The Airport Master Plan

1. The Airport Master Plan
Session 2

2. Objectives
Participants will be able to describe and explain some of
the key future issues and challenges and their impact on
airport operators
Planning for the Future - Master Plan
https://youtu.be/hBDynOTvCiA
Outline
 Key Issues and challenges facing Airports
 Impacts on airport management and operations
 Conclusion

3.  By 2020, 81% more aircraft than in 2000
 86% more daily departures or 3.2% per year growth
 Increase in the average number of flights made by each aircraft in airlines’ fleets
 Increase in the average aircraft size
 Increase in the numbers of aircraft operated
 If the aviation infrastructure proves unable to accommodate all these additional flights, the airlines
will be obliged either to reject some demand for air travel or to acquire larger aircraft
Air transport Growth will Challenge the Infrastructure

4. Ref: Airbus Global Market Forecast 2003-2022

5. What is the capacity challenge
Forecasted traffic growth will result in unprecedented levels of congestion,
both airport infrastructure and ATM systems limitations
Where are we now?
 Domino effect of the capacity shortage
 High levels of congestions
 Capacity as the main bottleneck of the aviation system
 Balance between terminal and RWY capacity
 High speed train cooperation / competition – affect short
distance routes
 Congested air space
 Migration of transfer HUBs from Europe to Middle East for
routes between: Americas and Asia and Africa and Asia

6. Changes in traffic configurations
Airside and airspace congestion

7.  Change in consumer tastes and needs
Increased leisure time
Desire to travel increasing
Wider choice of destinations
 Decline in the relative cost of air transport
Continuous improvements in technology and efficiency
Liberalization (competition, low-cost carriers)
 Dramatic increase of flight safety and smoothness
Air Transport Industry Growth Factors

8.  Increased economic activity
Link between economic prosperity and airline activity, downstream effect
International Trade Agreements
Reduction of trade barriers; incentives for foreign investments
 Growth of International Commerce
Expansion beyond national boundaries
Home market saturation and competition
Available technology
Air Transport Industry Growth Factors

9. Important Investments Needed to Meet Growing Demand
 ICAO/ACI estimate that around $350 billion dollars will be needed for airport infrastructure in the
next 15-20 years to meet the demand for air travel
 Most Governments are unable to finance this rate of development
 Who will finance new operational facilities?

10. Airports are changing
 From a Public Utility
 To a User Pay Service
 To a Commercial Enterprise
 To a Fully Privatized Airport Company
Government
Department
BOO
BOT,
Lease,
Mgmt Contract
Airport
Authority
Private
Ownership

11.  Increased autonomy given to managers in regard to
utilisation of revenues generated from the operation, and
taking independent managerial decisions without any reference to or intervention by the
government
 Autonomy does not refer to any specific organizational format
 BUT: single till airport charges
 BUT: joint airport/airline investment
 Role of regulators
 Ground Handling Competition
Autonomy

12.  Commercialization is an approach to management of facilities and services in which business
principles are applied or special emphasis is placed on satisfying customers and developing
commercial activities
 It generally refers to a change in the approach to management of airport facilities and services
 Pressure for airports to be operated with a business approach to management:
Business practices
Revenue optimization and diversification
Private Sector Involvement (outsourcing, management contract, lease/concession, equity sale)
Commercialization

13.  Airport personnel needs to acquire new skills:
 Customer Service Management
 Commercial Development (retailing, property management)
 Marketing and Air Services Development
 Financing
 To secure this investment, airports need to use the kind of entrepreneurial approaches that are
used by many other businesses:
Understanding and satisfying customers’ needs and wants
Reducing costs
Expanding income opportunities
Creating competitive advantage
Commercialization

14.  Increased focus on customers
 Increased revenue generation
 Maximized commercial revenues
 Reduced government subsidies
 Increased staff motivation:
New skills / training
Increased autonomy / accountability
Benefits of commercialization

15.  Power of alliances towards handlers, ATC and airports
 Confusion with passengers, handlers, airport operator (who is operating this flight?)
 New demands for check-in allocation, ramp space, stand allocation, changes of terminals, new
passenger flows
 New challenges for airline / alliance branding
Airline Alliances and Code Sharing

16. Cheap - How do they do it?
Low Cost Carriers
High airplane utilization, quick turnarounds
 Seat pitch
 Same equipment, easy programming
Low in labor costs / high on incentives
 Motivated people, multiple tasking
 Same equipment: crews good for all
 Low service / pay-by-service

17. So what is the influence on airports?
 Need for cost-effective airports
secondary airports
distance from centers (cheaper land)
dedicated facilities: remote positions, cheap apron parking, affordable terminal building space
Low Cost Carriers
 Cheap access
 train or bus to city
 cost of total travel should be low
 demand for low landing charges  identify other means of
revenue

18. Passenger traffic 1970 - 2010 - 2050
300
2500
10000
0
2000
4000
6000
8000
10000
12000
1970 2010 2050
Year
Number
of
passengers
(mil)
The Capacity Challenge

19. Forecast accidents

20. What is the technology challenge
Increase efficiency and facilitation process using latest advancements
in information technology and systems
 Airport Collaborative Decision Making (A-
CDM)
 Systems will require new methods of
maintenance
 Inquires an investment – cost pressure
 Advancements with drones and remotely
piloted unmanned systems (RPAS)
 Multitude of regulating bodies will need to
be harmonized
Where are we now?

21.  Automation gives relieve but also uncertainty to staff
 Code F burdens airports with investment  cost pressure
 Systems require new methods of maintenance
 Collaboration improves on time performance  capacity
What is the technology challenge
New challenges / requirements for airport:
Processes Systems Training
Facilitation Investments Organizations
 What new aircraft will airlines use in the next twenty years?
  What will that mean to airlines, airports, ground handlers,
maintenance?
New aircraft technology

22. What is the security challenge
Make travelling through terminal a more comfortable
experience while improving the level of security
Where are we now?
 Cybersecurity concerns
 Developments in better intelligence and passenger profiling
 Redesigning security screening facilities and equipment
 Biometrics
 Smart Security, NEXTT
https://youtu.be/75KnavW24gc

23. What is the accessibility challenge
Increase the catchment area of an airport while providing good balance of
comforable access systems
 Airport fully accessible for disabled people
 Affordable access for daily travelers
 Start planning early enough, infrastructure projects are time-consuming
 Cooperation with government on national transport system plan
development
 Increase cooperation of all airport stakeholders as single actors have
too little control
 Use benchmarking tool to identify airport competitive position
Strategies

24. What is the environmental challenge
Balance the demand for more passengers and services with the need to be increasingly
sensitive to local, national and global environmental protection measures
Limit or reduce the number of people affected by
significant aircraft noise
Limit or reduce adverse impact of aviation
emission on local air quality
Limit or reduce impact of aviation greenhouse gas
emission on global climate

25. Strategy for the future
 Efficient infrastructure and operations
 Alleviate urban ‘heat island’ symptom with green
roofs
 Self sustainability, integrated inter-modal
transit and investment in new efficient
technology
 Green buildings design, with daylight usage, made out of
recycling materials

26.  High demand on additional capacity for aircraft numbers and sizes
 High demand for tight but efficient security
 (Soon) available technology will foster processes and efficiency and effectiveness
 Multitude of regulating bodies will need to be harmonized
 Ever lasting cost spiral will speed up
 Higher competition will demand clear safety supervision
 Environmental demands strong efforts for improvement
Conclusions

27. Thank you