AIRPORT DEVELOPMENT International News Each Issue of Airport Development Focuses on a Different Region of the World, with Global News at the End of This Section
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Page 1 of 11 25 March 2020 No. 1117 DEV Published biweekly – available by annual subscription only – www.mombergerairport.info Editorial office / Subscriptions Phone: +1 519 833 4642 e-mail: info@mombergerairport.info Managing Editor / Publisher: Martin Lamprecht martin@mombergerairport.info News Editor: Paul Ellis paul@mombergerairport.info – Founding Editor: Manfred Momberger Momberger Airport Information by Air Trans Source Inc. – international news & data – published since 1973 AIRPORT DEVELOPMENT International News Each issue of Airport Development focuses on a different region of the world, with global news at the end of this section. A list of past focus regions published in recent years can be downloaded from the Bonus section in the subscriber pages of our website. Focus Region: North Atlantic GREENLAND (Denmark) The Finance Committee of the Danish parliament has approved a deal under which the Danish State will buy shares for DKK 700 million in Kalaallit Airports International A/S, the local airport operator, for the construction of two new international airports in Nuuk and Ilulissat, and a regional airport in Qaqortoq on the southern tip of the island. The existing runways in the west of Greenland will be extended from 950 m to 2,220 m in Nuuk and from 845 m to 2,200 m in Ilulissat. The extension means that the airports will be able to take larger aircraft such as the Airbus A330 with up to 300 passengers. At all three airports, it will be necessary to blast away rocks to make space for the construction work. The rubble will be re-used as filler and surfacing material for the runways. This will avoid the need to remove the heavy rocks, which are perfect building material that can withstand the large temperature fluctuations in Greenland. This new participation of the Danish State amounts to a 33.3% ownership. The remaining 66.6% of the shares will be owned by Kalaallit Airports Holding A/S (KAH), which will contribute DKK 1.4 billion to the project. KAH is wholly-owned by Greenland’s self-governing body. -- At EUR 572 million, these projects will be the largest infrastructure investment in Greenland’s history. The move can be seen as one of the Government measures being taken to minimize foreign – and especially Chinese – investment in essential infrastructure. China has been trying to get footholds in resource-rich Greenland under its ‘Polar Silk Road’ policy. The local government also hopes that the new international airports will underpin business expansion and support tourism. The new runways at Nuuk and Ilulissat will be long enough for the trans-Atlantic flights that at present use Kangerlussuaq or Narsarsuaq, where the runways, built of thawing permafrost soil, are becoming unsuitable for commercial operations. Earlier in 2020, the Munck Group was selected as constructor following a competitive quote competition. Its agreement counterpart is the Kalaallit Airports development company. The new runways are scheduled to become operative in 2022/23. Construction of the terminal buildings constitutes a separate bidding competition. Qaqortoq will feature a runway of 1,500 m. In early February 2020, five contractors were shortlisted by Kalaallit Airports Domestic A/S as bidders for the construction of the Qaqortoq runway: Pennecon Dexter Joint Venture (Canada); MT Højgaard A/S (Denmark); J & K Petersen Contractors P/F (Faroe Islands); Aarsleff-Ístak JV (Denmark/Iceland); and Munck Gruppen A/S (Denmark). Construction of the new 1,500-m runway is expected to take three years; hence it is expected that it will be completed in late 2023. #1117.1 Denmark’s Ministry of Defence has struck an agreement with Greenland allowing its Air Force to use the island’s Kangerlussuaq Airport beyond 2023 as Greenland is constructing two new commercial airports with financial help from Denmark. The development had raised questions over the Danish military’s continued access to Kangerlussuaq after 2023, when the other two airfields are due to open. Defence Minister Trine Bramsen said access to the old airport was crucial to the Air Force’s Copyright © 2020 - Momberger Airport Information - www.mombergerairport.info Page 2 of 11 25 March 2020 No. 1117 DEV ability to fulfil its missions in the Arctic region. -- Greenland is an autonomous territory within the Kingdom of Denmark. #1117.2 ICELAND The country’s airport operator and air navigation services provider Isavia has appointed the international construction and consultancy company Mace as Programme Manager for the Keflavik International Airport Major Development Plan (MDP). Mace’s team of aviation specialists will deliver the MDP in multiple phases across a decade. The MDP is a multi-year terminal area development programme designed to provide additional passenger processing and aircraft parking capacity, along with passenger convenience and operational enhancements. “Following an extensive and advanced procurement process, we are certain that we have secured a great delivery partner for the upcoming development of Keflavik International Airport,” says Guðmundur Daði Rúnarsson, Technical and Infrastructure Director for Keflavik Airport at Isavia. “After working on major airport-related projects all over the world, Mace brings experience and professionalism which is vital for a successful delivery of complex airport projects. We look forward for a fruitful partnership for many years to come.” The Mace team will work with Icelandic engineering specialists Verkis to oversee and deliver the MDP. This partnership will see Mace’s international consultancy experience boosted by Verkis’ local knowledge and technical capabilities. Iceland’s largest airport handled nearly 10 million passengers in 2020. The current MDP under the Keflavik Airport Masterplan is based on the provision of a new 85,000-m² East Pier, a new North Terminal, and other associated works, all of which will increase the airport’s capacity to over 14.5 million passengers. A tender for the design of the East Pier and North Building will be issued in 2020, pending feasibility of financing and construction of the East Pier. This will increase gate capacity from 13 to 30 gates, and work could start in 2022-2023. The MDP is a major component of Isavia’s plans to see Keflavik Airport become the major North Atlantic hub for air traffic, boosting the airport’s value as an engine for economic growth in Iceland. In addition to enabling significant operational improvements, the MDP is intended to realise a host of social and environmental benefits, including the creation of jobs for local people and a positive move towards becoming one of the world’s most sustainable airports. “I am delighted with our appointment to lead on the programme management of Keflavik Airport’s Major Development Plan; it’s a landmark win that serves as evidence of our ever-growing aviation offering,” says Jason Millett, Chief Operating Officer for Consultancy at Mace. “It allows us to be part of a truly transformative programme, where we can use our expertise from around the world to work with Isavia and create an airport that supports growth and opportunity across Iceland.” #1117.3 The U.S. Air Force intends to spend ISK 7 billion (USD 56.2 million) on construction projects at Keflavík Airport. The purpose behind this construction is, according to the U.S. military, to ensure that two squadrons of 18 to 24 fighter jets each could be accommodated at the airport 24 hours a day. According to the U.S. Air Force’s 2020 budget, roughly ISK 2.2 billion (USD 18 million) will go toward the development of a special area for the handling of dangerous cargo, such as weaponry; ISK 871.2 million (USD 7 million) will go towards the construction of a portable military facility; and ISK 3.98 billion (USD 32 million) will go toward building a larger apron for U.S. military use. At the same time that the U.S. government will be embarking on its own defence construction projects at the airport, the Icelandic government will also be reinforcing NATO facilities at Keflavík. Foreign Minister Guðlaugur Þór Þórðarson says that these so-called ‘defence structures’ are vital to Iceland’s security, particularly flight security, making investment in NATO maintenance a priority. #1117.4 Copyright © 2020 - Momberger Airport Information - www.mombergerairport.info Page 3 of 11 25 March 2020 No. 1117 DEV IRELAND Dublin Airport welcomed a record total of 32.9 million passengers (+4%) in 2019. About 30.7 million people started and ended their journey at DUB, while almost 2.2 million passengers used the airport as a transit hub. Short-haul traffic increased by 5% to 27.7 million, while long-haul passenger numbers increased by 4% to almost 5.2 million. The transatlantic and European markets were the best performing sectors during the year. Continental European traffic, which is Dublin Airport’s largest market segment, increased by 6% in 2019, as 17.3 million passengers took flights to and from continental European destinations. U.K. traffic increased by 1% to almost 10.2 million passengers. Transatlantic traffic increased by 6%, as 4.2 million passengers took flights to and from North American destinations, while traffic to other international destinations, which includes the Middle East, Africa and Asia, was flat. “The connectivity provided by Dublin Airport is essential, as the Irish economy is one of the most open in the world,” according to the airport’s Managing Director, Vincent Harrison. “Our economy depends on trade, exports, inbound tourism and foreign direct investment (FDI) and Dublin Airport is delighted to be able to facilitate these key sectors.” -- There were 25 new routes at Dublin Airport in 2019 – including new long-haul services to Calgary, Dallas/Fort-Worth and Minneapolis/St Paul and new short- haul services to Bodrum, Kyiv, Lourdes, and Thessaloniki. There were capacity increases on 28 existing routes, as airlines added flights to their schedules or operated services with larger aircraft.