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Strategic Master Plan Curacao Airport 2008-2012

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Strategic Master Plan Curacao Airport 2008-2012

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Strategic Master Plan Curacao Airport 2008-2012

  1. 1. STRATEGIC MASTER PLAN 2008 – 2012
  2. 2. MANAGEMENT SUMMARY............................................................................................................................3 INTRODUCTION................................................................................................................................................7 General Information .....................................................................................................................................7 Situation Analysis........................................................................................................................................10 Definitions...................................................................................................................................................12 Document Layout........................................................................................................................................12 1. VISION AND AMBITION ............................................................................................................................14 1.2 VISION STATEMENT ....................................................................................................................................14 1.3 MISSION STATEMENT..................................................................................................................................15 1.4 CORE PROCESSES........................................................................................................................................15 Airport Operations .............................................................................................................................15 Airport City Development...................................................................................................................16 Asset Management..............................................................................................................................16 Economic Development ......................................................................................................................17 2. OBJECTIVES & STRATEGIES..................................................................................................................18 2.1 MAIN OBJECTIVES ......................................................................................................................................18 Objective 1: Partnership alignment..................................................................................................19 o Derived Strategies ........................................................................................................................................ 19 Objective 2: Airport City Development ...........................................................................................20 o Derived Strategies ........................................................................................................................................ 21 Objective 3: “Airport Complex” infrastructure ................................................................................21 o Derived Strategies ........................................................................................................................................ 22 Objective 4: High Quality of Services ...............................................................................................23 o Derived Strategies ........................................................................................................................................ 23 Objective 5: Airlift Development......................................................................................................24 o Derived Strategies ........................................................................................................................................ 24 2.2 CORE PROCESSES FOCUS & STRATEGIES ....................................................................................................25 Airport Operations .............................................................................................................................26 o Focus ............................................................................................................................................................ 26 o Derived Strategies ........................................................................................................................................ 26 Airport City Development...................................................................................................................27 o Focus ............................................................................................................................................................ 27 o Derived Strategies ........................................................................................................................................ 27 Asset Management..............................................................................................................................28 o Focus ............................................................................................................................................................ 28 o Derived Strategies ........................................................................................................................................ 28 Economic Development ......................................................................................................................29 o Focus ............................................................................................................................................................ 29 o Derived Strategies ........................................................................................................................................ 29 2.3 HIGH-LEVEL FINANCIAL IMPACT ................................................................................................................30 2
  3. 3. Management Summary Curacao Airport Holding N.V (CAH) was incorporated by StiP, the representative of the Island territory of Curacao, on 28 December 2001. CAH is the sole shareholder of Hato International Airport N.V and of Hato Assets Company N.V.. Through these subsidiaries Curacao Airport Holding N.V. is the owner of the airport complex, which includes the airport (area A), and its surrounding areas (area B&C, also known as the Airport City). Alterra Partner Ltd has created a partnership with Trim-Invest LTD, 100% owned by a major Venezuelan contractor, and Janssen de Jong Caribbean Airport Constructors N.V., a local construction company. Together they form Curacao Airport Investments N.V (CAI). The relationship between CAH and CAI is governed by the DOMA (Development, Operation and Maintenance Agreement) for: 1) the management of the airport and area A between HIA (formally under Curinta N.V.) and Curacao Airport Partners (CAP) and; 2) the management by the Lease Agreement for the development of the land surrounding the airport (area B & C) between Hasco (formally known as Hadco) and Curacao Airport Real Estate (CARE) 3
  4. 4. The Vision of CAH can be described as follows; By 2016, Curacao International Airport is the most efficient, provides the highest quality of service worldwide and is first in the number of passengers and cargo volume (in the Caribbean) and be recognized globally as one of the top international airport Hubs for trusted, value-generating airport services To realize this vision, CAH in cooperation with StiP and the government has chosen to: 1) Outsource the operations of the airport (area A) by means of a concession agreement between HIA/Curinta and Curaçao Airport Partners (CAP); 2) Develop the Airport City (area B&C) by means of a lease agreement between Hasco N.V. and Curaçao Airport Real Estate (CARE). The mission of CAH therefore can be best described as follows; To manage HIA and Hasco in order to develop and maintain the Curacao Airport Complex into the number one Logistic Aviation Center in the Caribbean CAH is responsible for the management of HIA and Hasco and through these organizations be able to execute its supervisory role towards strategic partners according to the content of concession agreements. Originally, CAH distinguishes the following 5 tasks: Supervision of Concessionaire(s) together with the DvL (Civil Aviation Authority) Rendering Advice to Concessionaires(s) Facilitating matters to Concessionaire(s) Acting as an intermediary at financing and participation in other companies. Mediation between stakeholders, government and customers. Area Supervision Advice Facilitate Finance Mediation Construction (till 2006 + phase II) X (X) Maintenance X (X) Operation X (X) X (X) (X) Development X (X) X (X) (X) X = primary, (X) = secondary 4
  5. 5. Curacao Airport Holding has shown an increasingly healthy financial position by the execution of the current policy and strategies. Changes in the stakeholder’s policies and interests and at the airport in general related to: 1) the Passenger Terminal, 2) Alterra’s desire to sell their shares, 3) Logistical Hub Developments, 4) Airport Operations, 5) Airport City Development and 6) Investment Opportunities, forces CAH to play a more active role to improve the performance and stimulate development of the airport complex, to ensure and increase the return on investment to it’s shareholders. Because of these changes, Curacao Airport Holding distinguishes the following four (4) Core Processes; Airport Operations Outsourcing, supervision, stimulation and facilitation of the daily operations by a 30 year concession agreement with a worldwide acknowledged and experienced Airport Operator by means of a DOMA, based on: • International standards (IATA level C, ICAO), passenger and cargo quantity growth. Airport City Development Outsourcing, supervision, stimulation and facilitation of the development of the Hasco territory by stimulating, facilitating and partnering in the development opportunities with worldwide acknowledged and experienced Developers to increase airport growth and local economic activity. Asset Management To establish a strong and recognized organization that: • Supervises the strategic partners, advises, facilitates and mediates between stakeholders. • Insures return on investments for the shareholders and optimizes the value and transferability of the assets at the end of the concession period, where necessary by (co) financing or participating in development projects or companies. 5
  6. 6. Economic Development • Influence and (co) determine all relevant roles, responsibilities and authorities for the stimulation of aviation related business development. • Initiation of the restructuring of the aviation industry and attracting of new international ‘transfer and transshipment’ business in order to stimulate economic growth. As part of the Logistical Hub workgroup a number of airlift objectives and strategies have been determined and approved by the government of Curacao. As part of the Logistic Hub Vision, Curacao Airport Holding committed itself to align its strategies as much as possible with the objectives as agreed upon with all stakeholders of the Aviation Industry. Objective 1: Alignment and commitment of strategic partners to the long term vision of the Logistical Hub with clear roles and responsibilities for implementation Objective 2: Development of Airport City to stimulate and facilitate the growth of the airport, the hub and the island economy. Objective 3: Develop and upgrade the “airport complex” infrastructure based on mutually agreed to strategies that support the airlift services necessary for the competitive logistical hub. Objective 4: Insure high quality of services for airlift, cargo and services within the airport complex Objective 5: Create airlift development strategy that is supported by all strategic partners. Furthermore, Curacao Airport Holding has determined its internal ambitions and strategies to establish a strong and recognized organization that is empowered to fulfill its role as supervisor to the concession agreement(s) and will ensure a sustainable return on investment for the shareholder by optimizing the value and transferability of the assets at the end of the concession period. Since Curacao Airport Holding is a young and learning organization in the mature and tough aviation industry, it requires a broadly skilled and motivated workforce, to react flexibly and effectively on constant changes and be able to protect the long term interest of the airport and the Island of Curacao. It has become perfectly clear that CAH has to play a different role as originally intended and has to position itself more as the sole Authority to enforce guidelines and directions to the strategic development of the airport complex. 6
  7. 7. Introduction In this Strategic Master Plan, Curacao Airport Holding has formulated its vision, mission and objectives for the long term development of the airport complex, including the strategic positioning and activities needed to fulfill this ambition. General Information Curaçao Airport Holding N.V (CAH) was incorporated on 28 December 2001 and is the sole shareholder of Curinta N.V., which was the former airport operator and in turn owns the immovable property, the working stock and further assets at the airport. Curinta is part of a strategic partnership which focuses on the development of the Curaçao Airport. CAH holds all the shares of Hato International Airport N.V (HIA, formally Curinta) and of Hato Assets Company N.V (Hasco formerly known as HADCO). The majority of the shares of CAH are owned by the Island Territory Curaçao, acting through its representative Stichting Privatisering (StiP). The Nederlandse Participatie Maatschappij Nederlandse Antillen (NPMNA) has a minority share in CAH. 7
  8. 8. The efforts of StIP to search for a strategic partner for the airport has resulted on August 1st 2003 in a 30 year concession agreement with a carefully selected Airport operator and developer; Alterra Partners Ltd. Alterra Partners Ltd is owned 50%-50% by Bechtel Enterprise Ltd, one of the world’s major construction companies, and Changi Airport, one of the world’s top airports from Singapore. Alterra Partner Ltd has created a partnership with Trim-Invest LTD, 100% owned by a major Venezuelan contractor, and Janssen de Jong Caribbean Airport Constructors N.V., a local construction company. Together they form Curacao Airport Investments N.V (CAI), which owns 100% of the shares of Curaçao Airport Partners (CAP) and Curaçao Airport Real Estate (CARE) The relationship between CAH and CAI is governed by the DOMA (Development, Operation and Maintenance Agreement) for: 8
  9. 9. 1) the management of the airport and area A between HIA (formally under Curinta N.V.) and Curacao Airport Partners (CAP) and; 2) the management by the Lease Agreement for the development of the land surrounding the airport (area B & C) between Hasco (formally known as Hadco) and Curacao Airport Real Estate (CARE) Curacao Airport Holding (CAH) remains the owner of the airport and the surrounding land. The total territory, including the airport (area A), its surrounding areas (area B&C, also known as the Hasco territory and/ or the Airport City) will be referred to as the ‘Airport complex”. In the airport reside the terminal and some aspects of cargo handling as well as military services of both the Netherlands and United States governments. On the area around the airport, further referred to as the Airport City, businesses have to be developed that will service, use and support the airport. The management of the airport and area A used to fall under the reasonability of Hato International Airport (HIA) also known as Curinta N.V. To realize her vision, HIA/Curinta NV, in cooperation with StiP and the government has chosen to outsource the operations of the airport (area A) by means of a concession agreement with Curaçao Airport Partners (CAP). Area B&C exists of ca. 400 hectares, of which about one half is usable for development of aviation related business or ‘spin-off business’. The other half will be developed into green space for the island to complement tourism. The development of area B&C used to fall under the responsibility of Hato Assets Company N.V. (Hasco , before also known as HADCO). In order to optimize the potential of the Airport City, Hasco, in cooperation with StiP and the government, has chosen to outsource the development of the Airport City (area B&C) by means of a lease agreement to Curaçao Airport Real Estate (CARE). The management responsibility of HIA and Hasco are 100% kept by Curaçao Airport Holding NV. 9
  10. 10. Situation Analysis In the first years of existence, Curacao Airport Holding N.V (CAH) has concentrated on supervising the contracts between CAH and CAI. In the original Business Plan, the main responsibility of CAH was the management of HIA and Hasco and executing a supervisory role towards the strategic partners according to the content of the concession agreements. Originally, CAH distinguishes the following 5 tasks: Supervision on Concessionaire(s) together with the DvL (Civil Aviation Authority) Rendering Advice to Concessionaires(s) Facilitating matters to Concessionaire(s) Acting as an intermediary at financing or participation in other companies. Mediation between stakeholders, government and customers. Area Supervision Advice Facilitate Finance Mediation Construction (till 2006 + phase II) X (X) Maintenance X (X) Operation X (X) X (X) (X) Development X (X) X (X) (X) X = primary, (X) = secondary CAH aims to gain an acceptable return on investment for its shareholders. CAH generates its income primarily from the revenue out of the concession agreement with the strategic partners. Curacao Airport Holding has shown an increasingly healthy financial position by the execution of the current policy and strategies. However, changes in the stakeholders’ policies and interests, forces CAH to change its strategies and focus on different processes that initially have not been considered as part of their core processes and scope of responsibilities. The main changes are explained as follows; Passenger Terminal The construction of the passenger terminal is finished and the focus shifts to operations and maintenance. The passenger terminal has gone through a major improvement and passenger traffic is almost back to level before DCA-event. 10
  11. 11. Alterra’s shares The strategic decision of Alterra to ‘sell’ their participation has changed the long term partnership approach of CAI into a short term Return of Investment strategy. This has negatively influenced the partnership, further investments and the implementation/execution of the concession agreement. Logistical Hub Development The Islands major logistic players agree to align their objectives and strategies towards a common vision. The airport has become an integrated part of the Island vision to become ‘The International Logistic Hub’ of the Caribbean. Operations The Master Plan of CAP does not fully align with Vision and Mission of CAH and the DOMA does not include sufficient ‘tools’ to steer or influence the performance of CAP/CARE as CAH wished for. Airport City Development CARE has terminated the ‘lease agreement’ for the development of area B&C; Airport City Development is far behind the envisioned schedule and needs a major push. Investment Opportunities Increased interest in development opportunities and actual projects with alternative development partners improve competitiveness and our negotiating position with the (new) Airport Partner. Shareholder participation The Dutch State, as economic owner of NPMNA, has declared to withdraw its participation in Caribbean investments. With this change of strategy it is likely that the Dutch influence and interference will become minimal. During this transformation process, shareholder approval and commitment of this 5 year plan is absolutely pre- conditional to ensure a steady and clear course for the CAH. These lessons learned over the past three years, indicate that CAH can no longer solely act as supervisor on the DOMA and the lease agreement. It forces CAH to play a more active and strategic role in continuously improving the performance of the airport operations and stimulating the development of the Airport City. To initiate this, CAH has to play a decisive role in: 1) choosing the new strategic partner; 2) negotiating a new lease agreement which gives CAH more influence on the developments of the Airport City; 11
  12. 12. 3) increasing the service quality of the airport; 4) ensuring the development of the logistical Hub concept; 5) stimulating the development of the airport complex in order to increase the return on investment to the shareholders. Definitions Airport Complex: all territory around the airport owned by HIA and Hasco available for development under the supervision of the CAH Airport City: area B&C as part of the lease agreement with CARE Airport: area A as part of the DOMA contract with CAP Passenger terminal: the departure and arrival building Document Layout A graphic overview of the Strategic Master Plan 2008 – 2012 and Business Plan 2008-2012 is presented on the following page; 12
  13. 13. 13
  14. 14. 1. Vision and Ambition Leading organizations have been articulate about their vision in order to align people, processes and systems. They believe that they can become that vision if all management, operational and procedural activities are focused on contributing directly and indirectly to that vision. Curaçao Airport Holding has a vision. A vision that Curaçao International Airport, being one of the economic pillars of Curaçao, will not only facilitate, but also stimulate the realization of an integrated Logistical Center. This will benefit all stakeholders and inhabitants of the Island, who will prosper by employment, sustainable economic and social welfare and international recognition for its value added services. Curaçao Airport Holding believes that all its efforts and activities should be aligned to contribute to this vision, and all who work for or influence the performance of the organization should commit themselves to the objectives and strategies as put down in this Strategic Master Plan for 2008 – 2013. 1.2 Vision statement Curaçao International Airport has the potential to become the number one logistic aviation center of the Caribbean. It can play a major role in the economic development of Curacao and realize its ambition to become one of the worldwide acknowledged integrated hubs as laid out in the Logistic Hub Plan. The aviation industry is one of the most important pillars for the development of Curacao into the envisioned Logistical Center. Given Curacao’s geographic location, rich trade history, European relation and connections to the Latin- and North American continent, the positioning as Logistic Aviation Center makes sense. The Vision of CAH therefore can be described as follows; By 2016, Curacao International Airport is the most efficient, provides the highest quality of service worldwide and is first in the number of passengers and cargo volume (in the Caribbean) and be recognized globally as one of the top international airport Hubs for trusted, value-generating airport services 14
  15. 15. 1.3 Mission statement CAH’s objective is to gain acceptable returns on investment for its shareholders. Growth and continuous upgrades to international standards of the industry are pre- conditional to ensure sustainable financial returns. Aligning all efforts to position the airport as an internationally acknowledged Logistic Aviation Center ensures the strong position an airport needs to survive in this competitive market. CAH has chosen to attain its objectives by attracting international knowledge and resources for the operational and development activities that were formally assigned to HIA and Hasco. The main purpose of its activities is to manage the subsidiary companies and to monitor/stimulate sufficient output through the concessions that these organizations have with the strategic partners. Stimulating the logistical hub function of the airport and the establishment of other companies which contribute to the development of the airport/aviation-related activities are also a substantial component of its operational activities. The mission of CAH therefore can be best described as follows; To manage HIA and Hasco in order to develop and maintain the Curacao Airport Complex into the number one Logistic Aviation Center in the Caribbean 1.4 Core Processes Curaçao Airport Holding also distinguishes the importance of becoming a strong and recognized organization in order to realize and protect the long term Island vision for the airport. Furthermore, CAH must play a pro-active role in restructuring the aviation industry to optimize the facilitation of the developments and actively attract international (transshipment) business in order to exceed the growth of the local economy. In order to achieve its goals, CAH is managing the operations and development activities of the airport complex through the concession agreements with the partners as part of the following four (4) Core Processes; Airport Operations As CAH has outsourced the daily operations of the airport to a strategic partner, it is their responsibility to ensure the compliance with contractual obligations as set out in 15
  16. 16. the DOMA (Development Operation and Maintenance Agreement) and inform the stakeholders. As partner CAH must facilitate where possible to meet and exceed all expectations, mediate between all stakeholders and protect the overall Island interest in case of differences. In its role as owner, partner and authority, CAH also has a task as consultant/advisor in case CAH has indications that its interests are not sufficiently served by CAP or CARE. Therefore CAH distinguishes as its first Core Process: Outsourcing, supervision, stimulation and facilitation of the daily operations by a 30 year concession agreement with a worldwide acknowledged and experienced Airport Operator by means of a DOMA, based on: • International standards (IATA level C, ICAO), passenger and cargo quantity growth. Airport City Development As CAH has outsourced the development of the area surrounding the airport to a strategic partner, it is CAH’s responsibility to monitor all contractual obligations are met and to ensure that these developments contribute to the growth of the airport complex and the Island economy. CAH believes that the development of the logistical hub function of the airport and the `Airport City’ will give an impulse to the airport, which is more important to Curacao than the expected turnover of the tourist sector alone. Non aeronautical activities and revenues on the Airport City are extremely important to optimize revenues and the value of the assets at the end of the concession period. CAH therefore foresees a more direct intervention with the activities concerning the development of the areas around the airport. Therefore CAH distinguishes as its second Core Process: Outsourcing, supervision, stimulation and facilitation of the development of the Hasco territory by stimulating, facilitating and partnering in the development opportunities with worldwide acknowledged and experienced Developers to increase airport growth and local economic activity. Asset Management As owner of the assets and carrying the responsibility for the output, the value of the assets and the transferability at the end of the concession period, CAH must grow to 16
  17. 17. be a strong and effective organization. It must be capable of executing its original core activities like supervising, advising, facilitating, and when necessary mediating as a partner, consultant and airport authority. It needs to implement effective procedures, acquire sufficient knowledge, resources and effective systems in order to influence the return on investment for the shareholders by influencing the concessionaire’s activities and establishing an optimal environment for the aviation industry on Curacao. Therefore CAH distinguishes as its third Core Process: To establish a strong and recognized organization that: • Supervises the strategic partners, advises, facilitates and mediates between stakeholders. • Insures return on investments for the shareholders and optimizes the value and transferability of the assets at the end of the concession period, when necessary by (co) financing or participating in development projects or companies. Economic Development Curacao Airport Holding finds itself as a young and learning organization in a mature industry. The recent privatization of Curacao International Airport created an environment in which the regulations and allocation of all roles and responsibility in the aviation industry on Curacao are not (yet) in place. An ever changing and evolutionary industry requires more then has been laid down in the concession agreement, forcing partners to exceed the contractual obligations in order to keep pace with the demands and requirements of the industry. Since not all requirements or expectations can automatically be appointed to the concessionaires responsibility, certain aspects that are important or even pre- conditional for the airport development in the Logistic Hub vision, must take place or be initiated by CAH. Momentarily, no other parties are fulfilling this role and CAH wants to fill this void until a definitive solution can be established. The airport has on one hand a facilitating role to feed the growing demands on the tourism industry and the local economy, on the other hand the airport has the opportunity and the obligation to aggressively attract transfer- and transshipment business to exceed the normal growth. Therefore CAH distinguishes as its fourth Core Process: 17 • Influence and (co) determine all relevant roles, responsibilities and authorities for the stimulation of aviation related business development. • Initiation of the restructuring of the aviation industry and attracting of new international ‘transfer and transshipment’ business in order to stimulate economic growth.
  18. 18. 2. Objectives & Strategies Physical mobility is important; therefore local access to an international airport with multiple opportunities to fly to all parts of the world is important. Because of our island’s size, easy access to the airport is possible and the location of and connection to all areas of the hub are possible. Insuring that the airport maintains its high international rating and has the capacity to expand both in cargo and people moving is key to the success of the airport’s role in the logistical hub. The synergy between necessary airlift and airlift development must be evaluated and kept in constant balance. Investment in the infrastructure and the development of knowledge capital in logistics will position Curaçao as a leader in the region, hemisphere and world. The area that includes the airport, the airport city and the green space land will be referred to as the “airport complex”. In the airport reside the terminal and some aspects of cargo handling as well as military services of both the Netherlands and United States governments. The area around the airport, here further referred to as the Airport City, will develop airport-related business that will service businesses that use and support the airport. The area is 400 hectares, of about which one half is usable for this purpose. The other half will be developed into green space for the island to complement tourism. 2.1 Main Objectives To realize the airport vision the main objectives have to be determined. Curacao Airport Holding committed itself to align its strategies with the objectives as agreed upon with all stakeholders of the Aviation Industry as part of the Logistic Hub Vision. These approved Logistic Hub Objectives and derived strategies have been accepted by Curacao Airport Holding and have been fully integrated as part of this Strategic Master Plan. It is pre-conditional to achieve these committed objectives to actually realize the optimal results and sustain our vision for the long term. 18
  19. 19. Objective 1: Partnership alignment Alignment and commitment of strategic partners to the long term vision of the Logistical Hub with clear roles and responsibilities for implementation Curaçao Airport Holding wants to achieve its goal to become the #1 airport in service, efficiency and pax / cargo throughput in the Caribbean by outsourcing its operations to a world-wide acknowledged and experienced Airport Operator by means of a 30 year concession agreement. In order to align this concession agreement to the logistical hub vision in the long term, it is important that a long-term policy will be set up. The master plan of the concessionaire needs to be evaluated periodically and adjusted accordingly in order to align the vision of the airport operator with the local port vision and international laws. Clear roles and responsibilities needs to be defined between the contract partners and for all stakeholders. A non-political, broad based Aviation Framework with a clear Airport Policy is not in place and needs to be developed and implemented. A General Regulatory Board must be in place to make provision for competitive technical and economic regulations. Alignment of Business Plans and cooperation between the Ports, Free-zone, Customs and Immigration must result in synchronized policies and procedures that strengthen services for better people and cargo movements and economic growth. Focus must be on clear and transparent roles and responsibilities, economic impact of all activities and safety and security. o Derived Strategies 1.1. Create long-term policies for concession agreements with strategic partners that are market-driven and tied to the airport and logistical hub master plans and based on international standards 1.2. Periodic evaluation of concession agreement with the possibility for side letters to improve alignment to the logistical hub long term vision 1.3. Alignment of partner(s) to logistical hub vision 1.4. Insure contract reflects the role of the airport in the logistical hub plan 1.5. Define clear roles, responsibilities in the implementation of the vision and plan 1.6. Develop and implement airport policy 1.7. Establish airport authority 19
  20. 20. 1.8. Consider long term integrated policies for seaport, airport and distribution of goods (Free-zone) 1.9. Implementation of Regulatory Board Objective 2: Airport City Development Development of the Airport City to stimulate and facilitate the growth of the airport, the hub and the island economy. Curacao Airport Holding believes that the development of an Airport City stimulates the growth of the airport and Island economy and wants to realize this by outsourcing the development to a world-wide acknowledged and experienced Airport Developer. However, since the role of the airport city has such enormous impact on the airport operations and Island economy, clear roles and responsibilities between owner and operator needs to be defined. The responsibility that the concessionaire has to realize the developments, are taken very seriously by CAH and its shareholders. The present Business Plan as presented does not necessarily cover all CAH ambitions and lacks clear objectives, marketing approach and personnel allocation. Besides the good intentions, CAH clearly feels the necessity to fulfill a pro-active attitude towards the development and find a fine balance between supervising the developments of the concessionaire and to investigate, determine and execute her own projects and initiatives in this area. Specific businesses need to be targeted and attracted to facilitate the integrated hub services. Spin-off businesses for sustaining the airport city will be determined and developed and a sustainable plan for optimal use of the green-space has to be defined. Strategic and economic partnerships and concessionaires, that reflect the appropriate business approach and planning aligned with the CAH vision, will be attracted based on identified criteria such as; a) Provide access to new funds, b) Know-how based international reputation, c) Have a proven track record in their expertise, d) Delivers world class services that have the ability to support the needs of the world-class traveler. 20
  21. 21. o Derived Strategies 2.1 Develop roles and responsibilities of owner and operator. 2.2 Target and attract businesses to facilitate integrated hub services (tourism in green space, light industry, airport hotel, cargo services, logistical training center, business center, pilot training, aircraft maintenance facilities, fulfillment centers, repair center, etc.) 2.3 Determine and develop spin-off businesses for sustaining airport city 2.4 Develop green space in the airport city land use plan for beautification and tourism use 2.5 Attract foreign investment Objective 3: “Airport Complex” infrastructure Develop and upgrade the “airport complex” infrastructure based on mutually agreed to strategies that support the airlift services necessary for the competitive logistical hub. The unique availability of developable land around the airport creates an enormous array of opportunities for the growth of the airport and stimulation of the Island economy. The airport complex infrastructure plan must be synchronized and should integrate the Airport and Airport City business plans. In order to anticipate flexible uses of infrastructure, regular review of the plans should be based on synchronization of harbor, e-zone and airport complex use for logistics development. The a must maintain a state-of-the-art infrastructure as measur against international standards. irport ed takeholder participation is ured maintenance program of the airport complex should be approved. S important and must be meas by set criteria and an effective 21
  22. 22. FBO and inter-island development opportunities must be taken into consideration for e repurpose of the ‘old’ terminal, as well as necessary training and logistical d Derived Strategies t complex” infrastructure plan that synchronizes and integrates the airport, airport city and unused land development plans and le cture based on logistical developments l e infrastructure to maximize the coordination and collaboration ex als structure projects by government, according to hub master th development needs. It is also important to work closely with government to clean up old agreements related to infrastructure projects that deal with maintenance an road ownership and prioritize the infrastructure projects according to the hub master plan, to stimulate trade and investments. o 3.1 Create an integrated “airpor business plans 3.2 Regularly review the “airport complex” development plan to anticipate flexib uses of infrastru 3.3 Maintain state-of-the art airport infrastructure as measured against internationa standards 3.4 Develop criteria for measuring stakeholder participation in the development and upgrading th necessary for long range effective land use of the airport complex 3.5 Implement approved maintenance programs within the airport, airport compl and unused land areas of the airport complex 3.6 Repurpose existing airport terminal infrastructure to support training and logistical development needs 3.7 Investigate the most effective approach to handling inter-island airlift arriv and departures 3.8 Develop FBO service center within the airport terminal infrastructure 3.9 Prioritize the infra plan strategies, to stimulate trade and investments 22
  23. 23. Objective 4: High Quality of Services Ensure high quality of services for airlift, cargo and services within the airport complex In a competitive and constantly developing market, it is necessary to supply and maintain the highest quality of facilities and services to meet customer’s requirements and expectations. Meeting all local and international standards is pre- conditional to ensure services for airlift, cargo and other services within the airport complex. In order to insure this level of quality on all aspects of services within the airport complex, OECD standards should be used to implement efficiency and productivity standards. The performance of the airports global competitiveness must be compared to specific international standards and the concessionaire must be measured against these standards and all IATA and ICAO standards as put in the Concession agreement (DOMA) WCO standards should be implemented for the airport and airport city services. World class customized facilities and services at locally competitive prices should be implemented as well as a continuous program for customer service training must be provided for all airport complex personnel. o Derived Strategies 4.1 Evaluate and implement pre-clearance to Europe for cargo and passengers 4.2 Optimize/ professionalize ground handling services 4.3 Implement OECD approved efficiency and productivity standards in all aspects of services within the airport complex 4.4 Provide on going customer service training to all airport complex personnel (Promise) 4.5 Implement WCO standards within the airport and airport city service 4.6 Provide wireless internet services to customers served at the airport complex 4.7 Develop one-stop IT services rental shop within the airport terminal for travelers wishing to do business while on Curaçao 4.8 Provide storage facilities for transit passengers 4.9 Create VIP valet services at the airport terminal for commercial and private(FBO) passengers 23
  24. 24. Objective 5: Airlift Development Create airlift development strategy that is supported by all strategic partners. Curacao Airport Holding believes in stimulation of growth of the airport by restructuring the aviation industry organization and attracting international business to exceed the growth of the local economy. A commonly agreed-upon airlift development strategy must insure the coordination of logistical hub needs for airlift of both cargo and people, well coordinated and communicated with the department of aviation and the Minister of Transport. New air routes and markets from South America to North America and from South America to Europe through Curacao can be developed, as well the opportunity for Curacao to become an initiation point for cruise tourism (home-porting, air/sea packages) must be investigated and implemented. o Derived Strategies 5.1 Insure that one coordinating group identified as the Curaçao Airlift Development Foundation has wide and agreed-upon representation to lead in the creation and support of common airlift development strategies 5.2 Develop air routes from South America to North America through Curaçao 5.3 Develop air routes from Europe to South America through Curaçao 5.4 Develop Curaçao as a initiation point for cruise tourism( sea/air packages) 5.5 Coordinate and communicate airlift development strategies with the department of aviation and the Minister of Transport 5.6 Support strategies through the logistical hub collaborative structure to insure the coordination of logistical hub needs for airlift of both cargo and people. 24
  25. 25. 2.2 Core Processes Focus & Strategies In order to achieve the vision, the organization has to change and a strong and recognized organization must be established as the foundation to cope and react to a volatile environment whilst progressing the company’s objectives and ambitions. As a first step the strategic positioning must be determined, resulting in requirements and choices and finally into the most suitable implementation strategy. Given the approved vision, mission and objectives, CAH has to reconsider the company’s roles and responsibilities. The impact of the changed strategy of the present Strategic Partner, Alterra, can be considered as an opportunity to implement the ‘lessons learned’ and optimize the momentum by repositioning CAH as counter partner; CAH should play a pro-active role to improve the performance of the strategic partner and influence the outcome of the negotiations on the Lease Agreement to stimulate the development of the Airport City In its new role, CAH has to determine what direction it has to take to pro-actively contribute directly to its objectives. This positioning determines its focus and derived strategies within each of the Core Processes to reach the Vision and Objectives as laid out in this Strategic Master Plan 2008 – 2012 25
  26. 26. Airport Operations Curaçao Airport Holding wants to achieve its goal to become the #1 airport in service, efficiency and pax / cargo throughput in the Caribbean by outsourcing its operations to a world-wide acknowledged and experienced Airport Operator. o Focus The re-positioning of the Curacao Airport Holding creates a strong counter part in the search for the ideal new strategic partner for the Alterra shares and is our major responsibility to protect the airport and Island long term interest. Pressuring the airport operator to stimulate airport performance will increase customer satisfaction and international recognition. o Derived Strategies A.1 Play active role in attracting and determining New Strategic Partner for Alterra shares A.2 Take Considerations and preparations for take over Alterra shares (‘buy to sell’ to preferred partner) A.3 Align Concession Agreement, Master Plan and Business Plan with Islands Vision and International standards, by mutual agreement A.4 Stimulate and pressure airport performance by; • Management Reports • Schedule 5.8 “Performance Standards and Penalty / Bonus criteria” • Performance Indicators & International Standards • IATA level C • Specific and routine ‘spot-checks’ • Customer Satisfaction Surveys • ASQ measurements (comparable airports) 26
  27. 27. Airport City Development Curaçao Airport Holding believes that the development of an Airport City stimulates the growth of the airport and Island economy and wants to realize this by stimulating, facilitating and partnering in the development opportunities with world-wide acknowledged and experienced Developers o Focus Increased control by CAH (Hasco) in Airport City (area B&C) Development will stimulate and speed-up Airport Development and will contribute to the local economy by increased revenue and spin-off businesses. Increased interest in development opportunities and actual projects with alternative development partners improve competitiveness and our negotiating position with Airport Partner. CAH’s profitability will increase enormously when Hasco allows itself to actively attract investors and developers, direct lease of the land with concession revenue and participation in businesses o Derived Strategies B.1 Search and attract alternative Strategic Development Partners B.2 Negotiate Area B&C Development and Investment plans as part of the selection criteria for Alterra shares B.3 Align development plans and opportunities with Logistic Hub vision and infrastructure needs B.4 Consider accepting termination of “Lease Agreement” B.5 Target and attract businesses to facilitate integrated hub services, spin-off business and green space development B.6 Invest in projects as minority stakeholder to stimulate investment B.7 Increase lease revenue by (re) negotiating lease / concession agreement(s) 27
  28. 28. Asset Management Curaçao Airport Holding must be set up to become a strong and recognized organization in order to realize and protect the long term Island vision for the airport and to facilitate and stimulate the growth of the Island economy o Focus CAH has to play a different role as originally intended and have to position itself more as the sole Authority to enforce guidelines and directions to the strategic development of the airport complex. CAH has to position itself as an independent authority to all stakeholders by increasing professionalism and improving skills and knowledge to effectively enforce optimal result of the airport operations. o Derived Strategies C.1 Position and create acceptance of CAH as independent authority by all stakeholders to determine, facilitate and mediate long term development C.2 Optimize Professionalism of CAH organization by; • Training program • Motivation (performance management) • Alignment of staffing level to workload • Organization structure, task descriptions, procedures, transparent communication and effective administration and documentation C.3 Improve skills and knowledge, ensure flexibility, multi-tasking and motivated personnel and improve Marketing Position of the airport as an Investment Opportunity. C.4 Ensure effective management by; • Effective execution of contractual obligations • Agreed-upon Operating Master Plan • Agreed-upon Maintenance Plan • Agreed-upon Quality Control Plan • Independent audited Revenue Calculation and Payment Structure C.5 Ensure steady strategic course by approval and commitment of shareholders to this 5 year Strategic Master Plan C.6 Reserve sufficient funding to buy out any possible take-over candidate for the NPMNA shares, if applicable, in case CAH believes this candidate will not contribute sufficiently to- or even endanger the committed vision and objectives 28
  29. 29. Economic Development Curacao Airport Holding believes in stimulation of growth of the airport by restructuring the aviation industry organization and attracting international business to exceed the growth of the local economy o Focus Curacao International Airport must not only facilitate the growth in Tourism Industry, but actively facilitate and stimulate increase in aircraft movements by attracting foreign investment and businesses from outside into the local economy. Support of strategies for Regulation and Legislation by the Board of Supervisory Directors, the shareholders and through the Logistical Hub collaborative structure, is important to ensure realization of Logistical Hub concept and proper regulation of the aviation industry. o Derived Strategies D.1 Determine high-level Marketing & Sales strategy for Logistical Hub concept for the implementation of the; • Air-route Development Plan • Airport City Master Plan D.2 Stimulate the realization and implementation of; • Airport Policy • Airport Authority • Integrated policies for Air, Sea and Distribution • Regulatory Board D.3 Stimulate aviation related Development; • Attract Foreign Investment • Re-purpose existing facilities and services • Develop & Implement Airlift Development Strategies • Develop Sea – Air packages • Air Cargo and Passenger Transfer Development • FBO and corporate aviation parking facilities • Aircraft Maintenance 29
  30. 30. 2.3 High-level Financial Impact Given the changes and chosen strategies to respond effectively, the following projects are planned for the coming 5 years. The financial commitment and investments that is foreseen for CAH with regard to these projects is stated in the table below. A more detailed specification of these projects will be given in the Business plan 2008 -2012. 1. Purchase of Alterra shares and supply working capital Nafl. 25.000.000, = 2. Purchase of NPMNA Nafl. 5.000.000, = 3. Investment in Airport City Nafl. 5.000.000, = 4. Investment in airlift development for the Hub concept Nafl. 10.000.000, = _________________ TOTAL Nafl. 45.000.000, = 30
  31. 31. “play a more active and strategic role in continuously improving the performance of the airport operations and stimulating the development of the airport complex in order to guarantee and increase the return on investment for the shareholders”. 31

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