Annual report Quiport 2013

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Forging Leadership Annual Report

2013





Contents Message from the CEO

7

2013 Milestones

9

Key Figures

11

Leadership in Corporate Affairs

13

Leadership in Transition of Operations

33

Leadership in Operational Efficiency

43

Leadership in City Airport Development

67

Leadership in Corporate Responsibility

79

Leadership for the Future

87

Corporaci贸n Quiport S.A clarifies that in the preparation and compilation of this Annual Report, due care and efforts have been carried out to provide updated information. However, Corporaci贸n Quiport S.A. waives the existence of minor inaccuracies that may have resulted during the described collection process. In view of the above, Corporaci贸n Quiport S.A. will not be liable to any interested person, public entity or third party for any loss, inconvenience or damage caused as a result of any inaccuracy or error in the information contained in the following pages.


Annual Report 2013

The End of an Unforgettable Year 2013 was the most important year in the institutional life of Quiport thanks to the inauguration of the Mariscal Sucre International Airport. The company’s main goal during the past year of operation was thoroughly accomplished. These important achievements take on a greater significance since they mark a before and after in the development of the city of Quito and in the country’s domestic and international connectivity. The need to have a new airport located outside urban limits was a long cherished dream of the city, an aspiration that was delayed for decades for various reasons. We are proud to have been part of the group of institutions and individuals that made the realization of that dream possible and we appreciate your trust in us. The commissioning of the new airfield represented a challenge never seen before in the country and rarely seen internationally. The transition of operations from the old to the new airport in just 14 hours represented a major international milestone. It was the highest point in a process of over two years of preparation which gained the recognition of the global aviation industry.

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Annual Report 2013

As of February 20th, a new stage in airport management began. Operational and infrastructure advantages of the new Quito airport led to a growth in passenger traffic, mainly international, and increased volumes of transported cargo.

In the following pages you will find a full account of the work carried out during 2013 in all areas of the company’s operations, the transition from the old airport to the new one, the development of new investment and of course all corporate citizenship measures.

Thanks to the leadership demonstrated on all fronts by Quiport and the airport operator, ADC&HAS Management Ecuador, growth prospects became apparent sooner than expected. The opening of new frequencies and routes for passenger flights and more cargo carriers operating from Quito with larger capacity aircraft marked the course traversed in 2013.

The future will undoubtedly bring new challenges which we are ready to face and overcome. We are optimistic because we have the knowledge and tools to do so. Thanks to the excellent performance demonstrated thus far, Quito and its new airport stand out in the region’s air transport industry in which we are already positioned as one of the leaders.

This rapid growth attracted new investments to the airport in such a manner that, by the end of the year, it now constitutes a real airport-city with a population of more than six thousand and approximately eight million annual users and visitors.

As we present our 2013 Annual Report to the community, we simultaneously renew our commitment to the city, its authorities, and our stakeholders to continue working for the airport development of Quito, remaining faithful to our mission of providing efficient, safe, and quality airport services to our users.

Another positive impact of the airport development was the growing interest shown by the various players in the industry. This was reflected in our continuous participation in forums, debates, and meetings where the airport was used as a positive example in tourism development, good environmental and social management, safety, and public-private partnership, among others.

Andrew O’Brian President and CEO

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February 19 - Opening ceremony of the New Quito International Airport. Closure of the old airport and operational transition. February 20 - Operations begin at the New Quito Mariscal Sucre International Airport. March 1 - The air cargo logistics center - Tabacarcen - begins operations to provide better service for cargo processes. April 25 - Airport VIP lounges are granted the Latin American Quality Institute Award for excellence. June 7 - The inauguration of Tame's nonstop flight from Quito to Buenos Aires. June 8 - KLM implements its sixth weekly flight that connects Quito to Amsterdam. June 18 - The Boeing 747-800F, the world's largest commercial cargo plane, lands for the first time. The flight is operated by Atlas Air. July - The launch of the first edition of Quiport's Nuestro Mundo Air magazine. September 2 - The inauguration of Tame's nonstop flight route from Quito to São Paulo. October - The Passenger Terminal Building expansion process (phase 2a) begins. October 28 - The first nonstop flight from Quito to Iberia via Madrid is carried out thanks to the operational advantages of the new airport. The airline implemented three direct weekly frequencies. October 28 - KLM opens its seventh frequency between Quito and Europe. October - International passenger traffic recorded its highest growth rate of 16% October - The New Quito International Airport was picked as one of twelve finalists for infrastructure projects in Latin America and the Caribbean for the first edition of the IDB’s 360º Infrastructure Awards. November 6 - The Quito Airport Center is inaugurated, providing an ample commercial offering for the airport community. December 3 - Emirates SkyCargo begins operations with a Boeing 777-200F. December 17 - Aeroméxico begins operating for the first time in Ecuador with 7 weekly flights between Quito and Mexico City. December - Phases 3 and 4 of the airport certification process were successfully completed.


2013

Key Figures


200 daily flights on average.

5.5 million

passengers.

153,185.74 m2 of total construction.

6,500

180,000 tons

15,000 passengers

10 international airlines, 4 domestic airlines, 8 cargo airlines.

employees.

per day on average.

2,405 beneficiaries of social responsibility programs.

106

companies and institutions operating at the airport.

of cargo handled.

68,566

aircraft movements.

30 destinations from Quito.


Annual Report 2013

“Having a team of highly trained professionals has been one of the cornerstones for building the great company we have today. This company demonstrates the day to day accomplishments that have been reached in the short time we have been operating in the new facility.” Andrew O’Brian, President and CEO


Leadership in Corporate Affairs


Annual Report 2013

Company Profile Corporación Quiport S.A. is a private corporation controlled by highly experienced enterprises – AECON Concessions, a Division of AECON Construction Group Inc. and Airport Development Corporation, both from Canada; Grupo CCR (Companhia de Concessões Rodoviárias) from Brazil; and Houston Airport System Development Corporation from the United States. Quiport is the concessionaire of the airport services in Quito, which included the operation of the old Mariscal Sucre International Airport, as well as the development, design, financing, construction, operation, administration, and maintenance of the New Quito International Airport (NQIA) which opened on February 20, 2013. The development of this modern, Greenfield airport represents a major investment in Ecuador. The construction of the airport was done by two companies with vast experience in the construction of airports around the world: Aecon Construction Group Inc. (Canada), and Constructora Andrade Gutierrez S.A. (Brazil). The New Quito International Airport was constructed with a guarantee that the terms and conditions of the contract will be completed through the Canadian Commercial Corporation (CCC). The project has the support of the following key international banks: • Overseas Private Investment Corporation (OPIC - USA), • Export-Import Bank of the United States (Exim Bank), • Export Development Canada (EDC), and • Inter-American Development Bank (IDB).

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Annual Report 2013

Both during the construction and now in the operation of the NQIA, Quiport applies the highest international standards to guarantee safe operations and a high level of service. It also applies strict environmental care rulings and good relationships with neighboring communities. In order to work with the highest level of professionalism, Quiport has a strong team of highly qualified employees in different areas who demonstrate their commitment to our company day to day. Quiport operates the airport through the company ADC&HAS Management Ecuador, which is a consortium formed by two major airport operators from Canada and USA which bring a significant wealth of experience in the industry. Additionally, Quiport has the complete support of all board members who contribute to ensuring that the management team has the required resources to develop strategies that reach overall objectives. Our management team is committed to implementing a transparent culture and effective communication among colleagues in order to freely discuss any issues and adopt the best actions for the well-being of the company.

NOV 2009

NOV 2013

Quiport is also committed to working closely with its partners to provide a positive airport experience to passengers and deliver excellence in all our actions.

JUL 2009

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Annual Report 2013

Shareholders

Aecon Group Inc. is the largest, publicly traded construction and infrastructure development company in Canada. Aecon Concessions is the development and infrastructure investment arm of Aecon.

John Beck Chairman and CEO

Steve Nackan President

John Saczkowski VP Finance and Commercial Services

William Pearson

ADC is one of Canada’s most successful airport development and operator companies. It has established itself as a worldwide leader in the area of airport development projects.

Michael Huang President

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Annual Report 2013

Grupo CCR is one of the largest infrastructure concession companies in Latin America. It is responsible for the administration of 3,284 km of roads in Brazil, the operation of Line 4 of the Sao Paulo Subway, metro system in Sao Paulo and Salvador, and passenger transport by vessels in Rio de Janeiro. It also has investments in international airports (Belo Horizonte, Quito, San Jose, and Curacao), and other service companies.

Ricardo Bisordi Business Development VP

Ophir Toledo International Director

Guilherme Motta Division Manager

Paulo Mazzali Director - CCR Spain

HAS DEVELOPMENT CORPORATION

HAS Development Corporation, an affiliate of Houston Airport System, offers consulting and training in all aspects of airport planning, development and operations. HASDC’s services are available to airports and airport consultants worldwide. Gary Lantner President - CEO

Hank Coleman General Counsel

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MISSION To provide efficient, safe and quality airport services in order to offer the best experience to our users, thanks to the work of our employees who contribute to achieve financial, social and environmental sustainability.

VALUES Excellence – We are dedicated to achieving and delivering excellence in all we do by doing things right the first time. Respect – We lead by example acknowledging and respecting our colleagues, partners, and customers. Integrity – We work with total trust, honesty, and transparency. Commitment – We are committed to safety, the environment, the community, our employees, and the success of our shareholders. Team Work – We are dedicated to a collaborative management style focusing on continual improvement, feedback, and empowerment.

VISION

To be the leader in the airport industry of the country and the region, and at the same time, be an engine of social and economic development for Quito and Ecuador.


OUR STRATEGIC GOALS Goal 1: Financial Sustainability Maintain a healthy financial performance achieving the goals established per year, respecting the Concession Contract, and fulfilling our obligations to the Ecuadorian State, Lenders, and Shareholders.

Goal 2: Safe and Efficient Operations Successfully manage the airport services with safe operations, adequate infrastructure, improved processes, efficient asset control, and respect for the environment and communities surrounding the airport.

Goal 3. Excellence in Customer Service Provide a positive experience to our customers offering and promoting the best services, as well as strengthening the relationships with our partners (airlines, operators, government) by constantly communicating to understand their needs.

Goal 4. Efficient and Empowered Employees Develop a positive work environment by implementing activities that motivate employees, contribute to their personal and professional growth, and drive them to improve their productivity.


Annual Report 2013

Changes in Company Leadership New Chief Executive Officer

Special Thanks

On March 15th, Quiport’s shareholders appointed Andrew O’Brian as its General Director and Chief Executive Officer.

The contributions made by Philippe Baril towards the current success of the Mariscal Sucre Airport operation are invaluable. During his tenure, he represented Quiport before the Municipality and the highest national authorities. He spearheaded the final stage of construction of the new Quito Airport until the delivery of the works, inauguration and start of operations.

Our new CEO, of Canadian nationality, is a professional with extensive experience in the management of airports. He has a proven background in promoting growth and efficiency during the construction and transformation of airport projects that have required large capital investments. Andrew O’Brian served as Quiport’s Vice President and Chief Operating Officer since April 2012. In this position he strengthened the construction, finance, commercial, and operations teams in the search of solutions that allowed the timely completion of substantial construction of the new airport. Before his arrival in Quito he worked as Aerodom SIGLO XXI’s Executive Director in the Dominican Republic, where he managed a 30 year concession for the construction, operation, and transfer of six international airports. Under his leadership, Quiport has consolidated the operation of the Mariscal Sucre airport as well as its institutional image, to the point of being recognized as a strategic partner in the planning of the city’s economic and productive development.

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In addition, during his administration the company achieved a strong corporate consolidation and changed its structure allowing it to adapt to the new requirements established in Ecuadorian legal regulations. The leadership shown by Philippe Baril in the regional airport industry allowed him to deservedly obtain the Presidency of the Airports Council International in Latin America and the Caribbean (ACI-LAC), whose headquarters were based in Quito between 2010 and 2013. Hosting the headquarters of ACI-LAC turned the city of Quito into the capital airport of the region and Quiport into a benchmark for the industry. We thank Mr. Baril for his commitment to the company and for helping us achieve the goal of opening a new airport in Quito.


Annual Report 2013

Our team The human talent employed by Quiport has been the cornerstone for success in the transition and the opening of the new Mariscal Sucre International Airport. Each department is comprised of excellent professionals committed one hundred percent to achieve and exceed planned goals. Individual abilities and skills can only be maximized if guided with adequate direction that is able to recognize and enhance the group’s strengths and work on overcoming its weaknesses.

The balance between leadership with a clear idea of the way forward and solid teams capable of mobilizing the company through the planned route have allowed Quiport to consolidate itself as one of the most important companies in the country and as a strategic partner of the Government in the development of air connectivity, tourism and production activities.

Human Resources and Administration (L-R): Pamela Naranjo, Doris Vasco, Patricia Laguna, María del Carmen Torres, Lupe Méndez, and Imelda Sánchez.

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Annual Report 2013

Certification and Safety First row (L-R): Nelson Cárdenas, César Arteaga, and Jorge Bourgeat. Second row (L-R): Marco Moncayo, Joseph Bourgeat, and Roberto Cortés.

Marketing and Communications (L-R): Luis Galárraga, Alisson Larrea and Cristhian Andrade.

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Annual Report 2013

Desarrollo de Negocios First row (L-R): Alexandra Velasteguí, Cristina Swing, Carlos Criado (Chief Commercial Officer), and Wendy González. Second row (L-R): Fausto Naranjo, Gustavo Aguilar, Alex Moreno, and Francisco Castro.

VIP Lounges First row (L-R): Karina Vega, Evelyn Torres, Kathy López, and Lisbeth Villavicencio. Second row (L-R): Roy Kurze, Geovanny Vivanco, Felipe Cisneros, and Francis Ashton.

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Annual Report 2013

Finance and Accounting First row (L-R): Estefanía Bohórquez, Gabriela Aráuz, María José Padilla, Kristian Fallas (Chief Financial Officer), Ligia Aldaz, and Ana Cristina Reinoso. Second row (L-R): Silvana Navas, Walter Villalobos, Francisco Burbano, Jaime Velasco, José Luis Quezada and Verónica Sánchez. Absent: Marco Alvarado.

Enviromental, Health, Safety, and Social Responsability (L-R): Fernando Cáceres, Rosario Calderón, Jaime Pérez, Leonel Valverde, and Alex Proaño.

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Annual Report 2013

Transportation and Courier (L-R): Wilmer Chila, DarĂ­o De la Torre, Marco Fiallos, Juan Pozo, and Edwin Andrade.

Legal Department (L-R): Fernanda Pareja and Galo ChĂĄvez.

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Annual Report 2013

Customer Service First row (L-R): Karina Jijón, Gabriela Haro, Paola Guayasamín, Adriana Martillo, Andrea Araujo, and Luz Intriago. Second row (L-R): Steve Enríquez, Jorge Hidalgo, Fernando Jaramillo, Javier Massón, David Urbina, Josué Suárez, Santiago Herrera, Omar Velasteguí, and Pablo Garcés. Absent: Pablo Ortiz.

Construction and Engineering First row (L-R): Diego Álvarez, Melissa Ortega, Pablo Valdivieso, and Juan Carrillo. Second row (L-R): William González, Jaime Gutiérrez, Edwin Cevallos, Diego Pozo, and Gen Cevallos.

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Annual Report 2013

ADC&HAS Management Ecuador Sandra Reed Serrano Dr. Sandra Reed Serrano has led the legal affairs of our company since 2006, becoming a key player in the search for beneficial solutions for all involved parties, while respecting the current legal framework. Possessing profound knowledge of Corporate Law, Contract Law, and Foreign Investment, Dr. Reed has put all her skills and experience to develop the legal structure that allowed the New Airport project to become a reality. Dr. Reed is a member of the American Bar Association (ABA), which is a professional independent agency for the exchange of information and professional interest in the rule of law in democratic institutions in the Western Hemisphere. The ABA is registered in the Organization of American States (OAS) as a Civil Association, and actively participates in joint programs for professional development and with the Inter-American Commission of Human Rights.

Quiport provides its users with high quality standards and safe airport services. The collaboration of ADC&HAS Management Ecuador, an operator that ensures compliance with national and international standards of aviation, allows the Mariscal Sucre airport to stand out with excellence in the aviation industry within the country and the region. ADC&HAS is composed of two major expert companies in development and operation of airports: Airport Development Corporation (ADC) of Canada and Houston Airport System Development Corporation (HAS-DC) of the United States. The company has operated the Quito airport service since 2002, contributing with vast airport management experience and meeting the demand for high operational quality, maintenance and service established by Quiport. ADC&HAS obtained the ISO 9001-2008 certification, and as such works with globally established standardized procedures that ensure their continuous improvement.

Dr. Reed is a member of the PĂŠrez Bustamante & Ponce Legal Firm. This prestigious law firm is both nationally and internationally recognized which was developed on a family legacy and was evolved to acquire a corporate structure.

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Annual Report 2013

Recognition and Contributions

Airport VIP Lounges Awarded for Excellence The 25th of April was a memorable date for our airport’s VIP lounges which received the international Award for the Ecuadorian Company of the Year 2013. This recognition was presented by the Panamanian Latin American Quality Institute (LAQI) during the sixth edition of Ecuador Quality Summit 2013.

To give this recognition to the Airport’s VIP Lounges several factors were considered such as customer service, innovation, rapid response to constant change, and the resolve to develop. The ability to accept and implement actions that allow us to be a socially responsible company that meets market requirements and respects the principles of sustainable development were also taken into account.

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The Ecuador Quality Summit is the annual business convention that brings together senior executives who share experiences and stories of success. During this convention, conferences are carried out on quality, corporate social responsibility, and marketing, allowing the executives to update their knowledge in a context of continuous change.

“It was a great honor to deliver the 2013 Ecuadorian Company of the Year Award to the Mariscal Sucre International Airport’s VIP Lounges for its business model and competence, as well as its management, which is based on core values that ​​ characterize it.” Dr. Daniel Maximilian Da Costa, Founder & CEO of LAQI.


Annual Report 2013

Corporate Participation The contribution of Quiport in different management areas has strengthened to the point of positioning our company as a leader in key corporate affairs such as corporate social responsibility, public-private partnerships, and tourism promotion. Thus, we have participated in various forums and events that have allowed different audiences enriched from the experience we have accumulated during our institutional life.

the close knit public-private partnership in route development strategy, and Quiport’s important role as the concessionaire in continuous interaction with airlines to implement new route business plans and incentive programs.

“Sharing with the tourism industry the new airport achievements is very important in order build a relationship between the various players in this dynamic industry.” Andrew O’Brian - President and CEO, Quiport.

Participation in the “Tourism Headed to the Future 2013” Workshop Quiport, eager to contribute initiatives to strengthen the dialogue between the public and private sectors for the development and promotion of tourism, sponsored one of the most significant events in the industry during ​​ 2013, the “Tourism Headed to the Future” workshop. The Federation of Ecuadorian Chambers of Tourism, Pichincha’s Provincial Chamber of Tourism, and Quito’s Metropolitan Hotel Association were the organizers of the event that took place in the Ecuadorian capital in July 2013. Among a distinguished panel of speakers, Andrew O’Brian, Quiport’s President and CEO, stood out. Mr. O’Brian presented the outlook for airlines in the region and Ecuador, which are very promising due to the advantages of the new airport’s operational capabilities,

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Annual Report 2013

Aecon and Quiport Promote the New Airport in Canada In November 2013, the Embassy of Ecuador in Canada carried out “Discover Ecuador”, an event to promote tourism by promoting the attractions of our country in terms of culture, crafts, cuisine, and investments. An important aspect of promotion was the city’s new air terminal. Steve Nackan, President of Aecon Concessions, a Quiport shareholder company, spoke about the construction of the new airport, emphasizing Canada’s commitment to this important project and to Ecuador. Andrew O’Brian spoke to the Canadian audience about the airport’s successful operation since its inauguration and how it is contributing to the growth of the city and the country.

Quito Airport Project as a Model of Public-Private Partnership The Municipality of Quito, along with Profitas–a leading consulting agency specializing in strategic political and economic advisory, organized the Public-Private Partnership Forum (PPP) on December 7th, 2013. The objective of this conference was to make public the opportunities offered by the municipal administration for the participation of the private sector in various

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infrastructure and services development projects in the city of Quito. Quiport, represented by its President and CEO, participated in a panel conversation entitled “Financial Structures and PPP Risk Measurement”, where he spoke of the success of the Quito International Airport project. The panel was additionally composed by Ana Maria Correa, director of Profitas, Paul Styler from EC Harris, and Joy Sandoval, of Puntaconsult SA. The financial structuring process and risk allocation, as well as financing, profitability, management model, and economic impact on the city were focal points of the group’s discussion. The new Quito International Airport project was selected as one of the success cases in terms of public-private participation. The concepts and ideas transmitted based on Quiport’s experience were widely discussed by the panel and much appreciated by the audience.


Annual Report 2013

Outstanding Participation in the World Summit on Social Responsibility Quiport participated in the World Summit on Social Responsibility organized by the Municipality of Quito and EKOS Corporation to promote the analysis, reflection, and debate on social responsibility. The Summit’s ultimate goal was to integrate different points of view to create a common vision for the future on the management of social responsibility. During his presentation, Jaime PÊrez, Manager of Quiport’s Environment, Health, Safety, and Social Responsibility Department, talked about the incorporation of social responsibility policies and programs as a core part of the Strategic Business Plan of Quiport. This translates to the policy that no decision is taken within the company without considering the community and environment in addition to business factors.

The successful construction process and start of operations of the new Quito Airport became a benchmark not only for the industry but also in the areas of infrastructure and investments in Ecuador.

The summit, held in Quito on October 23rd and 24th, 2013, brought together experts from around the world to share experiences in innovation, inclusive business, value chain, and consumers that relate to social responsibility. Public and private institutions, in addition to national and non-governmental organizations, as well as academia and civil society entities participated in the event.

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Annual Report 2013

“An orderly and efficient transition process reduced the operational risk inherent in the transfer from the old to the new airport.�

Kristian Fallas, CFO


Leadership

in Transition of Operations


Annual Report 2013

The inaugural flight at the new Quito International Airport was Tame’s EQ 302. -34-


Annual Report 2013

48 Hours that Made History Transition Process For Quiport, the airport transition meant months of preparation and hard work. The logistics of moving an ongoing operation to new facilities was not an easy task; quality and efficiency standards in customer and user care had to be maintained assiduously. The process was completed according to timelines established in the following three main phases: the launch of the new Quito Airport, the logistical relocation, and the closure of the old airport. For all this to work, the Operational Readiness and Airport Transfer (ORAT) scheme, created by the Munich Airport, was employed to assess the process. The ORAT model of planning was key in the success of the transition as it consisted in aligning strategies and operational procedures between all involved parties. Operational tests were conducted to verify the optimal performance of all the equipment and systems of the new terminal. Special operational tests were carried out to ensure that all airport services (cargo, hangars, catering, etc.) were ready for the airport’s opening date. There was an additional period of familiarization for employees and airport personnel to get to know their new workstations and understand the functioning of the systems. The logistical relocation phase consisted in transferring from the old airport to the new facilities the equipment essential for the start of operations. The approach was to achieve an orderly logistics that would ensure the appropriate level of service up until the last flight at the old airport and be up and running for the first flight at the new terminal.

valuable collaboration of local authorities such as the Ministry of Transportation, the Secretariat of Security, the Metropolitan Public Agency of Mobility and Public Works (EPMMOP), the Metropolitan Public Airport Services Company (EPMSA), and neighboring zonal administrations, accomplished a logistic transfer without mishaps and as planned in the preparatory work sessions.

The transition process was performed with a level of professionalism and coordination rarely achieved in the industry, which received widespread international recognition.

The termination of operations and transfer of assets of the former airport of Quito to the Municipality required detailed information and collaboration with the airport’s commercial operators; the premises were vacated in a proper manner and within the planned timetables. The contractual terms and municipal laws that were observed, including issues of environmental remediation where applicable, were an important part of the discussions at interagency work sessions. To perform this ambitious undertaking, a task force comprised between EPMSA and Quiport maintained weekly meetings and supervised the entire project implementation. The transition process was performed with a level of professionalism and coordination rarely achieved in the industry, which received widespread international recognition.

To perform this task, Quiport contracted the logistics services of DHL Global Forwarding, a company that in unison with Munich Airport’s consulting and the

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Annual Report 2013

Closure of the Old Airport The last flight with which the history of the old Mariscal Sucre Airport ended departed at 19:08 on February 19th, 2013 bound for Guayaquil. On its course to the taxiway, the aircraft was sent off with an arch of water released by two rescue and firefighting squad trucks. The Tame Airbus 319 took flight while at the southern end of the airfield hundreds of onlookers gathered at the airport’s perimeter fence to express gratitude and nostalgia in this final farewell. Meanwhile, inside the passenger terminal, Augusto Barrera, Mayor of Quito, accompanied by municipal employees, Quiport and ADC&HAS shareholders and directors, other authorities, media, and special guests witnessed the take-off of the final flight. Once the plane was airborne, the Mayor gave the order to the Control Tower via radio to turn the airport’s runway and taxiway lights off for the last time. A fireworks show began immediately after, located at the eastern side green areas, as a tribute to the 53 years of service of the old airport that, despite its limitations in infrastructure, recorded sustained growth in passenger traffic since 2002 thanks to an efficient administration. With the start of operations of the new airport and the closure of the old one, the city began a historic transformation. This change would strengthen Quito’s development and propel

it into the future to increase its connectivity worldwide in benefit of tourism and air export endeavors. The city underwent 14 hours without domestic or international flights until the beginning of operations of the new Mariscal Sucre International Airport, scheduled for 09:00 on February 20th.

The Airport Changed Locales in 14 Hours More than two years of careful preparation for the airport’s transition process were put to the test in just 14 hours, during which the final movement of equipment was carried out from the old airport to its new home. As such, at 19:00 on Tuesday, February 19th, a convoy of trucks, and trailers departed towards the new facilities carrying ramp equipment, firefighting trucks and other essential equipment required for the old airport’s final operating moments. All this material had to be installed and ready by 09:00 on Wednesday, February 20th for the new airport’s start of operations. In a logistics operation never seen before in Ecuador, 139 transfer movements were carried out during these 14 hours. The punctual initiation of operations of the new airport depended on the success of this critical process. Vehicles, equipment and personnel of the Municipality of Quito, the Police, the ECU 911, the Fire Department, and Army were actively involved in the security operations mounted for the procedure.

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Annual Report 2013

The operation received logistical support from helicopters, motorcycles, patrol cars, mobile monitoring units, roadway teams, and cranes, whose mission was to prevent and resolve any setback in the displacement. That night 31% of all movements were completed (a total of 452), which were conducted over a seven-week period that began on January 1st and formally ended on February 28th. In total, 18,046 packed units belonging to 45 airport companies were transported. Logistics and transport experts, DHL, handled 70% of the operation. Other transportation providers took charge of the remaining 30% under the responsibility of each airport company. DHL coordination was key to avoid any incidents thanks to their high safety standards and the procedures employed. In addition, their work in the loading and unloading organization was crucial, which allowed all the necessary equipment to be ready for the start of operations at the airport. The procedure was carried out flawlessly and was the subject of positive comments from the Munich Airport advisers, who were in charge of the planning and implementation of the entire Transition Plan.

Inauguration Ceremony The opening of the new Mariscal Sucre International Airport was undoubtedly the main event of 2013. The project was not only the most important work of infrastructure built in recent years, but also meant the realization of one of the main aspirations and needs of the city of Quito. In a ceremony held on February 19th, 2013, in the brand-new airport departure hall, over a thousand people convened. The crowd was comprised of national and local authorities, representatives of the diplomatic corps, Quiport shareholders and project lenders, special guests, and media. Rafael Correa, President of Ecuador, inaugurated the airport, whose construction began in January 2006. In his speech, the Mayor of Quito, Augusto Barrera, highlighted the quality of construction and the technical conditions of the airport, which would substantially improve the operational capacity benefiting the city by providing a significant opportunity to develop its connectivity with the world. In turn, the President explained that the new airport provides much higher security conditions and congratulated the thousands of Ecuadorians who worked on the construction of the airfield, which he described as a “mega work� for Quito and Ecuador.

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Annual Report 2013

For Quiport and ADC&HAS, the inauguration of the airport was the most important day in their institutional lives. Amid high expectations and desires, the construction phase was ending and the new challenge of operating the new Mariscal Sucre Airport was about to begin. This phase promised to show the city, country, and the world the excellent characteristics of the airport’s facilities and how it would become a focal point for social and economic development.

The flights that were delayed or canceled on February 19th, end of operations day at the old airport and transfer to the new one, completed their journey and operations normalized. The few recorded delays were due to operational conditions at other airports.

Operations at the new airdrome on its first day had a completely positive balance.

Successful Start of Operations of the New Quito Airport At 09:05 on February 20th, Quito’s new Mariscal Sucre Airport received its first flight. Just as the previous night in the closure of the old airport, two firefighting trucks shot out an arch of water to receive Tame’s Airbus 319, inbound from Guayaquil, thus starting this new and important stage in aviation for the capital of Ecuador. The successful opening was in large part thanks to the excellent work of all companies and institutions that contributed to carry out an unprecedented start of operations in which each of the airport systems worked without a hitch. Airport personnel, from Quiport, ADC&HAS, and all companies and institutions that make up the city’s airport, set as a goal a smooth start of operations. Thanks to their great effort, in addition to excellent coordination, this goal was achieved. During the first day of operations at the new Mariscal Sucre International Airport, 81 aircraft arrived and 58 flights departed. The first flights of each domestic airline (Tame, Aerogal, and LAN Ecuador) were greeted with an arch of water and the first two cargo airlines were received in the same manner. The first airport passengers were given a “Pioneer Passenger” certificate.

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This excellent start of operations at the only “greenfield” airport in Latin America showed a promising future for aviation for the city of Quito, one of the fastest growing destinations in the region.

Early Challenges and Successes The balance of the first month of operations at the Mariscal Sucre International Airport was vastly positive. After monitoring and a careful registration, conclusions that reveal the good functioning of the new infrastructure and airport services became self-evident. Passenger circulation flowed without congestion at critical points in the terminal: airline check-in counters, security checkpoints and migration stations–even for large passenger flights. This fluidity was thanks to airline and government institution personnel engaged in the process. The seven security checkpoints were expedited and avoided delays that could have affected the punctuality of boarding for outbound flights. Migration stations operated outstandingly thanks to the excellent job in processing passenger travel documents by the staff. The airport’s 4,098 meter runway allows optimal operation for all types of aircraft,


Annual Report 2013

including excellent approaches, according to the pilots, and permitted pleasant and safe landings. The cargo terminal has provided a superior service in relation to the old airport, thanks to its observance of international standards. The new facilities have exceeded the expectations of exporters, drastically reducing the cargo loading time compared to the old airport. Among the highlights was the excellent performance of the baggage system, crucial in any airport, and departure lounges that endured the intense passenger flow during peak hours, including those travelers that arrived well in advance due to the lack of accurate knowledge regarding the travel time between the city and the airport.

airport’s location and new navigational aids, it was still possible to maintain operations even in adverse weather conditions.

During the first month of operations, the airport handled 4,862 commercial flights, while through its facilities 329,891 passengers transited and 12,853 tons of cargo were carried.

Despite this good news, there were some initial concerns among passengers and users for which some response measures were carried out in a timely manner. One of the public’s main concerns during the first days of operation was regarding airport restaurants’ offering and pricing. This soon was disproved with a wide range of high quality products and competitive prices. There was also some dissatisfaction about the lack of seating in public areas of the airport; this was immediately solved by placing more seats in the departure and arrival halls. As for closures due to weather conditions, these were normal for the time of year. However, thanks to characteristics of the

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Annual Report 2013

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Annual Report 2013

Environmental Audit of the Old Airport at Closure After closing the old airport, Quiport began the process of delivery of all facilities under its concession and those managed by commercial operators. As of December 2013, over 95% of all facilities had been delivered to the EPMSA. This included the signing of documents by the involved parties, giving a legal framework to the process. The remaining 5% consisted of more complex facilities that had some type of contamination, and therefore required an environmental remediation process.

• Soil samples were compared with prior extracted samples collected in February 2006.

• Dismantling and controlled removal of environmental liabilities identified on the ground during Phase I and soil samples of areas where further analysis for the presence of underground contaminants is needed. The completion of Phase 3 is planned for the first semester of 2014. This includes the remediation and final delivery of the facilities to the Municipality of Quito.

In order to accurately determine the extent of contamination of these sites and also meet all requirements and clauses defined by law, contracts, and other related documents, Quiport developed a detailed plan that is described below: Phase 1. Initial In-site Environmental Assessment done to identify potential liabilities generated above and below ground from the start of the concession. Phase 2: In-site Environmental Assessment designed to identify underground pollution generated after the start of the concession and delimit the vertical and lateral migration of potential contaminants. Phase 3: Removal, disposal, and controlled remediation of environmental liabilities identified above and below ground in the previous phases. All these phases were executed according to strict parameters of international guidelines and Ecuadorian regulations. Phases 1 and 2 were completed during 2013. For Phase 3, the following actions have been completed:

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Annual Report 2013

“The Quito Airport continuously monitors for strict compliance with the standards and operational procedures required by national and international civil aviation agencies, in order to stay in the forefront of the airports in the region.” Myr. Roberto Cortés, Manager of Control and Continuous Monitoring and Security


Leadership

in Operational Efficiency


Ventajas del Nuevo Aeropuerto de Quito A Antiguo Aeropuerto N Nuevo Aeropuerto

Torre de control

Extensión 126

41 A

hectáreas

metros

22 metros

1,500

A

N

hectáreas

N

Estacionamiento Altitud

A N

2,800 msnm 2,400 msnm

A 380 vehículos

1,000 N

vehículos

Longitud de pista

A 3,120 metros N 4,098 metros


x18 A

Estacionamiento para aviones

x46

N

(primera etapa)

Superficie de la terminal de pasajeros

Capacidad de atención anual A 3.6 millones pasajeros

N +5 millones

A

pasajeros

28,700

(primera etapa)

m2

Área de carga

N 38,000 m2

(primera etapa)

15,198 A m

42,000 N m

2

Capacidad de expansión

A

2

Capacidad de carga anual

Ninguna 150,000 A

ton, métricas

249,530 N

ton, métricas

(primera etapa)

Movimiento de aeronaves

N 70-100 hectáreas

8 A

por hora

12 N

por hora

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Annual Report 2013

The need for a new airport for Quito was a dream long awaited by its inhabitants. The old airport, which opened in 1960, did not allow for the development of air operations and became an obstacle that prevented the growth of connectivity in the city. Additionally, the location of the airport in the middle of the city became a risk factor. The opening of the new Mariscal Sucre marked the beginning of a new era for both the city and for Ecuador, since its features have allowed the significant improvement of the operational conditions in comparison to the old airfield.

Technical Information 1. Technical Features Location

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in good conditions. In the near future, it will have three access ways that will allow traffic to flow between the airport and the city.

The airport is located in the Caraburo plateau which has an area of 1,500 ​​ hectares and is surrounded by three ravines that form a natural barrier that will prevent the colonization of its vicinity. Its surroundings have no prominent natural obstacles that can restrict the safe, orderly, and efficient operation of aircraft.

Quito now has a modern airport infrastructure capable of increasing its services in line with market needs. Its location, just outside the city limits, eliminates the risks involved in the operation of an airport in the middle of the city.

The airport is at 20.5 kilometers from the center of the city of Quito, in a straight line, to which it is currently connected by a roadway

The airport was built in the valley of Tababela where the climate is pleasant. The temperature ranges between 6 and 26 degrees Celsius and

Climate


Annual Report 2013

it does not rain frequently, which configures an ideal environment for aircraft operations. Prevailing winds come from the north, therefore most flights land from South to North (Runway 36). During the months of June and August the wind changes direction blowing from south to north. These weather conditions are advantageous, assuring travelers that they will reach their destination without any difficulty. The airport has an average uptime of 98.8%.

2. Physical Characteristics

Platforms At the airport, three big platforms have been built: Passenger, Cargo, and General Aviation. These areas are perfectly separated from each other, allowing each to meet its specific requirements and functions without difficulty. Their main features are: Passengers Platform:

• Spots:

29

• Surface:

Rigid pavement

• Resistance:

57/R/A/W/T *

Elevation The airport’s location is at a significant advantage because its altitude of 2,411 meters above sea level–400m lower than the old airport of Quito–increases the operating efficiency of aircraft that can now take-off with maximum cargo and fuel capacity, avoiding layovers, saving time and additional costs.

Cargo Platform:

Runway

General Aviation Platform:

After extensively studying the performance of aircraft that currently operates worldwide, the necessity of having a 4,098 meter runway was defined. This runway is the longest in Ecuador and South America. The features of the runway are:

• Length:

4,098 m.

• Elevation:

2,411 m.

• Slope:

1%

• Width:

45 m.

• Resistance:

76 F/B/W/T *

It is equipped with a parallel taxiway of the same length and other shorter taxiways that allow quick and agile movement of aircraft and vehicles. For aircraft to leave the runway immediately and maintain the operating capacity of the airport, exit taxiways that connect the runway and taxiway have been constructed.

• Spots:

5

• Surface:

Rigid pavement

• Resistance:

57/R/A/W/T *

• Spots:

8

• Area:

Flexible pavement

• Resistance:

53/F/A/X/T *

*ICAO Pavement Classification Number.

3. Navigation Aids As in few airports in the world, at the Mariscal Sucre Airport visual and electronic aids activated for both runways (18/36) were installed. Visual Aids The Quito Airport has all the visual aids required by the International Civil Aviation Organization (ICAO), such as signs, banners, etc., including the PAPI systems for the two runways.

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Annual Report 2013

As part of the visual aids system, approach lights for Cat. I were installed on runway 36, and a complete lighting system is currently being installed that can be used for Cat. II, whose features can briefly be summarized as follows:

• Side row bars in the first 270 meters of

Approach and Departure Procedures Based on the installed aids, crews have at their disposal a number of approach procedures using only the VOR/DME. ILS/ DME procedures in addition to RNAV that use up to 0.30 RNP are available for pilots, depending on their rating.

the approach lighting system,

• Centerline lights, • Runway end identification lights, • Quick exit guide lights, • Touchdown zone lights and • Stopway zone lights. Electronic aids The crews operating at the Quito airport have the following aids:

• 2 VOR/DME, one installed 7.5 NM North and the other 9.7 NM South.

• 2 ILS/DME, operating in Cat. I with projection in the near future to Cat. II. Its features could allow up to Cat. III approaches.

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As it has been shown, the Quito airport is modern and reliable, and can accommodate the larger commercial and cargo aircraft that are flying today without having any restrictions. It possesses the highest safety margins, which is why new companies have taken the decision to operate to and from Quito.


Annual Report 2013

More Passengers Visit Quito

In 2013, the Mariscal Sucre Airport recorded a total of 5,503,439 passengers (arrival and departure on international and domestic flights). This figure showed an increase of 3.9% in relation to 2012. Similar to previous years, domestic passengers comprised 60.8% of the market while international passengers complete the remaining 39.2%. National and international airlines carried a total of 66,568 aircraft operations, equivalent to a decrease of 1.7% when compared to 2012. As in previous years, August was the month with the greatest number of passengers. In 2013 there were 544,531 domestic and international passengers.

TOTAL PASSENGERS

5,369,911

4,705,876 5,046,911

+7.2%

2009

5,296,280

+6.4%

2010

5,503,439

-1.3%

2011

+3.9%

2012

2013

TOTAL AIRCRAFT OPERATIONS

72,903

73,104

66,568

74,807

In the last four years, the Quito

67,698

airport has experienced an average annual growth of 4.0% in the total number of passengers.

+2.3%

2009

-2.5%

2010

-7.1%

2011

-1.7%

2012

2013

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Annual Report 2013

Domestic Traffic The number of domestic passengers departing and arriving in 2013 was 3,432,664, representing a decrease of 0.6% in comparison to 2012. A total of 386 regular weekly frequencies were carried out, reaching 12 cities in Ecuador. Below are some key statistics:

The average maximum take-off weight for domestic passenger planes in 2013 grew by 8.4% compared to 2012.

• July was the month that recorded the highest passenger traffic on domestic flights (departing and arriving) with a total of 322,448 passengers.

DOMESTIC PASSENGERS

• The daily average of departing passengers on domestic flights during 2013 was 5,201.

3,679,241

3,110,199

• The highest average monthly growth in the

3,354,688

number of domestic passengers (departing and arriving) was 12,843 passengers in the month of July, an increase of 4.1% over the same month of 2012.

+7.8%

3,432,664 3,453,790

+9.6%

-6.1%

-0.6%

• In 2013, total aircraft movements for domestic flights was 40,517, representing a decrease of 4% compared to 2012.

2009

2010

2011

2012

2013

• The month with the most movements in 2013 was May with a total of 3,738 movements.

• The Airbus 320 was the most commonly used aircraft by domestic airlines (42%), followed by the Airbus 319 (26%) and thirdly the Embraer 190 (13%).

DOMESTIC AIRCRAFT OPERATIONS

48,267

49,316 50,561

40,517 42,220

• LAN Ecuador was the domestic airline with the highest load factor in 2013, reaching 69.9%.

• The average load factor for domestic airlines in 2013 was 63.5%.

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+2.5%

2009

-4.5%

2010

-12.5%

2011

-4%

2012

2013


Annual Report 2013

International Traffic With a 12.3% increase in international passengers, both departing and arriving, compared to 2012, Quito shows a significant trend in a regional level as an increasingly attractive destination. A total of 2,070,775 international passengers visited our airport. International carriers traveled to 18 cities in 14 countries with a total of 218 regular flights per week, representing an increase of approximately 5.8% compared to 2012. Cities that were added to the list of destinations were Buenos Aires (Ezeiza), Sao Paulo, and Mexico City. The three main destinations were Bogotá, Lima, and Miami. Some key statistics are presented below:

• August recorded the highest number of passengers (arriving and departing) with a total of 228,781, which represents an increase of 9.1% in relation to August 2012.

• On average, international airlines achieved a load factor of 69%, representing an increase of 3.9% compared to 2012.

• On average, the maximum take-off weight for international passenger flights in 2013 was 92.7 tons, representing an increase of 7.1% compared to 2012.

During the past four years, the average yearly growth in international departing and arriving passengers reached 6.4%

• The average number of daily international departing passengers underwent an increase of 10% in 2013, reaching a total of 3,484 passengers.

INTERNATIONAL PASSENGERS

• The largest positive variation in the number of international passengers (arriving and departing) was recorded in October with an increase of 16% over the same month in 2012.

1,690,670

1,595,677 1,692,223

2,070,775 1,842,490

• International aircraft movements was 20,966, which represents an increase of 5.8% compared to 2012. August was the month with the highest number of movements totaling 1,932, representing an increase of 2.4% compared to the same month in 2012.

+6%

2009

-0.09%

2010

+8.9%

2011

+12.3%

2012

2013

• The most commonly used aircraft by international airlines was the Airbus 319 (33%), followed by the Airbus 320 (24%) and finally the Boeing 757-200 (8%).

• The average maximum takeoff weight for

INTERNATIONAL AIRCRAFT OPERATIONS

18,944

18,733

20,966

18,772

international flights grew by 7% compared to 2012.

19,807

• Delta Airlines had the highest load factor among all international carriers in 2013, with an average of 88.5%. This represents an increase of 3.3% compared to 2012.

+0.2%

2009

+0.9%

2010

+4.5%

2011

+5.8%

2012

2013

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Annual Report 2013

Cargo In 2013 import cargo grew by 6% compared to the total of 2012, reaching 36,796 tons. September was the month that saw the largest growth, with an increase of 2.6% imported tons compared to the same month of 2012. The export market grew by 0.4% compared to the previous year, reaching a total of 133,657 tons. As in previous years, the month with the biggest growth in cargo was December, with an increase of 27.9% in relation to the same month in 2012. In a similar manner, during February the airport reached the record number of more than 11,390 metric tons of flowers that departed from the airport on 224 flights. During the Mother’s Day season 7,720 tons were exported, an increase of 14.8% in relation to 2012 exports.

INTERNATIONAL CARGO EXPORTS (in tons)

136,101

107,654

133,657

122,415

+13.7%

2009

133,104

+11.1%

2010

-2.2%

2011

+0.4%

2012

2013

INTERNATIONAL CARGO IMPORTS (in tons)

33,678

24,676

Other key statistics are listed as follows.

30,445

36,796 34,685

• A total of 5,085 cargo aircraft movements were recorded in 2013.

• February was the month with the highest number of movements, with a total of 498 flights during 2013.

• The most commonly used aircraft for cargo flights in 2013 was the Boeing 767300 (37%), followed by the MD11 (25%) and Boeing 777-200 (12%).

• On average, the maximum takeoff weight for cargo flights in 2013 was 273 tons, representing an increase of 29.4% over 2012.

+23.3%

2009

2010

+2.9%

2011

+6%

2012

2013

CARGO AIRCRAFT MOVEMENTS

5,692

5,055

5,085

5,474

+8.2%

2009

-52-

+10.6%

5,671

+3.9%

2010

-0.3%

2011

-10.3%

2012

2013


Annual Report 2013

New Infrastructure Stimulates Route Development

Four new routes, two new frequencies The suitability of an airport is undoubtedly measured by its ability to improve the connectivity of its destination with the world, attracting the creation of new routes and frequencies, especially with new airlines. Guided by this premise, we instated in 2008 a comprehensive route development strategy aimed at creating open channels of communication with the airlines and presenting the potential of new operations at the Mariscal Sucre Airport.

and a new airline began operations in 2013.

New Routes and Frequencies The characteristics of the new airport allowed a positive outlook in route and frequency growth, however, the good news began to arrive earlier than expected.

Part of this strategy has been the participation in industry forums such as Routes Americas and World Routes. The latter is the main forum where airlines and airports meet to study the development of new routes and frequencies in air transport. Quiport attended the 2013 event held in Las Vegas to meet with 20 airlines and presented 13 case studies of new routes and frequencies to and from Quito.

Just a few months into the operation, on June 7th, 2013, Ecuador’s flagship airline, Tame, opened a nonstop flight to Buenos Aires, Argentina. Despite the existence of a considerable passenger traffic potential between these two capitals, the old airport’s operating restrictions prevented the development of this route.

Quiport’s participation also follows a national strategy to strengthen the tourism and air connectivity of Ecuador with the world, and as such, senior officials of the Ministry of Production, Ministry of Tourism, and the Municipality of Quito also attended.

Just months later, on September 2nd, Tame announced the creation of its direct route to Sao Paulo, the main financial and business center of Brazil, served by three weekly flights. The goal: to promote tourism and business travel to Quito.

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Annual Report 2013

By October 23rd, Iberia, Spain’s national airline, declared historic news for the connectivity between Quito and Europe. The nonstop flight from Quito to Madrid was announced, which would operate three times a week. Until that point, passengers departing from Quito to Madrid had to make a mandatory stop in Guayaquil to refuel the aircraft and complete passenger and cargo capacity before crossing the Atlantic Ocean. This meant extending the trip’s duration by about four hours. Once more, the characteristics of the new airfield allow Iberia to carry out direct flights with full passenger, cargo, and fuel capacity, using the largest aircraft in its fleet, the Airbus 340-600. In regards to frequencies, KLM added in June and October two weekly flights to Amsterdam using a Boeing 777.

Aeroméxico Begins Operations in Ecuador Mexico’s largest airline started operating at the Mariscal Sucre Airport on December 17th with the Quito-Mexico City route, becoming the only airline to offer nonstop flights between the two capitals. Mexico City is the fourth nonstop route destination opened since the new Mariscal Sucre Airport began its operations in February. As such, Quito, through its modern airport, betters its connectivity with the rest of the world. Aeroméxico, with its more than 600 daily flights to over 80 destinations in the United States, Europe, Asia, and Canada, now allows Ecuadorians to reach many more worldwide destinations. Aeroméxico has a fleet of over 115 aircraft and comes to Quito with its modern Boeing 737-700, with a capacity of 124 passengers, including 12 in business class. The new routes and frequencies, coupled with the excellent performance of the existing ones, allowed 2013 to close with very encouraging numbers in terms of passenger traffic at the Quito airport.

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Aeroméxico launched its entry into the Ecuadorian market in a very ambitious way with seven weekly flights.

Greater Efficiency in Handling Air Cargo 2013 was a good year for cargo. A total of 181,861 metric tons were transported through the airport facilities, 1.7% more than in 2012. This figure is even more relevant when it is taken into account that air cargo had registered a decrease in 2012, due to, among other things, inefficient export cargo facilities with which the old airport was equipped. This problem ceased with the new airport, which is equipped, since its inauguration, with a modern export cargo terminal of 12,000 m2 and a total development area of 42,000 m2. This area includes a platform of 9,000 m2 with 8 aircraft parking spaces. The absence of restrictions at the Quito airport has directly benefited the export cargo, which is comprised of flowers by more than 90%.


Annual Report 2013

With the new infrastructure and efficient management of the cargo apron, cargo airlines have been able to optimize their operations by bringing larger capacity aircraft. As such, Atlas Air, for example, started flying to Quito on June 18, 2013 with the Boeing 747800F, the world’s largest commercial cargo aircraft that can hold up to 30 more tons than the next largest freighter. By December 2013 a new cargo airline added its operations to the Mariscal Sucre Airport roster. Emirates SkyCargo, the flagship airline of United Arab Emirates, first came to Quito with objective to transport Ecuadorian flowers to markets in Europe and the Middle East, using a Boeing 777-200F, a wide body aircraft specially designed to transport air cargo.

Atlas Air, a company that uses this aircraft, decided to operate at Mariscal Sucre thanks to the facilities and operational securities it offers, being the only airport in the country that provides the required infrastructure for this type of aircraft. The operational route of Atlas is to Miami and Amsterdam, from where it will connect to different countries in Europe.

Being able to receive large aircraft such as the Boeing 747-800F places the Quito airport at par with other major cargo handling airports in the region.

Another indicator that shows the operational efficiency of the new airport for cargo handling is the maximum takeoff weight, which increased by 29.4% from 2012.

Operational Advantages Allow the Landing of the Boeing 747-800F The B 747-800F, Boeing’s largest wide-body commercial aircraft, can carry 16% more cargo than the Boeing 747-400 model, reaching a grand total of 140 tons. The fuselage length is 76.25 meters and its wingspan is 68.45 meters.

The technical and safety qualities of the Quito Airport now allow the arrival of aircraft such as the 747-800F which gives the Mariscal Sucre a competitive position in the region benefiting the air cargo sector. Receiving the Boeing 747-800F positions the Mariscal Sucre Airport in cargo handling at the same level of other major airports.

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2 9

d

b

j

14

k f i

h

13 8 16

18 4

15

l

e

12 3 5

a

c

10

g

7

The Mariscal Sucre Airport connects Quito with 18 international and 12 domestic destinations.

International Airlines 2013

6 17

International Destinations 2013

BOGOTA

AVIANCA GROUP OTHER LAN GROUP

OTHER

COPA

DELTA KLM

BUENOS AIRES HOUSTON

IBERIA

TAME

AMERICAN

MIAMI

PANAMA

CARACAS ATLANTA

MADRID AMSTERDAM

LIMA


Our Destinations

1

a b c d

11

e f g h i j k l

Domestic Airlines 2013

Cuenca Esmeraldas Santa Rosa Galapagos -Baltra Guayaquil Lago Agrio Loja Manta El Coca San Crist贸bal Tulcan Macas

Amsterdam Atlanta Bogota Caracas Cali Buenos Aires Sao Paulo La Habana Houston Lima Madrid Medellin Mexico Miami Panama San Salvador Santiago de Chile 18 San Jose 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Domestic Destinations 2013

TAME

GYE / GPS

SAEREO OTHER

LAC LAN AVIANCA

LAGO AGRIO

CUENCA

LOJA MANTA

COCA


Annual Report 2013

Highlights in Operational Management The new Mariscal Sucre provides five times as much fuel than the former airport The fuel storage area for aircraft operating at the Mariscal Sucre Airport is a modern facility which has a capacity of 1,306,000 gallons of fuel storage, five times more than the provision capacity of the old Mariscal Sucre (270,000 gallons). The storage system consists of 3 API 650 tanks, with a capacity of 420,000 gallons each, reinforced with a double steel wall. In addition to the API tanks, three 142-UL tanks, with a capacity of 15,000 gallons each, and a last 1,000 gallon tank were installed. This fuel zone is constructed over a giant concrete buffer, that in case of a leak or spill, will contain the fuel avoiding the contamination of the ground and facilitate the cleaning of the spill. The plant meets all environmental and quality requirements imposed by national and international regulations; and also those dictated by Allied Aviation, the commercial operator of the fuel installations at the Quito airport, one of the largest fuel providers for commercial aviation. Allied Aviation is a subsidiary of Allied Aviation Services Inc., the largest U.S. provider of fueling services for the commercial aviation industry. This company operates some of the largest airports in the United States, Canada, the Caribbean, and Latin America. This company was selected to build and operate a fuel storage facility in the new Quito Airport in 2009.

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The approximate fuel storage capacity of the Mariscal Sucre Airport in Quito is 1,306,000 gallons.


Annual Report 2013

Acquisition of New Buses for Internal Transfer of Passengers Remarkable Improvement in Passenger Satisfaction In order to measure the level of satisfaction of our passengers, through ADC&HAS Management Ecuador, Quiport surveys its passengers transiting through the Mariscal Sucre Airport three times per year. In 2013, these studies were performed in March, August, and December. These surveys collect information on processing times at the airline’s passenger check-in counters, security checkpoints, and Immigration and Customs counters. A general survey of passenger satisfaction regarding the various services offered by the airport is also included. As the year passed, the results improved as certain processes were fine-tuned at the new airport. The level of passenger satisfaction achieved in December 2013 increased by 6% compared to the result in August 2013.

Quiport equipped the Mariscal Sucre International Airport with eight new buses, furnished with the latest technology and specially designed for passenger comfort. These vehicles were purchased in Brazil, have a Volvo chassis and now aid in the internal transport of passengers, making the transfer time to and from the terminal more efficient. The buses can accommodate 70 passengers, have low-emission diesel engines, electronically controlled fuel injection, hydromechanic suspension (which lowers the floor for loading and unloading) and, above all, spacious wheelchair areas for people with disabilities. With these specifications, the buses meet the international IATA standards of four people per square meter, which ultimately means convenience and comfort when transporting passengers from the boarding rooms to the remote parking positions for aircraft.

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Annual Report 2013

Increased Safety, More Efficient Operations Quiport’s technical staff carries out constant control and coordination of various activities with the aim to provide the best operating conditions under a guaranteed security framework. A good example of the work done in collaboration with ADC&HAS staff and the Civil Aviation Authority (DGAC), is palpable in the implementation of the visibility and cloud ceiling values consistent with the minimums defined by the agencies that govern air activity in the world, such as the Federal Aviation Administration (FAA) and International Civil Aviation Organization (ICAO). On October 12th, 2012 the following visibility minimums and ceiling values for the operation of aircraft at the soon to be inaugurated airport were published: Takeoffs: 1,500 m visibility and 328 ft (100 m) ceiling Landings: 1,500 m visibility and 290 ft (88.4 m) ceiling After a few months of operations, thanks to the experience gained by crew, air traffic controllers, and all technical staff, on June 2013 landing minimums were reduced to: Landings: 900 m visibility and 290 ft (88.4 m) ceiling According to the evolution of flights and the characteristics of the airspace surrounding the airport, as well as the high-tech navigational aids available at the airport, on November 14th, 2013, the DGAC conducted joint studies with experts from LAN and Quiport. As a result of these studies it was decided to define new minimums:

Fewer Incidents and Accidents Safety parameters, with which the airport was built along with the establishment of proficient rules and procedures, have allowed avoiding aviation accidents during the operation. There have been 14 aviation incidents, most of them due to failures in aircrafts, according to investigations conducted by the Civil Aviation Authority. In order to avoid accidents and incidents the following corrective measures have been implemented:

• Operations personnel have increased monitoring activities.

Takeoffs: 550 m runway visibility, unrestricted ceiling

• Our security agent has reached out to the

Landings: 800 m visibility and 200 ft (60.9 m) ceiling

safety departments of each company to study the action plans relevant for each case.

These minimums permit the total compliance with airline itineraries without any complications, observe the strictest security parameters, and ensure landings and takeoffs in accordance with the timetables set by the airlines.

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• Failure analyses have been implemented to find the causes in each case.

• Communication procedures were developed to mitigate the main causes.


Annual Report 2013

Successful First General Drill Operational safety is a priority with which the Mariscal Sucre International Airport is managed. In order to assess the level of readiness of the staff, their knowledge of procedures and response times for the firefighting and rescue squads, exercises and drills are carried out. On Sunday, September 15th, a general drill was carried out with the support of all the agencies responsible for responding to emergencies at the airport, with the additional collaboration of Tame. The results of the drill were successful. The International Civil Aviation Organization norm states that the maximum response time a fire truck can take from the fire station to the furthest point of the airport should be no more than three minutes. Airport firefighters took less than two minutes to accomplish this during the exercise.

Emergencies at the Quito airport are handled at the Crisis Coordinating Committee (CCC). This bureau is constituted by the Airport Chief of the Airport Aviation Authority, the Airport’s General Director, the CEO and COO of the operator, The Civil Aviation Authority, and EPMSA airport security, representatives of the Municipality, representatives of the airlines involved in the emergency, and the airport’s communications team. The CCC receives information and manages the Mobile Command Post, which is the entity that takes over the management of the emergency, as well as the support and information cells. Drills like this allow ongoing evaluation and continuous improvement of emergency procedures and their implementation by specialized teams at the Mariscal Sucre Airport.

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Annual Report 2013

Occupational Safety Week Between the 2nd and 4th of December, ADC&HAS Management Ecuador organized the Occupational Safety Week. The objective was for airport personnel, who perform airside duties, to get involved and learn about the plans and programs implemented by the airport operator to maintain safety standards, and mitigate the risks and dangers presented during daily operations, as well as precautions to be taken to avoid them. A total of 220 people attended this event where, in addition to practical demonstrations about safety procedures, lectures on the main topics were developed.

Aircraft Rescue and Firefighting The airport has a highly trained technical and logistics team to attend any emergency that may present itself on the premises. The aeronautical firefighters have received approximately 17,260 hours of regular training and have state of the art equipment which includes:

• Six fire trucks: 1 Striker 4500, 1 Oshkosh T-1500, 2 Oshkosh T-12, 1 Rosenbauer 3000, 1 Ford 350. In addition, the team operation facilities include:

• A fire station and maintenance building with a guard room, operational support center, gym, bathrooms, showers, bedrooms, etc.

• One truck remote station in order to meet the ICAO and airport response times.

• Two water supplying facilities, one at the remote station with a capacity of 14,218 liters and one at the Fire Station of 37,854 liters.

• 23 hydrants, airside and landside. • Approximately 300 fire extinguishers.

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Annual Report 2013

Six Birds of Prey Protect Quito Airport‘s Sky Safety can be compromised if there is the presence of wildlife, mainly birds, in the vicinity of the airport. The ICAO recommends the use of different methods of mitigating this risk, among which is the use of deterrent alarms, pyrotechnics, flashing lights, and others. Nonetheless, one of the most effective methods is falconry (hunting with birds of prey), an environmentally friendly method as it is based on the natural reaction of different bird species in the presence of a natural predator. If birds sense the presence of predators, they will avoid passing through the area under their control, in this case, the airport.

The falconers, a term for the trainers, along with six birds and two dogs that complement the team, work 365 days a year in various training exercises and deterrence techniques carried around about 1,500 hectares of the plateau where the capital’s airport is located. These practices have proven quite effective since the presence of birds in the vicinity of the airport has been reduced in a large number since the beginning of the program.

Few airports in the region employ this innovative technique, which is being used at the International Airport of Quito since last December, making it a pioneer in the country in this regard.

Four eagles and two hawks help safeguard safety at the airport.

The technical team in charge of this program took about two months to train the birds, which came from a specialized breeding center in Germany while still just chicks. The birds are not trained to kill but only to scare small mammals and especially other fowl like sparrowhawks, doves, pigeons, sparrows, and owls, species that are attracted by the abundant availability of food and water in nearby agricultural areas of the airport.

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Annual Report 2013

Certification Process was Thoroughly Achieved Quiport has the responsibility to operate, manage, administer, maintain, and provide all services for air operation in the Mariscal Sucre International Airport; ensuring the highest standards of quality and safety. To accomplish this task, it has a technical management trained to certify the airport, perform continuous monitoring, and ensure the safety and security of airport facilities. The objective of the permanent certification and supervision of the aerodrome is to ensure that the facilities, equipment, and operating procedures comply with the Standards and Recommended Practices of the International Civil Aviation Organization (ICAO), as well as the documents issued by the Civil Aviation Authority, and other Ecuadorian government agencies. In October 2012, as soon as the provisional authorization was received to begin operations at the new airport, the process to obtain the final “Aerodrome Certificate� begun. This final certificate is granted once international and national standards and regulations are met, and above all, The Aeronautical Authority verifies that conditions stipulated in the Aerodrome Manual are met.

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The certification process consists of five phases: 1. Pre application for the aerodrome certificate. 2. Formal request by the applying airport. 3. Review of the request, the Aerodrome Manual, and other relevant documentation. 4. Evaluation of the aerodrome facilities and equipment. 5. Aerodrome Certificate bestowal. The third phase is of great importance, in which the Aerodrome Manual that contains procedures to be applied, plans, programs, blueprints and updated details of all airport facilities, and System of Operational Security Management is presented to the Civil Aviation Authority. The Civil Aviation Authority, after thoroughly studying each of the documents submitted, notified Quiport of their approval and authorized to start the fourth phase. In this phase, the inspection of the facilities is carried out in order to verify and ensure their compliance with current regulations.


Annual Report 2013

The diligence of the Aviation Authority allowed Quiport to successfully culminate the fourth phase by late December. On February 20th, 2014, we will receive the Aerodrome Certificate which guarantees and announces to airport users by means of the Aeronautical Information Publication (AIP), that Quito has the only certified airport in Ecuador and one of the few in South America. Quiport, working in coordination with ADC&HAS, maintains continuous vigilance of the compliance of the standards and procedures applied at the airport in order to stay in the forefront of the industry in the region.

Quito’s airport will be the only certified aerodrome in Ecuador and one of the few in the region.

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Annual Report 2013

“Less than a year after starting operations at the New Quito Airport, we have experienced an exceptional increase in connectivity and passengers. We permanently grow in new facilities and services that complement the concept of airportcity, while always being committed to our users.� Carlos Criado, Business Development Director


Leadership

in Airport Development


Annual Report 2013

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Annual Report 2013

From Airport to Airport-City In an increasingly itinerant and connected society, few doubt that airports are a potentially beneficial infrastructure for the economy of entire regions. Their design, dimensions, and business plans are the result of an intelligent evolution in infrastructure and respond to passenger and cargo traffic demands that warrant their existence, becoming true centers of development for a city or region. The successful development of an airport city, nonetheless, depends on intelligent organization and planning. One of the main achievements that the new airport represents is the paradigm shift that previously defined an airport to what is now seen as a real airport-city under constant expansion. This new rationale has been accepted positively by the different actors and airport users who, during 2013, were able to verify that thanks to the new location, facilities, and focus on service, the Quito airport contributes successfully to the development of the city and the country.

Growth in Infrastructure Since the opening of the new facilities, Quiport and its main partners have committed investments of over $80 million dollars in the construction of new additional works and improvements to airport infrastructure in order to always provide the best service to its customers and users. This investment demonstrates their trust in the development of the airport-city.

Tabacarcen Logistics Center Two buildings were constructed at the entry point of the airport premises for import and export cargo consolidation. The first has 3,900 m2 of related services including Customs offices, temporary storage rooms, courier services and offices. The second building of 9,000 m2, where 70%

Approximately $80 million dollars have been committed by Quiport and its main partners for additional works after the opening of the airport.

of its areas are destined for cold storage, where export cargo agencies operate. The total investment in this facility is $23 million dollars. This infrastructure has been designed to complement the airport services and concentrate the consolidation of export cargo, especially flowers, in one building with all the necessary facilities. Thus it was possible to order the chaotic and inefficient consolidation process, allowing flower exporters to deliver their merchandise at a single, centralized point, avoiding having to enter the city and breaking the cold storage process.

Quito Airport Center This building, inaugurated on November 6th, aims to provide a wide range of services to airport users, visitors, and general population which is estimated at more than six thousand people. The building has 18,846 m² of construction, divided into five floors. The areas are defined depending on the type of business and the needs of each user. Hence, companies that offer customer service are located in easily accessible semi-commercial areas, while corporate offices are in more independent and private spaces, with separate access and high safety standards. Three banks are located on the first floor of the building, in addition to a pharmacy, laundry and other basic services for the community. Commercial stores that represent the best and most diverse companies in the Ecuadorian market, EPMSA, and Quiport’s offices are located of the second floor, in addition to access to the offices located on floors four and five.

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Annual Report 2013

General Aviation Terminal On the third floor, the food court with seating for 600 people is complemented by shops and offices. The upper floors are designated for business offices that do not receive high customer traffic and require more privacy for the development of their activities. The total investment in this building, that is managed, promoted, and operated by Quitotelcenter, was $15 million dollars.

New International VIP Lounge This 800 m2 area with a capacity of 160 people is intended to give the waiting passengers the most pleasant of airport experiences. With an investment of $1 million dollars, the International VIP Lounge is where travelers can enjoy a variety of snacks, drinks, bathrooms with hot showers, rest areas, free Wi-Fi, and reading material.

Expansion of the Duty Free Store The store located at international departures underwent an expansion from 230 to 830 m2. This enlargement, which required an investment of $3 million dollars by Grupo Motta, allowed an increase in the supply of products and the presence of well-known brands such as Lacoste, Mont Blanc, Salvatore Ferragamo, Longchamp, Tommy Hilfiger, Columbia, and others.

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The General Aviation terminal receives and dispatches corporate, government and private flights which do not operate from the main passenger terminal, used for commercial flights. It is managed by what is known in the industry as a Fixed Base Operator (FBO), which in the case of the Quito airport is Ecuacentair. The FBO facilities began operating in December 2013. The FBO has all the infrastructure and equipment necessary to provide all services required for both the aircraft and its crews and passengers, in full compliance with Ecuadorian regulations governing airport activity. By establishing a modern lounge with high standards of customer service, the city benefits with the increased volume of flights operating in the capital’s airport. With the growth of commercial activity, more jobs associated with the provision of services are created. An average of 20 weekly flights are operated at the FBO. Adjacent to the FBO is the Chancery’s Protocol lounge, where official flights of the country’s authorities are dispatched and received, as well as those of distinguished visitors from abroad. The state oil company, Petroamazonas, has its terminal here as well where regular flights for its personnel to the Amazonian oil fields are carried out. The total area of the ​​ General Aviation Terminal is 931 m2; the Protocol Room occupies 356 m2, the FBO utilizes 305 m2 and 270 m2 are designated to Petroamazonas.


Annual Report 2013

Car Rental Building An important part of the development of airport infrastructure directly related to passenger services was the construction of an area intended for car rental agencies comprising ​​8,615 m2. Five internationally renowned brands (Budget, Avis, Thrifty, Localiza, and Hertz) have their offices in this building and space for their vehicular fleet. The car rental agencies also have a counter area in the public arrivals hall to provide a complete service for passengers and users.

Hangars The Quito Airport began its operations with a hangar designed for C category aircraft (Boeing 737 or Airbus 320). This 7,897 m2 hangar is currently operated by the Ecuadorian airline, Tame. The operational potential for development of the Mariscal Sucre Airport motivated other airlines and private users to build their own infrastructure for aircraft parking and maintenance. This is how the hangars of Avianca (3,324 m2) and Teojama (939 m2) became operational in February and July 2013 respectively, while the construction of the hangars of LAN (3,234 m2), Corbantrade (1,380 m2), La Favorita (1,380 m2), Banco Pichincha (1,380 m2) and Petroamazonas (2,715 m2) will be completed during the first half of 2014.

the airport has undergone in its first year of operations. It is also a clear sign of Quiport’s ongoing commitment to provide appropriate infrastructure and to constantly improve processes and achieve greater efficiency for the benefit of all operators and airport users. Overall, Phase 2a aims to provide better facilities for boarding domestic passengers, expand the international arrival migration area, and have more flexible space that can be used for national and international flights. The passenger terminal will be expanded by more than 7,000 m2 (passenger handling capacity at peak hour will increase by 51%), and two additional boarding bridges will be added. With this expansion the terminal will have 10 additional gates distributed in two levels, a new food court, a shopping area with varied options and all the amenities needed to make passenger waiting times more comfortable. The expansion also includes three additional aspects:

• The expansion of the apron to allow cargo airlines to operate larger aircraft without impacting the rest of airport operations.

• The enlargement of the international arrivals area by 350 m2.

• The increment of 30% of passenger checkin counters.

More Works Will Be Completed in 2014 Passenger Terminal Expansion Phase 2a Among the projects that benefit travelers, and that are under development, is the expansion of the passenger terminal also known as Phase 2a. This expansion is in response to the significant growth of passenger traffic

The construction of Phase 2a of the Mariscal Sucre Airport was officially launched in October with the definitions of design and construction processes, the removal of topsoil covering the work area, and the movement of ground support equipment to permit construction without affecting the daily operation of the airport, which has been achieved with great success.

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Annual Report 2013

Wyndham Grand Condor Hotel Runway Centerline Lighting In 2014 the Quito Airport will become the country’s first terminal to be equipped with a Runway Centerline Lighting System. Quiport, in its pursuit of constant improvement of airport infrastructure and compliance of its development plan, started the installation of Mariscal Sucre’s runway centerline lighting. This visual aid’s main use is for pilots to see the runway in adverse weather conditions, increasing the airport’s operational capacity. The project consists of the provision of equipment and civil infrastructure required for the system to be integrated seamlessly with the existing facilities: installation of all luminaires, connection, wiring, calibration, testing, and programming. This endeavor is developed in close collaboration with the Civil Aviation Authority. Partial development of both the engineering and construction of civil infrastructure was previously performed and is the basis of the final stage of this project. The investment, of approximately $1 million dollars , will outfit our airport with the necessary equipment to obtain Category II of the Annex 14 regulations, according to Volume I of the International Civil Aviation Organization (ICAO).

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A development area of ​​20,000 m2 was also allocated in the airport-city for the construction of the Wyndham Grand Condor Hotel. The investor of this project is Grupo Pronobis. The infrastructure will have 162 rooms, restaurants, and spacious meeting rooms with all the characteristics of an international hotel chain. The total investment is $17 million dollars.

An Enjoyable Experience for the Passenger One of Quiport’s main objectives, since the construction of new Mariscal Sucre Airport, is to make the passenger travel process a pleasurable and memorable experience. As such, our airport is provisioned with several facilities that provide an excellent level of customer service, combined with a varied commercial offering of superior quality and great prices. To achieve this objective, the approach has been to develop strategic partnerships with experienced and highly capable companies in all areas of airport operation.


Annual Report 2013

Corporación Quiport invests approximately 20 millon dollars in the phase 2a terminal expansion.

• Parking within airport premises without additional transfers.

• Mechanical assistance facilities and contact if an incident occurs.

• 24 hour monitoring room equipped with personnel overseeing the operation and functioning of the parking lot. Thanks to Quiport’s constant management in coordination with Urbapark, the new facilities and improvements in service levels, the parking performance has been positive, showing an increase of approximately 172% in the supply of parking spaces in relation to the old airport’s parking offer, and with an increasing level of customer utilization of the service.

VIP Services

Modern, Safe and Convenient Parking One of these strategic partners is Urbapark, an Ecuadorian company with over 6 years of experience in the market, specializing in consulting, design, and management of public and private parking lots focused on providing high quality service, operational excellence, and customer satisfaction. The Mariscal Sucre Airport parking offers secure and convenient services such as:

• 24-hour operation. • Qualified personnel, 24 hours supervision. • Payment facilities: four ATMs, a cashier in the passenger terminal, and a cashier at the parking exit.

• 24 hour personalized assistance for clients. • Emergency trained staff at the parking lot. • Provision of basic mechanical assistance (dead battery, flat tires, tire change).

• Quick response and timely resolution of incidents reported by users.

The Mariscal Sucre Airport has two VIP Lounges, both national and international, operated directly by Quiport. These lounges provide ample waiting room in comfortable surroundings and are equipped with quality services that offer a variety of foods and beverages, unlimited and complementary WiFi, cable TV, and reading material. Domestic passengers now enjoy a much larger VIP area in comparison to the old airport, since the area was increased to more than 300 m2 and with the same food offering as that provided in the International VIP lounge. The International VIP lounge, with a capacity of 160 occupants, is additionally equipped with hot showers, a business center, and a resting area furnished with beds for its users. The quality offered by these services led the Latin American Quality Institute to recognize this venue in 2013 with the Ecuadorian Company of the Year Award. The Quito Airport additionally offers a Personalized Assistance Service that provides greater comfort and serenity for its passengers, making their journey through the airport more enjoyable. This service offers a helping hand at the beginning or end of the journey where a customer service executive is charged with carrying out the passenger’s airport processes and procedures, while complying with established safety procedures, and thus freeing the passenger to enjoy all the variety and services the installations provide.

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Annual Report 2013

Passengers have positively accepted these complimentary services. The VIP lounges have documented a significant growth in their use, which motivates Quiport in its aim to keep innovating and improving the quality of services.

Mall del Cielo Drives Airport Commercial Offer It is frequently said that airports are no longer mere infrastructure providers but have become places where passengers can relax, have a good time, and shop. This is why modern, dynamic and customer service focused airports have developed an umbrella brand that groups products and services offered at the terminal, so that the passenger feels they are in a veritable shopping center where the latest technology, perfumes and fashion accessories are available at great prices, as well as enjoy an appetizing meal before boarding their flight.

The International VIP lounge received the 2013 Ecuadorian Company of the Year Award granted by the Latin American Quality Institute.

Under the Mall del Cielo brand a passenger can find shops with Ecuadorian chocolate of the highest quality (República del Cacao), export roses (I Love Roses), fine craftsmanship (Galerías Tikuna), jewelry (Toc Gallery), and massage services (Fly Massage). There is also a store of the renowned painter Oswaldo Guayasamín, perhaps Ecuador’s most internationally known artist. There are also stores such as Leonisa, Uomo Venetto,

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Happy Stop, and Ecuador Travel Stores, a convenience store that complements its offering with books and magazines, are also available. As for food and beverages, the airport has very convenient options suitable for the profiles and needs of different users and passengers. The domestic area has an offering of products prepared for rapid consumption at De Volada, and is complemented by Guacamole Grill restaurant. In the international area we offer a wider variety of international food brands such as Johnny Rocket’s, Famous Famiglia, Fly Chicken Fly, and Amazonia Café. In the public area Friday’s, Johnny Rocket’s, and De Volada offer excellent food options. The Duty Free product offering improved significantly at the new airport with the arrival of the prestigious Attenza brand, operated by the Panamanian Grupo Motta. The Duty Free shop, stocked with the best in perfumes, technology, sweets, accessories for men and women, and brand clothing at great prices, is at par with the major international airports in the region. The variety and quality of products offered, the location of each shop that takes into account passenger flow, and each store’s design and personality gives Mall del Cielo an atmosphere conducive to buying a gift, purchasing a forgotten item, or simply treating oneself when traveling. Just as in urban shopping centers, Mall del Cielo’s shops offer promotions and special sales. It is the airport’s responsibility to promote all the stores through various internal and external mechanisms such as: information screens, social media channels, Nuestro Mundo Air Magazine, the airport’s website, etc. In addition to this, the different commercial operators constantly introduce new products based on frequent flyer feedback and of course international market trends.


Annual Report 2013

These strategies have had very positive results with passengers and airport users as sales experienced in 2013 were advantageous and in some cases even exceeded the average performance found in other airports of the region. Quito Airport’s Mall del Cielo holds an equal footing with other airports worldwide where the focus is to turn the commercial area into a profitable one, considering a higher level of service for passengers.

Mall del Cielo provides 41 shops that offer the best and most varied products and services.

The Airport Advertises Big Brands The environment where passengers wait for their flight and airport employees transition during their work day also influences how positive the airport experience can be. Part of this setting is comprised of the advertising that appears in the different facilities of the passenger terminal. Airport advertising is one of the most important forms of outdoor promotion as it generates high quality impact with a strong capacity for segmentation of the target audience given that customers have a medium or high economic profile. The dynamics of advertising are different at the airport than anywhere else because the public’s interest can be captivated at hold rooms, airport halls, gates, baggage claim, parking areas, as well as the exteriors of the main passenger terminal. Thanks to the volume of passenger traffic and users who transit daily through the Quito Airport, advertising in its interior and exterior is an attractive and effective alternative for companies interested in publicizing their products and services in a comfortable and captivating environment, especially because it is a high visibility

area which offers greater exposure and opportunity to capture customer attention through various means. Quiport directly manages this business unit in order to establish a network of integrated advertising media that offers advertisers the opportunity to launch creative campaigns, providing a better service to their customers and prioritizing spaces in a visual pollution free environment. The airport currently has about 180 advertising spaces (billboards, totems, display screens, etc.) strategically placed both indoors and outside the terminal. Since the beginning of operations, over 40 brands have launched long and short-term campaigns with positive results. This business unit continues to strengthen and position itself on the radar of big companies and major advertising agencies.

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Annual Report 2013

Timely and Efficient Communication with Passengers Sharp Increase in Social Media Followers An information and customer service strategy was designed to counteract certain concerns encompassing the start of operations at the new Quito airport facilities. This strategy was based primarily on reporting in an accurate and timely manner the operations, activities, commercial affairs, and live coverage of events occurring at the airport. The management of social media accounts was conducted under the direction of Quiport’s Communications and Marketing department and in coordination with airport operations in order to provide immediate and reliable responses for users on the main topics of interest about the airport. Positive mentions had a growing trend throughout 2013, with a significant decrease in negative comments aimed at the airport’s

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social media accounts. At the end of 2013, the dialogue between users and the airport was no longer confrontational in contrast to the beginning of the year. Another milestone achieved in late 2013, was that almost all trolls and hostile users were neutralized, from 8 cases per month in August to just 1 in December. The voice of the Mariscal Sucre Airport became as influential as the press itself, as journalists and broadcast media replicated airport tweets as official information to all their followers. In conclusion, 2013 was a makeover year because from the start of operations at the new airport a challenge of educating and raising awareness of skeptical passengers was faced. This challenge has come full circle as a new airport image has been established related to top-notch quality, modernity and progress–an image that Quito’s citizens and Ecuador in general want for their airport.

Twitter followers grew 395.56% and Facebook likes increased 82.31% during 2013.


Annual Report 2013

Nuestro Mundo Air Magazine-Our Means of Effective Communication Since July, when the first edition of Nuestro Mundo was published, Quiport has had its own magazine that contributes to the ongoing effort to better serve customers, passengers and collaborators. This initiative came into fruition by working together with the MAS Communication & BTL group. The magazine contains general interest topics such as gastronomy, tourism, fashion, entertainment, sports and technology. Through its pages Quiport has found a new channel for corporate information and airport development in general, so that the reader is aware of the work performed day to day to achieve high quality standards of service for passengers and Mariscal Sucre Airport users. Key locations, including the airport’s National and International VIP Lounges, as well as various strategic points in the city have been implemented as distribution points, permitting Nuestro Mundo to reach the direct target audience: domestic and foreign tourists, executives, and opinion leaders.

associates with unexpected events scheduled to entertain visitors on special occasions. An example of this occurred on April 18th when the National Symphony Orchestra performed a flashmob at the airport’s Departures Hall. More than 20 musicians, in normal attire, performed Maurice Ravel’s “Bolero”. This surprise interpretation immediately sparked the curiosity of airport users while a group of passengers even began to spontaneously dance to this famous composition. On December 5th, as a tribute to commemorate the city’s 479 years of foundation, Quiport organized a celebration. The festivity began at 15:00 at the terminal, when two beautiful Quiteñas began handing canelazos (a local beverage proper of these celebrations) out to passengers, which were soon after surprised when a “banda de pueblo” (local town band) unexpectedly began playing traditional Ecuadorian music passengers and airport visitors joined the celebration and were quite happy.

Passengers and Users Enjoy Surprising Events During their Wait A key part of Quiport’s marketing plan is to turn the airport facilities into a friendly and welcoming place where passengers can enjoy the company of family, friends, or business

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Annual Report 2013

“The programs established for Social Corporate Responsibility aim to achieve two objectives: improve the quality of life of the inhabitants of the area and to take part in environmental conservation.” Jaime Pérez, Environmental, Health, Security, and Social Responsibility Manager


Leadership in Corporate Responsibility


Annual Report 2013

CSR – a key management element In Quiport we understand that Corporate Social Responsibility (CRS) involves all practices of the company, and have therefore incorporated it as a cornerstone of management at all levels and is part of our mission statement, vision, and objectives. Thus, we make an important contribution to the development of the communities surrounding the airport, all the while protecting the ecosystems pertaining to the area of influence of our operation. Environmental care and high standards of social commitment are very important compliance standards for Quiport. Since 2006 we have implemented environmental and social programs to develop our business in a responsible and sustainable manner. Thanks to all CSR initiatives, the Mariscal Sucre Airport is the only airdrome in Latin America and the Caribbean to join the Environmental Committee of the Airports Council International worldwide.

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360º Infrastructure Award Nomination The New Quito International Airport project was selected among the nominees for the IDB’s Private Sector Infrastructure Sustainability distinction, also known as 360º Infrastructure, which aims to identify, evaluate and reward sustainable investments in Latin America and the Caribbean. The nomination recognizes the efforts made in improving the quality of life of local residents encouraging sustainable development, training of neighboring community members, the preservation of natural, cultural, and historical resources, securing safety and improving public health indices by regulating emissions and noise, among others. The New Quito Airport project was chosen as one of the 12 finalists from a total of 60 entries from 18 countries across the continent.


Annual Report 2013

We Care about the Environment

Among our environmental care activities, the following are the most representative:

Regular inspections and monitoring:

Sewage and rainwater treatment:

Inspections are done in many areas such as air, soil, noise, and effluent quality, as well as continuous monitoring of the management of occupational health, environment, industrial, safety, and work compliance of commercial operators.

The Quito Airport has a water treatment plant and collection system that includes storm water control through grease traps, oil water separators, dissipaters, and finally an artificial storage pond. These systems ensure discharged water meets national and international standards of decontamination.

Incentive Scheme: Companies operating in the Mariscal Sucre Airport are publicly recognized for their commitment and effective actions forwarding the practice of environmental, health, safety, and social responsibility. Strategy for reducing nitrogen oxide (NOX): This is an initiative done by Quiport

Biological monitoring on the Caraburo plateau: This monitoring found the existence of 53 species of birds, small and predatory. This monitoring is essential to understand the diversity of the area, the ecology of the species, and their sensitivity which is very important data for the sustainable operation of the airport.

in collaboration with aeronautical commercial operators at the airport in order to preserve air quality and meet the requirements of the airport.

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Annual Report 2013

Social Programs By 2013 the plans and programs were adapted according to the new demands and social dynamics of the area. The following is a summary of the main programs:

Public Consultation and Participation Plan The main objective of the Public Consultation and Participation (PCP) Plan is that stakeholders can receive information from Quiport, as well as submit opinions, complaints, suggestions, etc., ensuring they’re taken into account. The Plan aims to have a two-way communication channel between social actors influenced by the operation of the airport. In 2013 we continued with the implementation of the PCP Plan which includes the surrounding neighborhoods, schools, commercial operators, health centers, shops, Metropolitan District of Quito zonal administrations, parish councils, social organizations, neighborhoods, and other social actors influenced by the construction and operation of the airport. During this period the most important concerns gathered during the presentations were commercial and career opportunities at the new airport. The results obtained in this period were 34 meetings with the participation of 1,191 people.

17,860 people have participated in the PCP Plan since 2006.

Social Investment Plan By developing these programs, Quiport seeks to provide direct assistance to the surrounding

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communities. The company carries out specific and transparent investments which mainly benefit the surrounding community of the airport.

• “David Diego Cachago Cachago” Scholarship Program This program was implemented in 2007, benefiting students from public schools belonging to risk groups: low income, suffering from genetic diseases such as Down syndrome and Hurler syndrome, or from dysfunctional homes. 22 scholarships were initially awarded to students from public schools located around the old Mariscal Sucre Airport. For 2008 scholarships increased to 42 due to the inclusion of students from establishments located near the new airport under the same vulnerability profile. In 2010 the scholarship program beneficiaries increased in number to 63. This is the current amount of scholarships awarded today. During 2013, 16 institutions were benefited by this program. To this day, 421 scholarships have been awarded.


Annual Report 2013

Testimony

“The support that I received was instrumental in my completion of high school... Now I study what had always been my true vocation, Agricultural Sciences at EARTH University in Costa Rica. Through this message I want to greatly thank Quiport for their support.” Andrea Ortega, former Fellow Quiport scholarship recipient

• Formalization of Mariscal Sucre Airport shoe shiners With the closing of the old airport, Quiport offered support to the shoe shiners by formalizing them for their service at the new airport. The group was comprised of 5 shoe shiners who had worked for over 15 years at the old terminal. This process began in 2013 with training seminars focused on organization, customer service, and entrepreneurship. Their workplace was also refurbished, as well as their work equipment. As a social stimulus and to contribute to the group’s formation, the shoe shiners were recommended to Il Top Services, the business responsible for providing footwear care at

the new terminal. The shoe shiners are now part of the company and offer their services, professionally, at the airport. By these means Quiport has ensured formal working conditions for this group of people. Testimony

“I have been wandering the halls of the airport looking for customers who wanted clean footwear since I was 9 years old. Now, thirty years later, I’m part of Il Top Services that hired the shoe shiners who worked in the terminal. We were trained, work schedules were established, and a monthly salary was defined. I’m happy because I feel I’m being taken into account and because I now have the necessary equipment to work better.“ Julio Ruiz, Shoe Shine Operator

• Creation of Community Companies During this past year Quiport included Pepper Gourmet, a local catering company, into the airport labor service area. This venture was generated by women of the Oyambarillo community from the Tababela Parish, who had no defined labor option.

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Annual Report 2013

After training and the logistic support provided by Quiport, the women decided to make themselves known by delivering food to workers at different construction projects at the airport. This company currently delivers an average of 280 lunches per day.

• Reforestation During 2013, 2,500 guarango and cholanes trees were planted; native dry forest species corresponding to the Caraburo plateau. This process is part of the activities of the Environmental Management Plan, as well as an initiative to reforest the buffer zones of the airport project. This activity was held in collaboration with the Municipal Environment Bureau and Quiport.

60,000 people have taken part in Quiport’s CSR programs.

• Other Community Initiatives Disease Prevention Campaign Within the Other Community Initiatives program, and as part of an agreement with the Medical Family Planning and Guidance Center (CEMOPLAF), in July and August of 2013 the First Campaign to Prevent STDs with an emphasis on prevention of Human Papilloma Virus (HPV) was carried out. 139 women from the Tababela, Puembo, Yaruquí, and Quinche parishes participated. The purpose of the campaign was to bring awareness to both men and women about the importance of caring about STDs and especially HPV. As the second part of this campaign, Pap smears were conducted, paid by Quiport, to determine specific treatments for women.

Book Collection Campaign The first Book Collection Campaign was carried out in which Quiport and ADC&HAS personnel participated by voluntarily donating used books in good conditions.

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On November 15th, Andrew O’Brian, Quiport CEO and President, attended the delivery of 500 books collected as part of the campaign. This presentation took place at the Jorge Icaza School in Tababela’s Oyambarillo neighborhood. José Cumbal, director of the School , thanked Quiport and congratulated the initiative. The community enterprise Pepper Gourmet provided catering services for this event.

Implementation of labor data base A new imitative developed this year was the compilation of a database with occupational profiles of people interested in providing labor services in different areas of the airport. Through this database both labor supply and demand at the Mariscal Sucre International Airport is coordinated, especially those received from the nearby populations of Cumbayá, Tumbaco, Puembo, Pifo, Tababela, Yaruquí, Checa, El Quinche, Guayllabamba, and Quito. For the coordination of the labor supply, Quiport has maintained permanent contact with the airport’s commercial operators. During 2013, there have been over 350 job profiles received, from which approximately 65% have been hired.


Annual Report 2013

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Annual Report 2013

“We successfully overcame all stages of design, financing, construction and startup of the new airport. Today, more than ever, we see the future with optimism, as we have a first class infrastructure and a team of highly competent individuals who are committed to excellence.” Andrew O’Brian, President and CEO


Leadership for the Future


Annual Report 2013

2014 - New Challenges and Achievements In 2014, the Mariscal Sucre International Airport will meet its first year of operations at its new facilities. Based on the results obtained in 2013, the second year of operation will bring great challenges and many achievements for Quiport. Our main goal will be to fulfill our mission and vision to make the Quito International Airport a model in the region, both for its safe and efficient operation, and its level of service. For 2014 we have developed a strategic plan to guide our management in an efficient, organized and based manner focused on 4 pillars explained below:

1. Improving Passenger Experience Accustomed to high standards in service quality, passengers travelling through the Mariscal Sucre Airport expect more with regard to the level of service they receive. Our approach is to create a positive experience and achieve a high level of satisfaction with our services and facilities. To achieve this goal we will use technology to expedite our passengers’ travel arrangements. In a joint effort with the airlines, our goal is to implement an option for check-in via mobile devices (smartphones and tablets), increase the number of self-check-in machines and provide more facilities for passengers who check-in online.

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We will additionally optimize the commercial spaces in the terminal to continue providing an appropriate range of products and services to our passengers under the brand name Mall del Cielo. Part of this experience includes maintaining closer contact with passengers and airport users through our social media channels which will provide operational and business information and interesting facts about our services. Our ongoing work with all operators, service providers and airlines will seek to optimize processes and increase the level of service in our effort to continue to offer our passengers the best airport experience.

2. Connectivity and Infrastructure Growth Our primary focus in 2014 will continue to be increasing Quito’s connectivity to even more international destinations. Quiport will reinforce its route development program to retain and attract leading global passenger and cargo operators. We have planned our participation in major industry events that bring together airlines and airports to open new routes. In these


Annual Report 2013

encounters, just as we have done in previous years, we will present business cases based on a thorough analysis of potential markets that we can serve with the airlines. A key component of the strategy will be to continue with the incentive scheme for airlines operating new routes. We will additionally keep a close and productive cooperation with Municipal and Government Authorities in order to jointly promote the city as a destination and position our airport as a leader in the region, recognized not only by the industry, but also by passengers. The work of promoting the city as a first order tourist destination and our strategic focus on route development, are aimed to increase passenger traffic by 2014. We are preparing for this by improving infrastructure for both airlines and passengers through new terminal facilities under construction.

3. Safe and Efficient Operations True to our belief in satisfying the needs and demands of our passengers and airlines, we will continue in 2014 with improvements in airport facilities and services to ensure compliance with IATA B service level standards, as indicated by our concession contract. In addition, our work with the airlines and the Civil Aviation Authority will be strengthened in order to improve flight punctuality.

An important objective will be to successfully complete the airport’s certification process with the Civil Aviation Authority, which will make us the first certified airport in the country and one of the few in the region. To achieve this, our approach will be to maintain compliance with the technical specifications of the airport manual, according to the norms of the Civil Aviation Authority and ICAO, as well as ensuring the correct application of AVSEC procedures in airport facilities.

4. Social and Environmental Responsibility All our 2014 managerial activities will continue to be based on our Corporate Social Responsibility criteria. The company constantly looks for ways to help care for the environment and to maintain its role as a major factor in improving the conditions of the communities in the areas in which we conduct our operations. The growth that we aim to achieve will maintain harmony with the environmental and social aspects. We will continue with the implementation of social programs to promote growth in economic, cultural, and health aspects of the airport’s neighboring communities. Additionally, we will continue to monitor the environmental impacts of our operations in order to ensure the good management standards we have imposed.

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