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Sharjah International Airport 1 FOOD & BEVERAGE AIRPORT TRENDS - SHARJAH INTERNATIONAL AIRPORT 1 Dear . , We’re proud and excited to have the opportunity of working with We believe our history and achievements, and our proven you in what is an important chapter for Sharjah International market expertise, demonstrate how well equipped we are to Airport. provide you with the same levels of success we’ve achieved around the world. Our ambition is to provide you with a unique, innovative and culturally specific offer for your food and beverage outlets at As each airport development project is unique, our approach is Sharjah International Airport. comprehensive and tailored to you. We analyse the market, the passenger profiles, the history and future of the airport and the We want to bring to you the same great brands that customers region. around the world love. But we’re also looking forward to bringing you new concepts and ideas to perfectly fit your needs. That’s how we aim to become a true partner in your development. We’re a strong ally in helping you to achieve your goals. Alpha Group is one of the leading global companies in the aviation food and beverage industry. We provide our services We hope you enjoy learning more about us, our brands and our across the UK, southern Europe and the Middle East. Our successes, and finding out more about the great value we can passion is to continuously develop new and innovative brands, bring to your project. exceeding the expectations of our customers. Christo Kassarov General Manager of Alpha Flight Services UAE L.L.C. FOOD & BEVERAGE AIRPORT TRENDS - SHARJAH INTERNATIONAL AIRPORT 1 CONTENTS ALPHA GROUP Group Structure 05 Mobile Application 31 01 Owned Brands and Franchises for the Retail Division 07 Alpha in Sharjah 33 TODAY Flight Services Division 09 • Alpha/Air Arabia Join Venture 33 Alpha Group Milestones 11 • Employee Strength 33 Our Stakeholders 13 • Flight Catering Center 33 • Air Arabia 13 • Flight Catering Services 33 • dnata 15 • Secured Catering Center 35 Our Catering and F&B International Footprint 17 • Quality Assurance 35 7 Success Habits in Airport Business 19 • Our Vision 37 Know How in Airport Development 23 • Other Catering Services 37 The Story Behind the Changes 25 FACTS FINDINGS & Pillars Of Differentiation 39 Catchment Area and Passenger Description 57 02 • General Market Overview 39 • Sub Market Segmentation 59 MARKETING • Aviation Trends in the Arab World 41 • Demographics and Socio-Economic Characteristics of • Aviation Sector in the United Arab Emirates 43 Passengers from Catchment Area 61 • Fleet Development 45 • Brand Awareness 63 • Sharjah Economic Overview 47 • Air Travel Purchasing Habits 67 Current Market Assessment 49 • Qualitative Analysis – Customer Perception over Sharjah • Sharjah Airport Positioning 49 Airport 69 • Sharjah Future Development 51 • Demand Forecasting 71 • Current Air Travel Demand at Sharjah by Airline 53 • Ideal Product Mixt – 4 Ps 73 Porter’s Analysis - 5 Forces 55 CONCEPTS & Concept Selection Methodology 75 The Kiosk (Hut) 111 03 Key Performance Indicators 77 • Departures Terminal – Landside – Ground Floor INTERIOR DESIGN Proposed F&B Concept Mix 79 • Gate 8 – First Floor Concept Selection 79 The Kiosk (Mobile) 119 F&B Concepts Positioning 81 • Gate 1, 2 or 3 – First Floor Fried Chicken – Food Court – First Floor 83 • Gate 20 – First Floor Asia – Food Court – First Floor 87 • Gate 22 to 25 – Ground Floor Mezze – Food Court – First Floor 91 Vending Machines 125 Giraffe – Transit Area – First Floor 95 Mobile Application 127 The Business Lounge – Transit Area – First Floor 103 04 CONCLUSION Alpha Selling Proposition 129 FOOD & BEVERAGE AIRPORT TRENDS - SHARJAH INTERNATIONAL AIRPORT 3 01 ALPHA GROUP 01 ALPHA GROUP TODAY ALPHA GROUP Group Structure: Alpha has two major divisions, Flight Services and Retail. The Flight Services Division prepares in-flight meals, offers security and other services such as equipment management, and handles in-flight retail. The Retail side operates airport concessions such as restaurants. Flight Services Division, which accounts for more than half of turnover and two-thirds of employees, operates at more than 60 airports in Europe, the Middle East, Australia, and the United States. Alpha Group provides over 50 million meals each year to over Shareholders, Joint Ventures and Subsidiaries: 150 airlines from 61 units / kitchens in 10 countries: Europe Alpha was a public company incorporated in 1994. Effective USA from 31 December 2010 dnata acquired 100% of Alpha Flight Australia Group Limited. Middle East / Asia Alpha Flight Group Limited has joint ventures with Tarom, Royal Jordanian, LSG and Air Arabia. FOOD & BEVERAGE AIRPORT TRENDS - SHARJAH INTERNATIONAL AIRPORT 5 01 Owned Brands and Franchises for the Retail Division ALPHA GROUP FOOD & BEVERAGE AIRPORT TRENDS - SHARJAH INTERNATIONAL AIRPORT 7 01 Flight Services Division Flight Catering Equipment Management Delivery and service of all onboard requirements including Provision of services for the management of equipment for Service Portfolio & catering, beverage, retail and store items and on behalf of an airline ALPHA GROUP Customer List Bond Services Compliance Management Warehouse stock management of retail and consumables, Outsourced quality assurance systems, audit and control for packed into bars standards, administered and delivered for the airline industry – food safety, security, health and safety complementary or retail on board Crew Retail Training Frozen Entrée Manufacture Training flight crews in techniques of selling on-board From our dedicated unit at Stanley Green in Manchester, products and the retail range the manufacture and distribution of hand assembled meal entrees FOOD & BEVERAGE AIRPORT TRENDS - SHARJAH INTERNATIONAL AIRPORT 9 01 ALPHA GROUP MILESTONES A Story of Success ALPHA GROUP From 1955, 60 Years of Continuous Growth FOOD & BEVERAGE AIRPORT TRENDS - SHARJAH INTERNATIONAL AIRPORT 11 01 Our Stakeholders Air Arabia Born on February 3rd 2003 out of a decree issued by the Sheikh results during 2014. Its participation in Alpha Flight Services ALPHA GROUP of Sharjah, His Highness Dr. Sheikh Sultan Bin Mohamed UAE together with Alpha Group was established in May 2007 Al Qassimi, effectively modeled after leading American to support and enhance the quality of on board catering needs. and European low cost airlines model customised to local It’s knowledge and understanding of its passengers, gives preferences and needs of the growing expatriate population Alpha Flight Services the superior advantage of delivering to 47 across the UAE, Air Arabia was to become the first successful Air Arabia passengers the food and beverages they expect and Million low cost airline in the Middle Eastern region. more. Air Arabia became profitable after its first full year of operation Passengers Flown in 2004. Since, profits increased considerably, in 2014 reaching a history high of 46% percent annual growth and a record net profit of AED 566 million. Air Arabia, based out of Sharjah in the UAE, pioneered the low- cost carrier (LCC) model in the Middle East, being the first to introduce it successfully in the region. Its fleet today consists of forty-four aircraft, which flies to over 100 destinations around the Middle East, Russia, Fly China and the Indian Sub Continent. In 2014 Air Arabia opened its second base, at Ras al Khaimah, the Northern airport of the UAE, covering new routes to Cairo Over in Eqypt, Lahore, Islamabad and Peshawar in Pakistan; Jeddah in KSA; Muscat in Oman and Dhaka in Bangladesh. The core competitive strengths of Air Arabia include its first 100 mover advantage, its ability to quickly scale up, a young fleet, high utilisation of its aircrafts, its strong and established brand, Destinations its established and effective distribution network, its efficient low cost base and highly favorable home and regional market dynamics. Air Arabia investments are to be found across a variety of aviation activities in 7 companies, all delivering profitable FOOD & BEVERAGE AIRPORT TRENDS - SHARJAH INTERNATIONAL AIRPORT 13 01 dnata Born in 1959 as the Dubai National Air Travel Agency, providing ground handling, travel services and associated businesses to the new Dubai Airport, dnata first joined the airline catering business in 2004 through the acquisition of CIAS, a ground handling and airline business in Singapore. From Singapore, ALPHA GROUP dnata gradually acquired Alpha Flight Services Australia as 117 well as a 50% share in Wings South Africa and EnRoute, a Million Meals niche bakery and snacks provider in the UK. into the Sky In 2014, dnata owns 61 business units in 12 countries providing airline catering, on-board retail, event and hospitality catering, institutional catering, product and development. Every day dnata’s 27.000 employees around the globe uplift meals, service aircraft, move cargo, handle baggage, help people with their travel plans and ensure they reach their final destinations. Over Its global leadership in the catering business was attained and maintained by introducing the best technology, infrastructure 40 and personnel. dnata’s aim is not to become the largest of the world players, but desires to ensure that its customers receive Restaurants the best value in terms of service and quality. 2014 dnata recorded strong revenue growth of 36%, reaching AED 10.3 billion, with 60% of its revenue being resulted from its non-UAE operations. In 2014-15, dnata catering marked new record revenues of AED 2.0 billion, a 7% increase over previous year. This growth came from new contracts that have been awarded, which increased the number of meals uplifted to 46,6 million, a 13% increase compared to 2013. FOOD & BEVERAGE AIRPORT TRENDS - SHARJAH INTERNATIONAL AIRPORT 15 01 Our Catering and F&B International Footprint Alpha Operates ALPHA GROUP Food and Beverage in 4 Airports Located in the U.A.E., Jordan, Bulgaria and Romania. 61 Airports Worldwide for Catering 4 Airports Worldwide for F&B • Americas: 1 • Romania: 1 • UAE: 1 • Asia / Pacific: 11: • Bulgaria: 1 • Jordan: 1 • Europe: 44 • Middle East: 3 • South Africa: 2 FOOD & BEVERAGE AIRPORT TRENDS - SHARJAH INTERNATIONAL AIRPORT 17 01 7 Success Habits in Airports Business 1.
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