SPRING ISSUE 2017

Every flight begins a t the airport.

Issue sponsored by:

A Scottish-English airports group prepares for Brexit – and greater European links

Interview: Amanda McMillan, CEO AGS Airports, Managing Director,

Airport Capacity & Air Fares Commercial & Retail The Airline Conversation New study reveals consumers paying Developments at Côte d’Azur, With Martin Gauss, CEO airBaltic more for flights from congested airports Rome Fiumicino, Budapest, and more

CONTENTS

06 08 10

OLIVIER JANKOVEC, AIRPORTS IN AMANDA MCMILLAN DIRECTOR GENERAL, THE NEWS OBE, CEO AGS AIRPORTS ACI EUROPE A snapshot of stories from A Scottish-English airports group Editorial: Taking us into around Europe simultaneously prepares for the unknown Brexit, more European links (and much lower taxes)

17 18 20

AIRPORT CAPACITY ACI EUROPE NEW YEAR CHALLENGAIR II & AIR FARES RECEPTION The Second International Security New study reveals consumers ACI EUROPE hosts its Annual Controller Competition 2017 paying €2.1 billion in higher air New Year Reception at the fares at congested airports European Parliament

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 Samita Brant [email protected] Danielle Michel Cover photo by Grant Pritchard © PPS Publications Ltd 2017 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 25 28 30

AIRPORT PEOPLE COMMERCIAL & RETAIL COMMERCIAL & RETAIL COMMERCIAL & RETAIL

Chris Annetts, Retail & Service A taste of the Côte d’Azur ‘Made in ’ key to Rome Fiumicino’s Montréal-Trudeau: New commercial Proposition Director, London new Pier E commercial offer areas reflect avant-garde culture

31 32 34 45

COMMERCIAL & RETAIL COMMERCIAL & RETAIL COMMERCIAL & RETAIL THE AIRLINE CONVERSATION ACI EUROPE Airport Commercial Budapest’s improved category mix Paul & Shark: ‘We see huge travel & Retail Conference & Exhibition and marketing support delivering retail development potential With Martin Gauss, CEO airBaltic sponsor and exhibitor news retail growth in Europe’

48 50 51 53

PASSENGER & BAGGAGE BAGGAGE HANDLING VIENNA AIRPORT AIRPORT PROCESSING SYSTEMS Vienna building on record traffic with Cork Airport ‘cementing new Making airport processes ‘easier, Bringing industry-leading solutions expansion and modernisation transatlantic connectivity’ more efficient and more comfortable and technology to airport baggage for passengers’ handling

57 60 62

AÉROPORTS DE LYON INNOVATION SHOWCASE OUTSIDE IN

Future Terminal 1 to ‘propel Aéroports Passenger-focused innovation Prof. Sicco Santema, Professor of de Lyon to a new level’ Marketing and Supply Management at TU Delft and Coordinator of the PASSME project HOST CLOSER TO PREMIUM GUESTS Norbert Kettner, Managing Director, Vienna Tourist Board

Having hosted over 14.9 million overnight stays in 2016, Vienna is not only considered to be an international magnet for tourism, art and culture, but also a global player in its capacity as a conference location. Almost 80 % of Vienna’s conference visitors arrive by plane. It is for this reason that Vienna Airport is a key strategic partner for the Vienna Tourist Board, as both are hospitable, global, smart and premium.

viennaairport.com/closerto EDITORIAL

Taking us into the unknown

By Olivier Jankovec, Director General, ACI EUROPE

s this magazine goes to print, the each of the EU27 Member States. There unlimited rights to operate within the EU UK is about to launch its with- is little doubt that this would be highly Single Aviation Market. The rationale for drawal from the European Union detrimental to connectivity and airports these restrictions primarily rests with the A (EU). This is a pivotal moment. on both sides. This is precisely what need to ensure fair competition, as well Brexit goes from being a rather abstract Michel Barnier, the Chief EU negotiator as airline ownership & control restric- debate, full of conjectures and easy politi- for Brexit, has just warned about – speak- tions. To operate freely within the EU cal posturing – to becoming a detailed ing of “severe disruptions to air transport” Single Aviation Market, airlines need to and complex negotiation, where politics amongst the most damaging conse- be subject to all EU aviation & competi- finally gets confronted with legal frame- quences of a no-deal scenario “for our tion regulations. They also need to be works and economic realities. people and our economies”. owned & controlled by EU nationals. Yet, entering into these negotiations But even if the EU and the UK agree The only cases in which the EU has is akin to entering terra incognita. We on exit terms, there is still plenty to worry granted full access within its avia- know what we are leaving, but we still do about in relation to what the new UK-EU tion market to non-EU airlines involve not know exactly what we are going to relationship could look like for aviation. and Norway. But that was con- get – and what we will encounter on the If carried out, the UK Government’s ditioned by both countries accepting way. For aviation in particular, the Brexit plan for a “clean break from the EU” all EU aviation & competition rules as negotiations are fraught with uncertainties (including from its Single Market for their own. While similar arrangements and risks. goods & services and the jurisdiction of could certainly be replicated with the These come primarily from the 2 year the European Court of Justice) means UK UK, they seem incompatible with the UK deadline that frames the negotiations, and aviation would no longer be part of the Government’s agenda of “taking back the fact that the EU will not start negotiat- EU Single Aviation Market. Instead, the control of our laws”. ing its new relationship with the UK until UK is looking at negotiating continued All in all, the Brexit negotiations are there is an agreement on its exit terms access to the EU Single Aviation Market exposing the intrinsic and inalienable – including the UK’s financial commit- – which is not quite the same, in terms of link between the Single Market and the ments and the status of EU citizens living rights and opportunities. wider EU legal and political set-up. As in the UK and vice versa. As explained Indeed, as a non-EU country, the such, they reveal the unique value of to us by the EU Task Force in charge of UK will be put on par with other ‘third- the EU for aviation. This is precisely why Brexit negotiations, this means that in the countries’ which have negotiated similar the European aviation sector (airlines, absence of an agreement on exit terms by aviation market access agreements with airports, ANSPs, the aerospace industry, March 2019, the UK would leave the EU the EU. These include the US, , business aviation and unions) stood up without its new relationship with the bloc Morocco, Jordan and Brazil. While the EU for the EU project on the occasion of its being defined. This in turn would result in has promoted a liberal approach in terms 60th anniversary – calling on the Heads aviation falling back on more restrictive of granting airlines from these countries of Government of the EU27 to protect, bilateral provisions between the UK and access to the EU, it has not granted them reform and strengthen the EU.

06 Airport Business Spring 2017 Celebrating the 60th Anniversary of the Treaty of Rome

2017 marks the 60th anniversary of the Treaty of Rome, With the EU project facing unprecedented which started the European Union (EU) project with the criticism and existential threats, now is the time to establishment of the European Economic Community – speak in defense of its achievements for aviation also known as the Common Market. Its objective was to (employers and employees) and consumers. The integrate trade and strengthen the economies of the area, 60th anniversary of the Treaty of Rome serves as a based on the underlying political vision for “an ever closer reminder of how far we have come. An opportuni- union among the peoples of Europe”. ty to take stock of what has been achieved and appreciate things that are now taken for granted For businesses across the EU, the Single Market and its or even dismissed. Airspace users (including rules act as an essential backbone providing opportuni- airlines and rotorcraft operators), airports, air ties that are now taken for granted – but which previously navigation service providers and aircraft & would have been regarded as unimaginable. equipment manufacturers are thus calling on Member States to preserve, reform and The business of aviation is no exception. Once a sector strengthen the EU. artificially constrained by an intrusive set of national regulations and political interference, European aviation As businesses and together with our employees, has thrived with the creation of the Single Aviation Market we cannot afford to lose the freedom, legal – with comprehensive common rules on safety, security, certainty, connectivity and prosperity enabled by environment, market access and consumer benefits as the Single Aviation Market. We are mindful that well as with the establishment of a social dialogue. these essential benefits are intrinsically linked to the wider political endeavours and dynamics of The Single Aviation Market has yielded extensive and the EU, and the fact that the Union’s greatest – yet affordable air connectivity for citizens and countless too often overlooked – achievement remains that businesses. It has also acted as an engine of growth and our continent has been enjoying the longest job creation for the wider economy. The EU is today home period of peace in modern times. to world-class aerospace companies providing quality employment to a highly skilled workforce while the Looking ahead, we are convinced that the EU is creation of related European technology initiatives such the only way to address the range of geopolitical, as SESAR and Clean Sky have also benefited the wider EU environmental, economic and social challenges aviation community which is working together under the that EU Member States are now facing. umbrella of the Advisory Council of Aviation Research in Europe (ACARE). Today, aviation in the EU accounts for 4.1% of the bloc’s GDP and supports 8.97 million jobs. Today, more than ever, it is our

In view of this track record, the European aviation shared responsibility to help community is today marking the moment of the 60th preserve the Single Market – anniversary of the European project to reaffirm its commitment to the EU. and thus stand up for the EU. Stockholm Arlanda Airports in Airport Handled more than half of Sweden’s the news total air passengers in 2016. Has begun to mix biofuel with normal jet kerosene in its fuel bunkers as standard Ensure that ACI EUROPE is up to procedure. Stockholm Arlanda joins Oslo Gardermoen in offering the more environmentally speed with the latest news concerning friendly fuel. Swedavia, which owns and operates 10 airports throughout Sweden, bought the fuel your airport by contacting us via through the Fly Green Fund, an organisation [email protected] or via that brings together aviation and biofuel bodies to help encourage the use of the fuel in Nordic our Twitter feed @ACI_EUROPE nations. Swedavia bought 450 tonnes, which was the amount its staff used while flying on business in 2016.

Dublin Airport Was Europe’s fastest-growing major airport in 2016 (+11.5%).

Dublin Airport has secured planning permission to build a small solar farm that will help power a large reservoir that delivers 500 million litres of water to the airport every year. The solar arrays will provide as much as 50% of the reservoir’s power needs. The array will stretch over 650sqm, according to planners. It will be connected directly to the pumping station adjoining the covered reservoir, allowing the electricity it generates to be connected to the airport’s internal power network. “The solar array can provide over 50% of the energy requirement of the reservoir. The solar array is essentially a renewable energy project, and is therefore considered to have environmentally sustainable benefits,” said , which operates Dublin and Cork airports.

Amsterdam Airport Schiphol Should be on course to process more than 65m pax in 2017.

Introduced its new website and app, which aims to provide each passenger with the most personalised experience possible. The app is meant to be a digital airport assistant. It will send you a message if your flight has been delayed or if your gate changes, for instance. It will also allow a passenger to easily see where s/he is at the airport, and where there is a chance to grab a quick cup of coffee before the boarding process begins. Moreover, the app offers an option to chat with an airport employee.

Lisbon Airport Grew by nearly 12% in 2016.

Charleroi Airport The growing popularity of Lisbon as a tourist destination has seen fast approach Broke the 7m annual pax mark in 2016. saturation point. The Portuguese Government signed a Memorandum of Understanding with Opened its new Terminal 2, which took just 10 VINCI-owned ANA Aeroportos de Portugal, months to build. Designed to boost passenger operator of Lisbon Airport, in February, establishing comfort and allow the airport to accommodate an integrated solution regarding airport capacity in future growth, the new terminal covers a floor Lisbon. This includes a new Master Plan for Lisbon area of 5,800sqm and boasts eight check-in Airport to extend it to its maximum capacity and desks, three departure gates and two baggage enhance its competitiveness as an international carousels in the Arrivals hall. Like Terminal hub, and the civilian use of Montijo air base (just 1, it also has unlimited free Wi-Fi, lounge, south of the Tagus River) for complementary point- refreshment facilities and a duty free for pre- to-point capacity. Construction work is expected to departure shopping. start in 2018. Luxembourg Airport Had eight months of double-digit growth in 2016.

Recorded an increase in cargo volumes in 2016, becoming the 6th busiest cargo airport in the European Union with 8.2% growth last year. It handled 821,000 tonnes of airfreight, allowing it to overtake Cologne-Bonn Airport. Luxembourg is to extend the cargo apron. The works for this extension started at the end of January and represent an investment of approximately €40m. They should be completed by mid-2018.

Frankfurt Airport Handled around 4m pax in its quietest month of 2016 (Feb) and just over 6m in its busiest month (July).

Secured a €400m loan from the European Investment Bank towards the expansion of its Terminal 3, which is expected to be opened in 2023. With a €3bn overall investment cost, the new Terminal 3 will enable to handle up to 14 million additional passengers a year. The funds will be used for the first construction phase of the new Terminal 3, forming part of the expansion of Frankfurt Airport.

Aeroporti di Roma Rome Fiumicino added over 1.3m annual pax between 2015 and 2016.

Inaugurated the new €390m Rome Fiumicino boarding Area “E” in December. The area, intended for extra Schengen flights, can accommodate up to six million passengers a year through 22 new gates and features an exclusive Made in Italy shopping arcade offering luxury fashion, and food and wine.

Dubrovnik Airport Should break the 2m pax barrier in 2017.

Partially opened its new Terminal C building on 6 February, but full-scale operations are expected to start by the start of summer 2017. The airport launched a €246m project to expand its land and airside infrastructure in 2010, due to rising passenger numbers. The entire project is expected to be completed in 2019 and is being largely financed by EU structural funds. The development also includes the construction of internal gas stations, a new aviation fuel tank and underground pit system for fuel filling, and installation of solar systems to improve energy efficiency.

Athens Airport Had double-digit growth in Jan 2017 (10%).

Emirates launched a new daily service from Dubai to New York’s Newark airport, via , on 12 March. This flight provides a year-round, non-stop daily service between the US and Greece – a service that has not existed since 2012.

Compiled by Inês Rebelo. AGS AIRPORTS

An interview with Amanda McMillan OBE, Managing Director, Glasgow Airport, CEO AGS Airports (which includes the airports of Aberdeen and Southampton). By Paul Hogan

A Scottish-English airports group simultaneously prepares for Brexit, more European links (and much lower taxes)

he obvious question to ask any senior director of a UK company these days, especially in T where the ‘stay’ vote was over- whelming, is the impact on their business of Brexit. This is especially pertinent to Amanda McMillan, who is one of 18 busi- ness, economic and political experts appointed to the ‘Standing Council on Europe’, which will advise the devolved Scottish Government on the impact of Brexit. “It’s no secret that Glasgow Airport and AGS lobbied publicly to stay. But the reali- ties are that you just have to get on and look forward – hopefully we can preserve the privileges of the Common Aviation Area, and certainly the ministers we talk to – in both the UK and Scottish govern- ments – think we will do, which, of course, is absolutely critical – we’ve not sensed anything to suggest that we’re not staying. Brexit is not what we wanted, but in busi- ness you need to be resilient to change, to look forward.”

Will Scotland slash Air at Glasgow by up to a third. Certainly, the Departure Tax? In 2018, the Scottish feedback that we’re getting is that the Government will introduce its Meanwhile, airports, and airlines oper- new ‘Air Departure Tax’ (ADT). Scottish Government can support a 50% ating in Scotland, are looking forward to “We’re cautiously optimistic reduction on long-haul flights.” the more immediate and direct impact there will be a significantly lower tax, certainly the of a significant reduction in taxation: feedback we’re getting is that Unserved route list gets shorter From April 2018, UK Air Passenger Duty the Scottish Government will While it is absolutely proven by many (APD) will be replaced with the Scottish support a 50% reduction on instances that airlines have curbed ser- long-haul flights.” Government’s new own powers to levy vices due to very high UK aviation taxes, an ‘Air Departure Tax’ (ADT) for which McMillan and her aviation team have still a bill has now been introduced to the managed to recently cross many cities Scottish Parliament. UK taxes range from that there will be a significantly lower tax,” off the must-have list of routes. “We have £13 to £450 (€15-€520) – rates which the says McMillan. “But we have to be realistic just got two routes that I really wanted governing Scottish National Party pro- too, now that we are getting into the detail. – Hamburg and Madrid – we especially posed halving when the new tax was first The SNP manifesto said that they are going wanted Madrid because of our Spanish announced in 2015. Recently, the Scottish to abolish it when they can afford to do shareholders (Ferrovial) – but European Government has been more reticent so, but the Scottish Government doesn’t links still need more development – about ‘abolition’ or a big ‘reduction’ of a have a majority, so there may have to be Brussels has been announced and we tax of which £300 million (€350m) was some compromise, some sort of a deal. have Rome, but I would like to have more collected at Scottish airports in 2016 – a Political action is supportive of an Irish- Rome frequency.” very attractive sum for the independently- style drastic reduction because there is The 2007-8 recession was particularly minded Scottish Government. strong recognition of the downsides of the unkind to Glasgow, with the airport badly “A year ago we were certainly very posi- tax. The airlines have risen to the challenge impacted by the demise of Flyglobespan, tive and we’re still cautiously optimistic too – says it will increase capacity Zoom and XL Airways, contributing to a

10 Airport Business Spring 2017 AGS AIRPORTS

Scotland’s Minister for Transport and the Islands Humza Yousaf celebrates the successful Korean Air charters, which return this year with a 25% capacity increase. “These services are a really good example of a big positive family effort across Scotland – the ‘Scottish effect’ – we get the services, and we get a stepping stone to more business with Korea. Maybe we’ll even get a seasonal route.” In other long-haul developments, Delta is starting a new seasonal daily New York JFK service in May.

Number 1 at many things, including ACI EUROPE Best Airport in the 5-10 million category. Growth means that this year Glasgow Airport will likely need to compete in the 10+ million bracket. decline from a high of 8.8 million passen- gers in 2006 to 7.2 million in 2009. In 2016 the airport celebrated its 50th year – and a record 9.36 million. While Ryanair made a high-profile entry McMillan on the Tram-Train with a new base in 2014, McMillan gives the big credit closer to home: “Jet2.com Glasgow Airport Access Project was the lynchpin in the turnaround and is now anchored in Scotland, particularly nnounced in November here in Glasgow with six aircraft – the 2016, the £144 mil- new equipment [orders of 30 737-800s] lion (€165m) Glasgow is bringing around a change in strategy A Airport Access Project which is directly feeding back to us – will use the existing railway higher utilisations, meaning that Jet2.com network, but will be linked to is much less seasonal.” the airport by a new light rail Despite the change in ownership and spur when it opens in 2025. The structure at AGS, which coincided with hybrid tram-train approach is the Ryanair move, McMillan maintains: expected to deliver an airport rail “Glasgow Airport has not changed – we link at a much-reduced capital still present the same opportunity. It’s not cost than a purely tram, or ‘heavy news to say that Ryanair changed their train’ solution. McMillan is very minds about which airports they wanted happy about the deal: “I think to work with, and when they become your the Tram-Train is great because it is tangible, it will pass by front doors, rather partner they are good partners.” than being buried in a tunnel – yet it can drop on to heavy rail and use existing While Jet2.com, Ryanair and easyJet infrastructure, which is also faster than tram. We want to get car use down from 85%. are heavily contributing to the airport’s Airport [which got its tram in 2014] is already achieving around 35% public accelerating growth with the continued transport access. Greater Glasgow is a large urban city (pop. 1.2 million) with a strong the development of point-to-point ser- public transport ethos, including popular use of its subway system. I think we vices, Glasgow Airport has become more could be looking at usage as high as 50% for international travellers.” interesting to other carriers attracted to scaled-up feed opportunities. A year

Spring 2017 Airport Business 11 AGS AIRPORTS

ago Air launched Paris services connecting Glasgow to the SkyTeam hub. McMillan says she does not view these developments with mixed feel- Talking to Airport ings and that they do not make it harder Business – McMillan takes a significant to make the case for direct routes. “We collaborative steer as will always need big hub connectiv- leader of the airport ity. Indeed, the health of these services and also chair of Glasgow Tourism and also serves to demonstrate the demand Visitor Strategy Board: for the city and region – the more hubs “Delta has especially we have connections to, the more we praised the way that ‘Glasgow does not will develop. After all, we have offered tire’ in support for the Heathrow connections for half a century, New York route, which now we also offer the considerable choice launches in May.” of onward connection with a twice-daily Emirates service. So, in fact, we chased for five years. A year later the route sits well with easyJet – it’s very complementary.”

Supporting long-haul: ‘Glasgow does not tire’ Turning to more direct long-haul opportunities from Glasgow, McMillan says: “We would like to see more West Coast – Boston and Chicago – more Canada and, of course, something in Asia.” The airport has just announced that Korean Air will increase its char- ters to four rotations this year – a 25% increase. “We put a lot of effort into As well as boss of Glasgow, McMillan is CEO of the whole arranging these, perhaps at a risk that AGS Airports group which was formed in 2014 in a the effort could be seen as dispropor- partnership between Ferrovial and Macquarie. The new AGS corporate image fuses the colours of the constituent tionate, but the Korean Air service is a airports – red for Aberdeen, dark blue for Glasgow, and really good example of a big positive light blue for Southampton. family effort across Scotland – every- one was really keen to see it happen. This engagement with people, agencies and other stakeholders underscores the McMillan also reports that last year’s projects, but the assumptions remain con- ‘Scottish effect’ – we get the services, new Air Canada Rouge Toronto seasonal sistent in that we’ll avoid a second . and we get a stepping stone to more route performed well: “…their load fac- We are, however, investing in additional business with Korea. Maybe we’ll get a tor was in the target range – and again stand capacity to the west of the airfield seasonal route – and we get the lasting there was a significant amount of onward which will accommodate both Code E and halo locally and on the other side of the connectivity – as much as 50% – heading Code C aircraft. The Glasgow City Deal world where we need to permanently anywhere from Calgary to New York. Air Infrastructure Investment Programme market Scotland.” Canada is a powerful brand and we’re all will also see nearly £200 million (€230m) Another SkyTeam carrier – Delta – is working on its growth here in 2017.” invested in creating a new rail link and an starting a new seasonal daily New York After last year’s very good year McMillan airport business park capable of accom- JFK service in May. “Delta has especially agrees: “We’re now into uncharted terri- modating up to 16 new aircraft hangars praised the way that ‘Glasgow does not tory, as we’d never been above 9 million together with high quality logistics, manu- tire’ in support for the new route. The air- before. Some of our growth is ‘peaky’ – facturing and office space.” port and the city are indeed embedded although becoming less so as our leisure – when we were struggling in 2010 we market develops into what we call ‘sum- AGS: ‘One group, sat down with the city and championed a mer holiday plus’ – with travellers taking three distinct airports’ way of working together that is excep- the opportunity for incremental weekend AGS Airports was formed in 2014, after tional and seamless to the extent that breaks, as well as business.” the airports of Aberdeen, Glasgow and today I chair the Glasgow Tourism and Glasgow’s growth rate sees it get- Southampton were unravelled from Visitor Strategy Board. This unique collab- ting slightly ahead of itself – the current Heathrow Airport Ltd (HAL). As well oration takes us over the line – we’ve won masterplan, drafted in 2011, forecast as being Managing Director of Glasgow the Delta service and bookings are look- 10.4 million passengers in 2020, which Airport, McMillan is CEO of the whole ing fine. It’s not going to be year-round it is now on course to reach about two AGS group – itself a partnership between yet – although United’s Newark services years early. Improvements costing some Ferrovial, which remains a significant HAL are – but we will set to work at extending £50 million (€60 million) are ongoing, but shareholder, and Macquarie, which has the seasons with perhaps the route start- McMillan thinks that capacity will meet major investments in the airports of Brussels, ing around Easter instead of May.” the challenge: “We have revised some Copenhagen, Delhi, and Hyderabad.

12 Airport Business Spring 2017 Thank you for voting Heathrow

World’s Best Airport Shopping 8th year in a row Best Airport in Western Europe 3rd year in a row World’s Top 10 Airport 5th year in a row

Best Airport in Europe Amongst airports with over 40 million passengers 2nd year in a row AGS AIRPORTS

McMillan says of AGS: “Our mantra is ‘one group three distinctive airports’ – we have no intention of running them at a group level – the airports are responsible for their own destiny.” As CEO McMillan says her job is “to assure myself – I look carefully at any plans – such as the multi-million pound 50% terminal exten- sion at Aberdeen – I like to see what the airport boards are going to discuss, and I keep a close oversight of safety, but I’m a non day-to-day CEO of those airports, the local teams run them and we want to keep the passion local.” However, McMillan says there are still AGS group benefits: “We have shared IT platforms and shared procurement. But in developing an AGS brand we don’t want to become an unwieldly group. I used to work for Diageo when that brand was created and it’s a very similar As AGS CEO McMillan says: “Our mantra is ‘one group three distinct thing. Diageo was a strong corporate airports’ but I do assure myself – I look carefully at any plans – such identity on many levels, but it did not as the multi-million pound 50% terminal extension at Aberdeen.” (Unveiled here in 2016 along with Scotland’s First Minister Nicola drown out the brands such as Guinness Sturgeon, and Carol Benzie, Managing Director of .) and Smirnoff. In the same way people working for, and with, our 15 million pas- senger airport group will see that AGS to get them… AGS is also asked for million passengers in 2014, to 3.01 million means something will be done to similar sharing.” last year. However, 2017 has seen the a standard.” first year-on-year growth (a modest 1% There are also other benefits of McMillan on Aberdeen in February, but a considerable reversal an extensive network of common and Southampton of double-digit decline), although the ownership: “I have people on my board Aberdeen Airport: The reduction in oil decline in offshore helicopter move- involved in running airports from prices – down by more than half since ments (-10%) persists. Heathrow to Hyderabad. This produces 2012, has been a good thing for the McMillan forecasts: “It is unlikely that the chance to get some pretty good aviation industry, but not for Aberdeen oil and the offshore industry will take advice and shared experience, anything Airport which has been dominated by Aberdeen back to where it was, but from digital advertising in Copenhagen, North Sea offshore oil and gas indus- there are other opportunities. If you look to questions about air bridges and try exploration. The airport has been hit at how the helicopters are now operat- how long our other shareholders took hard, declining from a record high of 3.76 ing, they are providing changeovers to the rigs every three weeks instead of two because of cutbacks and competi- tion. That also means that these same May 2016: KLM returns to Southampton, giving AGS key connectivity across five continents. “Management is about being as strong as oil workers will fly in less frequently on you can with your size and shape – and if there is a step-change airline services from the UK, Norway needed at Aberdeen, Glasgow or Southampton, then AGS will do it.” and elsewhere. This is a re-basing of the offshore operators’ cost base, and I do not think it will go back. But being more competitive is not a bad thing. And then you must look at other things in Aberdeen – tourism will get a considerable boost from the new conference and exhibition centre, while the proposed £11 billion (€13bn) mega-merger of Standard Life and Aberdeen Asset Management shows the importance and scale of its financial community. : Serving the UK’s famous south coast port city, Southampton Airport had 1.9 million passengers in 2016 – up 10% on 2015 (1.77m). McMillan defines the AGS desire: “We want to get Southampton back to 2 million – to concentrate on product and to make it as efficient as possible. Management is about being as strong as you can with your size and shape – and if there is a step-change needed at Aberdeen, Glasgow or Southampton, 14 Airport Business Spring 2017 then AGS will do it.” Threat detection technology

Testing, evaluation and validation

Inspection team training

battelle.org/aviation-security ADVERTISING FEATURE

hen the European Commission set the Is your airport ready Standard 3 deployment W agenda for hold baggage screening, the 2020/2022 deadline seemed for Standard 3? far away. But factor in time for planning and implementation and the mandate for Standard 3 compliance is fast approach- Insights on getting started ing. At several recent industry conferences, airports have been discussing the impact of upgrading their explosive detection sys- Another aspect for consideration: the tems (EDS) and what’s holding them back manufacturers experience in delivering on from getting started. production and implementation promises. “Airports are looking for solid advice “There is a worry that the cur- backed by data on what they need to rent deployment rate calls for a huge invest in,” explains Anne Marie Pellerin, production of equipment. Can this Managing Partner at Lam Lha, a security demand be met?” says François Mesqui, innovation consultancy firm. “They want Morpho Detection’s Vice President of the assurance that when they upgrade Government Affairs. “Our past perfor- their systems to Standard 3-approved mance says yes. Following the attacks EDS, their investment will also meet future on September 11th 2001, the demand requirements and future growth needs.” for EDS units increased dramatically. In What are the options available? How one year, production lines were able to should airports get started? According to produce ten times as many machines Martin Parker, Morpho Detection’s Regional as they had before, with teams ready to As Morpho Detection’s Regional Sales Sales Director for the UK, getting clear on implement and service them.” Director for the UK, Martin Parker has helped airports successfully upgrade your individual airport or terminals needs is “Going to Standard 3 is a big invest- to Standard 3. the first step. ment for airports which might feel “As the deadline in the UK is 2018, I’ve overwhelming in the beginning,” con- spent that last four years working with cludes Parker. “But if you work with Get further insights and Standard 3 airports of all sizes, all with completely dif- an experienced supplier, you’ll have a best practices by visiting www.morpho- ferent requirements – from Newquay to trusted advisor to help guide you every detection.com/APTB or contact us at Heathrow, Bristol, and others,” step of the way.” [email protected]. he points out. “The key has been helping each customer find the right solution for each situation. Working in partnership, we Our CTX 9800 DSi™ is ECAC Std 3-approved for 0.3 m/s & discuss space requirements; networking 0.5m/s. © 2017 Morpho Detection, LLC. All rights reserved. and redundancy needs; options for in and out of gauge; and passenger counts to get prescriptive on how many machines are truly needed.” Parker further advises airports to select the EDS supplier first, investigating the different machine capabilities before they actually go to tender. “Upgrading to Standard 3 EDS requires redesigning the baggage handling system. If the BHS supplier knows the exact dimen- sions and performance characteristics of each machine, they’re better positioned to optimise the system design,” explains Parker. In evaluating the capabilities of different EDS machines, it’s important to look at overall availability and performance data, platform scalability, power consumption rates, and training and service options to ensure your investment will be supported to last the next 15 to 20 years. Site visits are helpful, as well as talking to airports that have recently gone through the same process.

The information, materials, and opinions contained in this guide are for general information purposes and your convenience only. They are not intended to constitute legal or other professional advice and should not be relied on or treated as such. They do not constitute any guarantee and/or implied warranties.

16 Airport Business Spring 2017 AIRPORT CAPACITY & AIR FARES

ast year, European airports welcomed over 2 billion pas- New study reveals sengers for the very first time, L with passenger traffic growth in Europe averaging 5.1% over the full consumers paying €2.1 year. While this strong trend of increas- ing air traffic is good news for airports and the economies of the cities and billion in higher air fares at regions they serve, the need for more airport capacity is becoming more and congested airports more apparent. All the more so, when you consider the implications of a lack of airport capacity – connectivity, As warnings of the looming airport capacity crunch become efficiency, environment, punctual- ity, operational flexibility – all of these louder in Europe, a new study reveals that its implications things start to suffer. go beyond airport operations and actually end up costing A new research study by SEO Economics & Cranfield consumers. Report by Inês Rebelo, edited by Elliot Bailey. University has uncovered another implication – higher ticket prices for air travellers. They conducted a thorough With passenger demand to fly at peak Airport Charges Directive, as they prove investigation into air fares at con- times continuing to rise at congested that lower airport charges through more gested airports – while also checking airports, but the supply of aircraft & air regulation would not result in lower airport charges levels at the airports services remaining constant, prices go air fares for consumers and that any in question. The comprehensive study up – meaning that passengers have to related cost-savings would go directly entitled The Impact of Airport Capacity pay higher air fares to airlines if they to airlines’ profit margins instead. Constraints on Air Fares finds that wish to fly to/from these airports. And At its New Year Reception at the European consumers are paying €2.1 with no spare airport capacity, market European Parliament in January – in billion a year in additional air fares, due access is blocked – effectively prevent- the presence of representatives from to capacity constraints at airports. ing more airlines from entering and several major airlines – ACI EUROPE How so? Scarce capacity ultimately competing down air fares. Incumbent released a 20-page synopsis of the means reaching the limit of the number airlines reap the benefit, by being able study’s key findings, entitled How of aircraft that can arrive at or depart to charge more to fly – this additional Airport Capacity Impacts Air Fares. from an airport – particularly at the amount is known as a ‘scarcity rent’. Announcing the publication, Augustin busiest times of the day or year. And The study finds that airlines can and de Romanet, President of ACI EUROPE & while economic regulation of larger air- do increase their fares as a reaction Chairman and CEO of Aéroports de Paris ports keeps airport charges low – and to higher demand. These findings are S.A. - Groupe ADP, said “This new study even below actual airport costs in some relevant to the European Commission’s spells it out very clearly. Incumbent cases, it does not suppress demand. recently launched evaluation of the EU airlines are collecting scarcity rents at capacity constrained airports – which of course undermines their incen- tive to support capacity expansion and also helps explain why they so fiercely oppose increases in airport charges. By 2035, passengers will be paying €6.5 billion a year in higher fares, specifically due to a lack of airport capacity.” A new research study To tackle this problem, one solu- by SEO Amsterdam tion is to increase airport capacity Economics & Cranfield University, entitled The by incentivising investment in airport Impact of Airport Capacity infrastructure. Airports need to expand Constraints on Air Fares, to align their capacity with increas- finds that European consumers are paying €2.1 ing demand. More airport capacity billion a year in additional will allow for more airline capacity, for air fares, due to capacity more competitors in the market, with constraints at airports. ACI a cascade of other positive effects too EUROPE has released a 20- page synopsis of the study’s (operational flexibility, more efficiency key findings, entitled How and better punctuality). Airport Capacity Impacts EUROCONTROL estimates the airport Air Fares. capacity crunch will see 12% of demand unaccommodated by 2035, mean- ing that 237 million passengers will be unable to travel. That’s only 18 years away – not a long time in the world of infrastructure planning.

Spring 2017 Airport Business 17 ACI EUROPE NEW YEAR RECEPTION

n 24 January, ACI EUROPE held its New Year Reception ACI EUROPE hosts its Annual at the European Parliament in O Brussels. This year’s Reception was kindly hosted by MEPs Deirdre Clune New Year Reception at the (Group of the European People’s Party) & István Ujhelyi (Group of the Progressive Alliance of Socialists and Democrats) European Parliament and attended by key officials from the EU institutions and agencies, as well as various representatives from across Olivier Jankovec, Director the aviation sector, including airlines, air General, ACI EUROPE; Dr navigation service providers and aircraft Edward Zammit Lewis, manufacturers. Maltese Minister for Tourism; MEP Ismail Ertug (Group of the Progressive Alliance of Socialists and Democrats); MEP Deirdre Clune (Group of the European People’s Party); Augustin de Romanet, Chairman & CEO, Aéroports de Paris S.A.-Groupe ADP & President of ACI EUROPE; and MEP István Ujhelyi (Group of the Progressive Daniel Burkard, Deputy Airport Director, Alliance of Socialists and Non-Aviation Business Development, Democrats). Moscow Domodedovo Airport; Giorgio Medici, Head of Customer Care, SEA Aeroporti di Milano; and Catherine Mayer, Vice President, SITA. Robert Sinclair, CEO ; Matej Zakonjšek, Head of Cabinet of Violeta Bulc, EU Transport Commissioner; Jurij Mežnaršič, Advisor to CEO, Aerodrom Ljubljana; and Nazareno Ventola, CEO Aeroporto G Marconi di Bologna.

Alberto Martin, Managing Director, , Aena; Javier Martinez, Director General, ACI-LAC; Ignacio Biosca, Head of Airline Relations and Airport Marketing, Aena; and MEP Inés Ayala (Group of the Progressive Alliance of Socialists and Democrats).

Dr Michael Kerkloh, President & CEO, ; Christophe Dussart, Head of Sector – Internal Market of Aviation, European Jos Nijhuis, President & CEO, Schiphol Commission; and Vanessa Haumberger, VP Group, and Thomas Woldbye, CEO Political Affairs, Munich Airport. Copenhagen Airports.

18 Airport Business Spring 2017

CHALLENGAIR II

Teams were required to solve a situational exercise: each contestant was supposed to find prohibited items hallengAir II was organised by concealed in the clothing and baggage the Budapest Airport Security of a fake passenger within 5 minutes. Directorate on 7 March, 2017 C at Budapest Liszt Ferenc International Airport. The event was organised on the initia- tive of security personnel of Budapest Airport for the second time. The inter- national contest of security screeners started out as an in-house competition at Budapest Airport three years ago and it became obvious right at the outset that it would be worthwhile to take the profes- sional contest to an international level. Teams of screeners from Leonardo da Vinci-Fiumicino Airport, Rome; Liszt Ferenc International Airport, Budapest; Ljubljana Jože Pučnik Airport; Naples International Airport; Riga International Airport; and Václav Havel Airport , took part in the competition. The aim of the competition is to pro- vide motivation of security employees, share professional experiences (including know-how and training), communication and connection building among European airports security teams, and promote the importance of passenger security for other employees at the airport. The competition consisted of three parts. First, the participants had to prove their theoretical skills in the state-of-the- art training centre of the airport, which was recently inaugurated. The second challenge was to find 20 prohibited items representing a threat to aviation secu- rity from a hundred X-ray images. Lastly, teams were required to solve a situational ChallengAir II: The Second

ChallengAir II was organised by the Budapest Airport Security Directorate International Security on 7 March, 2017 at Budapest Liszt Ferenc International Airport. Teams of screeners from Leonardo da Vinci- Fiumicino Airport, Rome; Liszt Ferenc Controller Competition 2017 International Airport, Budapest; Ljubljana Jože Pučnik Airport; Naples International Airport; Riga International Airport; and Václav Havel Airport exercise: each contestant was supposed Prague, took part in the competition. to find prohibited items concealed in the clothing and baggage of a fake passenger within 5 minutes. Experts from the Aviation Security Department of the Directorate were involved in compiling the tasks for the contest. The jury panel and professional supervision were provided by the representatives of the Airport Police and the Office for Air Transport of the Ministry of National Development. The winning team was from Leonardo da Vinci-Fiumicino Airport, Rome, with the team from Liszt Ferenc International Airport, Budapest coming in second place, and the team from Riga International Airport finishing in third place.

20 Airport Business Spring 2017 ADVERTISING FEATURE

Athens International Airport opened in 2001 in a pioneering public-private partnership, which saw it become the first major greenfield airport with the participation of the private sector. The airport has demonstrated a successful development strategy in both aeronautical and non- aeronautical activities, and exports its know-how to aviation partners around the world.

Athens International Airport: Exporting know-how to aviation partners around the world

ast year saw two important anni- versaries for Athens International Airport (AIA) – in March 2016 it L celebrated 15 years since the official opening of the airport, while June marked 20 years since official commence- ment of the airport concession. It is a period punctuated by important moments, as the airport passed from adolescence to maturity, which has seen the development of a successful business model. Despite the difficult economic situation in Greece, AIA has consistently exceeded expecta- tions with results that have outperformed macroeconomic indicators. AIA shares the benefits of knowledge acquired by operating a world-class airport handling 20 million passengers in 2016 (+10.7%), and the experience gained from consultancy and project implementation services offered at airports around the world. This strong record of international consulting experience has seen it provide services in countries including Albania, Meanwhile, airports in the Middle East it is trusted by international clients aim- Australia, Belgium, China, Cyprus, Germany, are, of course, rapidly expanding their ing to achieve traffic growth, route network Hungary, India, Jordan, Kazakhstan, the infrastructure. AIA has provided services in expansion, and high levels of customer sat- , Poland, Portugal, Qatar, Russia, safety and airside operations at an airport isfaction. It has provided airline marketing Saudi Arabia, Singapore, Thailand, Tunisia, in Qatar, while in Jordan it has delivered consulting services to international airports and the UAE – a wide geographical spread. consulting services to an international in Russia and the UAE, among others. The broad range of services offered airport in terms of baggage handling AIA was also winner in the 10-25 mil- centres on building flawless airport systems, IT & telecommunications, and lion passenger category at the 2014 operations across all aspects of the concessionaire technical support. Among ACI EUROPE Best Airport Awards, while business, from designing a competitive the myriad projects AIA has undertaken in 2013 AIA received the top European marketing strategy, right through to in the United Arab Emirates are develop- environmental airport award at the ACI maximising the value of Information & ment of the IT strategic master plan for a EUROPE/ACI World Annual Congress. Communications Technology assets, national aviation authority, user training on AIA’s team of specialists can help ensure sharing ‘green’ methods of operation, airport systems, and provision of passen- the design of an effective environmental ‘Airport City’ development, smart asset ger survey services. management policy, which assesses local management, quality systems services, and environmental conditions, selection and ground handling services. Prestigious industry awards implementation of appropriate initiatives, Having hosted the 2004 Olympic This portfolio of services, and commit- provision of training, and monitoring the Games, Athens was in a unique position to ment to customer satisfaction, has been whole range of environmental manage- help China’s airports prepare for the 2008 globally recognised through over 50 ment initiatives. Beijing Olympics. Indeed, AIA provided industry awards. AIA is the most awarded AIA itself recently achieved Level 3+ planning support and readiness prepara- airport by Routes for the excellence of its of ACI’s Airport Carbon Accreditation, tion for transportation management and marketing efforts, most recently winning thereby becoming the first carbon neutral off-airport processing for Beijing 2008. at both Routes Europe 2015 and 2016, and airport in Greece.

Spring 2017 Airport Business 21 Reflecting the dynamism and diversity of people AIRPORT PEOPLE at the heart of the airport business

Chris Annetts took up the role of Retail & Service Proposition Director at London Heathrow last July, at a time when the airport was continuing to review its retail offer. Heathrow is committed to providing a convenient and tailored commercial experience for travellers, with a fresh focus on digital services, as Annetts explains to Ross Falconer.

n a 13-year career at London Heathrow, Chris Annetts has held a Heathrow retail boss taking number of senior roles across the busi- I ness, within food & beverage, passenger experience, airline business development, fresh look at tailored, digital services, and digital. In July 2016, he was appointed Retail & Service Proposition Director, having most recently been Director commercial experience of Commercial Passenger Services. “I have been lucky enough to work in a number of areas, all of which play a part in contributing to the experience of fly- London Heathrow continued to review Understanding what the ing through Heathrow,” says Annetts. “In its retail offer in 2016, aiming to learn passenger wants the last few years we have really strived from the success of projects like the £40 The £40 million (€46m) investment in to improve these areas of the business million (€46m) upgrade to the luxury offer Terminal 5 was completed in December and, as a result, we now have around 300 in Terminal 5. It also worked with existing 2015, bringing 23 iconic international retail and food & beverage outlets across luxury partners to identify opportunities fashion and luxury brands under one four terminals, the world’s first personal to grow the business and offer passen- roof, including Louis Vuitton’s arrival at shopping service in an airport, and pas- gers the latest store designs and product Heathrow. Terminal 5’s new Personal senger ambassadors and volunteers ranges. “Last year we also introduced Shopping Lounge features a fully inter- during peak travel periods. We also offer several exciting pop-up units,” Annetts active mirror, allowing travellers to post a number of family facilities, including explains. “These are great because they photos and stream live videos onto their play areas in all terminals, and ‘kids eat give our frequent passengers a new social media networks for feedback on free’ offers during peak holiday times. It and varied retail and dining offer every potential purchases. has been fantastic to play a role in these time they fly, and they mean we can trial Meanwhile, the redevelopment of success stories.” new brands to Heathrow. The new Harry Terminal 4 is almost complete. “This year, Annetts’ pre-Heathrow career included Potter pop-up and Hair Express salon in we are focusing on Terminal 3 to under- positions at the then-BAA-owned London Terminal 5 arrivals are great examples stand what the passenger wants in this Stansted Airport, and retailer Hargreaves of this. They give us, and the retailer, the space and how we might improve the Sports. “All of my roles prior to Heathrow opportunity to test out a new service or retail offering as part of that,” Annetts were commercial and customer-focused,” product and collect feedback from comments. “We are constantly developing he says. “I learned that delivering excel- our passengers.” our retail offer to respond to the changing lent service combined with the right range This progressive approach has reaped passenger mix and their needs. We do this of products is key to delivering sustain- rewards. Retail revenue grew by 6% to in a number of ways: based on the demo- able growth, and this is the core part of £602 million (€694m) in 2016, and a simi- graphics of passengers, using research, my current role.” lar increase is expected in 2017. customer relationship management, and feedback from our services team. The pop-up stores also help us do this from a retail point of view because we can trial new brands, innovations and services, and then we can let our passengers decide whether they like them or not.”

22 Airport Business Spring 2017 Reflecting the dynamism and diversity of people at the heart of the airport business AIRPORT PEOPLE

Chris Annetts curriculum vitae

Chris Annetts has 13 years’ experience with Heathrow, taking up his current role of Retail & Service Proposition Director in July 2016. His previous Heathrow positions include:

• Director of Commercial Passenger Services • Head of Commercial Planning • Head of Airline Business Development Star Alliance, Terminal 1 & 2 • Head of Category Food & Beverage, Health & Beauty • Senior Account Manager

PRIOR TO HEATHROW:

• Head of Retail Operations, • Regional Sales Manager, Hargreaves Sports

Selecting experiences and purchases from home This year, Heathrow is taking a fresh look at its digital services and how they join up with each other to make the pas- senger experience as smooth as possible. Improving pre-awareness of services such as Reserve and Collect, and devel- oping pre-booking tools, are designed to give passengers enhanced convenience and an experience tailored to their spe- cific choices. Heathrow Terminal 5’s new Personal Shopping Lounge features a fully interactive mirror, allowing travellers to post photos and “We want to get to a point where our stream live videos onto their social media networks for feedback passengers can browse and select the on potential purchases.

experiences and purchases they want in the comfort of their home,” Annetts Chris Annetts, Retail & Service Proposition Director, explains. “This means having their favour- London Heathrow Airport: ite food ready to eat as they arrive, and “We want to get to a point tailored wayfinding onto their flight using where our passengers can browse and select the Beacon technology while they are here. experiences and purchases Customers will then leave the UK feeling they want in the comfort comfortable in the knowledge that their of their home. This means having their favourite food onward travel is also prepared for their ready to eat as they arrive, journey home.” and tailored wayfinding 2017 marks a new era for Heathrow, onto their flight using where this level of convenience is crucial Beacon technology while they are here.” to engagement. “The only way we can succeed and improve our service is by providing many more of our custom- ers with a more convenient and tailored experience to suit their individual needs, so that is definitely a focus this year,” Annetts concludes.

Spring 2017 Airport Business 23 THE FUTURE IS OURS… In 2025, the world will be richer, older, more crowded and more expensive. Travel will be a lifestyle statement and global consumers will expect unique experiences that cannot be accessed anywhere else in the world.

As emerging trends become established, consumers will look for foods that are authentic, are served in a relaxed and informal style and that can offer them real health benefits. They will want experiences that are truly personalised, and to be digitally connected so they can make the best of their visit to the airport.

The time is right for a new approach and SSP is the right partner to help you take it. Find out more at: www.foodtravelexperts.com

La Tarte Tropézienne at Nice Côte d’Azur International Airport, from SSP AIRPORT COMMERCIAL & RETAIL

A taste of the Côte d’Azur

The €45 million commercial renovation at Nice Côte d’Azur Airport is nearing completion, with a range of tailor-made, unique concepts that convey a true sense of the Riviera. Filip Soete, Chief Commercial Officer, tells Ross Falconer how Nice Côte d’Azur Airport has realised its vision of “the most surprising commercial experience in a European airport.”

hen launching its commer- more seating and lounges doubled in size. cial redevelopment three This is taking place against the back- years ago, the Nice Côte drop of positive traffic figures. While the W d’Azur Airport ambition terror attack of 14 July 2016 initially saw was clear – to create “the most surpris- visitor numbers to Nice fall, the airport ing commercial experience in a European handled 12.4 million passengers last airport.” The Terminal 1 refurbishment year (+3.4%). Commercial revenues in the was completed in May 2016, and Terminal renovated Terminal 1 have also yielded 2 will be 90% complete this May, so ACI strong results. “We have met our objec- EUROPE Airport Commercial & Retail tives for Terminal 1 in terms of revenues, Conference & Exhibition attendees will with turnover up by 20%, so we are very Filip Soete, Chief Commercial see the results first-hand. happy with that and it is in line with what Officer, Nice Côte d’Azur Airport: “We have met our Filip Soete, Chief Commercial Officer, objectives for Terminal 1 Nice Côte d’Azur Airport, is the driv- in terms of revenues, with ing force behind these developments. turnover up by 20%, so we are In conversation with Airport Business, very happy with that and it is in At the heart of the line with what we expected.” he describes a “differentiated offer – new Terminal 2 from entry level to upscale level” and “a commercial offer Mediterranean approach.” is an 840sqm walkthrough The €45 million commercial invest- store operated we expected, despite the difficult environ- ment has seen 11,000sqm in Terminal 1 by Lagardère ment,” says Soete. “We are very confident impacted by the revamp, with retail space Travel Retail for this summer. We have a strong aviation under its Aelia increased by 160%, lounges by 70% and Duty Free brand, programme – Qatar Airways is returning seating spaces by 60%. In Terminal 2, which opened on with a five times weekly 787 service to meanwhile, 23,000sqm is being updated, 9 February. Doha, and easyJet is increasing its sched- with 110% more commercial space, 90% ule – so we are optimistic about 2017.”

‘Playful New Luxury’: Walkthrough store At the heart of the new Terminal 2 com- mercial offer is an 840sqm walkthrough store operated by Lagardère Travel Retail under its Aelia Duty Free brand, which opened on 9 February. Mirroring the passenger route in Terminal 1, all travel- lers in Terminal 2 pass through a single security check area before entering the walkthrough store. The aim is to provide passengers with a fluid, simple route through the terminal. “In opening this new route within Terminal 2, we are able to culminate our vision to offer ‘the most surprising com- mercial experience in a European airport’ with an emphasis on sense of place and with brands such as Fragonard, L’Occitane, Lac, and Gas very much related to the Riviera, which complement our existing offer of essential products related to travel or to France,” Soete explains.

Spring 2017 Airport Business 25 AIRPORT COMMERCIAL & RETAIL

SSP’s new food & beverage offer in Terminal 2 at Nice Côte d’Azur Airport includes Jamie’s Italian, created by UK celebrity chef Jamie Oliver. The 200sqm restaurant opens on 1 June.

The Terminal 1 renovation was completed in May 2016, and the Aelia Duty Free walkthrough store has exceeded expectations. The rate of impulse purchases has notably increased.

Indeed, he reports that the Terminal 2 walkthrough store has exceeded expec- tations, even outperforming the Terminal 1 store. The concept is ‘Playful New Luxury’, with core categories including fragrances & cosmetics, confection- ery, and wines & spirits. New brands include Crème de la Mer, Jo Malone and Filorga, while iconic French brands fea- tured include Chanel, Dior and Guerlain. Meanwhile, a real experience has been created for travellers in the Hair & Nail Bar by Éric Zemmour, which offers express beauty services for nails and the possibil- ity of a blow dry before departure. Michel Pérol, CEO Lagardère Travel Retail France, comments: “Lagardère Travel Retail France is pursuing a strategy of overall operator across the three seg- ments of duty free, restaurants and travel essentials. Nice Côte d’Azur Airport’s south Europe, with a genuine focus on the The Terminal 2 renovation will be 90% commercial project gave us an oppor- passenger experience,” comments Gérard complete in May and fully complete tunity to express this ambition on an d’Onofrio, Managing Director, SSP France, by the end of the year, at which time exceptional site.” Belgium, Netherlands. “We are delighted there will be 68 shops and restaurants to be partnering with the team at Nice to across the two terminals. These are F&B inspired by the region create a food & beverage offer that will all consistent with the vision to be Among the food & beverage highlights undoubtedly place the airport in the top “surprising, entirely contemporary, and in Terminal 2 will be Jamie’s Italian, cre- echelons for dining.” loyal to the locality.” ated by UK celebrity chef Jamie Oliver. The Chez Pipo provides a true taste of the It is clear from our briefing that Nice 200sqm restaurant opens on 1 June and is Riviera in Terminal 1 with its first airport Côte d’Azur Airport has created a com- one of 10 outlets SSP will run as part of an restaurant. Soete enthuses that it is “a real mercial experience that is thoroughly in 11-year deal with the airport. Also opening institution in Nice through the generations, keeping with the character of the Côte in Terminal 2 will be L’Estivale, created in famous for its ‘socca’ made from chickpea d’Azur. It has been described as a “quan- partnership with two Michelin-starred chef flour”. Adapted for the travel environment, tum leap” for the Riviera’s gateway, one Mauro Colagreco, and Joe & The Juice. it offers a range of products inspired by the that delegates at this year’s ACI EUROPE “Nice Côte d’Azur Airport has ambitions region. Meanwhile, La Tarte Tropézienne is Airport Commercial & Retail Conference & to become one of the major platforms in a famous patisserie from St Tropez. Exhibition will experience for themselves.

26 Airport Business Spring 2017 Red-eye to Hungry?

Next stop

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

SUBWAY® is a Registered Trademark of Subway IP Inc. ©2017 Subway IP Inc. AIRPORT COMMERCIAL & RETAIL

Rome Fiumicino’s new €390 million Pier E, with the ‘Piazza del Made in Italy’, is claimed to “set a new retail benchmark” with an offering in both the fashion-luxury sector and food & beverage that is definitively Italian. Ugo de Carolis, CEO Aeroporti di Roma, shared some insights with Ross Falconer ahead of his address at the ACI EUROPE Airport Commercial & Retail Conference & Exhibition. ‘Made in Italy’ key to Rome Fiumicino’s new Pier E commercial offer

he first impression of the com- Meanwhile, de Carolis enthuses about mercial offer in Rome Fiumicino’s the 1,800sqm walk-through store operated new €390 million Pier E is that it by Lagardère under the Aelia Duty Free T is intrinsically Italian. At its heart brand, with comprehensive offers in core is a 10,000sqm shopping mall, the ‘Piazza categories such as fragrances, cosmet- del Made in Italy’, which reflects the city’s ics, and wines & spirits. “Passengers pass status as a cosmopolitan capital of fashion. through the store surrounded by corners Major luxury fashion houses Valentino and for testing the available products. This Bulgari, both headquartered in Rome, are is where travellers departing for extra- just two of the myriad ‘Made in Italy’ pre- Schengen destinations can spend quality mium brands present in the new pier. time and make use of the amenities and The hallmark of the new retail area is the services before boarding.” fashion-luxury range of 40 outlets, com- The ambition was a diversified, high-level bining the best of Italian and international range appealing to all passengers. Brands brands. “Made in Italy is almost the key like Montblanc, Piquadro, Paper Store, and brand of our commercial range,” says Ugo Unieuro were selected to appeal to busi- de Carolis, CEO Aeroporti di Roma. “The ness travellers, while Benetton and Swatch, Ugo de Carolis, CEO new boarding area testifies, with its state- for example, are more targeted towards Aeroporti di Roma: “Made in Italy is almost the key brand of-the-art structure, to the excellence of leisure travellers. Among the more pro- of our commercial range. The ‘Italian-ness’. Among the areas dedicated gressive elements is the personal shopper new boarding area testifies, to the luxury category, there are 25 major service, which has been very well received. with its state-of-the-art structure, to the excellence Italian fashion brands.” Dedicated staff communicate with travellers of ‘Italian-ness’.” This local flavour is mirrored in the in Italian, English, and Mandarin Chinese. 3,000sqm food & beverage offer, featuring an ‘Italian Food Street’. The diverse formats A new benchmark in luxury retail Commercial revenues reached €500 and price-points from Areas, Autogrill, €2 billion of further infrastructure work is million last year. The accessories cat- Lagardère, and Chef Express, include planned at Rome Fiumicino over the next five egory was a star performer, growing by Italian and Mediterranean offers prepared years, including the new Pier A. This invest- 20% year-on-year, with Italian brands by, among others, Michelin-starred chef ment is being made against the backdrop of Furla and Coccinelle a key contribu- Heinz Beck with his ‘Attimi’ restaurant, as record traffic – 41.7 million passengers were tor. “Specifically, with reference to the well as Asian dishes and gourmet burgers. handled in 2016 (+3.2%). luxury goods sector (+10% compared with 2015), the average spend-per-passenger at Rome Fiumicino amounted to over €500,” de Carolis explains. “Leading the luxury sector are numerous ‘Made in Italy’ brands represented in all prod- uct categories – from Bottega Veneta to Gucci, from Valentino to Prada, and from Tod’s to Bulgari. These brands are particularly attractive to Chinese, Korean and Japanese extra-Schengen passengers.” The new Pier E arguably sets a new benchmark in terms of luxury retail, com- bining a unique Italian offer with major international brands. “So far, we have At the heart of Rome Fiumicino’s new €390 received many positive comments and million Pier E is a 10,000sqm shopping compliments for our quality of services,” mall, the ‘Piazza del Made in Italy’, and a 3,000sqm food & beverage offer, featuring de Carolis concludes. an ‘Italian Food Street’.

28 Airport Business Spring 2017

AIRPORT COMMERCIAL & RETAIL

Philippe Rainville, CEO Aéroports de Montréal, interviewed by Marta Dimitrova. Montréal-Trudeau: New commercial areas reflect avant-garde culture

ontréal is undeniably a lead- ing capital of avant-garde Philippe Rainville, CEO culture and has a diverse culi- Aéroports de Montréal: nary scene. In fact, Canada’s “We wanted to infuse our M airport facilities with second-largest city is the North American a typically Montréal destination with the highest number of character, while creating restaurants per capita. The city’s vibrant an atmosphere that is both pleasant and festive, creativity is, indeed, reflected in the air- even playful.” the development of an interior open- port’s commercial approach. plan area designed to create a unique Philippe Rainville was appointed atmosphere through the integration of President and CEO of Aéroports de artistic and cultural elements, including a Montréal (ADM) in November 2016 and In May 2016, ADM inaugurated €313 mil- lighted ceiling installation – Nuée de verre officially started in the role on 1 January lion worth of expansion and improvements (Veil of Glass) – composed of different- 2017. His career with ADM began in at Montréal-Trudeau. The new facilities coloured glass triangles illuminated by 2008, in the position of Vice-President, include an extension of the international spotlights. There are also large avant- Finance and Administration and Chief jetty, which has significantly increased the garde murals created by local artists, Financial Officer. In 2014 he became capacity of its international services and showcases dedicated to Montréal’s main Vice-President, Planning, Engineering and enhanced the customer experience. museums, and a children’s playground Construction, where he was responsible inspired by Minimaniacs, the new comic- for the management and execution of 8% duty free growth book series by local artist Tristan Demers. ADM’s capital projects. “I’m very pleased “Overall, 2016 was a good year in “We wanted to infuse our airport to take on the challenge along with all terms of the travel retail business. Duty facilities with a typically Montréal ADM employees,” says Rainville. free generated revenue growth of 8%,” character, while creating an atmosphere explains Rainville. “During 2016, three new that is both pleasant and festive, even stores were opened: an upscale fashion playful,” Rainville comments. “In selecting store, a Victoria’s Secret, and an express new commercial tenants, emphasis The main innovation is the development of an interior open- store situated within the expansion of the was placed on local brands that are plan area designed to create a international pier. The retail site posted well-known in Montréal and Québec. unique atmosphere through the double-digit growth of 15% – an increase The variety of restaurants helps our integration of artistic and cultural elements, including a lighted largely driven by new retail concepts.” airport to truly stand out and become a ceiling installation – Nuée de One of the main aims of this expansion destination in itself. To achieve this, we verre (Veil of Glass) – composed of project was to create commercial brought architects, designers and artists different-coloured glass triangles illuminated by spotlights. areas which truly reflect Montréal’s around the same drawing board so that cultural scene. The main innovation is the functional elements, waiting areas, playground and shops, as well as artistic and cultural elements, were conceived and organised in an integrated manner to form a coherent whole. We believe we can say ‘mission accomplished’.” The jetty is a cornerstone of ADM’s strategy to attract more interna- tional traffic to Montréal-Trudeau and transform it into an important global transportation hub. “Our international passenger traffic has already grown by an average of nearly 10% a year over the past decade – nearly double the rate of increase for domestic and transborder traffic. In 2016, we reached 16.6 million passengers, and we expect 20 million in 2020,” Rainville concludes.

30 Airport Business Spring 2017 AIRPORT COMMERCIAL & RETAIL

® A digital platform to develop customer relationships

iriane is exhibiting at this year’s ACI EUROPE Airport Commercial & Retail Conference & Exhibition, where it will showcase its digital platform providing marketing and A technological services for airports. Roland Gallo, founder of Airiane, contends that customers have increasingly become an asset for airport management. That is why Airiane proposes a set of solutions designed to boost airport returns on their customer assets. “These solutions not only bring a real added value for the customer through the entire journey, they are also easily integrated into an airport web ecosystem,” Gallo explains. The company is already working with 15 airports, including Lille, Pau, Paris, Beauvais, Caen, and Perpignan, and anticipates unveiling new partnerships soon. So, how does it work? Airiane uses existing airport web traffic to leverage customer revenue and data, with the intention that airports and retailers automatically develop customer relationships, loyalty and revenue with very little investment. “Mass marketing is dead, but it’s not sad news,” says Gallo. “The challenge is now automatically sending the right message to the right person, at the right time, through the right channel, and this, all the way through the entire customer journey. It’s a key issue for improving sales, cross-sales and loyalty.” Airiane’s Airport Data Management Platform allows airports to develop and automate their promotions in a simple, intuitive way. “The customer checks flight schedules and availabilities, then books and receives an invitation to book extra services such as hotels and car rental,” Gallo adds. “A few days prior to departure, the customer is emailed a reminder to book their car park, together with a voucher to use in the airport shopping zone. A great leverage on business.”

THE RITUAL OF LAUGHING BUDDHA

Roland Gallo, founder of smile and the world smiles back Airiane: “Flight schedules are generally regarded as a key information service In ancient China, 1100 years ago, the Laughing on an airport website. We transform this strong Buddha was a famous monk whose legendary expectation into a powerful customer acquisition tool for smile brought happiness wherever he went. airport marketing and retail Inspired by his story, our Laughing Buddha managers.” collection brings a touch of happiness to your everyday life. It simultaneously reminds us of how simple it can be to make a positive impact on other people’s lives.

YOUR BODY. YOUR SOUL. YOUR RITUALS. [email protected] | rituals.com

Spring 2017 Airport Business 31 AIRPORT COMMERCIAL & RETAIL

Patrick Bohl, Head of Retail and Advertising, Budapest Airport and President, ACI EUROPE Commercial Forum, is participating in this year’s ACI EUROPE Airport Commercial & Retail Conference. He spoke to Ross Falconer ahead of his address.

Budapest’s improved category mix and marketing support delivering retail growth

he theme of this year’s ACI and using their exciting new digital media period to end-February almost 15%. Bohl EUROPE Airport Commercial we have kicked off this year’s Trinities notes that, if the airport maintains this & Retail Conference is ‘Sales together with Gebr. Heinemann and Beam performance, it will need to consider an T Solve Everything: The average Suntory, involving several tasting stages additional terminal in 2020, including new spend per passenger at Europe’s air- and gifts with purchase. We are working on commercial areas. ports is just €10.38* – surely we can do another 13 promotions of individual brands, much better!’ Indeed, in conversation with in addition to our thematic retail activities Transferring innovative ideas Airport Business, Patrick Bohl, Head of focusing on specific categories and events.” Alongside his role with Budapest Retail and Advertising, Budapest Airport The airport is investing €160 million Airport, Bohl is President of the ACI and President, ACI EUROPE Commercial into its infrastructure over the next three EUROPE Commercial Forum, which is Forum, highlights an even more alarm- years as part of the bud:2020 develop- focused on exchanging know-how among ing figure: While passenger traffic in ment plan, including construction of its members, identifying new revenue Europe showed average growth of 5% in a 145-room airport hotel, new cargo opportunities, and making sure the voice 2016, sales per passenger declined by 5% facilities, a new pier in the non-Schen- of the travel retail industry is heard where according to the European Travel Retail gen area, and a multi-storey car park. it matters. Confederation (ETRC) Index. “Currently, we are upgrading passenger “Currently, we have task forces “This is the time for the industry to come facilities in Terminal 2B, which has given on airport cities and real estate together, and become better at sharing us the opportunity to make our non- development, policy matters, and there best practice, connecting airports and Schengen duty free store ‘walk-through’ are joint meetings with other committees business partners, and make sure we and fully refurbish several outlets in the planned, for example to make sure continue to innovate together to return to souvenir, jewellery, watches, press & commercial aspects are not forgotten the growth path,” says Bohl. “Secondly, I books, and foreign exchange segments,” when discussing aviation security. I am believe that the importance of non-aer- Bohl comments. aiming to engage more airport members onautical revenues is often underrated, Double-digit growth saw passenger into our work steams and to enable faster both in boardrooms and in national and numbers reach 11.4 million in 2016 and transfer of innovative ideas and opinions European parliaments. ACI EUROPE’s that trend has continued into 2017, with using a digital members-only platform,” strength lies in promoting our interests monthly passenger traffic growth in the Bohl concludes. with policymakers, media and industry bodies, and we need to make sure this is being used to the benefit of travel retail. Patrick Bohl, Head of Just think of it – duty free may be the only Retail and Advertising, industry to benefit from Brexit. We need to Budapest Airport and President, ACI EUROPE make sure we grasp this opportunity.” Commercial Forum: Budapest Airport is constantly look- “This is the time for ing for new revenue opportunities, and the industry to come together, and become commercial revenues have grown steadily better at sharing best in recent years. “By the end of this year, practice, connecting our commercial concessionaires will airports and business partners, and make sure have made 37% more sales than three we continue to innovate years ago, within the existing footprint. together to return to the An improved category mix, marketing growth path.” support, airport atmosphere and high pas- senger satisfaction have all played their part,” Bohl explains. The Trinity promotions have been nota- bly successful. “Planning ahead requires alignment of airport, retailer, brands and advertising concessionaire, so in our case it’s actually four, not three partners,” says Bohl. “We have recently appointed IAAC Ltd as our new master airport advertiser,

32 Airport Business Spring 2017 Me and my Paul&Shark.

TOM STRANGWICK producer

TRAVEL RETAIL CONTACT [email protected]

ACI_Event Nice_210x297.indd 1 08/03/17 10:16 AIRPORT COMMERCIAL & RETAIL

Paul & Shark is a Platinum Sponsor at this year’s ACI EUROPE Airport Commercial & Retail Conference & Exhibition. Ahead of the event, Catherine Bonelli, Worldwide Travel Retail Director, briefed Ross Falconer on the Italian luxury fashion brand’s strategic ambitions in the travel retail channel.

Paul & Shark: ‘We see huge travel retail development potential in Europe’

ravel retail presents huge patterns and preferences to create a opportunities for brands to much tighter offer highlighting styles and increase visibility, with airports sizes known to work in the channel. “We T in particular an international now spend a great deal of time analysing stage to reach potential customers. It is a sales from each of our outlets in travel strategically-important channel for Italian retail to ensure we can work closely with luxury lifestyle brand Paul & Shark, which individual buyers to create the perfect by the end of 2016 had 62 points of sale offer for each airport, chosen to reflect (POS) in travel retail, and will reach 70 by the passenger profile and which take into the end of 2017. account bestselling styles,” Bonelli com- Over the last two years, the brand ments. “The next season’s collection is has experienced strong development particularly innovative, practical, and dif- in Asia and its attention this year is ferent, which is something both retailers turning to Europe. “The ACI EUROPE and passengers are always looking for.” Airport Commercial & Retail Conference This innovation extends to offer- & Exhibition is the perfect platform for ing the consumer something different Paul & Shark to raise its profile among and exclusive in the airport. Last sum- airport authorities and retailers within mer, Paul & Shark partnered with Hong the region,” says Catherine Bonelli, Kong International Airport Authority Worldwide Travel Retail Director, Paul and Lagardère Services, introducing & Shark. “We are, of course, already a bespoke embroidery machine to its well-known in this part of the world, but boutique to celebrate the new open- in travel retail terms we still see huge ing. Travellers purchasing a Paul & Shark development potential in Europe. The polo shirt could have their name or slo- venue this year is perfect for us, as we gan embroidered free of charge within are opening a superb multi-brand store just a few minutes, creating a real sense at the new Nice Terminal 2 this May, of theatre. which is a perfect example to other Catherine Bonelli, “We are also able to create a point of airport authorities of what a strong Worldwide Travel Retail difference by offering limited editions Director, Paul & Shark: partnership between airport, operator “The ACI EUROPE Airport for a specific airport or retailer,” Bonelli and brand can accomplish.” Commercial & Retail notes. “Again, in Hong Kong we agreed Customers at Nice Côte d’Azur Airport Conference & Exhibition with LATR (Les Accessoires Travel Retail) is the perfect platform can expect a bright assortment, reflect- for Paul & Shark to raise to offer a limited edition Paul & Shark ing the local environment. “The location its profile among airport Hong Kong polo shirt. We are very proud sits perfectly with Paul & Shark’s heritage authorities and retailers of this flexibility in being able to pro- and inspiration from the sea. The luxury within the region.” duce special items for retailers to create environment and passenger demo- a point of difference for the boutique, graphic at the airport is totally relevant and to offer travellers something that for us,” Bonelli adds. is unique. Coming up soon is our new Indeed, being a luxury lifestyle with the airport and operator to find the ‘Personalise Your Button’ service that will brand, Paul & Shark seeks locations suitable location and size to perform at be available for the FW Collection.” and destinations that correspond to the airport,” Bonelli explains. “However, With airport retailers increasingly this luxury brand environment. The we are also open to shop-in-shops if the developing the luxury and premium sec- positioning is equally vital – a good synergies are correct.” tors, Bonelli expects the upward trend visible location in a high traffic area This year, Paul & Shark has spent a to continue, with Europe a key devel- is important as fashion is primarily an lot of time analysing each POS result to opment focus. “We are seeing growth impulse purchase. “Once these two adjust its assortment accordingly. The globally as more and more consumers points are established then, where space focus is on fewer SKU’s for global travel discover the brand – that is where travel and planning permits, we would study retail, using analysis of passenger buying retail plays a very important role.”

34 Airport Business Spring 2017 In summer 2017, we will present our new store in Helsinki

Visit our stores in: Amsterdam, Berlin, , Copenhagen, Frankfurt,

Gothenburg, Hainan, Johannesburg, Kiev, Munich, Stockholm

www.capi.com

advertentie full page - 2017 versie.indd 1 10/03/2017 10:49 AIRPORT COMMERCIAL & RETAIL

irport electronics retailer Capi has experienced a great start to Capi’s expertise in 2017. In January, it won the tender A to operate an electronics store at Helsinki Airport. The store opens in May ‘cutting-edge commerce’ and will further expand Capi’s successful operation in the Nordics. With 20 years of with an exciting shopping experience,” led to a valuable proposition for travellers, travel retail experience in the region, Capi Wiggers explains. where we are able to highlight our exper- has acquired a thorough understanding of The company aims to create added- tise in cutting-edge commerce,” Wiggers the Scandinavian market. “We are excited value for travellers by offering exclusive adds. “We will continue to expand our to further strengthen our position in the propositions. In March, together with position and presence in and outside Nordics with this new store,” enthuses Peter Phillips, Capi installed a pop-up barber- Europe with a clear focus on our proven Wiggers, Managing Director, Capi. shop at Amsterdam Airport Schiphol. “This retail marketing concept and expertise.” Committed to creating globally recognis- able electronics stores with a local flavour to fit each specific airport, Capi’s stores have a consistent retail marketing concept. One instance is The Gadget Table which forms the centre of each store and gives travellers the opportunity to find unique gifts and gadgets. Another concept is ‘Sweet Notes’ – small personal messages In March, together with Philips, Capi installed to remind travellers to buy a present for a pop-up barbershop their loved ones or business relations. at Amsterdam Airport To help guide travellers’ purchas- Schiphol, which created an exciting experience for ing decisions, Capi has introduced the travellers searching to be Travellers Choice concept – a prese- inspired and entertained lection of fast-selling, best-reviewed during their dwell time at the airport. products and the latest innovations. “These wall presentations consist of inspiring lifestyle visuals and a touch & feel presentation to provide customers

ondelez World Travel Retail is a silver sponsor at this year’s ACI EUROPE Mondelez boosting M Airport Commercial & Retail Conference & Exhibition. “Our main confectionery sales with expectation from the conference will be to learn about case studies of partner- ships between brand owners and retailers cross-category collaboration that have resulted in increased con- sumer spend,” comments Andreas Fehr, Managing Director, Mondelez Travel Retail Mondelez WTR is a strong advocate address key travel retail challenges of European Exports. for the travel retail channel and is low footfall and conversion, and unlock committed to its long-term growth. growth. “This is driven by in-depth Recently, the brand came up with a new shopper insights and centred on driving strategy to boost confectionery sales by behavioural changes in shoppers that utilising cross-category collaboration, by would deliver against three key aims: conducting a study alongside the German More Shoppers, More Spend, More Often,” company 4Dshopper. “From this research says Fehr. we found that retailers can trigger Based on these insights, Mondelez additional spend by placing a gondola of developed a toolbox of actions, that can bestselling chocolate items in the liquor or trigger positive changes in the shopper perfume & cosmetics areas, as shoppers behaviour, and is constantly enhancing its showed interest in buying what we refer to shopper insights programme. as a ‘top-up’ gift together with a bottle of Fehr believes that the confectionery whisky or perfume,” Fehr explains. category will continue to play an important Andreas Fehr, Managing Moreover, in its efforts to drive the role in driving airport retail sales. “After all, Director, Mondelez Travel industry forward, Mondelez is continuing it is highly impulse driven, which means Retail European Exports: “Confectionery has the its ‘Delighting Travelers’ category that with the right in-store executions and power to address key travel vision, which represents its belief promotional campaigns we can grow sales retail challenges of low that confectionery has the power to significantly,” he concludes. footfall and conversion, and unlock growth.”

36 Airport Business Spring 2017 20170321_Autogrill_ACI_216x303.indd 1 21/03/17 16:13 AIRPORT COMMERCIAL & RETAIL

xcess Baggage is an established operator in the UK, offering a wide Excess Baggage expanding range of passenger baggage ser- E vices at airports including London Heathrow, London Gatwick, London Luton, to key European airports London Stansted and Manchester. Recently, the company has expanded its offer to key European airports, with contracts at Madrid and Barcelona, and later this year, Excess Baggage plans to expand its reach with new developments in other parts of Europe. In March, the company opened a brand- new state-of-the-art baggage storage and luggage retail unit on the arrivals concourse of Dublin’s Terminal 1. Two further units are due to open in spring 2017 in Dublin T1 departures and in T2’s check-in area. The company has also been successful with bids in Scandinavia, Germany, and the UAE. Other significant developments include the recent award of the baggage wrapping con- Excess Baggage is an established operator in the UK, offering a wide range of passenger baggage services, tract at Madrid-Barajas Airport, together with and recently expanded its offer to key European airports, further wrapping outlets at Heathrow, and with contracts at Madrid and Barcelona. a newly launched Shop and Collect service also at Heathrow. Later this year, the com- at Heathrow, which delivers travellers’ bag- Conference & Exhibition (stand 9), where it pany will open dedicated retail leather goods gage from their hotel or residence to Excess will demonstrate its wide range of baggage and baggage service outlets both airside and Baggage storage facilities on the concourse and passenger services which, apart from landside at London Luton. of each of Heathrow’s terminals. improving concession fees, are designed to Additionally, Excess Baggage recently The company is exhibiting at this year’s save airports space and management time launched its www.transferbags.com service ACI EUROPE Airport Commercial & Retail through the consolidation of services.

utogrill Group is a corpo- rate sponsor at this year’s ACI Autogrill Group’s vision EUROPE Airport Commercial & A Retail Conference & Exhibition. Ezio Balarini, Chief Marketing Officer, to create the ‘ultimate Autogrill Group, is delivering the defining presentation in the Fourth Working Session ‘Is F&B both underperforming but, at the airport F&B offer’ same time, the great hope for the future?’. He will present Autogrill Group’s vision The airport channel is one of the most of Wine at Rome Fiumicino Airport. This is a “that airports’ restaurants will move even important for Autogrill Group, and today the unique concept that takes travellers on a tour more towards the ultimate offer – a true company operates in 150 airports world- of the finest wines from Italy’s regions. It is a and meaningful experience for our guests, wide. Its main focus is to create an overall wine and fish bar where travellers can enjoy driven by engagement with them and true- experience, with its airport offerings having offerings overseen by Michelin star chef ness in all we propose to them, taking care, a real sense of place. Cristina Bowerman, who has designed three of course, of sustainability issues, both Autogrill Group recently partnered with of the recipes on the menu. environmental and for our business.” Aeroporti di Roma to launch Assaggio Taste Autogrill Group recognises the emerging need for digital services, and has introduced tools to provide customers with on-demand services to deliver customer experience and satisfaction. For instance, in some US Autogrill Group and European locations, Autogrill Group has recently partnered introduced digital kiosks for pre-ordering, with Aeroporti di Roma to launch and in the US other tools such as Kallpod – a Assaggio Taste system which notifies staff when customers of Wine at Rome are ready to pay or order. Fiumicino Airport – a unique, innovative “Our main ambitions are to be the leader concept that takes of our industry and to be able to propose travellers on an different restaurant formats with our own explorative tour of or partnered brands, covering all the needs the finest wines from Italy’s regions. and tastes of travellers while respecting their food traditions and valuing local cultures,” says Balarini.

38 Airport Business Spring 2017 INSIGHT

of duty free shoppers buy from a single 56% category only. CONFECTIONERY • IS THE MOST IMPULSE CATEGORY. • HELPS TO INCREASE BASKET SIZE.

Source: M1nd-set Travel Retail Research, 2016 (18,000 interviews) Photo: Rio de Janeiro Airport, February 2017. AIRPORT COMMERCIAL & RETAIL

aunched in 2014, Coindrum’s innovative solution is now gain- Coindrum partners with ing increasing visibility in airports L around the world. The Dublin- based company, which turns departing Lagardère in Venice passengers’ leftover coins into higher value travel retail vouchers, achieved and CarTrawler, as well as the Irish second Coindrum airport in the Italian unprecedented growth in 2016, adding Government,” comments Lukas Decker, market, following its recent launch in Milan six new airports to its footprint, including CEO Coindrum. with Dufry. Lagardère Travel Retail already Berlin, Brussels, Milan, Faro, and Venice. At the beginning of 2017, Coindrum partners with Coindrum in Belfast, joining “We are doubling our staff numbers to launched a new installation at Venice other retail partners Dufry, Heinemann, Aer meet demand and are financially backed Marco Polo Airport in partnership with Rianta International, International Duty Free, by the founders of Ryanair, Hostelworld Lagardère Travel Retail. It became the and Lojas Francas de Portugal in adopting the service. Indeed, the Coindrum solution aims to address the inconvenience and waste of leftover coins, while also driving spend to retailer tills. “Our service offers a retail category growth opportunity from 0.4sqm of space. We make non-spenders spend and thus significantly and measurably drive sales,” says Decker. The company’s track record shows that passengers outspend their vouchers by a multiple of ten at the tills, providing an attractive revenue growth opportunity for the retailer. “Coindrum is fast becoming a brand that passengers recognise to offer a convenient service that essentially buys their coins for more than they are worth,” Lukas Decker, CEO Coindrum, with Matteo Micelli, Decker adds. “An unbeatable value propo- Lagardère’s Operations Manager in Venice, during the launch ceremony for the new installation at Venice sition that also offers a category growth Marco Polo Airport. opportunity to airport retail.”

Airport parking ‘able to deliver a step-change in revenue’

DeaS is exhibiting at this year’s ACI car park spaces. This has empowered the EUROPE Airport Commercial & Retail airport to more accurately price and fore- Conference & Exhibition in Nice, where cast its facilities to maximise revenue. I it is looking forward to sharing with “IDeaS forms partnerships with our delegates how the car parking business clients for long-term success and growth. can contribute to the successful growth of Our first car park client, Heathrow Airport, European airport commercial revenue. is still a committed partner after 12 years, “When it comes to non-aeronautical as it continues on its revenue manage- revenues, parking is a significant con- ment journey,” says Oliver. tributor and focus. With relatively low-risk Also employing the IDeaS Car Park investment, it is able to deliver a step- Revenue Management Solution in 2016 change in revenue very quickly,” explains were airports in Australia, New Zealand, Pauline Oliver, Business Pauline Oliver, Business Development North America and Europe, showing the Development Manager, IDeaS: Manager, IDeaS. airport industry is eager to incorporate data “When it comes to non- aeronautical revenues, parking is Car park revenue can provide a signifi- science and analytics into the way it prices a significant contributor and focus. cant contribution to an airport’s overall parking. “We expect this growth to continue With relatively low-risk investment, financial success. Auckland Airport is a in 2017 with a particular enthusiasm for sys- it is able to deliver a step-change in revenue very quickly.” perfect example of a car parking business tem adoption in Europe,” Oliver adds. utilising automated revenue management IDeaS continues to work closely with for its online channel. With the IDeaS the industry to create awareness and our experience and vision is key. Just as Car Park Revenue Management System, understanding of the core principles of valuable, IDeaS is driven to ensure every Auckland Airport optimises the revenue revenue management. “Working with our client is successful and achieving their for more than 8,500 short and long-term clients to ensure we are available to share revenue goals,” Oliver concludes.

40 Airport Business Spring 2017 Three great brands, one global car hire solution.

Providing choice for travellers and our business partners is a major part of our commitment. That’s why you’ll find our car rental brands at airports, train stations and in local neighbourhoods where they need us most. With a combined network of 9,600 locations, across 85 markets, including more than 200 airports in Europe, we’re dedicated to delivering outstanding customer service across the world.

To find out more about our brands, contact us on +44 178 449 4586.

©2017 Enterprise Holdings, Inc. H04476 3.17 AIRPORT COMMERCIAL & RETAIL

Airmagine: Shifting perceptions of digital advertising

n 2015, Airmagine, a leader in intel- “We’re proud because that’s against ligent digital airport advertising, a background of stagnating revenue created the world’s first fully digital- generally in the outdoor market,” says I ised airport advertisement platform at Bech-Thomsen. . “Copenhagen was In December 2016, Copenhagen Airport the first airport to go fully digital,” explains announced the launch of its terminal Asger Flygare Bech-Thomsen, Chairman, expansion plans. This is expected to lead Airmagine. “So in that sense it was a bold to new opportunities for Airmagine. “More and successful experiment.” passengers mean more opportunities for Today, around 30,000 commercial advertisers to reach consumers with tar- spots are shown every day on more than geted content. We’ll create more screens 169 screens around the airport, driven and that will mean the opportunity for more Asger Flygare Bech-Thomsen, Chairman, by sophisticated playlists. “Copenhagen customer exposure. We know custom- Airmagine: “Our advanced use of data and segmentation algorithms means the Airport took a bold and successful ers enjoy the experience of Copenhagen right messages are reaching the most decision,” adds Bech-Thomsen. “Our Airport, and our digital screens are a relevant target groups among travellers. experience there proves that digital seamless part of that experience,” Bech- You really have to experience it to truly advertising is no longer the future for Thomsen explains. appreciate it.” airport advertising, it has arrived, and now Airmagine is exhibiting at this year’s it’s time for others to catch up.” ACI EUROPE Airport Commercial & Retail digital advertising. “We have discovered Media revenue has grown by double- Conference & Exhibition in Nice (stand there are a lot of myths out there about digits during the two years Airmagine has 45) as part of its plans to expand in the digital advertising and we see knocking been present at Copenhagen Airport – by European market by demonstrating the down those myths as our mission,” Bech- 11% in the first year and 19% in the second. cost benefits, reliability and elegance of Thomsen concludes.

Enhancing customer experience to increase revenue

he Second Working Session in support to branches that may need more this year’s ACI EUROPE Airport help, and identify best practice that we can Commercial & Retail Conference share across our network,” says Ware. T is entitled ‘Less is more: Are some Enterprise Holdings recognises that key profit centres, under-appreciated and “service means different things to different worryingly over-exploited by over-ambitious people”. Its three car rental brands – Alamo, concession targets?’ Enterprise and National – enable the com- James Ware, General Manager/Vice pany to provide three very individual types of President, France, Enterprise Holdings, is experience. In Europe, customers of National participating in the session. He will empha- who are members of the Emerald Club sise how focusing on passenger needs and loyalty programme can take advantage of a the overall passenger experience results Priority Service. Those customers get a travel in revenue enhancement and increased alert outlining the process of bypassing the mode share. rental counter and queues entirely. Indeed, Enterprise Holdings’ main priority is The company’s rapid expansion to ensure the best possible customer experi- programme has seen it grow from one fran- ence. The company measures its customer chise partner in EMEA in 2013 to more than service continuously, using the Service 40 in 2017. “We’re continuing to develop our James Ware, General Manager/ Vice President, France, Quality Index (SQi) as the benchmark for global network, as well as a number of spe- Enterprise Holdings: “We’re every branch in its network. The SQi is based cific service enhancements that have seen continuing to develop our global on monthly customer surveys that drill down excellent response from our customers. network, as well as a number of to whether customers were completely satis- Overall, we are looking at how we can con- specific service enhancements that have seen excellent fied with the service, and then derives a score tinue to integrate our services to increase response from our customers.” for each branch. “It means that we can offer customer options,” Ware adds.

42 Airport Business Spring 2017 Transform Your Parking Revenue

Every opportunity to increase non-aeronautical revenue matters, and this all begins with the passengers spending in the car park. Elevate the revenue performance of your car park facility with IDeaS Revenue Solutions - the leading global provider of automated revenue management.

Transforming how car park businesses manage pricing decisions, IDeaS innovation empowers you to forecast demand, dynamically price and optimize your parking revenue for exceptional results.

Learn more today at ideas.com

www.ideas.com AIRPORT COMMERCIAL & RETAIL

Rituals continuing airport retail expansion

n 2016, Rituals enjoyed considerable strong presence at Amsterdam Airport shop presence growth with new out- Schiphol with two airside shops in T1 lets at airports including Edinburgh, and T3, and a third landside. The brand I London Gatwick, and Manchester. also has stores at London Stansted, “We have enjoyed considerable success Stockholm Arlanda, and Zurich airports, in all our travel retail business chan- and it recently opened standalone shops nels over the past six months or so, not at both Vienna Airport, managed by least in airports, but also onboard cruise Welcome Trading, and Airport, ships and ferry lines, all of which taken managed by Lagardère Travel Retail. together accounts for 65% of our sales “The great advantage of a standalone in travel retail,” enthuses Neil Ebbutt, shop is the extra space it gives us to offer Director Wholesale, Rituals Cosmetics. a very much wider range of products, and When it comes to travel retail in to create opportunities for experiential airports, the luxurious home & body engagement with them,” says Ebbutt. cosmetics brand has a flexible business Indeed, the brand’s stores at Schiphol are model that means it can partner with the perfect place for travellers, with each duty free retailers as a wholesale sup- having a spa attached. plier for shop-in-shop fixtures, as well Looking ahead, Rituals is determined to Neil Ebbutt, Director Wholesale, Rituals Cosmetics: “Our travel as deliver Rituals branded standalone continue its success in the future. “Rituals’ retail business acts as a highly airport shops. ambition is to build a global lifestyle effective shop window to fast “Expansion of our airport standalone brand and our global distribution strategy forward international status and awareness for our brand, and an portfolio is very much a priority for us,” covers direct retail, wholesale, online and important accelerator of our overall Ebbutt explains. Rituals currently has a travel retail,” Ebbutt concludes. geographic expansion.”

Already proven. Always innovating.

M4 Smart-Sensor L4 Lightpipe-Sensor The patent-pending camera based Pioneers of next-generation Leading-edge LED lighting meets system that put us ahead of the parking guidance with installations next-generation guidance. Modular curve. This sensor-with-a-brain lightpipes provide glare-free, redefined what a parking guidance in 25 countries. Including field-proven lumen-rich lighting for increased system can do. efficiency and sustainability. sites throughout Europe.

Park Finder™ Park Vision™ Our breakthrough Find Your Car™ +31(0)88 00 21 410 The M4 and L4 smart-sensors both feature helps parkers to locate their [email protected] capture streaming video whenever vehicles by simply typing their license motion is detected in a space. plate number at a touchscreen kiosk. www.parkassist.com Or continuously if desired. Heightening security and safety. Strategies for attracting and retaining airline customers THE AIRLINE CONVERSATION

Martin Gauss, CEO airBaltic, interviewed by Ross Falconer. airBaltic expanding horizons: CS300 boosting Baltic connectivity

ast year was the first in airBaltic’s The airline is a vital piece of transport infra- airBaltic factbox five-year Horizon 2021 business structure for the Baltic region. With its main plan, put in place after the base at Riga, and additional bases at Tallinn and airline completed its turnaround Vilnius, it provides connectivity for the six mil- 2016 passenger numbers: L programme and returned to profitability lion Baltic citizens to key business and leisure 2.9 million (+10%) in 2013. Indeed, airBaltic today is in markets. To paint the full picture, there are few 2016 load factor: 74% (+3%) its strongest-ever position. 2016 saw travel alternatives – no rail or motorway con- 2017 passenger growth 10% growth to 2.9 million passengers, nections to Europe, and limited opportunities (year-to-date): 18% and already 13 new routes have been by sea – so air connectivity is essential. Top 3 bases: Riga (60+ routes), announced for the 2017 summer season. “Our Horizon 2021 business plan sets out Tallinn (10+), Vilnius (10+) Martin Gauss joined airBaltic as CEO a concept that the entire world should be in November 2011. He has over 25 years’ accessible with one stop,” Gauss explains. Fleet: 25 aircraft experience in the airline industry, and “Abu Dhabi and Madrid, in particular, are • 2 Bombardier CS300s his leadership has driven airBaltic’s vital hubs to connect to South East Asia and (18 more on order) turnaround. “Our plan is robust and sets South America. Etihad Airways and Iberia are • 5 -500s out a clear growth path for airBaltic,” home carriers at these airports and belong • 6 Boeing 737-300s he says. “We have a very focused to our family of valuable codeshare partners. • 12 Bombardier Q400 NextGens management team to execute it, hence This cooperation further strengthens our the success last year, and we expect service and enables our travellers to reach more ambitious growth this year.” key airports with just one stop.”

Spring 2017 Airport Business 45 Strategies for attracting and retaining THE AIRLINE CONVERSATION airline customers

Martin Gauss, CEO airBaltic: airBaltic’s 13 “Our Horizon 2021 business plan sets out a concept that the entire new routes world should be accessible with one stop. Abu Dhabi and Madrid, in particular, are vital hubs to connect to South East Asia and From Riga: South America. Etihad Airways and Aberdeen (launching 2 May) Iberia are home carriers at these Abu Dhabi (29 October) airports and belong to our family of valuable codeshare partners.” Catania (4 May) Geneva (4 May) Gothenburg (1 June) Kazan (26 April) 2018, and the final six in 2019. “Our 13 new Liepaja (16 May) routes are a direct result of having this Madrid (26 May) state-of-the-art jet,” Gauss comments. Odessa (26 March) “The economics enable us to open longer, Stavanger (2 May) thinner routes, and do so at a lower cost. Tampere (26 March) It flies higher and faster, and burns less fuel, so everything changes. The addition of new and larger planes also means that From Vilnius: we can offer 15% more tickets this year, as Munich (27 March) the number of available seats increases, Paris CDG (26 March) additional flights to European airports are introduced, and high-demand cities like Copenhagen get an upgrade from turbo- CS300 facilitates 13 new routes 145-seat, two-class configuration on prop to jet aircraft.” Significantly, in terms of its network routes including Barcelona, Frankfurt, Meanwhile, replacement of the expansion, airBaltic is the launch customer Helsinki, Munich, Rome and Tallinn. Bombardier Q400 fleet will take place in for the new Bombardier CS300. It has 20 As part of the airline’s fleet moderni- five-and-a-half to six years, when they are on order, with two already delivered, and sation strategy, the CS300s will replace returned to the lessor. “Over the period of the first commercial flight last December its 11 Boeing 737s. It plans to have eight a year, all 12 Q400s need to be replaced, was a service from Riga to Amsterdam. in service by peak summer season this so we can either extend or get a new airBaltic is operating the CS300 in a year, then take delivery of six more in lease,” Gauss explains. “We will have to decide which aircraft will sit below the CS300, because it’s a big jump from 76 to 145 seats. I can see us replacing the 76-seaters with 100-seaters six years from now and, therefore, the CS100 is the logical decision, but this depends on us fulfilling the business plan and our new shareholder, which will most likely be a bigger airline.”

Reinforcing Baltic market position The Horizon 2021 business plan will deliver a new type of travel experience for airBaltic’s customers over the next five years, as the airline continues to grow and delivers more connectivity to Latvia, Estonia and Lithuania. While its main base at Riga has 60+ routes, the Tallinn and Vilnius bases will have more than 10 direct flights each within the next five years as part of the Horizon 2021 plan, in combina- tion with transfers via Riga. “This way we offer unmatched service into and out of the Baltics, and this reinforces our posi- tion in this market. We will continue our success story of growing profitably, and we will make every effort to find a new Launch operator airBaltic took delivery of its first Bombardier CS300 in November strategic partner who is a good fit and 2016. “With its longer range capabilities, lower fuel burn and reduced noise interested in maintaining airBaltic’s role as emissions compared to other airliners in its segment, the CS300 will enable airBaltic to open new routes and connect people all across Europe, while offering passengers a key infrastructure element for the Baltic an unparalleled inflight experience,” explains Martin Gauss, CEO airBaltic. region,” Gauss concludes.

46 Airport Business Spring 2017 AN INFINITE NUMBER OF REASONS TO PUT YOUR TRUST IN US.

More than 30 major airlines offering 140 destinations Non-Stop from Montréal. Why? Our leading-edge technology, our full support for carriers and our high customer and personnel satisfaction rate make Montréal a destination of choice. Visit admtl.com to find out more.

WHERE EVERYTHING TAKES FLIGHT

96085_ADM_Magazine-ACI Europe.indd 1 3/20/17 3:31 PM PASSENGER & BAGGAGE PROCESSING

Making airport processes ‘easier, more efficient and more comfortable for passengers’

An interview with Michael Tan, President & Chairman of the Board, Scarabee Aviation Group. By Ross Falconer.

oday’s travellers demand empowerment at every stage Commenting on the new of their journey, from booking security checkpoint solution at Cologne Bonn online through to self-ser- T Airport, Michael Tan, vice check-in, bag drop and boarding. President & Chairman Progressive airports are responding by of the Board, Scarabee Aviation Group, explains focusing on potential pinch-points along that “with a constantly the passenger journey, transforming the high level of safety, the airport experience with streamlined, effi- control process is to be cient processes. made easier, more efficient and more comfortable for A passion for technology is at the heart both passengers and staff.” of Scarabee Aviation Group’s approach to future-proofing these processes at airports around the world. Indeed, the company is an innovation accelerator. Its new security checkpoint solution at “A preparation area provides a new passing through security, and a strong Cologne Bonn Airport combines state-of- space for passengers to get their business case that will display a human- the-art technology with functionality and belongings ready for screening, and centred mentality, merging culture with ergonomics to form a holistic concept. an automated tray handling system airport design.” Michael Tan, President & Chairman of the streamlines the process through X-rays Board, Scarabee Aviation Group, explains and security scanners where required,” Taking an airport process that “with a constantly high level of safety, Tan comments. “It creates a more ‘out of the airport’ the control process is to be made easier, attractive and comfortable environment, Removing complexity from the bag- more efficient and more comfortable for and helps remove some of the stress gage process is another way in which both passengers and staff.” sometimes associated with air travel.” airports are enhancing the traveller Existing procedures were analysed by Meanwhile, O.R. Tambo International experience. The Taiwanese Government the Federal Ministry of the Interior and is the first African airport to implement has built a new rail link between down- the Federal Association of the German Air a Smart Security checkpoint, offering town Taipei and the airport. As part of Transport Industry in close cooperation passengers a new security experience this, Scarabee has introduced a bag- with partners including the Federal Police, founded on the South African values of gage drop-off process to Taipei Taoyuan Cologne Bonn Airport, Group, ‘Ubuntu’. The new checkpoint is part of train station, with six bag drop units. Tan and Scarabee Aviation Group. Airports Company ’s 2025 explains that passenger comfort is a pri- “The checkpoint follows the principle vision to provide sustainable airport ority and that the installation will “shape that passengers can always go through management solutions. “Aiming to the connectivity of city and airport for the control process at their own pace, implement solutions that extend well passengers and baggage.” It is a good without impeding or limiting themselves,” beyond current check-in, baggage example of remote, off-airport process- says Tan. “It makes the security process drop-off and boarding systems, the new ing, in which EVA Air and China Airlines clearer and more relaxed for passengers security checkpoint empowers the vision are participating. and for security staff.” to deliver great customer experience Meanwhile, a common use, self-service A streamlined security process is, of and foster growth and innovation,” says bag drop operation will soon open at course, key to the overall airport experi- Tan. “There is a strong invisible bond Tokyo Narita Airport and subsequently ence for travellers. Bristol Airport opened a between all of us through our humanity. extend to two additional Japanese airports. significantly-enlarged security search and This South African Ubuntu philosophy is “I would encourage the co-creation arrivals area in 2016, which has eased con- carried throughout the vision of the new approach this year. I’d hope airports that gestion and delivered faster, more efficient security checkpoint. It will offer departing have launched these new initiatives will processes. The project involves 12 security international passengers a cultural share the results with each other, expedit- lanes, including a dedicated Fast Track zone. connection with South Africa while ing further developments,” Tan concludes.

48 Airport Business Spring 2017 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 3.2 billion pieces of luggage around the world per year, in other words 8.8 million per day. Its systems are active in 600 airports including 14 of the world’s top 20.

Taking passenger experience into consideration, airport operators must find a perfect balance between offering travellers stress-free, relaxing journeys combined with expedient and swift movement through checkpoints. Vanderlande offers the SCANNOJET automated passenger checkpoint – designed to increase security, reduce costs and offer an improved passenger experience.

> vanderlande.com BAGGAGE HANDLING SYSTEMS

ast year was a significant year for the development of smart, digital Bringing industry-leading airport solutions aimed at improv- Ling the passenger experience. “For Vanderlande this has meant widening our solutions and technology to scope to include passenger security solu- tions and focusing on high-level controls, such as our VIBES software,” comments airport baggage handling Andrew Manship, Executive Vice President Airports, Vanderlande. “The ‘pull’ baggage philosophy has also gathered momentum, and we recently delivered such a project to Heathrow (T3IB).” individual carrier system; BAGSTORE, Vanderlande recently supplied and featuring over 1,000 baggage positions; an installed 72 STACK@EASE units as part of advance hold baggage screening system; London Heathrow Airport’s Terminal 3 inte- and check-in positions, and carousels. “I am grated baggage (T3IB) system. happy to report that the project is on track STACK@EASE is a lifting aid that allows and that we have built a strong relationship baggage handlers to minimise their physi- with our customer,” Manship states. cal workload, while loading high volumes 2017 is set to be another exciting year for of bags. “It helps ensure a more sustainable Vanderlande with projects all over the world, operation in terms of increasing throughput, including Istanbul, Los Angeles, Salt Lake minimising back and shoulder injuries, and City, Moscow (Domodedevo), Singapore offering an environmentally-friendly solu- Changi, Bahrain and Bergen. tion,” says Manship. “Hassle-free operations are becoming The company has also been awarded imperative, and the demand for flexibility a baggage handling contract by Moscow and modular extensions is increasing. Domodedevo International Airport, which will We aim to further improve the competitive STACK@EASE is a lifting aid that be handed over in time for the FIFA World position of our customers, and incorporate allows baggage handlers to minimise their physical workload, Cup in 2018. The innovative technologies industry-leading solutions and technology while loading high volumes of bags. being installed include TUBTRAX 2.0, an from our other markets,” Manship concludes.

Have you done everything you can to prevent a bird strike? Avian Safe can help make your bird problems fly away....

Avian Safe, a UK based Wildlife Management Services UK Civil Aviation Authority (CAA) recognised Company, can help you ensure that the risk from Wildlife Hazard Management Training bird strikes is reduced to an absolute minimum. WildlifeHazardManagementProficiencyChecks We can train your staff, set up wildlife control Wildlife Strike Hazard Reduction Surveys units and carry out ICAO approved 13km surveys. ICAO 13 km Wildlife Hazard Surveys We offer tailored independent advice related to Wildlife Hazard Management Plans bird migration routes, wildlife attractants and prevention methods. Avian Safe has a team of A member of the experts ready to assist your airport - we have assisted 86 airports worldwide since 1999. group of Companies

For further information please call: tel: +44 (0) 1494 558363 email: [email protected] www.aviansafe.co.uk Recognised by the UK CAA VIENNA AIRPORT

Julian Jäger and Günther Ofner, Members of the Management Board, Vienna Airport, interviewed by Marta Dimitrova. Vienna building on record traffic with expansion and modernisation

ienna Airport set three traffic records in 2016: its busiest day (16 September) and best month ever V (July), as well as surpassing 23 million annual passengers for the first time in its history. “Despite the geopolitical crisis situations, such as in Turkey and Russia, higher pas- senger volumes, especially with low-cost carriers such as Eurowings and easyJet and good development in long-haul services, led to a record year at Vienna Airport,” explains Julian Jäger, Member of the Management Board, Vienna Airport. He is optimistic about the outlook for 2017, forecasting an increase in passenger traffic of up to 2%. Initial growth impetus is expected to be provided by new Austrian Airlines services to Los Angeles, Mahé, Burgas, and Gothenburg; 19 destinations offered by Eurowings; and expanded fre- quencies and new routes from , Flybe/, Germania, S7 Airlines, and SunExpress. Meanwhile, in January, China Airlines became the first carrier to offer scheduled A350 services to Vienna. “We keep focusing on expanding new and reducing energy consumption are key long-haul routes, as well as the low-cost corporate objectives.” segment,” Jäger adds. Julian Jäger and Günther Ofner, Vienna Airport is accredited at Level Members of the Management Terminal expansion and modernisation Board, Vienna Airport, are 2 Reduction of ACI’s Airport Carbon is underway to accommodate continued building on record traffic figures Accreditation and is working towards growth. “We are following a quality-ori- with modernised facilities to Level 3 Optimisation. ented strategy for increasing passenger accommodate continued growth The new rooftop photovoltaic plant in both the long-haul and low- comfort, creating a central security area cost segments. is designed to double existing capacity. spanning different terminals and expanding Last year, two photovoltaic systems were the shopping and food & beverage offer- installed on the roof of a hangar and the ing,” Jäger comments. roof of an equipment hall. The airport will be redeveloping the Free WiFi is central to the offer, while the “The expansion is part of the sustain- oldest building sections – Pier East and airport’s website features a responsive ability strategy of Vienna Airport,” says Terminal 2 – to encompass new functions, design and is compatible with all devices, Ofner. “The construction of this additional including a central security area for the B, and its mobile app contains all relevant photovoltaic facility is an integral part C and D gates. In addition, a new building airport information for passengers. Vienna of the sustainability strategy of Vienna will be constructed at the southern side of Airport is also proactive on social media Airport and will involve investment of Terminal 3. This will create up to 10,000sqm channels, including Facebook (75,000 likes), about €1 million.” of additional space for retail and F&B. Twitter, and YouTube. Looking ahead, the airport expects con- Ensuring a high-level of customer orien- tinued traffic growth in both the long-haul tation is a top priority. The involvement of Sustainability and reduced and low-cost segments, and the priority relief organisations, and family and senior energy consumption is to accommodate this with modernised citizen associations, is designed to ensure This year, the airport is investing €16 million facilities. “Moreover, we will take further that the concerns of people with special to expand its air cargo centre by 15,000sqm steps to enhance the attractiveness of the needs are taken into account. – a project including one of Austria’s largest Airport City and the entire airport region Digital engagement is also at the heart of rooftop photovoltaic facilities. Indeed, Günther by implementing new office spaces, and Vienna Airport’s approach to enhancing the Ofner, Member of the Management Board, will also keep on taking care of environ- experience of today’s connected travellers. Vienna Airport, explains that “sustainability mental management,” Ofner concludes.

Spring 2017 Airport Business 51 ACI EUROPE Airport Traffic Analyser

the latest airport tra c ...at your ngertips

Register for free now at:

www.aci-europe.org/tra capp

coming soon CORK AIRPORT

2017 is shaping up to be another positive year for Cork Airport with forecast passenger growth of 5%. Niall MacCarthy, Managing Director, Cork Airport, updates Marta Dimitrova on the airport’s attractive new routes, €4 million investment programme and improved passenger experience. ACI EUROPE Airport Traffic Analyser Cork Airport ‘cementing new transatlantic connectivity’

niquely positioned at the start Cork,” reveals Niall MacCarthy, Managing of both the Wild Atlantic Way Director, Cork Airport. and ’s Ancient East, Cork 2016 was a positive year for Ireland’s U Airport will host this year’s ACI second-largest airport, with passenger EUROPE Regional Airports Conference growth of 8% coming on the back of a & Exhibition in May. Delegates will be year that saw a positive reverse in its treated to a unique gastronomic experi- fortunes. This success is mainly driven by ence in the culinary capital of Ireland. the efforts the airport has put into attract- “We have been working hard on putting ing new routes. Last year, Cork added Niall MacCarthy, Managing together a great schedule of events over nine new services, as well as three new Director, Cork Airport: “We the few days of the conference, including airlines, including Düsseldorf with Aer now have the best connectivity of any airport in the Republic a very lively Welcome Reception at the Lingus, Cardiff with Flybe, and Madrid with of Ireland outside of Dublin.” Jameson Distillery in in County . Additionally, new routes to La Rochelle and Nantes with CityJet will launch over the summer season. “We now have the best connectivity of any airport in the outside of Dublin,” short-haul routes, alongside generous Cork Airport factbox MacCarthy enthuses. “2017 is shaping up marketing support. “As well as providing to be another positive year with predicted incentives to new airlines, we also work 2016: 2.23 million passenger growth of 5%. We have already closely with our key regional stakeholders, the latest airport tra c passengers seen passenger growth in the first two both tourism and business, to provide on- months and we expect this to increase the-ground data on the potential demands 2016 PASSENGER TRAFFIC further as new routes come online.” for new services,” MacCarthy adds. ...at your ngertips GROWTH: 8% WOW air will start services from 19 May to nine cities across the US and Canada, €4m capital investment 2017 PASSENGER TRAFFIC via Reykjavik. Meanwhile, in early June, programme GROWTH (JAN/FEB): 5% SWISS will launch a new direct service The airport is currently undergoing a to Zurich, and Volotea will introduce its €4 million capital investment programme. planned Verona service. The biggest changes will be in the food & KEY AIRLINE CUSTOMERS: Register for free now at: One of the most important achieve- beverage outlets in the departures lounge , Ryanair, ments so far in 2017 is the launch of due to open in May, including the new food Stobart Air, Flybe, the airport’s long-held ambition to gain court, Food Republic, which will replace Iberia Express, WOW access to the US with a new route to the previous outlet, a new landside www.aci-europe.org/tra capp air, Norwegian, Swiss, Boston operated by Norwegian, which will Café Bar on the arrivals concourse, a new Volotea launch on 1 July. “The new route to Boston bistro bar – Craft Lane – in the departures, is fantastic for tourism and trade on both while a new premium coffee outlet with NUMBER OF ROUTES: sides of the Atlantic,” says MacCarthy. “For AMT Coffee will open soon. 35+ (summer season) the coming year the airport’s focus is on Other projects benefiting from the €4 20+ (winter season) potential new routes from Central Europe million investment include an additional and on cementing our new transatlan- passenger security screening channel. TOP 5 DESTINATIONS: tic connectivity, as well as meeting with The fifth security lane will open in time for London, Amsterdam, potential airline partners about growth in the busy summer season and will alleviate Faro, Málaga, Paris targeted markets.” pressure during peak travel periods. Later Cork Airport provides a comprehen- this year, Cork Airport will also be upgrad- coming soon sive support scheme for new long and ing its Executive Lounge.

Spring 2017 Airport Business 53 CORK AIRPORT

The overall passenger experience at Cork is something the airport hopes truly sets it apart. “We believe that the travelling public’s journey starts here at the airport, so we try to ensure it is an enjoyable one,” says Niall MacCarthy, Managing Director, Cork Airport.

The overall passenger experience at Bjørn Kjos, CEO Norwegian and Niall Cork is something the airport hopes truly MacCarthy, Managing Director, Cork Airport, celebrate the announcement sets it apart. “We believe that the travel- of Cork Airport’s new route to Boston ling public’s journey starts here at the operated by Norwegian, which will airport, so we try to ensure it is an enjoy- launch on 1 July. able one,” MacCarthy comments. The airport uses technology, which provides real-time information and the ability to analyse historic data to pro- vide accurate detail in relation to queue times, which can also be communicated to passengers. Moreover, MacCarthy explains, improvement of the food & beverage offering and enhancement of the passenger security screening area will help increase spend in the airport’s retail partner, The Loop. “And thanks to our passenger growth, we have seen our revenues increase across our car parks, as well as increased demand for advertising,” he notes. “Our car hire partners have also seen a favour- able bounce in their business thanks to the new routes, as well as an improve- ment in the ratio of inbound traffic.” Considering the significance of the new transatlantic services with WOW air via Reykjavik, and directly to Boston with Norwegian, the airport’s main priorities during 2017 and beyond are to support these new routes to ensure their success. “Our target for the year is to further grow our passenger numbers by 4-5%. Given the growth we have already experienced since January, we are on track to achieve this, which would be fantastic for Cork Airport,” MacCarthy concludes.

54 Airport Business Spring 2017 183 accredited airports

21 117 in North in Europe America

36 in Asia-Paci c 5 4 in Africa in Latin America & Caribbean

Welcoming In 54 Or 37.3% 2.5 billion countries of global air passengers across passenger per year. the world. tra c. ASQ210mmX297_AirportBusinessAd.pdf 1 2016-02-17 8:55 PM

C

M

Y

CM

MY

CY

CMY

K AÉROPORTS DE LYON

hône-Alpes is Europe’s sixth- strongest economic region, with a Future Terminal 1 to GDP of €240 billion. While known R for its popularity as a leisure destination for skiing, it is also a hub for ‘propel Aéroports de high-tech industries, notably nanotech- nology and biotechnology – Polygone Scientifique and Schneider Electric are just Lyon to a new level’ two of the companies with major bases in Rhône-Alpes. Aéroports de Lyon is a catalyst for fur- ther growth in the region, with an annual Aéroports de Lyon’s ongoing economic impact of €2.5 billion. It is con- investment plan is designed to deliver tinuing a strong upward trajectory under the new ownership of the VINCI Airports- improved connectivity and passenger led consortium, which acquired a 60% experience, with a mind-set firmly stake last November. Passenger numbers at Lyon-Saint Exupéry grew by 10% to a focused on innovation. Guilhem Piat, record 9.5 million in 2016, largely driven Project Manager, explains the ‘Future by a 12.5% increase in international traf- Terminal 1’ development at Lyon-Saint fic, making it the fourth-busiest airport in France. Significantly, the 20 new destina- Exupéry Airport to Ross Falconer. tions launched included Moscow, operated by Aeroflot, and Montréal, operated by Air Canada (both introduced in June 2016). The region’s capital Lyon (pop. 2.2 mil- lion) is the second-largest metropolitan area in France after Paris, and the goal is for Lyon-Saint Exupéry to become France’s second-busiest airport and main access point to the south-east of the country. “Construction of the new ‘Future Terminal 1’ is key towards achieving this goal and further improving the region’s stand- ing both nationally and internationally,” says Guilhem Piat, Project Manager, Aéroports de Lyon. The €215 mil- lion, 70,000sqm ‘Future Terminal 1’ will allow the airport to welcome 15 million annual passengers by 2020. Construction of Phase A will be complete in 2018, providing an initial 53,000sqm and a capacity of 13 million. Phase B will then see demolition of the old Terminal 3, connection between the new terminal and the current Terminal 1, and a 23,000sqm refit of T1. “The project came into being for four main reasons,” Piat explains. “We wanted to increase the airport’s capacity, improve operational performance, enhance qual- ity of service by further complying with international standards, and continue developing non-aeronautical revenues. We strongly believe that the project will be able to fulfil these goals and propel Aéroports de Lyon to a new level.”

Spring 2017 Airport Business 57 May 15-17, 2017

Airport Host Gold Sponsor Media Partners

Organised By Supporters Cork, Ireland Save the date!

EUROPEAN AIRPORTS: A NEW ERA OF ENGAGEMENT & DIGITAL INNOVATION

Contacts Programme Sponsorship & Exhibition Danielle Michel Ellis Owen Jonathan Lee +32 (0)2 5520978 +44 (0)208 274 1540 +44 (0)208 707 2743 [email protected] [email protected] [email protected] Programme available online www.aci-europe-rac.com AÉROPORTS DE LYON

A beacon of digital innovation ‘Future Terminal 1’ will have a 10,000sqm shopping area at its heart. The rich and diverse retail experience will include 22 shops and a 1,400sqm duty free area. To fully grasp what passengers want, Aéroports de Lyon interviewed over 1,000 travellers. “This is why the commer- cial outlets in the new terminal will not only satisfy international standards, but also promote Lyon’s territorial and cul- tural heritage by including boutiques and restaurants such as Le Café Confluences, Philippe Bernand, CEO Aéroports Alpages and Les Délices de Lyon,” Piat de Lyon, laid the comments. “Innovative and original shops foundation stone for and services, such as Fedon, Looping, and ‘Future Terminal 1’ in December 2014. Construction of Phase A will be complete in 2018, providing an initial 53,000sqm and a capacity of 13 million. It will ultimately allow the airport to welcome 15 million annual passengers by 2020.

A controlled environmental impact Aéroports de Lyon is committed to envi- ronmental sustainability and is accredited at Level 3 Optimisation of ACI’s Airport Carbon Accreditation. A project on the scale of the ‘Future Terminal 1’ natu- rally has to be undertaken with a keen awareness of the potential environmen- The €215 million, 70,000sqm tal impact. “The project takes place in a ‘Future Terminal 1’ is being contained area, which means that the end undertaken with four key goals: result is a perfectly-optimised project in Increase the airport’s capacity, improve operational performance, terms of economic and social plans, with enhance quality of service by a controlled environmental impact and further complying with international low consumption of space,” says Piat. “In standards, and continue developing non-aeronautical revenues. addition, Aéroports de Lyon decided to Lyon-Saint Exupéry adopt a sustainable development initiative Airport factbox for the building, with the aim of obtain- ing High Environmental Quality (HEQ) Mademoiselle Vernis, as well as pop-up certification. The main challenges of this 2016: 9.5 million stores, will also be put in place.” initiative are to control the impacts of the passengers Aéroports de Lyon is embracing digital building on the external environment, to engagement with travelling consumers. It is create a comfortable and safe envi- 2016 PASSENGER TRAFFIC proactive on social media, and has 134,000 ronment for its users, and to preserve GROWTH: 10% ‘likes’ on Facebook and 8,000 followers natural resources or optimise their use. on Twitter. Beacons will be installed in the So far the ‘Design Phase’ certification has KEY AIRLINE ‘Future Terminal 1’ for better interaction with been obtained.” CUSTOMERS: HOP!, those passengers who have installed the Energy management is achieved easyJet, Air France, new Aéroports de Lyon smartphone app. through high-performance equipment Lufthansa, “In terms of new technology, we will and systems, while the new terminal build on our shop & collect system already project is also efficient in terms of water NUMBER OF ROUTES: 115 in place in Terminal 2 and install it in the management, with a rainwater recovery ‘Future Terminal 1’,” Piat adds. “The system system in place. TOP 5 DESTINATIONS: allows passengers to buy their items on the Constant improvement of services and Bordeaux, Paris-CDG, first leg of their journey and pick them up developing creative new ideas are indica- Nantes, Toulouse, on the way back. The item is secured in an tive of Aéroports de Lyon’s strategy, and electronic locker located on the arrival route the ‘Future Terminal 1’ is a concrete show- Frankfurt and can be opened through an access code case of how innovation is truly at the heart sent to the passenger’s smartphone.” of its operations.

Spring 2017 Airport Business 59 Recognising progressive ideas in action INNOVATION SHOWCASE transforming airport performance and reputations

With the and allows users to need for check-in and constant AirPortr’s vision for ‘seamless travel bag-free from bag drop desks has the development of end-to-end bag-free travel’ their doorstep to potential to change technology, the the final destination the entire layout of the airport journey has transformed the however, haven’t to Paul Mewett, carousel, optimising airport, leaving more become faster than check-in process. addressed the Executive Vice their time and overall space for retail and ever. Self-service Faster methods to hand “much-needed President, Portr. experience,” Mewett leisure opportunities technologies and over luggage, such as separation of bag from The ‘AirPortr + Bag explains. for passengers. From mobile devices have self-service bag drop, passenger”, according Check-In’ service is a Currently, ‘AirPortr + a security perspective, virtual bag drop at the Bag Check-In’ is avail- this process de-centra- passenger’s door- able for British Airways lises check-in and, as step, enabling them to flights departing from it scales, will eliminate travel bag-free to their Heathrow, Gatwick crowds gathering in destination airport. and London City air- non-secure areas.” Currently, Customers pre-book a ports, and has so far The vision is to ‘AirPortr + one-hour time slot for been well-received by facilitate seamless Bag Check-In’ is available AirPortr to come to their passengers. end-to-end bag-free for British home, office or hotel to “The immediate and travel, so along with Airways check-in their luggage. most visible impact is growing the business flights departing Numerous security less passengers having geographically, the from checks are performed to queue for bag drop natural progression is Heathrow, during the handling when they arrive at to deliver the bag from Gatwick and London City process, and passen- the terminal,” Mewett the arriving carousel, airports. gers can track their adds. “In terms of so the customer can luggage. physical differences enjoy the same benefits “AirPortr’s product is to the airport land- at both ends of the a real paradigm shift scape, the reduced journey. INNOVATION SHOWCASE Ongoing efforts to streamline the passenger experience have seen Europe’s airports invest in a raft of new technologies and digital channels in recent months. Ryan Ghee provides a round-up.

Helsinki Airport offers Helsinki Airport Brewery – are partici- Frankfurt has launched a pating in the service at F&B pre-ordering via app new service present. According to Airport launches called ‘ToGo’, Elena Stenholm, Finavia’s Messenger bot and which allows passengers Commercial Director, to order food & beverage more F&B outlets will be Twitter flight info items in advance, and added during 2017. then collect them at Stenholm added: service dedicated pick-up points. “People want their Orders and payment can everyday life to be Frankfurt shops, services and be made via the airport’s easier. Online stores and Airport has facilities. If the bot mobile app. various food pick-up and continued its can’t provide an Four outlets – Tapio delivery services have investment in answer to a question Café, Upper Crust, Grab become more common digital services with it will direct the & Fly and 60° Bar & in recent years. Now you the development of a user to the contact can order food for your Facebook Messenger information page flight conveniently from bot and a Twitter- or the Fraport your home sofa, and the based flight Communication ready packed items can information tool. Centre. be picked up at the pick- The Messenger In addition to the new up point without needing bot, called FRAnky, chat bot, passengers Helsinki to queue.” can communicate flying from Frankfurt Airport’s Passengers flying from with passengers in Airport can now ‘ToGo’ service Helsinki Airport can German and English. make use of a flight allows passengers to also order Helsinki Duty Powered by artificial information service avoid queues Free products through intelligence, it can on Twitter. Travellers by pre- the online ‘Reserve & provide answers to can use a dedicated ordering F&B items. Collect’ service. These passengers’ questions, handle – @FRA_ pre-ordered items can provide flight updates, FlightInfo – to request also be collected at pick- and offer information real-time flight status up points in the airport. on airport restaurants, updates.

60 Airport Business Spring 2017 Recognising progressive ideas in action transforming airport performance and reputations INNOVATION SHOWCASE

London City Airport has London City Airport offers lounge access for all The new Business opened a new Lounge at Business accessible from the for personal electronic meeting room, which passengers who want London City Lounge, which is open main terminal via a devices. High-speed can be hired. first-class hospitality, Airport can accommodate to all passengers, private taxi shuttle. Wi-Fi access is also Chris Clayton, London comfort and privacy. 30 guests at regardless of airline or Travellers can pay £35 included in the entry City Airport’s Jet Centre Our priority is our a time. class of travel. The (€40) for entry. price, while guests can Customer Service passengers and the lounge is located in the The stylish interior enjoy a selection of Manager, said: “London team will always go the newly transformed area includes hand-made food and drinks. Shower City Airport’s new extra mile to ensure airport experience of the airport’s Private furniture, a flat screen facilities are also Business Lounge is they have what they memorable and Jet Centre, which is TV, and charging points available, along with a the perfect option for need to keep their stress-free.”

app, aiming to offer Amsterdam Airport Schiphol travellers a one-stop announces cooperation with FLIO source for ‘all things airport’, providing easy access to public In a first-time “We are delighted to for both of us, and WiFi, real-time agreement be able to announce a very important departures and arrivals between an this official tie-up demonstration of information, and airport and FLIO, with Amsterdam how FLIO can be a hints and tips. It also it has been announced Airport Schiphol,” says collaborative asset for allows users to find that the FLIO app is to Stephan Uhrenbacher, all airports.” an airport’s shopping be officially adopted a founder and CEO Arthur de Groot, Sales and food & beverage and supported by of FLIO. “We will be Director, Schiphol services, as well as Amsterdam Airport working with one of Media, adds: “This commercial services Schiphol. the most digital of agreement offers such as VIP lounges, The airport’s media all airports in Europe Amsterdam Airport fast track security and division will sell adver- to jointly develop a Schiphol and its brand transportation. tising in FLIO and also digital channel to partners yet another market the app to its reach their passengers. opportunity to interact passengers, sharing Their decision to with our passengers in revenues from the officially recognise in a very relevant way, Stephan Uhrenbacher, a founder and CEO of FLIO: “We are sale of Schiphol’s retail FLIO and to enter into thus improving the delighted to be able to announce this official tie-up with Amsterdam Airport Schiphol. We will be working with and other commercial a formal commercial passenger experience one of the most digital of all airports in Europe to jointly services when they are agreement creates at the airport.” develop a digital channel to reach their passengers.” generated through FLIO. great opportunities FLIO is a global airport

Spring 2017 Airport Business 61 OUTSIDE IN Insights from close, but not inside, the airports business

Prof. Sicco Santema, Professor of Marketing and Supply Management at TU Delft and Coordinator of the PASSME project, interviewed by Ross Falconer.

PASSME project aiming to reduce European air travel time by 60 minutes

educing the door-to-door air luggage from the aircraft – and reshaping the travel experience by 60 minutes boarding process. is certainly ambitious, but that It is the proposed changes to the bag- R is the goal of the Personalised gage process that have the potential to Airport Systems for Seamless Mobility and provide the biggest time-saving – these Experience (PASSME) project. alone could reduce the journey time The three-year initiative, launched by 40 minutes, according to Santema. in summer 2015, is funded by the EU’s Door-to-door baggage delivery services Horizon 2020 programme and brings may have an important role to play. “We together 12 partners from the fields of know it is possible to transport baggage aviation, transport, academia, design, directly from home to destination, and we technology, and communications. also know that the accuracy will increase Importantly, this includes two airports enormously. The number of mishandled – Amsterdam Schiphol and Hamburg items at a parcel service company is close – which are participating in trials as the to zero, whereas 2-3 in every 1,000 is typi- PASSME vision becomes reality. cal in aviation,” Santema comments. “A Prof. Sicco Santema, Professor of bag-free airport is, therefore, feasible. It Marketing and Supply Management at TU all depends on passenger behaviour and Delft and Coordinator of the PASSME pro- their acceptance of the idea.” ject, articulates four breakthroughs that While reshaping existing airport pro- are currently being worked on: cesses is at the heart of the PASSME project, the partners are also exploring • Develop a real-time system for manag- which areas of the air travel experience Prof. Sicco Santema, Professor ing luggage flow. This breakthrough is cause the most stress and anxiety, and of Marketing and Supply already realised on a conceptual basis, how these can be remedied. The Human Management at TU Delft and and is now being tested in practice with Factors Research Group at the University Coordinator of the PASSME project: “The largest bottleneck a start-up company called Travel Light. of Nottingham is leading research in this is stress. The biggest win is • Design a passenger forecast system to area, some of which includes the use of in personalised information, manage people-flow through the air- wearable technology. pulled out of the system by the passenger if and when they need port – currently in the conceptual stage. “The largest bottleneck is stress,” it. Pushed information, on the • Improve aircraft and airport interiors. says Santema, identifying pinch points other hand, causes extra stress, “The intermediate results are now ready such as waiting to check-in and drop off as it is not really personalised.” for testing, as planned,” says Santema. baggage, going through passport and “A fuselage is installed at the TUDelft security checks, boarding, and waiting premises, so PASSME can test inde- for luggage on arrival. “The biggest win pendently from operations at an airport. is in personalised information, pulled out the possibility to use big data systems It will also be tested at Amsterdam of the system by the passenger if and to push information to passengers. “The Schiphol and Hamburg airports.” when they need it. Pushed information, smartphone app is able to collect per- • Produce a smartphone app to provide on the other hand, causes extra stress, as sonal information, like stress levels, of a passengers with key airport information it is not really personalised.” single passenger and couple that to real- – currently in the conceptual stage. Alongside the usual flight information, time data in the system. The system will airport maps, etc, a central concept of the provide information that helps the specific Creating the ‘bag-free airport’ PASSME smartphone app is assessment passenger at that moment. We assume Santema explains that PASSME looks at the of a traveller’s self-reported stress levels. this will make a big difference to the entire passenger journey, from home to desti- If the system senses that the passen- acceptance of information, as well as the nation and back. Key areas of attention include ger is stressed, it may offer a pep talk or experience of it. That is what we are going reducing the time spent on baggage – from locations within the airport to go to relax. to test in the second half of the PASSME checking-in bags to loading and unloading Santema speaks enthusiastically about project,” Santema concludes.

62 Airport Business Spring 2017 ACI ASIA-PACIFIC, EUROPE AND WORLD PRESENT

5-7 DECEMBER 2017 MUSCAT, OMAN AIRPORT ACI ASIA-PACIFIC E CHANGE ACI EUROPE ACI WORLD 2017

HOSTED BY:

Oman Airports Management Company welcomes the world’s air transport community to the Gulf

“It is a great pleasure for Oman Airports Management Company to host ACI Airport Exchange in Muscat at a time of significant growth, with the new airport at Salalah having recently opened, plus the new airport for Muscat due to open in 2017 and three new regional airports. I look forward to welcoming you personally to Muscat in December for this unmissable event!” Sheikh Aimen Ahmed Al Hosni, Chief Executive Officer, OAMC

EXTENSIVE AIRPORT SERVICES EXHIBITION FOUR CONFERENCES + KEYNOTE ARENA NETWORKING EVENTS

AN OFFICIAL ACI ASIA-PACIFIC, EUROPE AND WORLD EVENT, REPRESENTING OVER 1000 MEMBER AIRPORTS www.airport-exchange.com

APEX-2017-A4-advert.indd 1 23/03/2017 09:33 THIS IS AMBITIOUS ALEX...

... WHO’S ABOUT TO FINISH HER MASTERPIECE

Tomorrow’s airport is a special place. It’s a venue where operational

and financial efficiency has shifted from being a goal into being a vehicle to

achieve something greater. It’s where the person who lies at the heart of aviation,

the passenger, has an impressive and lasting experience enriching their journey.

Through these eyes, Scarabee Aviation Group, specialized in facilitating people

flows, baggage handling and security checks, aims to inspire airports to look

beyond. And offer ambitious Alex a canvas on which to finish her masterpiece.

TECHNOLOGY AT HEART