Asia-Pacific Airports - Issue 4, 2016 by Asia-Pacific Airports Magazine

The official publication of ACI Asia-Pacific www.aci-asiapac.aero

Building for the future In the spotlight: Design & Build Airport report: Singapore Changi

Issue 4, 2016 www.aci-apa.com

In focus: Customer service Plus: Confectionery, Enviro report & Industry news

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ASIA-PACIFIC AIRPORTS MAGAZINE

VIEWPOINT

BACK TO THE FUTURE

Asia-Pacific Airports editor, Joe Bates, reflects on some of the success stories of 2016 and the need for new infrastructure to meet future demand.

he end of one year and the start of another is always a good time to reflect on what has happened over the last 12 months and look forward to the challenges and opportunities ahead. I believe the history books will show that 2016 was another good year for Asia-Pacific airports, which consistently grabbed the headlines for opening or unveiling plans for spectacular new facilities, traffic growth, retail/F&B innovation and customer service initiatives ranging from concerts in the terminal to the use of robots. Asia-Pacific gateways also once again excelled in ACI’s Airport Service Quality (ASQ) customer satisfaction awards, winning all the global Best by Size categories while Jaipur, Sanya Phoenix, Gimpo, Delhi-Indira Gandhi, Incheon and Singapore Changi each collected two or more awards. And the region’s airports continue to be environmental pioneers. Indeed, in this issue, you will be able to read about Delhi’s Indira Gandhi International Airport becoming India’s first carbon neutral airport; and Brisbane Airport issuing its first sustainability report. We also learned that Japan’s airports lead the world when it comes to punctuality based on OAG’s 2015 data. Osaka-Itami (93.5%) rated the ‘Best Small Airport’ and Tokyo-Haneda (91.25%) the ‘Best Large Airport’. We will learn shortly whether they held on to their crowns in 2016. With the latest ACI traffic report showing that passenger numbers were up 10% across Asia-Pacific and the Middle East in the first nine months of the year, 2016 is set to be another record breaking year for the region.

Dubai International Airport will remain the world’s busiest international gateway after handling close to 83 million passengers in 2016. Arguably the biggest challenge facing the region’s airports in 2017 and beyond is the need to fund, and then build, the facilities that will allow them to cope with the anticipated rise in demand over the next 20 years. The need to expand existing terminals, build new ones, add new runways and in some cases construct entirely new airports, certainly hasn’t been lost on the region’s airport operators with dozens of projects planned, underway or recently completed across the ACI Asia-Pacific region. These vary from huge high-profile projects such as Abu Dhabi International Airport’s eagerly awaited new Midfield Terminal, the building of Beijing’s second international airport and Incheon’s planned new Terminal 2 to smaller but none-the-less important projects such as airfield enhancements, IT upgrades and the installation of more capable security and baggage handling systems. You will be able to read about some of these exciting developments, including the latest IT trends, in the news and ‘design & build’ sections of this final issue of 2016. This issue also includes a special report on Singapore Changi and features about airport security; ASQ passenger personas; confectionery; the environment, baggage handling and retail/F&B news. Will 2017 be as interesting and exciting as 2016 for Asia-Pacific’s airports? You bet it will! APA www.aci-apa.com

ASIA-PACIFIC AIRPORTS MAGAZINE

CONTENTS

Asia-Pacific Airports Issue 4, 2016

3 Back to the future

Asia-Pacific Airports editor, Joe Bates, reflects on some of the success stories of 2016 and the need for new infrastructure to meet future demand.

22 The next step

Asia-Pacific Airports finds out more about the blueprint for a pioneering aerotropolis development at Kuala Lumpur International Airport.

8 News

26 The big IT spend

A snapshot of some of the biggest stories from across the region.

12 ACI News

It was a busy end to 2016 for ACI Asia-Pacific with a series of events, visits and other initiatives taking place across the region, writes Vivian Fung.

14 Out to impress

With plans for a three runway system, Terminal 4 nearing completion and a seemingly never ending desire to introduce innovative new services, these are exciting times for Singapore Changi Airport, writes Joe Bates.

The latest Airport IT Trends Survey reveals that China’s airports continue to invest in new capacity enhancing technologies.

30 Uniquely New Zealand

Gez Johns provides an update on the ongoing upgrade and expansion of the terminal building at Auckland International Airport.

32 The truth is out there

Brüel & Kjær’s Mike Rikard-Bell discusses how technology is helping keep residents informed of aviation’s noise mitigation efforts and dispel the misconception that ‘annoyance’ is simply about exposure. www.aci-apa.com

ASIA-PACIFIC AIRPORTS MAGAZINE

CONTENTS 34 Spotlight on security

38 Enviro Report

Cameron Mann, Smith Detection’s global markets director for aviation, talks to Asia-Pacific Airports about some of the key security challenges and opportunities facing airports today.

36 In the know

ACI World’s head of Airport Service Quality (ASQ), Dimitri Coll, discusses the publication of a new guide designed to help airports better understand passenger profiles and motivations.

Asia-Pacific Airports (APA) www.aci-apa.com Editor Joe Bates joe@aci-apa.com +44 (0)1276 476582 Design, Layout & Production Mark Draper mark@aci-apa.com +44 (0)7495 611207

APA Issue 4, 2016

Published by Aviation Media Ltd PO BOX 448, Feltham, TW13 9EA, UK Managing Director Jonathan Lee jonathan@aci-apa.com +44 (0)208 707 2743 Advertising Manager Ellis Owen ellis@aci-apa.com +44 (0)208 274 1540

Asia-Pacific Airports finds out more about the pioneering environmental efforts of Brisbane, Delhi–Indira Gandhi, Hong Kong and Sydney airports.

40 Industry news

A special report from Siemens about its baggage handling contract at Guangzhou Baiyun and Saudi Arabian success for Lagardère Travel Retail.

42 Sweet success

Asia-Pacific Airports discovers that confectionery remains an important product in airport duty free shops across the globe.

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Asia-Pacific Airports (APA) is published four times a year for the members of ACI Asia-Pacific. The opinions and views expressed in APA are those of the authors and do not necessarily reflect an ACI policy or position. The content of this publication is copyright of Aviation Media Ltd and should not be copied or stored without the express permission of the publisher.

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NEWS SHAPE OF THINGS TO COME IN SHENZHEN Shenzhen Bao’an International Airport’s new Satellite Concourse promises to be one of the most memorable in China if this artist’s impression of the future becomes reality. Designed to serve up to 22 million passengers annually, the complex will have four storeys with a mezzanine over the Departures level. Aedas is the lead design architect on the project as part of an international team that also includes Landrum & Brown (aviation planners) and local design institute/terminal planners, GDAD. Describing the new Satellite Concourse (pictured above), Aedas says: “The roof, inspired by the gently curving rivers of the region, will guide the flow of the passengers through the concourse.

“The retail and food and beverage elements are organised along the main passenger routes, further reinforcing the holistic and intuitive nature of the interior and optimising sight lines to all offerings. “The light and durable interior palette has been chosen to reinforce a sense of calm and a relaxed ambience. The building façade will be made of high performance glazing and a composite insulated metal roof cladding system.” An Automated People Mover (APM) system will provide access to the concourse, which Aedas reveals will be light and spacious. The project is expected to be completed in 2020 as the airport looks to add a third runway, satellite concourse and fourth terminal by 2025 to ensure that it is equipped to handle 63 million passengers per annum by 2040.

LOST AND FOUND AUCTION FOR CHARITY Sydney Airport’s 2016 Lost Property Auction has raised over A$200,000 for charity, with the funds to be distributed to Conservation Volunteers Australia, The Clontarf Foundation, The Australian Kookaburra Kids Foundation and Lifeline Australia. “We’re thrilled to have raised over A$200,000 to be shared among four worthy charities focusing on the environment, health, education and families in need,” enthuses Sydney Airport’s managing director and CEO, Kerrie Mather. “Our Lost Property Auction is always incredibly popular with the public and this year was no different. We’d like to thank the public for their contribution to this great result, which we couldn’t have achieved without their enthusiasm and support.” The Lost Property Auction ran online from October 11th to the 20th, 2016, with around 5,000 unclaimed items sold across categories that included electronics, cosmetics, jewellery, clothing and accessories. The auction also featured unique items such as a remote control helicopter, drill, violin, microwave, telescope and mountain bike. A collection of five assorted men’s watches was the most expensive item, with a closing bid of A$2,350. APA Issue 4, 2016

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NEW TERMINAL IN KATHMANDU Groupe ADP is working on the design of a new international terminal at Tribhuvan International Airport in Kathmandu that is capable of handling up to 7.5 million passenger per annum. The complex will allow the existing intermational terminal to be converted into a domestic terminal to create a new 12mppa gateway by 2021. According to ADP, which is carrying out the work through 100% owned subsidiary ADP Ingénierie, the project and other planned upgrades to the gateway are part of a vast reconstruction programme, resulting partly from the earthquake that ravaged the Nepalese capital in April 2015. ADP assures that the new 95,000sqm terminal project will combine “modernity and respect” for Nepal’s “all-encompassing natural environment”.

NEWS

IT UPGRADE FOR MANILA Manila’s Ninoy Aquino International Airport has selected SITA as its IT partner as it looks to invest in new common use, self-service technology to improve its operational efficiency and support IATA’s Fast Travel programme. The airport is also looking to install a new local departure control system (LDCS) to provide vital back up to its airlines in the case of disruption to their systems. Ed Monreal, general manager of Manila International Airport Authority, says: “Our aim is to improve the airport experience for passengers at Ninoy Aquino International Airport. “SITA’s next-generation technology allows the airlines to offer fast and efficient service in terminals 1 and 2 and its baggage reconciliation system will also ensure bags are electronically tracked until aircraft loading, reducing the passenger inconvenience of mishandled bags. “We are starting with shared airport systems and as we progress in our transformation we plan to introduce self-service technology such as check-in kiosks, bag drop and possibly self-boarding. “The airlines have committed to test these self-service systems in the coming months as we work together to alleviate the peak season passenger surge.”

SOURCE OF NATIONAL PRIDE Dubai International Airport picked a novel way to celebrate the 45th anniversary of the United Arab Emirates – wrapping the nation’s flag around its Air Traffic Control (ATC) tower. The 700sqm flag brought a distinctive new-look to the ATC tower ahead of the UAE’s National Day on December 2. Dubai Airports reveals that it took a six-man team using special access ropes 12 days to install the red, green, black and white flag, which it describes as “stunning”. Dubai International Airport (DXB) is the busiest international airport in the world and it will hold on to the title for at least another year with 83 million passengers expected to have passed through its facilities by the end of 2016. In addition to the terminal, ADPI will be responsible for designing an adjoining VIP terminal; maintenance hangars for Nepal Airlines and the Nepalese Air Force; a new energy plant; and a storage facility for apron equipment. Given the significant constraints of the site, which include an immediately adjacent forest and the steep slope of the land, Groupe ADP insists that all of its designs and technical features have considered the potential impact on the environment. It is also quick to note that the forest has not only been preserved, but is actually ‘showcased’ through sensitive architectural landscaping. Describing the new six contact stand terminal, Groupe ADP says: “The structure of the new international terminal is characterised by the soft curves of its roof, reminiscent of the silhouettes of the surrounding peaks.” www.aci-apa.com

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NEWS GOING DUTCH! Vietnam’s ambition to become a regional hub for passenger and cargo traffic has been boosted by a Dutch-Vietnamese government programme to co-operate on aviation and airport development across the country. The agreement – ratified by a Memorandum of Understanding (MoU) signed between the Civil Aviation Authority of Vietnam (CAAV) and a group of companies from the Netherlands – is designed to help the South East Asian country meet growing demand and achieve its aviation ambitions. “The partnership between the Dutch and Vietnamese airlines, airports and aviation service providers will contribute to Vietnam’s ambition to become a regional hub for both passenger and cargo services,” explains Dutch Ambassador to Vietnam, Nienke Trooster. “Where the Netherlands has the Port of Rotterdam and Amsterdam Schiphol to make it the gateway to Europe, Vietnam has the potential to develop into the gateway to ASEAN.”

The cluster of companies involved includes NACO and InterVISTAS – both part of Royal HaskoningDHV – as well as Vanderlande, Netherlands Aerospace Group, STRATAGEM, Districon, Ciconia Aviation Services, MovingDot and Avia. Together with experts from the Netherlands Ministry of Infrastructure and the Environment they have agreed to pass on their knowledge of how to attract private investors to help fund and develop infrastructure development projects such as the new greenfield project of Long Thanh. “South East Asia is an important region for aviation development and Vietnam is of particular significance because of its high GDP growth and the recent signing of trade agreements with the EU and US,” says NACO chairman, Craig Huntbatch. “This will accelerate the flow of travel and tourism which means that airport infrastructure will need to be adapted in parallel to meet this demand.”

KANSAI TO OPEN NEW HOTEL Kansai International Airport (KIX) will become the latest Japanese gateway to boast ‘budget style’ accommodation when First Cabin opens a new “compact hotel” at the gateway in March 2017. Located in KIX’s Aeroplaza, the new facility will be equipped with 153 cabins, lounge area and a large communal bath. Accommodation will include APA Issue 4, 2016

new ‘luxury’ 12 square metre Premium Class cabins for families/couples, which are two-and-a-half times the size of its First and Business Class cabins. First Cabin also plans opening a facility at Tokyo Haneda’s Terminal 1 in 2017. Eight existing First Cabin hotels across Japan enjoy a 90% occupancy rate.

ASIA-PACIFIC AIRPORTS MAGAZINE

ACI ASIA-PACIFC NEWS

Regional update It was a busy end to 2016 for ACI Asia-Pacific with a series of events, visits and other initiatives taking place across the region, writes Vivian Fung.

ctober’s ACI Asia-Pacific Small and Emerging Airports Seminar was hosted in Siem Reap by Cambodia Airports and attracted close to 200 aviation executives from across the region. Cambodia’s Secretary of State Secretariat of Civil Aviation, His Excellency, Mao Havannall, joined Eric Delobel, CEO of Cambodia Airports and ACI Asia-Pacific’s regional director, Patti Chau, for the opening session where the keynote address was given by Arun Mishra, regional director of ICAO’s Asia and Pacific Office.

Mishra talked about the challenges and opportunities for small and emerging airports and highlighted ICAO’s plans and programmes in support of the ‘No country left behind’ initiative. Chau revealed that around 85% of AsiaPacific’s gateways fall into the small airport category as they handled less than five million passengers per annum but each had a vital role to play. “At ACI we value each and every airport member regardless of size as all airports serve a key role in the transportation of people and goods,” she said.

APEX IN SECURITY PILOTS IN INDONESIA

ACI followed up April’s successful Airport Excellence (APEX) in Security pilot review at SSR International Airport in Mauritius with reviews at Denpasar and Balikpapan airports in Indonesia in the final quarter of 2016. Supported by ICAO, the APEX in Security programme is a peer review process that offers advice on best practice and identifies areas for APA Issue 4, 2016

improvement, and pilots will enable the fine-tuning of the programme for future security reviews at airports around the world. If your airport is interested in hosting an APEX review, whether on safety or security, or wishes to join the review team as a safety or security partner, please contact ACI Asia-Pacific’s SL Wong, head, technical and industry affairs at sl@aci-asiapac.aero

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ACI ASIA-PACIFC NEWS

On tour at Doha’s Hamad International Airport.

WORLD BUSINESS PARTNER AIRPORT TOUR

In 2016, 13 executives from 10 companies visited three airports in the Middle East – Muscat (Oman), Hamad (Qatar) and Mehrabad (Iran) – on the annual WBP Airport Tour, which for the first time was open to WBP members from ACI Europe. Launched in 2011, the objective of the ACI Asia-Pacific WBP Airport Tour is to provide a unique platform for WBPs to develop new business opportunities and for airport members to meet the service providers that could assist them in their development. During the tour, each host airport delivered a presentation on their organisation and development needs

followed by presentations from the WBPs. Both airport representatives and WBPs also interacted through the Q&A sessions. Site visits to the three airports were also conducted and several WBPs were invited by the host airport to have individual business meetings after the tour. In Doha, Hamad International Airport’s chief operating officer, Badr Mohammed Al Meer, explained that the airport wants to expand its passenger capacity from 30 million to 53 million by 2020. The group enjoyed a tour of the airport terminal, hotel and airline lounges.

ACI DEVELOPING NATIONS ASSISTANCE (ACI-DNA) PROGRAMME ON AIRPORT SECURITY

Targeted at airports in developing nations in the Asia-Pacific region, the ACI-DNA Assistance Programme organised its 36th training seminar in Siem Reap, Cambodia in late October 2016. Hosted by Cambodia Airports, the event, which was focused on security screening, attracted 17 participants from seven airports in the region. Two guest instructors from Aviation Security Co Ltd (AVSECO) in Hong Kong covered the following issues: Aviation Security Principles and Countermeasures; Categories of Restricted

Articles; Methods of Concealment; and Search Techniques and the Use of Metal Detectors. To encourage an interactive exchange, participants were invited to share frisk search and baggage search techniques used at their respective airports. The two-day programme finished with a tour of Siem Reap International Airport. Participation in the DNA programme is complimentary for attendees from eligible airports as course fees and accommodation costs are covered by ACI. Details can be found at www.aci.aero/Services/DNA-Assistance-Programme www.aci-apa.com

ASIA-PACIFIC AIRPORTS MAGAZINE

AIRPORT REPORT: SINGAPORE CHANGI

Out to impress

hen frequent travellers are asked to name their favourite airports, Singapore Changi invariably gets a mention, and more than 530 awards since its opening 35 years ago certainly bear testimony to its popularity. This year’s awards have, of course, included being named the world’s best airport handling over 40 million passengers per annum in ACI’s Airport Service Quality (ASQ) customer satisfaction awards. It shared the honour and, indeed the prize of Best Airport in the Asia-Pacific Region, with Incheon International Airport. And like its South Korean counterpart, Changi owes its success to a business APA Issue 4, 2016

strategy and corporate culture firmly focused on service and always striving to do better as much as its facilities.

THE CHANGI EXPERIENCE

As any passenger to have transited through Changi can testify, operator Changi Airport Group (CAG) takes customer service very seriously, and is particularly innovative in terms of its leisure facilities and ‘entertainment’ for passengers. Facilities such as a transit hotel that has the only airport rooftop swimming pool in the world, cinema, gardens (butterfly, cactus, orchid and sunflower), the world’s tallest airport slide, Xbox 360/PlayStation 3 consoles, koi pond, art installations such as

ASIA-PACIFIC AIRPORTS MAGAZINE

TERMINAL 4

Kinetic Rain, Daisy and a new interactive Art Wall certainly provide passengers with plenty of options to consider during long layovers. What does the Changi Experience mean to CAG’s executive vice president for airport management, Tan Lye Teck? He says: “The Changi Experience is about placing passengers and customers at the heart of all we do. “It is about understanding and anticipating their needs and wants, and then delivering them, with empathy and care, even before we are asked.” “The converse is important, too. Feedback from our customers tells us what we are doing well, and also points us towards the areas where we need to work even harder to improve.” He admits that keeping the Changi Experience “fresh and exciting” is an ongoing challenge, but is confident that with CAG’s determination to innovate and its “unstinting focus on excellence and engagement” will ensure that visiting Changi Airport never becomes boring.

In many ways Changi’s planned Terminal 4 perhaps best sums up Singapore Changi’s determination to innovate and always strive to do better. True, the 195,000sqm terminal will raise Changi’s passenger handling capacity by around 25% from the current 66 million to an impressive 82 million passengers per annum when it opens in late 2017. But expanding Changi’s capacity was by no means the sole driving force behind CAG’s decision to bulldoze the Budget Terminal just six years after building it, for the new facility will be bigger, better and more efficient than the one it is replacing. Indeed, it promises to be one of the most modern and high-tech facilities in the Asia-Pacific region as it is essentially being designed to be a largely self-service building. “It is a misconception to think of T4 as a replacement for the former Budget Terminal, although they are built on the same piece of land. T4 is being built to offer a better passenger experience and will have a look, feel and ambiance similar to Changi’s main terminals T1 to T3,” says Tan. He is also confident that its wide choice of retail and F&B offerings and passenger amenities will better serve the needs of travellers. As CAG’s overall head of airport operations, Tan is nevertheless quick to www.aci-apa.com

AIRPORT REPORT: SINGAPORE CHANGI

The recent launch of ‘Pokemon at Changi’ festivities is one example of Changi’s ongoing commitment to raising the customer service bar, says Tan. The kick-off event featuring as many as 10 dancing Pikachu attracted more than a thousand young visitors who descended on Changi’s Terminal 3 to be present for the special event. “One critical aspect of the Changi Experience is the positive surprise that we aim to deliver to all our passengers and visitors,” adds Tan. “Our aim is to make every visit to Changi Airport a pleasant and memorable experience.”

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AIRPORT REPORT: SINGAPORE CHANGI

emphasise that the new terminal’s ability to accommodate up to 16 million passengers per annum cannot be overlooked. “This is needed to accommodate traffic growth at Changi,” says Tan. “Throughout its history, Changi has always stayed ahead of its capacity needs. This approach has underpinned Changi’s success as an airport that passengers love and airlines appreciate.” Tan believes that the move to handle both legacy carriers and LCCs in T4 will help ‘future proof’ the facility by ensuring that it is equipped to cater to changing airline business models. Estimated to cost around S$1.3 billion, the new two-storey complex is also being designed to guarantee the quick turnaround times of narrow body aircraft.

IT INNOVATION

As we reported in the last issue of Asia-Pacific Airports, the desire to give passengers more control over their journeys means that Terminal 4 will be equipped with a suite of self-service options from self-service check-in and bag drop all the way through to self boarding gates. And for the first time at Changi, facial recognition technology will be used to eliminate the need for manual identity verification by staff, enabling the full automation of processing and checks from departure check-in to aircraft boarding. APA Issue 4, 2016

The move represents quite a turnaround for CAG, which back in 2012 removed 24 self-service kiosks from its terminals as it believed that they weren’t getting enough use. So what has caused the change of heart on moving more towards almost 100% selfservice technology and does this mean that today’s travellers don’t want to speak to anyone anymore? Tan says: “The adoption of self-service options is aligned with the wider global push to improve productivity and efficiency at the same time as providing passengers with more choices, greater flexibility and increased convenience. “Introducing self-service options does not mean we are abandoning the human touch. In fact, self-service options enable Changi Airport and our partners to not only optimise manpower resources for traditionally labour intensive processes, but free up even more time and bandwidth for staff to continue to deliver a first-class Changi Experience by being there to assist passengers who may need help, with a warm and friendly human touch.” IT driven innovations can actually be found right across the airport site and range from traditional technologies such as common use check-in counters to beacons, touchscreens in washrooms that people can use to call cleaners to freshen up the facilities, Terminal 1’s Social Tree and interactive works of art in terminals 2 and 3.

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AIRPORT REPORT: SINGAPORE CHANGI

THREE-RUNWAY SYSTEM

Earlier this year CAG announced the award of a S$1.1 billion contract to a joint venture formed by Hock Lian Seng Infrastructure and Sembcorp Design and Construction for the second package of works relating to the development of a three-runway system at Singapore Changi Airport. The airport currently has two 4km long runways but CAG wants to introduce a three-runway system in the early 2020s by extending to a 2.75km runway currently used by the military to 4km to ensure that it is capable of accommodating aircraft up to the size of the A380. Bringing the new runway onboard will necessitate the construction of 40km of new taxiways, so the size of the project should not be underestimated. A joint venture of Samsung C&T Corporation and Koh Brothers was awarded the contract for the first package of works for the three-runway system in October 2015. Tan adds that the project is complex and is taking place amid ongoing airport operations and therefore requires meticulous planning and “excellent execution” across different phases.

TRAFFIC TRENDS

A total of 55.4 million passengers (+2.5%), 1.85 million tonnes of cargo (+0.5%) and 346,330 aircraft movements (+1.4%) ensured that 2015 was another record year for Changi, which is now the sixth busiest gateway on the planet for international passengers. In terms of Changi’s busiest routes, the Singapore-Jakarta sector continued to top the list with 3.79 million passenger movements last year, followed by Bangkok, Kuala Lumpur, Hong Kong and Manila. And with traffic on the rise again this year – passenger numbers were up by 6% to 48.2 million in the first 10 months of 2016 while aircraft movements and cargo volumes increased by 4.1% and 5.9% respectively – it looks like being another successful year for Changi. APA Issue 4, 2016

SELETAR AIRPORT

In addition to Changi, CAG also operates Seletar Airport in Singapore and recently announced plans to upgrade its facilities with the construction of a S$50 million terminal that will allow it to handle up to 700,000 passengers per annum. The new complex will open at the end of 2018 and replace the current terminal, which handled 26,700 passengers in 2015. How will its development benefit air travellers? Tan says: “The new terminal will enable passengers to experience a fresh level of comfort and convenience. “Complementing operations at Changi, the new Seletar terminal will enable better use of resources and more flight options at both airports, benefiting Singapore’s aviation eco-system in the long run.”

SHOPPING AND DINING

Changi currently boasts over 360 shops and 140 F&B outlets which, in addition to playing an integral part of the airport experience for passengers, help provide the revenue that keeps the gateway’s aeronautical fees competitive, says Tan. In fact such is the importance of concession revenues to the airport that Tan believes that CAG has a duty as a responsible landlord to actively work with Changi’s retailers and F&B providers to maximise their sales potential.

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JEWEL IN THE CROWN

A joint venture between CAG and CapitaMalls Asia, Jewel Changi Airport is officially described as a mixed-use extension to Terminal 1 that will feature attractions, retail offerings, a hotel and facilities for airport operations. In reality this means a domed entertainment complex built on a 3.5-hectare site that will boast a plethora of shops, restaurants, gardens and a 130-room hotel centred around the world’s largest indoor waterfall at an eye-catching 40 metres. Describing the unique facility on its website, CAG says: “Jewel Changi Airport

SOCIAL MEDIA

CAG started its social media engagement shortly after corporatisation in 2009, viewing it as another way of fulfilling the promise of getting closer to its customers. It is now active on Facebook, Twitter, Instagram, Linkedin, Weibo and WeChat and has its own YouTube channel, all of which Tan believes have provided the platforms for CAG to interact with all its stakeholders, adding a human touch to the Changi brand. And he says that airports should not underestimate the global marketing reach and potential revenue earning benefits of social media. “Many of our passengers and customers now contact us directly via social media with their feedback and suggestions,” he says. “On our side, we keep them posted about airport news, our development projects big and small, events, the people in the airport community working hard and serving with passion and a myriad of other subjects like, yes, our wonderful gardens. “Our social media activities are not just focused on raising awareness of the airport, they are also about driving conversations on travel, shopping and dining. We also work closely with our airline partners.” www.aci-apa.com

AIRPORT REPORT: SINGAPORE CHANGI

“We effectively manage one of Singapore’s largest shopping malls, so it is in our best interests to be proactive and help our tenants be successful,” enthuses Tan. CAG believes that the airport shopping experience at Changi has been transformed by three new duplex store openings by DFS, The Shilla Duty Free and Zara that it claims offers shoppers an even wider range of cosmetics and perfumes, wines and spirits as well as apparel. Terminal 4 starts operations next year and will add another 17,000sqm of shopping and dining options into the mix, including some which are uniquely housed within colourful shopfronts that reflect the multi-coloured facades of the old Peranakan buildings in Singapore’s Joo Chiat/Katong neighbourhood.

brings the outdoors, indoors in a fusion of nature and a marketplace. A space that lifts spirits and captures hearts with endless sights and surprises nestled within Singapore’s largest indoor garden, topped by an awe-inspiring light and sound show at a towering rain vortex.” What tempted CAG to invest in such a hugely ambitious project? “In today’s highly competitive landscape where airports around the world are actively competing for passengers’ mindshare, Jewel Changi Airport is a game-changing project for CAG to boost Changi’s position as an air hub of choice for travellers,” says Tan. “Created to be a world-class attraction, Jewel is aimed at enhancing Changi’s appeal as a stopover point and strengthen our competitive advantage.”

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AIRPORT REPORT: SINGAPORE CHANGI

Its efforts certainly have not gone unnoticed as Changi’s Facebook page has more than 1.5 million page likes and it is engaging well with social media audiences. Its stylish ‘I’m Home’ video on YouTube, for example, has been viewed close to 1.5 million times.

ENVIRONMENT

Aviation leaders have gone on record as stating that sustainable development is the industry’s ‘licence to grow’, a philosophy Tan wholeheartedly agrees with. As a result, CAG is committed to the sustainable growth of Singapore’s aviation sector and addressing its impact on the environment. According to Tan, for Changi, this means striving to develop its infrastructure and facilities in an environmentally conscious manner, and implementing cost-effective and balanced environmental measures. Examples of this philosophy in action include its Eco Framework, where CAG engages with the airport community and collaborates with partners to build awareness and seek improvement in areas such as energy efficiency, water efficiency and waste management. And CAG’s efforts to incorporate best practices in environmental design and construction have led to all of Changi’s three existing terminals attaining the Singapore Building and Construction Authority’s Green Mark Gold Award. APA Issue 4, 2016

WHAT NEXT FOR CHANGI?

Changi’s master plan also calls for the future development of a 50 million passenger capacity Terminal 5, which would raise the airport’s capacity to an incredible 135 million – more than double today’s capacity of 66 million. According to the concept plan for Terminal 5 submitted to Singapore’s Ministry of Transport (MOT) last year, the complex will feature long linear piers “without cul-de-sacs and sharp corners” which CAG believes will give it the flexibility to adapt to future changes. The blueprint for the new terminal on a 1,080-hectare site in Changi East includes proposals for a nearby industrial zone for air cargo and maintenance, repair and overhaul (MRO) facilities. Changi is already home to an MRO cluster of more than 100 companies that includes SIA Engineering Company (SIAEC), the MRO subsidiary of Singapore Airlines. It maybe only 35 years old, but Singapore Changi is without doubt one of the world’s most progressive and innovative airports and we haven’t even mentioned its overseas interests and activities in this article. With such a determination to always strive to improve, you get the feeling that Singapore Changi’s days of being an aviation pioneer aren’t going to end APA any time soon.

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DESIGN & BUILD

The next step Asia-Pacific Airports finds out more about the blueprint for a pioneering aerotropolis development at Kuala Lumpur International Airport.

alaysia Airports has unveiled plans for what it claims is its “most exciting endeavour” to date, the creation of a huge, national economy boosting aerotropolis at Kuala Lumpur International Airport (KLIA). Identified as one of the strategic pillars in the airport operator’s five-year business plan, Runway to Success 2020 (RtS2020), it describes the planned aerotropolis as an “eco-system development that is synergistic with the airport business and aligned with Malaysia’s development agenda”. Effectively a blueprint to transform Malaysia’s busiest gateway into a “world class airport city” and tourist destination in its own right, Malaysia Airports calls the project KLIA Aeropolis, and admits to being inspired by airport city developments at Amsterdam Schiphol, Frankfurt, Incheon and other gateways across the globe. Success in its endeavours, states Malaysia Airports, will signal its transformation from an infrastructure provider to a key economic enabler by contributing significantly to the national GDP and job creation. “We have decided to develop KLIA Aeropolis in response to the demand that exists for businesses and trade to thrive in an environment that offers connectivity, speed and agility in one place,” says Datuk Badlisham Ghazali, managing director of Malaysia Airports. APA Issue 4, 2016

“Asia and ASEAN countries are the new emerging economies with ASEAN GDP expected to double by 2020 to $5 trillion. Meanwhile, Malaysia, with its location in the heart of ASEAN as well as its extensive air and ground network, and ready pool of skilled talent, is expected to experience GDP growth of 4.9% per annum up to 2020. “The decision was taken in tandem with the intention of establishing KLIA as the preferred ASEAN hub, which is also one of our RtS2020 strategic pillars.” He goes on: “We have come a long way since our days at the former Subang International Airport where we served 16 million passengers per year. Today, KLIA caters to nearly 50 million passengers per year, with over 60 airlines serving more than 130 direct destinations, and there is much more to come as the potential for air traffic growth within the Asia-Pacific region is vast.” KLIA’s land bank of over 100 square kilometres certainly gives it a distinct advantage over most other gateways in terms of having space to grow and develop. And with only a fraction of it used today and just 60% of the site set aside for aeronautical use, the airport has an abundance of land available for the development of non-aviation related commercial activities.

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DESIGN & BUILD

“The land designated for airport and aeronautical use will serve the core airport growth needs over the long-term,” explains Badlisham. “The rest will be clearly demarcated into zones comprising Airport Central, which will serve as the core commercial area; a business park functioning as a secondary commercial area; an aerospace park, logistics park and aeronautical support zone to cater to aviation-linked businesses; and a leisure and recreational zone.”

DEMAND-DRIVEN INITIATIVE

According to Malaysia Airports’ development strategy, KLIA Aeropolis will be a demanddriven project initially centred on three key clusters – Air Cargo & Logistics; Aerospace & Aviation; and MICE & Leisure. As a result, plans are on the drawing board for a Cargo Logistics Park, Aerospace Park and a Aeronautical Support Zone for MRO (Maintenance, Repair, Overhaul) services across 90, 100 and 200 acre plots respectively with the airport operator admitting that it is considering a number of options for funding and developing the projects. “Various financing options and development structures are being evaluated to ensure the maximum value to the airport,” says a spokesman.

“These include BOT type projects funded by private investors but built on land owned by Malaysia Airports and leased to them on long-term contracts. “We will create value through smart partnership and synergistic collaboration with our business partners in order to achieve mutual benefits.” Malaysia Airports reveals that all future developments for the MICE & Leisure cluster will follow the successful joint venture model it adopted with Mitsui Fudosan for the highly popular Mitsui Outlet Park KLIA at Sepang, six kilometres from the airport. The existing Sepang International Circuit, used for Formula 1’s Malaysian Grand Prix, sits within the area allocated for leisure and recreation/MICE related projects. “We are very clear in our KLIA Aeropolis development strategy,” says Badlisham. “The clusters identified are synergistic to the larger airport system and will serve to not only benefit the airport operator but also the aviation supply chain as a whole.” Talking about the Air Cargo & Logistics cluster, Badlisham notes that express cargo shipments at KLIA have grown by 33% since 2010, mirroring the growth of the e-commerce market in South East Asia, which is expected to account for $35 billion worth of business annually by 2018. www.aci-apa.com

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DESIGN & BUILD And with intra-Asian airfreight projected to grow by an average of 6.5% per annum up to 2033, he believes the future potential of air cargo for KLIA is clear for all to see. He says: “We aim to facilitate a more cohesive KLIA cargo community through establishing and implementing agreed performance standards and exploring shared databases to capture cargo flows and improve network connectivity through targeted marketing initiatives to airlines and forwarders. “In addition, we aim to strengthen the destination offer by expanding the free commercial zone and providing adequate capacity for growth, and the modern new supply chain facilities, that will support growth in e-commerce, perishables and other high value, time-sensitive supply chain shipments. “We are targeting an annual long-term forecast of 2.5 million to three million tonnes by 2050, from about 726,000 tonnes today. KLIA Aeropolis will serve as the core of our air cargo and logistics eco-system that extends to Penang and East Malaysia.” He is also confident that KLIA Aeropolis has the potential to become a leading centre for aerospace development, pointing out that the country’s appeal to the industry has already led to over 300 companies setting up operations in Malaysia, a quarter of which are based at either KLIA or Subang, the capital city’s other gateway. APA Issue 4, 2016

This boom has led to the country formulating a clearly defined national aerospace blueprint that aims to position Malaysia as a leading player in the global aerospace value chain. Within the aerospace sector, Malaysia Airports is determined to capture a significant portion of the offshoring activities performed by original equipment manufacturers (OEM) and first-tier aerostructure manufacturers who are looking to South East Asia in order to leverage on its cost competitiveness, ready talent pool, and available infrastructure. “Boeing and Airbus tell us that 30% of all their aircraft deliveries today are to the Asia-Pacific region,” comments Badlisham. “APAC also accounts for 21% of the global MRO market demand and is expected to grow at 4.6% per annum for the foreseeable future. Our aim is to capture at least 5% of the global market share.” He adds: “As a result of this strategy, KLIA Aeropolis will enable an aviation business eco-system by leveraging on businesses such MROs and OEMs. It will function as the core of Malaysia Airports’ aerospace belt, which includes Subang and Melaka airports. “Our focus on attracting first-tier aerostructure manufacturers is also expected to drive the growth of second-tier set-ups.” APA

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DESIGN & BUILD

The big IT spend The latest Airport IT Trends Survey reveals that China’s airports continue to invest in new capacity enhancing technologies.

he world’s airports are expected to invest more than $9 billion on IT this year and with China’s travel boom showing no signs of slowing down, the nation’s gateways are expected to continue to turn to technology to help ease passenger congestion and increase operational efficiency. Indeed, according to SITA’s latest Airport IT Trends Survey, overall, airports in China are forecasting an IT spend of 5.72% of their revenues in 2016, which is just shy of the 5.73% global expectation. It reveals that this year investment in operational IT is rated as a ‘high priority’ by 58% of Chinese airports, much higher than the 41% in the 2015 survey. The shift in priorities towards operational technologies is expected to help support the surging number of flights expected in the coming years, says the survey. It cites the fact that the Civil Aviation Administration of China plans to help domestic and foreign airlines open more than 200 new international routes in 2016 alone as an example of the upward trajectory in traffic.

GROWING INTEREST IN THE INTERNET OF THINGS

According to the SITA survey, which is co-sponsored by ACI and Airline Business, Chinese airports are set to overtake their global counterparts in recognising the potential of the Internet of Things (IoT). APA Issue 4, 2016

The survey found that 29% of Chinese airports have fully included the IoT in their strategy today and predict that this figure will rise to 82% by 2019. New infrastructure technologies – including sensors and cloud that are key enablers for driving adoption of the IoT – are drawing strong interest from Chinese airports. In fact the survey states that in some form or another sensor technology will be deployed at 89% of Chinese airports over the next three years. The most common place for Chinese airports to deploy sensors is at the early steps in the passenger journey such as bag-drop (33% of airports), check-in (28%) and security (26%). In contrast, the survey reveals that far fewer airports are considering sensor deployments for the airside steps of the journey. It adds that there is equally strong interest in cloud services with 53% of Chinese airports building major programmes around the technology and a further 32% evaluating it. However the survey predicts that the widespread adoption of technologies such

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SELF-SERVICE: BAGS TAKING CENTRE STAGE

as wearables, digital bag tags and Near Field Communications (NFC) is going to take longer with a good proportion of China’s airports showing no interest in them for the next few years.

COLLABORATIVE DECISION MAKING

According to the survey the technology central to improving operations and reducing travel disruption at world-leading airports is Collaborative Decision Making (CDM). Its goal is to improve the overall efficiency of operations by working with different stakeholders to integrate processes and systems to reduce delays and better manage airport resources. Currently, only 16% of airports in China have fully implemented CDM, including integration with air traffic management (ATM) systems, but over the next three years a further 68% plan to implement it. The anticipated uptake means that 84% of Chinese airports will have embraced CDM by 2019 compared to 55% globally.

Today, the self-service focus is on passengers with check-in luggage. Self-service bag-drop has grown rapidly since the 2015 survey with 84% of major Chinese airports having implemented the assisted version, up from 45% twelve months ago. The use of unassisted bag-drop, on the other hand, remains flat at just over one quarter of airports. This type of fully self-service bag-drop is more dependent on passengers using kiosks to obtain the bag tags. Today, 53% of Chinese airports have upgraded their kiosks to offer this functionality. Self-boarding gates are still at the early stages of deployments, the survey reveals, but nevertheless they are being implemented more rapidly at Chinese airports than their global counterparts. Currently, 26% of leading airports have invested in the technology, up from 8% reported three years ago in the 2013 survey, and higher than the 19% figure globally.

STRONG FOCUS ON NEW SERVICES FOR PASSENGERS

According to the survey nearly 60% of China’s airports have major programmes to provide self-service processing to passengers. However, over the next three years the emphasis for major IT programmes will move www.aci-apa.com

DESIGN & BUILD

May Zhou, vice president, SITA China, says: “The first step for improved airport operations is to implement an integrated airport operational control centre and, today, these are in place at 65% of airports with plans to reach 83% by 2019. “By this time China’s airports will also have fully embraced CDM, enabling them to effectively manage the surge in flights expected over the coming years. “The commitment to new technology by China’s airport operators is hugely encouraging. There’s a clear acknowledgement that smart technology can support the country’s growth in air transport over the coming years.”

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DESIGN & BUILD mainly towards mobile service initiatives, and to a lesser extent, social media services. The most common mobile app services available today are flight status notifications (50% of airports), cashless payments (33%) and purchasing airport services (32%). SITA predicts that almost all major Chinese airports will have apps that offer these services in the next three years, and four in five will have newer services such as navigation/wayfinding and customer relationship management. The survey also discovered that Chinaâ&#x20AC;&#x2122;s airports will be looking to monetise their social media strategies in the next three years through airport services (84%) and retail promotions (78%).

SOME GLOBAL PERSPECTIVES

The survey reveals that global initiatives picking up momentum include interactive wayfinding and identity management using biometrics, with 34% (26% in 2014) and 24% (14% in 2014) of airports respectively planning major projects. SITA says that the worldwide adoption of newer technologies by airports is also progressing, with some such as cloud computing starting to reach maturity. On the other hand, sensing technologies, such as beacons, Bluetooth, and Wi-Fi, which gauge the movement of people and assets around the airport, are attracting strong interest. APA Issue 4, 2016

The adoption of contactless, mobile NFC technology, remains subdued with only 10% of airports planning a serious deployment, down from the 14% of airports seen last year. Nevertheless, a sizeable proportion (43%) are assessing the technology with small scale evaluation projects. A much more recent development is digital tags to replace the paper-based tags used for most check-in baggage today.

CYBERCRIME

With cyber attacks becoming increasingly frequent and sophisticated, how prepared are airports to tackle this emerging threat? According to the survey, 55% of airports say their cyber security plans are fully developed and operational, while 41% admitted that their plans were still only at the development stage and 4% indicated that they had no plans in place at all. Although these figures are far from perfect they represent significant progress from three years ago when only 7% of airports said they were prepared to deal with any threats. The most common cyber security initiatives are around educating staff to the threat. Four out of five airports are already doing this through general awareness training, with almost all of the remainder planning to do so by the end of 2019.

APA

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DESIGN & BUILD

Uniquely New Zealand Gez Johns provides an update on the ongoing upgrade and expansion of the terminal building at Auckland International Airport.

nce considered something of an outlier in the Pacific, Auckland Airport is rapidly becoming an aviation hub – one Airbus predicts will be welcoming over 10,000 long-haul passengers a day by 2030. In its most recent figures, the airport reported a 12% year-on-year increase in international passenger numbers, with some nine million international passengers coming through the airport over the last year. This includes over 90% of all long-haul visitors to New Zealand. A couple of years ago, the airport laid out its strategy to accommodate this growth with a 30 year vision to build the ‘Airport of the Future’ (www.airportofthefuture.co.nz) – one that will see the domestic and international terminals combined and a second runway built to the north of this expanded airport terminal. The first major project outlined within this vision is an upgrade and expansion of the international departure area. This is now well underway and will deliver, in stages over the next two years, an enhanced security screening process and a world-class airport lounge and retail space, more than twice the size of the existing layout. APA Issue 4, 2016

The design of the new space is inspired by a uniquely New Zealand journey from sea to land to sky. Architects are Gensler, with support from New Zealand’s Jasmax. The journey will begin at the entrance to passport control as passengers step through a water wall portal to an expanded new passport control and security screening space. This includes a post-screening lobby, where passengers will be able to relax, refresh and gather both thoughts and belongings in comfort, before continuing through to the main lounge and shopping area. On leaving the lobby, a stroll through the new duty free stores and retail high street will not just evoke the colours, sounds, shapes and smells of big city shopping, but the unique magic of the New Zealand landscape. Interpretations of Kauri forests, volcanic craters and native plants will make passengers feel unmistakeably in Aotearoa, while indulging in some of the best shopping opportunities and street food available anywhere in the country. Floor to ceiling windows on the airfield side of the terminal will also provide stunning views across the runway to the surrounding

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Construction has not been without its challenges. Like another New Zealand icon, the classic Kiwi bach, the airport terminal has been tinkered with and added to over its 50 years. Efforts to accommodate the changing demands of air travel had left behind a maze of structures, rooms, corridors and even a ‘bridge to nowhere’ that have needed to be removed to make the most of what space is available. This unpicking has now largely been completed, and the expanded new form is quickly taking shape. In addition to the two giant tower cranes that sit above the airport, the construction team recently made use of the largest mobile crane in the country to help lift the steel truss for new roof into place. In all over 1,000 tonnes of steel will need to be lifted across the duration of the project. The international terminal is also being expanded with an additional two gated stands along Pier B to the west of the airport. These will both be in place by March 2018. More immediately, by the end of 2016 two additional Code F MARS stands and a new Taxiway (Echo) will be in operation. These have been delivered over an accelerated timeframe to ensure the airport is in good shape to accommodate the traditional summer peak season.

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DESIGN & BUILD

natural environment of the Manukau Harbour and the hills beyond. The main lounge space, set beneath the famed long white cloud and migrating birds that fill New Zealand’s sky, has been designed to provide a variety of seating options to suit groups of all ages and sizes. From here passengers will also be able to access the new mezzanine level, with more areas to relax and a range of bars and restaurants in which to enjoy the best in New Zealand modern cuisine. Transforming the space is a huge undertaking, complicated further by the need to keep the airport operational throughout. To enable this to be carried out safely and efficiently, the upgrade comprises three consecutive stages. Through these stages, to ensure all construction activity remains out of view, the lounge space will shrink and contort before it springs out to its expanded final form. Stage one of construction will see the new post-screening lounge open, along with the first half of the new store layouts of duty free retailers, Aelia and The Loop. Their full stores will be revealed in stage two, along with a number of new tax free stores and elements of the new passenger lounge, with the full lounge transformation scheduled to be completed in mid-2018.

APA

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NOISE MITIGATION

The truth is out there Brüel & Kjær’s Mike Rikard-Bell discusses how technology is helping keep residents informed of aviation’s noise mitigation efforts and dispel the misconception that ‘annoyance’ is simply about exposure.

t’s over 25 years since Canadian mining executive, Jim Cooney, coined the phrase “Social Licence to Operate” that has become a rallying cry for progressive businesses, nowhere more so than in airports. CEOs implicitly understand that their future success hinges on developing and nurturing their SLO and that the biggest threat comes from community concern about aircraft noise. The aviation industry has long understood the importance of reducing aircraft noise. The first ICAO recommended practices in 1971 heralded an era of ongoing improvements that have delivered aircraft that are up to 75% quieter than 50 years ago. Quieter aircraft, improved procedures, sound insulation and land use planning have achieved substantial reductions in noise exposure in parallel with aviation delivering huge increases in capacity. APA Issue 4, 2016

BETTER UNDERSTANDING OF ANNOYANCE

For decades, aviation noise management strategies have been founded on the premise that community annoyance is directly linked to the level of noise exposure. However, if annoyance was that simple, we should have seen substantial reductions in community complaints at airports with shrinking noise contours. At London Heathrow, for example, the number of people exposed to more than a 57dB noise level has fallen by over 60% in the last 20 years, however, it is hard to argue that community annoyance has reduced. This partial ‘decoupling’ of community annoyance from noise exposure is leading many progressive aviation noise thinkers to carefully examine other factors at play. For while noise exposure remains an important factor, it is clear that annoyance can be significantly magnified by community expectations, perceptions of

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TARGETING ANNOYANCE MAGNIFIERS

Technology has long played a pivotal role in driving down noise exposure and will continue to do so. Now a new generation of technology driven solutions is emerging to target annoyance magnifiers. Openness and transparency sit at the core, with a plethora of online portals emerging to help residents understand airport operations and issues such as where planes fly and why, how the weather affects operations and the choices controllers have to get the aircraft in and out while keeping the system safe.

THE PATH FORWARD

Community concern about aircraft noise will remain a fundamental constraint on the industry’s ability to meet the growing demand for air travel. It’s clear that noise exposure is a major contributor to annoyance, but a growing body of experience shows that there are many other factors at play. Importantly, many of these factors are more amenable to constructive action than is the challenge of reducing the noise exposure. Ultimately each society must negotiate its own balance – the point where it decides that the benefits of aviation are in balance with its impacts. To succeed, it is essential that the facts are clear, the debate is informed and that all voices are heard. New technology focused on reducing annoyance magnifiers is playing a key role in APA helping to find that balance.

ABOUT THE AUTHOR Mike Rikard-Bell is director of strategic accounts at Brüel & Kjær EMS. He can be contacted at Mike.Rikard-Bell@bksv.com www.aci-apa.com

NOISE MITIGATION

openness, transparency and fairness; whether stakeholders feel engaged in decision-making processes with their input fairly considered. It’s also becoming clear that some past practices have played a role in fuelling annoyance, often doing more harm than good. Publishing future noise contours showing little change has masked the personal reality and set unrealistic expectations. Residents are unlikely to notice the subtle reduction in noise from each flight, however they will certainly notice the increased numbers. It’s no wonder residents feel misled and annoyed.

Visitor centres, online tools, apps and social media are increasingly being used to create engaging environments to reach more people and foster mutual understanding. Technology is being used explain initiatives to reduce noise exposure and demonstrate the results being achieved. Explaining fly quiet programmes and showing how operational rules are enforced can go a long way to building trust that an airport is serious about its noise impact. Indeed, residents can now use online tools and apps to identify particular aircraft of interest and check whether they are following the rules. Explaining change is also key, with visual and acoustic simulators being used to explain the future in language that is meaningful and helps set realistic expectations. Technology is also transforming traditional counting and reporting of complaints, helping to identify trends and unpack underlying annoyance drivers to better target improvement initiatives and ensure that unrealistic hopes are faced honestly.

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SECURITY

Spotlight on security Cameron Mann, Smith Detectionâ&#x20AC;&#x2122;s global markets director for aviation, talks to Asia-Pacific Airports about some of the key security challenges and opportunities facing airports today. CAN AIRPORTS EVER BE 100% SAFE FROM TERRORIST ATTACK?

This implies no risk and this is simply not the case. However, airports are actively taking steps to improve their security and screening capabilities to close any gaps while continuing to promote a free and open facility. The airside screening methods currently employed across the globe are broadly seen as effective. When airports and regulators work together to ensure the right technology, people and processes are in place, there are high levels of confidence that this provides an effective deterrent. With such strong airside screening capabilities, terrorists are now focusing their attention on more exposed areas of the airport infrastructure. This has resulted in the landside attacks seen in Brussels and Istanbul. Airports, however, have opportunities to improve the airport security without simply shifting the screening point to the kerb. APA Issue 4, 2016

This involves looking at putting in place additional layers of security and screening, which includes a combination of people, processes and technology. Airport security staff, of course, remain key and their empowerment to act, are significant enablers to effective security.

WHAT LESSONS, IF ANY, HAVE WE LEARNT FROM THE TERRORIST ATTACKS ON AIRPORTS IN 2016?

There is more work to be done to support the development of security plans to deal with heightened threats to landside operations. This should be about building multi-dimensional layers of security that leverages on people, processes and technology. No single element addresses all the risks and it is only when these elements are considered in an integrated approach will the benefits be realised.

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Landside security operations require a review based upon an individual airportsâ&#x20AC;&#x2122; threat profile and what they view as their greatest risks. Moving the checkpoint to the kerb simply moves the congregation of people outside the airport terminal building, this does not remove the threat. A layered approach using continuous and random screening, human intelligence, and screening approaches to the airports are all valid methods to change the security stance.

HOW DOES RISK BASED SCREENING WORK IN REALITY?

Information gathered on a passenger informs security personnel whether they represent a higher level of risk to the airport. This helps airports recognise if an individual falls into a certain classification and needs to be treated appropriately. One of the aims of risk based screening is to identify low risk individuals who, of course, represent the majority of passengers. They can be identified when adequate information exists on each passenger. If information is missing or certain behaviours are identified this puts that individual into a higher level of risk for the airport and their screening experience changes.

HOW HAS THE TSAâ&#x20AC;&#x2122;S RISK BASED APPROACH TO SCREENING SAVED IT $120 MILLION PER ANNUM? TSA uses Pre-Check or CBP Global Entry to capture information about the traveller, which is verified through the application process. This then allows those individuals to have a different screening experience. This different screening experience allows travellers to leave electronics and liquids in bags, and not have to remove shoes, belts and jackets and this expedited screening experience

SECURITY

IS IT TIME TO FOCUS ON INCREASING LANDSIDE SECURITY?

provides increased throughput. It is this increase in screening efficiency that drives operational efficiencies, which saves on operating costs.

CAN YOU PROVIDE SOME EXAMPLES OF INNOVATIVE FACILITATION SOLUTIONS FOR IMPROVED PASSENGER FLOWS?

Kansai Airport, through the use of an integrated checkpoint solution, and Melbourne Airport, which during a SMART security trial in Q4 2015 demonstrated significant benefits in facilitation, staff and passenger experience.

WHAT NEXT FOR AIRPORT SECURITY IN TERMS OF NEW TECHNOLOGY, PROCESSES AND PROCEDURES?

Focusing on each individual layer, such as the checkpoint and making this layer of security more effective and efficient as possible is a significant area of development across the globe. We also need to look at developing a more integrated approach on how information is utilised across the different security layers to provide a dynamic risk based score to inform the physical security screening process for passengers, their bags and staff in the airport. Developments are ongoing to address landside threats and having this woven into the multiple layers of security.

ARE WE RUNNING THE RISK OF BECOMING TOO DEPENDENT ON TECHNOLOGY?

We can leverage technology to achieve a good security outcome. One thing the landside attacks have driven home is that it is a combination of people, processes and technology, not solely technology that will provide the robustness required to ensure that we can manage and mitigate current and future threats. www.aci-apa.com

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CUSTOMER SERVICE

In the know

ACI World’s head of Airport Service Quality (ASQ), Dimitri Coll, discusses the publication of a new guide designed to help airports better understand passenger profiles and motivations.

e have launched an innovative new guide called ACI passenger personas: A new approach to passenger profiling, which is designed to support airports in developing a deeper understanding of the needs of travellers, an important factor in raising nonaeronautical revenues. Airports tend to focus a lot on passenger demographics or the type of travel in order to understand what types of travellers they are serving. This is important, of course, but is just a small part of the picture. We must, for example, also look at what a passenger does in an airport, what they want or need and whether these wants or needs may change depending on circumstance. A ‘passenger persona’ approach gives us all this information. A persona is a way of modelling, summarising and communicating research undertaken on airport passengers. Through building a persona, researchers are able to better empathise with that type of passenger and gain insight into their mindset as they move through the airport. APA Issue 4, 2016

Personas consist of a visual representation of a fictitious traveller combined with a collection of key personality traits that belong to that particular type of traveller. ACI has developed six passenger personas based on 2015 Airport Service Quality (ASQ) passenger data gathered from over 550,000 travellers and 300 airports worldwide. The six passenger personas represent key traveller profiles and allow airports to strategically create different customer experiences to meet the needs of each group. In addition to the above mentioned benefits of using passenger personas, they also allow for new benchmarking opportunities whereby service quality can be judged by how well airports are catering to each of the six personas. Moreover, passenger personas provide reliable data on core traveller types in a dynamic industry, allowing airports to more effectively meet their customers’ needs. So who are the passenger personas? We have broken them down to six – the workman; friendly vacationer; value seeker;

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CUSTOMER SERVICE

sun lounge tourist; the time keeper; and the airport enthusiast.

THE WORKMAN

The workman is an experienced and demanding passenger with specific needs and high expectations.

THE FRIENDLY VACATIONER

The friendly vacationer is organised, looks for efficiency in airport processes and places importance on traditional customer service. This passenger persona has clear core needs and is highly responsive to airports that get it right with consistently clear wayfinding and a friendly staff.

THE VALUE SEEKER

Although the value seeker does not fly frequently, this persona is confident in their expectations of the airport experience. The value seeker is highly demanding, not easily satisfied and has clear expectations of both the efficiency of processes and the quality of the retail and food and beverage experience. This persona is the highest spender but expects value for money.

THE SUN LOUNGE TOURIST

Although the sun lounge tourist is not a seasoned airport traveller, they are an experienced consumer eager to enjoy an entertaining experience at the airport.

THE TIME KEEPER

The timekeeper is not a frequent flyer but is confident in using airports. This persona has clear and specific priorities and is likely to be satisfied by the airport experience if their needs are met.

THE AIRPORT ENTHUSIAST

The airport enthusiast has a very positive attitude to airports and wants to enjoy the experience. This persona understands the airport passenger process and, while keen to gain discretionary time in the lounge, is accommodating to occasional delays. The guide, ACI passenger personas: A new approach to passenger profiling, is free to all ASQ members. In addition, ASQ also offers members the option of having a tailored version of this guide to fit the specific needs of their respective airport. Please email asq@aci.aero for more information. www.aci-apa.com

APA

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THE ENVIRONMENT

Enviro Report Asia-Pacific Airports finds out more about the pioneering environmental efforts of Brisbane, Delhi–Indira Gandhi, Hong Kong and Sydney airports.

risbane Airport has issued its first ever sustainabilty report demonstrating how it addresses its responsibilities to customers, partners, shareholders and community in a sustainable manner without adverse environmental or community impacts. The FY16 Sustainability Report, developed under the Global Reporting Initiative (GRI) framework, highlights some of the airport’s recent initiatives, including improved waste management practices and community engagement and philanthropy work. CEO and managing director of Brisbane Airport Corporation (BAC), Julieanne Alroe, says: “Following the outcomes of the COP21 meeting in Paris on Climate Change in December 2015, we commenced developing our Climate Change Adaptation Plan with a focus on reducing energy consumption and carbon emissions. “We take the risk and impacts of climate change seriously so implementing a long term strategy to reduce the inevitable impacts and to future proof the airport is of great importance.” APA Issue 4, 2016

LEADING THE WAY

Delhi’s Indira Gandhi International Airport had the honour of becoming the first Asia-Pacific airport to achieve carbon neutral status under ACI’s Airport Carbon Accreditation programme. Commenting on his gateway’s Level 3+ Neutrality certification during a special Airport Carbon Accreditation Recognition Ceremony at the recent ACI World/ACI-NA Annual Conference & Exhibition in Montréal, Delhi International Airport Ltd (DIAL) CEO, I Prabhakara Rao, said: “This achievement is the result of great team work. We have set a new benchmark for other airports in this region to follow. “Going forward we are focusing on energy conservation and exploring alternative solution for generating green energy. Delhi Airport aims to increase its solar power generation capacity to 20MW by 2020.” ACI Asia-Pacific regional director, Patti Chau, noted: “I would like to extend my warmest congratulations to the team at Delhi Airport in achieving the carbon neutral airport status under Airport Carbon Accreditation. “Level 3+ Neutrality is the highest level of environmental achievement available to

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THE ENVIRONMENT

airports under the programme and it is recognition of the airport’s great efforts in reducing and offsetting emissions. We are proud of Delhi Airport’s achievement and its commitment to sustainability which has set a good example for airports in the region.” Congratulations are also in order for Hyderabad’s Rajiv Gandhi International Airport, which also recently achieved carbon neutral status. As of October 2016, a total of 30 airports in Asia-Pacific were certificated under the Airport Carbon Accreditation programme.

OUR FRIENDS ELECTRIC

Sydney Airport has reaffirmed its green credentials by unveiling Australia’s first electric airport bus. The move is part of the gateway’s A$5 million investment in environmentally friendly ground transport technology. The Electric Blu bus is the first of a fleet of six electric buses to be operational by the end of 2016, replacing the airport’s existing diesel bus fleet servicing the shuttle route between the T2/T3 terminal precinct and the Blu Emu Car Park. “These state-of-the-art electric buses can make up to 100 transfer journeys on a single charge, providing a clean and sustainable transport option for the two million travellers,

visitors and airport workers who use the Blu Emu shuttle service every year,” enthuses Kerrie Mather, the airport’s managing director and chief executive officer.

WATER WORLD

Airport Authority Hong Kong will inject HK$400 million into two newly set-up funds which are designed to formulate and implement a marine ecology and fisheries enhancement strategy to improve the marine ecology in the vicinity of its Three-runway System (3RS) project area, western Hong Kong waters and the Pearl River Estuary. The new Marine Ecology Enhancement Fund (MEEF) and the Fisheries Enhancement Fund (FEF) are structured in accordance with the conditions of the Environmental Permit for the expansion of the Hong Kong International Airport into a three-runway system. The MEEF will support initiatives related to conservation and enhancement of marine habitat and resources, scientific studies, environmental education and eco-tourism. The FEF will support initiatives related to sustainable management and enhancement of fisheries resources, sustainable fisheries operations, promotion of fisheries-related business opportunities, and measures that APA may assist in shifting fisheries operations. www.aci-apa.com

ASIA-PACIFIC AIRPORTS MAGAZINE

INDUSTRY NEWS

Fast and efficient

Guangzhou Baiyun and Incheon are the latest Asia-Pacific hubs to select Siemens to install innovative baggage handling systems.

iemens’ tray technology is in great demand at large transfer hubs across the world, and the Asia-Pacific region is no exception as ongoing projects in China and South Korea testify. In South Korea, Siemens is currently implementing a 40-kilometre long baggage handling system for the new terminal under construction at Incheon International Airport. And in China the company is tasked with the development of a flexible and energyefficient baggage handling system (BHS) solution for the new Terminal 2 at Guangzhou Baiyun International Airport. In Guangzhou, Siemens’ solution combines tray technology and conveyor belts with intelligent software applications to control the system. Set to open in 2018, the new 500,000sqm terminal in Guangzhou is a vital new addition to the airport’s infrastructure and could ultimately be capable of handling up to 45 million passengers per annum. The terminal will be used for both domestic and international flights and is expected to take service standards at the gateway to a new level, with the state-of-art BHS from Siemens making a decisive contribution. Guangdong Airport Group’s baggage handling manager, Xu Jian Fu, says: “Siemens has completely convinced us with a system design tailored to our requirements. “We have confidence in Siemens for its extensive tray system experience in the worldwide airport market and for its competent local team that will support us on site throughout all phases of the project execution.” The baggage handling system will be the first in China to have the main sorting functions 100% covered by tray technology. APA Issue 4, 2016

Siemens is also implementing an innovative early bag store comprising two high-bay warehouses capable of holding up to 4,000 items of luggage. Its huge size will make it the biggest early bag store in China. According to Siemens, the BHS’s Lift&Run system is more flexible and efficient than comparable systems because lifts perform the vertical movements while shuttles perform the horizontal movements. An extra 2,000 early bag storage spaces could be added with the future expansion of two additional high-bay warehouses. If it gets to this size it will be comparable with the Siemens-built early baggage store already in operation at Dubai International Airport.

ASIA-PACIFIC AIRPORTS MAGAZINE

INDUSTRY NEWS

WBP PROFILES

SAUDI SUCCESS FOR LAGARDÈRE TRAVEL RETAIL Lagardère Travel Retail is celebrating two significant contract wins – the concession to operate 1,834sqm of commercial space at Dammam’s King Fahd International Airport and the duty tender at Riyadh’s King Khaled International Airport. The five-year contract in Dammam – won with consortium partners Saudi Airlines Catering Company (SACC) and Arabian Ground Handling Logistic Company – will lead to the opening of two Aelia Duty Free stores in 2017. The 1,337sqm and 479sqm stores are expected to offer perfumes, confectionery, foodstuff, electronics, fashion and luxury, watches and sunglasses, toys, local products and souvenirs. Dag Rasmussen, chairman and CEO of Lagardère Travel Retail, says: “This award is a mark of confidence from Dammam King Fahd International Airport and a proof of the success of our development strategy in the Middle-East. “It is also a great illustration of the professionalism of our partners, who took a very active part in this achievement.” While in Riyadh, Lagardère Travel Retail and the same consortium partners have been awarded the concession to operate 2,040sqm of duty free space in terminals 1 and 2 at King Khaled International Airport. The contract is for two 1,020sqm outlets offering perfumes and cosmetics, fashion and accessories, gold and diamonds, tobacco, confectionary, foodstuff and toiletries, electronics, and toys and souvenirs. Talking about the contract, Abdulaziz Aboharba, CEO of Riyadh Airports Company, says: “We are looking forward to the new shops opening which will provide us with a combination of international standards together with the cultures of Saudi Arabia.”

CrowdVision Limited Location: London, UK Contacts: Chris Hitching, vice president, Asia Pacific or George Masrua, vice president, Middle East/North Africa/ South Asia E: chris.hitching@crowdvision.com, george.masrua@crowdvision.com W: www.crowdvision.com CrowdVision is a leading airport passenger analytics and insight company. Airports rely on it to improve the passenger experience; make better planning and investment decisions; reduce their business costs; and increase the value of their retail areas. Its solution processes live video input from commercial off the shelf cameras. The system undertakes passenger counting and analyses passenger flow automatically using sophisticated artificial intelligence techniques. Lead 8 Location: Singapore Contacts: Meeta Patel and Simon Blore, co-founders and executive directors E: meeta.patel@lead-8.com, simon.blore@lead-8.com W: www.lead-8.com Lead 8 is a multi-disciplinary architecture and design studio with a reputation for fusing creative thinking with award-winning experience. Founded in 2014, the aim was to create a new kind of design practice. United by a desire to discover, define, design and deliver the best solution for each and every site, our name stands for living environments, architecture and design. From our studios in Hong Kong, London, Singapore and Kuala Lumpur, Lead 8 specialises in the design of large-scale mixed use and transitoriented developments. www.aci-apa.com

APA

ASIA-PACIFIC AIRPORTS MAGAZINE

RETAIL REPORT

Sweet success

Asia-Pacific Airports discovers that confectionery remains an important product in airport duty free shops across the globe.

new study by the Tax Free World Association (TFWA) has highlighted the important role that confectionery plays in attracting customers to duty free and travel retail across all categories. The report, which is part of the TFWA Category Reports series, concludes that confectionery is a major lure to shoppers and provides a welcome element of theatre within the channel. Confectionery has one of the highest levels of conversion, reveals the TFWA, with nearly half (49%) of all visitors to the sector going on to make a purchase, putting it on a par with alcohol. It reveals that three in ten airport shoppers visit and 15% go on to purchase. And it claims that confectionery buying is also the most impulse driven, with almost two thirds buying on impulse, significantly higher than all buyers (41%). The survey also confirmed the appeal of confectionery in the all-important gifting category. Over a third bought confectionery as a gift, higher than any other category other than watches and jewellery. In addition, over half (54%) of travellers questioned said they would be tempted to buy a product that was a souvenir or was unique to the country they visited, highlighting the useful role confectionery can play in creating that essential ‘sense of place’. Travel retail exclusives are also popular, largely because they are perceived to offer good value. APA Issue 4, 2016

According to the survey, one in four of those buying confectionery choose a particular product because of its quality, making that the top driver of purchase, while one in five select an item ‘as a treat or reward’, or because it is ‘a well-known brand’. However, just over half (53%) knew the brand or the product they would buy for their main confectionery item. Half of confectionery buyers bought something other than their regular product and of these, a third bought an occasional product and 17% bought a product for the first time. When it comes to price, the picture is not wholly positive. While a quarter of shoppers check prices before they arrive in store, only three in ten say they believe confectionery at the airport is cheaper than on the high street, which is the lowest of all categories. Around 18% of non-buyers in confectionery did not buy because they thought airport prices were more expensive. “A great confectionery offer is the perfect way to catch the attention of shoppers, and appeal to the gift buyer as well as those looking to treat themselves,” says TFWA president, Erik Juul-Mortensen. “Brands, retailers and airports could consider how they engage the customer and raise the perceived value of the category – whether that’s with appealing and exclusive products or attention-grabbing promotions – if they are to continue to drive sales in this core category.”

APA