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Strategy of Sheremetyevo International Airport

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Strategy of Sheremetyevo International Airport [2011] A study of Moscow’s strategy of using 3 airports and the inter-relationship between them. [SAMPLE AIRPORT ANALYSIS DONE BY AIRSERVE FZCO] SAVIO JOSEPH N AIRSERVE FZCO | [Dubai] CONTENTS 1. Executive Summary………………………………...………….……………3 2. Consequences of the physical design and capacity limitations for Vnukovo airport…..……...……………….………..4 3. Strategy of the different airports in Moscow city……………………………………...…………….………..11 4. Strategy of Moscow (City of 3 airports)……………………………………………………….....18 5. Conclusion…………………………………………...…..…………………22 6. References……………………………………………...…..…...………….23 7. Appendix………………….……………………………...……...…………25 LIST OF FIGURES / DIAGRAMS Figure 1 : Aeriel view of Vnukovo International Airport….....……………….4 Figure 2 : Vnukovo International Airport…..…...………………….................6 Figure 3 : Planned design of Terminal A……………………………………...7 Figure 4 : Strategic location of Moscow’s airports…………………………..11 Figure 5 : Performance comparison of Moscow’s 3 airports……………...…12 2 EXECUTIVE SUMMARY Moscow is the most populous city and the most populous federal subject of Russia. Moscow also happens to be the seventh largest city proper in the world. The population of Moscow is in excess of 10.5 Million. To cater to such a large population, Moscow has three airports: Sheremetyevo International Airport, Domodedovo International Airport and Vnukovo International Airport. These three airports operate both domestic as well as international flights to different areas of Moscow as well as to the different parts of the world. This Document has 3 aims which are:- 1. To assess the consequences of the physical design and capacity limitations of Moscow-Vnukovo airport. 2. To assess the strategy of the three airports : Sheremetyevo, Vnukovo and Domodedovo in Moscow and to understand how these airports capitalize on their personal strengths. 3. To confirm the Moscow’s strategy in operating three airports by critically analyzing the strengths and weakness of operating multiple airports in a single city. The personal analysis conducted in the document is supported by facts from a variety of sources which can be cross-verified. 3 CONSEQUENCES OF THE PHYSICAL DESIGN AND CAPACITY LIMITATIONS FOR VNUKOVO AIRPORT Vnukovo International airport has been operating for the past 60 years and is located 28 km southwest from the centre of Moscow, Russia. Despite the close proximity to Moscow city, the airport has no noise limitations (sovereign publications, 2010). This airport was built to replace the older Khodynka airport and it also served as a military airbase during the Great Patriotic War (Vnukovo International Airport, wikipedia.org, 2010). The airport has a number of characteristics which places a barrier on the number of passengers that it can handle. Airfields and Runways:- The airport has 2 intersecting runways. Runway 1 is of 3000m x 60m and Runway 2 is 3060m x 60m both of which are allowed to accept aircraft weighing up to 400 tonnes. In total there are 60 stands on an apron for all types of aircraft. An aerial view of the runways is as shown below. Figure 1: Aerial view of Vnukovo International Airport (decodecarhire.com, 2010) 4 The airport has a total Apron area of 55ha. The airport’s apron and ramp areas can accommodate up to 100 aircraft at a time with the serviceable AC type gamut running from light executive jets to the Boeing 747 (Vnukovo.ru, 2010). Consequences:- The runways have a joint capacity of only 60 takeoffs/landings per hour. The runways cannot accommodate larger aircraft such as the Airbus A380. Since the runways are intersecting runways, simultaneous aircraft landings/takeoffs are not possible as in Domodedovo International airport. Intersecting runways utilize space more efficiently however they do not permit simultaneous aircraft operations. Improvement Measures Taken:- The expansion plans for vnukovo airport include lengthening the runways to 3800 m. The instrument landing system will be upgraded from CAT II to CAT III. New taxiways will also be built along with a new control tower (Vnukovo International Airport, wikipedia.org, 2010). The increase in length of the runways will allow for larger aircrafts to land. The benefits for the airport from the larger passenger aircrafts is that they carry a higher number of passengers without increasing the number of slots used at the airport. This means that more passengers can be processed at the airport with the same number of runways. Terminals:- There are 4 terminals at Vnukovo International Airport. The airport has two passenger terminals (International Terminal B and Domestic terminal 2), one general aviation terminal (for charter business flights) and one cargo terminal (Vnukovo International Airport, wikipedia.org, 2010). In 2009 the airport catered to around 10.24 million passengers. This represents a 28.1% increase over the year 2008 (Airport traffic report, December 2009). Terminal B has a floor space of 18,000sqm allowing for an annual passenger throughput capacity of 4 Million passengers. The terminals in Vnukovo airport follow the Pier Terminal design as shown in the following diagram. 5 Figure 2 : Vnukovo International Airport (ucuyorum.com, 2010) Consequences:- The airport has the capacity to cater to a maximum of 3000 passengers per hour. A pier approach for the terminals means that it is difficult for the airport to expand however the pier approach ensures that the airport can collect a good amount of Non-Aeronautical revenues. The airport will also have a centralization of most of the functions. Improvement Measures Taken:- Vnukovo’s infrastructure development programme to 2015 forecasts a further capacity increase to 20-22 million passengers annually. A new terminal A is planned which will provide 250,000 sqm of floor space and spacious arrivals and departures concourse with 25 jetway-equipped gates. The terminal will have 5 main levels including an underground level where high speed trains will serve the capital. A planned design is as shown on the following page (airportbusiness.com). 6 Figure 3 : Planned design of terminal A (airportbusiness.com, 2009) Access:- Vnukovo Airport is the airport located closest to Moscow city centre, merely 11 km distant from the Moscow Ring Road and with just 27 km separating the field from the heart of Moscow. An extensive multimodal mass transit infrastructure connecting the airport with the city is available. There are three highways: The Kievskoye (6 lanes), Borovskoye and Minskoye, a traffic exchange system with a system of tunnels connecting the airport drive to the Kievskoye highway and ensuring smooth traffic throughout. There are also a number of route buses, route taxi vans and conventional cabs plying between the airport and town at all times. There is also a speed rail link between Kievsky train station in downtown Moscow and the airport’s passenger terminal. (Vnukovo.ru, 2010). Consequences:- Vnukovo International Airport has a reputation of being easy to travel to. Vnukovo’s passengers rarely miss their flight’s unlike the passengers traveling from Sheremetyevo airport. Since Vnukovo has such a good transport infrastructure, airlines will find it very attractive to fly to and from Vnukovo International Airport. 7 Improvement Measures Taken:- The Vnukovo Aeroexpress will soon exit directly into the Terminal A of Vnukovo airport. Airlines:- There are a total of 29 airlines operating to and from Vnukovo International airport (Vnukovo.ru, 2010). Out of this Atlaz-soyuz Airlines and U-Tair Aviation operates the maximum number of airlines from the airport. U- Tair operates to 36 destinations from Vnukovo airport (Vnukovo International Airport, Wikipedia.org, 2010). The table shown in the appendix section shows the all airlines operating to Vnukovo International Airport and the destinations that they serve. Vnukovo’s route network comprises of around 450 scheduled and charter destinations all over Russia. General aviation serves around 500 destinations. The destination list is constantly growing with new ones in Western Europe, North America, Africa and Asia being added continuously. Consequences:- Because of the increasing number of destinations that Vnukovo is flying to, Vnukovo is increasingly becoming an Airline hub. By becoming a Hub Vnukovo International Airport will see an increase in the number of transit passengers. This would mean an increase in the revenue for the airport. Improvement Measures Taken:- Vnukovo International Airport has embarked on an active and ambitious growth phase in its development. An all encompassing capital reconstruction and renovation plan is currently underway here with the backing of the Moscow city government. It is aimed at transforming Vnukovo International Airport into a highly competitive international air transportation hub and a leading transit hub between Europe and Asia (Vnukovo’s airport competitive advantages, 2010). 8 Airside Facilities & Other Attractive Features:- Vnukovo airport offers two multilevel car parks with a space for 350 cars as well as an outdoor parking space for another 200 cars in the lots adjoining the car parks (Public parking options, 2010). Vnukovo International Airport is located at a height of about 204 m above sea level. This gives Vnukovo International Airport an undisputable edge while operating in inclement weather and under limited visibility conditions such as dense fogs, heavy showers, blizzards etc. The flight time to Vnukovo International on an average service inbound from the west or south west is cut short by 10 to 20 minutes
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