Building New Capacity: Meeting Future International Growth

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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


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