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OPERATOR THE OFFICIAL MAGAZINE OF THE AIRPORT OPERATORS ASSOCIATION

AIRPORTS INVESTMENT BOOM Multi-billion plans

Features AOA MANIFESTO Recipe for success Ambitious agenda

CORNWALL AIRPORT NEW AIRPORT CHIEF EXECUTIVES SUMMER 2017 Fastest-growing UK airport Sinclair heads for ADVERT 3 ED ANDERSON Introduction to the Airport Operator THE AIRPORT invisible infrastructure in the sky that OPERATOR Welcome has changed little since the 1960’s, THE OFFICIAL MAGAZINE OF THE AIRPORT OPERATORS ASSOCIATION renewed our call for a 50% cut in Air to this Passenger Duty and emphasised the AIRPORT OPERATORS ASSOCIATION importance of having a well-resourced edition Border Force that will be able to cope Ed Anderson with increased passenger flows. Chairman of the Karen Dee Operator, As I write this introduction, the Chief Executive Government is embarking on the first stages of what will no doubt be a long Peter O’Broin which is and complex negotiation to implement Policy Manager published the referendum vote for the UK to Henk van Klaveren leave the European Union. The AOA Public Affairs & PR Manager online on the occasion has worked hard over recent months Roger Koukkoullis of the summer 2017 to explain to officials and politicians of Operations, Safety all parties that aviation currently relies & Commercial Director aviation Parliamentary on the legal framework provided by Claire Humphries reception. EU-level air services agreements for Events & Member Following the General Election the flights to over 40 countries. We have Relations Manager reception will provide us with a timely also emphasised that early certainty on Patricia Page opportunity to meet newly-elected how these agreements will be replaced Executive Assistant and re-elected MPs and to explain is vital, as airlines typically plan their & Office Manager how the Government and Parliament routes 12 to 18 months in advance. Avni Patel can take action that will enable UK I am pleased to report that these Accounts Executive aviation to continue to flourish. points now seem to be increasingly well-understood in Whitehall and We are delighted that Chris Grayling, Westminster and especially in both AIRPORT OPERATORS ASSOCIATION who has been reappointed as Transport the and 3 Birdcage Walk, Secretary, has confirmed that the London SW1H 9JJ the Department for Exiting the Department for Transport will be European Union, whose Secretary of pressing ahead with its plans for a new State, David Davis, has referred to the Aviation Strategy. That will set a policy T: +44 (0)20 7799 3171 aviation sector as a priority on a par framework for our sector for the coming E: [email protected] with financial services. decade and we will be responding to F: +44 (0)20 7340 0999 all the forthcoming Aviation Strategy In addition to lobbying on and W: www.aoa.org.uk consultation documents. the Aviation Strategy, this has been a busy spring and summer for the AOA During the election campaign we team and its new Chief Executive, Michael Burrell published our own AOA manifesto for Karen Dee, on many fronts. In May Editor UK , setting out a five-point we co-ordinated an exceptionally plan for the incoming Government. You impressive Airports Safety Week, with can read more detail on that elsewhere airports around the country delivering THE AIRPORT OPERATOR in this edition, but, in summary, our MAGAZINE IS PRODUCED BY a huge variety of imaginative activities manifesto covered a framework for that attracted attention not only from airport growth across the country, the airport-based staff, but also from impact of Brexit on aviation, airspace passengers, local communities and Shimon Speigel modernisation, Air Passenger Duty and other European airports. Creative Director the UK’s border regime. The AOA also delivered specialist Jessica Horton We emphasised the key role that conferences for our members on the Graphic Designer airports play in helping to deliver environment, security and operations GENIUM the connectivity that the country and safety and began the planning for Studio 27 needs for a successful economy our annual conference, which is to be Quadrant Business Centre and we explained why it is vital that held in a new venue this year on 30 135 Salusbury Road the Government should prioritise a and 31 October. London NW6 6RJ new legal framework for the UK’s Meanwhile, I wish all of you a successful international aviation connectivity T: +44 (0)20 7089 2622 and prosperous summer season. E: [email protected] after Brexit. We set out a vision for W: www.geniumcreative.com modernising the UK’s airspace, the Ed Anderson, AOA Chairman 4

THE AOA IS PLEASED TO WORK WITH ITS CORPORATE PARTNERS, AND GOLD AND SILVER MEMBERS

Corporate Partners

Gold Members

Silver Members

WWW.AOA.ORG.UK 5 ANNUAL CONFERENCE BOOKING OPENS

Booking has opened for the AOA Annual Conference 2017 to be held on 30 and 31 October at a new venue – the completely refurbished Royal Lancaster Hotel, overlooking London’s Hyde Park

elegates who book by 13 & Policy at the Department for Security at the Civil Aviation September will be able to Transport; Ian Jopson, Chair of Authority and Phil Williams, Head of Dsave £155 on places at the Sustainable Aviation and Head of the Risk Assessment and Incident conference, dinner and awards Environmental & Community Affairs, Response team at the Department ceremony – which this year will, for NATS; Tim Johnson, Director for Transport. the first time, include three awards of the Aviation Environment for Airports Safety Week events. Federation; Carrie Harris, Group Rounding off the trio of specialist Sustainability Manager, IAG and conferences for 2017 was the The October conference will speakers from , well-established Operations and conclude a bumper year for AOA Gatwick, London and Safety Conference, held in June at conferences, which began in April Manchester Airports Group. Carden Park Hotel, near Chester, with an environment specialist and attended by over a hundred conference, held at The Crystal, Next up was the security delegates and eight exhibitors. The East London, which describes conference, held in May at Mottram subjects discussed included remote itself as “one of the world’s most Hall, Cheshire, and sponsored digital control towers and drones. sustainable buildings”. by Rapiscan Systems. A panel The well-received keynote speaker discussion on the rising threat was Robert Kay, UK’s Chief Issues discussed by the 70+ to airport operations from cyber Engineer, who offered a compelling attendees included sustainable security attracted a lot of attention. vision of future aviation trends. There growth, climate change adaptation Other topics discussed included the were also presentations from NATS, and mitigation and progress in opportunities and threats caused by the Civil Aviation Authority, Heathrow cutting electricity, gas and water the rapidly growing drone market, and London Luton Airports.  usage. The speakers included Tim landside security and domestic May, Director for Aviation Policy extremism. Speakers included Click here to register today & Head of Airports Noise Strategy Peter Drissell, Director of Aviation

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GORDON DEWAR’S RECIPE FOR SUCCESS

The fastest growing airport in the UK for international passengers – up 21% in a year – is Edinburgh and Gordon Dewar, its Chief Executive, is very clear how that was achieved

t is, he says, down to the quality of ceased to be part of the group of different culture: “Today the his team, the commercial data- airports owned by BAA and become a underlying culture is that we are a Idriven culture of today’s airport stand-alone enterprise with complete data-driven organisation. We hire and the natural advantages of its responsibility for its own future. good analytical talent who develop position close to ’s dynamic a good understanding of what capital city. He believes that the new owners, the opportunities are and then we Global Infrastructure Partners, execute well. A key part of that is that When Dewar took over as Chief recruited him because he had we are taking high quality data to Executive in 2012, following BAA’s become a tried and tested airport airlines to give them confidence that decision to sell Edinburgh, the operator, with six years’ experience they will make money in Edinburgh”. airport boasted 9 million passengers (initially at rival Airport), a year. Today that figure has risen because he already knew about Developing a long pipeline of sharply to over 12 million and further as a business prospects requires excellent evidence international growth looks certain. and because he was already part of and hard work, he says, and can a Scottish that would be involve “keeping the plates spinning” Dewar’s analysis of success important as the airport sought to for three to six years before a new starts with the high quality of the realise its growth potential. deal is closed. It is made easier, colleagues that he inherited and he suggests, by the quality of the recruited. “You have to be very At the outset the most pressing economy of the Edinburgh region: aware of what you bring personally” challenge, he says, was to change “the numbers really are phenomenally he says “and then make sure that the airport so that it could prosper compelling”. He points out that three you cover the bases with all the alone, which meant, for example, out of four international visitors skills that you need to have. We recruiting a new finance team. The to Scotland already through have superb airport operators, other challenge, as he describes Edinburgh airport and says that his really exceptional support services it, was to bring in a completely optimism about the future is largely and we have invested very heavily in our commercial, projects and development teams”. “People understand the benefits of having a This isn’t Dewar’s first spell at the airport. He was Managing Director growing on their doorstep from 2008 to 2010, but left to become Chief Executive of Bahrain and there is not the same “intensity of concern” Airport. On his return to Scotland two years’ later Edinburgh was in a about local impact as there is, for example, among very different position, having just people living around ”

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based on this international market: a growing international airport on “We are so bullish because of that their doorstep and there is not the inbound visitor. That is why there is “We have superb same “intensity of concern” about such an opportunity. All the long- airport operators, really local impact as there is, for example, term plays in Scotland – the wealth among people living around and the investment – are coming in exceptional support Heathrow Airport. our direction”. services and we have That said, the airport still takes In the short-term, Dewar does have community concerns very seriously some concerns about Brexit. While the invested very heavily and is currently in the closing stages weakness of sterling is encouraging of a closely-watched consultation more visitors to come to Scotland, in our commercial, on airspace change. Dewar says: other effects are less positive. He says “We have taken the view that the that uncertainty is never helpful and projects and constraint on the more effective use points to comments from US airlines development teams” of our existing is airspace. that they are looking to pivot away Existing airspace rules mean that at from the UK while wait to see what will As tangible evidence in support of present we can only deal with one happen. Though optimistic that good that argument he cites the Scottish aircraft every two minutes and during open skies agreements will eventually Government’s decision to cut Air the morning peak we regularly have be concluded, he worries about the Passenger Duty by at least half. queues of ten to twelve aircraft. With short-term reaction and he also points Scottish Ministers get, he says, airspace change we could have one out that aviation is very dependent on that when Scotland’s airports are departure every minute, but we have overall economic growth continuing. competing with airports across to try to minimise the number of it is “a no-brainer” that people affected”. That said, Dewar has some good the level of APD, easily the most things to say about Scotland’s expensive departure tax in Europe, Dewar is proud of the efforts that politicians, reflecting that “the needs to be reduced. Dewar the airport has made to ensure that striking feature in Scotland is just expresses confidence that detailed the consultation will be as fair and how positive the overarching political proposals will be published during thorough as possible, noting that it support for aviation is. Scotland has the summer, enabling a reduction to adopted every single enhancement always understood that international take effect next year. to the consultation process that business is important. Being the Civil Aviation Authority is connected must be a good thing Edinburgh Airport also benefits, considering. The next step will be when you are on the periphery of he says, from the strong support to publish the results of the second an island off the north-west coast of of its local community. People phase of the consultation, before Europe. We really operate in a quite understand the benefits of having supportive political environment”.

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submitting a final proposal to the Up next for consultation will be the cross-wind runway, which is unsuitable CAA towards the end of the year and airport’s latest plans to improve for frequent use and is, in fact, hardly Dewar is hopeful that new rules will surface access, including a new road ever used. Without having any be in place in time for the start of the link to the A8, though much has been effect on capacity that will release summer season next year. done already, particularly in terms 400 acres of land for commercial of public transport. The tram to uses, supporting further economic While making the best use of central Edinburgh is up and running development west of Edinburgh. airspace is important for the airport, and this is now complemented by Land for a new second runway will making the best use of terminal the opening of the new Edinburgh be safeguarded, but is unlikely to be space is also crucial for Edinburgh’s Gateway station on the nearby Fife needed until around 2050. operational effectiveness and here Circle railway line, which provides Dewar points to the airport’s work an interchange with airport tram Asked to conclude by stating the with its principal low-cost airlines services. There are new bus routes biggest challenge that Scotland’s – easyJet, and – to as well to north Edinburgh, Lothian busiest airport now faces, Dewar achieve that. All three airlines now and . Rail passengers declares that it is to continue to meet use a common self-service bag drop aiming for Edinburgh Airport will and exceed the high expectations facility, with the result that more discover that the airport has recently that its passengers have developed. than half of the airport’s passengers been designated a national railway An example, he says, is that today are going through just 12% of station, which means that they can no-one expects to have to wait more the check-in space and generally buy a through ticket to the airport, than four minutes to go through experiencing zero queues. even though the last section of security at Edinburgh, so that even a their journey will be by tram or bus. little blip gets noticed. Ultimately it is Dewar is also careful to note that, Thanks to these developments, all about the customer and so Dewar while it is international routes that almost one in three travellers to the chooses a simple but important point offer the best growth prospects for airport now use public transport, for his final comment, emphasising Edinburgh, UK routes are also an which is the best proportion in the that “we are very focussed on getting important part of the overall mix, UK for a non-rail-connected airport. rid of queues”.  accounting for just under half of the total. Passengers to London are Looking further ahead, the airport spoilt for choice, with 54 flights a plans to close its existing second day and four airlines offering flights to five different London airports.

THE AIRPORT OPERATOR SUMMER 2017 10 AOA’S MANIFESTO FOR UK AIRPORTS

The AOA took the opportunity of the General Election on 8 June to publish a five-point manifesto for UK airports

hief Executive, Karen Dee, said that the manifesto “sets out “We look forward to working with Ministers Can ambitious agenda for the Government and we look forward to working with Ministers and officials and officials to deliver on this manifesto, to deliver on this, enabling aviation to play its full part in helping to enabling aviation to play its full part in secure the UK’s future prosperity”. helping to secure the UK’s future prosperity” The manifesto’s first priority is a new aviation strategy for the UK and, The AOA will be urging the There should also be a bold agenda since the election, Chris Grayling, Government to include a fair strategy to support the better use of existing newly reappointed as Transport for growth for all UK airports, setting capacity, addressing the country’s Secretary, has confirmed that the out an approach that will give need for better surface access Department for Transport plans to airports the certainty they need to (road and rail connectivity) to UK press ahead with consultations on invest in their businesses and remove airports. The strategy should include the proposed aviation strategy. barriers to sustainable development. a plan to enable aviation to become

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more sustainable, with three areas The AOA says that the Government Queue lengths at passport control standing out as requiring inclusion: should complete the consultation have grown over the past few years a support mechanism to enable the on UK airspace and deliver a stable and airports have seen longer commercialisation and scaling-up of long-term noise and airspace queues at peak times. sustainable aviation fuels, support for policy. It needs to prioritise and airspace modernisation and support support industry efforts to deliver The AOA says that the Government for the decarbonisation of airside airspace modernisation and should provide additional resources vehicles. Finally, there should also be include airspace in the remit of the to Border Force to ensure that it a strategy to support smaller airports. National Infrastructure Commission, is better equipped to deal with recognising that it is a critical part increased passenger numbers, Priority 2 in the manifesto is the UK’s of the UK’s national infrastructure particularly at peak travel times. It exit from the European Union. As which requires long-term strategic should also work with industry to negotiations on this commence in decision making. set out a five-year assessment of , UK Ministers are signalling need, to adapt current performance that they acknowledge that aviation Priority 4 is a more globally measurement to better reflect needs early consideration. competitive Air Passenger Duty. UK passenger experience at the border APD is the highest aviation tax levied and to adapt the border regime The AOA is calling on the on passengers in the EU and among appropriately following Brexit. Government to prioritise early the highest in the world. certainty for the industry through The manifesto’s five priorities will be transitional agreements and securing The AOA says that the Government the focus of the AOA’s post-election new air services agreements as should reduce APD by 50% to bring political engagement programme part of the exit negotiations. The it into line with our competitors which will target Ministers, officials, manifesto says that the objective and ensure that the UK is ‘Brexit Opposition spokespeople, new MPs should be to seek to replicate, as ready’. In the light of Scottish and members of the Commons far as possible, the benefits that UK Government plans to cut its new Air Transport Select Committee.  and EU consumers currently derive Departure Tax, the AOA says that

AIRPORT OPERATORS from the close integration of our the Government should ensure that ASSOCIATION A MANIFESTO FOR UK respective aviation markets. a cut in APD anywhere in the UK is Click here to read AIRPORTS matched immediately and fully in the full manifesto The manifesto’s third priority is the rest of the country to prevent airspace modernisation, vital to regional economic distortions. www.aoa.org.uk ensure that forecast levels of traffic can be handled without delays and Priority 5 in the manifesto is a secure cancellations. but welcoming UK border regime.

“The five priorities will be the focus of the AOA’s post-election political engagement programme targeting Ministers, officials, Opposition spokespeople, new MPs and members of the Commons Transport Select Committee”

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CORNWALL AIRPORT NEWQUAY, THE UK’S FASTEST GROWING AIRPORT

The story of how Cornwall Airport Newquay went from near closure to become the country’s fastest-growing airport in 2016 is a fascinating one

ut then you could say the same Surviving that near-death was absolutely crucial to prop us of the career of its Managing experience was, he says, down up”. But airlines hated it (Ryanair BDirector, Al Titterington, who to the financial support that the were “very opposed”) and warned began his career in aviation as a airport received from its owner, that for as long as it was retained it dispatcher/ handler at , “a lot of plate- would make increasing capacity and Airport before using a spinning” and a decision to “almost flight frequency very difficult. Master’s degree in airport planning start again” with a strategy to and management to kick-start a rebuild the route network on a So, Titterington and his colleagues career in airport management that led much more sustainable basis and took a long, hard look at whether him to Newquay via operational roles to diversify the airport’s business, the better option for long-term at Robin Hood and airports. reducing its dependence on sustainable growth would be to passenger income by growing drop it. “We were going to sacrifice Arriving in Newquay as Operations income from executive flights, half a million pounds a year. The Director in 2006, he played a key role aircraft training and property. question was: ‘Could we get it back?’ in supporting the airfield’s transition We developed a business case that from an RAF base to a fully civilian Newquay’s controversial £5 per suggested that we could. We took airport in 2008. Two years’ later he passenger airport development fee, that proposal to the airport’s board was promoted to Managing Director introduced in 2006 and payable and through the council’s cabinet at what he candidly describes as “the by all departing passengers and scrutiny process. There was a lot worst possible time”. over 16, kept the airport alive. In of politics and bureaucracy and that Titterington’s view, “through the can be frustrating, but we got the Recalling that period now, he says: difficult times that income stream green light”. “We suffered from the economic down-turn and the end of the low- cost bubble. Passenger numbers plummeted. The business didn’t look like a business – for example, “Breaking through half a million we had no management accounts – and the route development strategy passengers per year in the next three was built on straw. We were months’ away from going out of business”. to four years is eminently achievable”

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In the autumn of 2015 it was announced that the £5 development fee would be scrapped in March 2016 and, one-by-one, the airport’s “Newquay’s controversial £5 per key airlines began to deliver on the growth commitments that they had passenger airport development fee, made. By the end of 2016 it was clear that the new strategy had paid off handsomely, delivering the stunning introduced in 2006 and payable 48% increase in passenger numbers that secured Cornwall Airport Newquay its place as the UK’s by all departing passengers over fastest-growing airport. 16, kept the airport alive” This year got off to a strong start too, with the airport handling a passengers per year in the next There are some headwinds, though, record 41,000 passengers in April, three to four years is eminently and one of these, in Titterington’s a 39% increase compared to the achievable”. That would be good view, is Brexit. Acknowledging that same period last year, encouraging news for Cornwall Council, as it there are strongly held views on both expectations that 2017 will see a should mean that their operating sides of this issue, he is, nevertheless, fourth consecutive year of double- subsidy (originally £3.5 million, now clear that “from a business digit growth. Growth in 2018 and £1.3 million) will continue to decline perspective I don’t agree with Brexit. 2019 is more likely to be around 5%, and, according to Titterington, Cornwall has been one of the largest but Titterington still believes that “within five to ten years it is possible recipients of European funding, “breaking through half a million that the airport could be profitable”. with the airport, for example, having

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total traffic. In Titterington’s words: “We are working with them all the time. It is a very rock-solid diversification could be cost- relationship. They are key to us”. effective. The airport has made a funding application to the UK Space The fourth most popular route in Agency and awaits a decision on 2016, thanks to a 162% increase in relied on it to build new hangers. I that, probably this autumn. traffic, was the Regional am concerned about not being part link to , now in its third year of the Single European Sky and the Cornwall Airport Newquay’s and offering a year-round service, timing of trying to renegotiate new leading airline is Flybe, which with daily connections throughout air services agreements. It does lead operates flights to a dozen UK the summer and in May this year Aer to risks and unknowns and Ryanair cities, including the three most Lingus added a new route to Cork. have warned about this”. popular routes to London Gatwick, Ireland is Cornwall’s third-largest Manchester and , and source of international tourists after He accepts that there are some accounts for 73% of the airport’s Germany and France. positive effects, noting especially that the fall in the value of the pound helps to make Cornwall a more attractive destination for inbound tourists, but is still adamant that “Brexit provides more negatives than positives”.

Another area of uncertainty for now is whether the airport will be able to make something of its hopes to become a UK spaceport. Titterington says that the major opportunity for the UK and Cornwall is for satellite deployment, but the big unknown is what rules the Civil Aviation Authority will impose. That will determine whether this unusual

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Ryanair returned to the airport in Europe’s major hub airports. On the For Titterington the expansion of 2016 with new international routes Continent that might be , Heathrow is potentially as important to Alicante and Hahn and or perhaps Munich or – but to Cornwall as it is to London, then in March this year added a the bigger prize, until recently seen since a route to the UK’s hub further route to Faro in the Algarve, as out of reach, would be London airport would enable Cornwall to marking a 50% growth in Ryanair’s Heathrow. Titterington comments have onward connections to every operations from the airport. that any of these, but particularly continent of the globe, as well as Heathrow, “could be transformational easy access to London. But, for this Looking ahead, Titterington would in terms of profitability and the to work, Cornwall Airport Newquay clearly like to be able to offer a winter economy of Cornwall”. would need the support of the sun route from Newquay, pointing out Council, the Government, Heathrow that for many of the county’s residents, For the Heathrow goal to be achieved, and the airlines. “Everything must who depend on incoming tourism in which might be possible as early come together”, says Titterington, the summer, winter is when they take as 2021, Cornwall Airport Newquay “Is that achievable? I think it is. their main holidays. His confidence in would need a lot of things to go Just a few weeks’ ago I would have the prospect of such a route operating right, including political support. put the probability of success at from the winter of 2018/2019 suggests Titterington says that the airport has about 2%, but now it is rapidly that the airport will soon have a link to “a significant political voice” on the increasing to maybe 20%. We have the Canary Islands. issue: “We do get exposure right up the momentum with all of those to the Prime Minister. When Chris parties”. The bigger ambition, though, is for Grayling announced the Government’s Cornwall Airport Newquay to lose support for Heathrow, the Prime Perhaps a Heathrow link, the latest its distinction as one of the only Minister’s first comment on that was in dream of the UK’s fastest-growing UK airports lacking a link to one of a meeting with me at Newquay”. airport, really could become reality. 

WWW.AOA.ORG.UK 17 NEW CHIEF EXECUTIVE AT LONDON CITY AIRPORT

Robert Sinclair, currently CEO of Airport, is to replace Declan Collier as CEO of London City Airport

inclair is expected to take up Jones, who joined Newcastle as chief and business passengers”. In another his new role in October. A New financial officer in 2015, has been departure, has SZealander, he was previously interim chief executive at Newcastle, announced that its Chief Executive, Chief Financial Officer of Auckland the UK’s 11th largest airport, since Paul Kehoe, is stepping down. International Airport, following a 10- Laws’ departure last year. He takes year career with UBS in investment the job on a permanent basis at a Kehoe, who leaves on 12 July, banking. He became CEO of Bristol time when the airport is experiencing will be focussing on his regional in 2008 and, during the period since, its strongest growth in almost a commitments as chairman of the airport has seen record growth in decade, with passenger numbers Marketing Birmingham, president of passenger numbers and profitability growing by 6% in 2016. the Greater Birmingham Chamber of and the delivery of a £160 million Commerce and chairman of the West development programme. He said: “I am delighted to be Midlands Growth Company. confirmed as chief executive at one Collier is stepping down after more of the UK’s most successful airports. He joined the airport, the UK’s than five years at London City, the I am passionate about the North East 7th largest, in 2008 and has seen UK’s 14th largest airport, shortly region and my aim will be to further passenger numbers there grow from after the airport announced that it is improve connectivity for businesses 9.5 million to more than 12 million. to introduce the UK’s first digital air as well as providing popular holiday Expansion of Birmingham’s route traffic control tower in a pioneering destinations for people in the region. network has included daily services step for British aviation and a year I also want to ensure we build upon to Delhi with , A380 services after the airport received planning our reputation for providing the most to Dubai with and the permission for a £344 million welcoming customer experience” introduction of 18 new airlines, including transformation. , Jet2 and the return of David Laws, who was Chief Executive . By the end of this year, He said: “It has been a privilege and at Newcastle Airport for ten years, Birmingham will have invested £450 a pleasure to have been part of the takes over as Chief Executive of Leeds million on developing its infrastructure, airport’s success story for more than Bradford Airport, the UK’s 15th largest, including a runway extension and a new five years. London City Airport is a following the retirement of John Parkin. tower. great business and well placed to take The airport has grown passenger advantage of future growth and new numbers by 6% over the last year. Laws Kehoe said: “I planned originally aircraft technologies as we embark said: “I am very pleased and excited to stay only for five years, but the on our City Airport development to be joining challenge became so exciting that programme”. at such a crucial time for the airport’s I stayed for another four. After growth and development. I have a delivering significant airline and Meanwhile, Newcastle Airport has real passion for airport development passenger growth and completing all confirmed that its acting chief and am focused on delivering the very the major development projects which executive, Nick Jones, will take the best customer journey possible. My resulted in a doubling of the profit, job on a permanent basis, while David ambition is to further improve, expand generating significant dividends for Laws, his predecessor at Newcastle, and develop the business in order shareholders and the region, I feel it has been appointed Chief Executive of for the airport to continually offer is time for the next generation to take Leeds Bradford Airport. a wide range of services for leisure the business forward”. 

THE AIRPORT OPERATOR SUMMER 2017 18 UK AIRPORTS SAFETY WEEK REACHES THOUSANDS

The AOA-coordinated UK Airports Safety Week, held from 8 to 14 May 2017, reached thousands of airport staff, passengers and local communities around the country

oger Koukkoullis, AOA Highlights of this year’s Safety Learning from others was a key Operations and Safety Week included the huge numbers theme for London City Airport, RDirector, said he had of people reached by the events at whose airside safety team spent an been hugely impressed with the Heathrow – about 600 people at entire day with the airfield operations tremendous effort displayed across Terminal 2 and 800 at Terminal 3, and safety teams at Gatwick. It was the UK, which had extended beyond reflecting the airport’s determination an action-packed day that included traditional aviation safety issues to bring safety issues to the attention going out on the airfield with the bird to also encompass occupational of the entire community at the control unit, a runway inspection, health, the environment and well- airport. One of the biggest successes a foreign object debris walk and being. The week had demonstrated a and most popular of the attractions attendance at a safety review group recognition that for an airport safety was the health bus, which even meeting. Back at London City staff management system to be fully resulted in some airport staff being played an interactive airside safety effective the safety culture must be referred to their doctor for high collaborative and airport-wide. blood pressure.

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game with passengers, hugely impressing two who worked for the World Health Organisation. Outreach to the local community in East “I have been hugely impressed with London included a visit to a local primary school and a foreign object the tremendous effort displayed across debris charity run raising money for a local children’s hospice. the UK, which had extended beyond Leeds Bradford Airport invited pupils from a local primary school to visit the Rogertraditional Koukkoullis aviation safety issues” airport and tour the runway, apron, , AOA Operations and Safety Director fire station and terminal building. Health and wellbeing were also key Three awards will be presented Across at Humberside focuses for George Best later this year at the AOA Annual Airport a visit to UK Search and City Airport, who worked with Conference and Awards dinner to Rescue gave everyone a chance their charity partner, Inspire, to commend the three best initiatives of to familiarise themselves with conduct four sessions on mental this year’s Airports Safety Week. the rescue and learn health awareness, including hidden more about their role in carrying disabilities and autism awareness Looking ahead, Koukkoullis said he out rescue missions in demanding – this reflecting how unsettling was determined to ensure that the situations. Later in the week travelling through an airport can be AOA could demonstrate positive and rescue firefighting services came for a child on the autistic spectrum. tangible safety benefits flowing from to the terminal and gave practical A session with NIVAH, a Belfast- Airports Safety Week, including using first aid and general fire safety based drug and alcohol testing AOA forums, seminars, meetings and demonstrations along with tours solutions company, showed people conferences to greater effect. This of the fire vehicles for the public. the effects of drugs and alcohol by will be one of the subjects considered A health and wellbeing session in using special goggles. That created by the UK Airports Safety Week the terminal building gave staff and some giggles, as well as a good project team for 2018.  passengers an opportunity to learn discussion and better understanding. about the benefits of correct diet and exercise from a world champion bench press winner.

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UK AIRPORTS REAPING THE BENEFITS OF WIFI SENSORS

Birmingham has become the latest UK airport to install WiFi sensors to improve the passenger experience and boost operational efficiency

he airport joins Bristol, The sensor system in use at efficiently is key to the success of an Edinburgh and Manchester Birmingham and the three other UK airport and its image. Accurate wait Tin adopting state-of-the-art airports was designed by Denmark- time and flow information is crucial WiFi sensors to enable it to collect based business intelligence company, to provide a premium customer real-time data on travel times, dwell BLIP Systems, founded in 2003. experience, improving capacity times and movement patterns. planning and maximising revenue. Mobile device-detecting sensors The company’s marketing manager, 94% of leisure travellers travel with automatically detect WiFi enabled Christian Carstens, said: “Handling a mobile device. With sensors that mobile devices without passenger passenger flow smoothly and measure the movement of those interaction.

Sensors have already been installed in Birmingham Airport’s North immigration hall to measure and predict the wait time at the UK border and the airport is planning to extend its use to southbound security and immigration.

Chris Wilson, Head of Terminal Operations at Birmingham, said: “The data really helps us to understand the actual wait time for the border and helps discussion with the UK Border Force planning team and resourcing plans for the future. By sharing the information on screens, we help reduce passenger frustration by creating realistic wait time expectations”.

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devices, airports can generate a cohesive passenger experience picture, including accurately measuring and predicting wait times, while simultaneously providing data about how passengers move and use the airport”.

Carstens said: “As the solution measures passenger flow in real- time, it can provide early warning when predefined thresholds are exceeded. This enables airports to proactively initiate counter- measures before the situation escalates, for instance by opening additional processing lines. Ensuring that passengers experience a quick and easy passage through the first stages of their journey increases positive passenger experience at the airport. The less time passengers spend in airport processes, the more they will enjoy a more stress- free and pleasant travel experience in the concession areas, directly increasing non-aviation revenue”.

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Rick Mernock, Head of Performance at , agreed. He said: “Making the passenger journey easy is the heart of our business and “Accurate wait time and flow managing/reducing queue lengths is a critical part of our ability to achieve information is crucial to provide this. As aviation revenues decrease, the delivery of improved business opportunities for the airside retailers is a premium customer experience, also important to our overall business”. improving capacity planning and Edinburgh Airport stressed the benefits for the passenger. Chief Christianmaximising Carstens revenue” Operating Officer, Adrian Witherow , Marketing Manager, BLIP Systems said: “We are able to keep our passengers fully informed 24/7, both in the terminal and online, about what to expect at security and our aim is to make that experience as smooth as possible”. 

THE AIRPORT OPERATOR SUMMER 2017 24 BOOM TIME FOR INVESTMENT IN UK AIRPORTS

UK airports are set to spend nearly £8.5 billion in capital investment over the next five years, according to new figures compiled by the AOA

he figures are based on the June and July on its updated Airport airport has approved plans for a spending plans of the UK’s Master Plan, which sets out its plans 50-metre digital tower developed Ttop 20 airports and exclude for future development and growth by Saab Digital Air Traffic Solutions. Heathrow’s planned £16 billion third until 2050. The plan includes a A total of 14 high definition cameras runway expansion plans. proposal for extension of the runway will provide a 360-degree view of to enable long haul flights, extension the airfield, with the images sent Gatwick CEO, Stewart Wingate, of the terminal, a new parallel by secure super-fast fibre networks has announced that 2017/18 will and additional aircraft stands. to air traffic controllers working be Gatwick’s biggest year of in a new operations room at the investment, with a £240 million London City has announced that it NATS control centre in Swanwick, planned spend over the next twelve is to become the first UK airport to Hampshire. Construction will begin months, part of the airport’s £2.5 build and operate a digital air traffic later this year and is due to be billion transformation programme. control tower, with a multi-million completed in 2018, with the tower pound investment in the technology. fully operational in 2019. John Lennon Airport Working closely with NATS, the launched a four-week consultation in

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Chief executive, Declan Collier, said: “A pioneering new digital air traffic control system will enhance safety and improve resilience, setting a new standard for the global aviation industry to follow. This cutting- edge proven technology future- proofs London City Airport’s air traffic control for the next 30 years and beyond”.

This year London City will also begin construction on its £350 million City Airport Development Programme, which will include seven new aircraft stands, a parallel taxiway and a in the UK operating dedicated arrivals ’s newly-expanded terminal extension. and departures terminals. immigration hall, which includes ten of the latest ePassport gates, Manchester Airport has unveiled Meanwhile, Airport has was officially opened by the UK’s the next phase of its £1 billion launched the first phase of its Immigration Minister, Brandon transformation programme, which terminal transformation project, Lewis, on 22 June. As well as will be one of the largest private with the opening on 30 May of its introducing the new gates, the sector investments in the north of new international arrivals facilities. enlarged accommodation has in decades. Passengers arriving from been redesigned to provide Border were the first to be able to use the Force officers with a clearer view of Stansted Airport has secured planning new passport control and baggage passengers entering the Immigration permission for a new £130 million reclaim facilities and were greeted on Hall. The Government and Bristol arrivals terminal to be built next to the arrival by Scotland’s famous bagpipe Airport jointly funded the £2.3 current terminal. It will include larger band, The Red Hot Chilli Peppers. million project.  immigration and A new Northern Lights executive areas. Work will begin in late 2018 lounge for departing passengers and is expected to take three years to opened on 1 July. complete. Once the terminal is open, Stansted will become the only airport

THE AIRPORT OPERATOR SUMMER 2017 26 From around the sector…

USING DIGITAL TECHNOLOGY TO DRIVE EFFECTIVENESS

UK airports will continue to turn to technology innovation to drive operational effectiveness and to deliver sustainable business value, according to a leading international adviser to airports.

Los Angeles-based Management Consulting firm, Avasant has drawn on experience of technology innovation and business impact from airports worldwide, including both Gatwick and Heathrow, to develop a picture of how emerging technologies and innovation-driven strategic partnerships are transforming airports, cutting costs and providing a platform for sustainable revenue growth, particularly in ancillary revenues.

Transportation practice lead, Carlos improve customer experience and Hernandez says that capital-strapped Hernandez, said that airports are make airport processes more efficient. airports around the world are looking at how increasingly focussing on operational This has been largely achieved already they can optimise operations to cut costs, transformation as an alternative to throughout the passenger journey with improve capacity utilisation, improve security significant new capital investment, baggage claim, check-in and parking, is and reduce issues related to loss and pilferage. driven by an approach which helps to increasingly the case with baggage drop Supporting higher capacity with existing reconcile airport innovation needs with and could soon be so with boarding. assets is a key goal for many airports. high investment barriers. The approach and security offer less eliminates the upfront capital cost and potential for process without agent Avasant has worked with Pearson, is based on strategic partners being intervention, though technological Canada’s largest airport and the second compensated through a share in the innovation is increasingly being used busiest airport in , to business benefits realised. to monitor both people coming into support an enterprise-wide business and IT airports and transit passengers for transformation initiative. An increase in Major levers of digital transformation possible security threats and to improve non-aeronautical revenues, user experience at airports that Avasant has identified communication with law enforcement improvement and operational process include customer experience and passenger authorities. optimisation have been key elements of flow improvements, optimisation of the airport’s plan. A technology blueprint, process, economic lifestyle and revenue Technology will offer increasing road map and sourcing strategy, together optimisation and partnership innovations. opportunities to improve passenger flow with an innovative gain-sharing model are Hernandez says that innovative technology based on dynamic flow management, enabling Toronto to defer new investment, solutions, directly linked to revenue and says Hernandez, not least by enabling cut IT operations costs by over 35%, margins, are driving these levers. By real-time notification of bottlenecks identify business operations cost reductions reinventing their business models and and expected passenger flow, based on of 20 to 25% and identify an increase in defining new ones, UK airports can find flight data and airport sensors. He says non-aeronautical revenues of 10 to 15%. new revenue sources, grow revenue and that at many airports there could be deliver sustained profitability. opportunities to cut the time it takes to Looking ahead to coming trends in digital get from check in and through security business transformation for airports Hernandez predicts that more and more by 75%, allowing passengers to pass Hernandez says that will partly depend travel processes will be automated and through security in less than five minutes, on each airport’s circumstances, but he forecasts that this will “progressively giving them 30 to 45 minutes to shop and foresees growing interest in both intelligent eliminate traveller-agent interaction offering the prospect of an increase in maintenance and digital solutions to points at airport”, as digital technologies retail revenues of as much as 15%. security challenges.

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PASSENGER NUMBERS GO ON RISING

As the summer 2017 season began UK consecutive month of growth, with record high for the month. The biggest airports continued to smash records Alicante, Hamburg, , Stockholm year-on-year growth was on routes to for passenger numbers – with most and Paris showing the biggest increases. Denmark, Bulgaria and Cyprus. forecasting further growth over the coming months. Edinburgh Airport had its busiest May recorded 6.7% growth on record, with a 10.8% increase and in May, with more than 4 million Birmingham Airport saw a 19.5% 1.2 million passengers, with the biggest passengers. Demand for long-haul increase in May over the same month increase in international passenger destinations enabled Gatwick to achieve last year, with 1.2 million passengers. numbers. Nearby saw a its 51st consecutive month of growth. It was the 27th consecutive month of 10% increase, with 910,000 passengers. North American destinations were up by growth. Short-haul services racked up 13%, led by Fort Lauderdale (up 125%), the most significant growth, with routes London Luton Airport continued over Los Angeles (up 48%) and Calgary (up to Nantes, Sofia and Rhodes recording three years of consecutive growth with 43%). the biggest increases. 8.1% growth in May and more than 1.4 million passengers. Belfast International Airport had its Manchester Airport’s growth in busiest day ever on 23 June, with nearly May was 11.9%, with more than 2.5 Stansted Airport had 7% growth in May, 24,000 passengers passing through the million passengers. May was the 38th with nearly 2.3 million passengers, a airport.

SOLAR POWER CUTS COSTS AND EMISSIONS AT BELFAST

Over a quarter of the power at Belfast International Airport is now coming from the sun, cutting the airport’s costs and emissions.

The airport has announced savings of over £100,000 for the first ten months of operation of its dedicated solar farm, located close to the airport’s terminal building. It is also estimated the energy from the farm will save 2,100 tonnes of carbon emissions each year.

Lightsource Renewable Energy, one of Europe’s leading solar energy companies, spent £5 million building the farm, with the airport buying the clean electricity produced through a run on solar electricity alone for almost is consistently delivering a reliable ‘green’ 25-year power purchase agreement. nine hours. and cost-saving energy supply for the Although on average the solar farm is airport. No other airport in either the expected to generate over 25% of the The airport’s Operations Director, Alan rest of the UK or Ireland has a similar airport’s annual energy needs, at certain Whiteside, said: “The solar farm project energy source and we are delighted with peak generation times the airport has has exceeded all expectations. The project its operations”.

THE AIRPORT OPERATOR SUMMER 2017 28 From around the sector…

HEATHROW’S PAULA STANNETT WINS EXCELLENCE AWARD

Heathrow Airport’s Human Resources Paula won the award for her Director, Paula Stannett, has won ACI demonstrated excellence in human Europe’s first-ever HR Excellence Award. resources and her leadership acumen. She was also honoured for investing Paula picked up the award during ACI heavily in increasing staff engagement Europe’s gala dinner in Paris in June to positively transform the workplace from Augustin de Romanet, Chairman culture and for her focus on catering to and CEO of Aeroports de Paris and employees’ needs and helping them fulfil outgoing President of ACI Europe. their potential.

The award was created to recognise Vikki Gledhill, Reward Business Partner individuals who have demonstrated at Manchester Airports Group (MAG) excellent leadership and human resources was also highly commended for this management. The objective of the new award. award is to give exposure to excellence that will help the airport community The winner of the 5 to 10 million to better assess and implement the new passengers’ category was Naples procedures and skills needed to develop International Airport, with Bristol the industry’s workforce. Airport highly commended.

BIRMINGHAM AIRPORT CONDUCTING AIRSPACE CONSULTATIONS

Birmingham Airport has launched a consultation with residents affected by new proposed flightpaths for aircraft departing to the north of the airport.

The planned new flightpaths are part of a national programme to modernise UK airspace and will result in the removal of fixed ground radio beacons and the reorganisation of airspace to the north of Birmingham.

David Winstanley, Chief Operating Officer at the Airport, said: “These by an open and honest approach which consultation is part of an airspace consultations are an essential part of aims to build understanding, trust and change process required by the Civil the process. Aside from technical flying mutual respect. We really encourage local Aviation Authority. constraints, we also analyse the impact communities to attend”. on surrounding communities and take Birmingham Airport is the UK’s the views of our local stakeholders very A series of 12 early evening consultation seventh largest airport, handling 12 seriously. These consultations give an meetings began on 4 July and will million passengers a year and serving opportunity for dialogue, characterised run for eight weeks to 21 July. The 140 destinations.

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