Annual Report 2016

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2016

Annual Re p o r t

B u i l d i n g Tr u s t

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CONTENTS 1. Message from the CEO

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2. 2016 Milestones

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3. 2016 in Numbers

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4. Building Corporate Trust

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5. Building Trust in Connectivity

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6. Building Trust in Safety, Security and Operational Efficiency

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7. Building Trust in Our Services

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8. Building Trust Through Corporate Social Responsibility

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CORPORACIÓN QUIPORT S.A. (QUIPORT) CORPORACIÓN QUIPORT S.A. (QUIPORT) clarifies that we have applied due care and effort to provide updated information in the preparation and compilation of this Annual Report. However, CORPORACIÓN QUIPORT S.A. concedes that minor inaccuracies may have resulted during the described collection process. In view of the above, CORPORACIÓN 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.


We Build Trust through Our Commitment and Professionalism For Corporación Quiport, 2016 was a year full of challenges concerning the Quito International Mariscal Sucre Airport. The challenge was to find practical and concrete solutions to the difficulties caused by reduction in passenger traffic, resulting from the region’s and the country’s economic situation.

Andrew O‘Brian President and CEO CORPORACIÓN QUIPORT S.A.

The basis of our strategy was the ability to capitalize on the trust we have generated among various stakeholders around the airport project and to generate new growth and new development opportunities for our operation. Prior to analyzing the operating and commercial aspects of our management, I believe that it is appropriate to mention the important role that Corporación Quiport and the Quito airport played in responding to the emergency caused by the April 16th earthquake, which seriously affected the provinces of Manabí and Esmeraldas on the central-north coast of Ecuador. During weeks, Mariscal Sucre airport became the main collection and distribution center for all the humanitarian aid destined to the thousands of people affected by the earthquake. This was a process that demanded a much more meticulous level of operational coordination. Far from limiting ourselves to this coordination, Quiport also sought other ways to help the affected population. Along with our employees and collaborators, we joined the campaigns, promoted by various state bodies, to collect donations. One of the services that was paralyzed by the earthquake was precisely air connectivity, due to a fallen control tower and the affectation of the passenger terminal structure at the Manta airport –the main city in Manabí– which was seriously damaged. Through our coordinated work with the Civil Aviation Directorate of Ecuador (DGAC by its Spanish initials), Quiport implemented a provisional passenger terminal in Manta to restore connectivity and facilitate the recovery of the areas affected by the natural disaster. At Quiport, we are committed to the country and we always aim to be a part of the solution to its problems.

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As we begin a review of our main achievements in 2016, it is essential that we highlight an important change in our route-development strategy. When the airport operation began in February 2013, the strategy was geared towards capturing the backlogged market that had not yet been served due to the old airport’s limitations. Because of that, we achieved considerable growth in terms of non-stop destinations and airlines. Once we completed this route-development stage, we took on a second stage of harnessing new market segments and using off-peak terminal service hours, with a focus on low-cost airlines as a market-stimulating factor. Perhaps the highlight as to connectivity in 2016 was the successful launch of JetBlue’s operations. It is one of the most innovative airlines based on its management model and passenger service. JetBlue began to fly the route between Fort Lauderdale and Quito with seven weekly frequencies, providing significant seat capacity to tourists who wish to travel to Ecuador and ensuring a significant offer of connections to Ecuadorian travelers in the United States. Towards the middle of the year, LATAM established a daily flight to Buenos Aires with a layover in Lima. In December, Wingo, a low cost airline belonging to the Copa Holdings group, began to operate three weekly frequencies between Bogota and Quito. As to cargo, in 2016 we were able to maintain a stable growth in cargo volumes by implementing a strategy focused on capturing new cargo airlines traveling to the main destinations of flower exports. This task was facilitated by the airport’s excellent infrastructure, which has 45 thousand square meters exclusively to cargo activities. Passenger experience is a constant concern for those of us who comprise Quiport. Our passengers demonstrate their trust in us and we seek to continuously strengthen this trust by improving the quality and variety of our services.

international arrival services: immigration, baggage claim, and customs. This is compounded by substantial work performed on landscaping and art, with water fountains, gardens, and the installment of a mural painting by renowned Ecuadorian artist Jorge Perugachy. One of the year’s most important challenges was the arrival of a large number of visitors in Quito due to the United Nations Conference on Housing and Sustainable Urban Development, Habitat III. Over ten thousand people from all around the world arrived in our city for this event. The airport once again presented itself as the best point of entry to the country, developing a special operating plan and protocol that was accurately and efficiently carried out. Habitat III was also an excellent platform to demonstrate Quiport’s Corporate Social Responsibility work. We participated in the Sustainability Fair organized by the Municipality of Quito as a Habitat III side event. At Quiport’s stand, we presented our Social Responsibility programs and projects and explained how they further the United Nations’ 17 sustainable development goals. Furthermore, we participated in a series of lectures and conferences, giving a presentation on the carbon footprint of the Quito International Mariscal Sucre Airport. At this event, we discussed our efforts to reduce the airport’s emission of greenhouse gases. For us, 2006 was a year in which, despite difficulties, we achieved significant progress in all management areas due to the trust built by the company. This trust is strengthened each day because our work is guided by a strong faith in the potential and future of this country. Throughout the following pages of this 2016 Annual Report, we wish to share with you the results of our passionate work to cooperate in building a country that improves each day. We also wish to communicate our strong belief that better days lie ahead.

In 2016, we focused our work on four key service areas: gaining space through infrastructure upgrades, improving commercial offer with new retail shops of prestigious brands, providing greater services to our passengers, and strengthening the airport’s sense of belonging to the city of Quito and the country. As a result, the airport now has more space and more efficient processes in each of the

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February

Third Anniversary of Mariscal Sucre Airport.

March

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Relocation and renovation of the Attenza Duty Free retail store at international arrivals.

May

February

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March

Skytrax recognizes Mariscal Sucre Airport as the Best Regional Airport in South America. It also awards its four star rating due to the airport’s high quality standards.

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A cooperation agreement is signed between ECASA (Empresa Cubana de Aeropuertos y Servicios Aeronáuticos) and Corporación Quiport.

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JetBlue begins its operations with flights between Quito and Fort Lauderdale.

May

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Opening of Diageo retail store, an international brand specializing in the sale of liquor at airports.

March

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Mariscal Sucre Airport achieves second place for the second consecutive year in Latin America and the Caribbean at the Airport Service Quality Awards, granted by the Airport Council International.

April

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The VIP lounges at the Quito airport receive the Latin American Quality Institute award as Ecuadorian Company of the Year.

September

2016

MILESTONES We have performed a series of projects to expand spaces and improve our infrastructure throughout the year. We improved an area of 273,500 m2 in order to enhance our service standards for the benefit of our passengers.

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Airport Council International recognizes Quiport for its participation in APEX, the main global airport safety program.

October

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Mariscal Sucre Airport receives the Progressive Inclusive Seal from the Secretariat of Inclusion of the Municipality of Quito for accessibility for disabled persons


July

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July

Mariscal Sucre Airport is designated as a Leading South American Airport for the third consecutive year at the 2016 World Travel Awards.

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Official inauguration of the Wyndham Quito Airport Hotel.

September September

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LATAM Airlines Ecuador has an inaugural flight to Buenos Aires.

September

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Samsung opens a retail store offering a variety of electronic products.

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The airport performs a general emergency drill.

October

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Quiport launches a new corporate image.

October

October

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Opening of Wifi to Go, a store that offers internet and mobile phone solutions to passengers.

October

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Over ten thousand people arrive in Quito to participate in Habitat III. The airport successfully runs a special operating plan.

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The Adidas store begins operations at the international pre-boarding area. Bijoux Terner, a prestigious jewelry and accessories brand, inaugurates its retail store at international departures.

November

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Quiport is granted the First Vice-Presidency of ACI-LAC.

December

December

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Wingo begins operating flights between Quito and Bogota.

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Quiport celebrates Christmas with over 800 people from the communities around the airport.

Smartphone Solutions inaugurates its telephone booths and Internet services. Renovation of the República del Cacao kiosk at the international pre-boarding area.

November

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The Quito airport celebrates its 20 millionth passenger. We reached this figure three years and nine months after the airport’s opening.

December

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Qatar Cargo lands at Mariscal Sucre Airport for the first time.

December

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Empresa Pública Metropolitana de Gestión de Destino Turístico grants Quiport a recognition for its efforts to develop the tourism industry in the Metropolitan District of Quito.


2016

IN NUMBERS

151

4.9

million passengers.

13 316

passengers per day, on average.

daily ights, on average.

7 500

employees in the airport city.

172 266 m²

of total

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55 122 aircraft movements.

191 601 tons of cargo.


24 257

112

companies and institutions operating at the airport.

49 500 twitter followers.

corporate responsability programs beneficiaries.

1 101 028 website visits.

22 179 facebook likers.

QUITO

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destinations from Quito.

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passenger airlines.

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cargo airlines. Building trust

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Building Corporate Trust Building trust

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Company Profile

Corporate Consolidation Corporación Quiport S.A. is a private corporation comprising a consortium of international companies: Companhia de Concessões Rodoviárias (CCR) from Brazil, Odinsa from Colombia, and Houston Airport System Development Corporation (HAS DC) from the United States as a technical advisor. The group of shareholders represents a broad base combining know-how and experience in air transportation in Latin America. They also contribute their common capacities, developed during their operation of nine airports that handle more than 100 million passengers and approximately 1.1 million tons of cargo per year. Quiport is the concessionaire of Quito’s airport service. This includes development, design, financing, construction, operation, administration, and maintenance of the new Quito Mariscal Sucre International Airport located Tababela, near Quito. The initial consortium that built the new Quito International Airport included Aecon Concessions – a division of AECON Construction Group Inc. – and Airport Development Corporation (ADC), both from Canada, in addition to Andrade Gutierrez Concessões from Brazil and HAS DC from the United States. In 2012, Andrade Gutierrez transferred its stake in the consortium to CCR, and on December 10, 2015, Aecon Concessions and ADC transferred their shareholding packages to Odinsa.

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The shareholding group operates nine airports that handle more than one million passengers and approximately 1.1 million tons of cargo per year.


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A Culture of Excellence Corporación Quiport operates the Quito International Airport in accordance with the standards of the International Civil Aviation Organization (ICAO) and the Civil Aviation Directorate of Ecuador (DGAC by its Spanish initials). We apply the industry’s best practices which has made Quiport attain wide recognition by passengers and air transportation organizations alike. Quiport understands that responsible operation includes adequate environmental management as well as cooperation with the communities living in the vicinity of the airport.

We have established a culture of improvement since the beginning of our operation. We aim to reach better customer service and operational efficiency standards and to constantly improve connectivity and safety for both airlines and passengers. Moreover, we add value to our role as strategic partners of the Ecuadorian State. Regarding our operations, Quiport receives the support of ADC&HAS Management Ecuador (ADC&HAS), a company that specializes in airport operations and maintains current aviation standards and high levels of efficiency.

Transparency and Communication The company’s objectives are the result of a horizontal approach where all levels of the organization participate, always in accordance with management’s guidelines and advice. Corporación Quiport’s comprehensive administration is supported by the Board of Shareholders. They provide indispensable conditions, resources and confidence to the company’s management for proper planning, design, and performance. The organization’s culture has consolidated our processes based on transparency, on decisionmaking, and on constant communication with all corporate management participants, listening to various approaches and obtaining a high degree of commitment from everyone involved.

Corporación Quiport has established a work model that encourages permanent cooperation with employees and workers as the most adequate means for managerial excellence, allowing us to provide efficient, safe and high quality airport services and the best experience to our users, as evidenced in our corporate mission statement. The soundness of our entrepreneurial structure and the professionalism of our human resources in support of management have become the core of a growing airport city that looks towards the future as one of the main development motors in Quito and in Ecuador. This is also due to constant investments made by Quiport and by the other companies.

Strategic Partners in the New Airport Project The construction of the new Quito International Airport was secured with the guarantee of the Canadian Commercial Corporation (CCC) which verified that all terms and conditions of the contract were respected. The project is supported by the following international banks that financed the construction:

Overseas Private Investment Corporation (OPIC - USA) Export-Import Bank of the United States (Exim Bank) Export Development Canada (EDC) Banco Interamericano de Desarrollo (BID)

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Shareholders

Grupo CCR is one of the largest infrastructure concession companies in Latin America. It is responsible for the administration of 3,259 km of roads in Brazil, the operation of Line 4-Yellow of the Sao Paulo Subway, the subway system in Salvador and Lauro de Freitas, 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 Managing Director Head of Airports

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Renato Vale President

Paulo Mazzali Division Manager


Odinsa is a subsidiary of Grupo Argos. Its core business is structuring, promoting, managing, and developing infrastructure projects focusing on roads and airports. The human and technical quality of its team, its responsible practices, its high corporate governance standards, and its commitment to sustainability has allowed this company to develop a competitive advantage and hence position itself as one of the most important companies in the infrastructure sector in Colombia as well as in Latin America.

Mauricio Ossa

Pablo Arroyave

Eduardo BettĂ­n

President

Vice President Legal and Institutional Affairs

Vice President Finance

Gustavo OrdoĂąez

Carlos Alzate

Vice President of Road Concessions

Vice President of Human Resources and Management

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Shareholders

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

Ramón Miró President and CEO

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Gary Lantner

Hank Coleman

Strategic Advisor

General Counsel

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MISSION

To provide eďŹƒcent, 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.

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

VALUES

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VISION

Excellence

Respect

We are dedicated to achieving and delivering excellence in everything we do.

We lead by example, acknowledging and respecting our colleagues, partners, and customers.

Integrity

Commitment

Team Work

We work with total trust, honesty, and transparency.

We are committed to safety, the environment, the community, our employees, and the success of our Shareholders

We are dedicated to a collaborative management style focusing on continuous improvement, feedback, and empowerment.

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STRATEGIC GOALS

Financial Sustainability Continuing with healthy economic development, achieving annual objectives, complying with the Concession Contract, and respecting our obligations to the Municipality, our shareholders, and lenders.

Safe and Efficient Operations Successfully manage the airport’s services and the operation through secure procedures, appropriate infrastructure, efficient processes, and compliance with the international ICAO rules and domestic regulations.

Efficient and Empowered Employees Develop a positive work environment by implementing activities that motivate our employees, contribute to their personal and professional growth, and encourage them to improve their productivity, adding value to the organization.

Social Corporate Responsability Conduct our airport’s activities within a sustainable framework that respects and protects the environment, and, at the same time, contributes to the socio-economic development of our neighboring communities.

Excellence in Customer Service Offer a positive experience to our passengers, strengthen our relationships with our interest groups, and position Quiport and the Quito Airport’s brands in a positive manner.

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Our People Are the Basis of Our Highly Efficient Management Quiport’s human resources are the foundations on which Quito International Airport’s correct management is built. All of our employees are responsible for placing our airport among the most prestigious ones in the region, allowing the company to become a top-level airport administrator and operator. Motivation and commitment, along with sound professional training, are key factors for the achievement of company’s objectives and success.

Therefore, they are highly valued and promoted by management. We achieve appropriate coherence among all departments and workers thanks to a comprehensive strategic vision shared by everyone in the company’s management. Their search for excellence has allowed the company to channel every individual effort towards a common objective.

Finance and Accounting First row (L.-R.): Edith Cachago, Ligia Aldaz, Gabriela Aráuz, Francis Segovia (Chief Financial Officer), Silvana Navas, Pamela Naranjo, Ana Cristina Reinoso and Cristina Swing. Second row (L.-R.): María José Padilla, Juan Carlos Zurita, Salomé Flores, Iván Rodríguez, Jaime Velasco, Jorge Carlosama, Willman Colcha and José Luis Quezada.

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Marketing, Communications and Corporate Affairs (L.-R.): Luis GalĂĄrraga, Jessica Mata, Alisson Larrea, Krupskaya Coello and Cristhian Andrade.

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

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Business Development First row (L.-R.): Francisco Castro, Katherine Gallegos, Carlos Criado (Business Development Director), Estefanía Pérez and David Díaz. Second row (L.-R.): Gustavo Aguilar, Fausto Naranjo, Alex Moreno and Steve Enríquez.

Absent: Marisol Izquierdo.

VIP Services First row (L.-R.): Paola Guayasamín, Karina Vega, Karen Cabrera, Andrea Araujo, Jessica Valencia, Karina Jijón, Sandra Calderón, Cristina Cortés, Gabriela Haro, Andrea Anda, Gissela Jaramillo and Evelyn Torres. Second row (L.-R.): David Urbina, Pablo Ortiz, Roy Kurze, Xavier Pineda, David Maza, Bryan Flores, Stephanie

Oleas, Kathy López, Santiago Herrera, Omar Velasteguí, Josué Suárez, Felipe Cisneros, Geovanny Vivanco and Alberto Benavides.

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Environmental, Health, Safety and Social Responsibility (L.-R.): Alex Proaño, Leonel Valverde, Alberto Díaz, Jaime Pérez, Fernando Cáceres, Rosario Calderón and Jorge Moposita.

Legal Department (L.-R.): Adriana Pimentel, Fernanda Pareja, Andrés Abad and Juliet Szabo.

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Construction and Engineering First row (L.-R.): Daniel León, Cristina García, Leonardo Maia (Infrastructure and Engineering Director), Patricia Silva and Karen Flores. Second row (L.-R.): Gen Cevallos, Francisco Rendón, Edwin Cevallos, Diego Pozo and Diego Álvarez.

Human Talent and Administration (L.-R.): Fernando Jaramillo, Doris Vasco , María del Carmen Torres, Patricia Laguna, Lupe Méndez,

Alcira Enríquez and Imelda Sánchez.

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

Absent: Joseph Bourgeat.

Concession Management Diego Cuesta.

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Key Collaborators

Dr. Sandra Reed Serrano The legal structure on which the entire Quito International Airport project is based requires legal assistance with a broad knowledge of Ecuadorian and international legislation in force, including corporate law, contracts, and foreign investment matters. Since 2006 Corporación Quiport has entrusted its legal requirements to Dr. Sandra Reed Serrano who has always been a key player in obtaining solutions that benefit all parties involved within the current legal framework. Dr. Reed contributed all her ability and experience to develop a legal structure that allowed the new airport project to become a reality. She is a partner of Perez Bustamante & Ponce, a prestigious law firm recognized in Ecuador and

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worldwide, which started as a family firm and has grown to have a corporate structure. Dr. Reed belongs to the Inter-American Lawyers Federation (“FIA” by its Spanish initials), an independent professional forum that exchanges professional information and opinions on the rule of law in Western democratic institutions. FIA is registered with the Organization of American States as a civilian association, and actively participates in joint professional training programs as well as in the Inter-American Human Rights Court and the Human Rights Commission.


(L.-R.): Santiago Andrade, Mario Núñez, Jorge Páez, Mariela Paredes, Allan Padilla and Yves

Gautier (CEO & General Director).

ADC & HAS Management Ecuador Corporación Quiport entrusts the operation of Mariscal Sucre Airport to ADC&HAS Management Ecuador, a company with broad experience in airport operations which comprises the same group of investors as those of Corporación Quiport: CCR from Brazil and Odinsa from Colombia. ADC&HAS has operated airport services in Quito since 2002 and has contributed with its experience and professionalism to achieve standards of the

highest operating quality, timely maintenance, and excellence in the services Quiport provides. The ISO 9001-2008 certification that ADC&HAS attained guarantees that the company will operate according to universally accepted standardized procedures and ensures its constant improvement. Furthermore, the company‘s successful history is evidenced in its airport investments, development and operation.

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In the Top Places Among Airport Elites in the Region Corporación Quiport’s administration of the Mariscal Sucre International Airport has resulted in airport services that have quickly reached the highest levels of prestige among its users and in the air transportation industry. This is recognized by major organizations that measure and assess the performance of airports in the region and in the world, such as Airports Council International, Skytrax, and World Travel Awards, in addition to other entities covering several areas of the airport industry. In 2016 the Quito airport received several awards placing it in an outstanding position among airports of the region by ratifying its high operational quality and safety standards, as well as the permanent philosophy of improvement that Quiport follows in its operation.

2016 Second Place in Latin America and the Caribbean Airport Service Quality (ASQ) Award– Airports Council International ASQ is the main program in worldwide comparative evaluation of airport passenger services in which nearly 300 airports from more than 80 countries participate. The program was created by Airports Council International, an organization that regulates and represents 1861 airports in 177 countries.

Best Regional Airport in South America, and Four Stars for Service Quality World Airport Awards / World Airport Rating Skytrax Skytrax’s World Airport Awards are the most prestigious awards in the airport industry. Passengers who vote during the largest annual customer satisfaction survey bestow these awards. They are a measure of airport excellence worldwide. World Airport Rating is a program developed by Skytrax that rates international airport quality. Ratings are determined through direct and professional quality standards analyses.

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Leading Airport in South America World Travel Awards The World Travel Awards were established in 1993 in order to recognize, award a prize and celebrate the excellence of all key sectors of the travel, tourism, and hotel industries. Currently, the World Travel Awards are recognized as a mark of excellence in the industry, and are considered the “Oscars of Tourism”.

Progressive and Inclusive Seal Social Inclusion Secretariat of the Quito Municipality The Progressive and Inclusive Seal is an incentive awarded to public and private entities for implementing inclusive management systems as part of their social responsibility policies. The Quito Airport obtained this recognition for providing accessibility for disabled persons with quality and efficency.

APEX (Airport Excellence in Safety) Airports Council International This award recognizes Quiport for its successful participation in the APEX (Airport Excellence) program that promotes continuous improvement in operational safety in airports throughout the world.

Recognition to Efforts Aimed at the Development of the Tourist Industry in the Metropolitan District of Quito Metropolitan Company for Tourist Destination Management – “Quito Turismo” Certificate delivered by the Tourism Office of the Municipality of the Metropolitan District of Quito celebrating Quiport´s considerable support for the development of the tourist industry in the Metropolitan District of Quito as well as for our permanent interest in maintaining tourism services with the highest standards of quality in 2016.

Latin American Quality Institute Latin American Quality Institute This award was given for a third time to the VIP lounges of the Quito International Airport because of the quality of their services.

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Sound Participation in the Industry First Vice President of Airports Council International for Latin America and the Caribbean The General Assembly of Airports Council International for Latin America and the Caribbean (ACI-LAC) designated new Board members for a two-year term of office. Corporación Quiport, through its President and CEO Andrew O’Brian, was designated First Vice President of this organization representing the airports of the region. The election took place during the 25th ACI-LAC Annual Assembly and Exhibition in Brasilia, Brazil. Because that organization represents the interests of more than 260 airports in 37 countries of Latin American and the Caribbean, this designation confirms Quito’s and its airport’s leading position in the region. Mr. O’Brian adds this designation to his role as councilor for the ACI World Governing Board and his membership of the Board of Directors of the International Association of Airport Executives (IAAE).

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Those positions have allowed him to attend several meetings where he has shared Ecuador’s and the region’s outlook regarding several industry-related issues. The many aspects of the operation of Mariscal Sucre Airport have made our experts highly valued in the region’s airport sector. Since May 2016 and for a two-year period, Allan Padilla, ADC&HAS Operations Manager, has been Chairman of the ACI-LAC Safety Committee, and Jaime Perez, Environment, Safety, Occupational Health and Social Responsibility Manager, presides over the Environmental Committee. The chairmen of regional committees are members of the international committees. Furthermore, Carlos Criado, Quiport Director of Business Development, is a member of the ACI-LAC Economic Committee, which he has previously chaired.


Airport Safety Conference Along with the American Association of Airport Executives (AAAE) and the International Association of Airport Executives (IAAE), Corporación Quiport organized an important seminar on airport security and airport operations at Swissôtel in Quito, from April 10 to April 14, 2016. The seminar allowed 22 Quiport and ADC&HAS technicians and specialists to be trained in important industry-related subjects.

airports also participated and expressed their satisfaction with this training. This is the first of many other training sessions that will be held under an agreement between Corporación Quiport and AAAE/IAAE. The participants received accreditation as Certified Airport Employees. With more than 65 years’ experience, AAEE/IAAE is the largest supplier of training courses for airport employees.

DGAC and Galapagos Airport personnel, as well as representatives of Canadian and Costa Rican

Cooperation Agreement with Cuba On May 18 Corporación Quiport and Empresa Cubana de Aeropuertos y Servicios Aeroportuarios (”ECASA” by its Spanish initials) signed a memorandum of understanding in order to share information, knowledge, and experience on airport management. This will aid mutual improvement and development.

The areas of cooperation cover practically all airport management aspects and include issues such as security, operations, maintenance, business development, route development, infrastructure, information systems, customer service, environment, and energy efficiency.

This cooperation agreement is based on the excellent relations existing between the Quito airport and Cuba’s 22 airports operated by ECASA forged during their participation in ACI-LAC.

Cooperation Agreement with CIFAL Quito Corporación Quiport entered into an institutional cooperation agreement with Quito International Training Center for Authorities and Leaders (“CIFAL” by its Spanish initials) in order to promote and strengthen academic-cultural and service projects. Luis Gallegos, former Ecuadorian Ambassador to the United States, and Craig Lesser, Chairman of CIFAL-Atlanta Board, attended the signing of the agreement as honorary witnesses. CIFAL seeks to provide a wide range of learning opportunities and to facilitate knowledge exchange among Latin American public officials and leaders. Similarly, CIFAL aims to improve technical competence and administrative knowledge on local development issues. Therefore, Corporación Quiport identified a positive opportunity in joining a worldrenowned organization such as CIFAL to establish an annual training and education program addressed to technicians of various aeronautical areas in the region.

Quiport’s precise management, which guarantees safe and efficient operations in the Quito airport, has allowed it to become an example within the airport industry.

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Sharing Experiences In a world that is increasingly integrated, the need to share knowledge, experiences and challenges is paramount. Successful management of a public-private alliance and the construction and operation of a Greenfield airport – which is currently a symbol of efficiency and safety– are important components of the leadership formula in air transportation demonstrated by Corporación Quiport. Those characteristics have caused the industry to positively value Quiport’s contribution in several forums and conferences. Mr. Andrew O’Brian, President and CEO, was invited to participate as panel member and lecturer in important events which are summarized below:

Conferences 2016 Smarts Conference - Leaders Forum “The new Quito International Airport, a catalyst to economic and social development in Quito, Ecuador.”

Canada, June 2016.

AAAE Unconference CEO’s panel: “Building Better Airports.”

Canada, August 2016.

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ACI World Conference CEO’s panel: “Creating Sense of Place at your Airport.”

Canada, September 2016.

AAAE – North America and Central Europe Airport Issues Conference "Opportunities and Challenges of Airlines and Airports in the United States and Central Europe".

Malta, October 2016.

Global Airport Development Conference “Airport Projects and Property in Central and South America.”

Portugal, November 2016.

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Three Years Connecting Quito and Ecuador with the World Mariscal Sucre International Airport celebrated its third anniversary with important achievements strengthening our vocation to serve all users and passengers and, of course, the city of Quito. CorporaciĂłn Quiport works in three areas with the goal of constantly improving operating standards: greater connectivity, increased safety and better services. During its first three years, the company has achieved substantial progress in every indicator of its operations, without neglecting its commitment

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to the community and the environment. It has thus become a regional leader in the airport industry. The Quito airport reached its third anniversary with great news such as the inauguration of the Wyndham Quito Airport Hotel, JetBlue operations – a low cost U.S. airline – along the Quito-Fort Lauderdale route, and improvements in the passenger terminal building to provide greater comfort and efficiency.


Celebrating Our Passenger No. 20,000,000 Twenty million passengers have visited Mariscal Sucre Airport since it began operating on February 20, 2013. Maria Fernanda Lucano, passenger No. 20,000,000, arrived on November 23. She lives in Quito and arrived here after a trip through South America. Upon her arrival she was welcomed amidst a festive atmosphere and had a party organized in her honor. Corporación Quiport granted her VIP lounges and fast track service memberships.

Maria Fernanda Lucano was surprised when she learned that she was the twenty millionth passenger. “I am pleased to see how the Quito airport continues to grow and improve” she said, thanking Quiport for always thinking about the comfort of its passengers and users.

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We Present a New Image to the World New Airport Web Site A revamped web site has been available since May 16 for the Quito International Airport where travelers – besides finding information about operational activities like flight conditions and weekly schedules – can access all the services offered by the country’s main airport. In addition to providing efficient information about flights, the new web site is passenger-oriented. Users will be able to inquire about services such as shops, restaurants, duty free stores, and information on airport procedures. One of the main website developments is the inclusion of virtual visits inside the Airport, allowing passengers to acquaint themselves with the airport

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before their flight. It doesn’t matter whether it is a national or international flight, the passenger can make a virtual visit through public halls and departure lounges. With this new web site, we aim to modernize aesthetics and functionality, including responsive design parameters, and optimize visual resources for all desktop and mobile devices.


Renewing Our Corporate Image Renewal is essential in maintaining the company’s image. Therefore we created a new corporate logo reflecting the dynamism of airport activities and constant innovation. A logo is the most important communication tool in the trademark image of any product or any company. In Quiport’s case, the logo includes two main elements: The trade name designed with modern typography especially adapted to highlight certain characters such as the letter “Q”, and the isotype, i.e., the icon, which is the graphic representation of an airplane taking off.

The colors implemented are shades of blue, which transmit the company’s values: excellence, respect, commitment, integrity, and teamwork. Moreover the new image represents our commitment to constant improvement in connectivity, service, and safety.

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The Quito Airport Was the Main Logistic Center after the April 16 Earthquake The 7.8 degree earthquake that hit the center-north coastal region of Ecuador on April 16 2016 and resulted in hundreds of deaths, thousands of wounded, and substantial economic losses (especially in ManabĂ­ and Esmeraldas provinces) triggered the Ecuadorian spirit of solidarity. The whole country rose to the occasion and sent all kinds of donations. Much of that help was channeled through Mariscal Sucre Airport in more than 150 flights with 454,580 kilos of humanitarian aid to the cities of Manta and Esmeraldas. Furthermore, 21 special flights arrived at the Quito airport from several parts of the world with 1,079,945 kilos of international donations. Special coordination was required to receive and dispatch those flights without hindering regular airport operations.

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Additionally, Quiport and ADC&HAS employees participated as volunteers and organized the donations by loading them into the airplanes. They also contributed with their own donations. A warehouse was prepared to collect 15,725 kilos of food supplies, water, mattresses, clothes and first-aid implements including donations by the companies that operate inside the airport. Quiport also donated 2,200 gallons of bottled water channeled to the areas hit by the earthquake through the Reina de Quito Foundation. Quiport, of course, was also concerned about the families of some of our employees that were affected by the earthquake and offered immediate help to improve their situation.


We Contributed to Restore Air Connectivity in Manta We wished to take one step further and we asked ourselves how we could help during those difficult moments. So we undertook the rehabilitation of regular air operations at the Manta airport, which had been suspended because the passenger terminal and control tower were seriously damaged by the earthquake. After an initial evaluation, and with the approval of the Ecuadorian Civil Aviation Directorate’s (DGAC by its initials in Spanish), Quiport installed an emergency passenger terminal in less than three days. A team comprising nine Quiport and ADC&HAS airport engineers and technicians traveled to Manta to ready the facilities in just one weekend. We brought power generation and communications systems to the site with the support of the National Telecommunications Corporation. Then the company put up the tents to house the terminal. We installed the same equipment that had been used in the damaged terminal, which was fortunately intact. Once it was ready, the emergency terminal was delivered to DGAC on Sunday, April 24, so it could operate immediately. Therefore, regular flights to Manta resumed on Monday, April 25.

departures, passenger check-in, security screening, departure lounge and baggage delivery area. In addition, Quiport sponsored a race called “Quito is running for you”, an event intended to collect funds for the victims, which was organized by a private initiative and supported by the Municipality.

Quiport and Mariscal Sucre Airport demonstrated their commitment to the country after the earthquake that hit the center-north coastal region of Ecuador.

The emergency terminal is located on a platform close to the building damaged by the earthquake. It includes a basic infrastructure for passengers’ arrivals and

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The Airport is a Protagonist in the Media Mariscal Sucre Airport is one of the city’s and the country’s major infrastructures. Therefore, all issues relating to its management are of public interest. The media always find the Airport a source of relevant news and have become our allies in reporting on the main milestones of our operation.

1

To accomplish this, Quiport’s relations with journalists and the media are based on transparency and respect. We maintain a pro-active communication approach with them to position Corporación Quiport’s image as a highly efficient, responsible, properly governed, innovative, and financially healthy company with ample technical know-how.

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1. Tababela Inaugurates Luxury Hotel 2. Summer Essentials: VIP Lounges 3. The Airport is Highly Resistant to Seismic Activity 4. JetBlue Joins the Airline Market between Ecuador and U.S.A. 5. Recognition 6. We have Exceeded Projections by 35% 7. The Quito Airport Performed Improvements for Habitat 8. Due to Habitat, the Mariscal Sucre Airport Enhanced Itself 9. Airport Security Event at Tababela 10. Gears Tailored to Size 11. The Airport Holds a Refuge for Predatory Birds 12. New Airs 13. M.A.C. Store at the Quito Airport 14. The Airport— the Small Producer’s Partner 15. Two Airlines Increase Supply in the Country

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Photo Aviation Enthusiasts Visited the Quito Airport On Saturday, August 6, 29 photo aviation enthusiasts visited Mariscal Sucre International Airport and enjoyed a clear morning and afternoon to take impressive photographs with a great view of the Cotopaxi volcano.

Corporación Quiport supported the participants at all times, always guaranteeing the Airport’s operational safety. A photo gallery of the participants is shown below

Ecuador Aviation Photography organized this event. This visit was one of several that have taken place during these last few years at the Quito International Airport.

2016 Jessica Mata

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2016 Jessica Mata


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Building Trust in Connectivity Building trust

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Strategic Approach to Air Traffic Decline The economic crisis that hit the region and the country in 2016 caused passenger traffic in Ecuador to experience a general decline, and Mariscal Sucre Airport was not an exception. In 2016 a total of 4,873,760 passengers passed through the airport, representing a 9.4% decrease versus 2015. Domestic passenger traffic was reduced for the fifth consecutive year and reached 2,738,414 persons– a 9.3% reduction compared to 2015. A sustained contraction in the local air transportation market began in 2012 after a decree from the national government eliminating the aviation fuel subsidy. Added to this were the drop in oil prices and the resulting reduction of the Gross Domestic Product (-1.5% in 2016 according to Central Bank of Ecuador figures), which worsened the reduction. Consequently the number of aircraft movements was also reduced by 8.1%. Meanwhile, 2016 was the first year international traffic decreased (-9.4%). That year international passengers numbered 2,135,346. The same as in the domestic segment, aircraft movements decreased by 8.4%.

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In order to face such decreases in passenger traffic, Corporación Quiport directed its route development strategy –initially oriented to include Quito’s natural markets that could not be exploited due to the old airport’s limitations– towards opening new market segments and taking advantage of non-peak hours in the terminal, with results that may become evident in following years. Despite these problems 2016 was a year when important progress was achieved in connectivity from the Quito International Airport, particularly because of the beginning of JetBlue operations in the Quito-Fort Lauderdale route with one daily flight, starting in February. Moreover, in 2016 LATAM began non-stop daily flights to Buenos Aires, and Wingo –a low cost airline that belongs to the Copa group– began to fly three times a week to Bogota. Below are the most relevant figures relating to passenger operations in the Quito International Airport in 2016:


PASSENGERS TOTAL

4,873,760 passengers

DOMESTIC

2012

2013

2014

2015

-9.4%

4,873,760

5,376,544

-3.5%

2013

2014

2016

2015

-9.3%

2,738,414

-8.4%

3,019,137

2012

-2.0%

3,297,326

2016

-2.6%

3,363,999

2,357,407 2015

-9.4%

3,453,790

2014

3.5%

2,135,346

2013

2,276,693

2,057,107

1,842,490 2012

10.7%

2.8%

DOMESTIC

INTERNATIONAL

11.6%

5,574,019

INTERNATIONAL

2.4%

5,421,106

44% 5,296,280

56%

2016

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AIRCRAFT OPERATIONS TOTAL *

-5.4%

55,122

63,188

67,801

-7.8%

59,786

-5.1%

66,572

-1.8%

AIRBUS 319 Most used aircraft

Internacional and Domestic 2016

INTERNATIONAL *

-4%

19,577

2013

2014

2015

2016

42,221

21,370

-8.4%

21,488

2012

-0.5%

2.5%

20,972

19,909

5.3 %

DOMESTIC *

2012

-9.8%

2013

2014

* Military and other non commercial operations are not included.

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-9.5%

-8.1%

30,409

2015

33,075

2014

36,566

2013

40,517

2012

2015

2016


KEY STATISTICS - PASSENGERS INDICATORS

INTERNATIONAL

DOMESTIC

Month with the highest number of passengers

August 221,478

July 252,064

Daily average departing passengers

2,945

3,751

Month with the highest number of aircraft movements

January 1,807

March 2,706

Average load factor

72%

69%

89.6%

75.4%

Monthly average highest maximum take off weight (tons)

86,307

90,293

Destinations

18

13

Weekly frequencies

204

317

Airline with the highest load factor

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8 14

9

10 13 d

k

2 17

c

6

16

f

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i

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The Mariscal Sucre Airport connects Quito with 18 international and 13 domestic destinations.

Domestic Airlines

Domestic Destinations Galapagos 22% Cuenca 10%

Latam 33.2% Tame 47.6%

Guayaquil 41%

Esmeraldas 2.5%

Manta 7% Lago Agrio 3% Loja 4%

Avianca 16.6% PetroAmazonas 2.6% 58

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Salinas 0.3%

Coca 7%

Santa Rosa 2.5%


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Our Destinations

12

a. Cuenca

1. Amsterdam

b. El Coca

2. Aruba

c. Esmeraldas d. Galapagos Baltra

3. Atlanta 4. Bogota 5. Buenos Aires

e. Guayaquil

6. Caracas

f. Lago Agrio

7. Dallas

g. Loja

8. Fort Lauderdale 9. Houston

h. Macas

10. Havana

i. Manta

11. Lima

j. Salinas

12. Madrid

k. San Cristobal

13. Mexico City

l. Santa Rosa

14. Miami

m. Tena

15. New York 16. Panama City 17. San Salvador 18. Sao Paulo

International Airlines

International Destinations

Latam 11% American 13% Copa 19%

Miami 14%

Iberia 6%

Tame 6%

Delta 5%

InselAir 0.3% Wingo 0.1%

Atlanta 5% Amsterdam 5%

Avianca 20%

Jetblue Vivacolombia 4% 2.7%

Panama City 17%

Lima 11% Madrid 6%

KLM 5% United 5%

AeromĂŠxico 3.5%

Bogota 20%

Mexico City Dallas 3%

2%

Buenos Aires New York Havana 4% Aruba Sao Paulo

Houston 5%

Fort Lauderdale 4% San Salvador 2%

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Great Performance in Export Cargo The growth of air cargo traffic at the Quito airport remains stable, allowing it to be regarded as one of the major air cargo terminals in the Latin American and Caribbean region. Two factors are conclusively responsible for air cargo development in Quito: on the one hand, the floriculture sector which has been able to maintain competitiveness despite financial difficulties, and on the other hand, the airport’s appropriate cargo infrastructure offering an area of 45,000 square meters used exclusively for that purpose. This area includes terminals, cold storage rooms, warehouses, and aprons. The aforementioned conditions are complemented with a strategy to attract cargo airlines serving the major Ecuadorian flower distribution and consumption markets. Thanks to this strategy, 12 international air cargo companies operated in 2016 carrying 154,634.58 metric tons of cargo to the world. That figure represents a 2.2% growth compared to airborne exports in 2015. The month with the largest increase was April, showing an additional 11.7% with respect to the tonnage exported in 2015.

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Operational efficiency at the Quito airport has resulted in aircraft being able to carry greater tonnage. Thus although cargo volume was larger and more cargo aircraft operated in 2016, aircraft movements decreased by 4% with 5,136 movements. Approximately 33% of cargo flights were operated by Boeing 767-300 aircraft; making this the most frequently aircraft used in 2016. The country’s economic policy, geared towards import reduction to protect the local productive sector and to prevent the outflow of capitals, was reflected on a 6.1% decrease of imports arriving by air at the Mariscal Sucre Airport in 2016, reaching 28,129.13 metric tons. As a general balance, the handling of incoming and outgoing air cargo –both domestic and international– showed good results, as the airport mobilized 191,601 metric tons of cargo in 2016. The most relevant figures regarding cargo operations at the Quito airport are shown below:


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CARGO TOTAL

191,601

tons of cargo

80% 15% 5%

EXPORTS IMPORTS DOMESTIC CARGO

EXPORTS

IMPORTS

(in metric tons)

(in metric tons)

62

2.2%

1%

-13.8%

-6.7%

-2%

150,283

151,302

154,635

34,685

29,896

30,759

30,143

28,129

2.9%

132,614

13.3%

133,104

-0.4%

2012

2013

2014

2015

2016

2012

2013

2014

2015

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CARGO AIRCRAFT OPERATIONS TOTAL

4%

1%

5,083

5,134

5,341

5,136

-4%

5,671

-10.4%

2012

2013

2014

2015

2016

BOEING 767-300 Most used cargo aircraft

KEY STATISTICS - CARGO Month with the highest growth in cargo

June 11.7%

(compared to June 2015)

April

Month with the highest number of aircraft movements

489 flights

Monthly average tons in cargo flights

59,095

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Route Development 2016

FEBRUARY • JetBlue inaugurated its operations in Ecuador with seven weekly frequencies in the Quito-Fort Lauderdale route. • A Korean Air Cargo flight arrived in Ecuador for the first time. •Air Bridge Cargo began to operate with charter flights to Russia.

MAY • Emirates Sky Cargo began to operate with its third weekly frequency.

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AUGUST • Atlas Air began its fourth weekly cargo frequency.

NOVEMBER • Latam opened the Quito-Buenos Aires route with one daily flight.

DECEMBER • Wingo began to operate the Quito-Bogota route with three weekly frequencies. • Qatar Cargo landed in Quito for the first time.

• Islands Charter Company inaugurated its Quito-Galapagos route.

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Airlines that operate in Quito

PASSENGERS

CARGO

REGULAR

REGULAR

CHARTER

CHARTER

Islands Charter Company

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Building Trust in Safety, Security and Operational Efficiency Building trust

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We Continue to Maintain Our High Standards of Operational Efficiency Continuous Monitoring Phase Once the Civil Aviation Authority granted the Aerodrome Certification on February 17, 2014; Corporación Quiport, the Directorate of Inspection and Aeronautical Certification (DICA by its Spanish initials), and the Directorate of Security and Aeronautical Prevention (DSPA by its Spanish initials) implemented the Continuous Monitoring Phase. This phase entails continuous supervision of safety at Mariscal Sucre International Airport, performed through evaluations, orientation sessions, and quality assurance inspections of the facilities, equipment, services, and procedures. The Continuous Monitoring phase constitutes a fundamental aspect to insure that Quiport maintains the aerodrome safety levels achieved during the certification process, in compliance with the Aerodrome Manual. For three consecutive years, Quiport has undergone numerous inspections to verify the operating condition of its runways, taxiways, aprons, visual aids, signage, and lighting, among other things. The

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aerodrome’s operational procedures, wild life management, maintenance, and training of all technical staff were also verified. Its Airport Emergency Plan and Airport Security Program were reviewed and analyzed as well. During 2016, the Civil Aviation Authority carried out four inspections of the Aircraft Rescue and Fire Fighting services. They were all satisfactory. It is worth highlighting that, for the first time, we carried out a vertical rescue drill at the aerodrome’s north ravine. DICA and DSPA inspectors congratulated Quiport for conducting this drill. The Aerodrome Certificate guarantees its users that the operational procedures are being carried out with safety, security, regularity, and efficiency, in strict compliance with the technical regulations of the country’s Civil Aviation Authority and the standards of the International Civil Aviation Organization (ICAO) applicable to an aerodrome with a 4E reference code.


Aerodrome Manual The Aerodrome Manual includes all pertinent information on the aerodrome site, facilities, services, equipment, operating procedures, organization and management, including a safety management system. It is the most important document for the Continuous Monitoring phase. From the beginning of the Continuous Monitoring phase, we have amended the Aerodrome Manual six times, due to additions of visual aids for navigation, implementation of low visibility procedures, commercial and cargo apron redesign, the Airport Emergency Plan and the Airport Security Program. In 2016 because of substantial changes in technical civil aviation regulations applicable to the

aerodrome certification, design, and operation, we determined the need to issue a new edition of the Aerodrome Manual. Corporaciรณn Quiport worked along with the Directorate of Inspection and Aeronautical Certification and held periodic meetings with their technical staff specializing in aerodromes to revise its technical specifications and suggest projects that could be incorporated into the Aerodrome Manual. Alongside this, the airport held 29 technical meetings with staff from operations, maintenance, aircraft rescue and fire fighting services, construction, environmental issues, and the safety management system to verify their compliance with the regulatory framework in force at the airport.

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Operational Capacity of the Airport In 2016, the airport was operational for 99.7% of the year. The airport’s geographic location, the airfield’s physical characteristics, its facilities, its navigation aids, visual aids for navigation, and standard operating procedures for take-offs and landings,

along with low visibility procedures (LVP), aeronautical studies, installation of complementary approach lighting, and reduction of meteorological minimums have led to a gradual increase in the airport’s operating capacity since its opening in 2013.

Aviation Security (AVSEC) Mariscal Sucre International Airport has state of the art equipment for passenger screening and hold baggage screening, which operates with certifications from the Transportation Security Administration (TSA) and the European Civil Aviation Conference (ECAC).

entity, who were in turn responsible for disseminating this knowledge to all the staff at their institutions. •

In coordination with the aeronautical authority and Empresa Pública Metropolitana de Servicios Aeroportuarios [Municipality Airport Services], we supported a TSA team of inspectors during their scheduled visit to passenger and cargo airlines at Mariscal Sucre International Airport from the 12th to the 18th of June 2016.

Corporación Quiport’s head of Airport Security participated in an ICAO workshop on the Civil Aviation Security Program (AVSEC) in Mexico City on October 2016. This workshop is essential to developing and updating the Airport Security Program.

Passengers and staff who access the airport’s restricted and sterile areas are subject to the security staff’s meticulous inspection carried out pursuant to the Airport Security Program procedures, which were approved by the Directorate of Security and Aeronautical Prevention. In 2016, we carried out activities designed to strengthen AVSEC security work. •

Induction into the Airport Security Program (PSA, for its initials in Spanish) for airline managers and commercial operators, as well as those responsible for AVSEC matters in each

System Availability The ability to manage all airport processes efficiently depends largely on the availability of systems to manage each process. We have been able to reach a high level of availability with tasks to

AVAILABILITY OF CRITICAL SYSTEMS - 2016

Peak Hours: 99.938%

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Non-peak hours: 99.704%

monitor proper system functioning and supply, along with the application of preventive maintenance.

AVAILABILITY OF NON-CRITICAL SYSTEMS - 2016

Peak Hours: 99.963%

Non-peak hours: 99.964%


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Guaranteed Safety Runway Safety Team During 2016, two meetings were held with the complete Runway Safety Team (RST) and we created working groups to perform hazard identification, and risk management procedures, report matrices and methods for the RST team’s operation. The RST members signed terms of reference and a confidentiality agreement. These are essential tools to implement the RST. Furthermore each committee member representing each of the airline companies was appointed. We also included the signatures of representatives from the Civil Aviation Authority, Military Aviation (Air Force, Army and Navy) and Police Aviation.

Once the creation of the RST was formalized, work began with an analysis of significant changes, such as the maintenance projects at quick exit A3, to be performed from December 2016 until June 2017. The team performed a risk analysis regarding the presence of migratory birds near the airport. In addition to applying corrective measures, they implemented tools to report the presence of birds or bird impacts.

APEX (Airport Excellence in Safety) In 2014, Quiport signed a commitment to implement APEX (Airport Excellence in Safety), a program developed by ACI World to boost the airport’s ability to strengthen its operating safety management. From the beginning of the program’s implementation, we have updated the action plan annually, based on initial recommendations and self-inspection results. A technical team appointed by the airport’s director and approved by the aeronautical authority performed these selfinspections. This team, accompanied by a group of internal inspectors, biannually reviews compliance with the Aerodrome Manual, the Safety Management System (SMS), among other activities.

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Other additional activities included: •

Stop signs were painted as replacement for yield signs at certain airport points, to avoid confusion among drivers.

We improved the friction measurement process, developing a monitoring program for the performance indicator, and improving calibration of the equipment.

In order to comply with domestic law and improve the airport’s maintenance methods, we acquired new equipment to optimize time and resources (see Quiport Acquires Equipment to Optimize Maintenance).


We are carrying out research on attractive sites for animals within a 13 km radius of the airport. This study will include a map incorporating extrinsic animal threats (reservoirs, sanitary landfills, vulture roosts) along with their location.

We developed an annually updated matrix of at-risk species for air operations, along with the necessary mitigation measures to monitor them.

Finally, on July 20th, 2016, we submitted a draft of the second edition of the Aerodrome Manual to the aeronautical authority, for its review and approval. This amendment includes a series of APEX recommendations, primarily related to signage in the movement area.

Progress of Stage 2 of the Safety Management System During 2016, the Civil Aviation General Directorate accepted Stage 1 of the Safety Management System (SMS). Since then, our focus has been on carrying out Stage 2, implementing the following actions: •

Defining safety policies and objectives.

Defining responsibilities related to the Safety at the organization’s relevant areas.

in July 2016, certain changes were proposed for the second edition. The aeronautical authority must accept these changes prior to their acceptance of Stage 2 of the SMS. •

Creating safety Committees and a Safety Action Group (SAG).

Creating an emergency response plan. Mariscal Sucre Airport’s emergency plan was approved form the beginning of its operation. However,

Progressive development of the SMS Manual and other related documents.

These activities have been subject to comments from the aeronautical authority, which will be adopted in order to have Stage 2 accepted in 2017.

Optimal Safety Indicators We saw a drastic reduction in accidents due to improved infrastructure and better safety procedures, proving that the airport’s operating standards are appropriate.

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25

28

ACCIDENTS

14 8

6 3

2013

2014

2015

INCIDENTS

2016

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Safety Week We held Safety Week on the 7th, 8th, and 9th of December at the B1 and B2 boarding lounges of the passenger terminal. The event was inaugurated by Yves Gautier, CEO & General Director of ADC&HAS. During the inauguration, we showed our recognition to the companies that stood out in 2016 in the area of safety: PetroAmazonas, Mantomain, Andes, LATAM, and Avianca. During this event, we held conferences and presentations addressing subjects of interest for executives, management staff, and operating personnel, related to safety culture. Aeronautic phraseology courses were held for ground staff in order to avoid confusion among air traffic controllers,maintenance personnel , ground service personnel and operations personnel as well as all people involved in aircraft towing procedures, to teach them how to communicate adequately with

the control tower in a manner that avoids confusion. We also held a conference on aeronautic meteorological codes for pilots, flight dispatchers, and the meteorological information staff. Specialists from DGAC, Avianca, ADC&HAS, and Quiport were present at the various speaking events. At the event we also showcased new technology acquired by the airport and other issues such as rubber removal equipment, retro reflectivity equipment, surface friction measuring equipment, apron led lighting, ergonomic recommendations, healthy sleep for staff, waste management, the presence of (FOD) Foreign Object Debris, and vertical rescues. Close to 400 people attended Safety Week.

Our Aeronautic Firemen Maintain Excellent Response Times Our aeronautic firemen’s response time is vital to saving lives in the event of an aviation accident. The International Civil Aviation Organization (ICAO) recommends that the maximum time it should take for the Aircraft Rescue and Fire Fighting Service

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(ARFF) to reach the farthest point of an airport must be three minutes. The graph below demonstrates that ARFF members at the Mariscal Sucre Airport achieved times under two minutes for the drills held in 2016.


General Emergency Simulation On Tuesday, September 20, between 00:00 and 3:00 a.m., Mariscal Sucre international Airport held a general emergency drill, in order to verify the effectiveness of the actions of all entities involved with airport emergency response, as well as to comply with the procedures and regulations stablished by the airport’s emergency plan, DGAC, and the International Civil Aviation Organization (ICAO). According to the emergency plan, the DGAC’s Civil Aviation RDAC153 Technical Regulation, and the ICAO, Airport Operators must execute a general emergency drill every two years and have all the airport entities and mutual aid organizations (ECU911, Quito Firefighting Corps, Red Cross, among others) participate.

the aviation authority issued an official notice to all of the air transport industry on a global level (NOTAM, for its initials in Spanish), informing them of the airport’s closure between 00:00 and 03:00 a.m local time on September 20th. This exercise allowed us to verify the transfer of control from the on-shift staff to airport management staff. Furthermore, we were able to analyze the airport’s capacity for nocturnal response including all the entities that should respond to an emergency. With this simulation the airport identified several areas for improvement that will be immediately addressed to strengthen emergency management efficiency at the Quito Airport.

Since it was a general drill, all operations were temporarily suspended. In coordination with DGAC,

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Rescued Predatory Birds are Rehabilitated at the Quito Airport Last July 22nd, the Quito Airport adopted two predatory birds in vulnerable conditions rescued by the Ministry of the Environment in the province of Sucumbíos. Around this time, we received a king vulture (Sarcoramphus Papa) from the condor family, which had injured wings, and a fishing eagle (Pandion Haliaetus) that had lost most of its feathers. These animals were admitted into the predatory bird rehabilitation center set up at the Mariscal Sucre International Airport’s facilities, as part of its animal control program. This program uses falconry as it main resource. With proper facilities, a large space, and the highly skilled and specialized scientific-technical staff of the Faunaetus organization, the rehabilitation center – the first center in Ecuador specializing in predatory birds—provides various types of treatment for the recovery of these birds.

When a bird is admitted, the main objective is its rehabilitation and reinsertion into its habitat. Birds arriving for rehabilitation at the airport are treated with various techniques, such as: feather grafts, fattening, and muscle development. In the event that these birds cannot be reinserted into their habitats, they undergo deterrence training and techniques. Currently, the airport’s animal control program has eleven predatory birds that are prepared to naturally fend off other species. If such other species feel the presence of predators, they will avoid passing through the area under their control, in this case, the airport. Corporación Quiport implemented the program in 2013. Few airports in the region have falconry programs for animal control.

Quiport Acquires Equipment to Optimize Maintenance During 2016, Quiport added four new pieces of equipment to the airport’s operation designed to improve maintenance of the traffic area. This equipment includes a rubber-removing machine, designed to improve the cleaning of rubber accumulated on the runway and thereby improve the friction indicator; a retro reflectometer to ensure that horizontal signage has the adequate reflectiveness mandated by law, and; a paint striping machine, which is equipment designed to paint on pavement at the traffic area. It is easily

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configured and provides a high paint yield. Furthermore, Quiport purchased photometric measurement equipment to obtain exact measurements of the alignment of runway and taxiway lights, as well as their brightness. This new equipment will improve airport maintenance efficiency and operating security standards, as it considerably reduces work times and allows us to maintain our infrastructure in optimal conditions.


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Ongoing Training is Vital to Our Operation The airport industry is one of the most technical and dynamic in the world and it is subject to continuously updated laws, concepts, technologies, and procedures that allow higher operating and service standards. This dynamism forces airport operators to develop ongoing training programs for their employees and collaborators, in order to keep them updated at all times.

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In addition to training provided by Quiport on administrative, financial, and technical management to its staff and collaborators, the airport is carrying out a comprehensive operating plan for its employees and personnel providing services at the airport through ADC&HAS.


Main Training Provided to ADC&HAS Staff:

Main Training Provided to Third Parties:

Airport operations

Safety procedures for subcontractors

Aeronautic phraseology

Operating boarding bridges

Trainair instructors

Airport management workshop

Safety Management System

Handling of fire extinguishers

Internal work safety and health regulations

Airport emergency and contingency plan

Airport emergency and contingency plan Aircrafts and aerodynamics Aeronautic firefighters Letter of operational agreement with the control tower

Main Subjects Taught in Routine Training for the Aircraft Rescue and Fire Control Service:

Personal protection equipment

Theoretical aircraft instruction

RDAC 154 - RDAC 153 regulations

Physical education

Airside safety

Instruction regarding fire extinguishers

Operating of the fissure-sealing machine

Familiarization with the airport

Operation of the rubber-removing machine

First aid

Operation of the self-propelled paint striping machine

Proceedings in which the ARFF intervenes Vertical rescue

Operation of the photo-electric measurement equipment for visual aids

On-ground tactics

Human factors in aviation (operation and maintenance)

Theoretical and practical instruction of rescue vehicles

Airport maintenance training

Aerodrome Manual

Wildlife management Airport pavement Airport safety program Management system reports regarding operating security

Total man-hours for training in 2016: 37,497 man-hours 14,351 man-hours for ADC&HAS staff training. 15,102 man-hours for routine training of the Aircraft Rescue and Firefighting Service (ARFF). 8,044 man-hours dedicated to training third parties (subcontractors and commercial operators).

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The Quito Airport is the Official Gateway into Ecuador Due to its status as the main gateway into Ecuador, the airport receives the visit of foreign authorities and important personalities on a global scale. In order to manage these visits adequately without affecting operations, we developed a series of special operations.

All of these experiences have allowed us to continue positioning Mariscal Sucre Airport as one of the main airports on a regional scale with a reputation for excellence.

Mariscal Sucre Airport was Vital to the Success of Habitat III The Quito International Airport played an important role in the success of the United Nations Conference on Housing and Sustainable Urban Development, Habitat III. The agility with which the airport assisted passengers, along with the cordiality and efficiency of all persons, companies and institutions providing services at the airport, were key factors to allow us to project an excellent image of the country to the thousands of visitors who arrived in Quito. The multiple positive comments received by the authorities, special visitors, and conference participants support this. These comments highlighted the comfort of the airport facilities and excellence of its services. To face the challenge posed by Habitat III, Corporación Quiport performed a series of improvements and special operations to put Mariscal Sucre International Airport ready, and, in this way, contribute to the best image of the city at this transcendental event for Quito.

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In collaboration with the Ministry of Foreign Affairs, the General Civil Aviation Directorate, and Empresa Pública Metropolitana de Servicios Aeroportuarios [Metropolitan Airport Services Public Company], we carried out an orderly operation in order to tend to Habitat III participants, without affecting the airport’s regular passengers. Eleven heads of state from various parts of the world arrived for Habitat III in addition to the highest authorities of the United Nations system bodies, headed by General Secretary Ban Ki-moon. Due to the working team’s professionalism and experience, the visitors did not experience any inconveniences at the airport.


Opinions of Senior Officials who Traveled to the Habitat III Conference This airport, which is in continuous improvement, has been put to the test on the occasion of this meeting and has responded as expected. Fabian Valdivieso, ambassador in charge of Diplomatic Protocol, Ecuadorian Ministry of Foreign Affairs.

I am pleased that Habitat III took place in Quito. I believe that everything was well organized. From our arrival at the airport, everything was very well decorated to welcome us. Eglantina Gjermeni, Minister of Urban Development, Albania.

I believe [the airport] is very comfortable [and] modern. This is a good infrastructure for a city such as Quito. José Blandón Figueroa, mayor of the District of Panama, Panama.

The airport itself is a great public space with many facilities and services. I am pleased that they provide space for its own paintings, its own art. Alicia Bárcena, Executive Secretary of CEPAL, Chile.

The airport meets all the conditions for modernity, capacity, and hospitality, which is what one expects from the capital of a country as important as Ecuador. Paulina Saball, Minister of Housing, Chile.

Other Special Operations •

Fourth Summit of the Community of LatinAmerican and Caribbean States (CELAC, for its initials in Spanish) — January.

Visit of the President of the Republic of Turkey, Recep Tayyip Erdogan – February.

Visit of the Chancellor of the Islamic Republic of Iran, Mohamad Yavad Zarif – August.

Visit of the President of the People’s Republic of China, Xi Jinping – November.

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Building Trust in Our Services Building trust

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Continuous Renewal is Our Management’s Signature The spirit of renewal is a constant factor at Corporación Quiport. This spirit pushes us each day to search for new opportunities to improve the quality of services at the Mariscal Sucre International Airport in order to provide the best experience to our clients (airlines, government agencies, etc.), passengers, and users, in general. In 2016, the focus of Quiport’s planning was on four key factors designed to further enhance service

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quality standards: improving physical space through adjustments to infrastructure; enhancing commercial offer through our retail stores; providing greater facilities to the passenger, and; strengthening the airport’s sense of belonging to the city of Quito and the country.


We Grow in Response to Our Users’ Needs The Quito Airport Replaces Conventional Lights with LED Technology In a project designed to improve energy efficiency and reduce its carbon footprint, in mid-2016, Corporación Quiport began to replace its traditional lighting at the passenger terminal building with LED lighting. The goal was to reduce the airport´s power consumption by approximately 23% and significantly contribute to reducing its carbon footprint.

The work consists of replacing over 3,400 lights. This will positively impact the airport’s general efficiency, its safety, and the comfort of our users. It will obviously also benefit the environment as these lights have longer lives, are smaller in size, emit less heat, and are more reliable.

Arrival in Quito Becomes More Efficient and Pleasant In order to provide larger and more comfortable spaces at the passenger terminal and provide new areas necessary to ensure correct operation of all the airport’s optimal facilities, Quiport made a series of upgrades to the passenger terminal building. Pursuant to the inauguration of the new domestic terminal, part of the older first-floor boarding areas became part of the international arrivals immigration hall. This allowed us to increase the area for immigration waiting lines by 27%. The area was also decorated with orchids, some of the country’s most representative flower species, in order to provide a greater sense of belonging and a warm welcome to travelers who arrive in Quito. A comprehensive space redesign, which contemplates restructuring the immigration counter area and relocation of the Duty Free retail store, increased the baggage claim area by 12%.

Customs The Customs area also benefitted from the additional space, which was increased by 17% and currently occupies 748 square meters. This allowed us to optimize space to distribute waiting lines and X-ray machines. In this way, passengers are provided with greater comfort and space, while reducing processing times, and improving efficiency for customs control.

Fifth Baggage Carrousel Furthermore, Quiport installed a fifth baggage carrousel improving efficiency in baggage delivery and Customs. This fifth carrousel allows greater flexibility for the infrastructure at the baggage claim areas. By using swing gates, we can assign a greater number of carrousels either for domestic or international arrivals, depending on passenger flow.

After these upgrades, passengers moving through Quito’s Mariscal Sucre Airport can make their purchases at the Attenza Duty Free Store upon arrival. The retail store now incorporates a more modern walk-through design. The upgraded retail store occupies a 250 square meter area and was relocated to a space immediately adjacent to the immigration control counters.

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New Immigration Control System Since September 17, a new immigration Control System (Simiec) was installed at all control points in the country, and therefore, at the Quito International Airport. This system benefits users with a more streamlined service, without neglecting the control filters that are necessary to fulfill immigration policies. Quiport worked in coordination with the Ministry of the Interior to provide all the necessary technological support for the swift and correct implementation of the airport system. This platform performs an easy exchange of information updated in real time, given its connection to the databases of the Civil Registry, the Ministry of Foreign Affairs and Human Mobility, the National Direction of Crimes against Life, Violent Deaths, Disappearances, Extortion, and Kidnapping (DINASED by its Spanish initials) and the Judicial Police. In this way, the information provided by

nationals and foreign citizens is rapidly verified. Furthermore, the system automatically calculates the days of permanence for non-resident foreign citizens and, thus, substantially automatizes and simplifies processes like travel annulments and extensions. The national I.D. or passport –essential travel documents– are analyzed with a digital scanner located at each counter at the country’s points of entry and departure. This device verifies user information. In this manner, persons no longer have to complete the Andean Migration Card manually. As a result, the waiting time to complete the migratory registration has been improved considerably.

Greater Comfort and a Better Experience As part of our planning, and to improve the airport’s service standards and offer a better travel experience, we performed a series of projects in the passenger terminal building, as listed below : •

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New boarding lounge on the second floor, with space for 150 passengers and decorated to include plants and special furniture to give the area a more welcoming environment.

Digital public announcement system improving the quality of voice announcements at the terminal with a uniform sound level.

Protocol lounge allowing Diplomatic Corps representatives to receive official visits in an adequate space with all the required facilities and amenities.

Anti-narcotics room allowing performance of anti-narcotics control in an area appropriate for this task.

Room for inadmissible passengers having larger areas and all the services necessary for nonadmitted passengers by migratory authorities.

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Working tables with power outlets for computers and mobile devices.

Repacking area (for passengers who need to reorganize their luggage contents).

Improved wayfinding.

Increased amounts of power outlets at boarding areas.

Smoking areas located outside the passenger terminal.

Children’s playroom at the international preboarding area.

Installation of artificial grass in the outside terrace of lounges A11 and A12.


Wyndham is Already a Part of the Airport City On July 14th, the Wyndham Quito Airport Hotel was inaugurated, located a few meters from the passenger terminal. This hotel has 150 large rooms, a modern lobby, a restaurant that offers excellent national and international cuisine, three banquet halls, and six conference rooms. The presence of a hotel so close to the terminal provides great benefits to users, passengers, airlines, and other stakeholders in the air transport industry. It also provides an incomparable opportunity to accommodate passengers who must connect with other flights in less than one day, as well as airline crews. The new hotel is known for its impressive architectural structure, which evokes the majesty of the country’s symbolic bird: the Andean condor with unfolded wings.

From the initial stages of the new International Quito Airport project, Corporación Quiport identified the need for a first-rate hotel in the airport area. With the inauguration of the Wyndham Quito Airport Hotel, the Quito Airport City continues to grow to complement the services offered at the airport terminal. The Wyndham Quito Airport Hotel was financed, built, and is operated by Pronobis. The inauguration ceremony featured the presence of Fernando Alvarado, Minister of Tourism, Gabriela Sommerfeld, General Manager of Quito Turismo, Isabel Noboa Pontón, president of Consorcio Nobis, and Andrew O’Brian, President and CEO of Corporación Quiport.

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The Airport Reflects Quito´s Cultural Wealth Landscaping Holds an Important Place

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An important area of work in 2016 was the development of a landscape improvement project at the airport’s facilities. When passengers leave the airport terminal, the façade of the Quito Airport Center’s administrative and commercial business now presents a new view. A longitudinal water fountain with 27 jets greets visitors. The sprayed water takes on various colors at night due to a special lighting system.

The roundabout connecting Collas road to the Alpachaca connector, diagonal to the Wyndham Quito Airport Hotel, is another space showing a renewed exterior. In the center of this roundabout, a circular monument evoking the country’s location at the Equator was erected. In its surroundings, a garden has been designed with a water fountain, giving this space a new aesthetic appearance.

A garden mounted on three terrace-like stairs holding various species of decorative plants has been designed behind the water fountain. In order to facilitate their maintenance and conservation, the decorative plants are native to the area.

Corporación Quiport’s objective is to make the airport increasingly warmer and cozier— a unique place to welcome all those who arrive in the country.

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Mural Painted by Jorge Perugachy at the International Pre-boarding Area A mural painting created by renowned Ecuadorian artist Jorge Perugachy is exhibited at the international boarding area of the Mariscal Sucre Airport. This piece is entitled Quito y sus encantos [Quito and its Charm]. The piece portrays the city’s multiple stories in hundreds or perhaps thousands of persons and scenes, not only including heroic gestures but also popular customs. The mural includes Quito’s narrow, winding streets, its colonial houses with their red roofs, its convents, the Panecillo hill and markedly, towards the top right, the new city airport’s control tower, as a symbol of the city of the future.

The creation of this piece and its placement at the airport was supported by various authorities and instances of the Municipality of the Metropolitan District of Quito. Permanent exhibition of this piece at the capital airport is possible thanks to the sponsorship of Diners Club del Ecuador, Attenza Duty Free, and Corporación Quiport.

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The Control Tower is Lit to Convey a Greater Sense of Place The implementation of a lighting system for the control tower’s body was a project that held deep symbolic meaning. We sought to provide a sense of the airport’s belonging through its most iconic structure. In order to install the lighting system, we worked in coordination with the Civil Aviation Directorate of Ecuador. The system was first used at the commemoration of 207 years of the First Declaration of Independence in Ecuador; the control tower was lit up with the colors of the national flag: yellow, blue, and red. In subsequent occasions, the tower was lit up with green to honor the victims of the LAMIA aircraft accident in which soccer team Chapecoense of Brazil was flying. It was also lit up with orange in support of the United Nations Secretary General’s campaign to eradicate violence against women. Between the 4th and the 6th of December, the tower was lit up with blue and red to celebrate the Spanish foundation of Quito.

The system was first used at the commemoration of 207 years of the First Declaration of Independence in Ecuador; the control tower was lit up with the colors of the national flag: yellow, blue, and red.

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Focused on Improving Travel Experience Shopping Options Continue to Grow at the Airport At the commercial area of the International Quito Airport, called Mall del Cielo, Quiport inaugurated a series of retail stores offering internationally prestigious brands. Quiport also worked on renewing other spaces, offering our passenger a varied, attractive, and quality shopping experience.

Renewed stores Attenza Duty Free* Relocated to a space after the Immigration area. Offers products from the best brands in technology, perfume, liquor, apparel, chocolates, and more.

Opening: March 2016

Global Exchange Relocated to the public arrivals hall. Currency Exchange.

Opening: June 2016

RepĂşblica del Cacao Redesigned and improved image. High-quality chocolate boutique, fine aroma, 100% Ecuadorian chocolate.

Opening: October 2016

Assistcard Expansion, new image and relocation to the departures public hall. Travel insurance and assistance plans.

Opening: October 2016

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New Retail Stores Diageo* Store specialized in liquor.

Opening: May 2016

Samsung* Electronic articles and accessories of this prestigious brand.

Opening: September 2016

Adidas* Apparel from this German company, leader in sports products.

Opening: October 2016

Bijoux Terner* Retail store specialized in jewelry and accessories.

Opening: October 2016

WIFI to go SIM cards and internet routers for travelers.

Opening: October 2016

Smartphone Soluciones Telephone and internet services. Telephone SIM cards for foreign countries.

Opening: October 2016

*Duty-free stores

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Leading Brands Present in the Airport

DUTY FREE S TO R E S

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R E TA I L S TO R E S


FOOD & BEVERAGES

SERVICES

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Mall del Cielo Awarded Prize in the “Win a Vespa” Promotion Andrés Gómez, winner of the Vespa Sprint 150 motorcycle raffle organized by Corporación Quiport, received his prize in January 2016. Quiport created this promotion as a way to increase customer loyalty and reward its customers for their purchases at Mall del Cielo at the Quito Mariscal Sucre Airport. Thousands of participants made their trip the perfect opportunity to compete for this spectacular prize.

The winner had made a purchase at Galerías Tikuna, a retail store specialized in handmade crafts located at the international departure area, while he was awaiting his flight. In this way, Mall del Cielo and the Quito Airport rewarded customer loyalty.

Photography Exhibit for the 195th Anniversary of Central America’s Independence In September, the Quito International Mariscal Sucre Airport presented a photography exhibit at the public departures hall located in the passenger terminal. The exhibit showed the diversity and beauty of Central American nations: Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The art gallery is exhibited due to the celebration of the 195th anniversary of their independence from Spanish rule.

In Ecuador, the embassies of these five countries recalled the significance of this date to their citizens and highlighted their country’s relations with Ecuador in political, cultural, commercial, tourism, educational, and immigration areas. The various countries held celebrations that were characterized by parades carried out by students and local authorities, pursuant to their civic duty. The parades called for citizen unity and were also full of festivity and local music. With this exhibit, Corporación Quiport and the Quito Airport joined these celebrations.

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Golfers Experienced the Airport’s VIP Treatment at Copa HQM Golf Tournament Asociación de Hoteles de Quito Metropolitano (HQM by its Spanish initials) organized – for the eighth consecutive year- the “COPA HQM” open golf tournament at Arrayanes Country Club. Next to the 13th hole, Quiport installed a VIP station where golfers were able to enjoy the amenities offered by the Mariscal Sucre Airport’s VIP lounges, from food and beverage specialties to a relaxing break. In this way,

participants received the same treatment that they would experience again on a first-class flight. Once the sporting event ended, prizes were awarded, including two annual memberships to the Quito airport’s VIP services, as a courtesy of Corporación Quiport to the winners of the male and female Longest Drive.

Quito Airport Joins the U.N.’s “UNITE” Campaign Between November 25th and December 1st, Mariscal Sucre Airport dressed in orange to commemorate the International Day for the Eradication of Violence Against Women.

The United Nations Secretary’s campaign, “UNITE” aspires, since 2008, to raise social and governmental awareness to prevent and eradicate violence against women and children in the future.

In order to commemorate this important date, the control tower was lit up in orange throughout the night and the passenger terminal was decorated with commemorative roses tinged with that same color.

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Nuestro Mundo is the Airport Magazine Par Excellence With 36 continuous editions since July 2013, Nuestro Mundo Air Magazine strengthens its position as the airport magazine par excellence due to the quality of its content and an impeccable presentation. Nuestro Mundo is a great option for our travelers to enjoy reading enriching articles, with subjects that are especially selected so that our passengers begin to get excited about their next trip, even before take-off.

Furthermore, the magazine is a magnificent channel to reach users with the most relevant information regarding Quiport’s management of the Mariscal Sucre Airport. Additionally, it allows us to strengthen our ties to interest groups and strategic partners who are able to access space for information and advertising.

Agosto - septiembre 2016

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Aeropuerto de Quito, en lo más alto de Sudamérica por tres años consecutivos

La belleza de Ecuador fue nuevamente reconocida en los World Travel Awards 2016. El Aeropuerto Internacional Mariscal Sucre de Quito se llevó el galardón como Líder de América del Sur.

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a ciudad de Lima se prestó como el escenario ideal para que el Aeropuerto Mariscal Sucre de Quito confirme, por tercer año consecutivo, su condición de Aeropuerto Líder de Sudamérica, en la reciente

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entrega de la edición 2016 de los World Travel Awards, los premios más importantes a escala mundial dentro de la industria del turismo. Una vez más, Ecuador se llevó varios de los premios princi-

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pales, entre los que se destacan Quito como Destino Líder de Sudamérica, Ecuador como Destino Verde, el Tren Crucero y la ciudad de Guayaquil como Destino de Negocios, entre otros.

“El premio le pertenece a los más de 7 000 trabajadores del Aeropuerto de Quito, que con su trabajo lo han colocado en lo más alto de Sudamérica. Son ellos, su compromiso y la excelencia con la que desarro-

Fotos: © Quiport

QUIPORT

QUIPORT NOTICIAS

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a los miles de pasajeros que circulan por la terminal, mientras que en la plataforma, lejos de la mirada de los pasajeros, personal de operaciones, operadores de equipos de rampa, controladores de tráfico aéreo, pilotos y mecánicos coordinan el movimiento y ponen a punto toda la infraestructura para el despegue y aterrizaje de las aeronaves.

llan sus tareas diarias, quienes merecen el reconocimiento”. Así se expresó Andrew O’Brian, presidente y director General de Corporación Quiport -concesionario del Aeropuerto Mariscal Sucre- al

momento de recibir el trofeo en la ceremonia de gala desarrollada el viernes 1 de julio en el Swissôtel de Lima – Perú. Y es que el aeropuerto de Quito funciona adecuadamente gracias a que gente de limpie-

za, seguridad, aduana, aerolíneas, migración, servicio al cliente, tiendas y restaurantes permanentemente mantienen todas las instalaciones de la terminal con su mejor presentación para recibir y atender

La clave del liderazgo El mercado del transporte aéreo en Quito es cada vez mayor, y el nuevo aeropuerto Mariscal Sucre ha permitido y estimulado su crecimiento. Desde su apertura, en febrero de 2013, las aerolíneas han expandido drásticamente el servicio de transporte aéreo a Quito, y el tráfico internacional de pasajeros en la ciudad aumentó 28 % en los tres años de funcionamiento, mientras que la llegada de visitantes no residentes a Quito se incrementó en un 33 % durante este período y el turismo de Quito sigue creciendo. El reto para mantenerse en lo más alto por otro año está planteado. Para ello, Corporación Quiport trabaja permanentemente para identificar posibilidades de mejora. Este nuevo galardón, lejos de ser un fin, obliga a renovar el compromiso por mantener y superar los más elevados estándares de operación y servicio de la industria aeroportuaria. “Hoy estamos muy contentos por lo que hemos logrado, sin embargo mañana estaremos trabajando en la búsqueda de nuevas oportunidades para seguir mejorando, no para ganar un premio, sino porque la ciudad y nuestros pasajeros lo merecen”, puntualizó el señor O’Brian.


Social Media Grows in Coverage and Credibility Our digital communication channels with our passengers have grown in coverage and credibility. They are currently valued as authentic service tools providing immediate and relevant information, and they

Facebook

41,328 followers as of December diciembre 2015

2016

49,500 followers as of December 2016

19,77%

6,522 tweets 4,708 mentions 18,707 likes 13,436 retweets

16,518 likers as of December 2015 22,179 likers as a December 2016

2016

Twitter

also allow our passengers to resolve their questions and issues. Furthermore we opened an Instagram account to share our passengers’ experiences this year as another way to reach our public.

34,27%

515 Posts 1,397 Comments 48,904 Reactions 6,840 Shares

Quito Festivities The 482 years since the Spanish foundation of Quito did not go unnoticed at the city’s airport, where we held a celebration addressed to passengers and users who were passing through its facilities on Monday, December 5th. The celebration’s protagonists were youths dressed up with costumes from colonial times, representing

‘quiteñas bonitas and el chulla quiteño’, traditional characters from the Quito colonial era. Along with a town band, which is traditional during these festivities, they kick-started the celebration where our passengers were the honorary guests. Thus, passengers enjoyed an unusual experience at the airport and celebrated Quito’s history.

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Building Trust Through Corporate Social Responsibility


Socially Responsible Management is Linked to the Sustainable Development Goals Since the beginning of the Quito International Airport Project, Corporate Social Responsibility has been one of the pillars of Corporación Quiport’s management. As the project continued to develop, our focus on social responsibility has also progressed, and today it is a tool for the sustainable development of communities and the environment. In order to focus global efforts towards sustainability, on 25 September 2015, the United Nations agreed to 17 Sustainable Development Goals. (SDGs). Each goal sets specific objectives that must be attained within the next 15 years. At Quiport, our social responsibility work sought to define the programs and projects as a function of the SDGs in order to direct our efforts more efficiently. In this way, we were able to connect management to achieve a positive effect with respect to these 17 SDGs. This plan was presented to the citizenry during the Sustainability Summit organized during the United Nations Conference on Housing and Sustainable Urban Development, Habitat III, which took place in Quito between the 17th and 20th of October, and in which Quiport participated with a stand located at the Corporate Social Responsibility Pavilion. Using interactive audiovisual resources, Quiport presented its main social responsibility projects to the summit’s attendees, explaining how they relate to the SDGs and how they directly benefit the environment and the communities that surround the airport.

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Furthermore, Corporación Quiport was invited to participate in a series of seminars and conferences at the event focusing on the carbon footprint of the Mariscal Sucre International Airport. At the conference, Jaime Pérez, Quiport’s Environmental, Occupational Health, Industrial Safety, and Social Responsibility Manager, explained the Carbon Footprint Airport Certification process carried out by Airport Council International (ACI) and recognized by the United Nations, the International Civil Aviation Organization, the World Bank, and the U.S. Federal Aviation Administration (FAA). The entire process consists of four specific stages: mapping, reduction, optimization, and neutrality of the airport’s carbon footprint. As of the date of the presentation, Mariscal Sucre International Airport was among the 160 certified airports on a global level in any of the four stages, only four of which belong to Latin America and the Caribbean. This makes it one of the region’s pioneers. The Quito airport is certified for stage 1: mapping, and in 2016 we worked to move to stage two: reduction. This chapter contains the highlights of our Corporate Social Responsibility work in 2016 and its relationship to the Sustainable Development Goals.


Sustainable Development Goals (SDG) 17 Goals to Transform Our World.

1 NOPOVERTY

2016 provides an unprecedented opportunity for the countries and citizens of the world to embark on a new path to improve the lives of people everywhere. Countries have adopted a new sustainable development program and a new global agreement on climate change.

2 ZERO HUNGER

HEALTH AND WELL-BEING 3 GOOD

EDUCATION 4 QUALITY

EQUALITY 5 GENDER

WATER AND SANITATION 6 CLEAN

AND CLEAN ENERGY 7 AFFORDABLE

work and 8 decent economic growth

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10 reduced inequalities

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below water 14 life

on land 15 life

sustainable cities And communities

industry, innovation and infrastructure

consumption 12 responsable and production

13 climate action

justice and strong 16 peace, institutions

for the goals 17 partnerships

Source: United Nations.

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Corporate Social Responsibility Programs According to its field of impact, and for didactic effects, the programs have been divided into three large groups: environmental, economic, and social issues.

ENVIRONMENTAL ISSUES Noise Monitoring In order to comply with Ecuadorian law, we responsibly manage the noise caused by the airport’s operation, through measurements on a semester basis.

Furthermore, we prepare quarterly maps regarding the dissemination of noise to define the levels reached by the airport’s sound in its area of influence.

SDG: Cities Relevant Information: The measurement is performed at eight different points of the airport and its surroundings.

Interesting Fact:

The airport occupies a lot delineated by natural barriers (streams) that act as a buffer against noise dissemination.

In 2016: We performed two noise measurements in January and July, pursuant to the Quito Airport Environmental Management Plan. As prescribed in domestic legislation (Book VI, Annex 9, Rules for Noise at Airports I TULAS), we performed a Noise Impact Assessment and determined isophonics (noise curves) using a noise contour map.

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The results indicate that we are in compliance with environmental law as to permissible limits of environmental noise at all measurement points, with the exception of a slight excess of an average of 2 dB (decibels) at the Guambi sector, because this area is directly influenced by the aircraft operation routes. Quiport will apply established procedures to determine the actions required to correct or mitigate this impact.


Wastewater Management The system permits us to purify rainwater and wastewater resulting from the airport’s operation before it is discharged. Rainwater passes through grease traps and is then directed to a reservoir where it

undergoes a sedimentation process, prior to its final discharge. Sanitary wastewater arrives at the treatment plant through the airport’s internal sewage system, where it is subject to various purification processes.

SDG: Water, Climate Change Relevant Information:

No untreated water is discharged from the airport.

Interesting Fact:

Our internal policies require mandatory use of certified biodegradable products throughout the entire airport.

In 2016: During the last quarter, we began installing ultrasound equipment to control the growth of

algae, biofilm, and cyanobacteria through resonance and sound pressure at the rainwater reservoir.

Carbon Footprint The Quito airport participates in the Carbon Footprint Certification program established by Airport Council International. The objective is to reach a neutral carbon footprint in the medium term. A carbon footprint is the

amount of greenhouse gases emitted by any human activity. The certification has four stages: Mapping, Reduction, Optimization, and Neutrality.

SDG: Climate Change Relevant Information:

Interesting Fact:

We have complied with the first stage: determining the magnitude of our operation’s carbon footprint.

We fostered the modernization of ground support vehicle fleets; replacing them with electric vehicles.

In 2016: We focused our efforts on stage 2 of the certification, which consists of reducing emissions. We verified compliance with international and domestic standards as to NOx emissions (nitrogen oxides and other greenhouse gases) for all vehicles that operated at the airside of the airport. We replaced 100% of the airport’s lighting with LED lights that consume less energy, have longer useful

lives, are smaller in size, and do not use polluting materials in their manufacturing. Quiport detected that operators located outside the passenger terminal have already replaced 11.6% of their lighting systems with LED lights. This indicator will allow us to raise awareness among companies regarding the use of less polluting lighting.

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Biotic Monitoring of the Caraburo Plateau We annually monitor flora (plants) and fauna (birds, mammals, amphibians, and reptiles), in order to keep abreast of the conditions of species inhabiting the area (endemic and migratory). This allows us to determine whether the operation is affecting the

species inhabiting the plateau, due to variations in their quantity, in addition to complying with our Environmental License and the requirements of the Ecuadorian Ministry of Environment.

SDG: Biodiversity Relevant information: Since 2009, we sample the same ten parcels.

In 2016: Biotic monitoring of the Caraburo plateau yielded the following data: Flora: •

We registered 249 species distributed among twenty-two individuals, fourteen of which are native species.

The most abundant species was Sylvilagus brasiliensis (rabbit) with a total of 37 individual animals identified through direct observation, followed by the harvest mouse Reithrodontomys soderstromi with 18% of the sample.

Fauna: Birds

Amphibians and Reptiles

We registered four species of amphibians and reptiles, distributed among 113 individual animals.

The dominant species was the Gunther guagsa (Stenocercus guentheri (Iguanidae/ Tropidurinae) with 46 individual animals, followed by Pristimantis unistrigatus (Craugastoridae) with 39 individual animals, and Gastrotheca riobambae (Hemiphractidae) with 27 individual animals.

At the plateau’s area, we registered 52 species of birds, 46 genera, and 23 families. This amount represents 9.6% of the total species recorded in the Metropolitan District of Quito (species).

Seven species of birds of prey were identified at the area, with eagles and sparrow hawks as the predominant birds, constituting 57%.

Most birds recorded at the airport show a great capacity of adaptation to ecosystem changes.

Mammals •

We registered three species of mammals, which represent 0.7% of the mammalian species in Ecuador (414 species).

Photo: Cardno ENTRIX 108 2016 Annual Report /


Photo: Cardno ENTRIX Building trust

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ECONOMIC ISSUES Economic Impact of the Airport at the Country, Region, and City Level The Quito airport project has strengthened the economy and productive activities like exports (flowers). It has increased tourism, improved local economies, and improved employment opportunities, among other things. Given that the

infrastructure is growing, the airport is considered a generator of continuous opportunities and a catalyst for improvement in infrastructure coverage and services to the area, including transportation, health, education, and entrepreneurship.

SDG: Poverty, Education, Economy Relevant Information:

35% of the population working at the airport belongs to nearby parishes (Puembo, Pifo, Tababela, Yaruquí, Checa, and El Quinche).

In 2016: Quiport ordered an Economic Impact Study to accurately determine the influence of the airport’s

operation on nearby parishes. Results will be ready by May 2017.

Skill-strengthening Program We promote this program to strengthen skills and provide training to the residents of the airport’s area of influence (Puembo, Pifo, Tababela, Yaruquí, Checa, and El Quinche), in order to improve their

employment opportunities, thereby transmitting knowledge and improving their management and self-management abilities.

SDG: Poverty, Education, Economy Relevant Information:

The program’s teachers are residents of the area, thereby increasing local employment.

In 2016: 139 meetings were held at three parishes to teach Basic Conversational English: Pifo, Tababela, and Yaruqui. Ninety people participated in these meetings.

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Interesting Fact:

Quiport volunteers evaluated the English language skills of the participants.


Employment and Services Database Program The airport creates jobs within its area of influence. We have implemented a tool to manage the resumés of all the applicants from the Metropolitan District of Quito, but in particular, of those applicants who reside in the parishes surrounding

our operation, in order to cover positions that arise at the various companies operating in the airport. The system is free and works with the information provided by the companies.

SDG: Poverty, Economy, Alliances Relevant Information:

Interesting Fact:

1,240 resumés have been entered into our Employment Database and 120 companies actively participate in requesting applications and resumé management.

The Employment Database surpassed limits of its area of influence and, currently includes resumés from candidates from all over the country, the United States, and Spain.

In 2016: 120 resumés were entered into the database. Companies outside the airport’s operation, such as

KAO Sports and Grupo Barlovento have requested resumes from Quiport’s employment database.

Shared Value: Our Garden This program integrates the area’s small agricultural producers in a chain of virtual community commercialization in which airport employees participate as consumers of local production. Supply is composed of fruits, dairy products, vegetables, bread, desserts, cooked grains, prepared food,

among others. Sixteen producers and their families, residing in the Puembo, Pifo, Tababela, Yaruquí, and Checa parishes participate in the program. Four hundred employees from eight companies operating at the airport consume the products of Our Garden.

SDG: Economy, Poverty Relevant Information:

Interesting Fact:

The program involves training for suppliers in various areas such as: sound agricultural practices, sound manufacturing practices, industrial safety, social responsibility, entrepreneurship and innovation, accounting management, and customer service.

36 products are offered and the number of products continues to increase according to our customers’ demands.

In 2016: Our Garden generated 1069 transactions. Compared to 2015, orders increased by 45% due to the addition of customers from companies such as Empresa Pública Metropolitana de Servicios Aeroportuarios and Petroamazonas. As part of an incentive plan, we

created the Our Garden award, to recognize most faithful consumers. Luis Galárraga, José Luis Quezada, and Patricia Silva, in that order, received awards for their purchases last year.

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SOCIAL ISSUES Public Inquiry and Participation Plan The community’s involvement in matters related to the airport’s operation and its influence is the basis for our relationship with them, through the continuous flow of information. Furthermore, this participatory mechanism collects opinions, suggestions, and observations from the communities.

This process is a two-way channel that includes representatives from parochial and municipal governments, academic institutions, companies, and transportation and sports organizations, among others.

SDG: Economy, Alliances Relevant Information:

822 meetings and 22,252 participants since 2006.

In 2016: Thirty-four meetings were held with 2,174 participants. The greatest concern among residents continues to be job creation. Quiport also maintains

ongoing communication with the presidents of the parochial boards and community leaders.

Legal Compliance Monitoring We continuously monitor environmental, occupational health, industrial safety, and labor aspects within all companies involved with the airport’s operation in order

to verify compliance with the legal framework currently in force. The airport maintains a Zero Child Labor policy.

SDG: Economy Relevant Information:

The airport’s operators are committed to complying with the legal framework currently in force.

In 2016: Operating companies maintained an average of 91% compliance with the law, eight points higher compared to 2015, when the average was 83%. The companies that demonstrated the best operating standards in environmental, occupational health, industrial safety, and labor compliance were:

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Banco Pichincha SA (Special Mention for Environmental Management)

Pertraly SA (Special Mention for Continuous Improvement)

Grupo Hanaska (Special Mention for Industrial Safety)

Allied Aviation Holding Corporation (Principal recognition)

Tame Línea Aérea del Ecuador (Special Mention for Occupational Health)

Rampas Andes Airport Services SA (Principal recognition)

Avianca en Ecuador (Special Mention for Labor Compliance)

Gate Gourmet SA (Principal recognition)

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Social Investment Plan 1. Scholarship Program Since 2007, this program benefits groups of students in a vulnerable situation, with few financial resources, and attending educational establishments in the airport’s area of influence. The program began with twenty-two scholarship recipients and, since 2010, it benefits 63 children and adolescents per year. They receive US$ 300 per student. This amount exclusively covers educational expenses.

As a result of this program, many children and adolescents who would not have been able to continue their studies have completed their high school educations and many of them have been able to go on to attain higher education, even abroad.

SDG: Poverty, Education, and Alliances Relevant Information:

799 scholarships awarded since 2007.

Interesting Fact:

The program was named after David Cachago, one of our scholarship recipients.

In 2016: Seventeen students completed their General Elementary Education and three scholarship recipients withdrew from the educational institutions for personal reasons. This opened opportunities up to admit new scholarship recipients to replace them.

The replacement process is carried out based on the profile of vulnerability of children and adolescents towards whom the program is aimed. The educational institutions, in coordination with Quiport, select the most suitable students to benefit from the scholarships.

2. Environmental Education Programs We work on environmental education programs at elementary schools and high schools in the Tababela and Yaruquí parishes, located nearby the Mariscal Sucre Airport. During these programs, we

address subjects such as environmental contamination, deforestation, recycling, diversity, organic garden care, and reforestation.

SDG: Consumption, Climate Change Relevant Information:

4,127 children and adolescents have participated in the Environmental Education Program.

In 2016: Sixty five meetings where held with 3,828 attendees from elementary schools Ricardo Rodríguez in Pifo, Dr. Arturo Freire in Tababela, Jesús Ordoñez in Otón de Vélez (Yaruquí), and Santa

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Catalina Labouré in Checa. The subjects of the meetings were recycling, dangers caused by bird strikes, global warming, and biodiversity.


3. Reforestation Each year, we hold a reforestation workshop at the airport plateau. We plant three species that are native to the dry ecosystem: carob trees (Acacia

macracantha), huarango trees (Tara espinosa), and cholรกn trees (Tecoma stans).

SDG: Forests, Climate Change Relevant Information:

One thousand people participated in the reforestation and planted 1,583 native trees to the area.

In 2016: We held a reforestation workshop with the Environment Secretariat of the Municipality of the Metropolitan District of Quito using native species

of the Caraburo Plateau. Three hundred people participated in this workshop and planted one thousand trees.

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Christmas Celebration with Neighboring Communities The communities adjacent to the Mariscal Sucre Airport operation participated, along with CorporaciĂłn Quiport, in a Christmas celebration that was organized to thank the communities for their excellent reception of the airport and to share their efforts towards achieving their own wellbeing and enhancing the development of the population.

Close to 800 guests accepted Quiport’s invitation, but, in reality, the children of the parishes surrounding the airport were the guests of honor. They enjoyed a day of games, magic, music, and a lot of fun.

The Community Works Hand in Hand with Quiport The airport’s presence has meant development opportunities and improvement in the quality of life of the residents at the six neighboring parishes. The airport and the companies operating therein directly employ approximately 7,500 people, close to 35% of whom are parish residents. Furthermore, these areas have benefitted from new roads built to serve the airport, and entrepreneurial opportunities in service activities (hospitality, transportation, and food and beverage, primarily), which have proliferated in the area.

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From the beginning of our presence in the area, Quiport has continuously worked with the communities and their leaders to identify areas for cooperation. Thus, our efforts have focused on two fundamental areas: employment opportunities, and education and training. All this work has been reflected in a great relationship with the community, which sees Quiport as a responsible neighbor that is concerned about its people.


“Thank you for the magnificent and altruistic work performed at La Cocha and El Tablón neighborhoods and for giving the children living at the periphery of our jurisdiction the opportunity to visit the airport.” Ángel Vega, president of the Autonomous Decentralized Government of the Parish of Pifo.

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“I would like to express my sincere recognition to our neighbor Quiport for the pleasant time that we have spent in the company of its President and his working team. It is the time to push for a social, cultural, and economic agenda that involves the residents of the airport area to continue building a sustainable territory.� Gina Rosero, president of the Autonomous Decentralized Government of Puembo.

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Scholarship Recipients Visit the Quito Airport On March 3, 2016, Quiport’s President and CEO, Andrew O’Brian, along with the Business Development Director, Carlos Criado, visited the Arturo Freire Elementary School, located at the Tababela parish, where they granted the first scholarships corresponding to the 2015-2016 period to a group of seven children and adolescents who study in this institution. Then, on March 11th, a group of volunteers continued to grant scholarships to another 56 students, completing the group of 63 annual beneficiaries of the David Cachago Scholarship Program. This Program was founded in 2007 to support at-risk children and youth so that they can complete their elementary and high school education.

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The event held to award the scholarships was a great success thanks to the contribution and cooperation of a group of Quiport’s employees who volunteered as guides for the scholarship recipients. They toured the airport’s facilities and became acquainted with its operation. We thank José Luis Quezada, Nelson Cárdenas, Diego Álvarez, María del Carmen Torres, Francisco Castro, Edwin Cevallos, and Joseph Bourgeat who disinterestedly devoted their time to give the first tour of the airport to the scholarship recipients.


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