, comments: “Noida International Airport will be strategically located between Delhi and Agra, close to the fast-developing Noida and greater Noida area. If we look at large metropolitan areas worldwide, we find that second airports become viable once the primary airport reaches a certain hurdle in terms of passengers. “We believe that Noida International Airport will complement and work in harmony with Delhi’s Indira Gandhi International Airport and look forward to close collaboration with it in the future.” Bircher adds that the importance of Delhi Noida working in tandem with Indira Gandhi International Airport cannot be underestimated and is why he believes that both airports should be treated equally by India’s aviation authorities when DNIA opens for business. “Our understanding is that DNIA will be treated fairly and in the same way as IGI Airport and not as a less important airport, particularly when it comes to traffic rights and airspace management as this will allow both to flourish and, going forward, is the best way to serve the National Capital Region,” says Bircher. APA

www.aci-apa.com

DESIGN & BUILD

necessary security approvals and expects to officially sign the concession agreement with Noida International Airport Limited (NIAL) in mid-October 2020. “It has been a difficult year, not helped by the COVID-related travel restrictions, but we are currently in discussion with the government about the date for signing the concession agreement,” says Bircher. Indeed, ZAIA has been working on Delhi Noida International Airport’s master plan since January 2020 and is currently in the process of appointing architects and planners for the project. He notes that ZAIA is also in advanced discussions with different financial institutions in a bid to secure all the funding for the project by the end of the first quarter of 2021. While the Indian government and state of Uttar Pradesh have agreed compensation packages with landowners whose property has been acquired for the new airport and are finalising relocation and resettlement deals for families living on what will be the site of DNIA. “We anticipate completing the preconstruction activities, including all the necessary legal requirements for the project to go-ahead, in the first half year of 2021 and expect construction to begin immediately afterwards,” enthuses Bircher. “We have noted the recent efforts of the Government of Uttar Pradesh to attract investors into the Greater Noida area. This is a very welcome move and will help to develop and grow the already emerging area known as the National Capital Region. “The state of Uttar Pradesh is also planning to build a new elevated roadway between IGI Airport [Indira Gandhi International Airport] and DNIA, and the existing Delhi Metro system is to be extended to the new airport, so it will have fast and effective road connectivity and rail links. “Despite the current challenges due to COVID-19, Zurich Airport is extremely motivated to develop this concession and invest in Uttar Pradesh and India.”

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Industry news Technology-driven solutions take centre stage in the latest news update from ACI’s Asia-Pacific and global World Business partners.

CONTACTLESS TRAVEL AT BEIJING CAPITAL New biometric technology can ensure a completely contactless experience for passengers passing through Beijing Capital International Airport. The human-free journey is possible as the airport has completely automated the entire passenger journey using SITA technology – from check-in and bag drop through to immigration, security, and finally boarding. As a result, passengers only need to enrol once during check-in then, according to SITA, experience “a seamless journey through the airport enabled by facial recognition”. Beijing Capital’s SITA Smart Path solution is the largest rollout of its kind to date, covering over 600 biometric checkpoints through the airport including 250 lanes of automatic gates, 80 kiosks, and 30 self-bag drop stations which will process passengers from international flights. Sumesh Patel, SITA’s president for the Asia-Pacific region, says: “Automation is more important than ever in this COVID-19 environment to better enable social distancing and passenger flow without compromising processing times." APA Issue 3, 2020

ASIA-PACIFIC AIRPORTS MAGAZINE

INDUSTRY NEWS

NEW AUTOMATED GATES OPEN AT KANSAI INTERNATIONAL AIRPORT Kansai International Airport in Japan has become the latest Asia-Pacific gateway to introduce e-gates supplied by Vision-Box. The Osaka located airport has opened five banks of 12 pre-security gates (GT11) in Terminal 1 as it strives to ensure a ‘Fast Travel’ experience for passengers. By automating the boarding pass confirmation procedure at the departure gate, the self-scan will replace the need for staff to manually check and scan passenger boarding passes, speeding up the overall travel experience. Jeremy Goldstrich, COO at Kansai Aiports, says: “We will continue to proactively introduce cutting-edge technology to improve the convenience of the airport and provide a comfortable and new travel experience.”

NEW SECURITY SCREENING SYSTEM AT CANBERRA AIRPORT Canberra Airport has installed a new security screening system with technology from Smiths Detection (security machines) and Rapiscan (body scanners) to further improve the screening of passengers and their carry-on luggage. Commenting on their recent addition, the gateway’s head of aviation, Michael Thomson, says: “The new machines have reached the highest level of security certification, and eliminate the need to remove liquids, aerosols, and electronic devices like laptops from cabin bags.

“Several passengers can put their bags down simultaneously for screening, compared to the previous system where passengers had to wait for their turn. “The passenger pauses briefly as they pass through the body screening machine and it provides a safe full image for operators to review. This more informative image coupled with automatic algorithms to help guide operators to items of interest, makes this a truly powerful security tool.” www.aci-apa.com

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IT SYSTEMS ENHANCEMENT UNDERWAY AT QUEEN ALIA INTERNATIONAL AIRPORT Queen Alia operator, Airport International Group (AIG), is to modernise its IT systems in partnership with Amadeus. The gateway says that the move will deliver a foundation for innovation and the flexibility to react to new market dynamics. The first phase of the implementation has just been completed with QAIA using Amadeus technology to integrate its airport operations systems, as well as passenger and baggage services, into a single platform. According to Amadeus, this will allow AIG to “launch an agile, internet-enabled model that can be scaled up and/or down to match fluctuating passenger demand”. Implementation was completed during the COVID-19 lockdown with a nationwide curfew in place, as well as throughout the month of Ramadan. The ambitious project delivery was possible due to remote collaboration between AIG and Amadeus and its flexible cloud technology with a globally dispersed team. AIG CEO, Nicolas Claude, enthused: “The new cutting-edge platform enables us to strategically use our data to improve our airport operations and services across the board, allowing us to extend better offerings to our airline partners and passengers." The second phase of the deployment will be completed by the end of 2020 and see the implementation of Amadeus’ Altea Departure Control, self-service check-in and e-gates to ease the transit of passengers through QAIA. APA Issue 3, 2020

BECA Location: New Zealand Type of Business: Consulting & Management W: www.beca.com Beca is one of the largest employeeowned engineering and related consultancy services companies in the Asia-Pacific. As well as numerous engineering consultancy services, it offers architecture, planning, project and cost management, land information, valuations and process improvement services. Beca's airport experience includes projects at most New Zealand airports; the majority of Australian capital city airports; and various airports in the Pacific Islands and PNG; Changi Airport and Hong Kong as well as airfield works for Australian Defence and New Zealand Defence Force.

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WBP PROFILES

JT INTERNATIONAL Location: United Kingdom Type of Business: Retail and Commercial W: www.jti.com JTI is a member of the Japan Tobacco Group of Companies (JT), a leading international tobacco product manufacturer. It markets world-renowned brands such as Winston, Mild Seven (Mevius) and Camel. Other international brands include Benson & Hedges, Silk Cut, Sobranie, Glamour and LD. With headquarters in Geneva, Switzerland, JTI has operations in 120 countries and about 25,000 employees. TOYO KANETSU SOLUTIONS KK Location: Japan Type of Business: Handling and Airfield W: www.tksl.co.jp/en/index.html Our main business consists of planning, designing, manufacturing, constructing and selling of material handling systems and we have long contributed to the development of our customers of various industries for a half century since the start of our business.

APA

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C U S TO M E R E X P E R I E N C E Security and Facilitation Passenger Experience Management

E CO N O M I C S Securing Financial Health for Airports Airport Non-Aeronautical Revenues Airport Concession Management

O P E R AT I O N A L & T E C H N I C A L Capacity Enhancement and Resource Planning Terminal and Landside Operations Advanced Airport Operations

SECURITY ACI-ICAO Management of Airport Security* Security and Facilitation Airport Security Operations Quality Management in Airport Security

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Asia-Pacific Airports - Issue 3, 2020

Articles inside

Industry news

Delhi Noida International Airport

Time to take-off

Regional Update

In the shop window

View from the top

Under the radar