Airport World, Issue 5, 2014
Airport World, Issue 5, 2014
Airport World, Issue 5, 2014
Airport IT:
Smart solutions
OctoberNovember 2014
Volume 19 Issue 5
www.aci.aero
OPINION
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Airport World
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Making IT
happen
Airport World editor, Joe Bates, reflects on the loss of one
of the team, environmental initiatives and the information
technology theme of this issue.
CONTENTS
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Issue 5
Volume 19
In this issue
3 Opinion
Airport World editor, Joe Bates, reflects on the loss of one of the team, environmental
initiatives and the information technology theme of this issue.
9 News
12 ACI news
15 View from the top
Director general, Angela Gittens, discusses ACIs Aviation Community Recommended
Information Services framework and how it can help aviation stakeholders share
information more efficiently.
24 In the spotlight
Axis Communications Daren Lang provides some case studies of airports that have realised
the commercial and customer service rewards of intelligent video.
27 Baggage tales
Advancements in RFID technology, new 2D barcodes and mobile tablets are just some of the
ways IT is helping transform baggage handling at airports, writes Kim Madsen.
CONTENTS
Director General
Angela Gittens
Chair
Fredrick J Piccolo (Sarasota, USA)
Vice Chair
Declan Collier (London, UK)
Immediate Past Chair
Yiannis Paraschis (Athens, Greece)
Treasurer
Stefan Schulte (Frankfurt, Germany)
ACI WORLD GOVERNING BOARD
28 Happy talk
Faith Groups Zachary Varwig considers how strategically using data can significantly
enhance the airport experience for passengers.
31 The IT crowd
Joe Bates and Justin Burns round-up the latest IT news from airports across the world.
34 All aboard
Airport rail services are increasing as cities and governments look to improve
ground transportation links and reduce the environmental impact of their
gateways, writes Justin Burns.
38 Fast track
Steve Riano reflects on the basic requirements of a good airport rail link, the
challenges posed setting them up and the progress of the Dulles Corridor
Metrorail Project.
40 Balancing act
Keith Hui provides his thoughts on designing customer-friendly terminals in
the Asia-Pacific region.
43 People matters
Dr Richard Plenty and Terri Morrissey provide their thoughts on:
Sustaining high performance.
45 Environment news
47 Project watch
Guayaquil International Airport.
DIRECTORS
Africa (3)
Pascal Komla (Lom, Togo)
Bongani Maseko (Johannesburg, South Africa)
Robinson Misitala (Livingstone, Zambia)
Asia-Pacific (8)
Tan Sri Bashir Ahmad (Kuala Lumpur, Malaysia)
Dennis Chant (Gold Coast, Australia)
Rodolfo Echeverria (Amman, Jordan)
Kenichi Fukaya (Tokyo, Japan)
Saud AR Hashem (Jeddah, Saudi Arabia)
Seow Hiang Lee (Singapore)
Kerrie Mather (Sydney, Australia)
1 vacancy
Europe (7)
Declan Collier (London, UK)
Arnaud Feist (Brussels, Belgium)
Michael Kerkloh (Munich, Germany)
Tonci Peovic (Zagreb, Croatia)
Stefan Schulte (Frankfurt, Germany)
Sani Sener (Istanbul, Turkey)
Jos-Manuel Vargas (Madrid, Spain)
Latin America & Caribbean (3)
Fernando Bosque (Guadalajara, Mexico)
Hctor Navarrete Muoz (Merida, Mexico)
1 vacancy
North America (7)
Thella Bowens (San Diego, USA)
James Cherry (Montral, Canada)
Frank Miller (San Antonio, USA)
Fredrick J Piccolo (Sarasota, USA)
Mark Reis (Seattle, USA)
Maureen Riley (Salt Lake City, USA)
Tom Ruth (Edmonton, Canada)
Regional Advisers to the
World Governing Board (7)
Aaron Adderley (Hamilton, Bermuda)
Rosemarie Andolino (Chicago, USA)
Haluk Bilgi (Tunis, Tunisia)
ngel Crdova Carrera (Guayaquil, Ecuador)
Howard Eng (Toronto, Canada)
Zouhair Mohamed El Oufir (Rabat, Morocco)
1 vacancy (Europe)
Observer
World Business Partner Board Chairperson
Roddy Boggus (Parsons Brinckerhoff )
Correct as of October 10, 2014
NEWS
The importance of retail and F&B revenues to the health of the worlds
airports was top of the agenda for ACI World chairman, Fredrick Piccolo,
during his presentation at The Trinity Forum in Taiwan.
Piccolo, who revealed that airports in Europe (38%) and Asia-Pacific
(27%) accounted for the lions share of the $117 billion in income made by
airports in 2012, stated that revenue diversification led by retail and F&B
operations was key to the financial resilience of the worlds gateways.
Im happy to report that our latest figures indicate that retail continues
to be the leading source of non-aeronautical income for airports at 29% of
the total, but of course theres still more that we can do, he noted.
So what can we do collectively to help grow retail revenues in airports?
To fellow airport operators, I would say that we need to remain open to
new opportunities.
I would also ask that airport operators planning renovations or new
facilities involve retailers and even brands from the very beginning. The
industry is replete with examples of how carefully planned walkthroughs or
strategically placed stores boost sales. Retail at an airport should never be
an afterthought; its simply too important to our continued success.
To all stakeholders: share information that can better the industry as
a whole. There is a wealth of data out there, but its only useful if it gets into
the right hands.
News in brief
Construction work has started on the expansion
of the Northern Terminal at Riga International
Airport, which will allow the Latvian gateway
to add four boarding bridges and better
accommodate non-Schengen passengers.
Nigerias Bayelsa state is building a new
international cargo airport at Amassoma.
It will potentially be in competition with five other
airports located within 100 miles of Amassoma
Osubi, Port Harcourt, Sam Mbwake, Asaba and
Benin City. Bayelsa is the oil-rich home state of
Nigerian president, Goodluck Jonathan.
The European Commission has adopted seven decisions about public support
granted to airports and airlines in Belgium, Germany, Italy and Sweden.
The commission has concluded that Zweibrcken and Charleroi airports
received state aid, which was incompatible with EU rules and must now
be recovered. In addition, it says it has opened an in-depth investigation
concerning state financial support granted to certain airlines flying from
Brussels Airport in Zaventem.
The decisions are based on the commissions new guidelines on
state aid to airports and airlines adopted in February 2014 as part of its
State Aid Modernisation (SAM) strategy.
Commission vice president, Joaqun Almunia, in charge of
competition policy, explains: EU state aid rules allow public authorities
to grant support to airports where it is justified, in particular where it
improves the accessibility of a region and provides a significant
contribution to its economic development.
However, duplicating unprofitable airport infrastructure or unduly
favouring certain airlines wastes taxpayers money and distorts
competition in the single market.
The commission has adopted decisions on two types of measures: financial
support granted to airports; and financial conditions offered by airport
managers to certain airlines for their operations at the airports in question.
Commissioners have fully approved the state aid granted to the
airports of Frankfurt-Hahn and Saarbrcken in Germany, Alghero in Italy
and Vsters in Sweden.
NEWS
Card sharps: ACI-NA president and CEO, Kevin Burke (third from right), and airport colleagues celebrate the launch of the new collectable airport trading cards.
10
He told Airport World: The more we talk about PFCs and explain
that the money is not a tax but a fee that goes to the airport with
the exception of a small 11 cents fee to the airline the more
optimistic I am about our chances of success.
The current PFC of $4.50 was introduced in 2000 and is effectively
worth $2.25 today. Congress will decide next year whether to raise it or not.
Economic importance
ACI-NAs newly released economics report revealed that, combined,
the aviation industry is the second biggest employer in the US after
Walmart, supporting 9.5 million jobs across the nation.
Compiled by CDM Smith for ACI-NA, the report The Economic
Impact of Commercial Airports in 2013 also revealed that US airports
have a collective national output of $1.1 trillion and create a payroll
of $356 billion.
Burke said: The clear takeaway from this latest study is that our
nations airports continue to be a tremendous source of economic
activity around the country and across all hub sizes.
Individually, the airport is the cornerstone of many local
economies, and collectively airports spur an annual output of more
than $1 trillion. Not only does our commercial aviation system rely on
such a robust network of airports throughout the US, but so do a
myriad other industries.
And in a bid to demonstrate the economic importance of US
airports, ACI-NA has unveiled the first batch of collectible trading cards
based on the baseball model that it believes will help it get its
message across.
Each card in the new North American Airport Collectors Series lists
the name and IATA code of the airport on its front, and details about its
history, achievements and economic impact on the back.
I am always encouraged when our members are eager to tell their
stories and educate the public about the significant contributions they
make to their local communities, said Burke. These cards not only
offer our member airports a fantastic way to showcase themselves to
the travelling public but also appeal to the kid in all of us.
From the youngest passengers to lifelong aviation enthusiasts, the
trading cards offer a fun new way for collectors to remember the airports
that they visit and inspire new journeys to complete their collections.
World in motion
Ryan White reports on the latest news, developments and pioneering global initiatives
from ACI World.
The overall passenger growth rate in the first six months of 2014
was 4.8%, which is above the equivalent year-over-year figure from
2013, enthuses Dr Rafael Echevarne, director of economics and
programme development for ACI World.
The cargo market has also seen a notable turnaround, displaying
an overall growth rate of 3.7% for the first half of 2014 compared with
a net decline for the same period the previous year.
However, at the time of writing, a number of developments indicate
that the airport industry still faces growth challenges. Indeed, there
remains a lingering uncertainty surrounding demand for air
transport worldwide.
This is clearly influenced by social and political volatility in areas
of the world such as Eastern Europe, the Middle East and West Africa.
Whilst this volatility obviously has a direct negative impact on traffic at
airports located in the affected areas, the potential for a contagious effect
on traffic at airports in other parts of the world is real.
Key statistics
12
ACIevents
2014
2015
November 8-11
April 27-29
ACI Asia-Pacific
Assembly, Conference
& Exhibition
Amman, Jordan
2015
2015
2015
August 31-Sept 2
ACI World and Latin
America & Caribbean
Annual Conference &
Exhibition
Panama City, Panama
June 24-26
February 25-27
ACIoffices
ACI World
Angela Gittens
Director General
PO Box 302
800 Rue du Square Victoria
Montral, Quebec H4Z 1G8
Canada
Tel: +1 514 373 1200
Fax: +1 514 373 1201
aci@aci.aero
www.aci.aero
ACI Africa
Ali Tounsi
Secretary General
Casablanca, Morocco
Tel: +212 660 156 916
atounsi@aci-africa.aero
www.aci-africa.aero
ACI Asia-Pacific
Patti Chau
Regional Director
Hong Kong SAR, China
Tel: +852 2180 9449
Fax: +852 2180 9462
info@aci-asiapac.aero
www.aci-asiapac.aero
ACI Europe
Olivier Jankovec
Director General
Brussels, Belgium
Tel: +32 (2) 552 0978
Fax: +32 (2) 502 5637
danielle.michel@aci-europe.org
www.aci-europe.org
ACI represents 591 members operating 1,861 airports in 177 countries and territories, which in 2013 handled 5.95 billion passengers, 93.6 million
tonnes of cargo and 79.6 million aircraft movements. ACI is the international association of the worlds airports. It is a non-profit organisation,
the prime purpose of which is to advance the interests of airports and promote professional excellence in airport management and operations.
13
ACI VIEWPOINT
15
15
Doing the
right thing
Salt Lake City International Airports Maureen
Riley talks to Joe Bates about the gateways
$1.8 billion development programme and a
host of other issues ranging from customer
service to airport leadership.
New terminal
Salt Lake City mayor, Ralph Becker, claims that the long-awaited
upgrade will make huge improvements to the gateway, and Riley
agrees, stating that the airport needs the new terminal to help meet
regional demand and raise customer service levels.
16
Non-aeronautical revenues
Riley adds that the new terminal also offers SLC the opportunity
to develop a better concessions programme that reaches out
to more people.
A greater variety of shops and F&B outlets, she notes, will provide
more choice for passengers, which will help raise customer satisfaction
levels, improve passenger flow throughout the terminal and, ultimately,
boost concession revenues.
However, with the terminal design yet to be finalised and plans for
the concessions programme in its infancy, Riley expects it will be 2017
before the retail and F&B contracts are put out to tender.
The airport actually only revamped its existing concessions
programme three years ago when all 68 retail and F&B contracts were
put out to tender for the first time in 50 years, and Riley claims that it
learnt a lot from the experience that will prove useful next time round.
Riley, who notes that SLC will not be looking for a master
concessionaire, adds that another benefit of the new terminal will be a
bigger and better Delta Sky Club lounge with an outside observation
deck that allows users to watch airfield activity.
Car parking remains SLCs biggest source of non-aviation related
income, making around $35 million per annum.
Customer service
Riley observes that the airport is there to serve passengers and airlines,
and this basic premise perhaps best explains why it takes customer
service so seriously.
She proudly tells Airport World that she set up an in-terminal customer
service programme about five years ago, and as a result SLC has a team of
staff that are 100% dedicated to assisting passengers with everything from
providing directions and helping passengers find lost bags to crowd control.
I get letters from customers all the time telling me how members of
staff have helped them, enthuses Riley. We really do care about our
customers and will go that extra mile to help them.
Airlines
Riley describes 2013 as a good year based on the annual throughput
of 20.1 million passengers, and she admits she is really pleased with
the 6% rise in traffic for the 12-month period ending August 31.
The upturn, she says, is primarily down to economic recovery in
the US and the entry to the market of Alaska Airlines, which serves
eight cities (Boise, Las Vegas, Los Angeles, Portland, San Diego,
San Francisco, San Jose and Seattle) non-stop from SLC.
17
Hub carrier, Delta Air Lines, remains the dominant airline at SLC,
accounting for around 73% of all passengers at the airport together
with its partner airlines. Despite Deltas dominance at SLC, Riley points
out that the airport enjoys a healthy mix of O&D (57%) and transfer
(43%) traffic.
Its strong position at SLC prompts Riley to refer to the airport as a
fortress hub for Delta. This is clearly good for business right now,
but does it mean that SLC is too dependent on one carrier and might
suffer the consequences if Delta was to go out of business?
I am actually asked this quite a lot by politicians and my answer is
always the same, says Riley. Where are they going to go?
They have asked for 54 gates in our new terminal and they will get
them. What other airport has such gate availability and could make this
happen that easily? Delta does well here and has no reason to leave.
But if the unthinkable were to happen and Delta moved its hub
operation elsewhere, Riley reveals that the airport would be
prepared for it.
Part of our job of safeguarding the long-term future of Salt Lake City
International Airport is to plan for the what ifs to ensure that we are
prepared for any eventuality, and that includes the unlikely scenario of
no longer being a Delta hub.
As a result, and with the full support of Delta, our phasing
designs include some very discreet options that effectively mean
that as a city and as an airport we will be in a very favourable position
in about 10 years time when we possibly have to make the next
big decision.
If the hub is gone, we can stop building and have a perfect airport
for an O&D operation. On the other hand, if ten years from now
passenger demand is still strong and Delta is still growing, then there is
a subsequent phase to add more gates.
18
Traffic growth
Until the recent upturn in traffic, passenger numbers at SLC had been
relatively flat for four years.
Airport leadership
As we have previously reported in Airport World, the airport industry
has lost a lot of talented leaders in the last few years, with many
veteran bosses retiring or leaving for pastures new.
In North America alone, this has included the likes of Larry Berg
(Vancouver), Paul Benoit (Ottawa), Reg Milley (Edmonton), Jeff Fegan
(Dallas/Fort Worth), Krys Bart (Reno-Tahoe) and Louis Miller (HartsfieldJackson Atlanta) and the trend will continue over the next few years as
the old generation of airport leaders makes way for the next.
Thankfully, the list wont include Riley just yet as she still feels that
she has a big job to do at SLC, but acknowledges that times are changing
and that finding the airport leaders of tomorrow is no easy task.
The quest has led some airports to widen the talent pool by
beginning to recruit people from outside the airport industry. The new
recruits often bring new ideas and areas of expertise with them that
can be used in the airport environment.
Indeed, ACI-NAs recent appointment of former American Apparel
and Footwear Association CEO, Kevin Burke, as its new president and
CEO is an example of this. So does she see more US airports going
down this route in the future?
Riley is not so sure due to the fact that most airport leaders in the
US are political appointments made by the state, region, city or mayor
of the city, as in her case.
Her airport background Riley was deputy executive director at
Orlando International Airport and already familiar with SLC and many
other gateways through previous work as a consultant with LeighFisher
certainly helped.
Having said that, New Jersey girl Riley is a certified public
accountant by profession and admits that she had no idea that shed
end up running an airport when she started out on her career.
Riley quips: My background as an accountant means that my
speciality is business and finance, which is ideal for an airport and
overseeing a $1.8 billion capital development programme!
As for the bigger question where are the airport leaders of
tomorrow going to come from? I honestly dont know, but this is a big
issue and we need to start thinking about it now as there is a lot of
competition out there, especially from other industries, which might
seem more attractive to graduates.
Exciting future
Riley says she is excited by the opportunities and challenges ahead
for Salt Lake City International Airport.
Being here, in my role, at a time when we have the opportunity
to create a huge future asset for the state of Utah that will serve
the community for the next 50 to 75 years is very exciting and really
an achievement at this stage in my career, she tells Airport World.
Many airport directors go through their entire careers and never
get to the point where you can build a whole new terminal and tear
the old one down. Its very cool and terrifying at the same time.
It does sound hectic, doesnt it?
AW
19
SPECIAL REPORT: IT
The new
dynamic
Advancements in airport technology can
redefine the passenger experience and
drive airport revenues, write Olivier Houri
and Franco Amalfi.
Infrastructure support
Mature airports run hundreds of disparate systems and applications that
include a number of outdated legacy networks that were not designed to
support the modern traffic and operations in place today.
In a 2013 survey, IATA stated that 69% of airport leaders named a lack
of integration between disparate systems as one of the top two barriers to
improving customer engagement.
Communication lines are often running at less than 1GB per second, so
real-time information sharing and decision-making suffer with major delays
due to the lack of integration between internal airport systems and partners.
Whats worse, region-specific requirements can often serve as a roadblock
for airports that are regularly patronised and sustained by global travellers.
For instance, one major Chinese airport requires a Chinese mobile phone
number to access the Internet, leaving visiting passengers in the dark.
The resulting complexity creates inefficiencies, increases costs and
makes it difficult to scale and meet demands. Airports need to keep cabling
infrastructure up to date to uphold the exponential increase in data and
applications being used in real-time.
In addition to the underlying infrastructure, Wi-Fi is no longer simply a
perk at airports but a customer necessity. Passengers especially
millennials expect access to free Wi-Fi throughout the facility so they can
stay connected and receive alerts for changes to their flight or travel plans.
20
This way, they can maximise their time at the airport, accessing their
mobile devices for work or personal use as well as taking advantage of
retail and dining establishments.
Its not as simple as just providing free Wi-Fi, either. Free Wi-Fi is
only beneficial if the network has the bandwidth to handle the millions
of travellers in airports each day.
As well as keeping customers and tenants informed, Wi-Fi can also
be used for marketing initiatives collecting customer data and
pushing location-based notifications or offers. Free Wi-Fi is a first step,
but upgrading bandwidth will provide the most opportunities for
airports to connect with passengers.
However, creating a seamless and more personalised experience
cant be done in isolation. Airport executives need to work closely with
airlines, service providers and other airport associates as part of a
co-ordinated effort to better engage with passengers to provide more
timely and personalised services that digitally savvy consumers have
come to expect.
Ultimately, organisations will be more successful if they can tap into
the collective intelligence of the entire airport ecosystem to evolve their
business model.
SPECIAL REPORT: IT
and reduce operational costs. Embedding such mobile capabilities is
vital given the need to react quickly and behind the scenes to any
operational irregularities that could impact passengers.
Social media platforms give airports and airlines a direct line to
passengers in real-time. At one US airport, Twitter was used to monitor
crowd management and emergency situations.
A passenger who saw a young girl choking was able to get medical
attention by tweeting out her location and the need for a doctor more
quickly than the airport itself could summon its emergency response team.
By monitoring and responding to social media, airports can leverage
the alerts and concerns of passengers to respond faster and better
serve their needs.
Predictive analytics
21
SPECIAL REPORT: IT
REC
The big
picture
With intelligent analysis,
video cameras can potentially
offer much more than
just surveillance, even
contributing to an airports
bottom line, writes Boschs
Denis Castanet.
23
SPECIAL REPORT: IT
Munich Airport already uses IP cameras to closely monitor aircraft servicing processes and simplify them.
In the spotlight
Axis Communications Daren Lang provides some case studies of airports that have realised
the commercial and customer service rewards of intelligent video.
reviously only used for security, video cameras are now also
helping some airports optimise baggage handling, shorten
check-in queues and estimate waiting times for passengers.
At Moscows Sheremetyevo International Airport Russias largest
and busiest airport with more than 26 million passengers each year
for example, the video surveillance system serves not only as a security
solution but also as a means for controlling operations such as
check-in, boarding, luggage loading control and other processes
at all stages of aircraft servicing.
The solution is neat as it simply uses the camera network thats
already in place for security purposes. The Internet Protocol (IP)
cameras installed at the airport generate a single video stream,
which is then processed by two systems security and operational
according to the required tasks and algorithms.
It is the shift from analogue to network cameras that has made the
use of video for non-security applications possible.
24
SPECIAL REPORT: IT
Understanding customer statistics and conversion rates is key for retailers renting space at the airport.
25