HEATHROW’S STRATEGIC BRIEF © Limited CONTENTS

INTRODUCTION 6 – 9

Purpose of this document

HEATHROW’S VISION AND STRATEGY 10 – 17

Heathrow airport’s vision

Our strategy

PROPOSITIONS 18 – 35

Passenger, Colleague, Airline, Investor Communities and environment

Our commitments to the UK

Heathrow ecosystem

Statutory authorities

FUTURE OPERATING ENVIRONMENT 36 – 49

Global megatrends to 2040

What could a future Heathrow be?

Competitor and comparator airports

END-TO-END PASSENGER JOURNEYS 50 – 59

Heathrow’s service proposition

Delivering world-class passenger experiences

End-to-end passenger experiences

FUTURE OPERATIONAL GUIDING PRINCIPLES 60 – 73

Surface access, Airfield and airspace, Terminal, Baggage, Cargo, Heathrow’s ecosystem FOREWORD

4 HEATHROW’S STRATEGIC BRIEF | FOREWORD

Heathrow is a gateway connecting the United Kingdom to

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P AT P E T D S D S TI P DO G N E O G I ES R OI NG NG RE IN I exporters to get to growing markets and for tourists, I N G E H R NG HI E H T EV ITH G TH T H VER T THE RIGHT T ERYONE WI students and investors to come to the UK. HE RIGHT RYONE W

The same planes that carry people also carry Expansion presents a huge opportunity, not exports all over the world. Anything high just to grow the national economy and create value, with a short shelf life or short supply jobs, but also to transform passenger service,

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E G I E V C chain goes by air. In fact, almost 30% of all efficiency and sustainability. It will enable CE W I I W VI I IN C W R N VI O E I G R R R NG ERV non-EU exports go from Heathrow, making airlines to expand their operations. More flightsORK THE G E SER RKIN ETH X T SE K NG TOG T EXCELLENT S us the United Kingdom’s biggest port by from UK regions and Europe, connecting on toING TOGE CELLENT value. In this way, Heathrow boosts the more long-haul destinations, will support the UK’s connections with the rest of the world growth of exports and better connect the UK through supporting exports, trade and job to global markets. We will ensure that we play opportunities. We are also an integral part of our part in meeting local air quality targets,

the local community, providing jobs for that we work to deliver our goal of fewerK E I KE E M F I Y EE E M Y P AF P AY almost one in four local households. people affected by noise than today, that EPI SA R PIN SA PRO DA I G E S RO Y NG E N OVI RY D Recognising our local impact – be it noise or there is no more airport-related traffic on theG EVERYONE VING EVE Y EVERYO ING EVER air quality – we are committed to a path of road and that more skilled jobs are created for sustainable growth. local people. An expanded Heathrow will be at the heart of an integrated transport system

Over the past few years, the airport and and help regenerate our local area. Expansion

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must also remain affordable for airlines and R

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A E AE EC our vision of “giving passengers the best P AT P E passengers. It must be financeable by D T D S I SP TI DO G N E O G I ES airport service in the world”. Passengers NG NG RE OIN IN private investors. N I G R I G H N E H NG THI V T G T T TH E E I H regularly now rate Heathrow as the best major HE HT T V RY E WIT THE RIG T ERYONE W airport in Europe. We have set our sights on This Strategic Brief document brings together E RIGH YONE enhancing our reputation as a world-class everything that we represent at Heathrow hub. This has been underpinned, not just by creating a clear set of aspirations for a future the investment our investors have made in Heathrow in 2040. It will provide the basis to rebuilding the airport, but also by the highest guide, inspire and evaluate our business plans

G and, in particular, the expansion programme G levels of punctuality and baggage connections E G I E V C W I ICE W VI I IN C W R N VI ever, improved security and resilience and a over the next 15 to 20 years. O E I G R R ER NG ERV ORK THE G E SER RKIN ETH X T SE real focus on developing a service culture. K NG TOG T EXCELLENT S ING OGE CEL ENT At the same time, we have been steadily I welcome your support with the development T L reducing our costs and building a strong global of Heathrow Airport. investor base. We have also become a better neighbour by working hard to make Heathrow cleaner and quieter, while providing career

K E I KE E M opportunities for local people. E F I Y EE E M P P AF P AY E I S R D PIN SA P O DA I G E S R V Y D N E NE OVI ER G EVERYON VING EVE Y None of this would be possible without all EVERYO ING EVER the 76,000 people from 400 businesses that operate across the airport – ‘Team Heathrow’. We work together to serve passengers and live John Holland-Kaye our values: Keeping everyone safe, Treating everyone with respect, Giving excellent service, Chief Executive Officer Working together, Doing the right thing and Heathrow Airport Limited Improving every day.

5 6 HEATHROW’S STRATEGIC BRIEF | INTRODUCTION INTRODUCTION

7 The Strategic Brief will be an important reference document, setting out Heathrow’s high-level aspirations for: PURPOSE Passengers Colleagues OF THIS Airlines UK communities and environment: local, regional and national

DOCUMENT Investors

HEATHROW’S STRATEGIC BRIEF

The purpose of this Strategic Brief It acts as Heathrow’s brief to colleagues This Strategic Brief will act as the for Heathrow is to set out clearly the and stakeholders on the nature and cornerstone for future business planning high-level aspirations for Heathrow’s aspirations of the airport that we wish to across Heathrow. It sets out Heathrow’s future as we develop future business construct and operate, in order to realise guiding principles for developing plans and transition to become a our vision of giving passengers the best the masterplan options, design and three-runway airport. airport service in the world. It explains construction. It will also inform our how the Heathrow of the future will feel Management Business Plan presented to for all its stakeholder groups. It sets out the CAA. It serves to guide us and offer what expansion can enable and facilitate a sense of direction on our aspirations, to at both the local and national levels. inspire us all to create the best possible Heathrow of the future. This document is not a set of outcomes, requirements, or specific measures for a future Heathrow. These are all critical inputs that will feature prominently within business plans and the expansion programme that will be captured and developed separately. They will, where appropriate, be discussed and shared across key stakeholder groups through consultation.

8 HEATHROW’S STRATEGIC BRIEF | PURPOSE OF THIS DOCUMENT EXPANSION The Strategic Brief sets Heathrow’s On 2 February 2017, the government business direction. It will be a constant published the draft NPS which confirmed throughout the duration of the the government’s commitment to the programme to expand Heathrow and new north-west runway at Heathrow. build the third runway. We will combine Once adopted, the NPS will establish the Strategic Brief’s aspirations with the decision-making framework against those of the government, as set out in which the development consent the Airports National Policy Statement. order application for the third-runway From these two documents we will distil project will be considered. The draft the objectives for our application for NPS describes aspects of the amount, the development consent, which will type and size of development which is authorise a large part of the expansion required. It also provides guidance on programme. Therefore, events such as impacts and requirements. The Strategic new policies and significant external Brief takes into account and responds factors may require the document to be to the content of the draft NPS. It will reviewed. For example, we anticipate be reviewed once the final NPS a review following publication of the is designated to take account of Airports National Policy Statement (NPS). consultation feedback.

THE GOLDEN THREAD THAT LEADS FROM AMBITION TO PLAN

Iterate

5 GUIDING EVALUATION CONCEPT OF VISION OUTCOMES REQUIREMENTS MASTERPLAN PROPOSITIONS PRINCIPLES CRITERIA OPERATIONS

STRATEGIC BRIEF CLIENT REQUIREMENTS MASTERPLAN

9 HEATHROW’S VISION AND STRATEGY

10 HEATHROW’S STRATEGIC BRIEF | HEATHROW’S VISION AND STRATEGY HEATHROW’S VISION AND STRATEGY

11 HEATHROW’S VISION:

12 HEATHROW’S STRATEGIC BRIEF | HEATHROW’S VISION AND STRATEGY HEATHROW’S VISION: TO GIVE PASSENGERS

THE BEST AIRPORT SERVICE IN THE WORLD

13 Heathrow’s growth to a three-runway airport increases the UK’s international connectivity, protects the UK’s hub status, provides OUR early benefits to passengers and the wider economy, secures new domestic routes, doubles freight capacity and delivers significant STRATEGY strategic and economic benefits for the UK. We will provide more jobs, business opportunities and flight connections around the world, and bring benefits to all five strategic proposition groups. This growth is built upon an existing position of strength, depicted opposite in the form of Heathrow’s competitive advantage.

14 HEATHROW’S STRATEGIC BRIEF | HEATHROW’S VISION AND STRATEGY

OVERVIEW KEY DOCUMENTATION DESCRIPTION T

VISION To give passengers the best airport serviceT in the world

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PURPOSE MakingHE RIGH every RjourneyYONE W better HE RIGHT RYONE W

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A C T I P T P D N S D S PRIORITIES G G I V S I G N E G N E O E S R O E WHO WE ARE I U I V F R H R I N C G E I N V G C W N I I O N I S T I I S W T I R GN H V E H B G HR N E VH O T R V R T E O N T A V W T E GT T R M E E I A T A T E ING E O IR R H M HE E H E CU ROYM E W TR T HE PL H H AE RY GR E WE KI ET OJOX RIG S ST ON K HE RIG ET XBLE ON S

NG TOG CELLENT ING TOG CELLENT

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A C G G I T P T P K N E K E VALUES D S I I D S I I V I E V E S I V O E G N M E S C E M C O G N E F W Y R I W F U Y I E G R F I E I H G R I N P R A N E V R S P N T A V I N NP I A O E O S P O AE N I GIN H S ER HD R G R B IN S T R G D R G H E H TE R VO HIT M E R E E R N E H A O E W E T V T TG T N KIEV ETRY X E S A GKI A NET IN V X O RY S T T E I H EV REIRGYHO MOJONRGIYN OTGON EGEV WE CUSTCOEMLLENT T T HENVE GEPR LTYOOG ABILNCEGE G LERLVEENT HE RIGH RYONE W

PROPOSITIONS Our stakeholders’ needs

K K G I I G E E M E E M I F E Y F Y I E EV E V WHAT P A C P A P A P A C W I I S I R I S R W I I R NN V O D N O D R N V O E GG E R V Y G E V Y O E G R R H E ON E IN ER E ON IN ER R H E K T EX VERY S G EV VERY G EV K T EX S STRATEGIC BRIEF OurIN Ghigh-level TOGE C ELaspirationsLENT for the Heathrow of the futureING TOGE CELLENT INCREASING LEVEL OF DETAIL Masterplan and long-term, high-level plans agreed with

MASTERPLAN K K I I E E M E E M E F Y E F Y P A P A P A R P A R ourIN stakeholders S for D developing Heathrow IN S D O O G NE V Y G NE V Y HOW EVERYO ING EVER EVERYO ING EVER MANAGEMENT The actions and resources we need to deliver our strategy BUSINESS PLAN for the next regulatory period

The additional capacity, Our strategic priorities and values In planning to achieve these Looking further into the future, connectivity and increased are how we will deliver the vision. aspirations, we will embrace we are actively anticipating resilience resulting from expansion They reflect a simple business logic: innovation and work with megatrends that will shape our are key enablers for Heathrow’s engaged people deliver excellent partners and stakeholders to world. Our plans will address vision “to give passengers the service, which in turn delivers develop new and innovative these trends and refine the basic best airport service in the world”. financial returns and growth in a solutions in everything we do. assumptions underlying our We believe this vision represents a sustainable way. This is our licence We will look for opportunities to service. We believe our strategy positive ambition – one that aims to grow. grow our commercial revenues will position us to secure both to deliver a world-leading airport and ways to reduce cost while the market share and the loyalty that will grow sustainably and in Our aspirations for each of the delivering on our commitments to of passengers to ensure that support of local communities and five strategic propositions are set the community and environment. Heathrow thrives. As we do national prosperity. This growth out in this document. They define This will drive affordability for so, our people, our airlines, our will ensure excellent service and what Heathrow wants to deliver. passengers and airlines. communities and our country operational resilience while being They also reflect our current will also thrive. affordable and financeable. understanding of stakeholder requirements which will evolve Our strategic framework, shown through ongoing consultation. HEATHROW’S COMPETITIVE ADVANTAGE above, embeds our vision, strategic propositions and this Strategic Brief as key elements to ensure our stakeholders’ interests are central to our future developments UK’S DIRECT at Heathrow. EUROPE’S HUB MAKING EVERY CONNECTION TO OF CHOICE JOURNEY BETTER THE WORLD

WEST AIR HUB SERVICE PROPOSITION CATCHMENTS + + HEATHROW BRAND SURFACE ACCESS INFRASTRUCTURE

15 “NOT AT ANY COST”

Heathrow has a unique and challenging role in balancing a number of competing requirements. The really key question centres on the concept of value, as seen through the eyes of our passengers, airlines, communities, colleagues and investors. It is this balance that Heathrow must seek to achieve in delivering its corporate social responsibility ambitions.

AFFORDABILITY AND LONG TERM AND FINANCEABILITY SHORT TERM

The government has been clear Together with airlines we will work Heathrow has to balance short- that the aim should be to deliver hard to create a plan that delivers term demands with our sustained a plan for expansion that keeps our vision, treats our communities ability to deliver for the future. landing charges close to 2016 fairly and looks to deliver airport If in responding to a succession levels (in real terms). We will work charges close to 2016 levels. We of short-term demands, we with airlines, government and must also ensure that the plan can fail in the long term, this is not our regulator with the objective be financed with the appropriate an acceptable or responsible of achieving that goal. The airline level of risk. proposition. Heathrow’s task is to community has set an objective of secure the correct balance. keeping charges flat in real terms, and we are keen to explore, as a matter of priority, whether it will be possible to deliver the scheme while keeping airport charges close to 2016 levels.

16 HEATHROW’S STRATEGIC BRIEF | HEATHROW’S VISION AND STRATEGY “Not expansion at any cost but the right scheme at the right price…[the] aim should be to deliver a plan for expansion that keeps landing charges close to current levels”.

CHRIS GRAYLING, SECRETARY OF STATE FOR TRANSPORT, STATEMENT TO PARLIAMENT, 25 OCTOBER 2016

PUBLIC AND SUSTAINABILITY PRIVATE VALUE AND GROWTH

Heathrow’s privately funded Heathrow’s sustainability leadership status requires value creation, plan, Heathrow 2.0, demonstrates with secure and stable returns. our ambition for sustainability. Heathrow’s critical role in the It is core to our values, our growth UK economy and unique UK and our value creation. It is key hub status means Heathrow because of our long-term is a nationally significant planning horizons, our potential asset recognised through to impact the environment and systems of regulation and our communities and the legacy government scrutiny. we create and pass on.

Striking this balance where stakeholders’ views differ will require Heathrow to lead and influence.

17 PROPOSITIONS

18 HEATHROW’S STRATEGIC BRIEF | PROPOSITIONS O W E C O S H R Y S T A T E M E H

COLLEAGUES PASSENGERS

To create a values-led service To deliver journeys that, at their S

culture, with sustainability, diversity heart, will be simple, quick and T S A R and respect at its heart. reassuring with an enjoyable and T E distinctly British style of service that U N is the best in the world. T T O R R A Y P

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To provide airlines and their To deliver an appropriate balance R M

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efficient, reliable and sustainable Heathrow an attractive global I E

O airport – providing the right infrastructure investment, and

securing Heathrow’s role at the S C conditions for connectivity and cargo. heart of the British economy.

UK COMMUNITIES AND ENVIRONMENT: LOCAL, REGIONAL, NATIONAL To grow sustainably, earning the trust of our local communities and stakeholders by setting out clear plans to deliver the greatest possible benefits R E to businesses and communities across V the UK, creating a lasting legacy for all N E of the United Kingdom, while reducing I N our environmental impacts. A U H E C G L Y E N P E P R A S U T O R S

19 PASSENGER PROPOSITION

Heathrow’s vision is to give passengers the best airport service in the world. We will do this by focusing on happy passengers, travelling with their bags, on time. Passengers will experience journeys which will be simple, quick and reassuring with an enjoyable and distinctly British style of service.

To achieve this, we will need to The design of new and recognise and care for the true end- upgraded facilities will play a to-end nature of passengers’ journeys, substantive role in enhancing the whether they be connecting, arriving passenger journey, and will or departing. We will demonstrate consider both physical and care through traditional British behavioural security. Journeys will ingenuity across all channels, from start with intuitive and navigable mass transit to genuinely personalised surface access options. Passengers experiences. This will require close will be able to choose differentiated partnership working. This includes and personalised journeys thanks sharing data and information to offer to targeted adoption of flexibility and agility while maintaining technologies and innovative digital security. products. We will provide a world- class connections experience, Heathrow will deliver seamless travel delivering comfort and ease. experiences and compelling service offers. We will create these by Our airport and terminal spaces understanding who our current and will bring to life the uniqueness of future passengers are, their needs and London, the UK and Heathrow in a their motivation to travel. Heathrow memorable and coherent way. will strive to ensure journeys are The design style of our buildings manageable, while being constantly needs to continue to create a aware of passengers’ evolving and sophisticated and contemporary changing needs. We will recognise the setting for a well-planned and diversity of different passenger groups, organised operation. It will instil whether they are premium, in need a sense of calm, confidence and of assistance or support, travelling reliability in the passenger. for leisure or business, flying direct or connecting through Heathrow.

20 HEATHROW’S STRATEGIC BRIEF | PROPOSITIONS

HOW WE WILL WHY IT IS GET THERE IMPORTANT

Expansion will place Heathrow Passengers will choose to fly within the top three airports from Heathrow, driving globally for service and ambience. passenger numbers and growth It will be a distinctive place with a for Heathrow. unique look and feel. Heathrow will demonstrate that we Heathrow’s reputation for are listening to passenger insight predictability, reliability, safety and and responding to feedback. security will be reinforced. We will Passenger sentiment will be do so by responding to airline and enhanced with a sense of place. passenger needs and requirements. Passengers will choose to spend Passengers will experience greater time and money at Heathrow choice in services and better value as we meet and exceed their for money, including a broad expectations. commercial offer that will be Increased competition and choice differentiated and tailored to their between airlines will bring benefit individual needs. to all travellers. In line with our publicly stated Seamless passenger experience commitments, we will encourage will drive passenger choice. public transport usage and help A compelling surface access make journeys to the airport more offer will sustainably connect efficient and convenient. Heathrow to UK towns and cities, Seamless and sustainable spreading the benefit of expansion passenger experiences will throughout the UK. be aligned with our social, Our passengers are increasingly environmental and local ‘sustainability aware’ and community commitments. rewarding responsible companies Passengers’ brand affinity with with their custom and loyalty. Heathrow will increase. Airline and passenger trust in Heathrow will be strengthened, increasing the value of the Heathrow brand and reinforcing its role as a national asset.

21 COLLEAGUE PROPOSITION

Heathrow will only deliver the best airport service in the world if we recruit skill and retain the best people and develop a flexible, motivated, efficient, diverse and engaged team.

Heathrow is already a great place to work. Working together through Team Heathrow, we will harness the capabilities and commitment of every person who interacts with our passengers directly or indirectly in the pursuit of giving passengers the best airport service in the world. Heathrow will work to improve the health and wellbeing of all colleagues, so that everyone working at Heathrow goes home safe and well. As the airport grows and is able to provide thousands of new job opportunities, we will focus on helping people find the right work at Heathrow, and nurture them to fulfil their potential. We want to make Heathrow a career destination of choice with a strong culture of sustainability. This will in turn create greater mobility across our communities. Heathrow will create a values-led service culture. Sustainability, diversity and respect will be at its heart. Women and minority groups will be actively and fairly represented in our workforce. Heathrow will reflect trends in ways of working to ensure it stays ahead of competitors.

22 HEATHROW’S STRATEGIC BRIEF | PROPOSITIONS

HOW WE WILL WHY IT IS GET THERE IMPORTANT

1. Ensuring Heathrow is a 3. Focusing on diversity The health, wellbeing and safety Heathrow will be known as an ‘Great Place to Work’ and inclusion of our colleagues will improve. inclusive employer. Diversity will We need to empower and We want to ensure that our This will lead to a healthier, more drive greater creativity, guard support colleagues across the workforce is reflective of the mindful workforce with reduced against groupthink and attract airport. We need to be clear what community and our passengers. absenteeism, greater agility and a talent from all walks of life. It will a ‘Great Place to Work’ will be. We will reflect the diversity of positive whole-life balance. allow us to reflect and better serve our diverse passenger base and We will ensure Heathrow is a safe our local community at every Colleagues will choose to start, local community. place to work where everyone can level of the company. Inclusivity build and maintain their careers get to their destination and return will bring a richness of people at Heathrow, demonstrating both It will be easier to work at, and to home safe and well. and ideas which leads to better loyalty and discretionary effort. get to Heathrow for all colleagues, solutions, breaks down Heathrow will help create while being respectful of their life groupthink and helps us adapt The capability, productivity and 10,000 apprenticeships by 2030, stage and personal needs. to passenger needs. motivation of our workforce developing skills that are not even will increase. known about today. Heathrow’s Heathrow will build upon its many Skills Taskforce is helping to inform years of trade union recognition, Through vital new apprenticeships, our future education, employment working in partnership with this a future Heathrow will give and skills strategy. This will key stakeholder group in order to thousands of children growing up underpin the successful delivery of deliver this ambitious colleague today the skills and training they the skilled people needed to build proposition successfully. need to access the jobs of the and operate an expanded future. We will leave a legacy of airport operation. 4. Focusing on the community skills for the long term. We will be one of the best Heathrow expansion has 2. Driving productivity community employers in the UK, the potential to end youth and efficiencies providing meaningful careers unemployment in the five We will work together to in a changing world of work, local boroughs. deliver the service proposition, developing a culture where encouraging passengers to everyone can reach their potential. Colleagues will be attracted choose Heathrow over other to Heathrow as we will options. We will continue to drive 5. Sustainable transport clearly demonstrate our culture efficiency in line with productivity Heathrow will facilitate of sustainability. growth and our peers. We will transport options that ease reward our great people with colleagues’ journeys to work market-competitive packages. and are sustainable.

23 AIRLINE PROPOSITION

Airlines and their customers are at the heart of the Heathrow proposition. It is therefore critically important that we develop an expanded airport that meets their needs.

First and foremost, we will work We will work with the airlines collaboratively with our airlines at Heathrow to deliver a to ensure that safety and security seamless customer experience underpin everything we do. for all passengers. The Heathrow of the future will We will support the cargo business provide airlines and their customers of airlines at Heathrow to ensure with an affordable, efficient, the airport is an efficient and reliable and sustainable airport. reliable hub for inbound, outbound It will recognise the importance and transhipment cargo. of innovation, affordability and Heathrow will work with airlines value for money. Creating the and their operational teams to right economic and operational develop an agreed approach conditions will help airlines grow to resilience, supporting quick as they look to develop their route recovery to business as usual. networks from Heathrow, both internationally and domestically.

24 HEATHROW’S STRATEGIC BRIEF | PROPOSITIONS

HOW WE WILL WHY IT IS GET THERE IMPORTANT

We will forge a strong collaborative A collaborative approach to safety, environment with our airline security and sustainability will customers at Heathrow to respond produce a more resilient Heathrow effectively on all aspects of safety, for the benefit of all. security and sustainability. A leading airport requires airlines An expanded Heathrow will to be successful. This is why be delivered in a way that is Heathrow must deliver the right affordable to airlines and enables operating environment for our profitable operations. It will airline customers. also ensure that impacts on the By creating the best European environment and communities are airport for cargo-handling properly mitigated. predictability, Heathrow will Heathrow will work with continue to be the UK’s number the airlines and wider cargo one port by value and support community to enhance the airline route economics. infrastructure and business Maintaining Heathrow as the model required to create an UK’s only hub airport will support efficient, reliable and cost-effective a wide range of airlines who cargo hub. choose to connect their passengers An expanded Heathrow will offer through Heathrow. Increased present and future airlines the capacity will allow airlines to best opportunity to grow their grow their networks in the way route networks both internationally they want. and domestically. Heathrow will continue to be Heathrow will work collaboratively considered as an important with all airlines to create an destination for airlines. airport that best serves our Both airport and airlines must work complementary business models. closely together to maximise value We will look innovatively at new and best serve the interests of our technologies and ways of working passengers and cargo businesses. to maintain our global reputation. Innovation and agility are required to keep pace with passengers’ expectations, anticipate new trends and deliver efficiencies.

25 INVESTOR PROPOSITION

Heathrow will deliver an expanded, commercially successful airport. We will deliver a plan that creates economic value and therefore the opportunity for increased returns for the airport and airlines.

The United Kingdom’s hub airport This will deliver a cost-effective, will be privately financed. We will stable, diversified financing base deliver resilient, timely and value- for the business. for-money infrastructure. To invest An expanded Heathrow will be in long-term growth at Heathrow, passenger-focused, commercial the business case for expansion and efficient. We aspire to needs to generate sufficient value become a centre of excellence for for Heathrow to enable long-term, investment and asset management, predictable and stable financial by setting the appropriate returns and adequate risk sharing, portfolio strategy, allocating capital reflecting the higher-risk nature effectively and driving excellence of the investment. This will allow through execution. finance to be raised. Regulation will need to be Equity investment will continue appropriate, stable and adequately to be complemented by debt reflect risk and return. investors. An expanded Heathrow will continue to provide strong and stable returns to pension funds, insurers and creditors in the UK and across the world.

26 HEATHROW’S STRATEGIC BRIEF | PROPOSITIONS

HOW WE WILL WHY IT IS GET THERE IMPORTANT

Build on the strength of today’s Heathrow is already the largest airport, maximise our existing wholly privately-owned airport infrastructure and complement it. globally. To attract further investment there must be a plan in Set a plan that stimulates airline place that provides the opportunity demand and creates economic for strong and viable returns. value, providing an opportunity for increased return for the airport Airline customers should also have and airlines. the opportunity to generate returns from growth. Ensure the regulatory framework is stable and predictable to assure Heathrow’s financing is investors of ongoing strength and underpinned not only by the reliability of cash flows. commitment of shareholders but also by creditors. Keep risk levels at an acceptable level to retain stability Heathrow builds from a position of for long-term debt financing strength and must aim to maintain which underpins investment in its credit ratings in order to be able the airport. to deliver an affordable airport successfully. Develop a plan that can adapt to future needs with the ability Stable and appropriate regulation to flex investment in line with a is a critical enabler. changing world. A phased approach to investment Develop a plan that delivers early will provide flexibility to adapt to growth in passenger numbers by an evolving future, minimise risk the timely creation of additional and maximise opportunity. airport capacity from new and Early generation of additional existing facilities. passenger revenue is a key Deliver on our commitments enabler for an affordable and – no surprises – and build trust financeable scheme. with stakeholders.

27 COMMUNITIES AND ENVIRONMENT

The operational footprint and influence of our business extend throughout the UK and the world. Therefore, Heathrow’s community is local, regional, national and also global.

Working with partners at local, A key ambition of Heathrow is An expanded Heathrow will regional and national levels, we to be a better neighbour so that bring benefits to all the regions will deliver on the objectives of the area surrounding Heathrow is and nations of the UK. It will Heathrow 2.0, our sustainability a great place to live. Heathrow’s ensure that all of us, not just leadership plan. Heathrow 2.0 aims proximity to central London has London, have access to new to make Heathrow a great place great advantages for passengers. global destinations and to live and work, to underpin a It also means we are located emerging markets. thriving sustainable economy and close to many homes and local We will develop and maintain to ensure a world worth travelling. communities. We recognise that a culture of environmental and our local impact is significant. We Our exemplary sustainable social responsibility consistent are committed to reducing the airport will benefit more than with our objective of operating negative impacts of our operation just airport users. It will be a sustainable, zero-carbon airport and making sure our local impacts prized asset for local communities infrastructure. are as positive as possible. to access jobs, careers and enhanced services. Meanwhile, its We plan to grow Heathrow while operation will meet or exceed our continuing to reduce the number stretching commitments on noise of people affected by noise. We and air quality. will also reduce emissions from all sources of airport activity, so that we play our part in improving the quality of air locally. We will take significant action to reduce impacts. We are committed to sustainable aviation for the benefit of all communities. We will collaborate with our industry and wider interest groups to accelerate the era of sustainable flight.

28 HEATHROW’S STRATEGIC BRIEF | PROPOSITIONS

HOW WE WILL WHY IT IS GET THERE IMPORTANT

Heathrow will make the United Noise impacts will be minimised. As the UK charts a new course Kingdom stronger by providing We will provide predictable respite outside the EU, British businesses additional airport capacity to and a six-and-a-half-hour period will benefit from new links to the support the creation of new routes without scheduled arrivals and world’s fastest growing markets, and maintain the United Kingdom’s departures, thereby contributing like China, India and Mexico. place in the world. to a better night’s sleep. Heathrow will improve connectivity, Heathrow will encourage and Our committed goal is to expand for example, through our route- promote domestic connectivity Heathrow while affecting fewer development fund and surface by working in partnership with people with noise. Our submission access strategy. Connectivity will airlines and regions to support to the drive economic growth, attracting their commercial viability. showed how a combination of inward investment and directing Local, regional and national quieter planes, quieter airport high-value global tourists to more communities will be better design and quieter operations regions of the UK. connected as a result of Heathrow mean that it is possible to grow Heathrow’s capital investment will expansion, through multiple modes to 740,000 ATMs by 2040 while increase prosperity and opportunity of transport. affecting fewer people by noise for businesses and organisations than were affected in 2013. The We will actively support UK locally and nationally through our Airports Commission’s own analysis use of a UK-wide supply chain. manufacturing and businesses by confirmed that this is possible. advertising our requirements in the More people in local communities United Kingdom and taking into We will work with airline partners will actively support the growth account socio-economic impacts and other stakeholders to develop of the airport and the benefits when purchasing. policy and technology solutions to it brings. decouple growth in aviation from We will establish Heathrow as a climate change. The progress made by the airport world-leading airport in reducing community on sustainability issues emissions, and play our part in Sustainability principles, including will build wider support from improving local air quality. It will be the concept of a circular economy, communities of interest regionally, easier to leave the car at home for will guide all aspects of airport nationally and globally. design, construction and operation those working and travelling – our Heathrow will demonstrate goal is to deliver expansion with no to deliver a resource-efficient, zero- waste airport. alignment with global initiatives more airport-related traffic. to address climate change and We will work collaboratively with resource scarcity. local stakeholders to plan areas around the airport that improve quality of life. We will deliver high-quality open and green spaces, providing more options for local people to walk and cycle to Heathrow and around the local area.

29 OUR COMMITMENTS

TO THE UK COMMITMENT 1 Connect Britain to economic growth by enabling airlines to add new flights to fast-growing markets. Local, regional and national communities will be better connected as a result of Heathrow expansion, through multiple modes of transport. Through vital new international and domestic connections, an expanded Heathrow will help salmon farmers in Scotland sell more of their produce in Asia, boost investment in Liverpool’s burgeoning services industry, and help cutting-edge renewable energy companies in Newcastle reach new markets.

It is why we have committed to During construction, before and a package of measures aimed at after the opening of the new promoting connections between runway, our procurement approach the UK’s nations and regions, will draw on the talent and and Heathrow, the UK’s only resources of businesses right across hub airport. These valuable new the country. We will leave a legacy connections – by road, rail and air of construction excellence that can – will strengthen city regions across be exported all around the world. the United Kingdom, boosting COMMITMENT 6 An expanded Heathrow is a truly tourism outside of London and the national infrastructure project, and South East and helping small and Lessen noise impacts we are committed to delivering medium-sized enterprises to export for people under it in partnership with businesses, to growing markets. flight paths business groups, elected officials, airlines and airports in every part of by delivering periods of noise the United Kingdom. respite with no aircraft overhead and providing noise insulation for people in high-noise areas.

30 HEATHROW’S STRATEGIC BRIEF | PROPOSITIONS COMMITMENT 2 COMMITMENT 3 COMMITMENT 4 COMMITMENT 5 Connect UK nations Protect more than Build more quickly Reduce aircraft noise and regions to global 114,000 existing local and at lower cost to by encouraging the world’s markets jobs and create tens of taxpayers than building quietest aircraft to use Heathrow by working with airlines and thousands of new jobs a new airport and by routing aircraft higher government to deliver better nationwide by building on the strength the over London so that noise affects air and rail links between UK by developing our local UK already has at Heathrow. fewer people than it does today. regions and Heathrow. employment, apprenticeships and skills programmes and supporting a supply chain throughout the UK.

COMMITMENT 7 COMMITMENT 8 COMMITMENT 9 COMMITMENT 10

Treat those most Keep aviation CO2 Increase the proportion Reduce delays affected by a third emissions within UK of passengers reaching and disruption runway fairly climate change targets Heathrow by public by further improving Heathrow’s by ensuring compensation and play our part in transport to 55% resilience to weather and greater than market value is meeting local air by supporting new rail, bus and unforeseen events. offered to anyone whose home quality limits coach schemes to improve public needs to be purchased. by incentivising cleaner aircraft, transport to Heathrow. supporting global carbon trading, and increasing public transport use.

31

HEATHROW ECOSYSTEM

The service provided to passengers is the COMMERCIAL PARTNERS combination of a highly complex and Heathrow creates the opportunity The most successful physical for short, medium and long-term retail and property environments interconnected system of services from value and revenue generation. We seek to enrich the customer will adopt a commercial approach experience to increase dwell time, different organisations. Heathrow works that fulfils our operational engagement and spend. Heathrow ambitions as well as those of our is uniquely placed to provide collaboratively and in partnership with all partners, including plans for longer retailers access to a large and the organisations in this ecosystem, which term land use. The Heathrow growing audience and to create ecosystem supports a multitude of brand presence – particularly to currently consists of over 400 organisations non-aeronautical revenue streams, international customers. That said, from retail offers in the departure the provision and promotion of and 76,000 people – Team Heathrow. lounge to property agents with interactive, stimulating and new terminal adjacent hotels. Heathrow offers and service propositions It is Heathrow’s aspiration for Team is well placed to take advantage of will serve to protect income and ongoing trends in the competitive engagement as more seamless and Heathrow to operate from the passengers’ commercial marketplace. more predictable journeys become a reality. perspective as one organisation, with Achieving our ambitions will require us to be more proactively We will create a truly integrated perfect alignment of vision, values, culture engaged with our passengers transport hub at Heathrow from the time of ticket purchase, through a superb choice of public and priorities across all organisations. so that they can pre-plan trips to transport offerings. Rail, , This will require Heathrow to carry these the airport and pre-order goods underground and coach stations and services. Heathrow Boutique, converge to offer an attractive aspirations into its stakeholder and the Heathrow App and on-site commercial opportunity to develop Wi-Fi will all play key roles in hotels, offices and complementary supply chain engagement, as well as its allowing us to maximise the retail opportunities. Heathrow will potential of meaningful digital be a hub not just for aviation, but procurement activities. interaction with our passengers. for all modes of public transport. Our digital offer will also improve the end-to-end journey for customers, from on-site signposting and pro-active wayfinding to personalised messaging.

32 HEATHROW’S STRATEGIC BRIEF | PROPOSITIONS

SUPPLY CHAIN Heathrow recognises that we Heathrow’s portfolio offers a cannot achieve our commitments wide range of opportunities for alone. Our supply chain sits at the the supply chain, ranging from heart of our plans, and by working IT equipment, baggage systems collaboratively we can create a and construction to facilities better, fairer future. We are keen management, not to mention to work with Britain’s supply all the component parts that chain in the best possible way. make up these diverse supply To level the procurement playing chain needs. We recognise that field, we will flex our contracting people are the critical component approach to remove hurdles for to making a successful supply smaller suppliers to ensure fair chain. Our ambition is to grow a payment terms and cash flow are thriving supply chain that supports cascaded through the supply chain. numerous jobs and opportunities By doing this, we look to provide for local people and others across opportunities for new and smaller the UK. businesses to work either directly New skills will be needed to with us, or within the extended build and run the Heathrow of supply chain. Where a supplier is the future. To do this, we will not directly procured by us, we will champion the creation of new seek assurance that the supplier is apprenticeships and training not on less favourable terms than opportunities within our supply a 1st tier supplier and that the chain and by doing so, enhance balance of risk and reward is fair economic growth for the region for the works being undertaken. and the UK. Heathrow is keen to encourage Collaboratively, we will work a diverse supply chain and with our supply chain to build embrace innovation to help a platform for excellence in achieve new standards of delivery. sustainability, while reducing the The use of Logistic Hubs across the effects on the environment and UK will allow for pre-fabrication the local community. and off-site manufacturing enabling us to spread the benefits and to really include the nation’s business community in what we do at Heathrow.

33 STATUTORY AUTHORITIES

The primary statutory UK BORDER FORCE authorities that operate at Border Force is a law enforcement Cooperation will continue on a command within the Home Office. range of immigration and customs Heathrow are UK Border Force Border Force secures the border initiatives, with a specific and and promotes national prosperity ongoing focus on the deployment and the Metropolitan Police by facilitating the legitimate of automation. Heathrow and movement of individuals and Border Force will collaborate to Service (MPS), who play key goods, while preventing those modernise the arrival process, roles in protecting passengers that would cause harm from making it smoother and hassle-free entering the UK. This is achieved for passengers arriving into the UK. and colleagues. through immigration and customs Recognising the diversity of checks. As the UK’s position passengers and the specific needs within Europe and the world of some passenger segments will evolves, so Border Force will have ensure that care stays front of to respond and adapt. How this mind in terms of both is done will be critical, not just infrastructure and service. Likewise, to border security but also to the understanding our key markets overall arrivals journey and the and looking to create automated, passenger experience. seamless journeys through pre- Border Force is the face that registration, trusted traveller-like welcomes every arriving schemes will continue to form passenger to the United Kingdom, a key focus for Heathrow, our be that in person or through passengers and airlines. automated e-gates. This critical role in setting perceptions has brought ever-increasing scrutiny and a desire to speed up entry while maintaining the most stringent levels of security.

34 HEATHROW’S STRATEGIC BRIEF | PROPOSITIONS UK POLICE The MPS is a key law enforcement partner at Heathrow, with two key commands:

SO15 The MPS’s Counter Terrorism Command, SO15, has primary responsibility for countering terrorism risks at the border through the examination of persons, items and freight entering and leaving the UK. We work closely together to ensure threats to the border or airport are appropriately mitigated.

SO18 S018, the MPS’s Aviation Security Command, account for most of the police operating at Heathrow. Providing protective security for the airport means we collaborate closely and coordinate our security activity. Our strategies will continue to align closely to ensure that our capabilities remain relevant and appropriate for any future Heathrow operating model.

35 FUTURE OPERATING ENVIRONMENT

36 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATING ENVIRONMENT Heathrow recognises that the To expand in the image of today’s world in which it will be designing, airport will not stand the test of time. building and operating an So we need to look to the global expanded airport is both complex megatrends, as we understand them and multifaceted. The pace and today, in order to develop underpinning FUTURE impact of societal, technological, assumptions that will allow an expanded economic and environmental Heathrow to anticipate and address those change will be unprecedented. future requirements.

Equally, a framework to consider the OPERATING likelihood, risks and benefits of innovation is likely to be required in order to determine which innovation ENVIRONMENT to develop and adopt. This section covers:

• Future megatrends and their implications for Heathrow.

• Competitor and Comparator Airports’ plans for future infrastructure and service.

37

“WE STAND IN A TECHNOLOGICAL REVOLUTION THAT WILL FUNDAMENTALLY ALTER THE WAY WE LIVE, WORK AND RELATE TO ONE ANOTHER. IN ITS SCALE, SCOPE AND COMPLEXITY, THE TRANSFORMATION WILL BE UNLIKE ANYTHING HUMANKIND HAS EXPERIENCED BEFORE”.

KLAUS SCHWAB,WORLD FOUNDER ECONOMIC AND EXECUTIVE FORUM CHAIRMAN,

38 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATING ENVIRONMENT

“IATA SEEKS TO ENSURE THAT AIRPORT DEVELOPMENT STRATEGIES RESULT IN AFFORDABLE, FLEXIBLE FACILITIES THAT SUPPORT AIRLINE OPERATIONAL AND CUSTOMER EXPERIENCEAND INREQUIREMENTS, THE FUTURE”. NOW

INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA) 2017

39 Megatrends can be thought of as It is impossible to predict the future. Yet the more Team transformative, global forces with the Heathrow pools its view of potential future scenarios to align potential to define our future world with hypotheses and assumptions, the better placed we will all be to their far-reaching impact on business, respond to dynamic future change. societies, economies, cultures and personal This dynamic future change will lives. Using this megatrend lens, Heathrow require operating models to be flexible and agile. This creates has worked with futurologists to identify the requirement for our new infrastructure to be adaptable sub-trends relevant to aviation. We have to changing operating models. This brings with it a fine balance created clusters of themes from which we of managing cost, yet providing can develop approaches that best prepare adaptable infrastructure. What is clear is the opportunity for us for the future. the broader Team Heathrow to innovate for efficiency and affordability for the benefit of all five strategic propositions.

GLOBAL MEGATRENDS TO 2040

40 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATING ENVIRONMENT MEGATREND: Connectivity and convergence CONNECTIVITY Cognitive era AND CONVERGENCE Bricks and clicks DEFINITION AND STRATEGIC Smart is the new green SUB-TRENDS IMPLICATIONS By 2025, there will be 120 billion Passengers will want to stay Social and geopolitical trends connected devices worldwide and connected throughout their over 5 billion internet users. This journeys. Technologies of the Health, wellness and wellbeing will enable multiple innovative future, coupled with big data applications that will change and faster connectivity, will the way we live, communicate make this possible. Such New business models and conduct business, creating a ‘connected travellers’ will have connected world in the future. access to new navigation systems Urbanisation – city as a customer and digital services, information and experience to augment their Future of infrastructure Augmented and virtual reality airport experience. Big data Innovating to zero Space jam (proliferation of satellites) Future of energy Cyber security Connected living New markets beyond BRICS* Autonomous world Future of mobility 5G – high-speed connectivity

* An acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa

41 MEGATREND: MEGATREND: COGNITIVE BRICKS AND ERA CLICKS

DEFINITION AND STRATEGIC DEFINITION AND STRATEGIC SUB-TRENDS IMPLICATIONS SUB-TRENDS IMPLICATIONS The world will enter the cognitive Next-generation technologies ‘Bricks and Clicks’ denotes the Digital touchpoints will proliferate era as developments in artificial will move airport systems retailing norm of the future where within retail, with the retail intelligence evolve, introducing from automation towards retailers will merge the digital and environment encompassing solutions that are not just cognition. Future systems will physical worlds into one hybrid anything from stores to a virtual intelligent in terms of decisions autonomously react to issues such Bricks and Clicks model. Nearly or tangible space where an taken, but can also learn from as overcrowding or late passengers 35% of all retail sales will be experience can be delivered. data. By 2040 the world will be with reduced human intervention made online by 2030. Shopping Passengers, shopping-on-the-go run autonomously through and zero delay. Such intuitive and experiences will become more online, will expect spaces such solutions that resemble the human-like machine learning connected with multiple digital as airports to serve as digital human brain including will improve predictability and customer touchpoints and more retail destinations as well as autonomous cars and mobile passenger journeys. personalised customer journeys. transportation hubs. robots. Most mundane tasks in the future will be completed by such autonomous systems. Experience stores Click and collect Predictive analytics Digital kiosks Machine learning Online hypermarkets Mobile robots Quantum computing

42 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATING ENVIRONMENT MEGATREND: MEGATREND: MEGATREND: SMART IS THE SOCIAL AND NEW GREEN GEOPOLITICAL TRENDS

DEFINITION AND STRATEGIC DEFINITION AND STRATEGIC SUB-TRENDS IMPLICATIONS SUB-TRENDS IMPLICATIONS Green technology will evolve In the future, being ‘smart’ for Changing social trends in Airports will be dealing with a towards smart products which airports will mean instrumenting Generation Y1 and Generation significantly more diverse group will provide the same sustainable infrastructure with sensors and Z2, rise of the middle class, of passengers than today – end result but with better returns analysers to optimise functions. reverse brain drain and the global comprising first-time travellers, on investment. Smart products For example, existing airport empowerment of women will new income groups, more will feature capabilities of data buildings could become smarter usher in a heterogeneous world. females, emerging economies and collection and communication through sensors monitoring The ‘mass market’ will cease to the ageing population. Service enabling them to take corrective temperature or lighting to exist as diverse groups emerge models will need to be adaptive action proactively. reduce energy use. demanding more customised and with values, ethics, language and personalised products. cultural fundamentals in evidence.

Smart cities Empowerment of women Smart mobility Ageing population Smart buildings Generation Y and Generation Z Smart security Rise of middle class

1 Born between 1982 and 2004 43 2 Born between 1996 and 2010

MEGATREND: MEGATREND: HEALTH, WELLNESS NEW BUSINESS AND WELLBEING MODELS

DEFINITION AND STRATEGIC DEFINITION AND STRATEGIC SUB-TRENDS IMPLICATIONS SUB-TRENDS IMPLICATIONS In the Western world, healthcare Catering to an ageing population Next-generation business Airports should look to adapt costs are set to account for a fifth will have to become an essential models will be disruptive to new business models as of total government spending by part of the airport/aviation design and redefine future business future consumers become 2025. Consequently, the old model process and overall strategy. With propositions and influence prosumers – sharing resources, of treating symptoms will give heightened interest in wellness, future technology and product such as work space, cars and way to more holistic solutions that overall life expectancy will increase development. They will drive other assets. It will be critical involve early diagnosis and efforts meaning future travellers will be innovation across a whole to understand how the sharing to prevent disease in the first place. hyper-aged with very different spectrum of industries through economy will impact established Gadgets, drugs and services that needs, physical and cognitive. In aggregating and crowd-sourcing income streams such as car parking. enable monitoring and prevention particular, Heathrow will focus on products, services and even Airports must innovate to respond will see rapid adoption as the accessibility in end-to-end journeys ideas leading to mass and protect income streams. wellness trend takes precedence to which require minimal hand-offs disruption of existing norms treatment at a societal level. and mode changes. and revenue models.

E-health/M-health Crowd-sourcing Personalised medicine Personalisation Medical tourism Sharing economy Wellness gadgets (smart watch) On-demand services

44 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATING ENVIRONMENT MEGATREND: MEGATREND: MEGATREND: URBANISATION – FUTURE OF CITY AS A CUSTOMER INFRASTRUCTURE

DEFINITION AND STRATEGIC DEFINITION AND STRATEGIC SUB-TRENDS IMPLICATIONS SUB-TRENDS IMPLICATIONS Over the next decade the world Urbanisation will make airports The worldwide investment in Surface access infrastructure will experience a huge migration more accessible and position infrastructure (port, rail, road investment will stimulate more to urban areas, transforming them to become economic hubs, etc.) development is expected travel as consumers will have a traditional cities as we know them creating opportunities to develop to cross US$27 trillion by 2025 wider network of airports and other today into economic hubs. In the community amenities and services. with transport accounting for the transport options to choose from. next decade, nearly 58% of the With the rise of a network of majority. The focus will be on faster While competition from rail will global population is to be located mega airports, London’s role within and more efficient services. For emerge, overall improvements in in these hubs leading to three global connectivity needs to be example, heavy investments are connectivity through infrastructure major sub-trends below: actively promoted. In particular, being made in high-speed rail to linkages will drive air-passenger Heathrow’s hub model will play a make mass transit safer and faster, volumes. Heathrow will have a key critical role in connecting secondary connecting both countries and role to play as an intercontinental Mega cities cities across the globe. Such routes continents. With this, high speed transport hub for surface access (population of over 8 million) being unlikely to have traffic rail will not only connect countries transport as much as it is an aviation volumes to support direct links will but also continents in the future. hub for global air traffic. Mega regions require global hub airports. (population of over 15 million) Mega corridors High-speed rail (population of over 25 million) New trade routes Future of transportation

45 MEGATREND: MEGATREND: INNOVATING FUTURE OF TO ZERO ENERGY

DEFINITION AND STRATEGIC DEFINITION AND STRATEGIC SUB-TRENDS IMPLICATIONS SUB-TRENDS IMPLICATIONS Innovating to zero is a mega In a zero concept world, all major Future of energy is expected to Businesses and fuel-reliant vision of a ‘zero concept’ world entities, including airports will witness a shift in fuel balance industries such as airports will need with zero emissions, zero explore ways to become carbon- addressing the worldwide energy to leverage alternative fuel sources accidents, zero fatalities, zero neutral and zero-vision focused. demand with new technologies to reduce their carbon footprints. defects and zero breaches of For example, expectations from such as smart grids and alternative Emphasis will be placed on security. Future systems will customers and passengers will be energy sources. The future of monitoring the consumption and become ‘fail-proof’ – systems high around zero accidents and energy management is expected distribution of energy, exploring without unnecessary or unwanted zero security breaches. to drive a multiple convergence of innovations in smart outcomes. Such visions will technologies, markets, competition grids and micro-generation. As part of Heathrow 2.0, our influence a revolutionary and business models, resulting Offsetting strategies and selling Sustainability Leadership Plan, a change ensuring a sustainable in greater operating efficiency in renewable energy back to the grid goal of ours is to create a zero- future world. storage and distribution. too will be commonplace. carbon airport – a place that is run on renewable energy and that delivers zero waste. To do this, we Zero waste Energy harvesting will deliver a resource-efficient, Zero accident zero-waste airport and support a Smart grids circular economy. Specifically, we Zero error Energy management will target zero waste by 2050. Carbon-neutral world We will also change airport-wide Renewable energy culture to value resources and disincentivise waste, including the promotion of ‘sharing’ models to make better use of our resources.

46 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATING ENVIRONMENT MEGATREND: MEGATREND: MEGATREND: NEW MARKETS, FUTURE OF BEYOND BRICS* MOBILITY

DEFINITION AND STRATEGIC DEFINITION AND STRATEGIC SUB-TRENDS IMPLICATIONS SUB-TRENDS IMPLICATIONS The next two decades will see As power shifts to growing The future of mobility is in a multi- A decline in car ownership may significant economic power economies, hub airports will modal dynamic solution combining well be offset by urban population shift between countries. have to position themselves as a journey from A to B through increase, but the evolving business Companies will now look at connecting nodes between the seamless integration of different model needs to be understood, new economies Beyond BRICS* major origination and destination forms of transport, and with one as will the resultant impact on with emerging middle classes as points of high-growth markets. single digital touchpoint. Future baggage drop-off norms. Airports new emerging hotspots for their Airports in regions such as Africa mobility will be less reliant on car will need to explore autonomous products and as markets and hubs will double their capacity in the ownership and depend more on transportation to orchestrate for business operations. next five years as regional growth journey enablers and shared assets. mobility flows – airside and is realised and spending on travel landside – to gain better returns increases. London should with higher throughputs and New passenger routes respond to support them and Connected cars seamless passenger journeys. to reap the benefits. Future of Africa Integrated mobility Rise of ASEAN** Car sharing Autonomous transportation

* An acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa ** Association of Southeast Asian Nations including Brunei Darussalam, Myanmar/Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam

47 WHAT COULD A OUS EUTRAL OM AI -N A N RP N IR O O O P T O R B U T R R FUTURE HEATHROW BE? A A T

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P LISED J ODAL O A OU RM H N R E U The implications of O N T B S IN R E E Y the megatrends on P travellers – 14 themes that the future airport may choose to consider.

48 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATING ENVIRONMENT COMPETITOR AND COMPARATOR AIRPORTS 15 14 19 2 1 4 3 16

11 13 5 18 17

8 10 9 7 12

6

For Heathrow to enable Understanding the service offer COMPETITORS COMPARATORS: NEW in other airports matters to us European hub airports seeking to AIRPORT HUB ENTRANTS all. Passengers travelling through airlines to grow airline secure greater market share from New international hub airports that Heathrow today compare their Heathrow through the development of are competing and growing at a rapid and passenger numbers, airport experience here against new facilities, capacity and pricing: pace to increase market share: it must compete. We other airports, and also against their expectation of customer service more 1 Frankfurt 10 Doha must therefore regularly generally. Using global passenger 2 Amsterdam Schiphol 11 Istanbul and airport insight enables us 3 Munich 12 Mumbai analyse and assess the to respond to opportunities and threats. It also helps us anticipate 4 Paris Charles de Gaulle 13 Beijing Daxing relative strengths of positive trends in terminal design and 5 Madrid potential competitors. products for passenger journeys of the future. COMPARATORS: COMPARATORS: EUROPEAN AND GLOBAL We will also need to monitor GLOBAL LEADING AIRPORTS innovations and changes within other ‘comparator’ airports. They AIRPORT HUBS Airports that are setting new may not be directly in competition Large international hub airports standards for passenger experience with Heathrow due to their size consistently evolving and or delivering cost-efficient and/or or geographic location. But often regenerating themselves: commercial solutions: they are setting new standards for 6 Singapore Changi 14 Billund passenger experience or delivering 7 Hong Kong 15 Oslo more efficient solutions. These could be adapted to Heathrow, delivering 8 Los Angeles 16 Zurich positive benefits to our airlines, 9 Dubai 17 Haneda passengers and communities. 18 Narita 19 Other London airports

49 END-TO-END PASSENGER JOURNEYS

50 HEATHROW’S STRATEGIC BRIEF | END-TO-END PASSENGER JOURNEYS END-TO-END PASSENGER JOURNEYS

51 HEATHROW’S SERVICE PROPOSITION

MODERN BRITISH HOSPITALITY AT ITS BEST

At Heathrow, we believe that every journey should reassure and excite in equal measure. We recognise that everyone is different and that CONFIDENT AND REASSURING We will be calm under pressure and we will get our some people will arrive at the airport with a passengers on their way, even when things do not go sense of joy and anticipation, while others face to plan. Importantly, we will keep our passengers safe from harm. anxiety. That is why we aim to go further than any other airport to understand how passengers feel. We want to make every moment spent with DYNAMIC AND VERSATILE us all that it can be. We will be upbeat and positive throughout the passenger journey and will help our passengers get the very best out of their experience with us. We will think ahead to anticipate For every traveller to feel Everyone who spends time with their needs and exceed their expectations. important, special and cared for, us on their travels will experience we need every partner in the the best that modern Britain has Team Heathrow family to to offer. Seamless operations collaborate and play their part. that make travelling intuitive We are fortunate to host many and enjoyable. Enticing and of the world’s leading airlines. inspirational experiences will We are at our best when we showcase the best of British work collectively, everybody popular culture. Reassuring pulling together to ensure and approachable people who that end-to-end experiences represent modern British are seamless, stress-free and hospitality at its best and who considered. This endeavour means do everything they can to make focusing on all aspects of service every journey better. experience, from simple individual service interactions through to the introduction of world-class service innovation.

52 HEATHROW’S STRATEGIC BRIEF | END-TO-END PASSENGER JOURNEYS DELIVERING WORLD-CLASS PASSENGER EXPERIENCES

Global research into excellent customer experiences identifies the hallmarks of world- leading service being ease and seamlessness. PERSONABLE AND CHARISMATIC Historically, airports have not been ‘easy’ places We will speak the same language as passengers and to navigate, and since the majority of passengers present information clearly in a way to help them extract information that they need easily and quickly. are infrequent fliers, the challenge for both them and us increases.

Our brains have to work harder Only in understanding the full in unfamiliar places with end-to-end journeys that our WARM AND ATTENTIVE unfamiliar processes. When time passengers and colleagues make, We will make all passengers feel welcome and will be is a critical pressure, this also can we build the best passenger approachable and responsive to individual needs and adds to the ‘cognitive load’ upon experience for the future. That is circumstances, irrespective of the medium passengers choose our customers. In recognising why, as we build the Heathrow of to interact with us. We will minimise the effort they have to and addressing this, we have the future, we will be overlaying expend on their journey. painstakingly mapped our our options and plans onto end- end-to-end passenger journeys. to-end passenger journey maps. This includes the physical This means we can readily see (passenger interaction with the for ourselves the journeys we are infrastructure and facilities), virtual creating, the pain points we are (website and apps) or personal addressing and the experience we (one-to-one interactions with Team are building for our passengers. Heathrow colleagues).

53

END-TO-END PASSENGER EXPERIENCES

FUTURE PASSENGER EXPERIENCE DEVELOPING A DEEP UNDERSTANDING OF PASSENGERS’ INFORMED BY GLOBAL RESEARCH MOTIVATIONS, BEHAVIOURS AND EXPECTATIONS

To inform our Strategic The KPMG Nunwood Customer To inform the future passenger The baselining exercise involved Experience Excellence Centre is experience, we developed a over 250 Heathrow colleagues Brief, we looked one of the world’s largest customer comprehensive baseline of the and partners. It took place over a experience think tanks. It has current experience of passengers six-month period and examined to global customer gathered over 1.5 million consumer travelling to, from and through the end-to-end passenger evaluations over three continents our airport. The baseline was journey, depicted as key stages experience best over eight years. The Centre’s developed through a combination covering departures, arrivals and practice, to identify research demonstrates that a of insights gleaned from: connections journeys. The research universal set of emotional qualities examined all modes of surface the common traits defines an outstanding customer Digital ethnography tools i.e. transport, and developed 24 experience – these are the Six real passengers capturing their live detailed behavioural personas that of leading customer Pillars. Personalisation, Integrity, ‘in-the-moment’ experiences were used to elicit insight unique Expectations, Resolution, Time and to different customer segments. brands across Direct observations of patterns Effort and Empathy are all essential of behaviour different sectors. for a leading customer experience. In total, 70 multidimensional journey maps were developed Social media sentiment analysis highlighting the steps that Focus groups and workshops passengers take, their expectations involving a cross section of at key stages, their emotional Heathrow colleagues, airline state, the ‘pain and gain points’ partners and suppliers along the journey, together with operational data. ASQ* scores and feedback from Heathrow customer- These insights were used to inform satisfaction surveys. a view of the potential future end-to-end passenger experience, depicted on the following pages.

*Airport  Service Quality

54 HEATHROW’S STRATEGIC BRIEF | END-TO-END PASSENGER JOURNEYS THE SIX PILLARS OF EXCELLENT EXPERIENCE

PERSONALISATION TIME AND EFFORT RESOLUTION Using individualised attention to Minimising customer effort and Turning a poor experience into drive an emotional connection. creating frictionless processes. a great one.

INTEGRITY EXPECTATIONS EMPATHY Being trustworthy and Managing, meeting and exceeding Achieving an understanding of the engendering trust. customer expectations. customer’s circumstances to drive deep rapport.

55 END-TO-END PASSENGER EXPERIENCES

FUTURE DEPARTURES EXPERIENCE

PLANNING THE JOURNEY TRAVELLING TO HEATHROW

We believe that data We aim to make getting and technology will help to the airport a simple and passengers plan and adapt straightforward affair, giving “To avoid congestion, to changing situations. passengers choice in how take this route”. they travel. By joining up Passengers will research information across all modes their travel options to the of transport, we will help airport quickly and with keep passengers informed minimal effort. Information and in control. and services provided will be tailored to meet their needs Passengers will have and circumstances. information at their fingertips about their journey and will be intelligently rerouted if circumstances change.

“My itinerary and route are mapped out specially “My journey is integrated across all modes of for me. I know exactly how to get to Heathrow transport, and I don’t need to worry about and I’m looking forward to getting there”. getting there – Heathrow will constantly work out the best route for me to take. I’m relaxed and confident about being on time”.

These illustrations show a fictionalised future passenger journey. They are not intended to be prescriptive.

56 HEATHROW’S STRATEGIC BRIEF | END-TO-END PASSENGER JOURNEYS We have combined our thinking around the potential impact of megatrends with our Passenger Proposition to illustrate what may constitute the future’s Best Airport Service in the World.

TIME AT THE AIRPORT LEAVING HEATHROW

Making passengers feel We aim to keep passengers “Your luggage has very welcome during their safe for their onward travel been safely loaded time with us will be at the while minimising time and onto your flight. heart of their interaction effort. Our people will Enjoy the rest of with us. We will deliver forge a deeper emotional your stay with us a range of services and here at Heathrow”. connection with passengers experiences that meet their and will act upon their expectations, needs and feelings. circumstances and that add to their enjoyment. Passengers will enjoy their time at Heathrow and Passengers will be as remember us long after relaxed as possible at the they have left. Their last airport by using digital and impression of us will reflect automation technologies on our distinctive British to help put them in control sense of style and service when and where they need – calm, innovative and it most. reassuring.

“I’m reassured that my bag will arrive with me “Leaving the airport and boarding the plane is because I can see on my smart device that so simple. I just walk through the airport and it is being loaded into the aircraft. I’ve got a their systems work out who I am and what I am personalised map of where I want to go and carrying. I feel confident that I’ll leave on time what I want to do while I’m here, and I’m really and that I’m in safe hands”. looking forward to using my time in ways that suit me – shopping, working or relaxing. I feel that my time is valued”.

These illustrations show a fictionalised future passenger journey. They are not intended to be prescriptive.

57 END-TO-END PASSENGER EXPERIENCES

FUTURE ARRIVALS / CONNECTIONS EXPERIENCE

LANDING AT HEATHROW MY TIME AT THE AIRPORT

We will make passengers We will deliver a range of feel very welcome reflecting services and experiences our distinctive British sense that meet their expectations, of style and service – calm, needs and circumstances innovative and reassuring. and that add to their We will help passengers enjoyment. Our people make sense of where will forge a deeper they are and navigate the emotional connection with airport by simplifying and passengers and will act enhancing information and upon their feelings. wayfinding. Passengers will be able to Passengers will be reassured shop work and play upon that they are in the right arriving into Heathrow, or if place and will use digital they choose to, be on their technologies to receive way to their next destination personalised information, quickly and easily. recognising their specific needs, expectations and circumstances.

“I like the personalised map guiding me to “I like the fact that my bag of ‘essentials’ that passport control and that Heathrow can tell I ordered is waiting for me and the theatre who I am, making the process simple, tickets are already on my smart device. I am straightforward and stress-free. I am able to impressed that Heathrow understands me and get on my way in minutes and I’m reassured that caters for me”. my bag will arrive on time”.

These illustrations show a fictionalised future passenger journey. They are not intended to be prescriptive.

58 HEATHROW’S STRATEGIC BRIEF | END-TO-END PASSENGER JOURNEYS We have combined our thinking around the potential impact of megatrends with our Passenger Proposition to illustrate what may constitute the future’s Best Airport Service in the World.

LEAVING HEATHROW CONNECTING THROUGH

We will provide a range of We aim to take the stress joined-up travel options for out of the connection those travelling onwards experience. Using digital and from Heathrow to suit automation technologies, their needs, circumstances we will let passengers know and budget. We will keep exactly how long it will take passengers informed of to get to other parts of the where they are and how airport, where they are on much time it will take to their journey and which shops, get to the next step on restaurants and facilities are in their journey. place when they get there.

We aim to make the Passengers will feel calm and passenger experience an in control during their journey enjoyable and memorable and will have confidence that one whether they are connection times are being starting their journey or managed on their behalf and coming home from one. personalised to them.

“My personalised journey planner works brilliantly, “I can spend my time as I want to because I know telling me how to get out of the airport and on just how long I’ve got left to get to the departure my way quickly and easily. I am confident that gate. I know where I am and how long it takes whatever mode of transport I choose, Heathrow to get there. I’m feeling calm and looked after will work out the most appropriate way for me to because Heathrow will alert me if things change reach my destination and will keep me informed or if I’m running out of time”. every step of the way”.

These illustrations show a fictionalised future passenger journey. They are not intended to be prescriptive.

59 –

FUTURE OPERATIONAL GUIDING PRINCIPLES

60 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATIONAL GUIDING PRINCIPLES –

The future operational guiding principles represent the culmination of the contents of this document reflected back in the physical form of an expanded Heathrow.

It is the start of the process which translates our • Surface access aspirations into the physical reality of Heathrow – the • Airfield and airspace combination of infrastructure with operational ways of working. We therefore look at functional areas, • Terminal recognising that great process and operational efficiency • Baggage underpin great service delivery. • Cargo • Heathrow ecosystem FUTURE Heathrow’s team of operational experts have combined their experience of running Heathrow with our future insights and five stakeholder propositions. The result is a suite of guiding principles that describe a world-class airport. We consider each functional area in terms of:

Features in our design, OPERATIONAL Designed into the very heart of SAFETY AND construction and operations our airport infrastructure and SIMPLE SECURITY to create intuitive passenger operating model. GUIDING journeys. Delivering a value offer to airlines Flexibility in responding to future AFFORDABLE and passengers balanced with the progress with manageable and AND ADAPTABLE FINANCEABLE world-class service expected of the affordable change to infrastructure PRINCIPLES United Kingdom’s hub airport. and ways of working.

Building a legacy for future An enabler of affordability, a key generations, creating a great place PREDICTABLE driver of passenger experience SUSTAINABLE to work by being a responsible facilitated through great design. neighbour in a great place to live.

A key concept for Heathrow: Consolidate our unique brand digitally through Wi-Fi, physically by creating a distinctive style of CONNECTED DISTINCTIVE through transport solutions, service to complement our world- visually through a sense of place. leading terminal experiences.

61 FUTURE SURFACE ACCESS OPERATIONAL GUIDING PRINCIPLES

WHAT IS A WORLD-CLASS SURFACE ACCESS OFFER?

AFFORDABLE SAFETY AND AND PREDICTABLE CONNECTED SECURITY FINANCEABLE

A safe surface access An approach to surface A service that Create a surface access operation with: access that: supports: approach that: partnerships with other actively facilitates growth reliable journey times to recognises and promotes operators to facilitate safe end- in catchment to grow and from the airport Heathrow at the heart of the to-end journeys to, from and passenger numbers UK transport network around the airport. resilient options for travellers. facilitates non-aeronautical provides real-time information revenue through existing and before and during journeys new products, segmentation and differentiation improves journey times across different modes. delivers affordable capital expenditure and operating costs

ensures only fair contributions.

62 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATIONAL GUIDING PRINCIPLES SIMPLE ADAPTABLE SUSTAINABLE DISTINCTIVE

A design that: A suite of surface access Modes of travel that: Create travel options that: options that: offers straightforward transport respect our neighbours by growing interchanges provides for all modes the airport without increasing minimise crowding airport-related traffic and congestion provides direct journeys allows passengers to to terminals choose mode prioritise public transport and more improve quality of in-vehicle efficient use of road-based modes experience creates seamless journeys for is cognisant of new models passengers of travel and new travel capitalise on our work with rail provide integrated journey technologies partners to prioritise major rail planning and ticketing facilitates intuitive wayfinding projects accessing Heathrow and integrated ticketing offers flexibility. make it easy to get to and provide the cleanest and most from Heathrow optimises the use of space for sustainable fleet to reduce the benefit of stakeholders. emissions allow choice for different passenger segments provide local connections to allow local communities to benefit from feel and look like Heathrow’s regional, national and modern Britain. international connectivity

facilitate more sustainable colleague movements.

63 FUTURE AIRFIELD AND AIRSPACE OPERATIONAL GUIDING PRINCIPLES

WHAT DOES A WORLD-CLASS AIRFIELD LOOK LIKE?

AFFORDABLE SAFETY AND AND PREDICTABLE CONNECTED SECURITY FINANCEABLE

A safe and secure airfield An airside layout and An operation that: Create an airfield where: operation with: operation that: is consistently reliable, operates the aircraft and airspace airfield and airspace that are minimises operating costs to a daily plan and is punctual operations are fully safe for aircraft operations for airlines and Heathrow integrated with the UK by enabling an efficient and has near-zero delay on the and global network aprons that are safe for predictable operation ground and in the air passengers and colleagues alike aircraft flow is fully enables delivery of the is proactively managed integrated with the whole strengthened airfield and potential schedule (rather than reacting to airport operation aircraft security. unplanned events) phases the delivery of capacity airfield and landside are in line with demand. is resilient to disruption and fully integrated providing quick to recover. unhindered flow into and out of the airfield.

64 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATIONAL GUIDING PRINCIPLES SIMPLE ADAPTABLE SUSTAINABLE DISTINCTIVE

A design that: An airfield that: An operation that: An airfield that: is simple with consistent is flexible to accommodate respects our neighbours is renowned by airlines for processes, procedures and daily and seasonal air-traffic world-leading efficiency, geography demand changes minimises noise and air-quality safety and reliability impacts through the quietest offers clear operational choices is adaptable to cater for future and cleanest aircraft and feels effortless to use and straightforward navigation. change, including new aircraft operations possible types and new technologies has a reputation with the (e.g. the movement towards builds a trusting relationship airlines for being an easy an automated ramp) and new based on consulting, listening, and intuitive airfield to airline operating models. agreeing and delivering operate from supports airline achieves world-leading sustainability plans punctuality and utilisation.

informs and responds to government policy for airspace modernisation.

65 FUTURE TERMINAL OPERATIONAL GUIDING PRINCIPLES

WHAT DOES A WORLD-CLASS TERMINAL LOOK LIKE?

AFFORDABLE SAFETY AND AND PREDICTABLE CONNECTED SECURITY FINANCEABLE

A safe terminal A terminal design that: An operation that: Create a global hub that: environment that: delivers construction that is considers the full end-to-end is the hub of choice for further strengthens Heathrow’s cost-efficient to build, operate journey, making it easy for connecting passengers with robust, long-standing security and maintain passengers passenger facilities to support systems enables efficient terminal and is known to consistently provides a platform for creates a reassuring and airline operations deliver efficiently, punctually network growth efficient experience where and reliably people feel safe and secure at creates an on-airport optimises connectivity through Heathrow as well as on their experience that optimises dwell manages unforeseen disruption co-location journeys to and from it. and engagement with the in the most customer-friendly airport offer manner possible. offers total digital touchpoint integration provides a choice of attractive, exciting and world-leading provides world-class service at commercial offers, relevant and all stages of departures and value-adding to all targeted arrivals, regardless of who passenger segments. delivers it.

66 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATIONAL GUIDING PRINCIPLES SIMPLE ADAPTABLE SUSTAINABLE DISTINCTIVE

A design that: A terminal design that: Facilities that: Create an airport that: offers intuitive wayfinding embraces and enables future respect passengers’ time gives passengers the best with minimal level and technologies to enhance passenger and individual needs airport service in the world mode changes experience and levels of service are inclusive, irrespective has a sense of Britishness, is navigable with great has the inherent flexibility to of individual passenger while building our brand sightlines and feels comfortable respond to megatrends and shocks circumstances is the gateway to London seamlessly integrates with seeks to accommodate are accommodated within technology and digital to industry dynamics resource-efficient buildings offers consistent process provide personalised and and infrastructure, married with memorable real-time information. accommodates a retail and incorporating sustainable experiences experiential environment terminal design in line with allows airlines to differentiate in balance with passenger the Heathrow 2.0 strategy requirements and volume their brands. provide a working environment provides an intermodal transport that respects the needs of hub for passengers colleagues and the broader Team Heathrow. reduces the costs of structural or operational changes

is accessible for all.

67 FUTURE BAGGAGE OPERATIONAL GUIDING PRINCIPLES

WHAT DOES A WORLD-CLASS BAGGAGE OPERATION OFFER?

AFFORDABLE SAFETY AND AND PREDICTABLE CONNECTED SECURITY FINANCEABLE

Safe baggage An approach to An operation that: Create a baggage operations that: baggage that: offer that: is reliable and resilient offer a safe working optimises capital and operating fully supports Heathrow’s environment and culture costs to reduce total cost recovers swiftly from connections product disruption. offer safe passenger-facing innovates to drive efficiency is seamlessly embedded in the facilities for drop-off and and cost savings passenger journeys: arrivals/ collection of luggage connections/departures avoids expensive bespoke are completely security solutions wherever feasible. supports and adopts new compliant. operating models (e.g. low cost/automation)

enables full traceability of the baggage journey.

68 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATIONAL GUIDING PRINCIPLES SIMPLE ADAPTABLE SUSTAINABLE DISTINCTIVE

A design that: A baggage offer that: Facilities that: A baggage service that: has simplicity designed into is flexible to accommodate respect the environment is renowned for reliability and the system and processes daily and seasonable changes timeliness in demand are sustainable by design is easy to use for airlines, has a reputation for excellence. handlers, operators and is scalable and reconfigurable minimise energy usage passengers. to enable future requirements are space-efficient meets evolving industry and are part of a zero-carbon passenger requirements airport infrastructure will offer flexibility to cope with are resource-efficient, evolving security requirements. zero-waste and support a circular economy.

69

FUTURE CARGO OPERATIONAL GUIDING PRINCIPLES

WHAT DOES A WORLD-CLASS CARGO OPERATION OFFER?

AFFORDABLE SAFETY AND AND PREDICTABLE CONNECTED SECURITY FINANCEABLE

A safe cargo An approach to An operation that: Create a cargo offer that: operation that: cargo that: delivers predictable has seamless movement of offers a safe working drives greater value for throughput times cargo between landside and environment and a secure consumers, forwarders, airside cargo area handlers and airlines is consistently reliable and operates to plan enables the segregation of Encourages responsible provides a sustainable cargo vehicles from other behaviour through revenue stream reduces delays while airport traffic partnerships. reducing throughput times. offers operational allows Heathrow to become a efficiency gains truly multimodal hub (air/road/ rail/water) reduces direct costs and enables reduction of enables interline opportunities third-party costs. for airlines

has dedicated air-to-air transhipment facilities, allowing faster connection times.

70 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATIONAL GUIDING PRINCIPLES SIMPLE ADAPTABLE SUSTAINABLE DISTINCTIVE

A design that: A cargo offer that: Facilities that: Create a cargo offer that: reduces waste, cost and grows capacity to generate attract more efficient aircraft makes Heathrow the European delays through 100% e-Cargo additional volume for airline airport of choice for timely and compliance partners reduce congestion predictable cargo makes it easier to do business incorporates unmanned optimise surface access to distinguishes Heathrow as through automation and air-cargo vehicles reduce the impact of traffic being a trusted business technology. partner for cargo operators is responsive, with a flexible assist industry in modernising and agile estate. processes, technology, training makes us easy to do and education. business with

maximises the value of its location – a gateway to London and the UK.

71 HEATHROW’S ECOSYSTEM GUIDING PRINCIPLES

THE BROADER HEATHROW CAMPUS

AFFORDABLE SAFETY AND AND PREDICTABLE CONNECTED SECURITY FINANCEABLE

A safe Heathrow area that: A Heathrow area that: A Heathrow area that: Create an airport area that: creates a reassuring and allows off-airport businesses reliably and seamlessly efficient experience where to link and complement combines the elements of positions Heathrow as a people feel safe and secure the surrounding areas with the journey/experience in, destination in itself, specifically throughout their journey Heathrow through and around Heathrow as an intermodal transport and dwell hub and public transport features appropriate creates a sense of place interchange provides local businesses and commercial development the broader community with a with reciprocal benefits. provides enhanced logistic and champions real-time data safe and secure environment. storage capabilities. sharing with airlines, retail and onward travel partners.

72 HEATHROW’S STRATEGIC BRIEF | FUTURE OPERATIONAL GUIDING PRINCIPLES SIMPLE ADAPTABLE SUSTAINABLE DISTINCTIVE

An ecosystem design that: A Heathrow area that: An area that: Create a Heathrow area with: enables seamless travel from offers a flexible response to the provides parks and open spaces doorstep to destination evolving needs of passengers, differentiated and distinct colleagues, airlines and local provides training and service offers delivers benefits that extend communities. educational facilities into the local community. a brand experience extending is connected with the local beyond the terminal buildings community in a mutually to upstream gateways beneficial manner promotes the value of the secures future employment airport more generally opportunities showcases modern Britain to enhances the area around the world. Heathrow for the benefit of everyone who lives there

protects and enhances biodiversity.

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