Airport World, Issue 1, 2013

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In the spotlight: Cargo

Airports: Singapore Changi, DFW & Amman

Special report: Accommodating the A380

Plus: Leadership, retail & avian radar

Cargo:Time for growth

February March 2013 Volume 18 Issue 1

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OPINION

As many o you already know,the last ew years have been

particularly tough or cargo,with many o the worlds biggestoperators airports, airlines and reight

orwarders eeling the pinch in termso a dip in tra c.

The downturn in ortunes began withthe global nancial crisis o 2007-2008,which led to a two-year slump in tra c be orea mini-recovery in 2010. Since then, cargovolumes have remained more or less static.

ACIs preliminary gures or 2012 showthat while the worlds top air reight hubs,Hong Kong (HKG) and Memphis (MEM),achieved growth o 2.2% and 2.5%respectively, more than hal o the worlds30 busiest cargo gateways (57%) reporteda decline in tonnage including six o the top 10.

It was a very di erent picture in 2007, thelast really strong year or reight, when onlysix o the top 30 biggest cargo per ormers andjust one o the top 10 cargo airports postednegative results.

There were also huge regional di erencesin per ormance in 2012, with both A rica(+2.1%) and the Middle East (+4.2%) enjoying healthy upturns in volume, while Europe(-3%) reported a decline and tonnage inAsia-Paci c (+0.5%), Latin America/Caribbean(-0.2%) and North America (+0.2%) remainedabout the same.

Explaining the 2012 results, ACIseconomics director, Ra ael Echevarne,commented: Amid the signi cant downsiderisks in the Euro area and the scal deadlockin the United States throughout the year,growth in air reight came to an overall halt in2012. However, as the global economy andinternational trade picks up steam, we are

optimistic that we will see higher growth ratesor reight tra c in 2013.

Indeed, the latest ACI/DKMA orecastproduced orAirport World (see page 37)predicts that global tonnage will enjoy modestgrowth o around 3.6% per annum over thenext ve years, including an upturn o around2.9% this year.

In the light o this new ound optimismor air reight, we thought it only right that we

should turn the spotlight on cargo in our rstissue o 2013, and contemplate what possiblylies ahead or this important, yet o tenoverlooked side o the business.

As a result, in this issue we discover howthe worlds busiest cargo gateways are aring;consider the importance o supply chains;review the success o all-cargo gateways; and

round-up some o the latest cargo news romacross the globe.In addition, we hear how TIACA secretary

general, Daniel Fernandez, believes thatthe worst o cargo downturn could be over orthe international cargo industry and hopes or amore positive year ahead.

But its not all about cargo, as this issue alsohas eatures on airport gardens, intermodalism,avian radar, leadership, the A380, air eldsa ety, retail, in rastructure development and acomprehensive round-up o The Trinity Forum2013 in Abu Dhabi.

I hope you enjoy this action packed edition,and look orward to seeing you at the Economicsand Finance Con erence in SIngapore.

Airport World editor, Joe Bates,reflects on the importance of cargo to the worlds gateways.

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CONTENTS

5

3 Opinion

10 News

12 ACI news

15 View rom the topACI director general, Angela Gittens, refects on restrictive economic regulation and looks

orward to ACIs Economics & Finance Con erence in Singapore.

16 The real deal The con erence season started early this year with The Trinity Forum held in Abu Dhabiat the end o January. Joe Bates reviews some o the highlights.

20 Tall story DFW CEO, Je Fegan, talks to Benet Wilson about the airports $2.3 billion capital improvemprogramme, retirement and his legacy a ter nearly 20 years in the hot seat.

24 Asian pioneer Changi Airport Groups CEO, Lee Seow Hiang, discusses in rastructure development, customerservice and the importance o being environmentally riendly with Joe Bates.

28 Big year or AmmanJoe Bates nds out more about the new terminal that promises to create a dynamic new image

or Ammans Queen Alia International Airport.

30 Six o the bestSteven Thompson reviews the 2012 per ormance o the worlds busiest cargo gatewaysand discovers that it has been a di cult 12 months or air reight.

AIRPORT WORLD/FEBRUARY-MARCH 2013

Issue 1 Volume 18

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CONTENTS

7 AIRPORT WORLD/FEBRUARY-MARCH 2013

34 Turning the corner Daniel Fernandez, secretary general o The International Air Cargo Association(TIACA), refects on a challenging operating environment or the industry andthe prospect o a more positive year ahead.

37 ACI cargo trendsACI projects global air cargo tra c to grow by a modest 3.6% per annum until 2017.

38 Tough timesMartin Roebuck takes a closer look at the challenges and opportunities

acing a hand ul o cargo ocused airports in Europe and North America.

42 Easy owAre airports doing enough to develop multi-modal supply chains or cargo?Ian Putzger investigates.

45 Cargo newsA round-up o the latest news rom across the globe.

47 Tra fc trends: 2012 cargo statisticsACIs preliminary data or 2012 reveals a contrasting year or airports.

48 Upwards trendAn increasing number o airports are investing in vertical gardens and living walls to create a unique setting, make themselves more environmentally riendlyand, even grow their own ood, writes Robin Stone.

50 Access all areasFoster + Partners CEO, Mouzhan Majidi, talks about the importance o planning airports with user- riendly, integrated transport links and the potential bene tso the proposed Thames Estuary Airport in the UK.

54 Time or a re-think?Exambela Consultings David Feldman argues that airport leaders may need to adaptbusiness strategies to concentrate more on the mid-term or their gateways to thrivein an age o uncertainty.


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58 Land o the giantsChris Kjelgaard discovers that airports continue to upgrade theiracilities to handle the A380, six years a ter the super-jumboentered service.

62 Clear and present danger Blair Watson provides an update on the development, capabilitiesand deployment o avian radar at airports in the battle to avoidbird strikes.

67 Always watchingForeign Object Debris (FOD) detection solutions can help preventbird strikes at airports, writes Alon Nitzan.

68 Concessions newsAirport World reviews some o the latest retail and F&B projectsand developments across the globe.

71 Project watchIsrael is to build a new gateway to cope with tourism demand to Eilat.

72 ACIs World Business Partners

75 Environment news

76 The last wordAirport World catches up with Hertzs Michel Taride, whoseexecutive vice president and president role ensures he hasresponsibility or over 130 countries.

78 ACI tra fc trends


CONTENTS

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NEWS


News in brief Visiting Gibraltar Airportwill never quite bethe same again ollowing the opening o theairports swanky new terminal. Designed by3DReid and bblur architecture, the new 1mppacapacity terminal has three gates and veaircra t stands and o ers visitors impressiveviews over the air eld towards the rock.

Hali ax Stanfeld International Airportclaimsthat its new extended runway heralds the dawno a new era in air service or Atlantic Canada.The 1,700 eet extension is a potential game

changer or Hali ax as it will allow the gatewayto handle larger widebodied and heavyaircra t year-round, a development that couldsigni cantly enhance its position as a keyinternational air cargo and passenger hub.

A new $46 million airport will be built inLaos, in an attempt to attract tourists andinvestors. The new gateway will be basedin Attapeu, the southernmost province o the country, according to media reports.Phetmixay Khampakdy, director o Attapeus

Public Works and Transport Department,said the airport would be operationalby 2014.

San Francisco International Airports new$100 million, 220 t tall Landmark ControlTower will take shape over the next 18months. Hensel Phelps Construction Co andFentress Architects will serve as the design-build team or the iconic tower. It will replacethe current air tra ic control tower, which nolonger meets seismic standards.

Living legendToronto Pearsons ormer CEO, Lou Turpen, has been inducted into the Living Legends o Aviation.

The Living Legends o Aviation are de ned as aviation entrepreneurs,innovators, record breakers, industry leaders, astronauts, pilots who havebecome celebrities, and celebrities, such as John Travolta, who have becomepilots. They meet annually to recognise and honour individuals that havemade signi cant contributions to aviation, and now count ormer SanFrancisco Interntional Airport and Toronto Pearson boss, Turpen, among their number.

Turpen said: Im honoured and humbled to be in such a group o legendary aviators. Im particularly interested in helping record aviationsimportant history through the Living Library that the Legends are building.

Among his achievements, Turpen is credited with developing the rstAirport Counter Terrorism Plan used as a model by the US government.

Former ACI World board member, Turpen is currently president o the SanFrancisco Aeronautical Society, which dedicates time to preserving the history

o commercial aviation in the Paci c.

All change in Beijing and Istanbul?Major new airports in Turkey and China are a step closer to becoming areality ollowing the launch o the tender to build a new $9 billion gatewayin Istanbul and the greenlight or a new $11.2 billion airport in Beijing.

TAV, which operates Istanbuls Atatrk Airport, and Fraport haveexpressed an interest in building and operating Istanbuls new airport,which is expected to open in 2017 and have an initial capacity o 90mppa, rising to 150mppa with uture expansion.

Turkeys Transport Minister, Binali Yildirim, said: At ull capacity thenew Istanbul airport will be the largest in the world in terms o passengers.We calculate the whole project will cost more than 7 billion excluding

inancing costs.Meanwhile in China, it is being reported that green energy and

unctionality will be prioritised in the design o Beijings new airport,which will be located in the citys southern Daxing district, open in2018 and be capable o handling 70mppa by 2025.

Beijing Capital International Airport handled 81.8 million passengerslast year to cement its status as the second busiest airport in the worlda ter Harts eld-Jackson Atlanta, which welcomed 95.4 million.

Midway lease consideredThe FAA has ormally accepted the City o Chicagos preliminaryapplication to privatise Midway International Airport.

The decision means that the city is ree to pursue the option o allowing private investors to sign a lease to operate the gateway orclose to 40 years.

A statement issued by the the FAA said: The FAA has completed itsreview o the city o Chicagos revised preliminary application toprivatise Midway International Airport. The FAA has accepted therevised Preliminary Application, and the City can take the next stepsto select a private airport operator.

Chicago Mayor, Rahm Emanuel, claims that the step o delivering aPreliminary Application, timetable and dra t Request or Quali cation(RFQ) to the FAA will allow City o cials to gain a better understanding o market conditions and revenue generation possibilities or thepotential lease o Midway Airport. A previous 2009 attempt to privatiseMidway ailed at the last minute when the winning bidder, the MidwayInvestment and Development Corporation (MIDco), ailed to secure the

nancial backing to push through a $2.5 billion deal.


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Dubai opens new A380 concourse

Dubai International Airport (DXB) has success ully completed the opening o Concourse A, the worlds frst purpose-built acility or the A380. Concourse A is avital element o our $7.8 billion investment in the continued expansion o DXBwhich will see it become the worlds busiest airport or international passengertra fc by the end o 2015, enthuses Dubai Airports CEO, Paul Gri fths.


NEWS

11

A new economic impact study conducted bythe Arizona State University WP Carey Schoolo Business ound that thePhoenix Sky Harbor Airport system had a $28.7 billion impact onthe Phoenix area economy in 2011. It states thatair travel and tourism supports nearly 250,000jobs locally with a payroll o $10 billion.

Copenhagen Airports loyalty programme hasreached a quarter o a million members in justover a year. CPH Advantage now has 250,000members a ter 13 months. The programmeo ers ree Wi-Fi, bonus points and special

parking o ers. Carsten Nrland, VP, sales andmarketing or Copenhagen Airport, said: Theprogramme has given us an opportunity toget to know our passengers even better andthereby give our core customers products andservices tailored to their needs.

A consortium comprising TAV Airports andAroports de Paris (ADP) has declared aninterest in running New York LaGuardias(LGA)planned new $3.6 billion Central TerminalBuilding (CTB). The Port Authority o New Yorkand New Jersey (PANYNJ) issued a Request

or Quali cations (RFQ) in October last yearor construction and operation o the planned

new terminal.

The TSA has revealed that more than1,500 rearms were discovered by screeners atsecurity points at US airports last year. The gureis up on its 2011 total, when 1,320 rearms were

ound. Many o the weapons were loaded, andsome even had rounds in the chamber, the TSAsaid. Hartsfeld-Jackson Atlanta International Airport ound the most, with 80 guns being

ound in the rst 11 months o the year.

For daily news updates, visit www.airport-world.com

London Stanstedsale confirmedHeathrow Airport Holdings Limited has agreed to sell its100% interest in Stansted Airport to Manchester AirportsGroup or 1.8 billion.

Colin Matthews, chie executive o Heathrow, said:We wish the new owners every success and arecon dent the airport will fourish. We will continueto ocus on improving Heathrow, Glasgow, Aberdeenand Southampton airports.

The deal e ectively completes the break-up o BAA,which was ordered to sell Stansted, Gatwick and a Scottishgateway (Edinburgh) by the UKs Competition Commissionto end its perceived airport monopoly in the UK.

Its remaining airports now operate under

individual brands.

Dohas datewith destinyThe rst phase o Qatars new $15.5 billion HamadInternational Airport is set to open on April 1.

Qatar Airways will operate the gateway, which willinitially serve 12 legacy and low-cost carriers, be oreQatars national fag carrier moves its entire operation tothe gateway in the second hal o the year.

As a result, Doha will have a dual airport operationuntil ull operations begin at Hamad International in thesecond hal o 2013.

Qatars Civil Aviation Authority (QCAA) chairman,Abdul Aziz Al Noaimi, said: Hamad International Airportwill truly be a global showpiece that the State o Qatarwill justi ably be proud o .

The HOK designed 600,000sqm, three-level

passenger terminal, will initially be equipped to handleup to 28mppa.Qatar Airways CEO, Akbar Al Baker, said: This is an

historic year or the State o Qatar, Qatar Airways and thecountrys young aviation industry.

Ambitious Vinci eyes more assetsVinci is reportedly looking or more airport concessions a ter beating o rival bids romLatin American, German and Swiss-led groups to win the tender or Portuguese airportoperator, ANA.

Vinci Airports, which operates Cambodias three international gateways and10 regional airports in France, success ully bid 3 billion or a 95% stake in ANAlate last year.

In return or its outlay ANA employees hold a 5% shareholding Vinci has beenawarded a 50-year concession to run Portugals airports, which include Lisbon, Portoand Faro as well as gateways in the Azores and Madeira.

And it appears as i the French-based group is eager or more. Vincis chairman andCEO, Xavier Huillard, recently admitted that it would consider bidding or more airportconcessions with an investment partner.

We will continue to look at other plat orms, but not alone because we need to payattention to our debt level, Xavier Huillard told reporters.

With the acquisition o ANA, Vinci expects that the airport business will boost its

annual revenue to 600 million with operating pro ts o around 270 million.
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CI WORLD NEWS


ACI welcomes new noise standard A new standard that will require improved noise per ormance rom newlycertifed aircra t types was agreed at the Ninth Meeting o ICAOs Committeeon Aviation Environmental Protection (CAEP) on February 7.

The agreement will mean that rom 2017, new large civil aircra t types willneed to be at least 7 EPNdB (E ective Perceived Noise in Decibels) quieterthan the current Chapter 4 standard.

This is only the ourth new noise standard in the history o theInternational Civil Aviation Organization (ICAO).

All civil aeroplanes and helicopters built today are required to meet noisecertifcation standards set out in Annex 16 to the Chicago Convention andadopted by the Council o ICAO.

Angela Gittens, ACIs director general, said: ACI welcomes this importantstep orward by ICAO in agreeing to a new aircra t noise certifcation standardNoise standards are vital to airport and aviation industry e orts to operateand grow responsibly and sustainably.

Airports need to work constructively with the communities aroundthem and noise standards must respond to the voices o thosecommunities in order that airports obtain their permission to operateand grow.

ACI looks orward to uture ICAO standards being introducedmorerequently, which could also provide an incentive or research and

development into aircra t noise reduction technology.

Mixed 2012 tra fc ortunes or ACI regionsGlobal passenger tra c increased by 3.9% in 2012, according to ACIspreliminary tra c gures or the year. It was once again a year o regional contrasts, with many emerging market airports posting healthyupturns in passenger tra c while the worlds top international airportsin North America and Europe recorded more modest gains.

Double-digit growth rates in passenger tra c were observed inIstanbul (IST; 20.2%), Jakarta (CGK; 14.4%), Dubai (DXB; 13.2%) andBangkok (BKK; 10.6%) in 2012.

Moderate growth o 2.5% was observed in December o 2012 asdomestic passenger markets recoiled in Europe, Latin America, A ricaand North America. Conversely, the Middle East and Asia-Paci cpersistently post strong gains in international passenger tra c withgrowth o 12.3% and 9.0% respectively or the month o December.

As the global economy and international trade picks up steam weare optimistic to see higher growth rates or both passenger and reighttra c in 2013, says ACIs economics director, Ra ael Echevarne.

James Roach provides a round-up of the latest ACI news from across the globe.World inmotion

Young Aviation Professionals ProgrammeACI has signed a Memorandum o Understanding with ICAO and IATAestablishing the global Young Aviation Pro essionals Programme.

The programme is designed to attract well-quali ed young aviation pro essionals who have an interest in international civilaviation policy development, and bring them to Montral to workwith the three organisations.

ACI is proud to work alongside ICAO and IATA as we continue to

develop pro essionalism in the industry, said ACI Worlds directorgeneral, Angela Gittens.The global aviation business is becoming more complex, and or

the rst time this will give the best and the brightest an opportunityto participate in its uture development rom three perspectives.

Applications or the Young Pro essionals Programme will beaccepted beginning early in 2013 and the selected candidates willwork or our months each at ACI, IATA and ICAO.

They will contribute to work programmes relating to aviation sa ety,security and environment ocusing on the inter-relationships betweenregulatory activities and the airport and airline industries.

The programme pairs well with the success ul Airport Management

Pro essional Accreditation Programme (AMPAP), which is a strategicinitiative o ICAO and ACI launched in 2007.AMPAP is available to airport executives around the globe and

graduates earn the prestigious designation o International AirportPro essional (IAP).


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ACI WORLD NEWS

ACI offices

ACI World Angela Gittens,Director GeneralPO Box 302800 Rue du Square VictoriaMontral, Quebec H4Z 1G8Canada

Tel : +1 514 373 1200Fax : +1 514 373 [email protected]

ACI Fund or Developing Nations AirportsAngela Gittens,Managing Directorc/o Geneva,SwitzerlandTel: + 1 514 373 1200

Fax: +1 514 373 1201aci [email protected]

ACI Asia-PacifcPatti Chau,Regional DirectorHong Kong SAR, ChinaTel: +852 2180 9449Fax: +852 2180 9462in [email protected]

ACI A ricaAli Tounsi,Regional SecretaryCasablanca, MoroccoTel: +212 619 775 101atounsi@aci-a rica.aerowww.aci-a rica.aero

ACI EuropeOlivier Jankovec,Director GeneralBrussels, BelgiumTel: +32 (2) 552 0978Fax: +32 (2) 502 [email protected] www.aci-europe.org

ACI Latin America & CaribbeanJavier Martinez Botacio,Director GeneralQuito, EcuadorTel: +593 2294 4900Fax: +593 2294 [email protected]

www.aci-lac.aero

ACI North AmericaGreg Principato,PresidentWashington DC, USATel: +1 202 293 8500Fax: +1 202 331 [email protected] www.aci-na.org

ACI represents 580 members operating 1,650 airports in 179 countries and territories, which handle more than 4.65 billion passengers, 82.8 milliontonnes o cargo and 64.4 million aircra t movements yearly. ACI is the international association o the worlds airports. It is a non-pro t organisationthe prime purpose o which is to advance the interests o airports and promote pro essional excellence in airport management and operations.

ACI events

September 22-25

ACI North America Annual Con erence& ExhibitionSan Jose, USA

2013 2013

May 13

Aviation &EnvironmentWorkshopMontral, Canada

June 10-12

ACI World AnnualGeneral Assembly

ACI Europe Congress &ExhibitionIstanbul, Turkey

2013

April 22-25

ACI Asia-PacifcRegional Assembly,Con erence &ExhibitionPhuket, Thailand

2013

April 24-26 Airport Cities WorldCon erence &ExhibitionEkurhuleni,South A rica

2013

March 6-8

Economics &Finance Con erenceSingapore

2013

AIRPORT WORLD/FEBRUARY-MARCH 2013 13


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ACI director general, Angela Gittens, reflects on restrictive economic regulation andlooks forward to ACIs Economics & Finance Conference in Singapore.

View from the top

In my presentation or The Aviation Industry Leadership Forum atCANSOs World Air Tra c Management Congress in Madrid inFebruary, I underlined the rapid changes made or encountered

by other industries such as banking, personal computing,communications and manu acturing.The continued health and success o the survivors in these

industries have squarely rested on their timely responses to disruptivetechnology and market orces. As Charles Darwin noted in the 19thcentury, physical survival o a species depends most on the organismsagility in adapting to changes in the external environment.

We have seen that the airport industry is not immune to the basiclaws o evolution, yet many airports are hobbled by the kind o economic regulation more suited to utility with a captive audience thanan air service competitor in a global marketplace.

On the theme The Keys to Financial Success or Airport Operatorsin a Changing Environment, ACIs 5th annual Economics andFinance Con erence is rooted in charting the way orward or airportsto evolve and nancially thrive in their partnerships with governments,regulators and investors.

The reality that underlines the con erence is the need to develop andnance the expansion o airport in rastructure in light o orecasts that

passenger tra c will double by 2030. This requires co-operation and a

re orm o government regulations on airport nancing, the adoption o modern commercial business practices and success ul strategies orairports to attract and retain the interest o the investment community.

Solid economics and nancials are essential to run success ulenterprises. Beyond the role o airports as international gateways ortourism and trade, airports must sa eguard their role in theircommunities as leading employers, engines o socio-economic vitalityand drivers o community development.

The topics and speakers at the Economics and Finance Con erencehave been care ully selected to provide the tools necessary to helpairports thrive. It takes place in Singapore this year to refect thegrowing signi cance o the Asian aviation and nancial markets,as the region takes its right ul place in the worlds economic domain.

While planning the Economics and Finance Con erence, we alsolook orward to seeing many o you in Istanbul on June 10-12 or the ACIEurope/World Annual General Assembly, Congress and Exhibition.AW

ACI VIEWPOINT

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The conference season started early this year with The Trinity Forum held in Abu Dhabi at theend of January. Joe Bates reviews some of the highlights.

Thereal dealT he Trinity Forum where airports, retailers and brands gettogether to discuss the challenges and opportunities acing theindustry rarely disappoints, and this years event in AbuDhabi was no exception.

Indeed, with a host o top drawer speakers, announcements,call or a new retail education programme and rustrations romsome retailers that concession contracts are still too heavily weightedin avour o airport operators, it was almost compulsive viewing or

the 300 delegates in attendance.Hosted by Abu Dhabi Airports Company (ADAC) at the YasViceroy Hotel and International Media Centre next to the Yas MarinaCircuit, the theme or this years event was Thought Leadershipin Travel Retail.

In his opening address, ADACs chie commercial o cer,Mohammed Al Bulooki, talked about the phenomenal growth o Abu Dhabi International Airport (AUH), which has experienced a 64%rise in passengers and a 90% rise in turnover since 2009 as it hasgrown rom a gateway handling 9.7 million passengers annually to amid-size hub accommodating 24mppa.

He also outlined his companys development plans or the new50 metre high Mid eld Terminal Building (MTB) and refected on thecontinued growth o the travel retail industry, predicting that ADACsconcessions income will almost double to over $400 million by 2017when the new terminal opens.

Al Bulooki enthused: The Mid eld Terminal project is one o the largest aviation in rastructure projects in the world and will acilitate thegrowth o the capital o the UAE and its national carrier, Etihad Airways.

This industry has proven long ago to be a strong growing business.In 2011, the worldwide duty ree business reached $46 billion inrevenue, and the anticipated growth rate or 2012 was 5% to 10%.With ADAC plans or the MTB being realised, hosting this Forum is a keystep towards the delivery o a state o the art 700,000sqm terminal that

will host the worlds best retail o er in 2017.Abu Dhabi Duty Free retail accounted or a record $220 million(+24%) o the industrys global sales in 2012, its per ormance being boosted by AUHs near 20% rise in passenger numbers.

Al Bulooki, who revealed that concession tenders or the newterminal are expected to be issued in Q1 2014, said Abu Dhabis strong per ormance was the result o an increase in both the passenger spendand average transaction value during 2012.

ACI director general, Angela Gittens, refected on the importanceo non-aeronautical revenues to airports, revealing that they werenow a vital component in the economics o airports.

Development o commercial revenues has been highly dependenton two key actors, said Gittens. First, the evolution o the airportsector rom a public utility to a commercialised, and in some casesprivatised industry, has given airports greater reedom, expertise andmotivation to exploit the commercial opportunities.

EVENT NEWS: THE TRINITY FORUM


17/21 AIRPORT WORLD/FEBRUARY-MARCH 2013 17

Secondly, is the pressure rom the airlineindustry and growing government economic regulation or airports tocontain prices or aeronautical services. The money to operate,maintain and develop the airport has to come rom somewhere.

She noted that non-aeronautical activity largely driven byretail now accounts or 43% or $46 billion o global airport revenuesper annum, with A rican, Asia-Paci c and European airports earning around 40% o their non-aviation related income rom shops andF&B outlets.

And, she made it clear that ACI opposes any regulation that stifesthe fexibilty o airports to be commercially minded and responsive to

their customers, arguing that this would, in turn, damage regional andeven national economies.The diversi cation o revenues improves resiliency and nancial

viability o airports. This is why ACI is actively working to send the rightmessage to ICAO and national regulators that regulation o non-aeronautical revenues goes against the best interests o the airtransport industry, stated Gittens.

Making his maiden industry speech at the con erence, DFS Groupschairman and CEO, Philippe Schaus, urged brand owners, retailers andairports to aim higher than the High Street and the malls in thequality o execution and service, noting the commoditisation o shopdesigns and customers.

Even we, as retailers, are becoming commoditised as we climbover one another to sell ourselves as the best operation while o tenunder-serving the customer, when in act there is no greatdi erentiation between operators, warned Schaus.

He added: The industry needs leadership, re nement, multi-sensory experiences, creativity and more audacity. Lets be obsessedby being di erent.

An example o the Trinity at work was provided by HeathrowAirport, which in collaboration with retailer World Duty Free Group andthree brand providers Nestl International Travel Retail, Diageo andP&G Prestige planned, designed, built and opened a temporaryValentines Day store at the UK gateway.

Their collaboration which resulted in the creation o the Make itSpecial on Us store in Heathrows Terminal 5 was the direct result o a challenge issued at last years Trinity Forum to see i it was possible

or an airport, retailer and multi-brands to work together in such a way.Roland Stieger (commercial director, Nestl International Travel

Retail); Peter Jacobson (commercial director global travel and MiddleEast, Diageo); Murat Akyildiz (director global distributor and travelretail, P&G Prestige); Muriel Zingra -Shari (retail concessions directoHeathrow Airport Limited); and Eugenio Andrades (chie commercialo cer, World Duty Free Group) all admitted that working together on aproject or the rst time that gave joint exposure to each brand wasnot an easy task.

It involved over 200 emails and 40 hours o meetings and callsbetween the di erent stakeholders, 80 man-hours o training and10 di erent brie s or creative output just to make it happen.

And the project came at quite a price or the participants around 290,000, Heathrow stumping up 145,000 and theothers around 40,000 each.

So what did they learn rom the project they nicknamed Trinity Plusand, would they do it again? Zingra -Shari said: I think it is anexperiment we could look to repeat i the circumstances were right.

This double Trinity event has proven to be the catalyst totrans orming Heathrow rom being a host or retail activity to a initiatoro commercial opportunities in our own right.

Through this initiative, we were able to use our physicalterminal space, our in-house promotional teams and marketing resources as the plat orm or the creation o a brand newpassenger experience.



18/21 AIRPORT WORLD/FEBRUARY-MARCH 201318

Diageos Jacobson added: We are proud to haveparticipated in and contributed to this rst multi-

aceted Trinity project. We have certainly learned somekey lessons.

First, such an undertaking requires strong leadershipwith clear decision making authority. Secondly, it calls ora speci c and measurable outcome grounded in aproposition that resonates or the traveller and, whicheach o the partners can buy into rom the start.

And nally, staying resolute to the possibility requires acommitment to the vision, patience, and strong relationships.

Other topics on the table during the two-day event includedwhether airports and their partners were doing enough to deliver asense o place, and the importance o benchmarking airportcommercial revenues and service quality.

ACIs director o economics and programme development,Ra ael Echevarne, told delegates that ACIs annual Airport ServiceQuality (ASQ) survey shows that airports can boost retail/F&B revenuesby getting the simple things right such as the cleanliness o toiletsand ambience o terminal buildings.

He also revealed: Most passengers have no intention o buying

anything at an airport, but they dont make a purchase because theycannot nd what they want.They are actually happier with the service they get in shops

than the products in them. This is something that airports need tothink about.

He closed by reminding retailers and F&B providers not to orgetthe potential o small airports.

Other contributions included a rallying cry rom OTG ManagementsCEO, Rick Blatstein, or the industry to be spectacular and useinteractive technology to innovate, while a lively and highly entertaining presentation rom SimpliFlyings CEO, Shashank Nigam, le t airports inno doubt that they would miss out on revenue and passengers i they

ailed to embrace social media.Also making a plea was Dag Rasmussen, president and CEO o

Lagardre Services, who called or the establishment o a neweducational plat orm where airports, retailers and suppliers could

be trained about how to operate in an industry where close co-operationand understanding between all three stakeholders is a necessity.

In line with this, he told delegates that they had to keep the Trinityideals top o mind and work with each other throughout the year andnot just at the annual con erence. He labelled the new mentalityneeded as Trinity 365.

Arguably aviations most prestigious global travel retail con erence,the event is jointly organised byThe Moodie Report and ACI World.

Refecting on the tenth Trinity Forum, host and ounder, MartinMoodie, admitted: We have come an incredibly long way on thisjourney, but there is clearly a lot more to be done.

In other news rom the Trinity Forum, ADAC announced that it had

signed a ve-year contract with Duty Free Shoppers (DFS) to manageand operate Abu Dhabi Duty Free, until the end o 2017.And, although not retail related, ACI announced that ADAC had

become the latest airport to join its Airport Excellence (APEX) inSa ety programme.

At a press con erence held at The Trinity Forum, ACI director general,Angela Gittens, said: We are delighted to have ADAC on board. The ultimategoal o the programme is to improve sa ety. This is done by collaborating withother industry partners in a peer review process to identi y and resolve anyvulnerabilities and sharing data and best practices.

Earlier, Gittens had presented Airport Service Quality (ASQ) Assuredawards to ADAC and Dammams King Fahd International Airport.

It certainly was an action packed Trinity Forum, and next yearsevent promises to be even more exciting with the event hosting ACIsASQ Awards or the rst time.

Where do we sign up?


AW


19/21
http://www.airport-leadership.com/http://www.parsons.com/


20/21

Aviation will literally lose one its biggest personalities onSeptember 1 when Dallas/Fort Worth International AirportsCEO, Je Fegan who stands an imposing 6 t 3 tall retiresa ter clocking up close to 30 years at the Texas gateway.He joined DFW as chie planner in December 1984 and was

promoted to assistant director be ore taking up the role o CEO in

February 1994, so Fegan has e ectively been the ace o the airport andits driving orce or a generation.His successor will undoubtedly have big shoes to ll (size 12s,

actually), although Fegan modestly plays down his achievements,pointing out that there is still much to be done at DFW.

It is hard to argue with that, as DFW is currently in the second year o its seven-year, $2.3 billion Terminal Renewal and Improvement Program(TRIP) and has big ambitions or the uture.

Indeed, such is the ambition o the airport, that it decided to startthe project when the US economy was still in recession, making itharder to und.

The airport also happened to be in negotiations or a new useagreement with its airlines, so Fegan reveals that the airport tied theproject and the agreement together and made a case to renovatebuildings that were almost 40 years old.

We told them we were operating 40-year-old buildings with40-year-old technology, maintenance, energy e ciency, baggagesystems, parking structures and security checkpoints, he admits.

Also, the old parking structures relied heavily on stairs, he adds,making it di cult or passengers carrying a lot o luggage.

Our board o directors decided that there was no point in waiting,as rom their and the publics perspective, everyone was so impressedwith the work done on Terminal D, that they elt we should do the other

terminals to the same quality, says Fegan.Our biggest challenge was to work with our tenant airlines to workthrough the renovation agreement.

Fegan reveals that almost 70% o the TRIP budget is being spent onbehind the scenes in rastructure such as cooling and heating systems,IT, electrical systems and plumbing.

He is also quick to point out that the airlines 100% support TRIP,noting that a strong partnership is important, as DFW and its airlinecustomers are in this together.

They recognised the need or improvements, remarks Fegan.As we negotiated, we laid out a 10-year nancial plan under the useagreement. They saw where the costs and revenue would be and theybelieved it was a good investment.

And, he is con dent that the design o the airport and its terminalswill ensure the minimum o disruption to airlines and, perhaps moreimportantly rom an image point o view, the travelling public.


AIRPORT REPORT: DALLAS/FORT WORTH

DFW CEO, Jeff Fegan, talks to Benet Wilson

about the airports $2.3 billion capitalimprovement programme, retirement and hislegacy after nearly 20 years in the hot seat.

Tall story


21/21

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In the spotlight: Cargo Airports: Singapore Changi, DFW & AmmanSpecial report: Accomodating the A380

Plus:

Leadership, retail & avian radar

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Airport World, Issue 1, 2013