SPRING ISSUE 2018

Every flight begins a t the airport.

The challenges of running a capacity- constrained airport

Interview: André Schneider, CEO Geneva Airport

Drones at airports Commercial & Retail The Airline Conversation Preparing for an invasion All the latest on Ben Gurion With Niky Terzakis Airport, digital transformation CEO of new long haul & much more start-up Air Belgium YOUR JOURNEY IS OUR JOURNEY

Our operation in 119 countries with a professional service network respond to any request at any time. LG Electronics provides exceptional visual experiences for modern airports and passengers with traditional display ratio of 16:9 up to 86”/88” Ultra Stretch formats and more. LG’s exclusive OLED Signage are your optimal solution for the highest picture quality and flexible format. We work to exceed your expectations.

http://www.lg.com/global/business/integrated-solutions

Signage AD_210x297.indd 1 2018. 2. 22. 오후 8:13 CONTENTS

07 08 10

OLIVIER JANKOVEC, AIRPORTS IN ANDRÉ SCHNEIDER, DIRECTOR GENERAL, THE NEWS CEO GENEVA ACI EUROPE AIRPORT A snapshot of stories from Editorial: Of airport around Europe The challenges of running privatisation & airline a capacity-constrained airport fantasies

16 18 20

UNMANNED AERIAL SESAR DEPLOYMENT SESAR VEHICLES AIRPORT GROUPING Taking a fresh look Preparing for an invasion Airports exploring new EU at airport operations funding opportunities

Airports Council International Director: Media & Communications Magazine staff PPS Publications Ltd European Region, Robert O'Meara Rue Montoyer, 10 (box n. 9), Tel: +32 (0)2 552 09 82 Publisher and Editor-in-Chief Paul J. Hogan 3a Gatwick Metro Centre, Balcombe Road, B-1000 Brussels, Belgium Fax: +32 (0)2 502 56 37 Editor Ross Falconer Horley, Surrey RH6 9GA, United Kingdom [email protected] Assistant Editor Marta Dimitrova Director General Commercial Manager Julian Bidlake Tel: +44 1293 783851 Fax: +44 1293 782959 Olivier Jankovec Director: Membership Head Designer Richard Jende email: [email protected] Tel: +32 (0)2 552 09 72 Services & Events Graphic Designer Magdalena Matejewska [email protected] Danielle Michel © PPS Publications Ltd 2018 Tel: +32 (0)2 552 09 78 Fax: +32 (0)2 502 56 37 [email protected]

The opinions and views expressed in Communiqué Airport Business are not necessarily those of ACI EUROPE or the Publisher. ACI EUROPE and PPS Publications accepts no responsibility or liability whether direct or indirect, as to the currency, accuracy or quality of the information, nor for any consequence of its use. CONTENTS CONTINUED

22 24 29 30

ACI EUROPE NEW TURKISH AIRPORTS AIRPORT COMMERCIAL AIRPORT COMMERCIAL YEAR RECEPTION & RETAIL & RETAIL Turkey’s airports return to ACI EUROPE hosts its Annual New Year spectacular growth James Richardson Heinemann Joint Rituals “creating opportunities Reception in the European Parliament Venture creating enhanced shopping for experiential engagement experience at Ben Gurion with customers”

32 34 36 38

AIRPORT COMMERCIAL ISRAEL AIRPORTS AIRPORT COMMERCIAL AIRPORT COMMERCIAL & RETAIL AUTHORITY & RETAIL & RETAIL

A digital marketplace: Using Israel Airports Authority transforming Embracing digital to offer travelling “From moment to momentum”: personalised, geo-relevant marketing Israel’s international presence consumers tailored, efficient F&B Lagardère Travel Retail’s shift to drive footfall and revenue experiences towards a frictionless retail experience

40 42 44 46

AIRPORT COMMERCIAL AIRPORT COMMERCIAL AIRPORT COMMERCIAL AIRPORT COMMERCIAL & RETAIL & RETAIL & RETAIL & RETAIL

Coindrum breaking into Mondelez pioneering digital in the Intelligent analytics and algorithms K-Beauty trend comes to ACI the world market confectionery category leading to “optimal pricing and EUROPE Airport Commercial improved revenue” & Retail Conference & Exhibition

48 50 54 56

THE AIRLINE ACI AIRPORT AIRPORT PEOPLE LOGISTIC PROCESS CONVERSATION EXCHANGE 2017 AUTOMATION Nolan Hough, Managing Director, With Niky Terzakis, CEO Air Belgium 1,405 industry experts attend ACI MAG-O Seamless logistic process automation Airport Exchange hosted by Oman to optimise travel experience Airports Management Company

59 62 64 66

NAPLES AIRPORT VIENNA AIRPORT INNOVATION SHOWCASE OUTSIDE IN

Naples Airport – the fastest Vienna Airport “promoting Passenger-focused innovation Roland Gerhards, CEO ZAL Center growing airport in Italy sustainable growth and of Applied Aeronautical Research boosting competitiveness” VIE_Aviation_Stephansdom_210x297_AirportBusiness.indd 1 06.02.18 10:14 Congratulations! YoUr PASSenGerS hAve SPoken YoU Are An ACI AIrPorT ServICe QUAlITY (ASQ) AWArD WInner!

“Aperi atem eos volum qui volupturi nonempos con conserumquam si vent. Aque consecepudae ommos aut pedignatiur? Um non nit, nonseruptas id ut libus at quatur accaborem Congratulations YoUr PASSenGerS hAve SPoken

doluptate prae invende llupta aut aciatur iberume Airports Council Internationalturestios num (ACI) sunt Worldet abore.” congratulates the winners of the 2017 Airport Service Quality (ASQ) Awards.

The most demanding judges in the industry have deemed your airport to be among the very best in the world!

The annualThe ACI ASQASQ Award Awards is the airport recognize industry’s most and respected reward award, demonstrating your team’s ability to consistently deliver a best in class the best airportscustomer in service the worldexperience according at your airport. to ACI’s ASQ passenger satisfaction survey. They “Please accept my personal congratulations on your ASQ award, ACI’s representrecognition the ofhighest your airport’s possible exceptional accoladeand sustained delivery for of airport operatorsoutstanding and are customer an opportunity service. to We see ever-greater competition among airports and with it increasing celebratepressure the to optimizecommitment performance acrossof airports the operation, especially worldwidewhen it comes to continuously to the passenger experience. improving Today’s airport the managers must respond to the passenger’s demand and expectation for superior passenger experience.customer service.

Your airport’s results in the 2015 ASQ Survey demonstrate your professionalism, commitment and success in delivering that high level of customer service. Your airport is a credit to our industry and I thank you and your team for a splendid achievement.”

Angela Gittens, Director General, Airports Council International (ACI World) For more information or to see the 2017 ASQ Award recipients, visit aci.aero/ASQ-awards. EDITORIAL

Of airport privatisation & airline fantasies

By Olivier Jankovec, Director General, ACI EUROPE

ver the past months, you may support from public financing (an option One can only assume such promised have noticed how increasingly that is hardly available anymore), but also benefits would have been the continuation vocal IATA has become about often came with no shareholders to remu- of some form of subsidisation from airports O airports – sounding the alarm nerate – as many governments had no or to airlines. IATA is even more candid when about the need for more airport capacity limited expectations in terms of financial it calls for airports to remain in public (somewhat disingenuously, it has to be return on their airport investment. With hands, at least as far as Europe is con- said), yet shaking a fist at the sky, asking this extended concept of sovereign inter- cerned. But with more than 50% of the “what is to be done about airport est and a belief that infrastructure needed continent’s airports now having private charges?”. And in that second strand, they to be part of it, that system of public shareholders – and yet more to come, have embarked on a very overt campaign airport ownership was essentially geared I am afraid the plane has already left against privatised airports. to subsiding airlines. As a result, airlines the gate. IATA sees the privatisation of airports became accustomed to a level of airport Let’s not lose sight of the fact that as one of the “worrying trends which are charges that was utterly disconnected there is a wealth of evidence to prove that increasing costs” and considers that “we from the actual cost of operating and privatised and semi-privatised airports are yet to see an airport privatisation that developing airport facilities. in Europe are extremely competitive and has in the long run delivered on the This system prevailed for decades and focused on their customers. Just look at promised benefits”. On that basis, IATA it was deemed affordable and legitimate, the number of them that have won inde- is now calling for airport ownership to as long as airlines were few and as long pendent praise for passenger service and remain in public hands. as they themselves were in public hands. the quality of their facilities – or indeed, In many ways, I must say that I find But from the moment airlines started to for their success in attracting airlines and their position puzzling, to say the least. go private, things changed. Governments developing connectivity in the combative That airport privatisation has over time naturally became less prone to continue world of route development. Neither of increased costs for users (the airlines) subsiding airlines they no longer owned these happens without committed effort, is nothing more than stating the obvious. through their airports. Aviation growth and efficiency and investment. But that is precisely because privatisation tighter public finances simply made that In the end, IATA’s anti-airport pri- in Europe has normalised the way airport system too costly – also leading many vatisation campaign is akin to asking infrastructure is financed – allowing airports governments to sell their airports to pri- governments to go back to bearing the to move from a dependence on tax payers’ vate shareholders, who actually expected costs of airport infrastructure, so that money, towards a greater reliance on the a return on their investment. privatised airlines can further boost ‘user pays’ principle. IATA’s comments are entirely self-serving their profits. This year, these profits are In the past, public ownership for airports when they point to airport privatisation expected to rise to $11.5bn for Europe’s not only came with the ability to get direct failing to deliver on the promised benefits. airlines (from $9.8bn in 2017). I doubt this would be a politically appealing proposition for governments in Europe – especially at a time when they need to IATA’s anti-airport privatisation respond to rising populism. In any case, campaign is akin to asking governments should not miss the irony governments to go back to bearing that 30 years ago, airlines were actually the costs of airport infrastructure, the ones calling for airport privatisation – so that privatised airlines can all in the name of improved efficiency. further boost their profits.

Spring 2018 Airport Business 07 Airports in Keflavik Airport Experienced 15.3% growth in January to 570,000 passengers the news A tourist boom has caused traffic at Iceland’s Keflavik Airport to grow more than five-fold over the past nine years, with a predicted 10 million passengers this year. In a bid to accommodate Have you seen the newly refreshed this traffic surge, the airport expects to invest $1 billion over the next 7 to 8 years to make room Aviation Express yet? To subscribe to for new airlines and routes. Surrounded by black, barren lava fields, there’s plenty of room for our daily newsletter and stay up to Keflavik and other operations to grow. Its vision of the future includes an “Aerotropolis” that would speed with the latest aviation news, drop potentially stretch all the way to Reykjavik, some a line to [email protected] 30 kilometres away.

Stansted Airport Had its busiest-ever January, handling 1.8m passengers (+3.3% on Jan 2017)

Stansted Airport has applied to increase the number of passengers it is allowed to handle each year by 8 million. It has sought permission to raise its annual passenger cap to 43 million, aiming to make better use of its runway capacity as part of a five-year, £600 million construction project to expand passenger facilities. About 26 million people travelled through Stansted last year and the airport is expected to hit the annual 35 million cap in the next four to five years. Chief Executive Ken O’Toole believes that this new plan to tackle the airport’s shrinking capacity would create an extra 5,000 jobs. The application will also seek permission for additional airfield infrastructure within the current airfield boundary, comprising two new links to the runway, six additional stands on the mid airfield and three additional stands at the north eastern end of the airport.

Toulouse-Blagnac Airport Traffic increased by 8.6% to 680,000 in January, with international traffic up by 16.5% and domestic traffic by 2.7%

Passengers taking off from the runways of Toulouse- Blagnac are sure to notice that the roof of car park P2 is now covered with solar panels. These 3,633 panels will produce the equivalent of the building’s electricity consumption. The construction of the solar power plant is a continuation of older commitments to renewable energies: since 2015, the airport has used electricity from 100% renewable energy supplies. In 2018, the airport will conduct two other major energy transition projects, initiated last year: HyPort, launched by the Occitanie region (development of hydrogen power in the airport zone), and DEMETER, a project from Toulouse Métropole and Airbus to reduce carbon emissions from road congestion and modes of transport used by airport zone employees. The aim is to achieve carbon neutrality by 2020, within the Airport Carbon Accreditation programme.

Aena Traffic across Aena’s airports grew by 8.7% to 15.5m passengers in January

Aena’s commitment to passenger experience continues. It has revamped its free Wi-Fi service to enable high-speed downloading and HD streaming. The new network, whose bandwidth has not been unveiled, will be deployed across 46 airports in the beginning of 2018. According to Aena, the service will be completely free, with the pay option being cancelled, and will have no advertising. Travellers will be able to use it after they register on the Aena website. The previous service, which has been available for the last two years, had a premium subscription that enabled speeds up to 10Mbps, depending on the airport. The free option delivered no more than 2Mbps, making it impossible to use any video streaming or over-the-top (OTT) services. Oslo Airport Moscow Domodedovo Traffic increased by 6.6% to 27.5m Saw passenger numbers increase by passengers in 2017 7.6% to 30.7m in 2017

Oslo Airport saw a huge increase in air cargo in Travel Retail Domodedovo, a joint venture 2017, the biggest volumes of which were exports between Gebr Heinemann and its Russian of fresh Norwegian seafood. According to airport partner Greenway, has won the tender to operator, Avinor, the gateway handled 185,000 become the exclusive duty free operator for the tonnes of air cargo last year – a whopping 35% new Terminal 2 facility at Moscow Domodedovo. increase on 2016. Norway generated just under The T2 duty-free plaza will cover a total area 230,000 tonnes of seafood as air cargo in 2017. of 7,000sqm and will include a 4,000sqm Of this volume, 39% flew directly out of Norway walk-through store located directly behind the from Oslo Airport. This is good news for the security checkpoint. The area is scheduled to Norwegian seafood industry, which during last open in June 2018 ahead of the FIFA World Cup year has increased its competitiveness further, soccer championships in Russia. thanks to better connectivity and capacity directly out of Norway.

Vilnius Airport Lithuanian Airports handled a record 5.2m passengers in 2017, across Vilnius, Kaunas and Palanga

The constantly growing passenger traffic forced Vilnius Airport to increase its capacity again. After completing its runway reconstruction last summer, Vilnius Airport is moving inside with the reconstruction of its passenger terminal. The cost of the works is estimated at €60 million. The modernisation of the terminal will consist of several phases: reconstruction of the sterile area, of the apron and taxiway, of the airport’s public traffic infrastructure, and of the departure area. The last phase is scheduled to end in 2021.

Düsseldorf Airport Last year, traffic rose by about 5% to over 24.5m passengers

Düsseldorf Airport will deploy next generation ECAC Standard 3 explosive detection systems screening technology from Smiths Detection. Awarded by the Procurement Office of the German Ministry of Interior, the contract includes installation of 14 advanced HI-SCAN 10080 XCT scanners. Smiths Detection has also signed an eight-year associated service agreement for the airport. Installation of systems is expected to begin this year and will be launched over the next four years.

Naples Airport Posted a 27% increase in traffic in 2017, making it Italy’s fastest-growing airport

Naples Airport is the first in Italy to implement a Munich Airport chatbot. This AI-driven technology is embedded in the airport’s Facebook page and enables Traffic grew by 5.5% to an all-time high passengers to receive answers to their questions of 44.6m in 2017 almost instantly. While chatting with the bot through Facebook Messenger, travellers will be In keeping with the city’s now well-established able to receive information on their flight, on annual Munich Security Conference, Munich the controls, on the safety rules, or discover the Airport has launched a new centre to defend it services available outside and inside the airport, and the aviation industry against cyber-crime. The with information on shops and restaurants, unit is called the Information Security Hub (ISH) transport and parking. Unlike classic airport and will house a team of IT specialists who will chatbots, it is also a real Tourist Assistant. work together with experts from the European Travellers can continue to engage with the aviation industry to develop strategies in cyber- chatbot while discovering the city and the region, defence. The new competence centre has four thanks to its ability to provide tourist information training rooms and IT labs, a control room and through search and geo-location. The chatbot is an amphitheatre for presentations and briefings. currently only available on Facebook, but might According to the airport, there has been a massive soon be extended to other platforms. Available in increase in the number of cyber-attacks on its Italian for now, the airport is working on adding IT systems and those of companies and public an English language option, to meet the needs of authorities in Germany. international travellers.

Compiled by Agata Lyznik. GENEVA AIRPORT

“You cannot fully control growth, but you have to manage its consequences”: The challenges of running a capacity- constrained airport

An interview with André Schneider, CEO Geneva Airport. By Ross Falconer

eneva calls itself “the world’s André Schneider took the helm in September the Swiss-French border which runs along most international city”. It is a 2016, coming from a background outside the the airport’s northern perimeter, the vista financial hub, a centre of diplo- airports industry. Most recently, he was Vice framed by the snow-topped peaks of the Alps G macy, and of course the gateway President of Resources and Infrastructure at in the distance. to the Alps. the Federal Polytechnic School of Lausanne, In conversation, he is eloquent and frank The city is home to the European and before that spent 13 years in various about the challenges facing the airport. headquarters of the United Nations, roles at the World Economic Forum (most “One of the big surprises, being in the the headquarters of the World Trade recently as Managing Director and Chief mobility business, is that you cannot fully Organization, 750 pharmaceutical and Operating Officer). control growth, but you have to manage its biotechnology companies, 120 banking Our interview takes place early on a crisp consequences,” says Schneider. “In early firms, the heart of the Swiss watch-making winter’s morning. Schneider is energetic 2017 we experienced some major grow- industry, and the EMEA headquarters of and enthuses about Switzerland winning ing pains, with long queues. I must say 130+ multinationals, including P&G, Nestlé, its 12th Winter Olympics medal that very that I was a little bit surprised, because we JTI and SITA. day (the country would ultimately win 15 can usually make quite accurate growth This list is by no means exhaustive, but and come 8th in the medal table). Only forecasts. As a result, we spent the whole serves to highlight the importance of Geneva the day before, he had received gold of 2017 upgrading as much as possible to as a destination. Indeed, Geneva Airport’s medal winner Sarah Höfflin (slopestyle be ready for this winter season, which has traffic is growing – by 5% to 17.3 million in 2017 skiing) on her return to Geneva. worked really nicely.” – and capacity constraints are a significant Beyond the panoramic views of the Discussing the structural changes challenge for the airport and its new CEO. airfield from Schneider’s office, we can see he has implemented on becoming CEO,

10 Airport Business Spring 2018 GENEVA AIRPORT

Schneider explains that he very quickly year-by-year, but we’re reaching the limit of But, overall, Geneva’s traffic is predomi- reorganised the top management team, its expansion now. Replacement will come nantly European point-to-point, with only centring on two principal business somewhere between 2022 and 2029, setting around 5% of passengers connecting. “We units (Operations, and Commercial & the basis for our next 20-30 years of devel- want to increase transfer traffic slightly, Development) and five strategic pillars opment. Switzerland has a very defined because we know that on certain potential (platform operability, customer satisfaction, planning process, which we are currently intercontinental routes, we are just at the economic sustainability, management of completing with the Federal Government.” edge of their attractiveness for airlines,” human resources and skills, and commitment The new East Wing will mainly be dedi- Schneider explains. “Given that we have an to responsible values). cated to long-haul traffic, in line with the excellent European network, we believe that “The reason I did this is that I believe air- airport’s strategic objective to expand by increasing overall connecting flights by ports need good transversal management, intercontinental services. Most recently, 3-5% we would generate enough passen- covering commercial, operational, sustain- Ethiopian Airlines announced it will launch gers for some new intercontinental routes.” ability, and IT aspects. When I came here services, three times weekly, between Addis The airport is also studying models such the central leadership was, for me, too Ababa and Geneva on 3 June. Schneider as GatwickConnects, which assists travellers limited,” he says. “HR is also a big challenge explains that the route was hotly anticipated self-connecting between different airlines. for us. Switzerland is a small country and the in the diplomatic world, with Addis Ababa SWISS has a 15% market share at Geneva, airport business is still very much nationally home to several intergovernmental organi- and Star Alliance carriers overall a 28% regulated, so if, for example, I want to hire sations including the African Union and the share. Low-cost carrier traffic, dominated by a new COO familiar with Swiss regulations, UN’s Economic Commission for Africa. easyJet, accounts for 45% of Geneva’s total. there is not a big pool of candidates.” Meanwhile, another potential challenge looms on the horizon. Following a simi- André Schneider, CEO Geneva Airport: “In early 2017 we experienced some major growing pains, with long queues. I must say that I was a little bit surprised, lar referendum in 2014, and against the because we can usually make quite accurate growth forecasts. As a result, we backdrop of the much higher profile spent the whole of 2017 upgrading as much as possible to be ready for this Brexit negotiations, in January Switzerland winter season, which has worked really nicely.” moved closer to a referendum on the free movement of EU citizens to Switzerland. This agreement was enshrined in a pack- age of bilateral treaties signed in 1999 and significantly, if one bilateral agreement falls, so too do all of the others, including on aviation. “Absolutely, there are very comparable issues to the UK,” says Schneider. “The Air Transport Agreement gives us automatic access to all destinations in Europe – if that would fall, Switzerland would have to renegotiate flight rights with each individual country. Even if I don’t think negotiating those is a major problem, it will take time. Hence, we are also con- cerned about the speed non-EU countries can renegotiate flight rights with the UK, because for Geneva, London is our prime destination with 2.4 million passengers. So, we want naturally to avoid losing those flight rights, even temporarily.”

New East Wing for intercontinental services The airport estimates demand will reach 25 million passengers by 2030, driven by the economic, touristic and diplomatic growth of the dynamic Lake Geneva region. It is investing in infrastructure to accommodate this, with a new CHF480 million (€415m) East Wing currently under construction and scheduled to open by the end of 2020. “A great outcome of our restructuring is that this year we have been able to revisit our strategic planning internally, rather than outsourcing it, with input from all business and other units,” Schneider comments. “The next major project will be the replace- ment of our main terminal which originally opened in 1969. It has been extended

Spring 2018 Airport Business 11 GENEVA AIRPORT

Schneider is happy with the current airline mix. “easyJet brings us good connectivity in Europe. We still have good legacy carriers, such as SWISS and Lufthansa, which are developing well. We also have develop- ments with Air France-KLM, British Airways, and TAP, so I think it’s the right mix, because many of those legacy carriers also provide good connections to their hubs, so even if it’s going through another major airport, they offer our customers good connectivity.” Geneva has a proactive route development strategy. In addition to a marketing package, it offers up to an 80% reduction on landing fees for new routes. It has also launched an incentive scheme rewarding airlines for the traffic growth they generate; this SWISS has a 15% market share at Geneva, and Star Alliance carriers overall a 28% share. Low- cost carrier traffic, dominated by easyJet, accounts for 45% of Geneva’s total. Schneider is happy involves a refund on the passenger service with the current airline mix. “easyJet brings us good connectivity in Europe. We still have good charge of between 3.5% and 20%. legacy carriers, such as SWISS and Lufthansa, which are developing well.”

Addressing sustainability While expanding, sustainability is high The experiment was successful and was known as FlightChain, involving the use on the agenda. Geneva Airport recently expanded in September 2016 to include all of blockchain technology along with SITA achieved Level 3+ Neutrality of ACI’s airlines. Lab, British Airways, Heathrow and Miami Airport Carbon Accreditation, reducing A new mobility plan is being developed International Airport, and has been a the net emissions under its control to zero. that favours the use of public transport. trend-setter when it comes to trialling “Sustainability is one of our key strategic “We have organised our own bus lines passenger-facing robots (“Robbi” in 2013 endeavours,” says Schneider. “For example, to pick-up our own staff, and this is done and “Leo” in 2016). all new buildings are positive in energy with our partners here – so we are sup- Indeed, embracing new technologies is – that means they produce more energy porting them in this joint venture. The a subject close to Schneider’s heart. A sci-fi than they consume. We are also working airport has to show the direction and enthusiast, interspersed among the model on a new project which will introduce 1% support all parties here to follow up,” aircraft that typically adorn an airport CEO’s of bio-kerosene to all kerosene loaded Schneider adds. “38% of passengers office is a collection of memorabilia from at Geneva – that will start in December currently travel to the airport via public Star Wars, Star Trek and Doctor Who. this year. And we are working on increasing transport, and we aim to raise that. For The FlightChain project was Geneva the presence of hybrid or electric vehicles example, today we offer a free public Airport’s first step into blockchain. “It’s a at the airport – we will reach 40% by 2020.” transport ticket to everyone arriving in good initiative to put people together in the Other key goals include even better waste Geneva. The airport rail station connects airport world. That’s definitely something management. The recycling rate is 42% you to the city centre in just 7 minutes.” that we need to do more, and it’s the best across all facilities, and 49% in the main way to deliver more innovative use cases,” terminal. Meanwhile, a sorting system Blockchain, chatbots, and start-ups says Schneider. “Blockchain is obviously specifically for waste generated by air- Geneva Airport is progressive in its appli- very hot at the moment and in Geneva craft was implemented in 2015 through cation of new and emerging technologies. there are several initiatives to develop a pilot project conducted with easyJet. It recently took part in a data sharing project, blockchain projects; there is real belief that it’s going to bring value to the market.” Meanwhile, an artificial intelligence chatbot, which is currently in beta, will soon be launched on the Facebook Messenger platform. The chatbot will help to bring the right information to passengers when they need it and can help to “bridge the gap between the airline experience and the airport experience” in the future. Another project that Geneva Airport’s

On becoming CEO, Schneider very quickly reorganised the top management team, centring on two principal business units and five strategic pillars. “The reason I did this is that I believe airports need good transversal management, covering commercial, operational, sustainability, and IT aspects. When I came here the central leadership was, for me, too limited.”

12 Airport Business Spring 2018 For quick arrivals and departures

partner with the #1 franchise.*

For more information, contact Wendy Barry: 800.888.4848 x 1788 or 203.877.4281 x 1788 E-mail: [email protected] or visit www.subway.com

*#1 in total restaurant count with more locations than any other QSR SUBWAY® is a Registered Trademark of Subway IP Inc. ©2018 Subway IP Inc. GENEVA AIRPORT

Geneva Airport is working on a new project which will introduce 1% of bio-kerosene to all kerosene loaded at Geneva – that will start in December this year. It is also working on increasing the presence of hybrid or electric vehicles at the airport – it will reach 40% by 2020.

innovation department is focusing on is called “GVA Welcome”. The idea behind this is to “create a better experience between the people who arrive at the airport and the people who are waiting for them at the airport”. Having already created a minimum viable product (MVP) in late-2017, they are now working on inte- grating it with the Geneva Airport app. The app itself – GVApp – is at the heart of the its innovation efforts. In fact, following the challenge of competing with online airport’s digital offer and now has about last year’s Recoding Aviation hackathon, shopping and explains that the airport is 200,000 users, who use it to access free Geneva Airport – alongside Copenhagen, looking ahead to define the creative and Wi-Fi, retail and food & beverage promo- Swedavia and Amsterdam Schiphol – has experiential retail and F&B offers it believes tions, public transport information, and been incubating two start-ups. will be most effective in 10-15 years. interactive geolocation maps. This progressive approach is similarly “I must say the fun part here is that there The airport also has a keen interest being applied to commercial & retail activities, is almost nothing that will not change fun- in the start-up scene and is identifying which currently account for almost 50% of damentally over the next 10 years, and we start-ups that can potentially support overall revenues. Schneider acknowledges need to start planning for those changes today. This brings me back to the very beginning of our interview – one of my real interests in professional life is the desire to achieve excellent strategic planning, working to understand future trends, and defining the main drivers that will have a big impact on our business moving forward.”

Geneva Airport factbox

2017: 17.3 million passengers

2017 passenger traffic growth: 5%

2018 passenger traffic growth (Jan-Feb): 4%

Key airline customers: easyJet, SWISS, British Airways, Air France, Lufthansa

Number of routes: 142

Top 5 destinations: London, Paris, Amsterdam, Barcelona, Porto

André Schneider, CEO Geneva Airport: “One of my real interests in professional life is the desire to achieve excellent strategic planning, working to understand future trends, and defining the main drivers that will have a big impact on our business moving forward.”

14 Airport Business Spring 2018 Air traffi c continues to boom. Airport bottlenecks are a constant challenge. Create more capacity by integrating and automating airport systems to cut the time aircraft spend on the ground. See how our solutions work together to enhance safety and effi ciency across the airport.

www.adbsafegate.com Boost airport performance

17-3907 Ad_Generic_A4_ACI Europe.indd 1 20-02-18 16:16 HEADERUNMANNED DESCRIBING AERIAL VEHICLES FEATURE

Preparing for an invasion

The number of Unmanned Aerial Vehicles (UAV) commonly known as drones have seen a vast increase over the last 5 years and are expected to increase 10-fold globally from 2015 to almost 68m in 2021. As the pervasiveness of drones continues to gather pace they are being put to a variety of industrial uses in agriculture, transport, media & entertainment and other industries. But what are the implications for airports? Panos Spiliotis reports.

or any citydweller, anyone who has taken. That risk is compounded by the fact like runway and taxiway inspections, aircraft visited a major tourism site or any- that current technical knowledge is limited checks by airlines, and the calibration of one who has attended a significant concerning the likelihood and the conse- navigational equipment (ILS, PAPI) done by Fcultural event or music festival, the quences of such a collision. drones. Several airports already use UASs for presence of drones in the sky has become Even if we are successful in preventing ad hoc aerial photography of their aerodrome. very much part of the scenery. A recent study major accidents and incidents involving ama- Surveying tasks can typically take 30-40% by PWC estimates their potential value gen- teur drones, even sightings or near-misses less time to conduct using drones whereas erated can climb to a staggering $127 billion prompt closures of busy airport runways the current PAPI and ILS calibration costing in the near future – with some of it reflecting such as Dubai Airport’s hour-long closure in €100,000 can be cut by up to 50%. For other current opportunities for airports and aviation October 2016. This kind of disruption will only activities such as roof top or building façade itself. So, what does that mean for airports become more frequent, affecting passenger inspections or surveying drones are a much and airport operators? How can we balance journeys and entailing substantial financial safer alternative to industrial climbers. the threats and the opportunities presented cost for airports and airlines alike. Many Several other applications will undoubtedly by such a rapidly-emerging technology? airports will have to decide on the optimal surface once the technology and rules are Modern drone technology has given rise technological and operational measures to in place. In many cases the obstacles to to opportunities and challenges that are as guard against such potential disruptions. deploying drones are not technological, but numerous as its many applications. For air- regulatory and operational. This is an area ports, this development gives rise to two key Untapped potential where the industry and regulators at the considerations: firstly, keeping airports safe Despite these safety threats, drone technol- European and national level need to work from unwanted drone activities especially ogy presents enormous potential for aviation. hand in glove to seize the opportunity and by hobbyists and potentially from terrorist or UASs are not necessarily a hazard. In fact, foster the development of global leadership criminal acts. Secondly, facilitating the use properly operated in-house drones have a lot in safe drone operations at airports. of UAS technology where it adds value to an to offer airports. Today’s technology boasts Wider business opportunities from accom- airport’s operations or commercial activities. levels of performance and reliability that ren- modating drone flights will follow once UASs Integration of the technology into controlled der them a potentially useful tool for several enter the core business of air transport. airspace will be a critical component to aspects of airport operations. When it comes Several drone and aircraft manufactur- reduce the risk that drone operations cur- to a number of tasks inside and around the ers (Singular, Nautilus, Airbus, Boeing) are rently pose to the safety of manned aviation airport perimeter, the deployment of drone currently developing prototypes that seek at and around airports, as well as challenges services could help drive process improve- to establish the right balance of technical to privacy, and the security of aviation. ments and cost efficiencies, as well as the features necessary to achieve successful roll- ACI EUROPE’s early attention went to development of new business opportunities. out. By laying the ground through preparatory making sure that authorities were taking Drone applications currently feasibly work today, airports and their partners will be sufficient measures to mitigate the safety include pavement surface condition or in a position to reap the benefits of these new risk posed by amateur drone pilots. These ground lighting inspections, but also obsta- markets in the future. Otherwise airports risk drones can pose serious risks to manned cle surveys, security-related tasks such as facing the challenge of new entrants to poten- aviation including the risk of a collision with clearing or securing areas and perimeters, tially lucrative new and changing markets. manned aircraft. Numerous near-misses construction work surveying and surveillance and some incidents involving the unsafe as well as improved situational aware- Addressing the need for smart use of amateur UAVs around airports have ness during emergencies and emergency regulation occurred at European airports. Collisions exercises, 3D mapping etc. In as soon as 3-5 To benefit from drones airports need to with commercial aircraft have so far been years’ time, we could see operational tasks prepare operationally. Concepts that detail avoided in Europe, although Switzerland’s how to integrate drones in busy airfields are Transportation Safety Investigation Board starting to be developed and will require joint (SUST) has warned it is only a matter of efforts from airports, ANSPs and authorities. time until one happens if measures are not Operating drones safely at airports will not be without pitfalls: applying outmoded regulatory thinking in this area could make drone opera- tions impractical and unattractive. Likewise, any operational concept or regulation that cuts off precious capacity from manned aviation

16 Airport Business Spring 2018 UNMANNED AERIAL VEHICLES

would be problematic. The wider drone economy now needs a clear rulebook for traffic management and safe operations. EU Commissioner for Transport Violeta Bulc has committed to deliver this in the EU Aviation Strategy she launched in December 2015, in which the need for well-calibrated regulation of drones features prominently. With the political agreement on the new EASA Regulation and the endorsement of the Helsinki Declaration by the aviation com- munity late last year, the prospects for the EU’s rulebook on the use of drones have gathered further momentum. Olivier Jankovec, Director General ACI EUROPE commented “The airport industry Integration of UAS technology into controlled airspace will be a critical is embracing innovation and we are excited component to reduce the risk that about the potential opportunities that drone drone operations currently pose technology presents, in particular in relation to the safety of manned aviation at and around airports, as well to infrastructure maintenance and opera- as challenges to privacy, and the tional efficiency. That said, the safety and security of aviation. security issues concerning the use of drones in and around airports are increasingly well- be put in place for drones in Europe. To lay ground and air capacities boosting aviation documented – underlining the urgent need the ground for the safe and full deployment as a whole. The U-Space concept currently for effective answers from authorities and of drones inside and outside airports, we will being pursued by SESAR hand-in-hand with regulators.” need a risk-based regulation complemented national authorities requires active participa- EASA’s recent opinion on drones, envis- by modern, digital traffic management. tion from the airport community. That is the ages so-called “standard scenarios” which Simply treating drones as manned aircraft best way to ensure that the integration of would be welcomed by airports and drone would only end up placing limits on drones, UAS technology into the controlled airspace operators. conventional aviation, or probably both. takes into consideration the airport industry’s Ultimately a lot will turn on how soon a new Simplifying and automating traffic man- concerns and interests. The opportunities are regulatory and operational framework can agement will make the most out of limited waiting to be seized, but the clock is ticking.

Biometrics – more sympathetic. With eGates from secunet.

A highly ef cient and above all secure system for border control is not just a matter of chance. It’s from secunet. Because of this automated border control system solution, easygate, is able to compare the biometric data of passengers in connection with their travel document. The control process has become noticeably faster and easier for travellers. And that means happy looks on travellers’ faces at the gate.

Sounds impossible? Put us to the test! www.secunet.com/easygate

IT security partner of the Federal Republic of Germany SESAR DEPLOYMENT AIRPORT GROUPING

There was strong participation by airport operators in the last Connecting Europe Facility (CEF) Transport Call, launched on 6 October, which made €290 million available for co-funding, with a specific focus on accelerating the renewal and updating of European airports’ Air Traffic Control (ATC) infrastructure. What is so remarkable about this? Luc Laveyne reports. Airports exploring new EU funding opportunities “This unique partnership has allowed the 4th biggest UK airport, which is now at record passenger numbers he SESAR Deployment Airport In parallel, another project – “Enablers and continuing to grow, to introduce Grouping (SDAG, part of ACI for Airport Surface Movement related to vehicle transponders within the airside environment, which are part of a EUROPE) has been working hard to Safety Net” is already being executed. This suite of safety-focused Pilot Common highlight funding opportunities to project is a multi-stakeholder project (12 Project (PCP) deployments.” (Monika T Simonaityte, Stansted Airport) airports. In recent times, it has noticed that Airport Operators, 1 ANSP and 1 Airspace this is having an impact, with an increas- User) awarded by INEA for its co-funding ing awareness and interest by European through the 2016 CEF Call and coordi- London Stansted Airport with a vehicle tran- airports in obtaining public funding for nated by Groupe ADP with SDAG support. sponder, to improve situational awareness, their Air Traffic Management (ATM)-related It aims at synchronised deployment of the reduce the risk of runway incursions and investments in the past months. It is very Advanced-Surface Movement Guidance contribute to the overall airport safety cul- interesting to see the growing number of and Control System (A-SMGCS) throughout ture. London Stansted Airport will continue multi-stakeholder projects presented. For Europe – a system that provides guidance to collaborate with European stakehold- example, one multi-stakeholder’s project and surveillance for the control of aircraft ers to introduce other such technological proposal “Synchronised stakeholder deci- and vehicles in order to maintain airport and operational solutions that will not only sion on process optimisation at airport throughput under all weather conditions, facilitate the airport’s growth efficiently level”, addressing one of the European while keeping the required level of safety. and safely, but also effectively play a vital Commission’s priorities for this call, has In particular, Stansted Airport, one of the role in a coordinated European Air Traffic been coordinated by Brussels Airport with project contributors, has already success- Management network. The INEA funding as the support of SDAG. The joint application fully implemented its part of the project part of this joint project has expedited the aims at improving the efficiency of airside last summer. “This unique partnership has implementation of this and other PCP man- operations through real-time informa- allowed the 4th biggest UK airport, which dated projects here at Stansted” (Monika tion sharing. It sees the involvement of 13 is now at record passenger numbers and Simonaityte, Stansted Airport). airport operators, 2 ANSPs and 1 Airspace continuing to grow, to introduce vehicle These two experiences are a clear proof User with an indicative budget of €90m of transponders within the airside environment, that airport operators are currently leading investment. The proposal currently has the which are part of a suite of safety-focused the way in terms of presenting joint applica- endorsement of the involved Member States Pilot Common Project (PCP) deployments. tions. What it also shows is that they are and will be submitted for the Innovation and The objective of the project was to equip supporting the coordinated and synchro- Networks Executive Agency (INEA)’s evalua- airside vehicles that have access to the run- nised execution of their implementation tion at the beginning of April 2018. way and operate in the manoeuvring area of projects to enhance the ATM modernisa- tion, thus complying with the obligations stemming from the Pilot Common Project Regulation. However, since CEF initiatives “Enablers for Airport Surface Movement related to Safety Net” is already being do not always fully correspond to different executed. In particular, Stansted Airport, airports’ needs, SDAG’s priority for the next one of the project contributors, has months is to explore other forms of funding already successfully implemented its part of the project last summer. (mainly on the basis of the investment plans) and to better understand airports’ needs, in order to foster alignment with the policy plans of the European Commission. Let SDAG know what your airport’s plans and needs are for the next years (in terms of investments, innovations, etc.) so that SDAG can explore the possibilities of different funding initiatives. SDAG is open to questions for clarification and potential investigation. You can visit the SDAG website (www.aci-europe.org/sdag. html) and contact SDAG on the following email addresses: barbora.smolikova@airport- grouping.org and [email protected].

18 Airport Business Spring 2018 T E N Y E A R S OF TERMINAL 5

60,000 people were 283 million passengers involved in the making have travelled through

969 thousand 140 destinations across flights departed 55 countries to fly to

Figures provided include forecasts until the end of March 2018 SESAR

Taking a fresh look at airport operations

Encouraging new ideas and fresh thinking is critical for innovation in aviation in order to respond to the growing demand for air travel and to the increasing number of air vehicles taking to the skies, including drones. That is why the SESAR Joint Undertaking supports exploratory research and has created an innovation pipeline in its research programme that transforms innovative ideas into solutions to increase the performance of air traffic management (ATM). This article provides a sample of just some of these innovative projects. By Florian Guillermet

irports are important nodes in Service Provision” or RETINA project are Partners in the “Embodied reMOte Tower” the European ATM system and showing the promise that augmented reality or MOTO project are using various sensory therefore critical to increasing holds for enhancing air traffic control opera- techniques to introduce auditory and Aperformance. It is for this reason tions, particularly in low-visibility conditions. vibro-tactile stimuli into the remote towered that many of the SESAR exploratory research Using synthetic vision and augmented environment. Partners are measuring the projects are addressing aspects of airport reality technologies, RETINA has developed impact of these stimuli on air traffic controllers, operations, from improving information a set of goggles through which controllers in terms of situational awareness, a sense of exchange and decision-making, to enhancing can see synthetic information overlaid on presence and performance. The aim then is air traffic control and meteorological fore- the actual “out-of-the-window” view. With to develop augmented reality solutions that casting. Blending academic and industrial these goggles, the controller can have a incorporate these stimuli to help controllers know-how from across Europe, the projects heads-up view of the airport traffic, call sign become fully immersed in the remote tower aim to take a fresh look at challenges facing and aircraft type, supplemented by additional environment, enhancing their ability to manage ATM and airports, relying on advances in information, such as wind velocity and traffic safely and efficiently. technologies such as augmented and virtual direction, airport layout and runway status, reality, data analytics, automation techniques, even during low-visibility procedures. Taking control of airport complexity economic assessments of changing business Airports are complex places, especially models, as well as exploring other disciplines A fully immersive airport when it comes to managing the movements for inspiration. tower experience of aircraft and a myriad of service vehicles. Europe is seeing a growth in the number It is not surprising then that SESAR members Keeping an augmented eye of remote control tower deployment projects and partners have invested significant effort on air traffic control in recent years. With advances in camera, to research, develop and deliver a first set Controllers in airport towers rely on being sensor and infrared technology, controllers of automated tools to support controllers able to see aircraft taxiing, taking off and are given a realistic “out-of-the-window” in managing airport surface movements. landing in order to manage them safely and view of the remotely-located airport allowing Now partners in the “Take Control” or TaCo efficiently. But when bad weather sets in, their remote provision of all tower services. SESAR project are taking a fresh look at the challenge visual situational awareness can be impaired, researchers are now investigating how to of complex surface operations especially in leading to a reduction in throughput. The make this virtual experience even more non-nominal conditions by exploring automa- results from the “Resilient Synthetic Vision immersive by exploiting controllers’ senses tion in other disciplines, such as robotics and for Advanced Control Tower Air Navigation in addition to their visual sight. gaming. Like air traffic control tools, video games such as real-time strategy games, use highly interactive graphics to enable gamers to manage the course of the game. With these insights, TaCo partners have developed a prototype with highly automated functions for guiding the controllers towards an optimised management of the movements of airport vehicles and aircraft: for example, it supports them in maximising the usage of the runway, minimising the global fuel consumption, or supervising the system. Moreover, it allows controllers to define the behaviour of specific parts of the airport through innovative user-programming techniques.

Seeing the bigger picture Big data is becoming a big deal for air- ports, as it is increasingly used to better analyse market demand, optimise security control and customise the passenger expe- rience. The use of big data analytics is now

Copyright: Shutterstock – Melanie Braun Shutterstock Copyright: 20 Airport Business Spring 2018 SESAR

being put to work to better understand how passenger behaviour can impact air traffic management. Research in these areas has so far been constrained by the limited avail- ability of behavioural data, typically obtained from static demographic and economic datasets, often consisting of very small samples, and usually complemented with assumptions about behaviour. Thanks to the growth of smart devices and interconnected services, researchers now have large-scale, detailed longitudinal (dynamic) data allowing them to test hypotheses about passenger behaviour. Partners from the BigData4ATM project are investigating how different passenger-centric geo-located data can be analysed and com- bined with more traditional demographic, economic and air transport data to identify patterns in passenger behaviour, door-to-door Partners in the “Embodied reMOte Tower” or MOTO project are using various sensory techniques travel times, and choices of travel mode. The to introduce auditory and vibro-tactile stimuli into the remote towered environment. project is also exploring applications of this data and how it could be used to inform ATM to a reduction in charges by up to half the Weather for Airports” or PNOWWA project decision-making processes. current levels. It also showed that open are turning to nowcasting, very short-term tendering is likely to lead to a defragmentation (0-3h) probabilistic winter weather forecasts An appetite to compete of the system as companies tend to win with a 15-minute-time resolution. Europe is a patchwork of markets in ATM more than one tender. The results suggest Focusing on snow, the partners extrapolated service provision. The question is, which that with these options a maximum market weather movements based on radar echoes market structure is most favourable to share of 40% can ensure sufficient competition. and predictability of changes in snowfall increasing the performance of ATM, including The final conclusion of the project is that intensity caused by underlying terrain (such at airports? The answer is a complex one competition of this nature will determine as mountains and seas). Within these now- that partners in the “Competition for Air the uptake of new technologies and enable casts, the projects provided information Traffic Management” or COMPAIR project a high performing ATM system. on the probability of a wide range of events, are seeking to address. Partners in the project such as runways freezing over or decreased looked at a number of options that could Weathering the weather visibility. Over the course of the winter of increase competition, including performance at airports 2017, the project partners demonstrated regulation with variations in ownership and Adverse weather conditions can play their model in Austria and Finland, allowing governance models, tender of licenses for havoc with airport operations, limiting them to gather airport feedback on the en-route air traffic services, and flight-centric, or putting a stop to aircraft movements, applicability of the model and its scalability sector-less operations. The project also ana- runway maintenance, de-icing, tower control to other airports. lysed the effects of unbundling the terminal and even luggage handling. Having accurate control in Sweden, UK, Spain and Germany meteorological data and forecasts means More information about the projects: (at mostly regional airports). that airport operators can prepare for the The models applied by the project suggest worst in advance. But weather can change RETINA: http://www.retina-atm.eu/ that introducing competition in the market in a matter of hours. That’s why partners MOTO: http://www.moto-project.eu/ via outsourcing service provision may lead in the “Probabilistic Nowcasting of Winter TaCo: http://www.tacoproject.eu/ BigData4ATM: https://www.bigdata4atm.eu/ COMPAIR: http://www.compair-project.eu/ PNOWWA: http://pnowwa.fmi.fi SESAR: http://www.sesarju.eu/

The SESAR exploratory research projects are funded within the framework of the EU’s Horizon 2020 research and innovation programme.

The results from the “Resilient Synthetic Vision for Advanced Control Tower Air Navigation Service Provision” or RETINA project are showing the promise that augmented reality holds for enhancing air traffic control operations, particularly in low-visibility conditions.

Spring 2018 Airport Business 21 ACI EUROPE NEW YEAR RECEPTION

ACI EUROPE hosts its Annual New Year Reception in the European Parliament

s is customary in the beginning of each year, ACI EUROPE holds its New Year’s Reception in the European Parliament in Brussels. A Wim van de Camp, MEP; This year’s event on 23 January was kindly Dr. Michael Kerkloh, hosted by MEPs Gabriele Preuß (Group of President, ACI EUROPE and the Progressive Alliance of Socialists and President & CEO Munich Democrats) & Wim van de Camp (Group of Airport; Gabriele Preuß, MEP; and Olivier Jankovec, the European People’s Party) – both of them Director General, ACI members of the Committee on Transport & EUROPE. Tourism of the European Parliament. In front of over 170 representatives from the EU institutions and the aviation industry, the President of ACI EUROPE and CEO of Munich Airport, Dr. Michael Kerkloh, stressed ACI EUROPE’s support for more Open Skies agreements and more investment in airport capacity. On the impact of Brexit, he called for the most liberal aviation regime between the UK and the EU to safeguard air connectivity. He also underlined that Stephan Widrig, CEO Zurich Airport; Catherine the new market dynamics reflected in the Mayer, Vice-President increasing airport competition should be SITA; and Dr. Stefan at the core of the European Commission’s Schulte, CEO Fraport AG. evaluation of the Airport Charges Directive.

Angela Gittens, Director General, ACI World; Jos A. Nijhuis, President & CEO, Royal Schiphol Group; and Filip Cornelis, Acting Director & Head of Unit for Aviation Policy DG MOVE, European Commission.

Dr. Michael Kerkloh, President ACI EUROPE & President and CEO Munich Airport.

Niall MacCarthy, CEO Cork Airport; Deirdre Clune MEP; and Dalton Philips, CEO daa.

22 Airport Business Spring 2018 ACI Europe 297x210.pdf 1 3/1/18 1:32 PM

C

M

Y

CM

MY

CY

CMY

K TURKISH AIRPORTS

Turkey’s airports return to spectacular growth

A discussion with DHMI General Manager and Chair, Funda Ocak. Interview by Paul Hogan

unda Ocak was appointed the DHMI Director General in October 2016, the very first woman to hold the Fpost (although it was noticeable that Ocak did not once refer to gender as an issue during our entire interview). Ocak’s promotion to the top job of the 55-strong state airports group (and controller of 1 mil- lion square kilometres of airspace) crowns a 35-year career with DHMI, including service as Deputy DG and a member of the board since 2007. Her complete familiarity with Turkey’s airports industry, and a long career marked by “many different periods and many changes” gave a significant advantage in preparing Ocak for taking command at the time of the greatest uncertainty since Turkey became a major global aviation player.

“Focusing our dreams on a global future” However, after the multiple shocks of Touring the new airport: Funda Ocak, General Manager and Chair, DHMI; Ahmet Arslan, Turkish Minister of Transport, Maritime Affairs and Communication; and Yusuf Akçayoğlu, CEO İGA 2016 (commonly referred to as the ‘missing Airports Construction. Ocak: “Progress of construction is very pleasing, and achieving this in year’), 2017 saw a solid return to stability, the just 42 months is something which will put us in the book of Guinness World Records.” return of tourists, and the return of transfer passengers over Istanbul Atatürk. action. Now, in 2018, we are predicting that and DHMI is at the core of this sector. The resulting 11% growth in Turkey last we will maintain these improvements, and After her appointment to duty, Ocak year produced 193 million passengers at traffic will exceed 210 million passengers.” stated that DHMI management has under- DHMI airports – a new best-ever year for Ocak, believes the growth trend in aviation gone reconstruction. One of her main Turkey (and making it Europe’s 5th biggest is linked to Turkey being a global aviation objectives is to update the current structure air transport country, just behind France). connecting centre and a transit hub, also the and to adapt to the needs of the day. “We “The new growth is very joyful for us,” says growth in economics is linked with the avia- have taken important steps in marketing Ocak. “2017 was the year of rehabilitation – tion sector and is acting as the main dynamo, our experience on the international market, the changes of the last two years have been very rapid, but equally DHMI has proved that we are very fast at adjusting and taking

Turkey’s airports have certainly bounced back, with traffic up 11% in 2017, the “missing year” of 2016 produced overall declines of 4.4%, although that was felt far more at some airports than others – Antalya, once Turkey’s second-biggest airport, was heavily exposed to a Russian boycott, with the result that traffic was halved.

The top Turkish airports in 2017 Istanbul Atatürk up 6% to 63.73m Istanbul Sabiha Gökçen up 6.1% to 31.39m Antalya up 38% to 25.93m Ankara up 22% to 15.85m

Izmir up 7.3% to 12.82m DHMI statistics) (Source:

24 Airport Business Spring 2018 TURKISH AIRPORTS

customer service, press relations are re- million passenger facility, and achieving this to buy a stake in the airport in 2014). audited, DHMI has a great PPP experience, in just 42 months is something which will put (Meanwhile, TAV is buying the IC İçtaş 49% we have gathered the disorganised struc- us in the book of Guinness World Records.” stake in ICF Antalya, the joint-venture that ture within this institution.” As the plans continue to emerge as manages Antalya Airport, now the third In office, Ocak has already overhauled to how the move to the new hub will be largest in Turkey with just under 26 million many aspects of DHMI’s large adminis- achieved in October, Ocak asserts that DHMI passengers last year). tration: “One of my first main aims was to is ultimately in charge of the transfer pro- Elsewhere across Turkey DHMI directly update the department structures and their cess and holds chairmanship of the 12 sub operates 49 out of the 55 airports under its day-to-day responsibilities – especially committees, including the involvement of ownership. Most of these are vital regional outward-looking departments such as cus- 100 stakeholders, that have been formed to airports serving “all Turkey” – both resorts tomer services and press relations. DHMI organise the switch-over. and regional business centres. Under Ocak also has a huge experience of PPP, so we “Once Istanbul New Airport starts its ser- DHMI will continue to develop airports across have taken steps to cluster these skills in a vices it will become the intercontinental hub Turkey, including this year’s opening of new department specialising in privatisation between North and South from the Far East Çukurova Regional Airport near Adana which as our PPP path to airport development is to Europe. With this mega project, Turkey Ocak describes as “the other important new likely to be driven further as DHMI airports takes a giant step forward towards its goal Turkish airport”. Ocak goes as far as to call continue to grow.” to become a global brand.” Çukurova “a promising candidate to become During the most difficult times of 2016 Meanwhile, besides the new global mega- the greatest dynamo after the highly devel- Ocak maintains that, besides taking meas- hub, Ocak continues to lead DHMI with 55 oping Istanbul/Izmit Kocaeli region. Indeed, ures to preserve the stability of its own active airports in a widespread airport network all DHMI airports – whether global or hub, operations: “As DHMI, we have implemented system. Istanbul Sabiha Gökçen International or regional – all combine to serve our global significant incentives through tariffs to help Airport, which contrasts with Atatürk through ambitions for the Turkish brand.” private partners in the aviation sector. For its dominance by low cost carriers and its our future, we focused on our dreams.” Anatolian (Asian) catchment area (and has also Part of this future is what Ocak describes as seen a big resurgence in its appeal to long “our dreams for globalising – we have previ- haul carriers) rocketed forward by 6% in 2017 ously discussed exporting our talents as a to reach a total of 31.4 million. A new second global airports leader, we have a vast capabil- runway will open at ‘Sabiha’ in 2019, although ity and know-how, and we have many areas renovation of the existing runway means that where we want to work in the international it will not fully become a two-parallel runway theatre.” While Ocak agrees DHMI would need system until 2021. After the second runway is to achieve a change in its statutes to perform completed, Ocak says “a second terminal at international business outside of Turkey she Sabiha Gökçen will be considered.” says: “We have made all the changes neces- Since the Malaysian Airport operator, sary for the conditions for this to happen.” the main partner of the company operat- Ocak thinks one of the key areas ripe for ing the Sabiha Gökçen Airport Terminal, export is the potential to act as a PPP adviser. has claimed that some of its own fran- “We have all the abilities and considerable chise rights will soon be sold to the main commercial expertise in developing 18 Turkish partner of the company, Ocak agrees that airports under the PPP model which we would this is very likely to be of interest to TAV DHMI General Manager and Chair, Funda Ocak, interviewed by Paul be able offer in an advisory role to overseas Airports after Istanbul Atatürk closes to Hogan at DHMI HQ, Ankara. airports and privatising governments.” commercial traffic (TAV originally offered

Istanbul New Airport – a Guinness World Record? However, this year, DHMI’s attention remains much closer to home, focused on the opening of Istanbul New Airport on 29 October. “Progress of construction is very pleasing, there have been no interruptions to the day and night building of this 90

Turkish Airlines traffic growth stuttered in 2016, but rebounded with 9.3% in 2017, much nearer to the double-digits+ that it has historically enjoyed for most of the century with 9.3% in 2017. 2018 already looks better still. In January carryings were up 36% more than the same month of 2017. Not only that, but international-to-international connecting traffic in January was up 25%, a lot higher than the 3.5% growth

rate seen in all of 2017 for this sector. Airlines) Turkish (Source:

Spring 2018 Airport Business 25 TURKISH AIRPORTS

“What we have done would have taken 10+ years in any other part of the world”

A discussion with Yusuf Akçayoğlu, CEO of İGA Airports Construction. Interview by Paul Hogan

t’s really happening – Airport Business has been on site and we have seen for ourselves. The target is unwavering: IThe €10.3 billion Istanbul New Airport – Istanbul right now the fourth-biggest transfer hub in Europe (after Frankfurt and before Amsterdam) – will begin commercial operations on 29 October this year – Turkish National Day. Upon completion of all phases, Istanbul New Airport is going to be one of the major hubs across a very large geo- graphic area. A construction task of this magnitude has never been attempted or achieved in the airports world before, says Yusuf Akçayoğlu, CEO İGA Airports Construction: “It’s unprec- edented. But since day one this has been a very, very fast-build project. Some of our activities will continue until the last day of construction… and of course will also con- tinue on after that with the next planned phases.” (Phase 1a includes the terminal and two runways and spans 42 months, Phase 1b, including a third runway will be com- pleted at 58 months.) projects, including building major airports: “The project [as of February] is over 80% Leading İGA partners previously built (and Yusuf Akçayoğlu, CEO İGA Airports complete and, despite some of the prob- operated) Istanbul’s 31 million-throughput Construction: “The last 10% takes time, the lems of land preparation, it is more-or-less Sabiha Gökçen Airport – where joint venture final 5% is then the snags, and that also takes time, but it will not affect operations. on budget.” partners are right now also simultaneously 95% completion is the target – what we have The five construction partners are highly building a second runway opening in 2019. done in 3.5 years would have taken 10-15 skilled in big, even mega, construction Joint venture partners also lead a significant years in any other part of the world.”

Phase 1a includes the terminal and two runways and spans 42 months, Phase 1b, including a third runway will be completed at 58 months. Construction of the first 3,750m runway is complete.

26 Airport Business Spring 2018 TURKISH AIRPORTS

A construction task of this magnitude has never been attempted or achieved in the airports world before, says Yusuf Akçayoğlu, CEO İGA Airports Construction: “It’s unprecedented. But since day one this has been a very, very fast-build project. Some of our activities will continue until the last day of construction… and of course will also continue on after that with the next planned phases.”

Only after all these monumental efforts could İGA start to place a terminal building onto this platform. Despite the requirement for entirely different skillsets, Akçayoğlu then effortlessly switches from discussing number of on-going airport construction Although this foreign labour content may ultra-heavy construction to the finer points projects in the Middle East and Africa – be much less than on comparable con- of the experiential innovations which are including the new $4 billion air terminal struction projects in Europe or the Middle currently being fitted out throughout the in Kuwait. East, the import of manpower on this scale terminal. “The operational philosophy of the But while airports are not new to İGA, is a first for Turkey, and marks another big terminal is ‘maximum comfort at minimum Akçayoğlu says that some quite differ- change in an economy that is normally a wait time’. There are 10,000 sensors and ent fast-build strategies have needed to net exporter of labour. “We have welcomed beacons, and we are utilising IoT and smart be perfected and used for the first time at many new nationalities to the workforce, systems across all devices, programs and Istanbul New Airport: “The critical path for including Vietnamese, Uzbeks, Pakistani, apps. The belief is that we should enable the 42km baggage handling system was Nepalese and Turkmen, it is a radical the traveller to proceed as far as desirable done first – we didn’t wait for the roof to be shift and was never expected,” observes without any human contact during Home- topped out – in fact the BHS is very much Akçayoğlu. to-Gate processing.” ahead of schedule, and therefore the termi- Indeed, significant labour-intensive efforts Great efforts have been made to avoid nal completion is very advanced in terms of were required during ground preparation disruption to this potentially idyllic journey – its most complex systems. Furthermore, the for which Akçayoğlu says: “We have had to for instance potential bottlenecks in security BHS is not just completed, but it will achieve develop enormous resources – large por- are literally being tackled head-on with the the levels of efficiency which are absolutely tions of the new airport are built on ‘brown “most sophisticated security systems in essential to this transfer hub: lost luggage field’ mines dating from the 1940s-60s; we the world” including constantly-monitored will be almost zero.” could not easily predict the conditions of facial recognition. This has been heavily In an aside, Akçayoğlu explains that the these old works, and the ground conditions tested in the İGA offices where every arriving new BHS will include a Robotic Bag Store for have been very challenging because of the construction worker is personally ‘greeted’ up to 16,000 bags. With this capability İGA’s sheer size. We have had to remove huge by their own scanned image and verified infrastructure enables very important com- amounts of mud, and use just about every identity. mercial opportunities which have become known available method of preparation – Now over 80% complete, and with some central to the transfer proposition over rockfill, columns, dynamic compaction etc. hard-won achievements behind him, Istanbul, especially for travellers with longer All the material was loose, we had to remove Akçayoğlu knows the final phase is going transfer times. For instance, Turkish Airlines’ that to reach the original soil, and then go to throw up new challenges of its own: “The has a specific “Touristanbul” transit product back yet again before we could start back, last 10% takes time, the final 5% is then the which offers organised and controlled tours. all the time filling to get the bearing com- snags, and that also takes time, but it will not As the airport’s dominant user, Turkish pacted and reach platform levels – in some affect operations. 95% completion is the tar- Airlines has many of its own third party places there are 65 metres of backfill – it is get – what we have done in 3.5 years would technical and operational construction an understatement to say that it was more have taken 10-15 years in any other part of projects at Istanbul New Airport, including difficult than expected!” the world.” its new HQ. “There are 128 critical buildings other than the terminal, and 6,700 rooms including technical rooms – can you imag- ine such a hospital?!” remarks Akçayoğlu. “Turkish Airlines are our biggest customer, so we are working closely with them to make sure they have what they need for the new hub, we value all their requests very much, while not forgetting that our primary client is DHMI.” As construction moves on at a frenetic pace up to 36,000 people are working on the site, including 2,300 expatriate workers. İGA interview by Paul Hogan on location Istanbul New Airport construction site

Spring 2018 Airport Business 27 TURKISH AIRPORTS

® TAV buys IC İçtaş shares in Antalya Airport

7 February 2018: TAV As the second largest airport Airports has bought IC in Turkey in terms of interna- İçtaş 49% stake in ICF tional traffic, Antalya Airport 2Antalya, the Fraport- further underlines our commit- involved joint-venture that ment to investing in our home manages Antalya Airport. The country, and to the Turkish move takes the TAV portfolio aviation market.” to 18 airports serving over 140 million passengers – Antalya Malaysians to sell Airport handled more than 26 Sabiha Gökçen portion? million passengers in 2017, a 38% Meanwhile, Malaysia Airports improvement. Although subject Holdings continues to offer the to DHMI approval, the agree- prospect that it will soon sell ment will give TAV co-control of a portion of its wholly-owned the company and 50% dividend concession to operate the 31 rights. Fraport has been involved million-throughput Istanbul in operating Antalya Airport since Sabiha Gökçen Airport. This is 1999. In 2007, an expanded known to be of great inter- Fraport-IC İçtaş partnership won est to TAV Airports to replace the tender to operate the airport its Istanbul presence when until December 2024. Atatürk closes to commercial TAV Airports President and traffic after October. TAV origi- CEO Sani Şener said: “We nally offered to buy Limak’s will be happy to partner with stake in Sabiha Gökçen Airport Fraport in Antalya, one of the in 2014, although in that most prominent tourism des- instance the Malaysians acti- tinations in the Mediterranean. vated a right-to-buy option.

TAV Airports President and CEO Sani Şener: “With our extensive know-how, we aim to work towards strengthening Antalya’s true potential. Meanwhile, we’ll continue looking for opportunities on a global scale and growing in the airport management industry.”

RIT_ABM_Sakura_Slowdown_92x270_V1HRLC.indd 1 12-02-18 13:52 AIRPORT COMMERCIAL & RETAIL

It was announced last August that the James Richardson partner with the appropriate expertise to make its business even more successful. Heinemann Joint Venture had been awarded the liquor, Stock explains that Israeli travellers are tobacco, perfumes & cosmetics, and confectionery (LTPCC) used to, and expect, surprises. “In the last 12 months, they have been exposed to contract at Ben Gurion International Airport’s T1 and a new pre-order system, a restructured T3. Garry Stock, Duty Free Chairman, James Richardson, Loyalty Club, an expanded digital experience, and Raoul Spanger, Member of the Executive Board, and surprise in-store promotions on different days of the week,” he says. Heinemann, spoke to Ross Falconer. James Richardson also plans to intro- duce some surprising retail experiences as part of the refurbishment of its three existing concourse shops and the new shop in Concourse E, and is reviewing James Richardson opportunities to refurbish significant parts of the ‘Super Shop’ to further streamline the customer experience. Heinemann Joint Venture Meanwhile, the James Richardson Heinemann Joint Venture will see an upgraded look and feel to the customer creating enhanced shopping experience, which Spanger describes as “full of inspiration, with personal inte- experience at Ben Gurion grated communication, aiming to reach the customer with personalised offers”. JR/Duty Free also operates at border crossings in Israel and has been awarded the contract for the new Ramon International ith 30 years’ experience management, there will be opportunities Airport, opening later this year. Stock and in Israel, no-one knows the to even further widen this assortment. The Spanger explain that, while the Joint Venture Israeli travelling consumer Joint Venture will also be able to draw upon is currently focused on the duty free shops W better than James Richardson the world-class supply chain that Heinemann in Tel Aviv, it will progressively address other Duty Free. Garry Stock, Duty Free Chairman, is well-known for, to support the high unit opportunities in Israel. “Only by working closely James Richardson, will share his experiences volume of transactions in the business.” together can we grow the business available in this dynamic environment during the 27th Indeed, the partnership seems a natural in Israel successfully,” they conclude. ACI EUROPE Airport Commercial & Retail fit, with both Heinemann and James Conference & Exhibition, hosted by Israel Richardson being substantial family- Airports Authority in Tel Aviv. owned businesses in travel retail. The James Richardson “The past 30 years have seen much more “The fact that Heinemann bid for the Heinemann Joint Venture dramatic change in the world economy and LTPCC contract in 2013 showed we had has been awarded the in the retail environment than in the first 40 a serious interest in Israel, and believed liquor, tobacco, perfumes & years of the 70-year-old duty free industry. cosmetics, and confectionery we could meet the expectations of customers (LTPCC) contract at Ben I will be emphasising the rapidly-changing and the airport. This is something that Gurion International demands on the duty free sector and how James Richardson valued greatly – they did Airport’s T1 and T3. it must adapt to flourish,” Stock explains. “The not take it for granted,” Spanger comments. Israeli travelling consumer loves deals, excite- From James Richardson’s perspective, it ment, innovation and exclusivity combined was looking for a skilled and highly-capable with super-attentive service. So, the retail offer needs to be continually refreshed and the ‘buzz’ of the shopping experience maintained.” It was announced last August that the James Richardson Heinemann Joint Venture has been awarded the liquor, tobacco, perfumes & cosmetics, and con- fectionery (LTPCC) contract at both the T3 and T1 terminals at Ben Gurion International Airport. The objective is to deliver even better value and an enhanced shopping experience. “James Richardson has a great and long-lasting cooperation with Ben Gurion International Airport, which is the key for suc- cess in developing the business,” says Raoul Spanger, Member of the Executive Board, Heinemann. “James Richardson is already known for its wide assortment. However, with the Heinemann global network of category

Spring 2018 Airport Business 29 AIRPORT COMMERCIAL & RETAIL

Neil Ebbutt, Director Global Travel Retail, Rituals Cosmetics, interviewed by Marta Dimitrova. Rituals “creating opportunities for experiential engagement with customers”

he general move towards products range of products, but it also helps the com- that offer an experiential dimension, pany bring its core message to life especially among millennials, is a by creating opportunities for experiential Ttrend that is increasingly influencing engagement with customers, such as spa customer expectations of the travel retail offer. services in 15 mins and water basins that allow Rituals, the home & body cosmetics customers to try the products before buying. brand, that turns everyday routines into In terms of Rituals’ shop in shop units more meaningful rituals, has recognised inside the airport retailer’s main duty and Neil Ebbutt, Director Global Travel Retail, Rituals Cosmetics: “There is no the potential of travel retail as a platform for tax free stores, the company relies on great doubt that standalone speciality retail innovation and as a highly effective shop merchandising and display design and stores are exceptional business drivers window to fast forward international status collaboration in promotional activity with and really gives us the opportunity and awareness. “We have always set out activations such as pop up promotional sites. to present the brand in the best light with the full assortment and excellent to create innovative products that deliver The company also organises special promo- service, which the Rituals customers a unique and authentic user experience,” tions to attract customers. For instance, the have become accustomed to.” comments Neil Ebbutt, Director Global brand recently ran a “podium” secondary site Travel Retail, Rituals Cosmetics. “In our promoting the Rituals limited edition range, to build on its standalone portfolio, which case, that is the promise of a unique experi- Anahata, in Oslo, Terminal 2, Departures East. will create more opportunities for innovation ence based on ancient eastern traditions Ebbutt adds: “And of course, nothing and experiential engagement with customers. that transform everyday routines into more is more important than well-trained and “Consumers in airport travel retail also meaningful rituals. So, in product terms motivated store staff with a real knowledge have so much more now to distract them Rituals is ideally positioned to meet and passion for our products and an ability from shopping especially the increasingly that trend.” to communicate that passion with enthusiasm attractive food & beverage offers and the Rituals’ ambition is to build a global and conviction. We added a dedicated TR growing availability of free WiFi for their own lifestyle brand and its distribution strategy (travel retail) trainer to the expanding TR digital devices. We can no longer just expect covers direct retail, wholesale, online and team at the start of this year which is greatly them to drop in to kill time and perhaps travel retail. In 2017, the brand’s travel retail appreciated by our partners’ store teams.” buy. They have to believe that there is a business grew by over 52% with sales Looking ahead, Rituals is determined richer experience for them in store and that in airport standalone stores contributing is where we want to work with retailers to significantly to that performance. The extra space provided by a deliver more than just great merchandising Currently, Rituals has four standalone standalone airport shop gives Rituals of great products,” Ebbutt concludes. stores in Amsterdam Schiphol, as well an opportunity not only to offer airport passengers a wider range of products, as stores in Arlanda, Vienna, Eindhoven, but it also helps the company bring Zurich, Luton and Munich airports. its core message to life by creating “Individual performances have been opportunities for experiential engagement with customers. excellent,” enthuses Ebbutt. “For example, the Schiphol Schengen store is up 15% year on year, the Zurich landside store is up 20% over 2016 and the Stansted store is up 13% year on year. These like for like increases are well ahead of the percentages of pas- senger growth or the growth of travel retail generally. There is no doubt that standalone speciality retail stores are exceptional business drivers and really gives us the opportunity to present the brand in the best light with the full assortment and excellent service which the Rituals customers have become accustomed to.” Indeed, the extra space provided by a stan- dalone airport shop, is of great advantage. For Rituals, this gives it an opportunity not only to offer airport passengers a very much wider

30 Airport Business Spring 2018 WELCOME YOU TO TEL-AVIV AIRPORT COMMERCIAL & RETAIL

Stephan Uhrenbacher, CEO and founder, FLIO, speaks to Marta Dimitrova ahead of his participation in this year’s ACI EUROPE Airport Commercial & Retail Conference.

A digital marketplace: Using personalised, geo-relevant marketing to drive footfall and revenue

aunched just three years ago, global up to 40%. During this year’s ACI EUROPE with key retailers, food & beverage outlets airport app FLIO now has half a mil- Airport Commercial & Retail Conference, and passenger service providers. “After all, lion customers who have installed Uhrenbacher will take part in the ‘Innovation why would I install an app when I’m transfer- Lthe app on their phones, and its Masterclass’, where he will discuss the ring at an airport,” says Uhrenbacher. “So, while monthly users are now approaching 100,000 measurable results of campaigns with major Schiphol is keeping its own app for transac- people who use the app about 300,000 brands including Estée Lauder, Mondelez, tions, it has embraced FLIO as a means to times per month. “We believe we are the Pernod Ricard, Rituals, Hugo Boss and communicate to arriving passengers. At the most used digital product at airports right L’Oréal. “In food & beverage we currently same time Schiphol profits from mobile adver- now and are growing at super-fast pace,” have a full feedback loop as the POS (point tising with FLIO. Recently, ABN Amro Bank enthuses Stephan Uhrenbacher, CEO and of sale) terminals can track the efficiency of became a FLIO customer at Schiphol.” founder, FLIO. FLIO vouchers. Here we had several cases FLIO also caters for smaller and regional Indeed, it is claimed that the FLIO user of the average purchase value for F&B airports by aiming to offer the best app increases average transaction values by partners increasing dramatically above the experience at the lowest cost possible. discounts offered. The travel brands which “Even tasks like integrating booking of park- are consistent advertisers with us are used ing or selling fast-track within the app, we Launched just three years ago, global to getting good rates on their digital ads, can now build on within days for regional airport app FLIO now has half a million customers who have installed the app on driven by their strong brands. As FLIO is airports. So, Bremen Airport in Germany with their phones, and its monthly users are now exclusively targeting shoppers while they two million passengers is one of the most approaching 100,000 people who use the app are in an airport situation, our advertisers digital airports in the world today, about 300,000 times per month. were surprised to see click rates on FLIO offering F&B vouchers, mobile booking for being consistently more than four times, parking, and mobile lounge access.” sometimes eight times higher than in their Looking ahead, Uhrenbacher concludes: tradition digital media.” “A glimpse of the future can be seen in the He continues: “So the contextual situation easyJet app, where FLIO is providing of being in an airport and then being served airport information and commercial offers. an ad for a product that customers will typi- We will be distributing FLIO content and cally buy at the airport is a strong factor. We offers into any partner and channel where are currently working with retail operators to passengers need to see it.” connect to their POS to be able to measure the effect of FLIO ads at the till.” Today, FLIO works with more than 100 air- ports in Europe, and its portfolio is growing rapidly, as the app is designed to fit any airport around the world. “We actively work with Amsterdam Schiphol, Athens International, Bremen, Budapest, Cologne Bonn, Hamburg and Vilnius and are cur- rently launching about two new airports per month. Also, Eurotrade at Munich Airport is working with us.” Typically, larger airports have often more than five years’ experience with running their mobile apps and keeping them up-to-date. While these airports often have a loyal fol- lowing among their local passengers, usage numbers for visiting passengers are low. FLIO has realised the potential to fill this gap and with its app creates a platform for those passengers who are only passing through an Stephan Uhrenbacher, CEO and founder, airport, but want to receive easy access to FLIO: “We believe we are the most used digital product at airports right now and free WiFi, arrivals and departure information, are growing at super-fast pace.” insider tips and exclusive offers and discounts

32 Airport Business Spring 2018 20180209_ATG_B2B_216x303_Spazio.indd 1 09/02/18 15:06 ISRAEL AIRPORTS AUTHORITY

ive years ago, the Open Skies policy opened new horizons for Israel Airports Authority tourism in Israel. The competition F between airlines reduced airfares, therefore making Israel an attractive des- transforming Israel’s tination for tourists and Israeli passengers. Placed in the centre of three religions – Judaism, Christianity, and Islam – Israel international presence offers a sense of spirituality and diverse culture with main attractions including the holy city of Jerusalem, mineral-rich mud from the Dead Sea, the Galilee, and the Israel Airports Authority is the host of this year’s ACI EUROPE beautiful coastline and culinary abun- Airport Commercial & Retail Conference & Exhibition. dance of Tel Aviv. Israel Airports Authority (IAA) is Eliezer Marum, Chairman of the Board of Directors, and an active member of ACI EUROPE Yoram Shapira, Deputy Director General Department of and is hosting this year’s ACI Commerce and Business Development, Israel Airports EUROPE Airport Commercial & Retail Conference & Exhibition. Authority, brief Marta Dimitrova on the growth in “We are excited to host this highly international traffic since the implementation of the Open Skies valued conference in Tel Aviv. It will enable us to present the recent develop- policy, as well as the potential of the new Eilat Ilan and Assaf ments and the changes implemented to Ramon International Airport to strengthen the economy. meet the challenges facing our indus- try,” enthuses Eliezer Marum, Chairman of the Board of Directors, Israel Airports Authority. routes from Wizz Air, Ryanair, LOT Polish other economic variables all influencing and more. The traffic forecast for 2018 is customer behaviour, such as regulatory 18.3% passenger growth in 2017 expected to pass 23 million passengers, changes (tax decrease, customs bounda- The Open Skies agreement, indeed, flying with over 140 airlines to 200 desti- ries, Ministry of Health restrictions, for brought a surge of international traf- nations worldwide. instance cigarettes) and changes in the fic for Israel’s main airport Ben Gurion This rapid growth in passenger numbers local retail market including e-commerce.” International Airport. “The 50% growth has resulted in a major change in the air- In order to meet the challenges created over the last five years has been port’s commercial activity. Yoram Shapira, by these changing trends, IAA is shifting beyond our forecast for international Deputy Director General Department of its focus from more traditional commer- traffic,” says Marum. Commerce and Business Development, cial operations to develop new areas of 2017 was a record-breaking year when who is speaking in the ACI EUROPE revenue and strengthening its present the airport marked 18.3% growth on 2016, Airport Commercial & Retail Conference, commercial areas. welcoming over 20 million passengers comments: “The commercial activity “We constantly analyse the new con- and 12 new airlines which started opera- at Ben Gurion Airport is set according sumer characteristics and provide the tions from the airport, including WOW to rising international passenger fig- proper response to passengers’ needs air, Cobalt, Cyprus Airways, and new ures, the change in passenger mix, and and expectations. Currently, we are

34 Airport Business Spring 2018 ISRAEL AIRPORTS AUTHORITY

of major importance to IAA, as income Ovda Airport, including Ryanair, Wizz Air, from fees and charges is not sufficient easyJet, Transavia, SAS, Finnair, and Ural to cover all IAA expenses for the opera- Airlines, as well as airlines operating at tion and development of infrastructure Eilat City Airport. and services at our airports and land Meanwhile, the new Ramon Airport border crossings.” has been built according to the Israeli Moreover, Israel, known as the “start-up Standard for Green Building 5281 and it nation”, provides the perfect platform for has the ISO 14001:2015 Environmental innovation and development of the latest Management Systems Accreditation. state-of-the-art technology. “Ben Gurion Marum says: “As the airport was built in Airport has a longstanding reputation in the desert at the Timna Valley, several the fields of security, operations and com- actions were taken prior to construction – mercial management. We have installed keeping and preserving the local seeds, many technologies to maintain a high flowers and unique small animals. After level of aviation safety, while increasing the construction is completed the seeds the airport’s aviation traffic capacity. This and flowers will be planted again in the enables the airport management to main- area to keep the nature environment. In tain a high level of service for passengers the airport area, a solar farm will be built and an improved passenger experience, to provide energy to the airport.” while providing high level security.” The past five years have been revolu- tionary for Israel and 2018 is no exception. New Eilat Ilan and Assaf Ramon For the first time, Israel will operate two International Airport “a unique international airports after the completion national project” of Eilat Ilan and Assaf Ramon International IAA describes the new Eilat Ilan and Airport. Looking ahead, Marum concludes: Assaf Ramon International Airport, set to “According to the master plan and the air- open later this year, as “a unique national port programme, we expect that the new Eliezer Marum, Chairman of project” due to it being the first domestic/ Eilat Ilan and Assaf Ramon International the Board of Directors, Israel international airport in Israel to be planned Airport will support local employment in Airports Authority: “According to the master plan and the airport and constructed from top to bottom. Also the region, and increase the operation of programme, we expect that the known as Ramon Airport, it is expected low-cost carriers for Europe and the Far new Eilat Ilan and Assaf Ramon to spark a 300% increase in tourism to East, thus resulting in more competition, International Airport will support local employment in the region, southern Israel with an anticipated 1.4 mil- lower airfares for passengers and much and increase the operation of low- lion domestic passengers and 400,000 on improved air connectivity for Israel.” cost carriers for Europe and the international flights. Far East, thus resulting in more competition and lower airfares Replacing the two existing airports in for passengers.” Eilat, Eilat City and Ovda, Ramon Airport will serve as the new international gate- way to southern Israel and the Red Sea. Its terminal building has been designed using developing a new mobile application materials which reflect the natural beauty for pre-order, e-commerce for order of the Timna Valley where the airport is from home prior to arrival, food & bev- located. erage variety, and also we are looking Last year, JR/Duty Free secured a to respond to the business passen- 10-year duty free contract at the new gers’ needs.” airport, while IAA is also considering the Overall, annual commercial rev- opening of a commercial centre outside enues across IAA’s airports represent the terminal building. 47-48% of the total income. Marum adds: Airlines expected to operate at the new “Commercial revenues and income are airport include those currently serving

The new Eilat Ilan and Assaf Ramon International Airport terminal building has been designed using materials which reflect the natural Yoram Shapira, Deputy Director beauty of the Timna Valley General Department of Commerce where the airport is located. and Business Development, Israel Airports Authority, will speak in this year’s ACI EUROPE Airport Commercial & Retail Conference, in a session entitled “Commercial influences of the host airport: Israel’s economy is famously split in two: “tech & tourism – and then all the rest.”

Spring 2018 Airport Business 35 AIRPORT COMMERCIAL & RETAIL

Autogrill is Corporate Sponsor of this year’s ACI EUROPE Airport Commercial & Retail Conference & Exhibition, with Chief Marketing Officer Ezio Balarini participating in the Innovation Masterclass at the event. Interview by Ross Falconer Embracing digital to offer travelling consumers tailored, efficient F&B experiences

igital transformation is touching is currently available in Italy and will be all aspects of the travel experience. rolled out in other countries. New technologies are reshaping This is just one step in the digital transfor- D the way travelling consumers mation that is a key strategic priority for the interact with retail and food & beverage operator. Balarini emphasises the importance (F&B) brands, both physically and digitally. of tailoring digital solutions to the particular F&B operator Autogrill, for example, is needs or behaviours of guests in each loca- building partnerships, projects and services tion. Autogrill recently introduced kiosks for to advance the digital evolution of its offering. pre-ordering in 26 quick-service restaurants “We are committed to providing our guests in North America and over 20 in Europe, with services that meet the needs of today’s with the aim of allowing customers to better and tomorrow’s travellers while, at the manage their time at the airport. same time, making an important contribution “In North America, HMSHost has finalised to the gradual adoption of advanced digital an exclusive agreement with Kallpod, based behaviours on the go,” says Ezio Balarini, on which a new generation interactive Chief Marketing Officer, Autogrill. service will be made available in 100 restau- Indeed, Autogrill recently signed an rants across 33 airports,” Balarini adds. agreement with PayPal, through which it Kallpod is a communication tool which Ezio Balarini, Chief Marketing Officer, Autogrill: “We are committed to has introduced a mobile proximity payment directly connects guests with restaurant providing our guests with services system in its directly-operated locations, staff for quicker, more efficient service. that meet the needs of today’s and allowing customers to pay with their smart- It works by placing the ‘Kallpods’ – small tomorrow’s travellers while, at the same time, making an important contribution phones via the MyAutogrill app. The service circular ‘pinging’ devices with three simple to the gradual adoption of advanced buttons – on tables so that guests can digital behaviours on the go.” request service when they are ready to Kallpod is a communication order, to ask for an additional item, or to forward for the entire travel dining sector.” tool which directly connects guests with restaurant staff request the bill. The Kallpod immediately Meanwhile, Autogrill has introduced for quicker, more efficient notifies staff via ‘Kallwatches’ – digital wrist- a tablet ordering system – QIKSERVE – in service. It works by placing watches which display the guests’ service its Kebaya Asian food outlet at Amsterdam the ‘Kallpods’ – small circular needs, as well as updates from kitchen staff. Airport Schiphol. Customers choose from ‘pinging’ devices with three simple buttons – on tables so “The system allows staff to better manage the menu and order using tablets placed that guests can request service time and provide travellers with more at their table. The order is then immediately when they are ready to order, to accurate and faster service crucial inside sent to the kitchen. “This enables us to serve ask for an additional item, or to request the bill. airports,” says Balarini. “The HMSHost- all dishes within 15 minutes, enhancing the Kallpod partnership represents a step F&B experience,” Balarini explains. Alongside its desire to deliver an “inter- active, personalised and memorable” experience, Autogrill remains strongly rooted in each region of operation, offering authentic, regional flavours. “Each location is conceived to transmit authenticity to travellers,” says Balarini. “The needs of customers on the go are always at the centre of the spaces we develop, in order to provide an engaging experience in which each detail is conceived to provide a 360-degree experience.” Digital innovation is essential across commercial activities, as airports and their partners aim to thrive in an increasingly technology-centric world. Delegates will learn more on tailored digital solutions at this year’s ACI EUROPE Airport Commercial & Retail Conference & Exhibition.

36 Airport Business Spring 2018 Tag it easy.

Easy

Fast

Clean

eezeetags is the new experience in the self service bag drop process. If you have any questions about this magic tag, please contact us. Phone +31 348 560 077, email [email protected]. Or visit our website www.eezeetags.com

eezeetags 210x297.indd 1 20-02-18 15:41 AIRPORT COMMERCIAL & RETAIL

“From moment to momentum”: Lagardère Travel Retail’s shift towards a frictionless retail experience

Last year, Lagardère Travel Retail began its five-year duty free concession at Geneva Airport, bringing out the true uniqueness of Geneva. Stéphanie Metz-Thevenod, EVP Marketing & Digital Duty Free Global, Lagardère Travel Retail, shared some insights on Lagardère’s commercial and marketing strategies, ahead of her address during this year’s ACI EUROPE Airport Commercial & Retail Conference & Exhibition.

Stéphanie Metz-Thevenod, EVP Marketing & Digital Duty Free Global, Lagardère Travel Retail, will speak at this year’s ACI EUROPE Airport Commercial & Retail conference in Tel Aviv, 13-15 March, in a session entitled “The Star Chamber: Brand new centres of commercial excellence, new markets, new ideas… new ways of making money.”

hen it comes to customer engagement, developing innovative concepts that W cater for the diversity of targets and needs is key. That is why it comes of no surprise that Lagardère Travel Retail, a global leader in content production and distribution, has developed a marketing strategy revolving around innovative and performing retail concepts. “We see omnichannel and digital as major enablers today to reach travellers and develop customer engagement,” explains Stéphanie Metz-Thevenod, EVP Marketing & Digital Duty Free Global, Lagardère Travel Retail. Developing commercial and marketing strategies to leverage those trends will Last year, Lagardère Travel Retail began its five- be a key discussion during this year’s year duty free concession at Geneva Airport, where the travel retailer will introduce its personalised ACI EUROPE Airport Commercial & Aelia Duty Free concept, ‘The Art of Gifting’. Retail Conference & Exhibition in which

38 Airport Business Spring 2018 AIRPORT COMMERCIAL & RETAIL

Stéphanie Metz-Thevenod, EVP Marketing & Digital Duty Free Global, Lagardère Metz-Thevenod will take part. “It is a great design and communication showcasing Travel Retail: “We have pleasure to be invited to that discussion the amazing landscape of Geneva.” created a unique vision for Geneva Airport: ‘Geneva Pure at the ACI event in Tel Aviv. I will present our After carefully studying the passenger Inspiration’ to enable millions vision about the major trends impacting profiles at the airport, Lagardère has of passengers to dive into the way people shop and how we at established a diverse mix of brands and Geneva and French-speaking Lagardère Travel Retail are developing products to cater for its passengers needs Switzerland singularity. A fusion between a unique commercial and marketing strategies and their purchase motivations – from glittering and authentic to leverage those trends. In particular, accessible products and premium interna- nature in terms of design and the shift to mobile and the increasing tional brands to a strong focus on local scenography, and Switzerland know-how in terms of service search for a frictionless experience in brands highlighting the uniqueness of and store execution.” retail, the impact of social media. But Geneva and the Swiss tradition. also, how omnichannel is developing at Lagardère also relies heavily on airports and the need to go from moment introduction of new brands and new to momentum in our stores.” segments, as well as the impact of strong experiences that will be showcased at the promotional offers. The travel retailer airport will also be Fragrance Match, using A “360o Geneva Experience” has introduced a personalised Aelia Duty a unique and patented algorithm that Last year, Lagardère Travel Retail Free concept at the airport, recreating helps shoppers select the perfect match began its five-year duty free concession a shop in shop concept. “We have created in terms of fragrance. “In this category, at Geneva Airport, creating a true sense a unique vision for Geneva Airport: our ability to bring a curated offer for of place. “We are very proud and hon- ‘Geneva Pure Inspiration’ to enable millions Geneva passengers will definitely drive oured to have been awarded the Geneva of passengers to dive into Geneva and customer interest and category perfor- Duty Free concession with our concept French-speaking Switzerland singularity. mance,” says Metz-Thevenod. Aelia Duty Free ‘The Art of Gifting’,” A fusion between a unique glittering and enthuses Metz-Thevenod. “When we authentic nature in terms of design and “Partnership creates value” answered the tender, we spent a lot scenography, and Switzerland know-how Looking ahead, Lagardère Travel Retail of time studying the uniqueness of in terms of service and store execution,” is fully committed to ensuring a retail Geneva and the passenger profiles to explains Metz-Thevenod. proposition that is current and tailored make sure the global retail proposition As the year goes, the travel retailer will to each individual airport. would both benefit from Aelia Duty Free develop even more unique experiences “With the rise of digital, e-commerce retail and commercial high standards that will be visible in the main shop in the and social media, as major influencers and be unique for the passengers travelling second half of 2018, including an evolving to purchase, I am convinced that partnership to and from Geneva Airport. For Geneva, and interactive branded digital platform creates value. We look at every partner- we have developed at the heart of the showcasing brands, and a unique “Pure ship that is able to connect our retail store a 360° Geneva Experience including inspiration” tasting feature. concepts to the right audience, before, a bespoke offer around Swiss gastronomy, Among the digital and omnichannel during and after the store,” she concludes.

Spring 2018 Airport Business 39 AIRPORT COMMERCIAL & RETAIL

them to exchange coins for a voucher of Coindrum breaking into the same amount, providing a very attrac- tive commercial strategy for the retailer. However, later on, in collaboration the world market with Aer Rianta International (ARI), Coindrum came up with the idea to add a further 10% credit to the amount of coins the customer puts in the machines. Lukas Decker, CEO Coindrum, briefs Marta Dimitrova “It was actually Jack McGowan, CEO on the company’s worldwide expansion. of ARI, who came up with the idea to give people 10% extra on their coins. After the trial, it was so successful that it then became our core part of our proposition n 2012, Lukas Decker set up Coindrum Coindrum, however, is eyeing world to give the customer more to generate after developing an innovative system expansion and what better place to start more transactions.” for airports that allows passengers than with the world’s biggest international He continues: “So, in terms of the I to convert their unwanted coins into airport. Indeed, in a conversation with model that we have established now airport shopping vouchers. Five years Airport Business, Decker, revealed the and in terms of the technology, which later, Coindrum has already taken over exclusive news that the company has has improved over time, the machines the European market. As well as attracting secured a partnership with Dubai Airport. are now flawless. The design is much investors including Declan Ryan, founder “We like where things are going and sleeker, much more attractive in a high- of Ryanair; Bobby Healy, co-founder of we have broken into that kind of airport end retail environment.” CarTrawler; and Tom Kennedy, co-founder now, which is a great step for us and a Deals are already in place to continue of Hostelworld, Coindrum has built strong milestone for our business,” he enthuses. Coindrum’s expansion in 2018 and ahead. relationships with some of the major air- “We’ve launched in nine European In addition, the company recently moved ports around Europe. countries so far and with Dubai Airport into a new logistic centre in Dublin. “From The Irish start-up is now operating in nine we are leaving the continent. This trend our perspective, every airport can be international airports, recently expanding is definitely continuing, as we are increas- more profitable and better run with our its services at Dublin Airport, as well as with ingly targeting major international support and that is what we are trying market leader Dufry at Milan Malpensa non-European hubs.” to do. So, we are just going to continue Airport. In terms of customer service and com- growing as fast as we can. As a business, “Most of our scaling comes from mercial optimisation, Coindrum’s model we have moved forward as well, so we our existing partners,” explains Decker. has improved over time. Decker explains: can cater for bigger demand. This year, “For example, Dufry was one of our first “We think we have found our sweet spot alone we will definitely double our foot- partners and our initial installation with now and we know how it works for all of print in terms of unit count.” the retailer at Milan has performed so the different parties – for the airport, the Coindrum will showcase its innovation well for the past three years, that we retailer, the customer and ourselves. What during the ACI EUROPE Airport Commercial are now delighted to build on this we try to do now is to copy/paste this & Retail Exhibition, where the company success and offer the Coindrum service model in airports across the world.” is hoping to continue strengthening its to all departing passengers across the Initially, the product was launched existent relationships and creating new different Dufry stores.” as a free service for customers, allowing partnerships with airports worldwide.

Irish start-up Coindrum has begun its international expansion with a newly secured partnership with Dubai Airport. Lukas Decker, CEO Coindrum, commented: “We like where things are going and we have broken into that kind of airport now, which is a great step for us and a milestone for our business. We’ve launched in nine European countries so far and with Dubai Airport we are leaving the continent. This trend is definitely continuing, as we are increasingly targeting major international non-European hubs.”

40 Airport Business Spring 2018 Tone_Tiny_Crunchy_Almond_Airport_Advertisement_A4.indd 1 07.02.18 15:18 AIRPORT COMMERCIAL & RETAIL

Ivo Knuesel, Head of Category Planning, Mondelez World Travel Retail, is participating in this year’s ACI EUROPE Airport Commercial & Retail Conference & Exhibition. He shared a preview of his thoughts on transformational disruptors in the airport commercial space with Ross Falconer.

Mondelez pioneering digital in the confectionery category

his year’s ACI EUROPE Airport can leverage disruptive technology to drive Commercial & Retail Conference conversion and grow together.” & Exhibition will focus on how air- He will address the industry challenges T port commercial spaces are being all stakeholders – airports, retailers, and transformed by disruptive technology. brands – face and how collaborations, Ivo Knuesel, Head of Category It is a topic high on the agenda of especially those that involve technology Planning, Mondelez World Travel Mondelez World Travel Retail (WTR), manu- providers, can help meet these challenges. Retail: “The way travellers behave and shop has been changed vastly facturer of confectionery brands including “In such collaborations, brands play a by technology; our job is to keep Toblerone and Cadbury. The company aims particularly important role as they provide on top of this change, and continue to pioneer digital within the confectionery creative input, deliver an emotional con- to engage the hyperconnected next- generation – or, as we call them, category to take it to the next level. “The nection during the interaction, and link ‘Next Gen’ – travellers.” way travellers behave and shop has been the experience to purchase,” Knuesel adds. changed vastly by technology; our job is to into in-store visitors and shoppers, and stay on top of this change, and continue to Mobile connectivity, tech-savviness, then converting them into buyers.” engage the hyperconnected next-generation frequent travel By activating these three digital plat- – or, as we call them, ‘Next Gen’ – travel- Together with the digital boom, new forms along the travel journey, the aim is lers,” explains Ivo Knuesel, Head of Category issues and opportunities have arisen, to connect travellers with brands in a mod- Planning, Mondelez WTR. “Successfully which means that a wholly new approach ern and meaningful way, strengthening the engaging this emerging type of traveller is needed to re-engage travellers. Next emotional link and adding a new dimen- takes a collaborative approach from all travel Gen Travellers are characterised by their sion to the supplier-shopper relationship. retail stakeholders. I expect to not only glean mobile connectivity, tech-savviness and The most recent example of how insights from some of the most forward- frequent travel; and also by their desire Mondelez WTR collaborates with air- thinking companies at the conference, but for bespoke experiences and sharable ports and retailers was the pre-launch of to also seek out potential collaborations that moments. “The term is much broader Toblerone Messages between January and than ‘Millennials’ and describes the way March 2017, in which it exclusively part- travellers behave, rather than referring nered with the Dufry Group. solely to their demographics,” Knuesel “As soon as this new product hit the explains. “Mondelez is embracing this – shelves, we started using geo-targeted we have developed action plans behind advertising on Facebook and Instagram, the three pillars in travel retail to con- for travellers at the airports where the nect with them. The pillars include Digital new product was available, as well as Instore Engagement – triggering conver- advertising on the airports’ websites,” says sion and repeated purchases through Knuesel. “These ads were linked to Dufry’s effective activations at the point of sale; Reserve & Collect website, where travel- Online Communication – raising travel- lers could pre-order Toblerone Messages lers’ awareness of duty free shopping and pick up their purchase in-store.” and confectionery offers through social Mondelez WTR also partnered with the media and other online channels so that ‘Red by Dufry’ loyalty programme to raise we can encourage store footfall; and awareness of Toblerone Messages among E-Commerce, converting online users the programme members via personalised emails; and collaborated with FLIO, promot- ing Toblerone Messages to its users across major European airports within Dufry’s retail Among the product innovations Mondelez universe. “This is not only an example of World Travel Retail has planned in 2018 is Toblerone Tiny Crunchy Almonds 272g. our collaboration efforts with airports and Meanwhile, last year it launched the festive- retailers, but also showcases how digital has themed Toblerone Happy Holidays, a universal become a part of the overall in-store strat- gift that covers a range of holiday celebrations, from Thanksgiving to Chinese New Year. egy and was successfully applied in travel retail,” Knuesel concludes.

42 Airport Business Spring 2018 your parking revenue.

Accelerate profits with unrivaled dynamic pricing and optimization.

Pull ahead of your competition with the leading revenue management system (RMS) tailor-made for car parks. IDeaS Car Park RMS is a cloud-based, automated and self-learning pricing, forecasting and revenue management software solution that optimizes pricing and enhances overall business performance.

REV IT UP ideas.com [email protected]

©2018 Integrated Decisions & Systems, Inc. (IDeaS - A SAS COMPANY) – All Rights Reserved. All other trademarks are the property of their respective owners. TJAD0016-00-EE-ID 02/18 AIRPORT COMMERCIAL & RETAIL

Guy Barnes, Director Strategic Accounts, and Pauline Oliver, Business Development Manager of IDeaS, interviewed by Marta Dimitrova. Intelligent analytics and algorithms leading to “optimal pricing and improved revenue”

traffic to 14 billion by 2029, the need to maximise productivity and profitability.” Guy Barnes, Director Strategic Accounts, IDeaS, will discuss continue expanding parking infrastructure At the heart of this approach isn’t just strategies to optimise parking is essential. “There are, however, significant big data, it is the right data and intelligent revenues in the airport commercial challenges to this,” says Pauline Oliver, analytics. Available today in an airport’s space during this year’s ACI Business Development Manager, IDeaS. technology environment is an ongoing EUROPE Airport Commercial & Retail Conference. “We are seeing modal shifts from cars to stream of highly valuable data that, with the greener transportation options, with airports right models and tools, can inform pricing en years ago, Uber and Airbnb did and governments supporting and promoting decisions and revenue strategies. not exist, yet it is hard to imagine a these initiatives. Passenger dwell time Making this transformation to a dynamic consumer landscape without them is reducing, and thanks to the internet, pricing approach can mean a new way of Ttoday. The demand for traditional travellers are more price sensitive and working, and IDeaS is committed to forming taxis and hotels has not been eliminated, yet savvy about the travel choices they make.” solid partnerships with clients for long-term internet-based businesses have considerably The emergence of autonomous vehicles success and growth. One of the latest airports disrupted the travel industry. Customers are also has the potential to negatively impact to implement new revenue technology in more empowered than ever to shop around on parking revenues, so the industry must airport car parking is Helsinki Airport. With and make informed travel and booking deci- work hard to stay competitive. more than 19 million passengers and getting sions. With 40 million riders every month, and Many airports see a competitive advantage ready to serve over 30 million passengers, a net revenue of more than $1 billion, Uber in using data science and analytics to forecast the airport has implemented a dynamic has successfully educated a global market to true demand and use that demand to sell pricing model, to ensure it makes the most book online via its app, pay electronically and car park spaces at optimal rates determined of its commercial opportunity through parking. accept dynamic pricing, which means higher by consumer price sensitivity. Selling through Although revenue management is a rela- fares in periods of high demand. During an online channel is key. “Having a platform tively new discipline for airport parking, its this year’s ACI EUROPE Airport Commercial to sell parking spaces online is important, impact is significant and is transforming the & Retail Conference, Guy Barnes, Director but the application of intelligent analytics way airports yield their parking inventory. Strategic Accounts, IDeaS, will discuss strat- and algorithms is what leads to optimal IDeaS is already looking ahead to the future, egies to optimise parking revenues in the pricing and, as a result, improved revenue,” beyond demand-based, dynamic pricing for airport commercial space. “The hospitality Oliver explains. “Automation in pricing decisions each car park or customer segment. “We industry has worked this way for many years, takes this a step further and achieves more see the opportunity to personalise price and now airports around the world are seeing for your bottom line. Because IDeaS Car even further with the right technology in the value in a similar approach to grow non- Park Revenue Management System is an place. Providing parking customers with aeronautical commercial revenues through automated decision system that takes the more choice and pricing that best meets parking,” he explains. many variables of a car parking business into their individual preferences is empowering Non-aeronautical revenue is, indeed, sig- consideration, it can integrate sophisticated and adds value. This approach ultimately nificantly important to an airport’s long-term analytics into existing selling systems to drives increased revenue,” Oliver concludes. revenue growth. According to the 2017 ACI Economics Report, non-aeronautical revenue Helsinki is the latest airport to continues to constitute 40% of the €152 billion implement IDeaS’ dynamic pricing in global airport revenues. 23% of that revenue model to increase its commercial comes from parking, making it clear that devel- revenue through parking. Photo: Finavia oping a commercial strategy to drive parking revenue can be a turning point for airports. As airport margins come under increasing pressure due to changing airline business models and increasing operating costs, non-aeronautical revenues, especially those from parking, bring opportunities through higher margins and direct influence from airport commercial directors. With the expected doubling of global passenger

44 Airport Business Spring 2018 The best shopping destination

Delivering a new type of shopping experience to the world’s most discerning travellers with bespoke stores, immersive digital communications, tailored experiences and the best brands. Endless reasons to become part of the largest travel retail group in the world. AIRPORT COMMERCIAL & RETAIL

K-Beauty trend comes to ACI EUROPE Airport Commercial & Retail Conference & Exhibition

he worldwide travel retail launch and chlorine.” Within Israel, DERMAGLAM MASK. This premium Collagen booster of an exclusive AFTER FLIGHT SEOUL has already established listings treatment is formulated with cutting-edge MASK takes place at this year’s via JR/Duty Free James Richardson at Tel technologies to give tension, vitality and T ACI EUROPE Airport Commercial Aviv’s Ben Gurion Airport (Terminals 1 and elasticity to mature skin in just 20 minutes. & Retail Conference & Exhibition in Tel Aviv. 3). Products are also offered inflight “We are an exclusive brand, only avail- Indeed, attendees will receive an AFTER on Israir Airlines and Arkia, and will be able online, specialist makeup venues FLIGHT MASK in their delegate bags. going onboard El Al from April this year. or – currently – through Tel Aviv Airport Beauty brand DERMAGLAM SEOUL Now the company is looking to expand and onboard selected airlines,” explains claims there is nothing else like its range its business globally and sees travel retail Etti Barkin, co-CEO, DERMAGLAM SEOUL. of Korean-manufactured skin-care sheet as the perfect springboard from which “We are hoping that exhibiting at the ACI masks available in travel retail. to raise the brand’s profile and awareness. EUROPE Airport Commercial & Retail event Designed specifically for the channel, Launching for the first time at the ACI in Tel Aviv will introduce DERMAGLAM the After Flight premium, superfine fibre EUROPE Airport Commercial & Retail SEOUL to airport and retail delegates from sheet mask has been created to treat Conference & Exhibition is a new line – throughout Europe, of course, but our dehydrated, tired skin that has been PREMIUM COLLAGEN REPAIR ANTI AGING strategy is to seek distribution worldwide.” exposed to the extreme conditions of air travel. The mask is infused with hydrating, soothing revitalising serum that instantly rejuvenates and wakes up tired skin. Each DERMAGLAM SEOUL has already established mask pack is just 20g and can be sold listings via JR/Duty Free separately or in boxes of five units. James Richardson at “It’s a best seller for our existing travel Tel Aviv’s Ben Gurion Airport (Terminals 1 retail partners,” says David Edelstein, co- and 3). Products are also CEO, DERMAGLAM SEOUL. “There’s really offered inflight on Israir nothing else like it available to the sector. It’s Airlines and Arkia, and will be going onboard El perfect to use after a long flight, or on Al from April this year. holiday after exposure to sun, salt water

ubway restaurants opened its first shop in an airport location in Birmingham-Shuttlesworth Repositioning Subway to meet the SInternational Airport in 1994. Today, expectations of today’s customers 23 years later the brand boasts over 240 shops in over 170 airports around the world. “25% of our shops are in non-traditional we saw the potential, it opened a door to for something familiar,” explains Fertman. locations, such as colleges, hospitals, mili- new opportunities. Locations in airports or “This is where Subway is a perfect fit for tary bases, and convenience transportation hubs of various countries airport locations with its 44,000 shops in stores,” explains Don Fertman, Chief provide an introduction to the brand as 113 countries around the world.” Development Officer, Subway. well as the business opportunity in both Subway continues to improve its entire “The non-traditional expansion started developed and emerging markets. One dining experience and recently introduced with the idea of a Franchisee, which is feeds off the other, resulting in increased the Subway Fresh Forward restaurant sometimes where the best ideas originate. brand exposure and heightened worldwide design to its shops around the globe. The concept was to place a restaurant profile.” The new design includes a more contem- within a convenience store simply to reach In 2017, the company opened airport porary design and an investment in leading more customers. He got it done and proved shops in Germany, Mexico, Brazil, India, technology to connect with customers. it could be successful and profitable. Once Thailand and Turkey and is in the process The brand is using digital options, such as of opening additional shops in airports in remote ordering through the Subway app India, Singapore, Venezuela and Malaysia. and a bot for Facebook Messenger, and “Even though in today’s market there quick self-order kiosks, currently available is a tendency for great local restaurants in the US, Canada, and US Territories. to establish a sense-of-place, airports The Fresh Fit décor can be found at are finding that many passengers still long Baltimore-Washington International, John Wayne, Kelowana, and Salalah International airports, just to name a few. Subway continues to improve its entire “Our new app is one of the ways we dining experience and recently introduced are repositioning Subway to meet the the Subway Fresh Forward restaurant design to its shops around the globe. expectations of today’s consumers,” says Fertman.

46 Airport Business Spring 2018

Strategies for attracting and retaining THE AIRLINE CONVERSATION airline customers

Niky Terzakis, CEO Air Belgium, interviewed by Ross Falconer. Air Belgium: Start-up disrupting the market for Europe-Asia services

new disruptor is looking to shake Belgium to be competing with Cathay our entire strategy is based on precisely up the market for intercontinental Pacific on the route. Cathay is launching what customers are demanding: simplicity, services between Europe and Asia. its own service from Brussels Airport competitive fares, and high-quality service.” A Start-up Air Belgium has chosen to Hong Kong on 25 March. The airline plans to operate seven routes Brussels South Charleroi Airport as its home “We definitely wish to be market disrup- this year, including Hong Kong and six other base, with its inaugural service to Hong tors,” says Niky Terzakis, CEO Air Belgium. destinations on the Chinese mainland as Kong scheduled for the end of March. It will “We’re looking at a fresh and very competi- of May 2018. “It is too early to mention the initially operate four weekly flights on the tive offer, not just fare but also service-wise. other destinations at this stage,” Terzakis route, with plans to increase that to six by The Belgian O&D market is pretty signifi- adds. “The reason for that is simple: we want the autumn. cant and the lack of long-haul flights from to secure the best slots for our passengers. Hong Kong is, of course, a key business Belgium to the world’s largest passenger All we can reveal right now is that we’ll be destination and a major hub to Asia. market – Asia – is remarkable to say the enabling new direct connections between Surprisingly, it’s never been served least. Our ambition is to serve a selection the heart of Europe and major and medium- directly from the European capital, of Asian destinations with an offering that sized cities in China.” Brussels, even though it’s a very business- makes sense to leisure, premium and busi- Air Belgium has established its Asia Pacific friendly and competitive environment ness travellers. We aim to drop the bling permanent offices in Hong Kong, from for all kinds of travellers. That’s all set and focus on the essentials. We’ve con- which it will develop its Asian network and to change by the end of March, with Air ducted very extensive market studies and destinations.

48 Airport Business Spring 2018 Strategies for attracting and retaining airline customers THE AIRLINE CONVERSATION

Start-up Air Belgium has chosen Brussels South Charleroi Airport as its home base, with its inaugural service to Hong Kong scheduled for the end of March. Pictured are Niky Terzakis, CEO Air Belgium, and Jean-Jacques Cloquet, CEO Brussels South Charleroi Airport.

boarding process. “Premium travellers, in particular, will be offered a unique infra- structure, ensuring no queuing time, the shortest walking distance and a full-ser- vice lounge,” he says. “Another USP will be our pronounced focus on service customi- sation and moving towards a door-to-door service.” Air Belgium has a phased 10-year plan. The current 3-year phase 1 focuses on starting to serve Asia, and particularly China, with six destinations and four air- craft. It also includes the establishment of Air Belgium and BSCA: “Shared changes also involve the construction of a series of interline agreements with Asian destiny for – at least – the next a new Premium Terminal for business and and European carriers. “Phase 2 consists of 10 years” premium passengers, which will allow them expanding the number of flights to, and Terzakis’ previous experience includes to board their plane in less than 20 minutes destinations in, Asia and complementing 15 years as CEO of cargo airline TNT Airways from the moment they park their car.” the fleet with modern technology aircraft. (now rebranded as ASL Airlines Belgium). “Being able to welcome a company Phase 3 involves the expansion of our “There really isn’t much difference between such as Air Belgium on our apron allows fleet and network, which includes a focus aircraft and airline economics,” he com- us to switch to a new strategy and further on North and South America,” Terzakis ments. “My extensive experience with TNT strengthen our international position,” explains. Airways has given me a good feeling for all adds Jean-Jacques Cloquet, CEO Brussels The market for Europe-Asia services is logistical aspects and technology develop- South Charleroi Airport. “With the first ripe for disruption, and the launch of Air ment. I’m also grateful to have been able to direct long-distance flights to Asia, the Far Belgium is doing just that with a visionary surround myself with a wonderful and very East has never been closer.” new offer for travellers. experienced team with many years of expe- The Premium Terminal will be located at rience in demanding passenger operations. the current Terminal Sud (Executive Aviation Going forward, we’ll make sure to particu- Terminal), with other facilities to include a larly pay attention to new technologies, full-service Business Lounge. Construction Air Belgium factbox resulting in continuous developments.” will start at the end of May and take a year Key factors in Air Belgium selecting to be completed. In the meantime, the air- Base: Brussels South Charleroi as its home base port will be providing temporary solutions Brussels South Charleroi Airport were the airport’s accessibility and punctu- for travellers from the first flight. ality, and Terzakis speaks eloquently about These infrastructure enhancements Inaugural route: the airport and airline’s “shared destiny for will enable the airport to accommodate Hong Kong (end-March 2018) – at least – the next 10 years”. the Air Belgium fleet, which will comprise “By working together, the airport will four A340-300s, deliveries having begun 2018 destinations: reinforce its international presence and in mid-February. 7 (Hong Kong, plus 6 mainland undergo significant changes,” he notes. In terms of the facilities Air Belgium China destinations) “It will become an important hub by hosting requires from its airport partners, Terzakis long-haul carriers that will be connected to is clear that the biggest emphasis is on Fleet: 4 A340-300s other major cities, and by changing its entire the shortest possible processing time infrastructure, including mass transit. The for travellers – from the car park to the

Spring 2018 Airport Business 49 ACI AIRPORT EXCHANGE 2017

During the Global Leaders Masterclass Part 1, Dr Sani Şener, President & CEO, TAV Airports, focused on TAV’s “smart growth” strategy. Commenting on the aftermath of the terrorist attack at Istanbul Atatürk Airport on 28 June 2016, Şener described the airport’s response and its efforts to overcome challenges and achieve further growth.

Olivier Jankovec, Director General, ACI 1,405 industry experts EUROPE, set the scene with his State of the Industry address. He explained that, in the period from January to September 2017, Europe’s overall passenger traffic grew attend ACI Airport Exchange +8.9%, with EU traffic up +8.2% and non-EU traffic up +11.8%. Jankovec also discussed hub connectivity and the evolving nature of airport competition. hosted by Oman Airports Management Company

11th ACI Airport Exchange, staged jointly by ACI EUROPE, ACI Asia-Pacific and ACI World, Muscat, 5-7 December 2017

man Airports Management excellence, profitability and customer ser- Company (OAMC), which is respon- vice’. This was reflected in all five conference sible for the management and streams – The Keynote Arena, Security & Ooperations of the new $1.8 billion Crisis Management, Airport Operations, (€1.5bn) Muscat International Airport, Salalah Digital Innovation & Big Data, and Airport Airport, and other regional airports in the Development. These were complemented Sultanate of Oman, last December hosted the by a broad exhibition of more than 50 com- Patti Chau, Regional Director, ACI Asia-Pacific, set the scene with regards to the Asia-Pacific 11th ACI Airport Exchange, staged jointly by panies showcasing their latest innovations, region. She focused on increasing airport ACI EUROPE, ACI Asia-Pacific and ACI World. services and solutions, as well as a fantastic capacity and passenger growth in Asia-Pacific Inspired by the Oman Airports social programme laid on by the host, OAMC. and the Middle East. According to the ACI Global Traffic Report, traffic volume will double Management Company five-year transfor- Following recent successes in Oman, in 15 years, reaching 15.7 billion passengers mation strategy ‘Growing gateways to beauty Istanbul, Paris and Doha, ACI Airport and 171 million tonnes of cargo. Chau also and opportunity’, the theme of the event Exchange 2018 takes place on 27-29 emphasised core values such as safety, security, environmental sustainability, and innovation. was ‘Leading airports towards operational November, hosted by Avinor Oslo Airport.

Badr Mohammed Al Meer, COO Hamad International Airport (HIA), delivered a keynote address on the airport’s swift and effective response during Qatar’s diplomatic crisis and its ability to maintain operational excellence in challenging times. In the past six months, HIA has added six new airlines and 14 new destinations. The airport is also gearing up to host the 2022 FIFA World Cup by accelerating its expansion plans and investing in cutting-edge technologies in order to deliver a friction-free travel experience.

The event saw Salalah Airport recognised at Level Sheikh Aimen Ahmed Al Hosni, CEO Oman 1 Mapping of ACI Airports Management Company, welcomed Airport Carbon delegates. “With hopes and aspirations, we look Accreditation, forward to seeing this major ACI conference while Muscat making key and principal recommendations International that would help the decision-makers to draw Airport up successful policies and draft clear plans progressed to for a promising future,” he said. Level 2 Reduction.

50 Airport Business Spring 2018 ACI AIRPORT EXCHANGE 2017

Kjeld Binger, CEO Airport International Group, discussed Queen Alia International Airport’s strategic vision to become the airport of choice in the region and to build global connections for Jordan.

Mohamed Yousif Al Binfalah, CEO P S Nair, CEO – Corporate, GMR Airports Bahrain Airport Company, delivered Ltd, focused on GMR’s place among the a keynote address on “Bahrain’s world’s major airport groups. $1 billion Airport Modernisation Programme, and the aim of elevating the airport’s infrastructure and services in line with the highest levels of safety, security, technology and environmental standards”.

HE Dr Ahmed bin Mohammed Al Futaisi, Minister of Transport and Communications, together with Sheikh Aimen bin Ahmed Al Hosni, CEO of Oman Airports Management Company; Patti Chau, Regional Director, ACI Asia-Pacific; and Olivier Jankovec, Director General, ACI EUROPE, officially opened the 11th ACI Airport Exchange exhibition, which featured leading suppliers and innovative solution providers from every aspect of the industry. Alison Fitzgerald, COO London City Airport, discussed the airport’s remote tower concept and “why augmented reality is the real game-changer”, during the Airport Operations Conference stream.

Sylvain Lefoyer, Deputy Director, Aviation Security and Facilitation, Air Transport Bureau, ICAO, set the scene in the Security & Crisis Management Summit, by providing a global view of security threats and challenges. He also focused on the work being undertaken by ICAO, states and industry relating to strengthening the implementation of standards, audit, oversight and capacity building.

The Airport Operations Conference provided a platform for discussion around the ways in which new technologies and facilities can really deliver the efficiencies and capacities airports need to achieve During his keynote presentation in the Digital operational excellence. To open the stream, Innovation & Big Data Conference, Huawei Peter Hotham, Deputy Executive Director, Enterprise Business Group’s Director, Xi SESAR Joint Undertaking, focused on Lin, delivered fascinating insights into remote towers and the digitalisation Chinese airports’ intensive pursuit of digital of Middle Eastern and European ATM transformation and the requirement for infrastructure. comprehensive application of new technology as part of the desire to create “smart airports”.

Spring 2018 Airport Business 51 ACI AIRPORT EXCHANGE 2017

The First Working Session in the Digital Innovation & Big Data Conference examined “Technologies and customer experience: are airports and airlines meeting travellers’ expectations?”. Moderated by Neil Pakey, Chair, Regional and Business Airports Group (RABA), the panel also included Xi Lin, Director, Huawei Enterprise Business Group; Carlos Kaduoka, Director Consulting, SITA; Thomas Hoff Andersson, Director of Passenger and Terminal Services, Copenhagen Airport and Rapporteur of the ACI EUROPE Task Force on Border Control; and Jurgen Renner, Project Lead – Level of Service, IATA.

David Wilson, COO Oman Airports Management Company, provided an insight into the new $1.8 billion Muscat International Airport, during the First Working Session in the Airport Development Conference.

ACI Airport Exchange included a diverse exhibition of over 50 exhibiting companies Harj Dhaliwal, Managing Director of Middle specialising in airport East and India, Hyperloop One, delivered services and equipment. the finale at ACI Airport Exchange 2017. In an insightful address, he told attendees: “Hyperloop One is not here to compete with airports, but to augment them.”

Sheikh Khalid bin Hilal Al Yahmadi, CEO Muscat National Development & Investment Company (ASAAS) and Chairman, SalamAir, delivered the closing keynote Oman Airports Management Company hosted presentation. He placed an emphasis on the two spectacular social events – a Welcome Omani aviation market and the potential Reception at Azaiba Beach, and a Gala Dinner it carries for a low-cost airline focusing on at the Royal Opera House Muscat. captive demand and transfer passengers.

52 Airport Business Spring 2018 Gateways to beauty and opporunity

We are ready to operate Oman Airport’s jewel The New Muscat International Airport Reflecting the dynamism and diversity of people AIRPORT PEOPLE at the heart of the airport business

MAG’s new tech and e-commerce start-up “creating a culture of innovation”

Nolan Hough was appointed Managing Director at MAG-O in 2017. With a clear brief for innovation, Manchester Airports Group (MAG) launched its tech and e-commerce business, MAG-O, to respond to technology-driven changes and to move the airport experience into a new digital era. Interview by Marta Dimitrova.

Airport Business: What have been your three airports – Manchester, London where as a passenger you will be guided initial priorities since taking up the posi- Stansted and East Midlands? directly to your parking space via mobile tion as Managing Director of MAG-O? Hough: It’s all about bringing a higher web services, have your food ready and Nolan Hough, Managing Director, MAG-O: level of enjoyment to the airport environ- waiting for you at the restaurant of your We are responding to changes in passenger ment, eradicating the pain points that we choice and be able to take advantage behaviour and need to move the airport have all become familiar with and ultimately of personalised discounts in our shops experience into a new digital era. providing passengers with a much and then finally be guided to the plane We’re looking to build a start-up ethos smoother, and stress-free, experience. at exactly the right time for boarding. and part of that is being physically separate, Ultimately, what we’re trying to do not constrained by the big company AB: MAG-O has already embarked on is create an excellent digital passenger thought processes. I’m lucky that I’ve a programme of trialling and testing new journey which will make people want been given the go ahead to build a fresh products which will benefit MAG’s passen- to travel from MAG airports. culture from the word go – we have new gers, improving the efficiency of its terminal offices, we’re more flexible, and we’re and car parks and offering passengers new more collegiate. online experiences. Can you please provide more details on some of these projects? AB: What inspired the need for such Hough: We are still essentially a start-up technology and e-commerce business but already MAG-O has introduced some as MAG-O? small changes to the wider MAG operation Hough: I’m realistic – by today’s standards that have made a seismic difference I think passengers in airports are often to passengers, including how they are disappointed by the standard of the digital able to find and book flights, live flight experience. People are used to excellent notifications, travel itinerary services and experiences and reasonable is no longer FastTrack Passport Control. good enough. That’s what we’re addressing Other projects include building VIP with MAG-O. products, travel insurance, concierge Therefore, we are taking much of our services, Apps, ChatBots and new distribut- inspiration from outside the airport industry ing deals just to name a few. and we have already trialled, tested and MAG-O has also undertaken a complete introduced dozens of new initiatives redesign and relaunch of the Group’s airport across MAG’s digital footprint. websites, with each one now delivering significantly faster load speeds and a AB: How has your previous experience more intuitive user experience. informed your approach to your new role at MAG-O? AB: In what ways will the new e-com- Hough: Before doing this job, I headed merce shopping experience boost travel up the car parking division at Manchester retail and generate revenues? Airports Group (MAG). Hough: We are on a journey together and Car parking is one of the most sophisticated aiming to double our revenue in MAG-O online data management businesses in the within five years. Ultimately, I want the world. Across MAG’s car parks we have teams to push themselves, be customer-

160,000 car parking prices in the market centric, create a culture of innovation, not be Nolan Hough, Managing Director, at any one time – 3,600 algorithms all working afraid to fail and, perhaps most importantly, MAG-O: “We are on a journey at once and I want to get us to a place be commercial to the core. together and aiming to double through MAG-O where we’re managing up our revenue in MAG-O within 5 years. Ultimately, I want the to 4,000 price changes per day to give cus- AB: Looking ahead, what are your main teams to push themselves, be tomers the best value we can possibly offer. priorities and plans for development in customer-centric, create a culture 2018 and beyond? of innovation, not be afraid to fail and, perhaps most importantly, be AB: In what ways will MAG-O improve Hough: In the future, we are targeting commercial to the core.” the end-to-end experience at the Group’s a truly personalised airport experience

54 Airport Business Spring 2018 Reliable partner for value-added logistic process automation

Vanderlande is the global market leader for value-added logistic process automation at airports. Vanderlande’s baggage handling systems move 3.7 billion pieces of luggage around the world per year, in other words 10.1 million per day. Its systems are active in 600 airports including 13 of the world’s top 20.

Taking passenger experience into consideration, airport operators must find a perfect balance 20, 21, 22 MARCH 2018 between offering travellers stress-free, relaxing journeys combined with expedient and swift STOCKHOLMSMÄSSAN, STOCKHOLM, SWEDEN movement through checkpoints. Vanderlande offers advanced passenger checkpoint (APC) solutions Meet us at stand no. 910 – designed to increase security, reduce costs and offer an improved passenger experience.

> vanderlande.com LOGISTIC PROCESS AUTOMATION

Andrew Manship, Executive Vice President Airports and Board Member, Vanderlande, interviewed by Ross Falconer. Seamless logistic process automation to optimise travel experience

longside its successful Flexibility and space efficiency are key Advanced Passenger Checkpoint to future-proofing baggage logistics, and (APC) projects at Las Vegas and Vanderlande aims to provide both with A Keflavik airports, Vanderlande FLEET – a new logistic solution for baggage is working on the integration of its handling. SCANNOJET tray return systems and “By utilising intelligent automated vehicle eVelocity centralised image processing technology, FLEET replaces the need Andrew Manship, Executive Vice President Airports and Board Member, Vanderlande: (CIP) software at Prague Airport. for massive amounts of fixed conveyors “Vanderlande’s APC solution is a seamless As part of a major redevelopment of and sorting systems,” says Manship. “The system that combines a modular, state- Terminal 2, Prague is installing a 12-lane intelligent software, in combination with of-the-art automated security lane with remote screening.” centralised security area that will open advanced, predictive data analytics, ena- this summer. “Prague has invested in bles continuous adaptation to changing eight 18m SCANNOJET systems in com- customer demands. Furthermore, we’re building expansion,” Manship notes. “In bination with eVelocity software. The rethinking the way to deliver this solution addition, FLEET consumes up to 50% less latter will initially be used to perform to the market, more as a flexible logistic energy compared to a traditional baggage localised searches at the checkpoints, service than a fixed transactional delivery. handling system. When comparing costs and, at a later stage, Prague will use a Moreover, with FLEET, we’re pushing our- during 10 years of operation, including fully remote screening facility,” explains selves to bring sustainability to the next initial investments, FLEET offers smaller/ Andrew Manship, Executive Vice President level. FLEET uses 50% less energy and regional airports automatic sortation for the Airports and Board Member, Vanderlande. we take responsibility to use regenerative price of a conventional baggage handling “Vanderlande’s APC solution is a seamless natural resources.” system with manual sortation. This results in system that combines a modular, state-of- The first FLEET project will be imple- greater operational efficiencies, quality, and the-art automated security lane with remote mented at Rotterdam The Hague Airport, ergonomics.” screening. This will allow Prague’s screening with the new solution allowing the airport Meanwhile, Taiwan Taoyuan agents to share the workload, counter the to change seamlessly in the future to International Airport (TTIA) recently effects of traffic variation, and significantly match its business requirements. selected Vanderlande for the baggage improve their operational efficiency.” Scalability is also possible by imple- handling contract for its Terminal 3 project. menting additional vehicles. “In this way, It will be an important step in developing the system has been designed to grow Vanderlande’s individual carrier system Alongside its successful Advanced alongside the airport, without impacting on (ICS) capabilities in the Asia-Pacific region. Passenger Checkpoint projects at operations or necessitating any immediate Vanderlande’s solution will provide a Las Vegas and Keflavik airports, Vanderlande is working on the baggage handling system with a maximum integration of its SCANNOJET capacity of 19,200 bags per hour. The air- tray return systems and eVelocity port’s two existing terminals are currently centralised image processing software at Prague Airport. operated individually without a connec- tion between the two systems. “Once T3 has been constructed, all terminals will be seamlessly connected with Vanderlande’s automated ICS – TUBTRAX,” Manship explains. “This will result in a significant improvement to TTIA’s operational efficiency and tracking accuracy, as well as enhancing the experience for passengers.” The baggage handling system in T3 will comprise 206 check-in counters distrib- uted over six islands. Baggage will be transferred from the check-in area via the transport conveyors connected to four tilt tray sorters located at the main baggage hall. Bags will then pass through security screening before transfer to either the designated make-up carousels, early bag store area, or other terminals via TUBTRAX.

56 Airport Business Spring 2018 ACI EUROPE Airport Traffic Analyser

the latest airport tra c ...at your ngertips

Register for free now at:

www.aci-europe.org/tra capp

NAPLES AIRPORT

ever to the Canary Islands. Our domestic network will see the addition of Alghero in Naples Airport – the fastest Sardinia bringing the total to 15 Italian routes. For 2019 and onwards we are targeting one or two strategic intercontinental direct routes growing airport in Italy where we have passenger data showing a well-established traffic demand.” Naples International Airport is hosting this year’s ACI “Naples Strategic Plan for Tourism” As an airport business, Naples Airport EUROPE Regional Airports’ Conference & Exhibition, 14-16 is naturally counting on the long-term May. Ahead of the event, the airport’s CEO Armando Brunini development of incoming tourism flows, spoke with Marta Dimitrova. while also playing an important role in enhancing the international connectivity of the region. The airport is, therefore, actively engaging with both the local ast year, Naples Airport processed Naples, and Aeroflot will commence a daily government and the private sector in just under 8.58 million passengers, service to Moscow starting mid summer.” order to improve destination marketing a 27% rise over 2016, making it the and management. “We continuously Lfastest growing airport in Italy. Reaching the 100-route target contribute with strategic input; we had “I believe that Naples Airport, the city by next summer a key role in the preparation of the “Naples and the region it serves are finally seeing Driven by a strong focus on its continuously Strategic Plan for Tourism” recently adopted the traffic volumes and the touristic flows evolving marketing strategy, the airport has by the Municipality and our management they deserve,” enthuses Armando Brunini, been working hard to improve its seasonality is often the author of newspaper articles CEO Naples International Airport. “We had profile, which has seen some positive or is involved in speaking in conference an unexploited potential and we triggered results. In the current winter season Naples on tourism. At the same time, we understand growth with a well thought out and convincing Airport offers 63 scheduled routes, 22 the importance of showcasing updated best marketing proposition to airlines.” more than the same period last year. This practices for local tourism development Connectivity is an obvious powerful stimu- has already resulted in a remarkable +47% and we have delivered specific digital and lus of demand and having, in just four years, growth in passenger numbers in the first social marketing campaigns. One is “on doubled direct routes and attracted both three months of the low season. air” right now in France, UK, and Germany. easyJet and Ryanair to establish bases at Overall, the airport is hoping to reach the We are also a founding partner of Naples the airport, helps Europeans discover 100-route target by next summer. Brunini Convention Bureau, which aims to promote this surprising and authentic city, while explains: “We will still be focusing on the Naples as a MICE (Meetings, Incentives, Neapolitans are learning that flying direct network of European destinations with six Conventions, and Events) destination. to many European cities is affordable. new routes: Belfast, Kefalonia, Grenada, Faro, Overall, we are considered a credible and Naples Airport is undoubtedly set on Sharm el Sheik and Tenerife, our first service respected stakeholder by all parties and a path of success in the forthcoming years. easyJet and Ryanair will be the main drivers of the growth, while the airport has already been presented with clear opportunities from a wide range of airlines, including hub carri- ers, to increase frequencies and also launch new direct routes. “Specifically, in terms of hub connectivity, there will be two new important services in 2018: Air Italy (formerly Meridiana, now with Qatar Airways as relevant shareholder) has just announced its new strategy focused on Milan Malpensa as a hub for intercontinental services with two feeding flights from

Armando Brunini, CEO Naples International Airport: “I believe that Naples Airport, the city and the region it serves are finally seeing the traffic volumes and the touristic flows they deserve. We had an unexploited potential and we triggered growth with a well thought out and convincing marketing proposition to airlines.”

Spring 2018 Airport Business 59 www.aci-europe-rac.com

ACI EUROPE’s 11th

EUROPE

CONFERENCE & EXHIBITION

Airport Host Organiser

Save the date! May 14-16, 2018 Naples, Italy

Gold Sponsor Silver Sponsor Supporter

#RACE18 Follow us on: @ACI_EUROPE NAPLES AIRPORT

we will consistently be engaged in this area to reach Level 3+ of ACI Airport Carbon definitely be improved and thus we will give well aware that the “rewards” of our efforts Accreditation. We are now in the final stage proper attention to those passengers having are in the long term.” of development of the project, as all the their first impression of Naples at our airport.” preliminary activities are completed, and the Another project that is currently underway Ambitious climate action construction of the plans will start this year.” at the airport is the construction of the metro Last year, GESAC, operator of Naples station, which is expected to be complete Airport, implemented several projects New DHL cargo building, car in the next three to four years. Brunini says: to reduce CO2 emissions and launched rental facilities and metro station “Our expectations are high; we will be only environmental awareness campaign aimed 2019 will bring an array of development one stop from the business district, two from at energy consumption reduction, sustain- projects at the airport, including construction the central railway station and three from able mobility and waste management. For of a new cargo building dedicated to DHL, the centre of town. We hope to be seeing instance, it is substituting most of the vehi- new upgraded car rental facilities and a metro less traffic on the road system to and from cles and equipment operating at the airport station. the airport and seamless integration with with electrical ones, while also encouraging The new cargo building project will the high-speed train will surely enhance the the use of public transport for the airport develop a new logistic area of about enlargement of our catchment area and our staff. Brunini adds: “We are also active in the 9,000sqm, with two hangars and a service overall competitive position.” research field and we recently announced area for cargo operations. More than half While continuing its rapid expansion, a joint programme with the University of of the new cargo building will be dedicated Italy’s fastest growing airport is also focusing Naples to explore new sustainable mobility to DHL, which only began flying to Naples its efforts on catering for its growth. “We are solutions for passengers and operators.” a few years ago, yet its double-digit growth seeking to create a regional airports system Moreover, the airport has embarked needs new facilities to continue develop- with the airport of Salerno-Amalfi Coast, on a three-year project to create a power ing the business. “In 2019, when we deliver which is currently underdeveloped, under generation plant that will bring it to carbon the new cargo building, DHL will have the the management of one company. This neutrality. The power generation plant is appropriate operational environment to make would enable us to accommodate the designed to achieve energetic efficiency Naples Airport its gateway to Southern Italy.” doubling of traffic foreseen for the next two using methane gas to produce enough The rapid increase in traffic in the last or three decades, sustainably contributing electricity and hot water to serve the years has also pushed the airport to think to the development of our region. The stra- passenger terminal, the cargo terminal creatively in terms of improving the passenger tegic issues we need to face in the and other office buildings in close proximity experience. By 2019, the car rental facilities near future are to avoid a capacity crunch to the airport. “The reduction of CO2 emissions will be relocated from a more remote area and manage a sustainable growth of our may be estimated at 900 tonnes per year, to a closer proximity to the terminal building. infrastructure keeping the passenger experi- and this will help us, with other activities, “We believe that passenger experience will ence easy and exciting,” Brunini concludes.

Naples Airport continues to improve the passenger experience to provide a memorable first impression of Naples’ authenticity.

Spring 2018 Airport Business 61 VIENNA AIRPORT

Vienna Airport “promoting sustainable growth and boosting competitiveness”

Julian Jäger and Günther Ofner, joint CEOs, Vienna Airport, interviewed by Marta Dimitrova.

2017 was a record year for Airlines, Eurowings and easyJet. Long- of passengers and the Lufthansa Group Vienna Airport, featuring haul routes also significantly added to this responsible for 64.1%. While low-cost new all-time highs for the growth. carriers accounted for 16.4% of this volume, number of passengers “The partial consolidation of the Jäger explains that both business models handled in the Group and at Vienna European aviation market is the result are important for the airport. “Austrian Airport,” enthuses Julian Jäger, joint of high cost and competitive pressure,” Airlines in its role as a strong home carrier CEO and COO of Vienna Airport. Jäger comments. “We lost NIKI within the is important, and we have a very good A record high volume of 24.4 million context of this consolidation process. Even and growth-orientated cooperation with passengers travelled through the airport, if this gap has been filled and even over- the airline. In addition to Austrian Airlines, marking 4.5% growth on 2016. Last year’s compensated by other airlines, it should Lufthansa subsidiary Eurowings along record-breaking performance is all the more be mentioned that our growth would have with easyJet are the main growth drivers astonishing when you consider that airberlin been even higher with airberlin and NIKI.” at Vienna Airport. Other low-cost carriers ceased operations, causing Vienna Airport A total of 74 airlines operated at the such as Wizz Air will also develop this to lose its second-biggest customer, NIKI. airport in 2017 with Austrian Airlines, year. These kinds of airlines clearly define This gap, however, was quickly filled by the as an established network carrier, themselves on the basis of air fares, and success of other carriers, namely Austrian accounting for 48% of the total number are of immense importance for tourism.”

62 Airport Business Spring 2018 VIENNA AIRPORT

Julian Jäger and Günther Ofner, joint CEOs of Vienna Airport, are taking the airport a step further on its growth path in terms of revenue, passengers and air cargo. This year, construction work on the terminal development and the Air Cargo Center will be expanded to include a new logistic centre for temperature-sensitive pharmaceuticals, while the Airport City is also growing.

Indeed, this year the airport expects construction work on the terminal residents and employees working passenger growth of more than 3% with development and the Air Cargo Center at the site. The service at the Airport a substantial growth impetus provided will be expanded to include a new City will be expanded by a health by Lufthansa Group, and the low-cost logistic centre for temperature-sensitive centre in the near future.” segment from new carriers such as pharmaceuticals, while the Airport City Wizz Air, which will launch services is also growing. Günther Ofner, joint “Commercial offering – a significant from Vienna with three aircraft and 18 CEO and CFO, Vienna Airport, explains: source of revenue” destinations. “More than 1,000 new jobs will be created The airport has also recently been “Wizz Air’s decision to establish a base at the airport hub in 2018 thanks to the expanding its retail and food & beverage operation in Vienna and launch new routes new business location projects and the offer with local and international brands. confirms the attractiveness of our catch- expansion of existing operations. This “Shopping and food & beverage are ment area and stimulates new growth at year, DHL and Cargo-partner are opening of crucial importance and comprise Vienna Airport,” says Jäger. “Wizz Air is an their logistics sites in the Vienna Airport a significant source of revenue for the internationally-successful low-cost carrier region. Furthermore, construction activities airport, generating €49 million in 2017,” and we appreciate its expansion of flight will commence on Office Park 4 in the states Jäger. services for leisure passengers and the near future. It will increase office and “We are focusing on ensuring new flight offerings especially to the Eastern conferencing space in the Airport City an ongoing increase in quality and expan- European region, as this fits well with the by about 25,000sqm by 2020.” sion of our brand diversity, as well as geographical position of Vienna Airport.” A building on the southern side a mix of offerings featuring international Moreover, Vienna Airport launched its of Terminal 3 is also under construction and national brands. Recently, we put new incentive programme on 1 January, to enable a better connection between two restaurants of the internationally- designed to improve growth perspectives the terminals, adding an additional renowned celebrity chef Jamie Oliver into for airlines and safeguard the future of the 10,000sqm of shopping and restaurant operation at the airport and also opened hub. “The underlying objective is to lure space and waiting area. Jäger comments local brands.” new flight traffic to Vienna on the basis that when the building is operational in A strong aviation strategy combined of frequency increases and launching 2023 it will significantly improve the travel with frequency increases and new air- of flight service on new routes, as well experience and boost passenger comfort. lines such as Wizz Air will quickly fill the as to offer an attractive basis for airlines. Ofner adds: “With commercial space gap left behind by airberlin and NIKI. It is In turn, this will promote the airport’s in excess of 140,000sqm, office park poised to join the Group 1 traffic cat- sustainable growth and boost its competi- facilities featuring about 110,000sqm egory of airports (>25m pax per annum). tiveness,” Jäger explains. of office and conferencing space in the Moreover, terminal development projects future, various convenience stores and and further expansion of the airport’s retail New business projects and service facilities such as supermarkets, and food & beverage will undoubtedly expansion a pharmacy, fitness centre, 24/7 postal continue to make Vienna Airport one to Vienna Airport is also moving ahead partner and much more, Vienna Airport watch, in the pantheon of medium-sized on its growth path in terms of revenue, provides a comprehensive offering European hubs that are making strides in passengers and air cargo. This year, to travellers, as well as neighbouring all of their activities.

Spring 2018 Airport Business 63 Recognising progressive ideas in action INNOVATION SHOWCASE transforming airport performance and reputations

Schiphol and HMSHost pilot Deliveroo F&B delivery service

Schiphol, via the Deliveroo their gate. Although HMSHost and app or website. The we of course have Deliveroo meals are prepared a diverse range of have teamed at Kebaya and at The catering options in up to launch a pilot Market, The Grill and our piers, not eve- in which passengers The Oven located rything is available. flying from Pier E in the Street Food This initiative allows can order food and Market. Orders are us to broaden the drinks via their delivered by scooter service we provide smartphones and for a charge of €2.50. to our passengers.” have their order Tanja Dik, Director Dik also stated delivered to the of Consumer that the initiative departure gate Products & Services has a more practical within 15 minutes. at Amsterdam side, as it can help developments,” The wide range Airport Schiphol, Schiphol overcome she said. “If we see of meal options said: “Schiphol is the fact that space opportunities, we’ll is the first airport in can also be ordered always looking for for additional then implement Europe to partner The initial trial of as room service at ways to best serve catering outlets is them in the hope with Deliveroo, it is the Deliveroo F&B the Mercure Hotel, its passengers. This limited. “That’s why that we can improve not the first in the delivery service which is located is an extra service we come up with the passenger expe- world to do so. In at Amsterdam Airport Schiphol beyond passport that we would innovative concepts rience even further. November 2017, will run until the control in Departure like to offer them. like this and keep We are very eager Dubai International end of March and Lounge 3. Passengers spend a close eye on to hear our passen- also announced a will be followed by an evaluation Passengers can a relatively large trends in techno- gers’ feedback.” partnership with the period. order food and drinks amount of time at logical and digital While Schiphol food delivery service.

INNOVATION SHOWCASE

An F&B delivery service, a humanoid robot, peer-to-peer car rental and electronic bag tags can now be found in Europe’s airports, as Ryan Ghee reports.

A 120cm-tall can help to improve and is on hand to Munich Airport trials passenger- humanoid the passenger answer passengers’ robot is being experience. The questions. It is the facing humanoid robot trialled at robot, called “Josie first humanoid robot Munich Airport to Pepper”, can be equipped with (AI) technology to be as directions access. This creates explore if and how it found in Terminal 2 artificial intelligence trialled in a German to departure gates, a connection to a airport. and restaurants cloud service where Josie Pepper, and shops. The speech is processed, which awaits pas- test phase will be interpreted and sengers at the top used to find out linked to the airport of the ramp leading whether the robot data. Thanks to the to the shuttle con- is accepted by use of AI, over time necting the main passengers. the system will get terminal to the satel- Josie Pepper’s gradually better at lite building, speaks “brain” contains a combining questions English. It can high-performance with the relevant provide a range of processor with information to pro- information, such WLAN internet vide more precise replies. IBM Watson Internet of Things (IoT) cloud-based AI technologies “Josie Pepper”, a humanoid robot, is being trialled in Terminal 2 at Munich Airport. power the robot’s capabilities.

64 Airport Business Spring 2018 Recognising progressive ideas in action transforming airport performance and reputations INNOVATION SHOWCASE

Gatwick Airport partners with to renters. Octo dedicated Car & hosting this exciting Telematics systems Away parking bays. new scheme with peer-to-peer car rental start-up are also installed to Gatwick Airport’s Car & Away. monitor the vehicle Head of Car Parking The new service Gatwick qualifying criteria to earn up to £80 driving patterns. Gary Wallace said: offers passengers Airport is and the renting (€90) per week in Once the renter “We are always an alternative option hosting a new process. Their vehicle rental income, while returns, the vehicle searching for ways when it comes to peer-to-peer will also receive a owners of larger passes through the to provide new, renting vehicles car rental scheme, mini valet service, cars can expect same checking innovative and from the airport which allows people irrespective of to earn up to twice processes and is ground-breaking and gives them to rent out their whether it is booked that amount. Car & waiting for the services so we a chance to offset vehicles to others for hire while parked Away also ensures owner in the are pleased to be their parking costs.” while they are away at the airport. all vehicles are fully travelling. Following Renters can insured, cleaned and a successful trial find Car & Away’s meet RAC approved period, the airport available vehicles vehicle roadworthi- has partnered with via the company’s ness checks before start-up Car & Away partner, Rentalcars. being offered to provide a new com, when searching ‘Rent & Earn’ service for rental cars from for passengers, Gatwick. Once a alongside the other suitable match has existing long stay been found, the parking options at vehicle is available Gatwick. for collection from Upon registering dedicated Car & The ‘Rent & Earn’ for the service via Away parking bays, service allows travellers to the Gatwick parking located in the valet earn an income website, the vehicle arrivals area of the by offering their owner is provided South Terminal. vehicle for rental while they are with information Small vehicle away. about Car & Away’s owners can expect

Lufthansa Group embraces reusable, electronic bag tags

Lufthansa check-in via the chip. To ensure the Group has airline’s Android device does not get announced app to receive their damaged during the a partnership boarding pass and journey, the high- with BAGTAG, which baggage label. resolution e-paper will allow passengers Using a Bluetooth display is shielded by flying with Lufthansa, Low Energy (BLE) an impact absorbing SWISS and Austrian connection, the bag lens and the robust Airlines to use tag can then be and weather resistant electronic bag tags transferred to the enclosure protects instead of traditional BAGTAG device. This the BAGTAG during paper tags. allows passengers its journey. The BAGTAG to proceed directly The adoption of device, which can to bag drop upon the BAGTAG device be attached to arrival at the airport. is the latest example suitcases and bags The data is safely of Lufthansa Group using fastening transmitted thanks embracing innova- screws and a to the use of unique tion in the baggage mounting plate, hardware encryption space and comes has an e-paper technology, and all almost two years display which shows relevant informa- after Lufthansa all of the relevant tion is also stored made the RIMOWA Passengers flying with Lufthansa, flight information, on an embedded Electronic Tag SWISS and Austrian Airlines can use the electronic BAGTAG device. just like a paper Radio Frequency available to its bag tag. Users can Identification (RFID) passengers.

Spring 2018 Airport Business 65 OUTSIDE IN Insights from close, but not inside, the airports business

Roland Gerhards, CEO of the ZAL Center of Applied Aeronautical Research, interviewed by Ryan Ghee.

ZAL TechCenter: A shining example of industry progress and collaboration

n the air transport industry, some organi- pioneering ideas are being brought to life. sations pay lip service to “innovation” By its very make-up, ZAL is designed and “collaboration” but the reality is often to promote collaboration. The City of Iquite different. We live in a world in which Hamburg, Airbus Operations and Lufthansa every new product or service is described Technik each own a 20% share, and the as “innovative”, and protecting individual other shareholders are ZAL Association business interests often outweighs the for SMEs, Supply Chain and Startups; desire to collaborate more closely for the German Aerospace Centre (DLR); Technical Roland Gerhards, CEO of the ZAL Center of Applied benefit of the wider industry. University Hamburg-Harburg; University Aeronautical Research: “The When the ZAL TechCenter was officially of Applied Sciences; Helmut-Schmidt ZAL TechCenter provides the opened in Hamburg in March 2016, the University; and University of Hamburg. “The umbrella, under which the commercial and academic 26,000sqm facility was lauded as “the shareholders cover the complete process sectors will work together on world’s most up-to-date civilian aviation chain,” Gerhards highlights. At the ZAL the future of aviation.” research facility”. Roland Gerhards, CEO TechCenter, the innovation partners, research of the ZAL Center of Applied Aeronautical institutes, technology partners, and OEMs Research, proclaims: “The ZAL TechCenter and suppliers all operate under one roof. is the Galley-Bar-Module, which was created provides the umbrella, under which the Gerhards describes the six Technical by Diehl Comfort Modules with Lufthansa commercial and academic sectors will work Domains that are at the heart of the R&D Technik and was a Crystal Cabin Award together on the future of aviation.” being undertaken at the ZAL TechCenter. finalist in 2017. Also, two of the four IDL – So, two years after ZAL opened its doors, These are: Fuel Cell Lab; Cabin Innovation Innovation Award of German Aerospace is the facility really delivering on these grand & Technology; Air & Power Systems; winners in 2017 were teams from ZAL. One promises? Aerospace Production & Fuselage was an Airbus team focusing on printed The impressive facility includes laboratories, Engineering; Acoustics & Vibrations; electrics and the other was start-up Jetlite hangars, a virtual reality zone, an auditorium, and General Processes & Support Topics. for its jet lag-reducing LED lighting. trendy meeting rooms, and shared office “There are some cool things coming out Gerhards also explains how steps are space. ZAL is not a place for just talking of ZAL after nearly two years,” he states. being taken to promote collaboration on about innovation; it is a place where Examples are plentiful and among them a daily basis; after all, simply putting various companies in the same building or the same room does not necessarily guarantee ZAL has its very own virtual reality that they will work more closely with one lab, where ideas and concepts another. On this front, ZAL proactively can be brought to life using VR technology. organises a variety of events. For instance, “ZAL Meet the Tenant” allows tenants to introduce their research projects to other stakeholders, and the “X Meets Aviation” series brings partners together to explore cross-sector synergies. There is also a focus on promoting networking in a relaxed environment through initiatives such as the “ZAL Lunch Connection” and “ZAL After Work” get- togethers to ensure that people have a chance to meet other innovators from outside of their immediate circle. “It is all about the spirit of the people. We hope to offer the right environment for them to be innovative and they have the freedom from management to do that. They have to have the freedom to play around and explore new ideas,” Gerhards concludes.

66 Airport Business Spring 2018 ACI EUROPE WORLD General Assembly Hosted by: Congress & Exhibition 18-20 June 2018, Square, Brussels, Belgium

FOR FURTHER INFORMATION www.aci-europe-events.com

AIRPORT28 COMMERCIAL & RETAIL CONFERENCE & EXHIBITION

Hosted by:

18-20 March 2019 , Harpa, Reykjavik, Iceland

ACI-Events-2019.indd 1 23/02/2018 16:08 A4.pdf 1 26/02/18 10:49

C WORLD IS YOUR HOME, M

Y CM WELCOME TO MY

CY

CMY K İSTANBUL NEW AIRPORT! OPENING SOON OCTOBER 29TH, 2018

www.igairport.com

/igairport