Asia-Pacific Airports - Issue 3, 2017

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

Commercial development: Growing the business In the spotlight: Commercial development Airport report: Bangkok Suvarnabhumi

Issue 3, 2017 www.aci-apa.com

Special report: Global airport operators Plus: Regional & World Business Partner news

Published by

APA 3 2017-cover_ads.indd 2

02/10/2017 14:27

ASIA-PACIFIC AIRPORTS MAGAZINE

CONTENTS

Asia-Pacific Airports Issue 3, 2017

6 View from the top

16 ACI news

Vivian Fung reports on the latest news, views and events from across the Asia-Pacific region.

Regional director, Patti Chau, reflects on a host of issues ranging from airport networks to industry efforts to make passenger processing more efficient.

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

10 Upward trajectory

20 Out to impress

3

Due to open any day now, Singapore Changi’s new Terminal 4 promises to be positively surprising with a unique boutique design and host of facilities for passengers to explore.

Bangkok Suvarnabhumi’s general manager, Sirote Duangratana, talks to Joe Bates about plans to expand the airport after a decade of traffic growth. www.aci-apa.com

4

ASIA-PACIFIC AIRPORTS MAGAZINE

CONTENTS 24 Ready for take-off

30 Driving innovation

NACO’s René Marey takes a closer look at plans to create an airport city at Tehran’s Imam Khomeini International Airport, located at the crossroads between the Middle East and Asia.

28 Winning ways

Asia-Pacific Airports discovers that Ever Rich Duty Free plays its part in the customer service success of Taoyuan International Airport.

Ivo Favotto reviews a new study that clearly shows that car parking, so important to the bottom line of most airports, is becoming increasingly innovative and dynamic.

34 Going global

What Asia-Pacific based companies own, operate or have shares in airports across the world? Joe Bates investigates.

38 WBP news Spotlight on the region’s World Business Partners.

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, 2017

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 Ellis Owen ellis@aci-apa.com +44 (0)208 274 1540

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

Printed in the UK by Magazine Printing Co

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.

54 6

ASIA-PACIFIC AIRPORTS MAGAZINE

SECTION FINAL VIEWPOINT WORD TITLE

VIEW FROM THE TOP

Regional director, Patti Chau, reflects on a host of issues ranging from airport networks to industry efforts to make passenger processing more efficient.

T

he 2017 inductees into the ACI Director General’s Roll of Excellence have been announced, and I am proud to say that the list of airports recognised for delivering outstanding customer service for a number of years in ACI’s annual Airport Service Quality (ASQ) surveys includes China’s Tianjin Binhai International Airport.

It is particularly pleasing to see another Chinese airport awarded such a prestigious status as continuous growth in China’s aviation market over the past decade has created an exciting new market that has led to a lot of new challenges for the nation’s airports.

CHINA CIVIL AVIATION DEVELOPMENT FORUM

I visited China in May to attend the 2017 China Civil Aviation Development Forum – a highlevel communication platform for global aviation leaders and key stakeholders organised by the Civil Aviation Administration of China (CAAC) – where I took the opportunity to share ACI’s view on the ‘economics and benefits of airport networks’.

My global overview highlighted the economic importance of airports and the key role they play in the transportation of people and goods; the challenges faced by the smaller gateways in an airport network; and the different management models employed by States.

APA Issue 3, 2017

States look to their airport system to create value, through GDP growth and jobs creation.

Some opt for single-airport operators to manage these functions, while others have designated more than one airport operator to manage a network of airports composed of large, medium and regional airports.

Airport companies that manage multiple airports within a network benefit from economies of scale and scope, especially in relation to overhead costs, and in many respects are efficiently run businesses with competitive aviation charges.

Airport networks also typically find it easier to access capital markets, which in turn translates into lower costs compared to single airports.

While many States choose to preserve the network approach – whether publicly or privately operated – for reasons of safety, socio-economic considerations, efficiency and/ or as a matter of integrated transport policy.

Indeed, very often operating airports as a network remains the only possible way to keep small airports viable and serve their respective communities.

At the end of the day, airports are wealth generators for a number of different stakeholders in the air transport value chain, and their socio-economic impact and multiplier effect extend to the broader economy.

As a result, everyone needs to do their bit to ensure these benefits continue long into the

ASIA-PACIFIC AIRPORTS MAGAZINE

ICAO TRIP REGIONAL SEMINAR

ACI’s co-operation and close working relationship with ICAO was demonstrated again in July when we were invited to attend the ICAO Traveller Identification Programme (TRIP) Regional Seminar in Hong Kong.

Jointly organised by ICAO and the Hong Kong Civil Aviation Department (CAD), the event addressed the five elements of ICAO’s TRIP Strategy, namely: • Machine readable travel document (MRTD) standards • Specifications and best practices • Secure travel document issuance • Robust evidence of identity processes • Information sharing technologies highly relevant to the execution of the United Nations Security Council Resolutions 2178 (2014) and 2309 (2016) on combatting foreign terrorist fighters, with a special focus on effective border control management.

We were invited to give our view on TRIP, as were fellow industry trade bodies, the Association of Asia Pacific Airlines (AAPA) and Pacific Asia Travel Association (PATA) among others, and regulators such as CAAC and CAD. We believe that passenger processing will need to change dramatically in the near future to cope with the projected growth in air traffic.

One way that this is likely to be achieved is through optimising the use of emerging technologies, processes and design developments to enhance our traveller identification capabilities to better facilitate the movement of passengers through airport terminals.

The scenario is expected to lead to governments, airports, airlines and their contractors and suppliers adopting most or all of automated border controls called for in the ICAO TRIP Strategy.

In this regard, ACI applauds ICAO for taking leadership in establishing standards in electronic passports and developing a strategy to help State authorities authenticate travel

documents in a world that is increasingly threatened by terrorist attacks.

GLOBAL AVIATION LEADERS

At the recent 54th Conference of Directors General of Civil Aviation, Asia and Pacific Region in Ulaanbaatar, Mongolia, ACI World director general, Angela Gittens, highlighted the capacity constraints faced by airports and the growing trend of airport networks during a presentation entitled ‘Asia-Pacific at the crossroads: Breaking Barriers and Navigating the Future’.

Fellow panellists in the session – moderated

by ICAO’s Secretary General, Dr Fang Liu, – were Dr Olumuyiwa Benard Aliu, President of the ICAO Council; Michael Huerta, Administrator of the US Federal Aviation Administration; Bambang Susantono, vice president of knowledge management and sustainable development for the Asian Development Bank; and Aireen Omar, CEO of AirAsia.

WORLD BUSINESS PARTNERS

ACI Asia-Pacific is proud to be the only ACI region to currently organise an annual WBP Airport Tour.

Exclusively available for WBP members in the region, the tour aims to provide a mutually beneficial opportunity for WBPs to meet face-to-face with senior airport executives from host airports.

The meetings allow WBPs to gain a better understanding of the respective airport’s development plans/upcoming projects and give airports the opportunity to learn more about the latest industry trends, business solutions and technology news from the WBPs. This year’s WBP Airport Tour will visit three of the leading airports in the region, Hong Kong, Shenzhen and Guangzhou international airports.

LOOKING TO 2018

Last, but not least, I would like to invite you to mark the dates of next year’s Regional Assembly, Conference and Exhibition in your diaries. The event, kindly hosted by Narita International Airport Corporation, will be held in Narita, Japan, on April 23-25, 2018.

I hope you can join us for one of the most APA important events in our region! www.aci-apa.com

SECTION TITLE VIEWPOINT

future, including, of course, ICAO through the adoption of appropriate policies.

7

8

ASIA-PACIFIC AIRPORTS MAGAZINE

NEWS

Headline Standfirst BUILDING A DYNAMIC WORKFORCE Dubai Airports has launched a pioneering new career development programme aimed at attracting more Emirati women to join its Body copy workforce in management roles.

It claims that the move reaffirms its commitment to the nation’s female workforce as it wants women to play an important role in the future development of the UAE’s aviation industry.

Called the ‘Aspiring Women’s Programme’, the initiative is aimed at female Emirati managers and designed to develop high-performing Emirati women into the company’s future leaders.

Dubai Airports reveals that the nine-month programme will provide Emirati women with leadership coaching, workplace challenges, workshops and support in helping them build up

their network of contacts across the organisation and wider airport community.

It will, it says, ultimately lead to a professional certification recognised by the Institute of Leadership and Management.

Ann-Marie Campbell, executive vice president of human resources and development at Dubai Airports, said: “We are delighted to launch our ‘Aspiring Women’ course, and believe this programme will harness the potential of the many dynamic Emirati women in our organisation.

“The passion and commitment of Emirati women who strive to exceed in their professional lives is truly inspirational and is sure to enhance their professional careers and the future of this great country.”

AUCKLAND’S DIGITAL TRANSFORMATION Auckland Airport is to transform itself into a multi-channel marketplace where visitors can buy goods and services online.

The transformation is courtesy of the adoption of AOE’s OM³ or Omnichannel Multi-Merchant Marketplace platform, which multi-retailer venues such as airports can use to digitalise their non-aviation revenues.

It says the move will provide the airport’s customers with a comprehensive and seamless online and offline experience.

AOE will roll out a complex integrated platform for Auckland Airport that integrates their on-airport retailers and provides a fully integrated logistics solution to enable passengers who currently purchase off-airport duty free goods to pick them up at conveniently located collection points at the airport.

It says that the integration of parking, loyalty, lounge access and fast track features will convert Auckland Airport’s vision of the truly connected passenger experience into reality, proving that gateways with less than 20 million passengers can create substantial revenue potentials through digitalisation.

“The new technology will ensure that we deliver one of the most advanced online airport retail experiences in the world and that we can significantly expand the range and type of products and services we offer to our customers,” says airport CEO, Adrian Littlewood.

APA Issue 3, 2017

ASIA-PACIFIC AIRPORTS MAGAZINE

9

SECTION NEWS TITLE

BNE’S NEW ARTIST-INRESIDENCE IS LEGO CRAZY Brisbane Airport’s new artist-in-residence, Ben Craig, is an expert in a very popular field... the art of building things with LEGO! Ironically Craig, aka ‘Ben the Brick Builder’, once failed an art assignment at school because he was told building with LEGO was not an acceptable form of art.

For the next 12 months, as part of the BricksBNE project, Craig will be creating two ‘walls’ of artwork - depicting favourite travel experiences from passengers - entirely from LEGO bricks at Brisbane Airport (BNE).

Anchoring the displays in each wall will be two large scale works by Craig – one showing a day in the life of Brisbane Airport’s International Terminal (with some quirky characters included) and another of a “new aviation wonder”, which is more than a metre in length.

Craig has also promised to host a series of public workshops in and around the airport to share his LEGO-building skills and tips.

He says: “Airports are full of stories, and beyond spending the year bringing together two major passions, aviation and building with LEGO, I am excited to have the opportunity to engage travellers, illustrating their stories and travel experiences with LEGO bricks.”

Craig is BNE’s third artist-in-residence following the Queensland Symphony Orchestra and realist painter, Robert Brownhall.

SHANGHAI PUDONG AWARDS BHS CONTRACT TO BEUMER BEUMER Group is to provide the baggage handling system (BHS) for the giant new Satellite Terminal at Shanghai Pudong International Airport.

Set to open in 2019, the complex will be China’s first airport satellite building and one of largest detached terminals in the world, with 83 departure gates and a floor area of 620,000 square metres.

BEUMER was appointed to detail design, supply and install the BHS, which will integrate four Crisplant LS-4000 tilt tray sorters, 21 CrisClaim carousels and approximately eight kilometres of CrisBelt conveyors.

The BHS will provide the Satellite Terminal with the capacity to handle 38 million passengers per year.

“The Satellite Terminal will make Shanghai Pudong one of the three largest airports in the world,” predicted Dai Xiaojian, vice president of Shanghai Airport Authority and executive deputy commander-in-chief of Shanghai Airport Construction Headquarters.

“Total passenger numbers are expected to increase to 60 million passengers in 2017 and 80 million passengers by 2020.”

Speaking at a special contract signing ceremony in Shanghai, BEUMER’s COO, Dr Hermann Brunsen, said: “The new contract demonstrates China’s commitment to meeting the growing demand for air travel.” www.aci-apa.com

10

ASIA-PACIFIC AIRPORTS MAGAZINE

AIRPORT PROFILE: BANGKOK SUVARNABHUMI

Upward trajectory

Bangkok Suvarnabhumi’s general manager, Sirote Duangratana, talks to Joe Bates about plans to expand the airport after a decade of traffic growth.

W

hen Bangkok’s impressive Suvarnabhumi Airport opened just over a decade ago it was envisaged that it would replace the city’s operationally constrained Don Mueang International Airport and have the capacity to cope with demand for the foreseeable future.

Its September 28th, 2006, opening meant that Thailand immediately boasted one of the most modern and operationally efficient gateways in the world and certainly one of the most unique in terms of its architecture and design.

None of that has changed, of course, and today Bangkok Suvarnabhumi (BKK) is one of the region’s biggest hubs handling 55 million passengers yearly.

However, what wasn’t entirely expected was the pace of traffic growth in Bangkok over the last decade. Indeed, Suvarnabhumi has experienced average annual traffic growth of 3.2% per annum since 2007 despite Don Mueang remaining open and now laying claim to being the world’s largest low-cost carrier airport.

The Thai government has responded to the continued upward trajectory in demand by outlining plans for a $1.57 billion, three-phase expansion programme for Suvarnabhumi, which will lead to the addition of a new Midfield Satellite Building, Terminal 2 and third runway over the next six years.

APA Issue 3, 2017

And for many at BKK operator, Airports of Thailand (AoT), the eagerly anticipated upgrade cannot come quickly enough.

INFRASTRUCTURE DEVELOPMENT

Bangkok Suvarnabhumi’s general manager, Sirote Duangratana, explains: “We successfully handled 55.9 million passengers in 2016 even though the airport is only designed to accommodate 45 million passengers.

“We managed to do this by implementing a new slot allocation system to ease airfield congestion, embracing Airport – Collaborative Decision Making [A-CDM], working more closely with our stakeholders, and making better use of manpower to improve passenger flows through the terminal during our peak hours.

“These measures show efficiency, but we recognise that new capacity enhancing

ASIA-PACIFIC AIRPORTS MAGAZINE

11

AIRPORT PROFILE: BANGKOK SUVARNABHUMI

infrastructure is needed to allow Bangkok Suvarnabhumi to develop as a hub.”

The expansion of the eastern end of the existing terminal building and construction of a new 28-gate Midfield Satellite Building and Automated People Mover (APM) to link it to the main terminal are the key projects of the first phase of the development programme.

The APM will operate in a tunnel under the airfield that will also house a new Independent Carrier System (ICS) for transporting hold luggage between the main terminal and aircraft gates.

“The new facilities will raise Bangkok Suvarnabhumi’s capacity to 60 million passengers per annum,” enthuses Duangratana.

“The Midfield Satellite Building will have 20 gates capable of handling Code E type aircraft [B747s] and eight which can accommodate aircraft up to size of the A380 aircraft.

“The eastern expansion of the existing terminal is scheduled for completion in 2019. The development phase includes the construction of a new four-storey office building, multi-storey car park capable of accommodating 1,000 vehicles and other utilities.

“They will be followed by a new 30 million passenger capacity Terminal 2. The complex will be constructed on the northern side of concourse A and, when completed in late 2021, will ensure that the airport is equipped to handle up to 90 million passengers yearly.

“The final phase of the development programme involves the construction of a new 4,000-metre runway that will significantly enhance our airfield capacity by allowing the airport to handle up to 94 aircraft movements per hour when completed in 2022.” www.aci-apa.com

12

ASIA-PACIFIC AIRPORTS MAGAZINE

AIRPORT PROFILE: BANGKOK SUVARNABHUMI

AoT is also introducing an Advance Passenger Processing (APP) system and a new Baggage Reconciliation System (BRS) to improve the baggage screening and identification processes.

Its commitment to new technology also extends to smaller things such as making it easier for passengers to access the airport’s Wi-Fi network and increasing the number of power points and mobile charging stations across the terminal.

DUAL AIRPORT SYSTEM

The runway development project is currently in the process of getting budgetary approval from the Thai government and ratification from the National Environment Board in order to prepare for Environmental Health Impact Assessment (EHIA).

IT INNOVATION

Duangratana notes that in addition to raising the airport’s capacity, the new facilities will boost its operational efficiency and customer service levels, particularly in the area of passenger processing, which should be quicker and easier than ever before.

He promises that “highly advanced technology” will be deployed throughout the new Midfield Satellite Building and Terminal 2 to best facilitate the current and future needs of passengers and Bangkok Suvarnabhumi’s airline customers.

In the meantime, he reveals that AoT is turning to technology to improve passenger processing and reduce peak time overcrowding in the existing terminal.

Its efforts include promoting and developing technology such as Common-Use Self-Service (CUSS) kiosks, Common-Use Bag Drop (CUBD) and Automated Passport Control (APC) systems.

APA Issue 3, 2017

As previously mentioned, 55.9 million (+5.7%) passed through BKK in 2016, and Duangratana expects the figure to exceed 60 million in 2017.

He believes that Thailand’s popularity as a tourist and business destination; economic growth nationally and across the entire Asia-Pacific region; the ASEAN Open Sky Agreement/Policy; and the dynamism of the region’s low-cost carriers (LCCs) have all driven the upturn in traffic.

Soaring demand from China has also been a major factor, notes Duangratana, who points out that Chinese passengers now account for 20% of all the international passengers passing through Suvarnabhumi.

“I am sure many other airports are envious of our traffic growth,” states Duangratana.

“We expect passenger numbers to rise by an average of 5% per year for the next 10 years.

“This rate of growth makes us confident that we can expect passenger numbers to reach 90 million annually by 2026.”

The strong predicted growth rates ensure that AoT has no plans to close down Don Mueang International Airport (DMK), and this view is unlikely to change, even after the completion of the current phased expansion of BKK. “At the present, there are no plans to close down DMK as the two airports serve different functions,” explains Duangratana.

“BKK operates as Bangkok and Thailand’s main airport, handling domestic and international services and acting as a transfer hub for passengers travelling to other ASEAN countries.

193 accredited airports ...

23 .. in North ..

America . ....

1 16

in Europe

38 6

in La� n America &Caribbean

10

in Africa

or38 .. 4% of gl,obal air passe·nger traffic.

Visit our interactive r,es u Its website www.airportC02.org

(i

°'# @Ah-pott:<:02

14

ASIA-PACIFIC AIRPORTS MAGAZINE

AIRPORT PROFILE: BANGKOK SUVARNABHUMI

“DMK, on the other hand, is very much Bangkok’s second airport and home to the low-cost carriers serving both the international and domestic markets.

Their continued growth and rising passenger demand means that we need both airports.

“As a result, AOT aims to continuously develop both Suvarnabhumi and Don Mueang to meet air transportation market growth and maintain Bangkok’s status as a major regional hub.”

AIRLINES AND TRAFFIC MIX

A total of 127 airlines serve BKK today, led by home carrier Thai Airways International, which is by far and away the biggest operator at the gateway accounting for around a third (31.7%) of the traffic.

The next biggest airlines are Bangkok Airways (8.6%), Thai Smile Airways (5.9%), Emirates (3.8%) and Cathay Pacific (3.2%), ensuring that the top five airlines at BKK are responsible for 53.2% of the traffic.

Peach (Okinawa – Bangkok); Flydubai (Dubai – Bangkok); JC Airlines (Phnom Phen – Bangkok); and US Bangla Airlines (Dhaka – Bangkok) are the latest new additions to its list of airline customers.

O&D traffic dominates, point-to-point services accounting for 81% of the passengers handled at the airport in 2016.

The low-cost carriers have had an impact at BKK, although Don Mueang’s status as Bangkok’s LCC gateway means that they are currently only responsible for around 8% of its passengers.

“The LCCs have had some impact on the airport, but not nearly as much as at Don APA Issue 3, 2017

Mueang or other airports across Thailand,” says Duangratana.

“Across the country, the LCCs have increased their market share at AOT airports from 9.6% in 2004 to 44.9% in 2016. Their emergence and dynamic development has brought healthy competition to the market, which is good, but also led to increasing demands on BKK’s infrastructure.”

RAIL LINK TO DON MUEANG

Like most major Asia-Pacific hubs, Suvarnabhumi has a rail link, the SA City Line providing services between the airport and downtown Bangkok’s Phayathai Station around 28 kilometres away.

The popular service offers 30-minute journey times between BKK and the city centre, stopping at six stations (Rajprarop, Makkasan, Ramkhamhaeng, Hua Mark, Thab Chang and Lad Krabang) on the way.

And things are about to get even better for passengers and airport staff making the daily commute to work as an ongoing extension to the line will increase accessibility to more downtown districts and make it much easier to connect between Suvarnabhumi and Don Mueang.

Duangratana notes that the line is expected to be completed in 2019 and will be complemented by the planned 2022 opening of a new rail route that directly links BKK, DMK and Pattaya’s U-Tapao International Airport.

With passenger numbers on the rise and new infrastructure and improved rail access on the way, there is no doubt that Bangkok Suvarnabhumi is on the right track to ensuring that it remains one of the region’s biggest and most successful airports.

APA

16

ASIA-PACIFIC AIRPORTS MAGAZINE

ACI ASIA-PACIFIC NEWS

Regional update

Vivian Fung reports on the latest news, views and events from across the Asia-Pacific region.

ACI/ICAO AERODROME CERTIFICATION SEMINAR

In June, Sydney Airport facilitated the joint ACI-ICAO Aerodrome Certification Seminar, which attracted over 30 delegates representing airports and civil aviation authorities from Bangladesh, Bhutan, China, India, Indonesia, Iran, Kiribati, Myanmar, Nepal, Papa New Guinea, Samoa, Solomon Islands, Thailand, Tonga and Vanuatu.

Delivered by ACI instructor, Eoin Ryan, and ICAO instructor, Natrajan Chandra Sekhar, the seminar covered all aspects of achieving and maintaining Aerodrome Certification, with an emphasis on understanding ICAO Annex 14 certification requirements and the additional information provided in other ICAO guidance documents.

Several case studies were provided for discussion about airports that had lost their CAA certification or had difficulty in maintaining their certification, and the ensuing debate provided a range of solutions for consideration.

ACI would like to thank Sydney Airport for their generous support in facilitating the event, which included a mock airside audit of its facilities that gave attendees the opportunity to practice their audit skills.

The seminar was part of ACI’s Developing Nations Airport (DNA) Assistance Programme.

Visit www.aci.aero/Services/DNA-AssistanceProgramme for more information about the initiative.

DGCA ASIA AND PACIFIC REGIONS CONFERENCE

ACI Asia-Pacific’s regional director, Patti Chau, was among the aviation leaders invited to take part in the 54th Conference of Directors General of Civil Aviation (DGCA), Asia and Pacific Regions, held in Mongolian capital, Ulaanbaatar, in August.

She gave presentations on ‘SMART Security: An IATA and ACI initiative to enhance security, facilitation and operational efficiency’; and ‘ACI’s capacity building efforts in security’.

As reported by Chau in her ‘View from the Top’ article in this issue, ACI World director general, Angela Gittens, was also in attendance and shared her views on the topic of ‘Asia-Pacific at the crossroads: Breaking Barriers and Navigating the Future’.

APA Issue 3, 2017

Other aviation leaders present included Dr Fang Liu (Secretary General of ICAO); Dr Olumuyiwa Benard Aliu (President of the ICAO Council); Michael Huerta (FAA Administrator); Bambang Susantono (vice president of knowledge management and sustainable development for the Asian Development Bank) and Aireen Omar (CEO, AirAsia).

The DGCA conference is the annual summit for the civil aviation regulators of the 38 States of the Asia-Pacific Region. The year’s event discussed five ICAO strategic objectives: safety; security and facilitation; air navigation capacity efficiency; environmental protection; and the economic development of air transport.

October 16-18 ACI Africa/ACI World Annual General Assembly Port Louis, Mauritius

December 5-7 Airport Exchange Muscat, Oman

2017

November 1-3 The Trinity Forum Bangkok, Thailand

2018

April 23-25 ACI Asia-Pacific Regional Assembly, Conference & Exhibition Narita, Japan

ACI ASIA-PACIFIC BOARD

PRESIDENT

Kerrie Mather* (Sydney Airport, Australia)

FIRST VICE PRESIDENT

REGIONAL BOARD DIRECTORS

Sulaiman Zainul Abidin (Pioneer Aerodrome Service Co Ltd, Myanmar)

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

Aimen bin Ahmed Al Hosni* (Oman Airports Management Company, Oman)

SECOND VICE PRESIDENTS

Turki Abdullah Al Jawini (General Authority of Civil Aviation, Saudi Arabia)

Fred Lam* (Airport Authority Hong Kong, Hong Kong) PS Nair* (Delhi International Airport Limited, India)

SECRETARY-TREASURER Emmanuel Menanteau* (Kansai Airports, Japan)

IMMEDIATE PAST PRESIDENT

Tan Sri Bashir Ahmad Abdul Majid** (Malaysia Airports Holdings Berhad, Malaysia)

HE Ali Salim Al Midfa (Sharjah Airport Authority, UAE) Gholam Hossein Bagherian (Iran Airports & Air Navigation Company, Iran) Kjeld Binger* (Airport International Group, Jordan) Il-Young Chung (Incheon International Airport Corporation, Korea)

Eric Delobel (Cambodia Airports, Cambodia)

Datuk Badlisham Bin Ghazali* (Malaysia Airports Holdings Berhad, Malaysia) Xue Song Liu* (Beijing Capital International Airport Co Ltd, China) Pedro Roy Martinez (AB Won Pat International Airport Authority, Guam) ACK Nair (Cochin International Airport Limited, India) Futoshi Osada (Narita International Airport Corporation, Japan) Sasisubha Sukontasap (Airports of Thailand, Thailand)

Il-Hwan Sung (Korea Airports Corporation, Korea) Dar-jen Tseng Taoyuan International Airport Corporation (Chinese Taipei) Jianrong Wu (Shanghai Airport Authority, China)

REGIONAL BOARD DIRECTOR (WBP)

Greg Fordham (Airbiz Aviation Strategies Pty Ltd, Australia)

SPECIAL ADVISORS

Badr Mohammed Al-Meer (Hamad International Airport, Qatar) Guruprasad Mohapatra (Airports Authority of India, India) Correct as of September 2017.

* WGB member **Regional Advisor on WGB

The ACI Asia-Pacific region represents 102 members operating 578 airports in 48 countries and territories. www.aci-apa.com

17

ACI ASIA-PACIFIC NEWS

EVENTS 2017 2017

ASIA-PACIFIC AIRPORTS MAGAZINE

18

ASIA-PACIFIC AIRPORTS MAGAZINE

ACI ASIA-PACIFIC NEWS

ACI REGIONAL COMMITTEE PUBLISHES GUIDANCE ON SAFETY PROMOTION

LATEST TRAFFIC TRENDS

Passenger numbers through Asia-Pacific and Middle Eastern airports soared by +7.9% and +3.3% respectively in June compared to the same period last year.

The upturns mean that traffic through the respective regions increased by 8.1% (Asia-Pacific) and 7.2% (Middle East) in the first half of 2017.

In China, domestic passenger travel delivered strong results in June, though the overall pace of international passenger travel appeared to stabilise after a period of rapid expansion in 2016.

Shijiazhuang (+27.5%) and Tianjin Binhai (+22.9%) continued to expand at a fast pace, recording significant growth on the same month a year ago.

In India, while the pace of the upturn in domestic passenger numbers continued to ease, overall growth in June was above 15%. Indeed, the majority of reporting airports generated double-digit growth from last year, driven by small to medium sized airports such as Bhubaneswar (+40.1%), Guwahati (+34.9%) and Kolkata (+32%).

In the Middle East, passenger traffic showed mixed results. Qatar’s diplomatic crisis with a number of neighbouring states in June led to an in airspace blockade against Qatar, consequently passenger traffic at Doha (DOH) suffered a decline of 14.6%.

Elsewhere in the region, Kuwait (+19.3%) and Muscat (+17.5%) continued to grow at a fast pace. The largest hub in the region Dubai (DXB) reported moderate 3.9% growth as a result of Ramadan falling in June, which is traditionally a slow month.

APA Issue 3, 2017

Safety promotion is a major component of Safety Management Systems. The use of promotional materials, including posters, graphics and slogans is often regarded as a cost-effective means to enhance safety awareness.

To help airports design safety promotional materials, ACI Asia-Pacific’s Regional Operational Safety Committee (ROSC) has compiled the ACI Reference Book on Safety Promotional Materials.

The reference book contains promotional materials grouped into seven categories – apron safety; airside driving; foreign object debris (FOD) prevention; runway safety; wildlife hazard management; safety culture and incident reporting; and occupational health and safety.

It can be downloaded at the ACI Asia-Pacific website. Please contact SL Wong, head of technical and industry affairs, at sl@aci-asiapac.aero for more information about the reference book and all other safety-related matters.

ACI ASIA-PACIFIC 2016 ECONOMIC REVIEW

To strengthen regional support to members and to establish a key position for ACI in the region on airport economics matters, one of the key initiatives of the Regional Office is to develop regionalised analysis and reports, and advocacy material in response to specific policy issues.

The ACI Asia-Pacific 2016 Economic Review, compiled under the direction of the ACI Asia-Pacific Regional Economics Committee, provides regional insights on the economic and business environment, identifies trends in air traffic, highlights major airport developments and privatisation projects, and examines key performance indicators on airport economics.

This year’s review includes a new section on the development low-cost carriers (LCCs), and features an article contributed by Japan’s Ministry of Land, Infrastructure, Transport and Tourism on the growth of LCCs in Japan.

Should you wish to receive a copy of the report or to provide comments and suggestions on topics for future studies, please contact Suzanne Tong, manager, economics and statistics at Suzanne@aci-asiapac.aero.

A copy of the report is also available on our website in the Members Area.

APA

20

COMMERCIAL DEVELOPMENT

Out to impress Due to open any day now, Singapore Changi’s new Terminal 4 promises to be positively surprising with a unique boutique design and host of facilities for passengers to explore.

S

ingapore Changi Airport has set the bar pretty high when it comes to customer service levels and the opening of innovative new facilities, so when it announces that its new Terminal 4 will be impressive, the aviation industry listens.

Indeed, operator Changi Airport Group (CAG), has gone on record as stating that Terminal 4 presents a “new travel experience with its boutique design and innovative use of technology”.

It will also be the first terminal at Changi Airport to offer end-to-end Fast and Seamless Travel (FAST) for departing passengers.

With the extensive use of technology, including facial recognition software, CAG states that FAST will redefine the travel experience for passengers as well as enhance operational efficiency and raise productivity.

Capable of handling up to 16 million passengers per annum, Changi’s new S$1.3 billion terminal has a total floor area of 225,000 square metres, including the two-storey terminal, car parks and taxi deck.

APA Issue 3, 2017

BOUTIQUE DESIGN

According to CAG, T4’s design theme is fun, vibrant and positively surprising. There is a sense of space – a hallmark of Changi Airport – brought about by a high ceiling and height limits for equipment and machines.

It reveals that the terminal’s showpiece is a Central Galleria (300m long x 18m wide x 23m high), which separates the public zone from the transit area.

This visual-transparent concept provides a clear view from the check-in hall through the transit area and, at some locations, even right up to the boarding gates.

Due to its compact size, T4 will have centralised areas for departure and arrival immigration as well as pre-board security screening.

This, says CAG, provides for more optimised deployment of manpower and equipment. In the Departure Hall, the check-in islands are angled towards the common immigration control area, to create natural and intuitive wayfinding for passengers.

ASIA-PACIFIC AIRPORTS MAGAZINE

The terminal also promises to be light, airy and ‘green’ courtesy of skylights and glass walls allowing natural light, and plenty of plants and trees. Indeed, landscaping covers 2,000 square metres and T4 is home to 186 large trees.

Along the boarding corridor, 160 ficus trees form a green boulevard that separates the boarding area from the common area at the departure gates.

RETAIL OFFERINGS

Terminal 4 will also be a “shopping and dining haven”, insists CAG, boasting more than 80 retail and F&B outlets featuring popular brands and unique experiential zones.

This includes an integrated duty-free zone covering both liquor & tobacco and cosmetics & perfumes products. Shoppers will be able to pay for their purchases at common cashier counters.

New at Changi Airport, the Heritage Zone – designed with the evolving architecture of shophouse facades – provides passengers with a glimpse of Singapore’s unique cultural

www.aci-apa.com

COMMERCIAL DEVELOPMENT

REDEFINING TRAVEL

Singapore based architectural consultancy firm, SAA Architects, acted as the lead consultant on the project, spearheading the Architectural Design Consortium (ADC), as well as being executive architect of T4.

In collaboration with Benoy Limited (Benoy) – the concept and interior designers on the project – SAA embarked on a mission to create a unique airport terminal experience that “pushes the boundaries and inspires the traveller like never before”.

Yeo Siew Haip, managing director of SAA Architects, described the firm’s pivotal role as like “a music conductor in orchestrating all the processes to bring the T4 design to reality”.

This included leading the ADC in concept refinement, stakeholder engagement, fast-track scheduling and value engineering.

Yeo is also quick to point out that the ADC also surpassed all expectations in terms of delivering a fast track project to a high level of quality.

“We are committed to raising travellers’ experiences to new heights, contributing to Singapore’s goal of being a leading aviation hub,” says Yeo. He notes that SAA faced stiff competition from some of the world’s top archtiects for its role as lead consultant on the project’s design team, which he reveals involved collaborating and working closely with more than ten consultants and specialists.

SAA Architects has over 50 years of experience in delivering complex infrastructure projects across the region.

They include designing over half of Singapore’s Mass Rapid Transit (MRT) stations and the country’s Woodlands Healthcare Campus and Northpoint City and jem shopping malls.

21

22

ASIA-PACIFIC AIRPORTS MAGAZINE

COMMERCIAL DEVELOPMENT

MAKING AN IMPRESSION

Benoy, the concept design architect and interior designer of the highly anticipated new terminal, is confident that it will make a big impression on passengers.

Benoy’s CEO, Tom Cartledge, says: “We pride ourselves on creating spaces where people want to live, work and play and designing an airport terminal is no different.

“We have applied intelligent planning and creative problem solving to transform what is traditionally a functional and transitory experience, into one that responds to every stage of the passenger journey whilst generating non-aviation venue for CAG.” The journey starts at check-in with state-of-the-art facilities to provide improved levels of efficiency. Once clear of immigration and security, passengers are guided along the spacious, tax-free retail walkway with double height shop fronts, all the time surrounded by meticulously matched interiors and ambient lighting.

“We were keen to address the physical and psychological barrier created between departing passengers and their loved ones,” notes Cartledge.

“Through creative problem solving we designed the Central Galleria – a glazed, open space separating the airside and landside areas. This celebration of physical and visual transparency is the terminal’s focal point. It will enable departing passengers to stay in visual contact with their friends and family whilst also moving them through to the Transit Lounge.”

Natural light and soft landscaping are a recurring theme within T4. An abundance of skylights, interior gardens, trees and green walls help to capture Singapore’s national identity as a ‘City within a Garden’.

Cartledge adds: “Wherever we are globally, we embrace the natural and built environment in which we’re working.

When you consider the space in its entirety, it’s easier to create a user experience that is continuous rather than interrupted.”

heritage, while housing a range of traditional retail and dining offerings.

A THEATRE OF EXPERIENCE

With a rich tapestry of culture and technology, T4 is set to invoke an emotional connection with passengers, engaging them through a theatre of different experiences, heritagethemed facades, immersive LED digital displays and more.

The art collection at T4 features an eclectic mix of contemporary works by local and international artists, with a diverse blend of mediums, sizes and imagery.

Poh Li San, CAG’s vice president, T4 programme management office, enthuses: “Terminal 4 was conceived with the vision to rethink travel, push boundaries and break new ground.

“Through innovative concepts of operation and terminal design, we sought to address our capacity needs as well as improve efficiency and manpower productivity.

“For the passenger, we wanted to delight them with ‘wow’ features and showcase our local culture and architectural history at the Heritage Zone. We look forward to welcoming our first passengers.”

APA Issue 3, 2017

APA

24

ASIA-PACIFIC AIRPORTS MAGAZINE

COMMERCIAL DEVELOPMENT

Ready for take-off NACO’s René Marey takes a closer look at plans to create an airport city at Tehran’s Imam Khomeini International Airport, located at the crossroads between the Middle East and Asia.

I

ran, one of the last untapped emerging markets, is beginning to open up to international trade and investment again after returning to the global economic stage following the lifting of sanctions.

The new dynamic has provided a catalyst for development projects across the country, nowhere more so than at Imam Khomeini International Airport (IKIA), where major expansion programmes are underway to upgrade the gateway and create Iran’s first airport city.

IKIA, and the new Imam Khomeini Airport City (IKAC), are located 45 kilometres southwest of capital Tehran.

TEHRAN’S MAIN AIRPORT

Imam Khomeini International Airport (IKIA) is a relatively new gateway having only replaced Tehran’s old Mehrabad International Airport in 2004. It is Iran’s primary air gateway with international connections to Europe, Asia, the Middle East and Africa.

The old airport, which is closer to the city centre, maintains a key position for domestic flights while Imam Khomeini exclusively operates as an international gateway, although it will introduce domestic services in the future.

Recognising the importance of IKIA to the local and national economy, the Iranian APA Issue 3, 2017

government has decided to modernise and expand the airport to ensure that it is equipped to meet anticipated traffic growth.

It also wants to introduce more retail and F&B outlets to boost the airport’s commercial revenues and improve IKIA’s freight facilities to allow it to fulfil its huge potential to develop as a cargo hub.

With passenger traffic expected to soar to around 60mppa in the 2040s, there are plans to build a second runway, expand the existing terminal and add two additional terminals, one of which will be specifically designed to accommodate pilgrims on their journeys to Mecca and holy shrines in Iraq and Syria.

MARKET POTENTIAL OF IRAN

A successful air transport system in Iran will connect people, open global markets, facilitate trade with foreign companies, and enable Iranian companies to connect and do business with global supply chains.

It therefore goes without saying that enhancing Iran’s air connectivity will have considerable economic impact.

Iran, a country of 80 million people, boasts a large, young, urbanised and highly educated population that will potentially drive the pool of travellers and ensure that the propensity to fly quadruples over the next 30 years.

ASIA-PACIFIC AIRPORTS MAGAZINE

TEHRAN’S AIRPORT CITY

It is firmly believed that an airport city development at Imam Khomeini International Airport will capture and capitalise on the economic opportunities that the region offers.

The airport will offer the infrastructure, traffic and the business environment that is needed to set in motion the commercial, logistics, industrial and urban development of a 13,700-hectare site known as Imam Khomeini Airport City (IKAC).

Those behind the project cite four key reasons why IKAC will have global appeal – its location on one of the world’s oldest trade routes; Iran’s huge hinterland and growing consumer market; its facilities that will include an International Free Zone; and the quality of services it will be able to provide.

In terms of its trade route location in the commercial centre of Iran, it is envisaged that IKAC can become an important hub for transport and commerce on the New Silk Route, running from Eastern China to the Mediterranean Sea.

ENGINES OF DEVELOPMENT

Given Iran’s predicted air traffic growth, geographic potential and the economics of its hinterland, arguably the biggest challenge faced by IKAC’s developers was deciding on

Without doubt, education and R&D are of vital importance to the sustained success of any airport city and its inhabitants, and IKAC is no exception.

It should also be noted that each of IKAC’s five sectors has benefits from, and dependencies upon, each other.

A study to quantify the contribution of IKIA and IKAC to the national economy shows that employment can grow from 18,400 jobs in 2015 to an estimated 112,900 jobs in 2046, and from a contribution of €315 million to GDP in 2015 to €1.9 billion in 2046.

MASTER PLAN

IKAC’s master plan provides a flexible framework for the long-term planning of the airport and airport city. It optimises the airport as a multi-modal hub where commercial activities support and complement its primary function.

Tehran’s location at the crossroads of many modes of connectivity means that the region generates high interest from international manufacturing companies.

About 2,700 hectares at IKAC are reserved for manufacturing industries that can greatly benefit from the high level of education among Iranian citizens to deliver about 150,000 jobs. www.aci-apa.com

COMMERCIAL DEVELOPMENT

which sectors and clusters to focus on to maximise its socio-economic impact.

In order for it to be successful, it was important to remember to focus on sectors that have long and not only short-term potential, and to create true industry clusters.

Similarly, translating supply chains into value chains is also key.

Integrated marketing analysis was used to help make the big decisions and, as a result, five major engines that will drive IKAC’s development were identified: • Aviation-oriented business activities • Logistics • Manufacturing industries • Research and development (R&D) • Modern business services

25

26

ASIA-PACIFIC AIRPORTS MAGAZINE

COMMERCIAL DEVELOPMENT The airport city is well positioned to become the Iranian core of production.

To create incentives for international manufacturing companies to locate in Iran, the government has assigned a Free Zone and Special Economic Zones in the IKAC development area.

A second major sector, logistics, is planned on a 1,800 hectare site with 37,000 jobs related to it. Furthermore, 315 hectares are dedicated to an R&D campus and 287 hectares are reserved for mixed-use urban development and a Central Business District.

Landside connectivity is essential to allow IKAC to develop into a national logistics hub. Indeed, great hinterland connections are vital for businesses to bring their products to markets in both Iran and abroad and vice versa.

A well-structured framework of roads will allow for easy access to all areas within the airport city. Two metro lines will also give IKAC direct access to the capital.

The natural qualities of the airport city site have been embraced to maximise its APA Issue 3, 2017

potential to contribute to creating a high quality environment.

International standard residential areas are planned in the hills south of the airport city, with great views of IKAC and the airport, whilst leaving vast areas of flatlands dedicated to the logistics and manufacturing areas.

The arid, yet beautiful valley, which had been shaped by a river in the past, can aid in creating a sense of place through identifiable, high quality green areas.

INTEGRATED APPROACH

A successful airport city development depends on a vision based on an integrated approach; one that focuses on creating economic value chains, whilst establishing a quality of life that has regional and international appeal.

Imam Khomeini International Airport and its airport city have the potential to become outstanding developments that showcase the best of Iran, boost economic growth and can compete against some of the regionâ&#x20AC;&#x2122;s biggest cities.

APA

28

ASIA-PACIFIC AIRPORTS MAGAZINE

COMMERCIAL DEVELOPMENT

Winning ways Asia-Pacific Airports discovers that Ever Rich Duty Free plays its part in the customer service success of Taoyuan International Airport.

T

aoyuan International Airport is fast gaining a reputation for itself as one of the world’s most customer-focused and passenger friendly airports.

Indeed, Taoyuan International Airport (TPE) was recently named the best airport in the world in the 25-40mppa category in ACI’s annual Airport Service Quality (ASQ) customer satisfaction survey.

It also won the best airport by size and region for Asia-Pacific in the ASQ awards, which in 2016, were based on the results of 600,000 individual passenger surveys at 318 airports across the globe.

And it doesn’t end there as shortly after ACI announced this year’s ASQ winners, Taoyuan International Airport was rated as having the best airport staff in the world in SKYTRAX’s 2017 World Airport Awards.

It is the second time TPE has received the honour after being crowned number one in the world in 2015.

Dar-Jen Tseng, chairman of Taoyuan International Airport Co (TIAC), attributes the airport’s success to the outstanding levels of customer service provided by TPE’s 30,000 staff from airline personnel at check-in desks and government agencies (Immigration, Customs and Security) to retail and F&B employees.

As the airport’s long-term partner, Ever Rich Duty Free Shop, not only APA Issue 3, 2017

shares the credit but also feels grateful for the recognition.

It prides itself in its devotion to providing each passenger with a top notch shopping experience through the variety of duty free goods on offer and the warm welcome and service of its staff.

Ever Rich staff, for example, were the first to introduce free product sampling in the terminals, including local teas and tasty snacks as a way to showcase ‘Taiwanstyle’ hospitality.

The company believes that its motto of ‘service from the heart’ can clearly be seen in the quality of service provided by its employees, who include pink beret wearing meet and greet staff that are only too happy to offer help and advice to passengers.

Ever Rich also holds many cultural and promotional events, which not only boost sales and create a lively airport environment, but also represent local culture.

And it has dedicated nearly 50% of its airside facilities for non-business use, such as an Internet area, nursery room, art gallery and service counters.

It believes that its ‘Pride of Taiwan’ and ‘Beauty of Taiwan’ themed waiting lounges are unique and culturally representative of the country, and without doubt they have contributed towards it winning Frontier Magazine’s ‘Airport Retailer of the Year: Top-achieving Single Location’ award.

29

ASIA-PACIFIC AIRPORTS MAGAZINE

COMMERCIAL DEVELOPMENT

Ever Rich has been the airport’s duty-free shopping provider for nearly 20 years and today has more than 2,000 dedicated personnel based at Taoyuan International Airport – more than double the ratio of staff to passengers than its nearest competitor at Hong Kong International Airport.

The total includes 300 staff employed exclusively in information and traveller services rather than sales. They man TPE’s customer service counters and assist passengers with everyday travel queries as well as going that extra mile by providing complimentary stroller rentals, photocopying/printing services and gift wrapping when appropriate.

Ever Rich celebrated TPE breaking the 40 million passengers per annum barrier for the first time last year by holding a lucky draw that offered entrants the chance to win a Mercedes Benz car.

The airport actually handled a record 42.3 million in 2016, which means that in 2017 it will be competing against the biggest, and arguably best airports on the planet for the first time in ACI’s ASQ programme after moving up from the 25-40mppa to the 40mppa plus category.

The new competition will be tough, but Ever Rich claims that it is looking forward to it and is well prepared for the challenge as it constantly reviews and refines its services to ensure that it delivers the high quality service that passengers want.

When it comes to the delivery of good customer service, Ever Rich notes that it realises the importance of training and, as a result, in addition to in-house training, it encourages and gives employees the opportunity to take part in external classes to build up their skillset.

Finally, Ever Rich is a firm believer in the importance of corporate social responsibility (CSR), and this philosophy ensured that its staff were actively involved in nearly 500 community projects last year, and these efforts have continued into 2017.

The commitment means that staff regularly visit nursing and care homes to help out and brighten up the day of residents.

Ever Rich’s in-house magazine, B Paper, regularly reports on the selflessness of its employees, creative ideas that staff have come up with, the charity work engaged in by its different departments, and important events within the company.

Its commitment to service and aid has even had life-saving consequences as the company donated more than 20 Automated External Defibrillators (AED) machines to TPE, one of which was used to revive a 42-year old heart attack victim a few years ago.

Sensitive to the local culture, committed to customer service and always looking to improve its offerings, Taoyuan International Airport has a partner it can rely on for the long-haul. www.aci-apa.com

APA

30

ASIA-PACIFIC AIRPORTS MAGAZINE

COMMERCIAL DEVELOPMENT

Driving innovation Ivo Favotto reviews a new study that clearly shows that car parking, so important to the bottom line of most airports, is becoming increasingly innovative and dynamic.

L

et’s be honest, airport car parking has never been considered on the cool side of airport management and probably never will be despite its obvious importance as a key revenue generator.

Indeed, it is probably fair to say that it is viewed as less exotic than other sources of revenues such as airport advertising, duty free shopping and F&B outlets, and maybe for this reason car parking remains to this day a relatively understudied area of airport management.

And yet, never has car parking been so interesting or crucial to the commercial success of an airport business.

Not only is car parking an increasingly important source of revenue for most airports, it is also an area undergoing massive, technologically-driven upheaval in the form on online booking tools and advanced management technologies that are: – Driving revenue growth through the adoption of airline-like yield management practices improving efficient asset utilisation; – Allowing for greater product segmentation (some airports have up to 10 different car parking ‘products’

APA Issue 3, 2017

–

–

–

again improving both revenue and the customer experience; Reducing the often highly politicised nature of car parking charges by increasing pricing opacity as airports move away from standard drive-up rates to prices driven by factors such as; season, day of the week and time of the day; Creating new methods for airports to interact with their local communities through database and social media interaction with car park users; and Providing tools for airports to compete more effectively with off-airport car parking providers, taxis and ground transport disrupters such as Uber and Lyft.

For these reasons, a comprehensive new report, The Airport Car Parking Study (the ACP Study) has been released by The Mercurius Group – an international consultancy specialising in maximising commercial activities – and The Moodie Davitt Report.

ABOUT THE ACP STUDY

The ACP Study covered 336 airports in three mega regions (Europe, Asia-Pacific

ASIA-PACIFIC AIRPORTS MAGAZINE

Source: The Airport Car Parking Study, 2016

and the Americas) and 23 sub-regions across 70 countries and examined four main car park types: • Short Term term parking (typically for less than 24 hours and nearest to terminal buildings) – provided by 100% of airports in the Study; • Long-term parking (typically for more than 24 hours and further away from terminal buildings) – provided by 95% of airports; • Premium parking (typically providing additional benefits including terminal proximity, fast-track access, wider space etc) – provided by 31% of airports; and • Valet parking (the most convenient of all parking types) – provided by 28% of airports.

In addition to benchmarking the level of prices at each type of car parking, the ACP Study also examined the structure of prices.

These included ‘free parking periods’, ‘daily rates’ and ‘additional services’ such as facilities available for passengers with reduced mobility, electric vehicle charging and even a service to dig out your snow covered car!

ONLINE BOOKING TOOLS

Critically, the ACP Study devotes an entire chapter to the phenomenon of Online Booking Tools. More than any other technology, online booking tools are revolutionising airport car parking, that is until driverless cars come along!

In fact online booking tools were utilised by 43% of airports in the Study. The take-up rate by region and by airport size is highlighted in Figure 1 above.

The highest take-up rate of online booking tools is in Europe at 65%. Within Europe, one sub-region, Britain & Ireland, had a 100% utilisation rate, with other sub-regions such as the Nordics and the Iberian Peninsula not far behind with 93% and 90% respectively.

In the Americas, the take-up rate for online booking tools was low, driven largely by US and Central and South American sub-regions.

Canadian airports were the exception, with a take-up rate of 88%.

Asia-Pacific had the lowest take-up rate of all the regions at 20%, with some sub-regions having a zero take-up rate (Greater China, for example) and others, such as Australia and New Zealand, having a high take-up rate at 65%.

The ACP Study also found that online booking tools are not the preserve of large airports. In fact, mid-sized airports had the highest take-up rates, with 55% of airports within the 5-10mppa band implementing online booking tools.

The largest airports (30mppa+) and the smallest airports (0-2mppa) had the lowest and below average take-up rates.

Neither are online booking tools just for show. Recently, Sydney Airport, reported that in 2016, more than 50% of their entire car parking revenue was through their online booking tool. www.aci-apa.com

COMMERCIAL DEVELOPMENT

Figure 1 - Number of airports with an Online Booking Tool

31

32

ASIA-PACIFIC AIRPORTS MAGAZINE

COMMERCIAL DEVELOPMENT

Figure 2- Index of 24-hour Short Term Parking Prices by Sub-Region Sub-regions: The Americas: USA South, Central & South America, Canada, USA West, USA Mid-West, USA Northeast Asia-Pacific: India & Other Asia, Greater China, Japan & Korea, Australia & New Zealand, South East Asia, Middle East Europe: Turkey & The Balkans, Iberian Peninsula, Central Europe, Russia & The Baltics, France, Italy, Germany, Benelux, Nordics, Alpine and British & Ireland Source: The Airport Car Parking Study, 2016

Online booking tools offer many advantages for airports. They include greater customer service; better inventory and capacity management; better demand management during peaks; operational efficiencies; cash flow benefits; cancellation policy and overbooking benefits; up-selling and cross-selling opportunities; customer relationship management; and competition management.

The uptake of online car park booking also suggests that it offers benefits for the consumer as well, such as peace-of-mind, convenience and lower prices (under certain conditions).

SHORT TERM PARKING PRICE BENCHMARKS

The headline indicator in any discussion on airport parking is the 24-hour Short Term parking rate. This is the most common measure by which consumers (and politicians) have historically measured the reasonableness of airport car parking prices.

Indeed, Short Term parking prices also set the consumerâ&#x20AC;&#x2122;s value perception for the entire airport, particularly retail. It is such a touchy subject that in many countries, regulatory authorities and competition commissions carefully monitor car parking prices.

Notwithstanding the opacity brought about by online booking tools and yield management practices, setting the 24-hour Short Term parking rate is a key consideration for airports.

The Mercurius Groupâ&#x20AC;&#x2122;s 24 hour Car Parking Pricing Tool (CPPT) takes into consideration factors including demand vs supply, downtown parking prices, average taxi/Uber prices, other APA Issue 3, 2017

ground transport prices and off-airport competition to determine maximum 24 hour Short Term price levels.

The level of Short Term parking prices by each of the 23 sub-regions in the ACP Study is shown above in Figure 2.

The highest average Short Term parking prices were found in the Middle East (Index 189 relative to the average of all airports), Britain and Ireland (Index 178) and the Alpine region (Index 142).

Worthy of note is that while the average prices are higher in the Middle East, the Britain & Ireland sub-region contained the airports with the highest (Index 322) and second highest (Index 315) prices in the Study.

The lowest average Short Term parking prices were found in India and Other Asia category (Index 37), Turkey & The Balkans (Index 57) and Greater China (Index 59).

Although prices in The Americas were on average lower overall, there were six subregions with lower prices than the lowest sub-region in The Americas.

Interestingly, airports in The Americas had both the lowest average prices and the lowest variability of prices by sub-region. Only 32 index points separates the highest and lowest sub-regions in The Americas, compared to 152 index points in Asia-Pacific and 121 index points in Europe.

ABOUT THE AUTHOR

Ivo Favotto is managing director of The Mercurius Group. For any inquiries or to purchase the Airport Car Parking Study, contact him at Ifavotto@themercuriusgroup.com

APA

34

ASIA-PACIFIC AIRPORTS MAGAZINE

GLOBAL AIRPORT OPERATORS

Going global What Asia-Pacific based companies own, operate or have shares in airports across the world? Joe Bates investigates.

CHANGI AIRPORTS INTERNATIONAL (CAI)

World Headquarters: Singapore Airports 100% owned and operated: None.

Others: The wholly-owned subsidiary of Singapore Changi operator, Changi Airport Group (CAG), CAI has a 40% share in the consortium responsible for operating Rio de Janeiro’s Tom Jobim International Airport (Galeão).

In Russia, CAI has a 30% stake in Basel Aero, the management company trusted to develop the airports of Krasnodar, Sochi, Anapa and Gelendzhik in Krasnodar Krai.

The other stakeholders in the joint venture are Russia’s Basic Element group and OJSC Sberbank.

Also in Russia, CAI has a 33.3% stake in the consortium responsible for operating APA Issue 3, 2017

Vladivostok International Airport. Investment partners Basic Element and the Russia Direct Investment Fund (RDIF) also have a 33.3% shareholding in the gateway.

Elsewhere, in India, CAI has a 36.7% holding in Bengal Aerotropolis Project Ltd, which is developing a greenfield airport and township in Durgapur in West Bengal, and in Saudi Arabia it spearheads the consortium responsible for operating and managing Jeddah’s King Abdulaziz International Airport and has managed King Fahd International Airport since 2008.

CAI is also a key partner in the consortium that has signed a Framework Agreement with Myanmar’s Department of Civil Aviation designed to pave the way for the concession for Yangon’s new Hanthawaddy International Airport. The consortium comprises CAI (20%),

ASIA-PACIFIC AIRPORTS MAGAZINE

GMR AIRPORTS LIMITED (GAL)

World Headquarters: Bengaluru, India Airports 100% owned and operated: None.

Others: In partnership with local company, Megawide Construction Corporation, GMR has a 25-year operating concession for Mactan-Cebu International Airport in The Philippines.

On home turf in India, GMR Airports Limited (GAL) operates the gateways of Hyderabad–Rajiv Gandhi and Delhi-Indira Gandhi, courtesy of 63% and 64% shareholdings respectively in operators GMR Hyderabad International Airport (GHIAL) and Delhi International Airport Ltd (DIAL).

Plans to expand/reduce portfolio: GMR is actively looking to expand its global airport portfolio.

News: The award of the concession to build, 100% own and operate Goa’s new Mopa International Airport in India is a major development for GMR. Wholly owned subsidiary, GMR Goa International Airport Limited (GGIAL), has signed a 40-year concession agreement for the new airport, the first phase of which is expected to open in 2019/2020. The deal includes the possibility for a 20-year extension to the concession.

In Europe, GMR Airports Limited (GAL) has joined forces with the GEK-Terna Group to submit the winning €530 bid for the concession to build and operate the new Kastelli Airport in Crete, Greece. The deal is awaiting approval from the Greek parliament, which is expected before the end of the year.

The gateway will replace Heraklion’s Nikos Kazantzakis International Airport and is believed to have the potential to become Greece’s second busiest airport.

Quote: GAL’s president for finance and business development, Sidharath Kapur, says: “Goa, the location of Mopa International Airport, is the most prominent tourist destination in India and Crete is the largest and most visited island in Greece.

Traffic in Goa reached 7mppa in 2016 and is growing at over 30% per annum, while current traffic at Kastelli is 7mppa, which is also growing at steady rate. Both airports are primarily tourist airports, which present an attractive avenue to maximise non-aero revenues.

“Mopa will further consolidate our position as the largest airport developer in India while Crete Airport marks the first foray of GMR in to the European market.”

INCHEON INTERNATIONAL AIRPORT CORPORATION (IIAC)

World Headquarters: Incheon, South Korea Airports 100% owned and operated: Incheon International Airport in South Korea.

Others: It has a 5% stake in Khabarovsk Novy Airport in eastern Russia.

Plans to expand/reduce portfolio: It has revealed that it intends selling its shares in Khabarovosk Novy Airport later this year.

News: Incheon exports its expertise globally through a series of management and consultancy contracts. These include acting as an operations consultant to IGA Havalimani İşletmesi AS for the €10.2 billion Istanbul New Airport; developing a national aviation master plan for Paraguay; and acting as an advisor for commercial operations in Terminal 3 at Jakarta Soekarno-Hatta International Airport.

www.aci-apa.com

GLOBAL AIRPORT OPERATORS

JGC Corporation (55%) and Yongnam Holdings Limited (25%).

Plans to expand/reduce portfolio: Always looking for expansion opportunities.

News: On 1 May this year Saudi Arabia’s General Authority of Civil Aviation (GACA) named a CAI-led consortium as the winning bidder for the 20-year concession to operate Jeddah’s King Abdulaziz International Airport. CAI has also recently signed a commercial joint venture agreement with China’s Chongqing Airport Group (CAGC). The agreement – which is part of the Chongqing Connectivity Initiative (CCI) between Singapore and Chongqing – will see both companies collaborating to enhance the retail/F&B offerings at Chongqing Jiangbei International Airport.

35

36

ASIA-PACIFIC AIRPORTS MAGAZINE

GLOBAL AIRPORT OPERATORS CHANGI AIRPORTS INTERNATIONAL (CAI) – IN IT FOR THE LONG-HAUL

CEO, Liang Song Lim, notes that CAI’s ventures into Russia and Brazil have been highly successful to date, demonstrated by steady traffic growth and Sochi Airport’s success in ACI’s Airport Service Quality (ASQ) customer satisfaction survey.

He is also quick to point out that CAI is a long-term investor and since taking over Tom Jobim International Airport in 2014, the consortium comprising CAI, Odebrecht Transport and Infraero has invested R$2 billion on new infrastructure that has increased the airport’s capacity by nearly 90% to 37.5mppa.

“We have also introduced a wide range of innovations in the airport, paving the way for airport operator, RIOgaleão, to achieve ISO 9001 certification for its quality management system in 2016,” he says.

“We remain committed to developing Tom Jobim International Airport into a world-class gateway into the region, with expanded links to Asia, especially China, which we believe holds untapped potential in terms of Brazil’s fantastic tourism appeal; and a positive impact on ancillary businesses and employment.”

Talking about the competitiveness of the airport investment market today, Lim tells Asia-Pacific Airports magazine: “In the past, airport operators were the primary investors.

The landscape has changed significantly in recent years, however, and increasingly financial investors are coming into the picture, forming consortia with airport operators, with the aim of enhancing the asset through both operational and financial structuring improvements.

“Other players include conglomerates seeking to increase the vertical integration of their other business such as in construction. Concessionaires in ports, roads and other infrastructure projects are also seeking to expand into this space.”

In addition to being an equity investor in airports outside of Singapore, CAI also exports its expertise internationally in the fields of hub and route development; commercial and retail development; operational efficiency and service quality (including ORAT and event management); airport planning and engineering; human capital development; and integrated management.

“We combine the expertise gained from the development of Singapore Changi with our experience across multiple geographies and airport assets to help partner airports deliver a best-in-class travel experience while optimising the airport’s full commercial value,” he says.

APA Issue 3, 2017

ASIA-PACIFIC AIRPORTS MAGAZINE

World Headquarters: Kuala Lumpur Airports 100% owned and operated: Kuala Lumpur International Airport and 38 other Malaysian gateways that include the international airports of Langkawi, Kota Kinabalu, Kuching and Penang; Istanbul– Sabiha Gökçen (ISGIA) in Turkey.

Others: Malaysia Airports has an 11% stake in GHIAL, the GMR-led operator of Hyderabad–Rajiv Gandhi International Airport in India.

Plans to expand/reduce portfolio: Increasing its international footprint is a key element of MAHB’s Runway to Success 2020 (RtS2020) business plan.

News: Although it hasn’t added to its global airport portfolio since increasing its shareholding in ISGIA in 2014, and has since disposed of its 10% stake in India’s Delhi-Indira Gandhi International Airport, Malaysia Airports remains on the lookout for new investment opportunities.

Its RtS2020 business plan states: “Our international expansion efforts will be focused on making strategic long-term investments in airport assets. We will use a strategic approach to invest in selected international assets.

“These investments will allow us to benefit from a continuous revenue stream and contribute to group-level accretion. It will also have the added advantage of increasing our international footprint and export core airport capabilities.

We will export our consultancy capabilities and leverage our airport operator capabilities to improve newly-acquired asset efficiency and uplift profitability.”

TAV AIRPORTS HOLDING

World headquarters: Istanbul, Turkey Airports 100% owned and operated: Istanbul Atatürk, Ankara Esenboğa, Izmir Adnan Menderes, Milas-Bodrum and Antalya–Gazipasa in Turkey, and Skopje Alexander the Great and Ohrid St Paul the Apostle airports in Macedonia.

Others: It has a controlling stake in the companies responsible for operating Tbilisi (80%) and Batumi (76%) airports in Georgia and holds a majority 67% shareholding in both Monastir Habib Bourgiba and Enfidha-Hammamet airports in Tunisia.

In Saudi Arabia the TAV-led Tibah Airports consortium (TAV, Saudi Oger and Al Rajhi Holding Group each with a 33.3% stake) has a 25-year concession to operate Medina’s Prince Mohammad bin Abdulaziz International Airport.

Elsewhere in the Kingdom, TAV has signed a 30-year concession to operate and develop Qassim and Ha’il airports in partnership with Al Rajhi Holding Group; and Yanbu Prince Abdul Mohsin Bin Abdulaziz International Airport, again with the Al Rajhi Group, through another 30-year contract.

In Europe, TAV has a 15% stake in the ZAIC consortium that has a 30-year concession to operate and develop Zagreb Airport in Croatia. Its consortium partners are ADP Management, Bouygues Bâtiment International (BBI), Viadukt (a Croatian construction company), Marguerite Fund, and IFC, a member of World Bank Group.

Additionally, TAV operates commercial spaces in Riga, Latvia.

Plans to expand/reduce portfolio: The addition of more airports is almost a certainty.

News: Ha’il Regional Airport and Qassim’s Prince Nayef bin Abdulaziz Airport are the latest additions to TAV’s ever-growing portfolio, the company signing a 30-year concession agreement with the Saudi General Authority of Civil Aviation (GACA) in April 2017.

Quote: “TAV has become one of the world’s highly-preferred brands thanks to the know-how acquired in the airport construction and operation business,” says TAV Airports president and CEO, Sani Şener. “Our success in the Medinah Airport project, which was the first airport privatisation project in Saudi Arabia, APA opened new doors in this country.” www.aci-apa.com

GLOBAL AIRPORT OPERATORS

MALAYSIA AIRPORTS HOLDINGS BERHAD (MAHB)

37

38

ASIA-PACIFIC AIRPORTS MAGAZINE

SECTION WBP NEWS TITLE

WORLD BUSINESS PARTNERS

IN THE SPOTLIGHT WBP PROFILES

MOTT MACDONALD-LED CONSORTIUM TO DESIGN AUCKLAND’S NEW TERMINAL Auckland Airport has confirmed that a Mott MacDonald-led consortium will spearhead the design of its new integrated terminal.

The consortium – which also includes Grimshaw, Architectus and Holmes Consulting – has been appointed to concept design a combined domestic and international terminal at the New Zealand gateway.

The project forms part of the airport’s Terminal Development Plan, which aims to provide an expanded single terminal to accommodate further growth in international and domestic air travel.

Auckland Airport has experienced significant growth in passenger numbers over recent years and has committed to building a worldclass airport that can serve New Zealand in the years to come.

The scope of the design project covers building works over the next 10 years. This includes the new integrated domestic terminal, a significant expansion of border processing and the integration of extensive new transport and car parking facilities.

The concept design of the terminal is expected to be completed in early 2018, with Mott MacDonald responsible for the overall airport planning and design leadership, as well as all engineering disciplines, with structural and fire engineering provided in partnership with Holmes Consulting.

Auckland Airport chief executive Adrian Littlewood, says: “The selected consortium’s experience covers over 1,000 aviation projects in 120 countries across 260 airports.

“In addition to specialist experience and knowledge, the consortium’s architects have a proven record of successfully bringing local cultural influence into the fabric of their passenger focused design.

“This is a significant factor for us as we build a world class airport with a uniquely New Zealand feel.”

APA Issue 3, 2017

QNA RESEARCH LAB Location: Taipei, Taiwan Contact: Fu Hua Chang, CEO and research director E: QNASCOTT1@yahoo.com.tw W: www.qna.com.tw Dyland Lianne Market Research & Co (QNA Research Lab) is committed to providing client consumer market information and main global market commercial information through professional market research in co-operation with specialised research institutions. We are not only a trustworthy market research partner, but also the catalyst to turn your company global. With market research centres in Taiwan, Beijing, Shanghai and Singapore, we provide all-round service, specialising in research design, sampling methods, questionnaire development, data analysis and statistics models.

NEC CORPORATION Location: Tokyo, Japan Contact: Akihiko Ichikawa, manager, Air Transportation Solutions Division E: t-yano@aj.jp.nec.com W: www.nec.com NEC Corporation is one of the world’s leading providers of internet, broadband network and enterprise business solutions dedicated to meeting the specialised needs of our diverse and global base of customers. NEC has supplied many portions of air traffic control systems for more than 30 years and provided IT solutions for airport operations, such as flight information display systems and security systems.

APA

APA 3 2017-cover_ads.indd 3

02/10/2017 14:27

APA 3 2017-cover_ads.indd 4

02/10/2017 14:27