Asia-Pacific Airports - Issue 4, 2018

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

Award winning airports Spotlight on: Award winning airports Featured airport: Hyderabad-Rajiv Gandhi

Issue 4, 2018 www.aci-apa.com

Event review: The Trinity Forum Plus: Innovative retail & Airport IT trends

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ASIA-PACIFIC AIRPORTS MAGAZINE

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Asia-Pacific Airports Issue 4, 2018

Award winning airports Spotlight on: Award winning airports Featured airport: Hyderabad-Rajiv Gandhi

Plus: Innovative retail & Airport IT trends

6 View from the top

16 Catalyst for growth

Regional director, Patti Chau, provides her thoughts on an exciting and productive end to 2018 for ACI Asia-Pacific.

8 Exciting times

Airport retail and F&B innovation was top of the agenda at the recent Trinity Forum in Shanghai. Asia- Pacific Airports looks back at some of the highlights.

12 ACI news Vivian Fung reports on the latest news, views and developments from across the busy Asia-Pacific region.

Issue 4, 2018 www.aci-apa.com

Event review: The Trinity Forum Published by

Hyderabad’s Rajiv Gandhi International Airport has celebrated its 10th anniversary by opening a new Interim International Departures Terminal and revealing some bold expansion plans, writes Joe Bates.

22 Celebration time

Our picture round-up pays tribute to the Asia-Pacific gateways whose outstanding levels of service led to them winning Airport Service Quality (ASQ) customer satisfaction awards.

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CONTENTS

The official publication of ACI Asia-Pacific

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CONTENTS 24 Green approach

Asia-Pacific Airports turns the spotlight on the region’s ‘green’ leaders, environmental award winners and sustainability trendsetters.

26 Time for a nap

As well as being customer service champions and environmental pioneers, Asia-Pacific airports are also fast developing a reputation for being the most sleep friendly in the world, writes Joe Bates.

30 Intelligent travel

34 The future is green

Asia-Pacific Airports reports on some of the big stories to emerge from the Global Sustainable Aviation Summit in Geneva.

36 Better buys

Alex Avery looks at how innovation can shape the future of airport retail/F&B and enhance the passenger experience.

40 Industry news News, views and reviews from ACI’s regional and global World Business Partners.

Airport interest in blockchain technology is growing as the aviation industry invests around $40 billion per annum on IT, according to SITA’s Air Transport IT Insights study.

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 4, 2018

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

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Asia-Pacific Airports (APA) is published four times a year for the members of ACI Asia-Pacific. The opinions and views expressed in APA are those of the authors and do not necessarily reflect an ACI policy or position.

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

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VIEW FROM THE TOP Regional director, Patti Chau, provides her thoughts on an exciting and productive end to 2018 for ACI Asia-Pacific.

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ithout doubt 2018 will go down as one of the busiest years on record for the ACI Asia-Pacific Regional Office, and it is certainly ending on a high with the success of a number of events we have either organised or participated in on behalf of the region’s airports.

These included the ACI Asia-Pacific Small and Emerging Airports Seminar in Malaysia; Trinity Forum in China; and the ICAO Conference of Directors General of Civil Aviation, Asia and Pacific Regions in Fiji, where we advocated on behalf of the airport community.

SMALL AND IMPORTANT In early October we organised the ACI Asia-Pacific Small and Emerging Airports Seminar with the generous support of our host Malaysia Airports Holdings Berhad.

Held in Langkawi, Malaysia, the event attracted over 160 participants from 26 countries and territories across the Asia-Pacific region, making it one of our most successful seminars to date.

On the agenda were a number of issues of particular interest to small and emerging airports, which were covered in a range of formats and by a host of well-known industry figures (see page 12 for more details).

This biennial event is dedicated to the small and emerging airports in the Asia-Pacific region and we look forward to welcoming you to the next one in 2020!

TRINITY FORUM The Trinity Forum returned to Shanghai, China, in late October/early November 2018, and once again we were able to deliver a successful show APA Issue 4, 2018

with our partners ACI World and the Moodie Davitt Report.

The event attracted a record attendance of over 500 delegates from across the globe and proved an excellent showcase for airport retail as well as a platform for improved co-operation and understanding between airports, retail concessionaries and brands.

We would like to thank our host, Shanghai Airport Authority, for their hospitality and support throughout the planning and execution of the event, which you can read more about on pages 8-10 of this issue.

I am sure participants will agree that this was one of the most memorable Trinity Forum’s of recent years. Next year’s event will be held in Doha, Qatar, for the first time on October 30-31, 2019.

ICAO CONFERENCE A key mission of ACI is to promote the collective interest of the world’s airports and the communities they serve and encourage professional excellence in airport operations and management, which we do on a regular basis at ICAO conferences and meetings.

The most recent ICAO event attended by ACI was October’s 55th ICAO Conference of Directors General of Civil Aviation (DGCA/55), Asia and Pacific Regions, in Nadi, Fiji, where the theme was ‘Collaboration and Harmonisation for Safe, Secure and Sustainable Aviation in the Asia Pacific Region’.

ACI presented four discussion papers on ‘Airport networks and the sustainability of small airports’, advocating for a position that States and airport operators should have the

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day-to-day operational needs to minimise negative environmental impact and support sustainable growth.

Moreover, it provides several elements tailored to the individual needs of airports and proposes effective solutions which lead to improving the environmental performance of the airports participating in the programme.

The Environmental Review Team performed a peer review and exchanged best practices on site that covered a host of environmental issues that included energy management, climate change mitigation, local air quality and aircraft noise management.

Also under the microscope was water management, waste management, environmental emergency management, soil contamination management, biodiversity management and construction environmental management.

APEX IN SECURITY

GENDER EQUALITY SURVEY

We continue to make progress in terms of APEX Review in our region. Indeed, ACI is delighted that the first ever APEX in Security Review in China was successfully conducted at Haikou Meilan International Airport in October.

Queen Alia International Airport in Jordan also hosted a review in early November, sponsored by the European Union.

I am really glad to report that the programme is growing momentum in our region and I hope that you will show the same enthusiasm for the recently launched pilot APEX in Environment Review.

ACI is joining forces with four other stakeholder organisations to launch a global study to identify means by which the aviation and aerospace industry can further and faster recruit and advance women into leadership roles.

Called ‘Soaring through the glass ceiling’ and drafted in collaboration with IATA, the Aerospace Industries Association (AIA), the International Aviation Women’s Association (IAWA) and the Korn Ferry-Civil Aviation Practice (KF-CAP), it will be released in the second quarter of 2019.

We believe that although women have made great strides in many professional fields and industries, there remains a gap at the leadership level and more can, and should be done, to enable the advancement of women into important roles in the global aviation and aerospace sector.

The aim of this joint study is to identify the root causes of any barriers to advancement that may have hindered progress to date. More importantly, the study will highlight those practices and policies which have been successful in promoting gender diversity in leadership. In so doing, the study will surface and document best practices for all stakeholders to consider, whether at the overall industry level or at the level of specific industry participants or APA educational institutions.

APEX IN ENVIRONMENT The first pilot Airport Excellence (APEX) in Environment Review in our region was conducted at Adi Sumarmo International Airport in Sarakarta, Indonesia, in August.

ACI formulated an Environmental Review Team consisting of experts from ACI World and AsiaPacific, the Airport Authority Hong Kong and Brisbane Airport Corporation Pty Ltd to conduct the review.

The programme is based on ACI best practices as well as ICAO Guidance Material and Environment Management Systems (EMS).

APEX in Environment combines the mandate for regulatory compliance with an airport’s actual

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freedom and flexibility to decide whether or not to apply cross-subsidisation according to local circumstances; ‘Creating fertile grounds for private investment in airports’, recommending privatisation as one of the possible solutions to fund needed infrastructure development; ‘Recommended practices on transparency and consultation with airlines in setting airport charges’; and ‘Climate change adaptation for airports’.

The five-day conference covered all aspects of civil aviation matters including aviation safety; air navigation; aviation security and facilitation; the economic development of air transport; and environment, technical and regional co-operation.

Workshops were organised to help States fulfil commitments under the Beijing Declaration, ratified in January 2018, which included certification of all aerodromes by 2020.

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EVENTS: THE TRINITY FORUM

Exciting times Airport retail and F&B innovation was top of the agenda at the recent Trinity Forum in Shanghai. AsiaPacific Airports looks back at some of the highlights.

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CI World’s last big event of the year, The Trinity Forum, attracted over 500 delegates to Shanghai to address the theme of ‘The changing airport and travel retail commercial eco-system’.

The annual event brings together airports, concessionaires and brands to improve the understanding between these three crucial sectors and help the industry confront challenges, and seize opportunities, in the airport retail business for the benefit of the travelling consumer.

And, as usual, it didn’t disappoint with ACI World director general, Angela Gittens; Shanghai Airport Authority’s chairman of the board of directors, Yun Qin; Groupe ADP’s customer division director, Mathieu Daubert; and Sydney Airport’s general manager for retail, Glyn Williams, just a few of the impressive line-up of speakers to take the stage in the opening sessions of the event held at the grand Jing An Shangri-La Hotel in Shanghai.

Moodie Davitt Report founder and chairman, Martin Moodie, got proceedings underway with a heartfelt tribute to the late King Power International Group chairman, Vichai Srivaddhanaprabha, before going on to talk about the growing importance of China to travel retail, calling it the “epicentre” of the sector.

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He also touched on the challenges and opportunities facing travel retail, stating that if the industry is able to adapt to the changing eco-system, and can convert footfall into sales, the future looks bright.

“Mankind will continue to travel in ever greater numbers, and if our industry can aspire to deliver its unique combination of great brands, great food in great amphitheatres with great experiences, then the future is positive,” Moodie enthused.

He was followed by ACI World’s Gittens who reminded delegates about the important role airports play in boosting the global economy and how retail/F&B revenues account for a significant chunk of airport income.

“Airports are vital economic generators for the local, regional and national communities that they serve so it is critical that they make the most of retail and commercial innovation,” she remarked.

“This is the reason why The Trinity Forum is such an important event for airports as

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EVENTS: THE TRINITY FORUM

they seek to improve both their commercial offering as a source of non-aeronautical revenue and provide an exceptional passenger experience.

“We have found through our research that there is a positive link between overall passenger satisfaction and non-aeronautical revenue. On average, when satisfaction increases by 1%, non-aeronautical revenue increases by 1.5%.

“In addition, for most airports, prioritising customer service results in the greatest positive impact on non-aeronautical revenue – it can potentially deliver an even greater return on investment than can be achieved through traffic increases or expansion of commercial space.

“The retail industry is experiencing a dramatic shift, moving from the traditional retail store experience to the digital retail experience. Airports compete with city retailers and online stores. With the rapid digitisation of the retail business, airports

must seize every business opportunity to adapt to changing customers’ needs and the external environment.”

She added “Our ACI Airport Economics Report 2018 shows that airports’ nonaeronautical revenues account for 40% of total revenues. This revenue stream is much more diverse than aeronautical revenue and constitutes a vital component of an airport’s income statement.

“Its resulting bottom line is essential for the overall economic sustainability of airports, since aeronautical revenues generated from aviation activities are not sufficient to cover the full costs of providing and operating airport infrastructure.”

Next up was Shanghai Airport Authority’s Qin who noted that there are big plans to develop and grow the city’s Hongqiao and Pudong gateways, particularly in terms of their retail offerings and customer service levels.

The first keynote address of the conference was delivered by Charles Chen, president of the China Duty Free Group, who focused on the key factors affecting the Chinese market, and the ways that the industry can adapt to better serve Chinese travellers in the years ahead.

In terms of outbound passengers, said Chinese citizens travel more and spend more than any other nation and this pattern looks set to continue for the foreseeable future.

He noted that as China grows, the very nature of the Chinese traveller is changing, with the passenger dynamic becoming increasingly sophisticated and devise. So much so, in fact, that he believed it was now impossible to simply split them into three different groups – the middle classes, Millennials and Generation Z. Qin added that the new breed of Chinese travellers is increasingly looking for innovative new experiences and brands.

The next airport speaker on stage was Groupe ADP’s Daubert, who noted that today’s traveller was more health conscious, educated and aware than ever before and, as

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a result, were more interested in experiences and less convinced about the “bargains” offered by duty free.

He revealed that Groupe ADP’s response has been to focus more on service, personalisation and experience than price.

The strategy, he said, has seen it move away from the traditional approach to the layout and design of airport duty free offerings to one focused on Paris’s famous department stores.

And there is more to come at Charles de Gaulle and Orly airports as Daubert outlined plans to create 40,000sqm of new commercial space at the gateways over the next two years.

Sydney Airport’s Williams suggested that future innovation for airport duty free might be to take travel retail, and travel retail products, outside of the airport. “Why be limited to three bottles of alcohol when, potentially, it’s possible to sell customers a case and have it shipped to them at home,” he suggested.

Others making their mark on the first day included the executive vice president of Dubai Duty Free, Colm McLoughlin; Tito’s Homemade Vodka managing director, John McDonnell; and Harrods International director, Raj Assanand.

Airport highlights of a whirlwind second day included Budapest Airport’s head of retail and advertising, Dr Patrick Bohl, discussing the gateway’s BARTA (brand, airline, technology, airport) campaign in a panel session titled ‘Towards a new retail and consumer experience’.

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Auckland International Airport’s omnichannel manager, Jayne Wear, explained more about her airport’s ‘cross channel and connected experience’ approach to retail to appeal to the next generation of travellers.

While ACI World’s Airport Service Quality (ASQ) associate director, Dimitri Coll, told the audience more about the organisation’s annual customer satisfaction survey and the commercial performance insights it provides that can help airports boost their retail and F&B revenue.

Day two also featured two big panel debates, ‘Destination 2030 – where are the next steps on the travel retail journey?’ and ‘Reimagining the airport commercial offer’.

Airport representatives taking part in the second panel included Manchester Airport Group’s executive vice president for business development and lounges, Beth Brewster; Greater Toronto Airport Authority’s vice president for customer service and terminal services, Scott Collier; and Central Japan International Airport’s president and CEO, Masanao Tomozoe.

Tomozoe shared his company’s vision of the future, which he revealed would be focused on championing excellent customer service and a people first approach. The goal, he said, was on creating engaging experiences – in retail and beyond – and creating ‘sense of place’.

“We have been doing lots of crazy things to attract as many people as possible”, laughed Tomozoe, as he shared photos of activations featuring characters such as Pikachu and Hello Kitty.

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Regional update Vivian Fung reports on the latest news, views and developments from across the busy Asia-Pacific region.

BIG NUMBERS ATTEND SMALL AND EMERGING AIRPORTS SEMINAR Over 160 participants from 26 countries and territories across the Asia-Pacific region descended on beautiful Langkawi in October as Malaysia Airports Holdings Berhad (MAHB) generously hosted the ACI Asia-Pacific Small and Emerging Airports Seminar.

Delegates included representatives from 96 airport operators, regulators and service providers to the airport industry and, of course, a number of renowned speakers who provided their thoughts, insight and knowledge on a host of topics that included airport security, safety, environment, non-aeronautical revenue generation and cybersecurity.

The seminar was officially opened by Raja Azmi Raja Nazuddin, MAHB’s acting group CEO and chief financial officer; Sheikh Aimen bin Ahmed Al Hosni, secretary treasurer of ACI Asia-Pacific and CEO of Oman Airports Management Company; and Loke Siew Fook, Malaysia’s Minister of Transport.

Welcoming delegates, Al Hosni, noted: “ACI’s World Airport Traffic Forecasts [WATF] has identified that nine of the top 10 fastest growing countries in the world are from emerging and developing economies in Asia-Pacific and Middle East.

“The latest edition of WATF also reveals that emerging and developing economies will account for over 60% of the world’s passenger traffic by 2040.

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“Hence, it is crucial for the airport community to gather and honestly discuss and deliberate on issues that are relevant and important to small and emerging airports, in order to cope with and prepare to meet the fast-growing demands of the industry.”

The official opening was followed by a keynote address from Azmir Zain, chief operating officer of Malaysian Aviation Commission (MAVCOM). His presentation was titled the ‘Regulatory Framework of Malaysia: Promoting a Resilient Civil Aviation Industry to Support Malaysia’s Economic Growth’.

Next up was Arved von zur Muehlen, group chief marketing officer of Malaysia Airlines, who provided a fascinating talk about how his airline has rebuilt and refreshed its brand in the last few years.

The event also proved a success for the number of key airport service providers in attendance, the exhibitors reporting a lot of interest and interaction with participants.

This biennial event is dedicated to the small and emerging airports in the Asia-Pacific region.

Pictured above during the opening ceremony are (from left to right): Raja Azmi Raja Nazuddin; ACI World director general, Angela Gittens; Loke Siew Fook; MAHB chairman, Tan Sri Dato’ Seri Syed Anwar Jamalullail; Sheikh Aimen bin Ahmed Al Hosni; and ACI AsiaPacific’s regional director, Patti Chau.

March 12-14 ACI Airport Economics & Finance Conference and Exhibition London, UK

October 30-31 The Trinity Forum Doha, Qatar

2019

2019

November 26-28 April 2-4 ACI Airport Exchange ACI Asia-Pacific/World Abu Dhabi, UAE Annual General Assembly, Conference & Exhibition Hong Kong

ACI ASIA-PACIFIC BOARD PRESIDENT

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

FIRST VICE PRESIDENT

Emmanuel Menanteau* (Kansai Airports, Japan)

SECOND VICE PRESIDENTS

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

SECRETARY-TREASURER

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

IMMEDIATE PAST PRESIDENT

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

REGIONAL BOARD DIRECTORS

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

Eric Delobel (Cambodia Airports, Cambodia)

Sasisubha Sukontasap* (Airports of Thailand Public Co Ltd, Thailand)

Faiz Khan (Fiji Airports, Fiji)

Yun Qin (Shanghai Airport Authority, China)

Xue Song Liu* (Beijing Capital International Airport Co Ltd, China) Pedro Roy Martinez (AB Won Pat International Airport Authority, Guam) Guruprasad Mohapatra (Airports Authority of India, India) ACK Nair (Cochin International Airport Limited, India) Futoshi Osada (Narita International Airport Corporation, Japan)

Kejian Zhang (Guangdong Airport Authority, China)

REGIONAL BOARD DIRECTOR (WBP)

Greg Fordham (Airbiz Aviation Strategies Pty Ltd, Australia)

SPECIAL ADVISORS

Mohamed Yousif Al-Binfalah (Bahrain Airport Company, Bahrain) SGK Kishore (GMR Hyderabad International Airport Limited, Hyderabad, India)

* WGB member **Regional Advisor on WGB

The ACI Asia-Pacific region represents 107 members operating 586 airports in 48 countries and territories in Asia-Pacific and the Middle East. www.aci-apa.com

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ACI ASIA-PACIFIC REGIONAL COMMITTEES October was a productive month with three ACI Asia-Pacific Regional Committees, with meetings taking place in Seoul, Langkawi and Osaka respectively.

The last 2018 meeting of ACI Asia-Pacific’s Regional Operational Safety Committee was kindly hosted by Korea Airports Corporation in Seoul on October 8-10.

Members (pictured above) report that it was a productive meeting as the committee completed the drafting of the guidelines on ‘Accident Investigation and Root Cause Analysis’ and ‘Runway Safety Team’.

A representative from the International Federation of Airline Pilots Association (IFALPA) was invited to attend the meeting and discuss safety from the perspective of cockpit crew.

Langkawi, Malaysia (pictured left), provided the memorable backdrop for the last meeting of our Regional Economics Committee, which was held alongside the ACI Asia-Pacific Small and Emerging Airports Seminar.

The committee meeting was dedicated to topics related to ‘airport charges’ and heard presentations from members from Malaysia Airports and Hamad International Airport in Qatar.

Meanwhile, sunny Osaka (pictured above) was the setting for the mid-October meeting of ACI Asia-Pacific’s Regional Environment Committee. The event was hosted by Kansai Airports with over 40 participants, including members, observers and guest speakers.

It covered a wide range of topics including ICAO CAEP, ACI World updates, the APEX in Environment Pilot Programme, Working Groups’ reports, Green Airports Recognition and the World Health Organization’s new Environmental Noise Guidelines for the European region. The meeting also included a tour of Kansai Airport’s Solar Farm and Hydrogen Fuel Cell bus.

APA Issue 4, 2018

APA

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AIRPORT REPORT: HYDERABAD

Catalyst for growth Hyderabad’s Rajiv Gandhi International Airport has celebrated its 10th anniversary by opening a new Interim International Departures Terminal and revealing some bold expansion plans, writes Joe Bates.

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yderabad’s Rajiv Gandhi International Airport hasn’t looked back since its opening 10 years ago, the recent inauguration of its Interim International Departures Terminal providing a perfect example of just how it has grown over the last decade.

Built in Shamshabad, 24 kilometres south of Hyderabad, India’s first greenfield airport developed under the public-private partnership (PPP) model, replaced the city’s aging Begumpet Airport and handled 6.3 million passengers and 80,000 aircraft movements in 2009, its first calendar year of operations.

A decade of growth later and those figures now exceed 20 million passengers and 165,000 aircraft movements yearly.

Indeed, such has been its success that operator, GMR-Hyderabad International Airport Limited (GHIAL), is in the midst of expanding the gateway to avoid it becoming a victim of its own success.

Opened on October 23, 2018, the new Interim International Departures Terminal will ensure that India’s sixth biggest passenger gateway can continue to meet traffic demand while the existing passenger terminal building (PTB) is expanded to more than double the present capacity.

The new facility is used for check-in, and the security, immigration and customs processes for departing international passengers before they enter the main PTB, which contains all the retail and F&B outlets.

It is also equipped with a host of new innovative features such a dedicated APA Issue 4, 2018

concourse for premium passengers and India’s first remote hand baggage screening facility, which when coupled with the new automatic tray retrieval system (ATRS), promises to double the throughput at security checkpoints.

GBS Raju, the GMR Group’s business chairman for airports, says: “Hyderabad Airport has witnessed impressive growth, with the total traffic more than doubling over the past four years. This exclusive facility for international passengers is a testimony to GMR’s ability to proactively develop infrastructure and capacity to ensure unhindered growth of the civil aviation sector in the country.”

Talking about what comes next, GHIAL CEO, SGK Kishore, says: “The airport is currently handling around 20 million passengers annually and we expect the strong growth momentum to continue into the future.

“As a result, we have embarked on a large scale expansion project which will increase the airport’s capacity to up to 40 million passengers annually and also introduce a range of technology enabled solutions to deliver an enhanced airport experience for travellers.

“The projects include a modular expansion of all elements of the present integrated passenger terminal, construction of new aircraft parking bays and taxiways, and doubling the number of lanes on arrival/departure ramps at the forecourt.

“The ongoing $750 million expansion phase is expected to take around three years to complete.”

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AIRPORT REPORT: HYDERABAD

TRAFFIC GROWTH A record 18.2 million passengers passed through the airport in its 2017/2018 financial year and this is set to reach new heights in FY18/19 following “robust” double digit growth of 23% during the first nine months of 2018.

Kishore attributes the continued upward trajectory in traffic to a combination of the rising business and tourism appeal of Hyderabad, India’s buoyant economy, the airport’s large catchment area, its successful route development strategies and favourable government policies.

He notes that a range of reforms and policies aimed at aviation development, such the regional connectivity scheme, UDAN, which aim to make flying affordable for all Indians, will almost certainly ensure that traffic growth remains strong over the next few years.

And he is quick to point out that the airport is reaping the benefits of a decision

by the Telangana state government – Hyderabad is the joint capital of the Indian states of Telangana and Andhra Pradesh – to focus on establishing Hyderabad as a top global investment destination.

As a result, he says, in the last few years a number of leading global IT, technology, pharmaceutical and retail companies have chosen to make significant investments in Hyderabad, boosting the city’s economy and aiding the growth of traffic through Hyderabad Airport.

A total of 22 airlines currently operate international flights from Hyderabad, between them handling an average of 5,500 international departing passengers and 33 international flight departures daily to 18 destinations across the globe.

The top five airlines in terms of the international market from Hyderabad are Emirates, Air India, Etihad, IndiGo and Oman Air, while the biggest domestic carriers are IndiGo, SpiceJet, Air India, Jet Airways and GoAir. www.aci-apa.com

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AIRPORT REPORT: HYDERABAD SriLankan Airlines, Jazeera Airways and Flynas are all new additions to Hyderabad’s airline network, which has been boosted by five new carriers and 20 new routes in the past two years.

CARGO Hyderabad is also growing as a cargo hub and Kishore is confident that new facilities on the way, and the recent announcement that the airport’s cargo terminal has gained World Health Organisation’s Good Storage and Distribution Practices (WHOGSDP) certification for pharmaceuticals, will make the gateway even more attractive for shippers.

The WHO-GSDP certificate – awarded by SGS India, a leader in certifications in the pharmaceutical sector – underscores the airport’s commitment to and compliance with quality management standards and international requirements throughout the pharma supply chain.

“As a company which is committed to ensuring end-to-end product safety and its integrity, we are proud to achieve WHOGSDP certification,” admits Kishore.

“Our rigorous quality standards, specialty logistics expertise and meticulous execution enable us to meet the demands of the Pharma City and optimise the supply chain for our customers globally.”

He adds: “Going forward, we are focused on bringing in new products such as perishables and express cargo and on APA Issue 4, 2018

developing our cargo infrastructure. To cope with increasing demand, the existing cargo facilities are also set to undergo large scale expansion.”

Pharma products account for around 60% of the cargo exported from the airport today, which is in keeping with Hyderabad’s status as India’s pharmaceutical capital.

CUSTOMER SERVICE Kishore notes that GHIAL is a customer centric organisation and is proud of Hyderabad’s success in ACI’s annual Airport Service Quality (ASQ) customer satisfaction survey, in which it is currently ranked the best airport in the world in the 5-15mppa category.

He believes that the adoption of its ‘one family, one mission’ mantra, based on the commitment to working closely together with all airport stakeholders to ensure that they buy into its customer service philosophy and share common goals, has helped in its ASQ success.

As has the 2017 creation of the airport’s ‘Passenger is Prime’ programme, which has proved the catalyst for the launch of a number of collaborative, passenger centric initiatives to further enhance Hyderabad’s already growing reputation for providing outstanding customer service.

These include employing more than 50 passenger service associates (PSAs) whose sole task is to assist and help people as they travel through the fast-growing

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AIRPORT REPORT: HYDERABAD

Indian gateway, and the launch of the airport’s very own radio station.

The airport has also been an early adopter of new self-service technologies and cites the launch of India-first initiatives such as end-to-end e-boarding, the launch of express security checks and the elimination of hand baggage stamping as examples of enhancing the passenger experience at Hyderabad Airport.

“We are relentless in our focus on meeting the needs of our passengers and this philosophy and commitment to enhancing the airport experience has driven our success in ACI’s ASQ programme,” says Kishore.

HYDERABAD AIRPORT CITY Ever ambitious GHIAL has also unveiled plans to build its own airport city project, Hyderabad Airport City, that is expected to include dedicated business, health, education, fun, logistics and aerospace zones.

Within these zones there will be a convention centre, commercial office space, business parks, a “big box retail and lifestyle experience destination centre” and a GMR Aerospace & Industrial Park, which will have its own US FAA approved MRO facilities and Special Economic Zone (SEZ).

“Each area is being developed in line with our stated vision of contributing directly to the airport business and acting as the engine of economic growth for the state of Telangana and the entire region,” enthuses Kishore.

SUSTAINABLE GROWTH Despite its expansion plans, Kishore is quick to point out that GHIAL is committed to sustainable growth and this is backed up by the airport’s impressive track record of environmental achievements and community initiatives.

As you will read on the following pages, Hyderabad-Rajiv Gandhi International Airport is an environmental pioneer and leader, earning a host of awards that include becoming India’s first carbon APA Issue 4, 2018

neutral gateway in ACI’s Airport Carbon Accreditation programme.

Kishore reminds me that the airport’s passenger terminal was awarded Leadership in Energy and Environmental Design (LEED) ‘Silver’ status by the US Green Building Council.

The airport recently picked up an energy efficiency award from the Confederation of Indian Industry (CII) and a ‘Gold’ accolade in ACI Asia-Pacific’s Green Recognition initiative for its innovative waste management programmes.

Talking about the energy efficiency award, Kishore says: “This is testimony to our efforts to make the best use of the energy resources available. As a responsible corporate citizen, GHIAL is committed to exploring best-in-class energy efficient solutions.

“As a part of our ‘Passenger is Prime’ programme, we have deployed several eco-friendly measures such as electricpowered buggies, ground handling vehicles, baggage trolley movers and e-cars to name just a few.”

Its energy conservation efforts also include replacing all the halogen lights with LED lights in the terminal building, on

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TEN YEARS AND COUNTING

the apron and in offices, and very soon the entire airport will be converted to 100% LED lighting.

Referring to ACI Asia-Pacific’s Green Recognition award, he notes: “Environmental sustainability has been a key theme in the development of the Hyderabad Airport, and it permeates every aspect of the airport’s infrastructure and operations to this day.”

The airport recycles wastewater which it uses to flush toilets, cool the terminal and water trees and plants on the airport site.

It has its own composting plant for processing all food waste generated at the airport. The organic manure produced by the compost plant is then used to help maintain the flora and fauna across the airport site, which looks good and absorbs about 240 tonnes of CO2 per annum.

The airport also has a captive 10MW solar power plant which meets a sizeable chunk of its energy requirements.

And there’s more, as earlier this year GHIAL won a ‘Golden Peacock Award for Corporate Social Responsibility’ for its outreach programmes with the local communities.

Kishore explains: “Through GMR Group’s CSR wing, the GMR Varalakshmi Foundation

So, is it safe to say that the first 10 years have been good ones for Hyderabad-Ranjiv Gandhi International Airport?

“Hyderabad has been a true symbol of India’s progress in the aviation sector,” answers Kishore. “The airport has consistently raised the bar and created its own benchmarks in terms of service quality and operational excellence.

“An airport is not only a barometer of a region’s growth and development but also a growth engine of the region it serves. The National Council of Applied Economic Research has conducted a study into the economic impact of Hyderabad Airport’s development and subsequent operations.

“It found that during the construction phase, the airport eco-system contributed over $2.3 billion of income to the national GDP and generated 15,800 direct and indirect jobs. The study also found that in 2009-10, a single year of operations at the airport supported over 840,000 jobs.

“It estimated that by 2025, the airport will contribute around $9.5 billion to the national GDP and generate up to 198,000 jobs.

“The findings effectively reaffirm Hyderabad Airport’s role as an enabler and catalyst of economic growth for the city of Hyderabad and the entire region, and we are committed to working with the state government and all other stakeholders to ensure that it realises its APA maximum potential.” www.aci-apa.com

AIRPORT REPORT: HYDERABAD

which has been actively working in the villages around Hyderabad Airport for the last 12 years, we have undertaken initiatives in education, health, hygiene and sanitation, empowerment and livelihoods with a focus on skill development and sustainable community development.

“This recognition will surely serve to motivate our team to strive further towards our objective of making a real difference to the communities around us.”

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SPECIAL REPORT: AWARD WINNING AIRPORTS

Celebration time

Our picture round-up pays tribute to the Asia-Pacific gateways whose outstanding levels of service led to them winning Airport Service Quality (ASQ) customer satisfaction awards.

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sia-Pacific airports once again shone in this year’s ACI’s Airport Service Quality (ASQ) customer satisfaction survey, and many were on hand to pick up their prizes during a glittering awards ceremony at the recent Customer Excellence Global Summit in Halifax, Canada.

To recap, Asia-Pacific airports held on to the top spots in all the global best airport by size categories in the awards for their performances in 2017, with Indian gateways capturing three of the six global best by size awards, one second place and four joint third places.

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Their success included MumbaiChhatrapati Shivaji (BOM) and Delhi-Indira Gandhi (DEL) finishing joint first in the world for airports handling over 40 million passengers per annum; Lucknow’s Chaudhary Charan Singh International Airport (LKO) scooping the top award in the 2-5mppa category and HyderabadRajiv Gandhi International Airport (HYD) triumphing in the global 5-15mppa section, where fellow Indian gateways Cochin (COK), Kolkata-Netaji Subhas Chandra Bose (CCU) and Pune (PNQ) finished joint third.

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Middle East; Dubai (DXB) and Ahmedabad– Sardar Vallabhbhai Patel International Airport (AMD), which won the Most Improved Airport awards for the Middle East and Asia-Pacific respectively; and Indore–Devi Ahilya Bai Holkar Airport (IDR), named Best Airport by Region in the under 2mppa section.

Perhaps unsurprisingly LKO, HYD, DPS and CKG also repeated their success in the global best airport by size categories for 2-5mppa, 5-15mppa, 15-25mppa and 24-40mppa respectively in the same size groups for the Asia-Pacific region.

“Objective measurement and benchmarking are critical in driving performance in any business, especially in such a competitive and dynamic one as an airport,” notes ACI World director general, Angela Gittens.

“These winning airports have dedicated themselves to delivering a stellar APA customer experience.”

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SPECIAL REPORT: AWARD WINNING AIRPORTS

Other Asia-Pacific winners in the global awards included Bali’s Denpasar–Ngurah Rai International Airport (DPS) and China’s Haikou Meilan (HAK) and Sanya Phoenix (SYX) airports which finished equal first in the 15-25mppa category; and Chongqing Jiangbei International Airport (CKG) in the 25-40mppa category, narrowly ahead of Seoul-Gimpo (GMP) and Tokyo-Narita (NRT).

BOM and DEL also couldn’t be separated for the honour of being the Best Airport in the Asia-Pacific Region, although Mumbai-Chhatrapati Shivaji was the sole winner in the Best by Size and Region category in Asia-Pacific for airports handling over 40mppa.

Other airports with that winning feeling in the regional ASQ awards for 2017 included Abu Dhabi (AUH) retaining its title of Best Airport in the Middle East; Medina–Prince Mohammad bin Abdulaziz (MED), a first time winner in the 5-15mppa category in the By Size and Region for the

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SPECIAL REPORT: AWARD WINNING AIRPORTS

Green approach Asia-Pacific Airports turns the spotlight on the region’s ‘green’ leaders, environmental award winners and sustainability trendsetters.

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irports continue to do their bit to reduce aviation’s impact on the environment, with ACI recently revealing that a total of 246 gateways across the planet now use its Airport Carbon Accreditation programme to manage and reduce their carbon footprint.

The total includes an ever growing number of airports across ACI’s Asia-Pacific region, with India, Australia, China and Thailand leading the way in terms of numbers and airports achieving the ultimate goal of carbon neutrality.

In facts and figures, as of November 2018, 47 airports across the Middle East and Asia-Pacific were carbon accredited with a magnificent six achieving carbon neutral status – Bengaluru– Kempegowda, Delhi-Indira Gandhi, Hyderabad–Rajiv Gandhi and MumbaiChhatrapati Shivaji in India; Sunshine Coast in Australia; and Amman-Queen Alia in Jordan.

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The six, who have achieved Level 3+ ‘Neutrality’ status in ACI’s Airport Carbon Accreditation programme, currently account for 5.3% of air passenger traffic in the Asia-Pacific region.

At the other end of the scale, 14 airports in six countries and territories (Australia, Cambodia, China, Fiji, New Caledonia and Oman) have achieved Level 1 ‘Mapping’ status in the Airport Carbon Accreditation programme.

The airports, which handle around 4.6% of all passengers across the Asia-Pacific region, are made up of Melbourne, Gold Coast, Hobart, Longreach, Mount Isa and Perth in Australia; Phnom Penh, Siem Reap and Sihanoukville in Cambodia; Haikou Meilan and Shenzhen Bao’an in China; Nadi in Fiji; Nouméa-La Tontouta in New Caledonia and Salalah in Oman.

A total of 13 airports from eight countries and territories (Australia, China, Chinese Taipei, Japan, Malaysia, New Zealand, Oman

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MAKING THE HEADLINES Highlights this year include Hamad International Airport successfully retaining its Level 3 ‘Optimisation’ status and Sunshine Coast Airport renewing its Level 3+ Neutrality status in ACI’s Airport Carbon Accreditation programme, the latter achievement ensuring that it remains one of Australia’s ‘greenest’ gateways.

Qatar’s gateway to the world says that its airport-wide energy reduction programmes and collaborative approach with airport stakeholders to manage third-party emissions have “resulted in measurable change”.

The accreditation acknowledges HIA’s commitment to tackling climate change and its target to improve carbon efficiency per passenger by 30% by 2030 against a 2015 baseline.

Sunshine Coast’s CEO, Peter Pallot, reminds APA that his gateway was one of the very first Australian airports to join the Airport Carbon Accreditation programme in

SPECIAL REPORT: AWARD WINNING AIRPORTS

and the UAE) across the region have achieved Level 2 ‘Reduction’ status.

The gateways, which handle 12% of all passengers across the region, comprise Townsville in Australia; Beijing Capital, Macau and Taipei Taoyuan in Chinese Taipei; Osaka and Tokyo-Narita in Japan; Kuala Lumpur in Malaysia; Christchurch in New Zealand; Muscat in Oman; and Abu Dhabi, Dubai International and Dubai World Central in the UAE. While 14 airports from seven countries (Australia, China, Qatar, South Korea, Singapore, Thailand and the UAE) have gained Level 3 ‘Optimisation’ status. These airports represent 16% of the air passenger traffic in the Asia-Pacific region and comprise Adelaide, Adelaide-Parafield, Brisbane and Sydney in Australia; Hong Kong in China; Hamad in Qatar; Incheon in South Korea; Singapore Changi in Singapore; Bangkok-Don Mueang, Bangkok-Suvarnabhumi, Chiang Mai, Hat Yai and Mae Fah Luang Chiang Rai in Thailand; and Sharjah in the UAE.

2012, and notes that adopting an innovative and holistic approach to reducing its carbon footprint allowed it to achieve carbon neutrality status in March 2017.

“We have worked hard to make Sunshine Coast Airport the most sustainable airport in the country and we are incredibly proud of our achievements under the programme,” enthuses Pallot.

GREEN RECOGNITION Hyderabad’s Rajiv Gandhi International Airport achieved carbon neutral status in ACI’s Airport Carbon Accreditation programme in 2017 and has since gone on to win the ‘Gold’ award in 2018’s ACI Asia-Pacific Green Airports Recognition initiative for airports handling less than 15 million passengers per annum.

SGK Kishore, CEO of operator, GMR Hyderabad International Airport Ltd (GHIAL), states that his gateway’s significant green achievements are the result of the operator’s “sustained efforts towards the environment”.

“These efforts include proactive energy conservation measures, generation of renewable energy (solar), carbon sinking through extensive greenbelt and various other environment protection measures, with the active support of the airport’s stakeholders,” he enthuses.

Other airports to be recognised for their efforts in the ACI Asia-Pacific Green Airports Recognition 2018 include Hong Kong, Mumbai-Chhatrapti Shivaji and Delhi-Indira Gandhi, which won Platinum, Gold and Silver awards respectively in the Over 35mppa category.

Auckland, Abu Dhabi and Kansai won the same respective awards for the 15 to 35mppa category; while Adelaide (Platinum) and Christchurch (Silver) joined Hyderabad in tasting success in the under 15mppa category.

The awards recognise outstanding environmental achievements, with this year’s programme focused on waste management.

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SPECIAL REPORT: AWARD WINNING AIRPORTS

Time for a nap

As well as being customer service champions and environmental pioneers, Asia-Pacific airports are also fast developing a reputation for being the most sleep friendly in the world, writes Joe Bates.

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ccording to the most recent passenger poll on the website SleepingInAirports.net, the most ‘sleep friendly’ airport in the world is Singapore Changi followed by Incheon, Tallinn, Vancouver and Kuala Lumper.

So, ACI Asia-Pacific member airports account for four of the top five gateways in the world based on their ‘comfort’ and ‘sleep-ability’, and with Tokyo Haneda and Hong Kong International Airport also making the top ten, it is clearly another area in which the region excels.

Other Asia-Pacific airports to make the top 25 in the world In 2017 – there was no survey this year – include Tokyo Narita; Bangkok Suvarnabhumi; Dubai International; Delhi-Indira Gandhi; DohaHamad; Taipei Taoyuan; Ho Chi Minh-Tan Son Nhat; and Mumbai-Chhatrapati Shivaji.

To make the list, the website tells us: “In our annual survey, we ask travellers to rate airports worldwide based on their comfort and sleep-ability. Most often, voters end up APA Issue 4, 2018

sleeping at these terminals because of jet lag during long layovers, flight delays, or just to take a quick cat nap before a flight.”

Factors that might help to determine an airport’s sleep-ability include: • Designated rest and quiet zones where tired travellers can relax and enjoy some stress-free time before their flight • Availability of transit hotels and sleep pods/cabins • Plentiful, comfortable, arm-rest free seating • Cots, blankets and pillows provided to travellers stuck in the airport overnight due to flight cancellations The site notes that whether it’s because of their designated sleeping zones, padded benches or sleep pods, every gateway making it into its ‘Most SleepFriendly Airports’ list are there because they were deemed to be the most accommodating by weary travellers.

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extravagances, like the movie theatre, the butterfly garden, and the fish spa.

“For so many, it’s the simple things like impeccable cleanliness, a straightforward layout and some really great food. No matter what tickles your fancy, you’re likely to find it at Singapore Changi – and you’re unlikely to ever get bored!”

The ‘zzz Factor’ for Changi notes: “There are free designated rest zones with reclining loungers, armrest-free seating at the gates, free massage chairs, nap rooms inside fee-based lounges, and three transit hotels. Survey respondents also pointed out that with numerous nooks and hidden spaces, the lush carpeting is quite comfortable for sleeping.”

The airport itself points out that it has numerous places where passengers can grab a “power up with a power nap”.

These include Snooze Lounges in T1, T3 and T4 and Oasis and Sanctuary lounges in Terminal 2.

Indeed, on its ‘Now Boarding’ blog, it tells passengers: “We know layovers can be tiring, and all you want is a good rest before your connecting flight. Every terminal in Changi Airport has plenty of snooze spots for power naps and even falling into a deep slumber.”

Second placed Incheon International Airport also draws high praise from SleepingInAirports for being a destination in its own right that “offers everything from ice creams to cultural centres”.

Sleeping in Airports remarks: “Clever activities and amenities are interspersed by excellent and affordable dining options that give you the choice of local flavours or international favourites.

“Tired and full, finding a place to sleep in Seoul is no challenge either. The airport offers reclining lounge chairs, rest zones, and free showers, encouraging the weary to unwind. And of course, every clever feature and development is housed in impeccably clean terminals that are staffed by individuals who regularly exceed expectations.” www.aci-apa.com

SPECIAL REPORT: AWARD WINNING AIRPORTS

The survey is complemented by another one for the world’s ‘Best Airports for Overall Experience’, where airports are rated for not only their comfort and ‘sleep-ability’ but also their food options, services, amenities, cleanliness, immigration/security, customer service and ease of navigation and transit.

The website notes: “The best airports in the world are the ones that inspire you to book a trip based on the receiving airport alone. From ultra-efficient processes to friendly staff and a wide array of activities you never thought you’d find in an airport, these airports become a memorable part of any trip.

“In fact, a number of the terminals on this list enthral travellers to the point that they (almost) want to miss their flight – or at least opt for a longer layover the next time around.

“What we love most about these airports, though, is that they are continuously working to improve. We’re constantly seeing new developments and ideas come to life, creating a more spectacular travel experience than we thought possible.”

And once again Singapore Changi leads the way, having topped this annual poll for around 20 years.

“Year after year, Singapore Changi reigns over airports worldwide as the single best airport in the world. This undisputed victor dazzles and delights travellers with its efficiency, amenities, and absolute comfort,” remarks SleepinginAirports.

“The airport is positively passionate about accommodating traveller needs – a fact made obvious through their exceptional customer service and their continued drive to make something great even better.

“When it comes to deciding what specifically makes Singapore so great, it’s hard for travellers to agree. Some adore the sleep facilities, including the reclining chairs tucked away behind soothing waterfalls. Others are more into the creative

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SPECIAL REPORT: AWARD WINNING AIRPORTS Its ‘zzz factor’ states: “Seoul Incheon Airport is known for having numerous and plentiful options for sleeping. Respondents appreciated that the sleeping area is on its own level, separated from the busier shops and restaurants on two other levels.”

Elsewhere, the ’zzz Factor’ for Vancouver International Airport – recognised as the fourth best airport in the world to sleep in and the sixth best for overall experience by SleepinginAirports – says: “Survey respondents reported comfortable, armrest-free seating are abundant once you are airside. There are also nap rooms inside a few of the fee-based lounges, and a hotel connects to the airport before security.”

While the ‘zzz Factor’ listing for Hong International Airport remarks: “In addition to armrest-free seating, Hong Kong International Airport offers large numbers of reclining lounger chairs. Travellers note that intercom updates are not too loud, and that the airport, in general, is not overly noisy.

“There is a designated sleeping area at one end of the terminal, a relaxation room APA Issue 4, 2018

downstairs from Gates 23 and 25, a lay-down lounge near Gate 35, and a large number of comfortable chairs for sleeping between the food court and Gate 60.”

So, why do Asia-Pacific’s airports do so well in the poll? Without doubt the best person to answer this question is Canadian traveller, Donna McSherry, author of the online Guide to Sleeping in Airports and founder of the SleepinginAirports website, which now features over 7,500 airport reviews.

She says: “Airports in Asia tend to have a lot of thoughtful amenities that cater to travellers on a layover including rest zones, showers, cultural activities and entertainment.

“Nowadays, I think people put a lot more weight into the overall experience when choosing their long-haul flight routes. So, when an airport has more to offer than just a seat at the gate for a five hour plus layover, it’s not hard to see why offering more will attract more passengers to your airport.”

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IT TRENDS

Intelligent travel Airport interest in blockchain technology is growing as the aviation industry invests around $40 billion per annum on IT, according to SITA’s new Air Transport IT Insights study.

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lockchain is fast emerging as the priority technology for future exploration among airport and airline CIOs globally, according to new research released by SITA. The 2018 version of its Air Transport IT Insights report reveals that blockchain technology has attracted the most research attention this year.

SITA believes that blockchain offers multiple use cases ranging from passenger identification to ticketing, asset tracking and managing frequent flyers, all of which help the various stakeholders in the industry work better together.

Gustavo Pina, director of SITA Lab, comments: “The biggest obstacles standing in the way of a seamless passenger journey and truly efficient air travel, are the siloed processes across the many stakeholders, including airlines, airports, ground handlers and control authorities.

“They act as significant speed bumps at every step of the way. By collaborating as a single industry, we can smooth that journey and blockchain is one of the technologies that has the potential to make that possible.

This explains the industry’s significant interest in it.”

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Easy come, easy go: The self-bag drop kiosks at Hamburg Airport’s Terminal 1.

KEY BENEFITS One of the key benefits of blockchain technology, according to SITA, is the ability to have multi-enterprise applications.

These work across multiple organisations locking data immutably into the blockchain rather than having individual applications running separately and exchanging data on a case-by-case basis.

This, it says, is how this technology can provide a ‘single source of truth’ to all stakeholders.

Today, 59% of airlines have pilot or research programmes planned around blockchain for implementation by 2021, which is up from 42% last year.

Similarly, airports also continue to experiment with blockchain with 34% planning R&D projects by 2021. The most commonly expected use of blockchain for both airlines and airports is to streamline

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SECURE AND EASY TRAVEL According to Air Transport Insights, overall, airlines and airports are investing to deliver secure and easy travel for

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IT TRENDS

the passenger identification process with 40% of airlines and 36% of airports saying this would be a major benefit.

While the focus in the industry is predominately on passenger identity management, both airlines and airports also see that blockchain could have major benefits across several other use cases.

Airlines stated they expected blockchain technology to provide benefits in the roll out of passenger tokens for frequent flyer programmes (34%) and e-tickets (31%). Airport CIOs have item custody change tracking (such as baggage) (28%) and operational efficiency (24%) as areas that have potential benefits.

passengers, with biometric technology another key priority.

Indeed, the report states that biometrics are being incorporated into the evolution of self-service at airports, and predicts that in the next three years, 77% of the world’s gateways and 71% of airlines plan to introduce major programmes or commence R&D in biometric ID management.

SITA’s CEO, Barbara Dalibard, says: “Secure and seamless travel is a must for the air transport industry. It is encouraging to see that both airlines and airports are investing in biometric technology to deliver a secure, paperless way to identify passengers across multiple steps of the journey. We have already seen great success where we have implemented it at airports across the world.

“As the research shows, integration causes challenges and the variety of legislative demands can be daunting for airlines and airports.

“To deliver a seamless passenger experience, we must all collaborate – airlines, airports, governments and industry suppliers – and use technology to automate, and even eliminate, tedious processes. We achieve the best results when we work together, this has been most apparent when we incorporate secure biometrics into the passenger journey.”

A number of identity management solutions – including biometric systems – already exist, of course, and are basically designed to improve the passenger experience while helping airlines and airports across the world meet the variety of regulations from governments and border agencies.

The most common of these is identity verification at self-service check-in kiosks, which is already in use at 41% of airports, while 74% have plans to deploy the technology by the end of 2021.

Self-boarding gates using biometrics with ID documentation, such as a passport, are also set to become commonplace over the next three years, with 59% of airports and 63% of airlines expecting to use them.

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IT TRENDS Travel is a breeze at Singapore Changi’s Terminal 4 due to the self service technology introduced as part of its Fast and Seamless Travel (FAST) initiative.

INDUSTRY CHALLENGES

ARTIFICIAL INTELLIGENCE

SITA’s research shows that the industry faces some challenges for the full adoption of biometrics for passenger identity checks.

More than one third of airlines cite integrating the tools and technologies at airports, and a lack of standards for processes and technologies for integrating checks, as the major challenges.

For airports, the situation is similar, though 39% of them say meeting government and legislative requirements is also a major challenge.

Airlines and airports are also considering new technologies for passenger identity management such as blockchain.

Artificial intelligence (AI) is seen as beneficial across a range of airline operations with 84% of airlines planning to have major or R&D programmes in place by 2021. This is up from 52% in last year’s survey.

Airports, too, are investing in AI with 61% planning a major programme or R&D over the next three years, up from from just 34% in 2017.

While both airlines and airports are investing in AI, their uses are different.

Airlines are looking at the potential of using AI for virtual agents and chatbots with 85% planning to use it here by 2021. Some 79% of airports are currently using, or planning to use, AI for predictive analysis to improve operational efficiency.

Dalibard notes: “It is clear that the will of the industry is to change the way we travel by improving efficiency and making the passenger journey as secure and seamless as possible. This requires a concerted and aligned drive, true collaboration, and SITA is fully committed to this.”

Over 180 senior IT executives at the top airlines and airports, representing 39% of global airport and 27% of global airline passenger traffic took part in SITA’s APA 2018 research.

GROWING INVESTMENT IN NEW TECHNOLOGY Overall, investment in technology is rising.

Today airlines spend $30 billion on IT and this is set to rise in 2018 to account for 3.67% of their revenue, up from 3.14% in 2017.

Airports, too, are spending more on IT, rising from 4.39% of revenues to an expected 5.69% in 2018. This equates to $10 billion, up from $8.6 billion in 2017.

SITA believes that the strength in investment is encouraging and reflects the digital transformation and growing reliance on technology across the board.

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EVENTS: GLOBAL SUSTAINABLE AVIATION SUMMIT

The future is green Asia-Pacific Airports reports on some of the big stories to emerge from the Global Sustainable Aviation Summit in Geneva.

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irports continue to do their bit to reduce aviation’s impact on the environment, with ACI revealing that a total of 246 airports now use its Airport Carbon Accreditation programme to manage and reduce their carbon footprint.

Speaking at the Air Transport Airport Group (ATAG) hosted Global Sustainable Aviation Summit in Geneva, ACI World’s director general, Angela Gittens, said: “Airports around the world recognise that climate resilience and climate action are two sides of the same challenge.

“With 48 new airports in the programme this past year, the Airport Carbon Accreditation programme has never seen such annual momentum.

“The 246 airports now accredited across the four levels of the programme APA Issue 4, 2018

welcomed 3.3 billion passengers last year, which represents 44.2% of global passenger traffic. All of those airports engaged in climate action voluntarily.”

She added: “This collective effort is based on the airports industry making environmental stewardship a priority, and it is making a difference.

“From May 2017 to May 2018, accredited airports succeeded in collectively reducing the CO2 emissions under their direct control by 347,026 tonnes.

“To put that achievement in perspective, it would take more than eight million trees planted over 10 years to absorb the equivalent amount of CO2.”

The 44 carbon neutral airports in the programme offset 672,000 tonnes of CO2 in residual emissions.

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each other – the reach we have today is extraordinary. More people in more parts of the world than ever before are taking advantage of safe, fast and efficient travel. There are over 10 million women and men working within the industry to make sure 120,000 flights and 12 million passengers a day are guided safely through their journeys.”

The report also looks at two future scenarios for growth in air traffic and related jobs and economic benefits.

With an open, free-trade approach, the growth in air transport will support some 97.8 million jobs and $5.7 trillion in economic activity in 2036.

However, if governments create a more fragmented world with isolationism and protectionist policies, 12 million fewer jobs and $1.2 trillion less in economic activity would be supported by air transport.

“By working with one another, learning from each other’s cultures and trading openly, we not only create a stronger economic outlook, but we also continue the conditions for peaceful interaction across the globe. Aviation is the key driver for this positive connectivity,” added Gill.

Speaking about the new report, Gittens, said: “Airports are crucial links in the air transport value chain that drive economic and social benefits for the local, regional, and national communities they serve.”

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EVENTS: GLOBAL SUSTAINABLE AVIATION SUMMIT

In other news, the airlines and aircraft operators among the 300 delegates were reminded about the upcoming milestones for the ICAO Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

ATAG’s executive director, Michael Gill, said: “Operators will need to start monitoring fuel use and CO2 emissions from all international flights on January 1, 2019. This is just months away and, ahead of that milestone, an emissions monitoring plan needs to be developed and signed off by national authorities.

“We are pleased that so many operators have already taken part in training provided by the IATA, alongside ATAG and International Business Aviation Council. If your airline is not ready, more training will be available in the coming months and we encourage all of you to take full advantage now.”

Delegates also learned that the global air transport sector today supports 65.5 million jobs and $2.7 trillion in global economic activity, according to the latest version of ATAG’s Aviation: Benefits Beyond Borders report.

Launching the report at the summit, ATAG’s Gill, said: “Let’s take a step back and think about how advances in air transport have changed the way people and businesses connect with

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RETAIL

Better buys Alex Avery looks at how innovation can shape the future of airport retail and enhance the passenger experience.

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ast year saw the top performing airports introduce pop-ups and experiential stores to encourage passengers to interact more with their retail offer.

This has been supported by a big focus on making shopping as efficient and convenient as possible, with multi-channel propositions allowing passengers to pre-order their purchases and offering complimentary home-service delivery.

Hong Kong International Airport, for instance, introduced a range of retail innovations, including pop-up stores to showcase new retail categories such as drones and aerial photography systems.

Technology, too, helped to create new experiences at the airport, with its retail environment enlivened with virtual reality exhibitions, a 360-degree selfie experience and interactive screens.

Alongside e-commerce, experiments with virtual and augmented reality are demonstrating new ways in which APA Issue 4, 2018

technology can transform the passenger retail experience. Heinemann Duty Free, for example, launched an augmented reality shopping promotion at Berlin SchĂśnefeld Airport in the run-up to Christmas.

Despite all the opportunities that new technology can provide, the only initiatives likely to deliver long-term appeal and economic success for the airport and retail partners are those that easily fit into the travelling customers’ repertoire and provide a genuine benefit to their journey and purchase process.

CONNECTING ARCHITECTURAL INNOVATION TO THE PASSENGER EXPERIENCE Innovations in airport architecture and design play an ever more significant role in enhancing the passenger experience and creating engaging commercial environments to capture consumer attention.

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THE PROMOTION OF WELLBEING With the wellbeing trend here to stay, airports have had to embrace this. It’s no longer just about selling a product, but how consumers are seen to embrace the values of a brand into their lifestyles, with social media a key avenue to project a desired image to the world.

The trend encompasses the entire commercial spectrum: from services and leisure, to apparel, F&B, and travel. City and travel guides now detail the top ‘instagrammable’ spots, so shareable, photogenic adventures are now a travel essential.

Airport retailing’s historical duty free proposition, long associated with the ‘vice’ categories of cheap tobacco and alcohol, is now shifting more towards brands and products that support vitality and an aspirational lifestyle.

More health-conscious and provenancefocused consumers seek out opportunities for wellbeing and sustainable retail, impacting all aspects of the airport commercial offer, from retail, to catering and service provision.

Innovative high street brand partnerships demonstrate how wellbeing (fresh pressed juice), can combine with a ‘vice’ (eating confectionery). Juice cleanse brand, Pressed Juicery’s collaboration with luxury US candy maker, Sugafina, is one example; the series of green juice gummy bears that pack the flavour and nutrition of cold-pressed juice

into candy are the first ‘healthy’ candy ‘cleanse’ of its kind.

As consumers increasingly seek higher quality propositions, ‘me-time’, and experiences to enhance productivity and wellbeing, airport retailers and service providers must pursue new ways to deliver wellbeing across the spectrum of products they sell, from everyday travel essentials to the occasional indulgent purchase for their travelling customers.

CROSSING THE THRESHOLD: FROM SCREEN TO STORE Globally, high street footfall is declining at an inverse rate to online sales rising, as digital commerce gathers pace.

Additionally, smartphone addiction is on the rise – be it for online banking, booking travel, social media, or online streaming via the likes of Netflix and Spotify.

Prior to the smartphone revolution, passengers had to seek out avenues to kill time whilst on the move or in airport lounges.

Airport retail browsing was an efficient use of dwell time and opportunity to indulge in an impulse purchase before flight departure.

Today’s challenge is the demise of the ‘time killing browser’ in airport retail environments, as passengers stay glued to their smart phones instead.

This is compounded by the increasing volume of airport information delivered through smartphones. In 2019, many airports globally will be pushing techenabled interfaces through biometric scanning, artificial intelligence and communication channels with more sophisticated chatbots, translation technology, and augmented reality, all making passengers more phone-dependent.

Airport retailers need to work harder to capture consumer attention from screen to store windows. This means pushing the boundaries for store design, window displays, compelling merchandising, and delivering a service-led proposition for its customers, to encourage people to cross the threshold into their stores. www.aci-apa.com

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A great example of this is the newly opened Terminal 4 at Singapore Changi, which boasts many architectural, commercial and digital components that are specifically designed to create a compelling customer experience.

Key features include a heritage zone – inspired by Peranakan shop-houses nestled around Singapore – that combine a mix of familiar, traditional brands with a nostalgic interior of heritage themed facades to create an experience unique to Singapore.

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Nike’s recent announcements should be a wake-up call to the retail industry – travel included. The brand will rationalise its 30,000 retail partners to around 40 favoured ‘differentiated retailers’, each with a special branded space for Nike product and dedicated sales teams.

As president of Nike Brand, Trevor Edwards, predicted that “Undifferentiated, mediocre retail won’t survive”. This illustrates an increased focus on the direct-to-consumer push, as brands rely less on wholesale, and more on flagship stores and e-commerce. Nike has a target of 30% e-commerce revenue by 2022, up from 15% currently.

Its New York flagship planned for 2019 will be a multi-sport assortment of product innovation and services, with a fifth floor available exclusively to NikePlus members, offering unique products and customisation opportunities.

Members can meet a Nike Expert to offer personal shopping advice.

Similarly, engaging and wide-ranging environments are being developed by brands ranging from Tesla automotive, to Lululemon athletica, Charlotte Tilbury beauty, and Lush cosmetics.

So, has airport retail’s service proposition and in-store experience failed to keep pace with the high-street? Possibly, due to the typically higher sales densities, guaranteed passenger base, price advantage (albeit diminishing), and aggressive concession margin demands from airport landlords, airport retailers have had less incentive to innovate, particularly for non-specialists in travel, for whom one to five airport stores may represent a small fraction of a 200+ high-street portfolio.

High-street trends indicate the growing importance of a more engaging brand presence in airport retail. Already, major beauty and spirits brands in the duty free stores are responding with larger format and more eye-catching product displays, with more expansion across the full spectrum of the airport retail offer expected.

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The future model is moving more to a hybrid of transactional retail and marketing brand presence, recognising the importance of physical design and environment in capturing audience attention.

A LICENCE FOR LOCAL Despite airports being increasingly dynamic environments, the commercial real estate has been relatively fixed and static – both in terms of contract length and brand ubiquity, as well as stock turn and dynamic programming.

Retailers need to work ever harder to adjust their product offer to fast changing demands, while airport operators need to respond with increased flexibility of their space and programming, to adjust to changing tastes and trends.

Looking ahead, we expect to see more dynamism in the airport proposition.

Airports are facilitating travel, adventure, and new experiences through connecting people to new destinations, but for too long, retail has morphed into a global conglomerate of ubiquity.

Consumer surveys highlight that 78% of airline passengers see travel as an opportunity to explore the local culture; airport retail must respond to these customer-led requirements.

A successful sector has been the emergence of the delicatessen and souvenir food concept stores. Stores with a strong local influence, and unique proposition distinct to the destination attract customers of all demographics, incomes and nationalities.

As technology increasingly allows a greater understanding of customer profiles, habits, behaviours and taste, we expect to see airport retail embrace the opportunity to champion its unique qualities of regional distinction and culture.

Airport retail remains an environment rich with opportunity for innovation. Now’s the time for operators to step up and embrace new ways to connect with consumers to APA really enhance the customer experience.

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INDUSTRY NEWS

Growth and innovation ASIA-PACIFIC AIRPORTS MAGAZINE

News, views and reviews from ACI’s regional and global World Business Partners.

AMERICAN SAMOA MISSION FOR WOOLPERT Woolpert is to evaluate and rehabilitate the primary runway at Pago Pago International Airport (PPG) and rehabilitate, reconstruct and possibly extend the runway at Ofu Airport (Z08) in American Samoa.

American Samoa, a territory of the United States, is comprised of a group of seven islands in the South Central Pacific Ocean and has a population of roughly 55,000. Located on the island of Tutuil, PPG’s primary 10,000ft long runway is partially built on a fringing reef and provides the remote island’s international air connectivity to the world.

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Under the terms of the contract signed with America Samoa Government’s Department of Administration, Woolpert will study the pavement infrastructure, perform a condition evaluation, and make recommendations on methods of improvements, materials and phasing of the project, while minimising disruption to airport operations.

Ofu Airport, located 70 miles east of PPG, currently has a 2,000-foot runway that handles a weekly flight

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bringing food and supplies to the 500 strong population of Ofu and Olodega islands.

Woolpert’s project manager, Curtis Brown, says that the runway is aging and requires reconstruction and possible extension for safety and increased aeronautical services.

“The Ofu runway extension project would extend the runway into the ocean and fringing reef,” he says. “The project has significant environmental considerations, since it would affect a protected coral reef, which is home to the endangered blue coral.

“We will work with numerous environmental groups, the American Samoa Government, and local entities to ensure the wildlife habitat and beauty of that site is protected.”

Woolpert’s practice leader, Chris Snyder, believes that the firm’s extensive and varied experience with the Federal Aviation Administration (FAA) and teaming with a local company made Woolpert a good fit for the projects.

Snyder is also quick to point out that he realises how important the runways are to the people of American Samoa.

“It was a very special experience to witness the way aviation connects people in American Samoa,” reveals Snyder.

“When I was in Hawaii and flying to Pago Pago for the first time, all 300 of us were very eager to get on that plane. They were so excited about going home.

“Then, when they got there, it felt like everyone on the island was there to meet them around midnight with smiles, laughs and wonderful greetings. It was a celebration and not just a welcoming home. I’ve been to a lot of places and not quite seen this before.

“This critical need for the airport support affects how we will manage the runway rehabilitation schedule and helps us see the importance of ensuring stability of the infrastructure for years to come.”

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KEMPEGOWDA’S DIGITAL TRANSFORMATION Siemens Postal, Parcel & Logistics (SPPAL) has signed an MoU with the operator of Bengaluru’s Kempegowda International Airport to help drive the Indian gateway’s “digital transformation”.

The declaration of intent with Bangalore International Airport Limited (BIAL) envisages co-operation in a number of areas, including the digitalisation of existing infrastructure through the use of Internet of Things (IoT) applications.

The solutions rest on MindSphere, the open cloud-based IoT operating system from Siemens, which will work with BIAL in the simplification of its processes, increase efficiency and continue to improve the customer experience.

Bengaluru-Kempegowda (BLR) is the third busiest airport in India, having handled over 25 million passengers in 2017.

“In developing digital solutions, Siemens increasingly relies on agile, collaborative working relationships with customers and partners,” said Michael Reichle, CEO of SSPAL. “We’ve been co-operating closely with BIAL for several years. I’m looking forward to partnering to further develop digital services.”

While BIAL’s managing director and CEO, Hari Marar, said: “BLR is a pioneer and leader of change in the Indian aviation industry.

Our aim is to introduce more digitally advanced, innovative services and products at Kempegowda to ensure that passengers and partners have the advantage of future forward technologies, in a seamless operating environment.” www.aci-apa.com

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ICM ENTERS THE CHINESE MARKET Shanghai Hongqiao has become the first airport in China to adopt ICM’s auto bag drop solution, the gateway unveiling 18 of its Series 7 Auto Bag Drop (ABD) units in Terminal in mid-October.

The units, for Spring Airlines, are part of a larger renewal project for Building B in Terminal 1, which began renovations earlier this year.

According to ICM, the units deliver “exceptional benefits to both airports and airlines, and present passengers with a much simpler and faster process for checking-in their bags”.

The Hongqiao order caps a busy 12 months for ICM which has implemented successful ABD installations at a number of airports across the world, including London Heathrow, Sydney, Paris CDG, Singapore Changi and Marseille Provence.

“We’re incredibly proud to see ICM’s world leading self-service bag drop technology in China, one of the fastest growing markets in the world,” enthuses ICM Group’s CEO, Richard Dinkelmann.

“Hongqiao is a breakthrough order for ICM, not only because it’s our first in China, but also our first with a Chinese carrier, Spring Airlines. We look forward to rolling out many more systems throughout mainland China in the future.”

Dinkelmann believes that a number of Chinese passengers will already be familiar with the Series 7 ABD system if they have flown from Singapore Changi or with Qantas from Sydney International Airport.

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MINDFLOW PARTNERS Location: New Delhi, India Contact: Romy Juneja, managing director E: romyjuneja@mindflowpartners.com W: www.mindflowpartners.com Mindflow Partners is an international consulting and execution company, specialising in the commercialisation of airports, railways and public transport stations. We partner with our clients, both private and government, to identify their commercial opportunities and address their most critical challenges.

Our services include commercial development – retail, food, parking, advertising, and other consumer services; performance and talent management; training and development of operational teams; commercial transformation and transaction advisory; research and commercial due diligence.

AEROSCAPE SERVICES Location: Singapore, Singapore Contact: Sulaiman Zainul Abidin, chief operating officer E: info@aeroscape.com W: www.aeroscape.com Global consultancy firm, Aeroscape, specialises in regulatory compliance, technical advisory, management services, industry analysis as well as training in the business of aviation. In our core business, we offer a wide range of services focusing on the aviation industry, with technical airport specialists in the fields of security, safety, terminal management, operational readiness, commercial development, route development and airline marketing.

Our aviation solutions include customer service and passenger facilitation management.

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