GATWICK AIRPORT LONDON
TRANSPORT TECHNOLOGIES & OPERATIONS MANAGEMENT
A HOME ASSIGNMENT
By
AIVINHENYO IMUENTINYAN
March 30, 2012
GATWICK AIRPORT
Table of Contents
...................................................................................................................................................................... 0
1.
INTRODUCTION ..................................................................................................................................... 2
2.
OWNERSHIP STRUCTURE ...................................................................................................................... 3
3.
DEVELOPMENT HISTORY (YEAR 2000 – DATE)...................................................................................... 4
4.
OPERATIONS ......................................................................................................................................... 5
5.
6.
4.1
TERMINAL TRANSFER .................................................................................................................... 5
4.2
MAJOR AIRLINES & FLIGHT STATISTICS......................................................................................... 6
TRAFFIC ................................................................................................................................................. 7
5.1
Passenger & Freight (Year 2000 – 2011) ....................................................................................... 7
5.2
Traffic Forecasts ............................................................................................................................ 7
FUTURE DEVELOPMENTAL PLANS ........................................................................................................ 9
6.1
7.
CONSULTATIVE STRUCTURE & CAPITAL INVESTMENT ....................................................................... 10
7.1
8.
Additional Terminal & Runway ..................................................................................................... 9
STRATEGY .................................................................................................................................... 10
SUGGESTIONS ..................................................................................................................................... 11
APPENDIX 1 ................................................................................................................................................. 12
APPENDIX 2 ................................................................................................................................................. 13
REFERENCES ................................................................................................................................................ 15
1|Page
GATWICK AIRPORT
1.
INTRODUCTION
Gatwick is one of the top ten international airports in the world and it is London's second
largest International airport and second busiest by total passenger traffic in the United
Kingdom after Heathrow1. The London Gatwick Airport opened in 1958 with just over 186,000
passengers passing through the airport in the first year of operation. Fifty-four years down the
line, the story is now quite different. Today, it opens its doors 24hrs a day, 365 days a year with
up to 32million passengers served annually. Around 90 carriers operate from the airport
including British Airways, EasyJet, Emirates,
Monarch, Thomas Cook, Thomson and Virgin.
Furthermore, Gatwick is Europe's leading
airport for point-to-point flights, and has the
world's busiest single-use runway averaging 52
aircraft movements an hour. Its two terminals –
North and South – cover an area of 810,000
square feet (75,000 square meters) and 1.3
million sq. ft. (120,000 m2) respectively. In
2011, over 33.6 million passengers passed through Gatwick.
Image source: http://showbizxklusivs.blogspot.pt/2010/07/nigerian-tycoon-buys-uks-gatwick.html
1
www.gatwickairport.com
2|Page
GATWICK AIRPORT
2.
OWNERSHIP STRUCTURE
Gatwick Airport came under a new ownership in December 2009 when it was sold by BAA. It has also
undergone some restructuring in ownership between years 2009 and 2012. It is currently owned by a
consortium through a number of UK and overseas holding companies and limited liability partnerships.
On 10 February 2011, as part a refinancing, the Company acquired a subsidiary, Gatwick Funding
Limited which is incorporated in Jersey.
On 2 March 2011, also as part of the refinancing, Ivy Bidco Limited, the immediate owner of the share
capital of the Company, transferred those shares to Ivy Holdco Limited, its wholly-owned subsidiary.
The consortium that ultimately owns the Gatwick Airport currently comprises the following parties:
Global Infrastructure Partners (GIP), The Abu Dhabi Investment Authority (ADIA), The California
Public Employees' Retirement System (CalPERS), National Pension Service of Korea (NPS) and the
Future Fund Board of Guardians (Future Fund) 2.
Below are the respective percentage held by these organizations in the consortium.
Ownership
Global Infrastructures
Partners
17.23%
41.95%
12.14%
12.78%
15.90%
The Abu Dhabi
Investment authority
The California Public
Employees' Retirement
System
National Pension Service
of Korea
Fig 1 Gatwick ownership proportions
2
Gatwick Airport Limited- Report and Financial statement for the year ended 31 March 2011
(www.gatwickairport.com)
3|Page
GATWICK AIRPORT
3.
DEVELOPMENT HISTORY (YEAR 2000 – DATE)
Since the beginning of the 21st Century, the Gatwick Airport has undergone a lot of changes both in the
Airport infrastructures aspect and the operations. Some of the notable changes are noted below;

Between Years 2000-2001, Gatwick’s two terminals (the North and South terminals) were
expanded to add more seating, retail space and catering outlets, at a total cost of £60million. This
included an extension to the North Terminal departure lounge completed in 2001.3

In 2005, a £110 million additional aircraft pier (Pier 6) was opened, adding an extra 11 pierserved aircraft stands. Linked by the world's largest air passenger bridge to the North Terminal's
main building, it spans a taxiway, giving arriving and departing passengers views of the airport
and taxiing aircraft. The same year, an extension and refurbishment to the South Terminal's
baggage reclaim hall was completed, doubling it in size.

May 2008; Another extension was completed to the South Terminal departure lounge. In
addition, a second-floor security search area opened. This terminal is now mainly used by lowcost airlines. Many former users have moved to the newer North Terminal.

In 3rd December 2009, the transfer of Gatwick’s ownership from BAA limited to Global
Infrastructure Partners became effective.

February 2010: It was reported that GIP sold minority stakes of 12% and 15% to South Korean
National Pension Service and Abu Dhabi Investment Authority, for £100 million and
£125 million, respectively. These were sold in Gatwick's – rather than GIP's – name. The sale of
these stakes is part of GIP's strategy to syndicate the equity portion of the original acquisition by
issuing bonds to refinance bank debt. Although this entails bringing in additional investors in the
airport, GIP aims to retain management control.4

In 22 June 2010, Gatwick Airport Limited launched a new competitive brand featuring the
tagline, “YOUR LONDON AIRPORT- Gatwick” alongside a rebrand from “London Gatwick
Airport” to the Original “Gatwick Airport”. Created by advertising agency Lewis Moberly, the
new blue-and-white corporate identity is intended as a challenger brand to BAA and aims to
differentiate Gatwick from rival Heathrow in support of majority owner GIP's corporate goal to
establish Gatwick as London's airport of choice for passengers and airlines5.
3
http://www.enotes.com/topic/Gatwick_Airport
4 Abu Dhabi lands 15% stake in Gatwick for £125m", The Times, 4 February 2010
5
Reals, Kerry (21 June 2010). "Gatwick Airport drops 'London' brand ahead of £1bn revamp". Air Transport Intelligence (Flight global)
4|Page
GATWICK AIRPORT
4.
OPERATIONS
Gatwick operates as a single runway airport. It has two runways; however, the northern runway
(08L/26R) can only be used when the main runway (08R/26L) is out of use, for example because of
maintenance or an accident. The runways cannot be used at the same time because there is not enough
separation between them, and during normal operation the northern runway is used as a taxiway. 6 It can
take 15 minutes to change from one runway to the other.
The main runway operates with a Category III Instrument Landing System (ILS). The northern runway
does not have an ILS and, when it is in use, arriving aircraft use a combination of Distance Measuring
Equipment and assistance from the approach controller using surveillance radar, or where equipped and
subject to operator approval, an RNAV (GNSS) Approach, which is also available for the main
runway. On all runways, considerable use is made of continuous descent approach to minimize
environmental effects of incoming aircraft, particularly at night. 7
Night flights are subject to restrictions. Between 11 pm and 7 am the noisiest aircraft (rated QC/8 and
QC/16) may not operate. In addition, between 11.30 pm and 6 am (the night quota period) there are three
limits:

An overall limit on the number of flights;

A Quota Count system which limits the total of noise permitted, but allows operators to choose to
operate fewer noisy aircraft or a greater number of quieter planes.

QC/4 aircraft may not operate at night.
4.1
TERMINAL TRANSFER
Gatwick Airport's North and South terminals are connected by a
0.75 mi
(1.21 km)
elevated
two-way automated
people
mover track. The shuttle system is normally operated by two
automatic,
three-car
driverless
train
vehicles.
Although
colloquially referred to widely as a "monorail", the shuttle system
runs on a dual concrete track with rubber tires and is not
technically a monorail.
6
Gatwick Airport History", Business & Community Reference Guide for in and around Crawley 2008/09, Wealden
Marketing, 2008, p. 85
7
BAA Gatwick (PDF). Flight Evaluation Report 2006/07
5|Page
GATWICK AIRPORT
4.2
MAJOR AIRLINES & FLIGHT STATISTICS
In 2010, EasyJet, British Airways (BA), Thomson Airways, Monarch Airlines and Thomas Cook
Airlines were Gatwick's five biggest airlines, in terms of passengers carried. Amongst these, BA and
EasyJet were its two dominant resident airlines.
Passenger volumes by airline (2010/11)
Airline
% of Total
easyJet
35%
British Airways
14%
Thomsonfly
9%
Monarch
6%
Thomas Cook Airlines
6%
Virgin Atlantic
5%
Ryanair
5%
Flybe
4%
Norwegian Air Shuttle
3%
Aer Lingus
2%
Emirates
2%
Other
9%
All Airlines
100%
Data Source: GAL (http://gatwickmasterplan.co.uk)
Fig 2
Also the flight statistics for all flights (as at 2011) are represented below;
Fig 3
Data extracted from http://www.gatwickairport.com/business/about/facts-figures/#fact2
6|Page
GATWICK AIRPORT
5.
TRAFFIC
5.1
Passenger & Freight (Year 2000 – 2011)
The total passenger and freight traffic through the Gatwick airport from 2000-2011 is as shown below.
From the data, it could be observed that year 2007 has witnessed the highest ever passenger traffic. The
was a steady growth in traffic between year 2002 – 2007, followed by a steady decline between 2007 and
2010. However, a considerable growth was observed between 2010 and 2011.
Details are as shown;
Source: UK Civil Aviation Authority
5.2
Traffic Forecasts
In 2011, SH&E, a leading aviation consultancy company, was consulted to update the views on traffic
forecasts for Gatwick.8 The forecasting approach takes into account the major drivers of aviation demand
and supply in the London market and apportions Gatwick estimated share.
The forecast were developed for three scenarios: Low, Base and High case.

LOW CASE FORECASTS:
SH&E’s Low Case represents a set of negative yet conceivable circumstances, whereby the rebound
from the recent downturn is slow and prolonged, and the long term average rate of growth is
weakened by economic volatility and potential negative shocks to demand.
8
http://gatwickmasterplan.co.uk/read-the-full-text/gatwick-traffic-characteristics-and-forecasts/
7|Page
GATWICK AIRPORT

BASE CASE FORECASTS:
The Base Case represents SH&E’s most likely forecasts, taking a balanced view of demand and side
factors driving future traffic volumes at Gatwick. Over the long term, a GDP elasticity of around
unity was assumed in the base case, reflecting an ongoing link to economic growth, but also
increasing market maturity and a combination of negative influences on demand, such as increasing
air travel costs relative to other modes.

HIGH CASE FORECASTS:
The High Case illustrates the volumes that may be expected if a more positive set of circumstances
materialize, representing an optimistic but achievable growth path. In this scenario, a robust near-term
rebound is assumed, coupled with ongoing successes in attracting new carriers and routes to Gatwick
following development of a stronger air service marketing approach. This case was considered
appropriate for the purposes of capacity planning, as it provides an indication of the maximum likely
traffic volume at Gatwick over the Planning Horizon.
Based on the above scenarios, forecasts for passenger traffic and aircraft movement were developed
till year 2019. Details in presented in the next page.
Fig. Traffic forecasts for Base, Low and High scenarios.
Data Source: 2011 Capital Investment Program for Gatwick (published Jan 2012)
8|Page
GATWICK AIRPORT
6.
FUTURE DEVELOPMENTAL PLANS
6.1
Additional Terminal & Runway
Several options to expand Gatwick have been considered, including a third terminal and a second
runway to the south of the existing runway. This would allow Gatwick to handle more
passengers than Heathrow does today. If a second wide-spaced (as opposed to close parallel)
runway is approved, a new terminal could be sited between the two runways. This could either
complement or replace the current South Terminal, depending on expected future traffic
developments8.
A less ambitious alternative also considered was to extend the North Terminal further south, with
another passenger bridge to an area currently occupied by aircraft stands without jet bridges (Pier
7).9 There are also plans to expand the capacity of the North Terminal and to extend Pier 6.
However, the building of a second runway for the foreseeable future has been ruled out by the
management of the Gatwick Airport, citing the high cost of the associated planning application –
estimated to be between £100 million and £200 million – as the main reason for the new owners'
lack of interest. At that meeting, Gatwick chief executive Stewart Wingate stressed GIP's
preference for increasing the existing runway's capacity and confirmed GIP's plans to request an
increase in the current limit on the permitted number of take-offs and landings.
In October 2010, Gatwick Airport Limited received planning permission from Crawley Borough
Council to adapt both terminals to handle the Airbus A380 on a regular, commercial basis.
9
"interim master plan (Gatwick Interim Master Plan – October 2006)
9|Page
GATWICK AIRPORT
7.
CONSULTATIVE STRUCTURE & CAPITAL INVESTMENT
There is a consultative structure developed for the Capital Investment Program (CIP) of Gatwick. The
projects or programs that will be subject to individual consultation will be agreed by stakeholder program
boards or via the JSG/JST10. These will, as a minimum, be those projects with triggers attached and
should be selected after consideration has been given as to how best to utilize airline and airport resource
to facilitate this consultation without compromising the delivery of the overall plan.
Source: Gatwick Airport Performance Report 2011 (www.gatwickairport.com)
7.1
STRATEGY
There is a five-step approach that is being adopted at Gatwick to formulate the strategic choices
that are made at the Gatwick. The process is an iterative process that is regularly reviewed.
The process steps are:
10

Step 1 – Agree the traffic drivers

Step 2 – Agree the service level inputs

Step 3 – Agree the capacity assessments

Step 4 – Agree the development options

Step 5 – Agree recommended options
JST –Joint Steering Group
10 | P a g e
GATWICK AIRPORT
Source: Gatwick Airport Performance Report 2011 (www.gatwickairport.com)
8.
SUGGESTIONS
The Gatwick Airport, despite its being the second largest in London in terms of traffic, still has huge
potential for growth. Two key things I would implement in this airport to gain more market share in the
London would focus on improvement of the level of service currently obtained in the airport and
providing enough capacity to accommodate increase in demand. The main objective would be to make
Gatwick the airport of choice, not only to passengers but also for airlines.
The major decisions would be;

Incorporating the Airlines into the decision making and investment plans.

Embark on projects such as improving the ease of access between various areas in the terminals.

Increase the capacity in the check-in, arrivals and baggage reclaim areas in the terminals.

Invest more in people, processes and technology as these are usually the key drivers of an
efficient system.
11 | P a g e
GATWICK AIRPORT
APPENDIX 1
Gatwick Airport Layout
North Terminal
12 | P a g e
GATWICK AIRPORT
APPENDIX 2
13 | P a g e
GATWICK AIRPORT
Image source: http://www.gatwickairport.com
14 | P a g e
GATWICK AIRPORT
REFERENCES
1. Gatwick Airport- 2011 Capital Investment Program published 2012.
2. Interim master plan (Gatwick Interim Master Plan – October 2006)
3. BAA Gatwick. Flight Evaluation Report 2006/07
4. Gatwick Airport History", Business & Community Reference Guide for in and around Crawley
2008/09, Wealden Marketing, 2008, p. 85
5. Abu Dhabi lands 15% stake in Gatwick for £125m", The Times, 4 February 2010 Reals, Kerry (21
June 2010). "Gatwick Airport drops 'London' brand ahead of £1bn revamp". Air Transport
Intelligence (Flight global)
e-References

http://www.gatwickairport.com

http://gatwickmasterplan.co.uk/read-the-full-text/gatwick-traffic-characteristics-andforecasts/

(http://gatwickmasterplan.co.uk)
15 | P a g e