Building New Capacity meeting future international growth by Solomon Wong
2011 ACI-NA International Aviation Issues Seminar December 1, 2011
Age Old “Pass” “Port” Process
Source: State of Hawaii
Process Changes: Paperless Processes Are Just Emerging
Banking Sector
Differentiated Processes Have Matured Over the Past 20 Years
Source: CBP, CBSA
But not everyone will pre-register Incentives • Faster Processing • No direct questioning • Access to trial for Precheck • Access to international programs (e.g. Privium)
Disincentives • Interview • Fee • Application Form • Infrequent travel
Recent International Arrivals data at top 20 US Airports for YE April 2011 vs. 2010, 2009 12
International Passengers (millions)
2011 vs.2010: 7% 10
2011 vs.2010: 8%
2009 April 2010 April
2011 vs.2010: 8% 8
2011 April
2011 vs.2010: 10% 2011 vs.2010: 11%
6
2011 vs.2010: 25% 4
2
0
Source: US Department of Transportation T‐100 Data (excludes preclearance airports).
2011 vs.2010: 25%
Outlook for International Arrivals at top 20 US Airports (2012-2011) Total Inbound International Operations
70
2012 vs.2011: 5%
Operations 2010
60
Operations 2011 Operations 2012
2012 vs.2011: 4% 50
40
2012 vs.2011: 8% 2012 vs.2011: 6% 2012 vs.2011: 15%
30
2012 vs.2011: 26% 20
2012 vs.2011: 20% 10
0
Source: US Department of Transportation (excludes preclearance airports).
2030: Growth of International Passengers ICAO expects global traffic to reach 4.9 billion over the next 20 years (3.5% AAGR)
6,000
E/D Passengers (millions)
5,000
4,000
3,000
2010: 2,500
2,000
1,000
0
Source: International Civil Aviation Organization (ICAO) and International Air Transport Association (IATA).
2030: 4,900
Is the current model sustainable?
Source:Â CBP
Or can we move towards automation more rapidly?
1
Traditional Booth Model
10 Booths
~450 Pax/hour
2
Booths + Trusted Traveler
8 Booths
4 Kiosks
~600 Pax/hour
3
Add Automation
4 6
Booths
Kiosks
10 1200‐ 1740 Automated Gates
Pax/hour!!!
Comparison of Models 2,000 1,800
1,740
Passengers per Hour
1,600 1,400
1,200
1,200 1,000 800 600
600 400
450
200 ‐
10 booths
8 booths 4 kiosks
4 booths 6 kiosks 10 automated gates
Border Evolution: A Summary 1950’s Borders
Banking
What is the target for automation at your airport?
Risks Without Automation • Customer Service – Long lineups for passengers • Border Risk Management – Insufficient officers to meet demand – Inability for CBP to focus on high risk • Airport Operations – No flights or hindrance of flight operations – Bottle neck of flights arriving at the same time • Market Development – Limiter on capacity to meet new international opportunities
But What About Connections? Can there be a better process to risk‐manage checked bags for international arrivals before the next flight?
One Stop is a First Step Only
Baggage Recheck Elimination
Future Possibilities in Facilitation & Risk Management
Image Source: L3 Communications
For More Information
ACRP REPORT
61
BAGGAGE RECHECK ELIMINATION/ REDUCTION
solomon@intervistas.com +1‐202‐709‐4638 +1‐604‐717‐1854