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The AviAlliance Magazine | 12-2013 | #06
Trends
4 TAM Symposium
th
Integrated services
Traffic governs everything – from future
operations to strategic development
TOP STORY
A new start with a new name and a new look
HOCHTIEF AirPort is now
Integrated services
AviAlliance reviewed retail concept and
revenue forecast for Nice Airport
contents
E d ito r ia l
03
A new start at the turn of the year
06
Ey e c at c h e r
04
A new start with a
new name and a new
look HOCHTIEF AirPort
is now AviAlliance
Run away on the runway
TOP STORY
06A new start with a new name and a new look
HOCHTIEF AirPort is now AviAlliance
OUR PORTFOLIO
08The growing importance of non-aviation
12
business
10News
4th TAM Symposium
Trends
124th TAM Symposium
16Airport sales: returning to the growth trajectory
18
Accelerating the Single European Sky
I N T EGR A T ED SERV I CES
22
Traffic governs everything – from future
operations to strategic development
22
26AviAlliance reviewed retail concept and
revenue forecast for Nice Airport
27
Rostov-on-Don Airport to be Russia’s first
T raffic governs everything –
from future operations to
strategic development
greenfield project in over 20 years
Su s tai n a b i l ity
28AviAlliance develops environmental roadmap
for Sydney
28
Düsseldorf receives Ökoprofit seal
28
Reduce your footprint
COMMUNITY
29AviAlliance supports educational establishments
Co n s u l ti n g t e am
30
AviAlliance Integrated Services
26
F i g u r e s t h at c ou n t
31
viAlliance reviewed retail
A
concept and revenue
forecast for Nice Airport
Challenges of growth
31Imprint
2
ED I T O R I A L
A new start at
the turn of the year
A
longside consultancy business, this
also opens up scope for new airport acquisitions and we are keep-
ing a close eye on the market for suitable
ventures.
For more information about the changes
and our plans for the future, please turn to
AviAlliance is run by
Holger Linkweiler (left)
and Gerhard Schroeder.
the article on Pages 6 and 7.
Next, we should like to draw your attention
Photo: AviAlliance/Christian Schlüter
to the report on Pages 12-15 on our 4th To-
Dear Readers,
tal Airport Management Symposium. This
year’s event, which we co-hosted with the
German Aerospace Centre (DLR) in Braun-
For our company, an exciting year is com-
schweig in October, was a great success,
ing to an end. Since September, we have
attracting experts from all over the world.
had a new owner, the Canadian pension
We are convinced that the discussions held
investment manager PSP Investments. And
there will soon lead to operational solutions
since October, we have been operating in
which benefit both airports and airlines.
the airport market under the new name of
AviAlliance. This follows PSP’s acquisition
We hope you enjoy reading this issue of our
of HOCHTIEF AirPort in its entirety, with all
magazine.
the airport shareholdings and our whole
team. The new name, made necessary by
our departure from the HOCHTIEF Group,
also marks a new start. Now, we can focus
Yours,
all our energy on new projects.
Holger Linkweiler and Gerhard Schroeder
3
Ey e c at c h e r
4
Run away
on the runway
R
unning shoes touched down instead of air-
craft landing gear on Runway 1 (13R/31L) of Budapest Airport during a special half-marathon relay
called Runway Run. The charity event was staged on
September 28, a Saturday morning when the airport
could cope with traffic needs on the other runway,
and was organized jointly by Budapest Airport, Nike
Hungary and Wizz Air. Proceeds go towards financing sporting facilities for students in need. Airport
authorities ranging from the Civil Aviation Authority
to the Airport Police also participated with teams of
four runners (6+6+6+3 kilometers to run each). The race
was won by the team from the Airport Tax and Customs
Authority with a total time of 1:15:32! So, if you have
goods to declare, don’t even think of running away from
these guys!
Photo: Budapet Airport/Mihály Hardy
yVICES
I N T E G TR op
A T ESto
D Sr
ER
A new start with a new
name and a new look
HOCHTIEF AirPort
is now
A
t the end of September the Canadian pension fund, Public Sector Pen-
sion Investment Board (PSP Investments),
acquired the HOCHTIEF Group’s airport
shareholdings along with the management
team. Shortly after that, HOCHTIEF AirPort
was renamed AviAlliance. The new name
marks both a disengagement from the previous owner, as well as a new start for the
company.
Apart from that, however, everything remains the same as before at AviAlliance.
The company will continue to operate
worldwide as an airport investor and manager, and develop airports along their entire
life-cycle. Apart from participating in airport
purchases, consulting services are also to
be performed. AviAlliance is one of very few
consultants in the industry whose expertise has been acquired and tested on its
own assets.
T
he sale and resulting name change
are accompanied by a completely
The company’s portfolio also remains unal-
itself with a fresh, green look. Using this col-
tered following the change of owner. At the
or which is rarely used for branding in the
moment AviAlliance has shares in the airports
aviation business, the company intends to
in Athens, Budapest, Düsseldorf, Hamburg
set itself apart from the competition.
and Tirana. PSP Investments had previously
already taken over the shares in Sydney Air-
For more information about AviAlliance, visit
port, Australia, as a direct shareholding.
our website:
www.avialliance.com
6
Photo: Andriy Dykun - Fotolia.com
new corporate design. AviAlliance presents
T op Sto r y
Interview
Holger Linkweiler and Gerhard
Schroeder are the two Managing
Directors of AviAlliance. Both have
been with the company for many
years and have acquired a broad
range of experience in various
management positions. Talking to
ConTACT, they describe the current
situation and provide an outlook.
Contact: What are the immediate changes resulting out of
the sale of HOCHTIEF’s airport
segment to PSP Investments?
Broad range of experience: Gerhard Schroeder
and Holger Linkweiler are the Managing Directors
of AviAlliance.
Photo: AviAlliance/Christian Schlüter
Holger Linkweiler and Gerhard Schroeder:
At first glance none, or not many. We are still
the same company, with the same team, in
the same place. And our corporate goals
haven’t changed essentially either.
What are those goals?
We want to continue growing our asset base
Are there specific projects
and acquire profitable airport shareholdings
already?
all over the world. What is important here,
Yes, there are, but we’ll be sticking to our
is to weigh up the opportunities and risks
old practice of only talking about new proj-
because, naturally, we want our activities
ects once they’ve really firmed up.
to generate attractive and secure returns.
Traditionally, infrastructural facilities such as
What role will the consult-
airports score high in this regard.
ancy business play in future?
A big one, just like before. Following the
This combination of security and attractive-
conclusion of the sale phase, we can once
ness is certainly one of the main reasons
again involve ourselves intensively in this
why demand for airport shareholdings re-
market. Consultancy business helps us to
mains high, as has been impressively dem-
keep our finger on the pulse, and imme-
onstrated by the latest airport sales.
diately identify new developments in the
market.
PSP Investments is one
What is AviAlliance going to do
of the largest pension
next in concrete terms?
AviAlliance is one of very few providers of
investment managers in
We are currently going through a phase of
such services who isn’t only advising from
Canada with assets un-
integration, and we’re aligning our report-
a theoretical point of view. Everything that
der management totaling
ing structures and organization with those
we suggest has already been tested in prac-
CAD 76.1 billion as at
of our new owner. Naturally, parallel with
tice and proved itself – both operationally
March 31, 2013. It man-
this we are talking about our next strategic
and commercially. That is a major bonus
ages pension contribu-
steps and possible further developments.
for any client.
tions for the federal public
This is a meeting of minds, which of course
service, the Canadian
makes integration and collaboration much
Apart from classic consultancy business,
forces, the Royal Cana-
easier. In PSP, we have found a shareholder
however, we could also foresee develop-
dian Mounted Police and
with a long-term orientation, with whom Avi-
ing new and associated products or ser-
the Reserve Force.
Alliance can effect new investments in air-
vices around airports. Interesting markets
port shareholdings when chances, risks and
are forming in this area, so we’ll be keeping
returns are right.
our eyes open.
7
P o r tfo l io
Duty free
The growing
importance of nonaviation business
In recent years, airports have developed a completely
new sense of identity. They no longer see themselves
solely as infrastructure operators but also as traders and
service-providers. Increasingly, airports regard themselves
as an essential component of the travel value chain. This
development is reflected by the way in which revenues
from non-aviation business have been growing. At the
airports in the AviAlliance portfolio, for instance, this sector
is now responsible for up to 43 percent of turnover. With
an upward curve. In all the AviAlliance holdings, the range
of merchandise on offer is being constantly optimized and
adapted to changing needs and requirements.
S
ome trends last forever. In the field of
non-aviation business, the duty free
and travel value segments are still
among the key revenue-drivers. This applies
even to such distinctly different airports as
those in Tirana, Budapest and Düsseldorf.
“There is a big difference, though, in the
specific products at the focus of demand.
That varies in accordance with the particular
passengers groupings”, explains Dr. Peter
Poungias, Director Commercial and Property Activities at AviAlliance. Traditionally, perfume and cosmetics are the most important
products, but in Budapest, for instance, demand centers heavily on cigarettes because
prices there are low by EU standards.
Düsseldorf Airport is determined to have
a greater say in decision-making in the
duty free sector in future. So after an international tendering procedure, it awarded
the relevant contract to the World Duty
Free Group (WDFG). At the beginning of
the year, WDFG took over all six duty free
shops at the airport. By the middle of next
year, all these outlets are to be revamped
and modernized.
The concession agreement, which runs for
ten years, marks WDFG’s entry into the German market. Based in Madrid, WDFG is listed at the Italian stock market, operating in
20 countries at more than 100 airports with
more than 550 stores.
8
P o r tfo l io
Regionalization
I
n recent years, “Sense of Place” has become a buzzword for a trend towards
regionality as a counter-movement to
the large international retail chains. The
term embraces more than just souvenirs of
the particular area, it also covers typical local products and suppliers. One example
is the Hamburg-based fashion firm Tom
Tailor, which now presents its collections
at Hamburg Airport. At Düsseldorf Airport,
Schiffchen, one of the city’s oldest restau-
Food & Beverage
Catering options at airports are expanding.
More and more visitors and passengers take
the time to have a meal or at least a drink
at the airport.
Hamburg Airport, for instance, recently un-
Increasingly important: At the airports
in which AviAlliance has a participating
interest, the non-aviation segment
already accounts for up to 43 percent
of sales. The airports are therefore
constantly working towards improving
their offering. At Düsseldorf Airport,
the duty-free shops are being given a
complete makeover. Hamburg, meanwhile,
has been able to acquire two new providers in the food area, as well as the first
Victoria’s Secret store at an airport.
Photos: Düsseldorf Airport (photo left),
Hamburg Airport/Michael Penner.
rants, runs a small outlet. In Budapest, the
porcelain manufactory Herend has some of
its world-famous products on offer at the
airport – right next to a branch of Gundel, a
renowned gourmet restaurant in the Hungarian capital since the 1920s.
Fashion and luxury goods
dertook further optimization of its generously dimensioned food portfolio: In spring,
Autogrill Deutschland GmbH opened a 361
… are something that every airport simply
square meter food bar called Puro Gusto in
has to have on offer. What is important in
Terminal 1 (T1) serving mainly Italian snacks.
this connection, though, is ensuring that the
Another newcomer in T1 is Scoom, a bistro
mix of merchandise meets the tastes of the
which offers freshly prepared snacks that
different passenger target groups.
are free of flavor enhancers and chemicals.
E
Customer relations
xtending the spectrum since the middle of the year is a McDonald’s. “That
V
ictoria’s Secret , the leading specialty
lingerie and beauty products retailer, is now venturing into the world
is in response to the wishes of our
Up to now, airports have had hardly any di-
of airports. In spring, Greece’s first airport-
passengers – a survey showed that one
rect relations with customers. Passengers
based Victoria’s Secret store opened in Ath-
quarter of all respondents wanted a place
were looked after primarily by the airlines
ens, where it offers a wide range of acces-
that serves burgers”, reports Michael Egg-
or the numerous concessionaires. “We are
sories such as handbags, purses, scarves
enschwiler, CEO of Hamburg Airport.
convinced that this is set to change”, says
and sunglasses. Since August, there has
Dr. Peter Poungias. He believes that airports
also been a Victoria’s Secret outlet in Ham-
Budapest Airport is enjoying great success
will increasingly seek direct contacts via the
burg, the first to open in any German air-
with outdoor catering in T2B. Since it was
interfaces they have with their passengers.
port. Montblanc, which sells luxury watches,
opened last summer, the new terrace there
For instance via the online booking of park-
fountain pens and the like, has shops at
has been attracting a lot of guests and gen-
ing spaces, through social media, or within
three different AviAlliance locations: Düs-
erating strong revenues.
the airport premises when passengers are
seldorf, Hamburg and Budapest. This year
shopping. Innovations like the Hamburg Air-
has brought the opening of Michal Negrin
Some people shop at an airport to meet
port app (see page 10) can contribute to
and Guess outlets in Budapest, and of Furla
their day-to-day needs. That is why there
this. Poungias continues: “This potential has
and Codello shops in Düsseldorf. In Athens,
are already supermarkets in Düsseldorf and
not been fully identified yet – and it cannot
top fashion brand Hermès has been repre-
Hamburg, while Budapest plans to open its
be even vaguely quantified, but I am sure
sented ever since the airport there went into
first grocery store very soon.
that it will be one of the relevant trends.”
operation in 2001.
9
P o r tfo l io
News
HAM
Wolfgang Pollety succeeds ClausDieter Wehr as Managing Director
Wolfgang Pollety has
been appointed Managing Director of Flughafen
Hamburg GmbH. From
November 2013 on, he
TIA
Rolf Castro-Vasquez new CEO of Tirana Airport
supports CEO Michael
Eggenschwiler in running
the airport. He succeeds
Since the middle of this year, Tirana International Airport has a new CEO: Rolf
Claus-Dieter Wehr, who a
Castro-Vasquez. He succeeds Andrea Gebbeken, who has returned to the
year ago had already an-
HOCHTIEF Group in Ger-
nounced his intention to
many after completing her
leave the company at the
contractual term of service
end of 2013. Wolfgang
in Tirana. Castro-Vasquez,
Pollety joins Hamburg
who has been living in Al-
Airport from the airport of
bania since 2005 and was
Frankfurt/Hahn where he
for several years the air-
was CFO. Prior to that he
port’s COO, has spent 30
had held various senior
years of his professional
positions at Deutsche
career in the air traffic in-
Bahn (German Rail).
At the beginning of November
Wolfgang Pollety joined Michael
Eggenschwiler on the management board of Hamburg Airport.
Photo: Hamburg Airport/ Michael Penner
dustry, in various positions
and with different companies. The second member
of the airport’s top manHanding over the keys: Since the middle of this
year Rolf Castro-Vasquez is the new CEO of Tirana
International Airport.
agement team is Suela
Keri, who has been CFO
since 2007.
HAM
New app provides information on
waiting times
Photo: Tirana International Airport
Hamburg Airport has become the first airport in Germany to offer
passengers a new digital service to enable them to check how
long they may have to wait at security – and it does so even before
ATH
Athens International Airport remains economic
dynamo for the region
they arrive at the airport. Via an app or the airport’s website, passengers can obtain real-time data on waiting periods at security
screening. The information is updated every 15 minutes. Knowing in advance just how much time to allow for the security check
Under the guidance of Professor Gregory Prastakos, Athens University of Economics
offers passengers a substantial benefit. Business travelers in par-
and Business has updated its study “The contribution of Athens International Airport
ticular can now plan their flight even more efficiently than before.
(AIA) to the Greek economy”. This shows that AIA remains one of the most important
hubs of economic value added and job creation in the country. According to the new
findings, Athens International Airport contributes substantially to the national economy
with an annual total added value of 5.1 billion euros, corresponding to 2.63 percent
of Greece’s GDP. At the same time, the airport is a powerful employment engine: at
the national level it has created approximately 100,000 jobs in Greece.
For the surrounding Messogheia area, the study reveals that the airport contributes
significantly to local economic prosperity. As the biggest business entity, the airport,
with an annual added value for the area amounting to 716 million euros, has boosted
employment by creating 11,000 jobs for local residents.
10
The new Hamburg
Airport App includes
real-time data on the
current waiting times
at the security checkpoint. This service for
passengers is the first
of its kind at a German
airport.
Photo: Hamburg Airport/
Michael Penner
P o r tfo l io
DUS
Düsseldorf Airport wants
to be able to utilize its
runway capacity better
In the future, Düsseldorf Airport wants to be in
a position to operate more flexibly and more in
line with demand. So – probably in June 2014
– it intends to apply for its present operating
permission to be amended.
The existing regulatory framework is extremely
rigid and no longer corresponds to actual requirements. During daytime hours, the airport wants
to be able to use the runway system without the
present inflexible restrictions so that it can offer
airlines more slots at times of high demand.
Düsseldorf Airport wants to be in a position to operate more flexibly and more in line with
demand. It intends to apply for its present operating permission to be amended.
Photo: Düsseldorf Airport
So it is seeking approval for up to 60 aircraft
To provide greater protection from aircraft noise,
particular the time of day for take-off or land-
movements an hour at specific times of the day
Düsseldorf Airport will in future also attach even
ing. One effect will be that the present noise
in line with the technical capacity of the two-
more importance to charging airlines appropri-
surcharges will be differentiated into standard
runway system. During the rest of the day, the
ately. As from January 1, 2014, it will calculate
surcharges for daytime flights and much steeper
airport will keep to the present level of 43 air-
charges in accordance with the so-called Ham-
charges (up to six times higher) for near-night
craft movements an hour. The existing ban on
burg model. This is an innovative system which
and nighttime hours.
nighttime flights (between 10 p.m. and 6 a.m.)
takes into fuller consideration such factors as
will remain untouched.
an aircraft’s noise level, its emissions, and in
BUD
Appel ceremonially opens
new DHL logistics base in
Budapest
At the end of October, Dr. Frank Appel, CEO
of Deutsche Post DHL, personally inaugurated
DHL’s new logistics facility at Budapest Airport.
The facility, situated in the new Airport Business
Park, will accommodate two DHL subsidiaries
which have up to now been spread across various locations in the region. The logistics complex, erected by an airport team, provides 3,000
square meters of office premises, 7,800 square
meters of warehousing, 5,700 square meters of
maneuvering space – and jobs for 230 people.
Dr. Frank Appel, CEO of Deutsche Post
DHL, Bartha Péter, DHL Freight, Zoltán
Rezsek, DHL Global Forwarding, and
Gerhard Schroeder, Chairman of the
Board of Directors of Budapest Airport, jointly inaugurated the new DHL
complex on October 30.
Prior to that, in June, Lufthansa Technik had ex-
Photos: Budapest Airport
and Norwegian.
11
tended the premises it leases from the airport
with the addition of a new 2,000 square meter
warehouse. In Budapest, Lufthansa Technik carries out D-checks, for instance, for its parent
company and also for Wizz Air, Germanwings
Trends
Participants at the TAM Symposium in Braunschweig took advantage of the opportunity for a lively exchange of
views and ideas and for making fresh contacts. Our pictures show [1] Robert Graham (Eurocontrol) talking to Kurt
Klein (DLR), [ 2] Eurocontrol chief Frank Brenner in conversation with Prof. Dr. Dirk Kügler (DLR), [3] and Reiner Becker
(Inform) with Helena Pajonk from AviAlliance.
1
2
12
3
I N T E G R AT Tr Ee Dn dSsE R V I C E S
4
“As a first time attendee I found it an excellent plat-
5
6
form for information, networking, and intelligence
for future work.” – this is how Rainer Kölle from
Eurocontrol summed up the 4th Total Airport Management (TAM) Symposium, held in Braunschweig.
This year’s venue was chosen to enable participants to get an on-the-spot look at research projects being carried out by the German Aerospace
Center (DLR, Institute of Flight Guidance), which
this time co-hosted the event with AviAlliance.
The symposium, initiated in 2009 by AviAlliance’s
Thomas Brehmer, provides a platform to discuss
7
how the idea of Total Airport Management can be
implemented in the day-to-day operations of airlines and airports in a way that benefits all con[4] The two days in Braunschweig
were devoted to discussions on the
future of TAM. One of the keynote
speakers was Michael Standar from
SESAR Joint Undertaking.
cerned. One key objective is to counter the capacity bottlenecks which pose a threat to many
airports in the coming decades. Many of the
speakers in Braunschweig cited the most recent
Eurocontrol study, “Challenges of Growth”, which
[5] The participants included Alison
Bates from Heathrow Airport
Limited and Dr. Kai Nürnberger from
the Fraunhofer Institute, [6] and
Paul Adamson from Eurocontrol.
provides fresh and impressive confirmation of the
scale of demand which airports will have to face
in the future.
8
Discussions at the 4th TAM Symposium – entitled
[ 7 ] The organizers of the TAM
Symposium , AviAlliance’s Tom
Brehmer (left) and DLR’s Karl-Heinz
Keller (right), together with the
three keynote speakers Michael
Standar, Frank Brenner and
Prof. Dr. Dirk Kügler.
“science2business” – centered on prevailing problems and initial steps in the right direction. The general consensus among the around 90 participants
from Eurocontrol, the European Commission, numerous European airlines and airports, and various industry associations, was that the concept
behind the TAM idea now needs to be introduced
[8] Visiting the DLR in Braunschweig:
Tony Simons (ACL), David Booth
(Eurocontrol), Prof. Hamsa
Balakrishnan (MIT), Georg
Langenberg (Amadeus) and Jens
Lemke (HCL4).
quickly into the operational business of airlines and
airports. Against this background, next year’s 5th
TAM Symposium will seek to involve the representatives of relevant companies in the discussions to
an even greater extent than before.
13
Trends
[9] Discussing the scenarios
simulated in Braunschweig by
the DLR: François Xavier Rivoisy
and Gérard Batistella (AdP), Robert Graham (Eurocontrol), Peter
Mayerhofer (Vienna Aiport), Peter Eriksen (Eriksen Consulting)
and Prof. Dr. Michael Holzschneider (Dornier Consulting).
9
Commentary By Erica Gingerich
NOT Getting Lost
in Translation
“So we all agree on English as our industry language to make communicating easier. But what
do we do about the fact that some of us are
[10] Vangjel Nikolla (Tirana Int.
Airport) and Michael Holzschneider listening to Peter Eriksen.
speaking ICAO and others are speaking IATA
dialects?” – Airport ops representative attending
the 4th TAM Symposium, “science2business,”
[11] Lufthansa pilot Jorgen von
der Brelie, who is researching
the issue of prioritization of
departing flights.
10
October 15-16, 2013
For the aviation industry experts attending
the recent airport management symposium in
Braunschweig, Germany, “speaking the same
11
language” about airport and air traffic management is one of the biggest challenges facing
Europe’s aviation industry today.
Hosted by AviAlliance and the German Aerospace Center (DLR), the Total Airport Management (TAM) Symposium – the fourth since the
TAM concept was developed jointly by DLR and
Eurocontrol in 2006 – was ostensibly focused
on how to move the TAM concept “from science
to business”. But whether they were representing airport operators, ground handlers, software consultancies or the European Commission, symposium participants agreed that while
13
12
[12] One of the highlights of the event
was a visit to the
DLR in Braunschweig,
where, among other
things, new concepts
for airport operations
enhancements are
validated.
[13] AviAlliance Managing Director Holger
Linkweiler in a flight
simulator.
14
Trends
14
15
16
17
In 2012, according to Eurocontrol, air traffic
delays cost around 900 million euros. And the
implementation of A-CDM at airports including
Munich, Brussels and Frankfurt since 2006 has
resulted in shorter runway taxi times, greater fuel
[14 and 15] For a gala evening,
the city of Braunschweig
opened the Dornse, one of the
oldest city halls in Germany,
with parts which date back to
the mid-13th century.
savings and more punctuality.
the scientific argument for implementing TAM
So if implementing both A-CDM and TAM will be
makes sense, there are numerous barriers to
a huge win-win for Europe’s airports, where’s the
convincing all the stakeholders at any given
holdup?
airport of the business advantages.
[16] Mayor annegret ihbe
welcomed the guests.
[17 ] Tom Brehmer with Luc
Laveyne (ACI) and Richard
Hardy (Heathrow ltd.).
Most TAM Symposium participants agreed that’s
TAM was conceptualized as a way to expand
where the “getting lost in translation part” comes
the scope of airport collaborative decision mak-
into play: Implementation requires that all key
ing (A-CDM) guidelines and standards estab-
stakeholders are reading from the same play-
lished by organizations including Eurocontrol
book. And the noticeable dearth of airline repre-
to encompass the passenger and landside
sentatives at this most recent TAM Symposium,
aspects of airport operations.
for example, seemed to be a major indication for
[18] Journalist Erica Gingerich
interviewing Frank Brenner
from Eurocontrol.
All photographs:
AviAlliance/Marek Kruszewski
many that not only are airports and their stakeA decade after the launch of the European
holders not on the same page – they’re not even
A-CDM initiative to optimize the continent’s
in the same book currently.
crowded airspace and airport infrastructure,
eight European airports have realized full
The overall take-away from the symposium? That
A-CDM so far.
airport stakeholders across Europe may not be
speaking the exact “same language” – yet! – when
Although the goal is to have a total of 20 air-
it comes to moving both A-CDM and TAM forward
ports fully implementing A-CDM by the end
from science to business. But symposium goers
of 2014, that’s hardly the kind of critical mass
had a real sense of optimism that the European
that A-CDM and TAM proponents say will be
aviation community is finally realizing that when
necessary to ensure Europe’s aviation industry
you stop talking about collaborative decision mak-
can continue growing and retain its competitive
ing and actually start implementing it, that makes
edge at the global level in the future.
real business sense – in any language.
15
18
Trends
Airport Sales:
Returning to the
Growth Trajectory
T
th market for airport privatizations
of market activity can now be seen with the
was reporting almost exclusively
sale of ANA to the French Vinci Group in
success stories for more than a de-
2013, the sale of the Brazilian airports in
cade. The number of transactions grew to
São Paolo and Brasília, and other project
the same extent as the increase in prices.
launches.
Budapest (first sale in 2005) and London
Stansted reached new peak values of 30
But is this return sustainable? Have the mar-
and 27.5 times EBITDA, respectively. The
kets remained unchanged? How have the
global financial crisis arising in 2008 put
players dominating the market survived the
an abrupt end to the rise of the privatiza-
crisis period? What remains the same and
tion market up to that time. For years deals
what has changed?
were few and far between. The resumption
Vinci returned to the market last year by win-
son to the initial cancelled process, yet the
ning the bid for the ten airports of the ANA
conceptions of the City of Chicago and the
Group in Portugal. The French company
bidders’ opinions regarding price and in-
beat out the consortiums headed by Cor-
vestment obligations on the one side and
poración América/Sonae, GIP/Zurich Airport
the duration and management options on
and Fraport/IFM to obtain the contract with
the other side diverged greatly. And with
a price in the amount of 3.08 billion euros,
only one bidder remaining shortly before
which corresponds to an EBITDA multiple
the due date, the City of Chicago decided
of 15 times (with regard to 2011).Vinci has
to abort, fearing a non-competitive offer.
once again moved to the forefront of the
movement with the purchase of ANA.
The sales process for New York’s La Guar-
M
dia Airport has been underway since 2012.
acquarie Infrastructure also in-
A preferred bidder is to be selected for it
tends to return to investing. To-
in the first half of 2014. The deal is cur-
gether with Real Assets and Fer-
rently expected to be closed in the second
rovial, the Australians were taking part in the
half of 2014. Macquarie Infrastructure has
bidding process that has restarted for the
shown interest in this project together with
Chicago Midway International Airport. After
partners. A whole series of other financial
a good project launch, the bidding process
investors have also gotten involved in the
was cancelled again in September 2013 af-
process, including Highstar Capital, RBC
ter the remaining bidders in addition to the
Capital Markets, Morgan Stanley, Citygroup,
Macquarie consortium left the process due
and Wells Fargo. It will be an interesting test
to financial difficulties. The conditions of the
case for privatizations in the U.S. market fol-
Anke Heinze, Director Investments and
Financing at AviAlliance.
sale of the Chicago Midway International
lowing the closing of the Puerto Rico sale
Airport were somewhat more beneficial to
which some see as a special case being
Photo: AviAlliance
the interested parties this time in compari-
somewhat outside the U.S.
16
Trends
“On the other hand, it can also be observed
that institutional financial investors are becoming more similar to strategic investors.
Financial investors who get involved with
airports directly and with significant shares
are therefore building up their operative expertise because they have recognized the
need to do so,” believes Heinze, stating that
the way risks are handled is also changing
somewhat. She notes that construction risk,
which was almost always a deal breaker for
financial institutions in the past, has become
something that even financial investors can
handle in the meantime, mainly via proper
contractual solutions with the construction
companies.
The sale of Sao Paulo Airport (far left)
attracted numerous bidders in 2012 while,
meanwhile, the second attempt to privatize Chicago-Midway (left) has failed. The
airport in Santiago de Chile (top) should
be more successful – its sale is planned
for 2014.
Photo: tifonimages/wsfurlan/chanceb737 - iStock.com
H
owever, many calls for bids end without the desired success. These include the two attempts to sell the
Chicago Midway International Airport as well
as the repeated postponement of the sale of
the AENA Group in Spain or Prague Airport.
People are therefore now looking into new
markets such as in Central and South America, India, or the Philippines. Due to the political and legal risks, however, the deal flow
has been unsatisfactory so far. Stable relationships are indispensable for long-term
investors. In order to stimulate the deal flow,
It can therefore generally be observed that
potential investors must already be actively
the financial crisis nearly brought the market
involved in advance. Firstly, this applies to
to a halt for a few years but did not have an
the efforts to persuade the public authori-
influence on the overall trend already start-
ties to recognize and utilize the benefit of
ed which is the move from the operating
the partnership with private investors and
(strategic) bidder to the financial investor.
operators. Secondly, the basic structures of
Today there is almost no bidder consortium
a privatization process must be presented
without the involvement of a large financial
to the parties calling for bids. It is not un-
institution anymore.
common for a lack of experience to lead to
structuring errors that make it more diffi-
“This shift will have
long-term effects on
the privatization market
that we cannot currently
properly estimate.”
Anke Heinze
“This shift will have long-term effects on the
cult for private investors to pay an adequate
privatization market that we cannot currently
value. “In the last decade, common inter-
properly estimate,” suspects Anke Heinze,
national transaction and contract structures
Head of Investments and Financing at Avi-
have evolved that are acceptable from the
Alliance. Institutional investors such as pen-
viewpoint of banks and that public authori-
sion funds have a different risk profile. Even
ties are using so that they can carry out an
more than the operative airport managers,
optimal process from the viewpoint of both
they are primarily interested in secure in-
sides,” says Anke Heinze.
vestments in stable countries with reliable
legal framework conditions. Yet it is precisely these projects that are in short supply in Central and Western Europe and the
United States most of all. This is leading to
increasingly higher hurdles and prices for
the bidders.
17
Trends
Accelerating
the Single European Sky
By Thomas Brehmer
W
hile we have a well-functioning avi-
ation system, there is still much room for
betterment in the areas of productivity, efficiency and sustainability. Together with
safety – which we enjoy at a very high level
– these define system performance. These
features in combination readily translate into
quality and capacity, the two heavily-laden watchwords in European aviation at the
present time.
With a recent Communication1, the European Commission has announced a further
enhancement to Single Sky Regulation that
addresses the need for improvement. The
Communication is a strong signal for all of
us in aviation to redouble our efforts to help
integrate aviation services for the benefit of
customers as well as for our own.
History
The Single European Sky (SES) is an idea
that has been circulating in Europe in one
form or another for decades. In the 60s Eurocontrol was founded – even then some
idealists foresaw and promoted greater integration of aviation services, anticipating
Photo: Düsseldorf Airport
some form of comprehensive coordination.
COM(2013) 408 final; Accelerating the implementation
of the Single European Sky; Strasbourg, 11.6.2013;
Communication from the Commission to the European
Parliament, the Council, the European Economic and
Social Committee and the Committee of the Regions.
1
18
Trends
T
hen, each European country had its
the noise, air pollution and blight. Aircraft
There is no doubt that the effort is worth-
own air navigation service provider,
emit harmful exhaust. For example the in-
while; it is estimated that implementation of
few of which operated with systems
dustry is said to now contribute around
the Single European Sky will yield a gain of
compatible with those of other countries.
5 percent 2 of worldwide radiative forcing,
5 billion euros annually.
Similarly, aircraft operators crossing national
combining three main effects of emissions.
borders would have had to contend with dif-
The number of airports in Europe that are
ferent methods, protocols, charging regimes
congested at least during parts of the day,
and permissions from country to country,
number in the dozens. Citizens have, for
each fiercely protecting its national sover-
many years now, effectively stopped sig-
eignty in all matters.
nificant airport expansion. This constraining of traffic is causing significant macro-
The European
Commission Announces a
Reconfiguration of the
Single Sky Regulation:
SES II+
Much has happened since then. Airlines
economic losses as well as disadvantages
have become private companies as have
for local economies around affected air-
many airports. Widespread deregulation has
ports. The pressure on all stakeholders is
In the Communication indicated above, the
erased the borders for air transport com-
mounting steadily as the demand for air
European Commission both reaffirmed the
panies as far as permission to do business
travel grows – and it continues to grow.
objectives of the Single European Sky and
is concerned. The resulting competition
announced significant structural and proce-
among airlines has reduced the cost of fly-
SES is a comprehensive and integrated ini-
ing dramatically and has led to huge growth
tiative to deal with all of the problems, both
in passenger numbers over the years. Flying
administrative and technical, linked to avia-
The Single European Sky has not been a
has become accessible to most Europeans
tion, and for the benefit of all stakeholders
high-profile consideration within the busi-
– not just a privilege of the wealthy.
as well as the environment. Since 2004,
ness planning of AviAlliance, but more im-
dural changes to the initiative.
when the initiative was announced by Com-
portantly, it has also not captured sufficient
This industry restructuring has caused large
missioner Loyola De Palacio with a legisla-
interest among all stakeholders, including
displacements in the aviation market. While
tive package (called SES I), significant steps
many member states in Europe. The latter
consumers have largely benefited, the suppli-
toward integration have been achieved.
neglect means that the problems of capacity
ers of services have gone through deep and
and quality that were deemed acute before
fundamental change. At the forefront of the
There has been progress, but it has been
2008 (with subsequent relaxation due to the
change, and the most economically vulner-
slow and as a growing number of stake-
economic and financial crisis-related traffic
able, are the airlines. To a lesser extent, the
holders contend, much too slow in some
slowdown) are again pressing3.
relative lack of pressure to become more
critical aspects. Airlines claim that they are
effective and efficient has allowed airports
carrying a disproportionate burden caused
more gradual transition. The least vulnerable
by restructuring, that airports and especially
and most protected aviation service provid-
air navigation service providers are still not
ers are the air navigation service providers
doing enough to become more efficient.
D
(ANSPs). They remain sheltered by their nation states
for the most part. On the
positive side, ANSPs have,
through the coordinating
work of Eurocontrol, become
effectively interoperable; they
have relinquished upper air
space planning and charges
collection to Eurocontrol, and
have individually and collectively contributed significantly
Single
European
Sky will
yield a gain
of 5 billion
euros
annually
espite the best intentions of industry and governments, little has been
achieved during the lull in traffic in
the interim period4 and unless rigorous mea-
sures are introduced to motivate all stakeSES has been the Euro-
holders to get on board with SES, European
pean Commission’s an-
aviation will not be able to grow. Perhaps the
swer to these and related
term “Single European Sky” was not seen
complaints. Because of the
as inclusive enough for non-air navigation
enormous complication of
service provider actors, but this is changing.
the undertaking, the difficulty in motivating stake-
We now know that the capacity and quality
holders to change and
issues are most limiting at airports. It is there
the near imperceptibility
that traffic converges to unavoidable phys-
of the significant, positive
ical limits fastest. Air traffic management
changes for the traveling
(ATM) is experiencing a definition enhance-
public; the SES initiative,
ment: it refers, increasingly, to an integration
as a work in progress, will
of all actors and procedures supporting air
continue to experience im-
travel – not just air navigation service provid-
However, there are some dark side effects
proving reconfigurations as in the case of
ers. As such, Single European Sky and ATM
of the increased level of aviation. Com-
the new legislative package, SES II+, de-
should and will be core topics for AviAlliance
munities around airports complain about
scribed below.
in future.
to the excellent flight safety
situation in Europe.
Aircraft emissions in conjunction with other anthropogenic sources are expected to modify atmospheric composition (gases and aerosols), hence radiative forcing (RF) and climate. RF is the
global, annual mean radiative imbalance to the Earth’s climate system caused by human activities. From the website of the Intergovernmental Panel on Climate Change (IPCC): Aviation and the
Global Atmosphere, Executive Summary
3
Challenges of Growth 2013: Summary Report; Brussels; June 2013; EUROCONTROL: Network Manager, nominated by the European Commission.
4
“the head start has been lost,” ibid., page 3,
2
19
Trends
A
s for the other stakeholders, the in-
FABs must have greater legal clarity to pur-
sular consideration of air transport
sue a greater variety of cooperation arrange-
by nation states, ANSPs and air-
ports has been a significant obstacle to European aviation integration and is now being
targeted for robust change by the European
Commission (EC). The EC will now issue a
revised set of rules for SES with which it
hopes to tighten SES compliance procedures and enforce these more effectively.
Air Navigation Services
The European Commission, Eurocontrol and
the SESAR5 Joint Undertaking have been
highly focused on the defragmentation of
European air navigation, yet change for the
better has not materialised quickly enough.
Hopeful initiatives, introduced in 2009, with
a second major reconfiguration of SES (SES
is a huge
“andSESnecessary
undertaking.
With it, both the
administration
and technology
of air travel will
be brought up
to date and made
ready for the ever
more ambitious
project of general
transportation
integration.
”
II), such as the delivery of performance ob-
ments among themselves to exploit synergies and to team up with different partners
depending on competence and appropriateness. Revised regulation will reflect this.
Satisfying the Consumers
There is a growing realization generally that
there must be increased focus by service
providers on end-user needs. Airlines, for
example, have been less than satisfied with
the performance and the performance projections by ANSPs, especially with regard to
cost efficiency of the service. However, service quality extends to the end user as well,
and encompasses more service providers
than just the ANSPs. A new Commission
implementing rule for performance7 was issued earlier this year containing extensive
jectives, a Network Manager for all of Eu-
additional reporting requirements, not just
rope and the partial consolidation of air
for ANSPs, but for all major aviation service
navigation services by creating Functional
providers. Properly analyzed and appropri-
Airspace Blocks (FABs), have not been well
ately shared among aviation service provid-
enough exploited.
ers, this information will enable and motivate
better performance across the board.
Member states and their ANSPs have resisted even modest consolidation such as
Industrial Partnerships
the formation of FABs, groupings of ANSPs
spanning national borders, of which there
are nine. In this example, despite contractual agreements among nation states foresee-
To better meet customer needs the Com-
ing administrative and functional integration
mission has always supported the introduc-
by the end of 2012, there is little operational
tion of market mechanisms into service pro-
integration inside each FAB.
vision where feasible. Services most suitable
For example, despite planned savings from
these measures, estimated to obtain over the
period 2012 to 2014 of 2.4 billion euros, many
member states have not met their obligations,
leaving a shortfall of 189 million euros6 – a
figure that airspace users dispute. They go
so far as claiming that their costs in 2014 will
actually increase. For this reason the Commission will again revise rules, but also be
prepared to launch infringement procedures
against member states that fail to comply.
Also, FABs will likely require even more flex-
Thomas Brehmer,
Director
Technology at
AviAlliance,
is currently
collaborating
with ACI Europe
and other agencies
on a detailed
Job description
for the new
Position of Ground
Coordinator.
Photo: AviAlliance
for competition are support services such
as meteorology, aeronautical information,
communication, navigation or surveillance
services, for example. One current initiative
to configure such a competitive regime is
being spearheaded by Eurocontrol under
the designation “Centralised Services”.
The Network Manager
The Network Manager’s role as a strong, industry-led entity with clear executive powers
ibility than originally set out to achieve a more
will be reaffirmed and refocused. This will do
integrated airspace. Constituents of the
away with lesser quality decision-making of
Single European Sky ATM Research
The European Commission, op. cit., page 1.
COMMISSION IMPLEMENTING REGULATION (EU) No 390/2013
of 3 May 2013
laying down a performance scheme for air navigation services and network functions.
5
6
7
20
Trends
the recent past, impeded by weak compro-
further the goals of providing a level playing
combined into one single regulation. In this
mises among network management staff,
field, free movement, environmental and, the
process the Single Sky Regulation will be
industry and regulatory bodies.
avoidance of regulatory duplication, as well
brought up to date and made more coher-
as integrating into European aviation, ICAO
ent.
National Supervisory
Authorities
National supervisory authorities (NSAs) have
a major role in the implementation of SES.
rules and guidelines for traffic management
and aerodromes.
T
he formation of non-safety related
regulations has been the responsibil-
The Commission Is
Insistent on the Need
to Deliver Promised
Performance
ity of, primarily, Eurocontrol. It has, however,
However, in many cases national supervi-
become increasingly clear that it is difficult
sory authorities do not have the capability
and often impractical to separate opera-
SES is a huge and necessary undertaking.
to oversee the development. Furthermore,
tional and safety components in regulation.
With it, both the administration and technol-
some national supervisory authorities are
For this reason Eurocontrol will forthwith fo-
ogy of air travel will be brought up to date
not independent of their governments.
cus on network management and EASA will
and made ready for the ever more ambitious
This particular shortcoming is a key cause
dominate the formation of policy-making,
project of general transportation integration.
of inconsistency in network development
regulatory, certification and oversight activi-
This is part of the unified European ideal,
because of potential conflicts of interest.
ties in conjunction with the European Com-
the removal of barriers, the stimulus for ex-
For this reason the Commission proposes
mission. In connection with this reconfigu-
change and the conservation of light-hand-
assistance to the NSAs to enhance their
ration of duties, EASA will be renamed the
ed order. It is also a challenging endeavour
competence, and a set of binding criteria
European Union Agency for Aviation (EAA).
because the hard work being accomplished
to ensure the autonomous and effective operation of national supervisory authorities.
Consistent Institutional
Framework
is not at all obvious to citizens. Ultimately,
Additional change will see the Performance
however, the result will be acknowledged as
Review Body (PRB) leave the auspices of
European excellence in action.
Eurocontrol and report directly to the European Commission. This will remove any in-
These are challenges worthy of our com-
consistency of governance that might have
pany, AviAlliance.
been perceived or existed previously.
The European aviation safety agency (EASA)
A further significant step in this regard will
has, since 2002, had the objective to up-
be the consolidation of legislation for SES,
hold a high and uniform level of safety, to
whereby the original four regulations will be
Good to know
the Single European Sky
The information in this article has been gleaned from the Commission Communication “Accelerating the implementation of the
Single European Sky”, COM (2013) 408 final; the new Commission implementing regulation regarding performance, “Commission
Implementing Regulation (EU) No 390/2013”, the European ATM Master Plan; Eurocontrol’s forecast of aviation traffic growth,
“Challenges of Growth 2013”, the Intergovernmental Panel on Climate Change; and work done by AviAlliance for various European
aviation industry agencies. For more detailed information, please refer to these source documents.
The tendency is clear: we seem to be on the threshold of a more consumer-led air transport system emphasizing quality and capacity.
Most of the essential consumer-oriented features are subsumed in these two words. The implications for industry are large. To fulfill
the mission of SES, our aviation infrastructure, systems and processes will have to be improved – fortunately, most of the necessary
measures are not extraordinarily costly in financial terms. However, they do involve change in the way aviation is managed. Chances
are very good that these improvements will be supported by gains from markedly increased efficiency of the entire system.
21
INTEGRATED SERVICES
Traffic governs everything
– From future operations to strategic development
Knowing what lies ahead: Traffic is the key factor driving hundreds of decisions
made at airports, ranging from operational issues to strategic development.
So understanding how traffic will most likely develop is extremely valuable.
AviAlliance has gone a step further – and now offers unique solutions not only
to create state-of-the-art traffic forecasts, but also to closely link them with other
products, such as capacity analyses, thus ensuring a higher level of precision.
E
ach airport is individual – and this is reflected strongly in its traffic
forecast model, exactly tailored to the needs of each customer. “Our
profile. But for all airport planning purposes it is crucial to un-
experience has shown over and over that robust forecasting, on the
derstand how traffic is structured and how it will develop in the
back of thorough analysis, is the first essential milestone in any airport
future. To achieve this, AviAlliance has developed
a methodology that delivers valuable input for
financial and operational planning, ranging from
the very short-term to the long-term.
Through a large variety of projects at very different airports, from regional aerodromes to international hubs, AviAlliance has gained considerable experience in the art of traffic forecasting.
An airport’s development potential is determined
by a complex interaction of macroeconomic driv-
“Our experience
has shown over and
over that robust
forecasting, on the back
of thorough analysis,
is the first essential
milestone in any airport
planning project.”
planning project”, says Christian Kunsch, Director Aviation at AviAlliance.
While some customers only need a rough idea
of where traffic will be heading in the coming
months, others need a selection of scenarios
for the next twenty years as a foundation for
their master planning. At the end, the customer
will not only have a prognosis, but also a better
understanding of how traffic “works” through a
SWOT analysis at his airport – along with the
opportunities to influence its growth. Christian
Kunsch points out: “Understanding the struc-
ers, tourism potential, regulatory issues, air fares,
competition, airline strategies and airport capacity. Drawing on well-
ture of traffic at our assets has proved very valuable in the past – a
known industry databases, market intelligence and specifically de-
prime example is Budapest Airport’s recovery following the demise
veloped tools, AviAlliance identifies key drivers to build an individual
of its home carrier, Malév”.
22
I N T EGR A T ED SERV I CES
Methodology
Past
Historical
traffic trends
Available
industry/regional
forecasts
Airlines
capacity/network trends
Airport
competition
Propensity
to travel
Aviation database
Tourism
trends
Macro-economic trends
(economic factors, population)
Socio-economic database
Future
Socioeconomic
development
Forecast model
Anticipated
development
of airline
strategies
for capacity
development
Bottom-up approach
Reconciliation
Traffic segmentation
Top-up approach
Tourism trends
Econometrics
Long-term
airline
strategies
Short-term forecast
Mid-term forecast
Long-term forecast
Airport
infrastructure
Design day and schedules
AviAlliance has also developed a methodology to review existing forecasts, allowing for a quick revision of third-party estimates.
23
I N T EGR A T ED SERV I CES
AviAlliance is proud to have conducted a wide range of
traffic-related projects across the globe. While many
share a common ground – serving for instance as the
basis for a master planning process – each project is individual. This is not only because every airport has a
different traffic structure but is also due to how the
projects are conducted and how the results are to be
used.
Example Russia:
A special, yet positive challenge is regularly encountered in Russia. The aviation market there has been
developing rapidly, with double-digit growth being the norm rather than the exception. And – unlike other emerging counties – Russia has
not yet experienced a real low-cost boom. This situation necessitates a very precise modeling approach for the short- to mid-term, based
both on extensive market knowledge and research. An example of a successful application of this approach is the airline marketing project
conducted for Novosibirsk Airport in 2012. AviAlliance supported the airport with the development of a new airline marketing strategy.
To understand the market and assess the potential of future developments (such as connecting traffic and new routes), it was agreed
to prepare a traffic forecast within the first phase of the project. This forecast then formed the foundation for the objectives of a newly
developed airline marketing strategy, as it enables the airport to assess how much “supply” it can add through targeted marketing activities
to satisfy the ever-growing “demand” on air traffic. In addition, the forecast can be used to plan the necessary facilities for the expected
growth. It can also be used for business planning purposes.
W
ithin its own portfolio, AviAlliance is very actively involved in
a comprehensive “bottom-up” model for the coming months and
forecasting traffic. For its shareholdings in Budapest and Ti-
years, in which very detailed assumptions are made on an airline/
rana, detailed annual passenger forecasts are provided along
route level. For the long-term, AviAlliance uses statistical correla-
with individual analyses on request; at Athens International Airport, Düsseldorf Airport and Hamburg
Airport, it carries out frequent reviews of the traffic
forecasts there. “By centralizing the task of forecasting within AviAlliance, all shareholdings profit from
our wealth of know-how without having to establish
experts in their own organization”, explains Christian
Kunsch. Furthermore, this guarantees a seamless
link to the succeeding uses of the forecast figures for
planning purposes, such as capacity analyses – and
most airports end up using the results of the forecast far more often than they would have expected.
“By centralizing
the task of forecasting
within AviAlliance,
all shareholdings profit
from our wealth
of know-how without
having to establish
experts in their own
organization.”
tion analysis and econometric modeling to identify the most likely development of air traffic. This
yields annual results for any category the airport
is interested in, from passengers to movements
and cargo volumes, all of which can be further
broken down (e.g. into domestic/international or
by key carrier).
While for some purposes annual figures may be
sufficient, these need to be complemented by
peak-hour traffic estimates for facilities planning.
Any airport has variation in traffic throughout the
year, a week and even during the day. To ensure
Commonly, a traffic forecast will be comprised of a detailed analysis
that spatial requirements are met on satisfying service levels, it needs
of both the aviation and the socio-economic environment an airport
to be understood how much passengers travel during congestion
or airport system operates in. This knowledge is used to create
periods. As an example, AviAlliance aviation expert Markus Lesweng,
24
I N T EGR A T ED SERV I CES
Example Yekaterinburg:
Most importantly, though, AviAlliance has experienced that it is essen-
tial to understand the intended purpose of a traffic analysis and forecast. In Yekaterinburg, Russia, AviAlliance provided
the design for entirely new cargo facilities. Demands on a forecast like this can be quite different to those made e.g. for
Ljubljana Airport, where the traffic forecast laid the foundation for an airport development plan. The relevant figures were
not only used to size facilities, but also to assess the overall economic impact for the region and the country.
Example Middle East:
An entirely new challenge presents itself in the Middle East, where AviAlliance
is currently active in several projects. The region itself has seen a tremendous development into one of global aviation’s
hotspots, with just a few carriers dominating the picture. The carriers of Qatar and the UAE alone have hundreds of aircraft
– mostly wide-bodies – on order, showing their appetite for further, significant expansion across all continents, also making
this one of the most interesting regions to become involved in. Forecasting in this environment is therefore a special challenge, as it requires deep knowledge of the trends and strategies of key airlines.
Example Asia-Pacific:
Another frequent, but also substantial issue is the data quality.
Quite often, airports are not fully aware of the importance of collecting and checking data of the kind needed
as the foundation not only for traffic forecasting, but for virtually every type of sophisticated analysis. In these
instances, AviAlliance has had to develop methods to check provided but insufficient data and to enhance it
through other sources of market intelligence along with assumptions gained through market experience. One
notable instance of this occurred during a cargo volumes forecast for a large Asian-Pacific airport, which made
the task challenging. Fortunately, statistics from customers and customs could be obtained to create a coherent
data base. Forecasting cargo is, in itself, more complex than forecasting passenger volumes, as cargo is more
flexible in its routings, making a solid data base absolutely crucial.
mentions some of the airports of Mediterranean holiday destinations,
Schedule Analyzer), but also can serve as input to calculate process
“where the busiest months sees ten times more passengers than
requirements – and do so far more precisely than is possible with
the weakest winter months”. This, of course, needs to be reflected
established methods (AviAlliance Capacity Tool). “These tools have
in the airport design through adequate areas, processes and staff-
been specifically developed to match our needs and are designed
ing. Within the AviAlliance portfolio, Tirana International Airport is
to be highly flexible”, Lesweng says – and so far customer feedback
renowned for having a strong seasonality with a significant share of
has been very positive.
annual traffic taking place during summer holidays. By providing a
monthly traffic breakdown for the coming seasons, AviAlliance can
greatly support the airport in guaranteeing adequate service levels
even during peak periods.
T
oped several tools, which allows for the creation of a solid flight plan
Traffic forecasting is a
vital part of all effective
airport planning.
AviAlliance’s Christian
Kunsch and Markus
Lesweng prepare traffic
forecasts for airports all
over the world.
that not only delivers realistic peak hour traffic figures (AviAlliance
Photo: AviAlliance/Mike Henning
he methodology behind such a peak hour forecast is complex.
It requires consideration of the interaction between several
traffic flows in an iterative process. To achieve the most robust
results, it is also possible to create a design day schedule – reflecting
aircraft movements and passenger volumes on a typical busy day, as
it is expected for the future. For this approach, AviAlliance has devel-
25
I N T EGR A T ED SERV I CES
Aéroports de la Côte d’Azur has
decided to revamp and significantly
upsize the entire retail area in both
terminals of Nice Airport. The declared objective is to step up retail
revenues by 50 percent. AviAlliance
was contracted to analyze and
evaluate the new retail concept.
Photo: Aéroport Nice (left), AviAlliance (below)
AviAlliance reviewed
retail concept and revenue
forecast for Nice Airport
More and more people are traveling to the South of France.
The French Riviera, the Côte d’Azur, has always been a
popular and exclusive vacation destination. Since the fall of
the Iron Curtain, this trend has increased, and nowadays
there are growing numbers of Russian guests and, even
more recently, of visitors from China.
This summer, AviAlliance was contracted to
carry out a review of the planned expansion
concept. Dr. Peter Poungias, Executive Director Commercial and Property Activities
at AviAlliance: “With projects of this scale
and long-term importance, it is customary
to have existing plans appraised by an external and neutral expert. We were delighted
when Nice Airport selected us to conduct
this review.”
The project involved not only a 50-percent
expansion of the retail premises in both terminals, but also optimizing passenger flows
and processes, and restructuring and realigning the merchandise mix on offer. It is
also planned to extend the existing terminals
in order to provide the required space. For
Assignment:
Review of the retail concept and
F
the first time, both terminals will also have
or Nice Airport – the biggest airport in
walk-through stores for such core catego-
France outside Paris – this has gener-
ries as perfumes and cosmetics, wines and
ated a marked rise in passenger num-
spirits and cigarettes.
bers, for instance from 9.8 million a year in
2009 to 11.5 million at present. This not only
The task entrusted to AviAlliance was to
means more take-offs and landings but also
analyze and evaluate the new retail con-
Client:
a wealth of opportunities for other fields of
cept. The analysis covered everything from
Aéroports de la Côte d’Azur,
activity at the airport.
methodology and the selected planning pa-
the revenue forecast
rameters to the terminal design and the un-
Nice Airport
So – in addition to a number of other mea-
derlying assumptions regarding future devel-
Responsible for the project:
sures – the operating company, Aéroports
opments, and sales and revenue potential.
Filip Soete, Chief Commercial Officer
de la Côte d’Azur, has decided to revamp
For this, AviAlliance drew on the profession-
Valerie Chuong, Head of Department
and significantly upsize the entire retail area
al know-how it has accumulated over the
Development & Commercial
in both terminals during the coming three
years, its experience with relevant projects
Activities & Services
years. The declared objective is to step up
at its own airport holdings and acquisitions,
retail revenues by 50 percent.
and benchmarks.
Duration of assignment:
June to October 2013
26
INTEGRATED SERVICES
T
he results were impressive. The analysis showed that the concept already
The consumer behavior of passengers at
devised for the airport in Nice is realistic
airports traditionally tends to vary tremendously.
and workable. But AviAlliance was also able
This definitely also applies at Nice Airport.
to contribute new ideas of its own on tapping
potential to the full. Its proposals included the
Average expenditure per passenger
use of additional space, refining the proposed
French passengers: 2 euros
layout and making some minor changes in
Chinese passengers: 100 euros
the planned merchandise mix. In addition, it
Russian passengers: 130 euros
submitted some recommendations on ways
of improving the contracts to be concluded
tential that had not been spotted yet”, says
but all a project’s implications for the future.
Peter Poungias, reporting on the consulting
In this, we view operative and commercial
“What the client naturally wanted to know
assignment. This was completed in October
aspects together in an integrative manner.
was whether there were any previously un-
2013. He continues: “One of our particular
After all, what might seem like a good idea
identified risks involved in the project. And
strengths at AviAlliance is considering and
today could in a few years’ time well turn out
also, of course, if there was any upside po-
evaluating not just the individual measures
to have been an expensive misjudgment.”
with concessionaires at the airport.
Rostov-on-Don Airport to
be Russia’s first greenfield
project in over 20 years
Even before the 2014 FIFA World Cup in Brazil begins,
preparations are already well underway for the 2018
soccer event, to be staged in Russia.
warehouses, an administrative building, the
fire service, and a host of installations for
operational purposes. In all, design work
covers more than 30 structures.
The functional design process was completed just a few days ago. Now, as the
next step, the Russian operator “Airports
of the Region” (AoR) is to initiate the contract award procedure for approval planning. Construction work will have to be
commenced by next year at the latest in
order to meet the ambitious schedule. This
O
foresees that the new Rostov Airport will be
ne of the venues then will be Rostov-
ready to go into operation, with a capacity
on-Don, a city of 1.1 million inhabit-
of 5 million passengers a year, by the end of
ants in the south of Russia. At pres-
2017. Stefan Bentler, who is responsible for
ent, the soccer stadium there does not meet
the project at AviAlliance, says: “Rostov is a
requirements, so a new one is being built
very special assignment for us because it is
the first greenfield airport project in Russia
to replace it. Similarly with the local airport.
It is too close to the city center to provide
enough space for the requisite expansion
measures. So the Russian government has
decided to have a new airport built on a
greenfield site 30 kilometers away.
For this project, AviAlliance was contracted
to handle the first step: preparing the func-
Rostov-on-Don is one of the
11 cities where FIFA World Cup
matches will be held in 2018.
The others are: Yekaterinburg,
Kaliningrad, Kazan, Nizhny
Novgorod, Moscow (two venues),
Samara, Saransk, Sochi, Saint
Petersburg, Volgograd.
tional design for the new, two-and-a-half
storey passenger terminal which will have a
gross floor space of 50,000 square meters.
AviAlliance has also been commissioned to
design numerous other facilities at the airport, such as a cargo terminal, a VIP ter-
Two existing stadiums are being
renovated and ten new ones are
being built. This includes the new
facility in Rostov, which will
be able to accommodate 45,000
spectators.
minal, car-parks, maintenance buildings,
27
for more than 20 years.”
Photo: Serge Bystro
Su s tai n a b i l ity
Düsseldorf receives
Ökoprofit seal
T
his summer, Düsseldorf Airport was awarded the City
of Düsseldorf’s Ökoprofit seal for its environmental
activities. Altogether, twelve Düsseldorf companies
participated in this year’s cooperative project launched in
May by the city’s Environmental Affairs Director Helga Stulgies with the aim of encouraging business companies to
find potential for savings in their consumption of energy and
water and to improve their waste management and procurement systems.
The goal of the joint municipal-business initiative is to reduce
operating costs and ease the burden on natural resources.
In December 2011, Düsseldorf Airport had already been officially accredited at Level 1 by the Airport Carbon Accredi-
AviAlliance develops
energy and carbon
roadmap for Sydney
Sydney Airport
is improving its
footprint not
only by means of
energy saving but
also by planting
trees. For the airport, AviAlliance
prepared the new
Energy and Carbon
Strategy 2013+.
Photos: Sydney Airport
AviAlliance’s consultancy team has developed the new Energy and Carbon Strategy 2013+ for Sydney Airport. “We have
closely examined all energy-related processes at the airport
that have an impact on consumption and carbon emissions
tation (ACA) program for its efforts to manage its CO2 emissions. This February, the airport was accredited at Level 2
(Reduction). ACA is the only institutionally-endorsed carbon
management certification standard for airports.
Reduce your
footprint
and have analyzed how we can reduce or avoid negative
aspects”, says Anette Stavridis, Head of Environmental Affairs at AviAlliance. The result of this work, completed last
summer, is a roadmap that encompasses nine strategic elements. It bundles and strengthens existing initiatives, individual strategies, assessments, information, projects and
energy-saving plans, but also includes new proposals, creating a comprehensive approach for the airport’s entire energy
and carbon management.
T
he year before, Anette Stavridis and her team had
already helped Tirana Airport to achieve Airport Carbon Accreditation (Level 1 Mapping). The certificate
was awarded by the ACI (Airports Council International) in
January 2013. Prior to that, some 300 airport employees
had received training in a range of matters concerning energy saving.
For many years AviAlliance has been advising airports on
how to operate in a more environment-friendly and costeffective way.
As part of its corporate responsibility program, Tirana Airport is
also raising awareness in Albania
with regard to acting sustainably.
Campaigns and events will be used
to promote this subject, which has received little attention
in Albania to date. In summer, working in conjunction with
the Albanian Regional Environment Center, the airport invited a group of eleven- and twelve-year-old schoolchildren
to the airport so that they could learn through play about
environmental protection and resource conservation. Under
the motto of “Reduce your footprint” they were shown how
simple measures can help each individual to influence his
personal eco-footprint.
Photo: Tirana International Airport/Amand Habazaj
28
Commu n ity
AviAlliance supports
educational establishments
N
o more shivering! At a kindergarten
tance to furthering good relations between
in Vecsés, a township close to Buda-
its airports in Athens, Budapest. Düsseldorf,
pest Airport, AviAlliance has helped
Hamburg and Tirana and the communities
to ensure that in future winter will not be as
in their neighborhood.
chilly as before. It has had a modern heating
system installed there to replace the pre-
AviAlliance focuses on sponsoring schools
vious system, which was antiquated and
and other educational establishments in or-
impossible to renovate. The actual instal-
der to help children and young people take
lation of the new heating was entrusted to
full advantage of their potential and be able
a local firm.
to learn in good conditions. So as far back
The children at the Mosolyország ÓvodaLachenland kindergarten in Vecsés are
delighted that their nursery school now has
a modern heating system worth 10,000 euros.
The new system was ceremonially put into
operation on September 18, 2013, by Gerhard
Schroeder (at rear 6th from right), Managing
Director of AviAlliance.
Prior to that, AviAlliance had sponsored the
sponsorship program. Since then, it has
Some 110 children attend the kindergarten in
Vecsés, a township southeast of the Hungarian
capital and located in the immediate vicinity
of Budapest Airport. The kindergarten was
founded in 1945.
Special Education School in Koropi, a town
supported schools located in the vicinity of
Photos: Budapest Airport/Mihály Miklos
situated some eight kilometers southwest of
its airports, for instance by providing them
Athens International Airport, by providing it
with new computers and IT accessories. In
with three whiteboards. For the 120 students
addition, together with partners, AviAlliance
at the school, the new interactive boards
is engaged in carrying out repair and mod-
will facilitate modern, multi-media learning.
ernization work on school buildings in the
as 2002, the company launched a schools
region around Tirana, Albania. “Our objec“We are aware of the social responsibility
tive is to improve the quality of school equip-
which an airport bears for the people living
ment and resources and thus the learning
in its vicinity”, says Holger Linkweiler, Man-
environment for the children concerned”,
aging Director of AviAlliance. “An airport’s
says Gerhard Schroeder, also Managing Di-
development depends on more than just the
rector of AviAlliance, explaining the think-
quality of the business decisions it makes;
ing behind the company’s sponsorship
its success is also influenced by the degree
program. In recent years, AviAlliance has
to which it is accepted in its particular re-
donated a total of more than 260,000 euros
gion.” So AviAlliance attaches great impor-
to support almost 50 schools.
29
Co n s u l ti n g / t e am
AviAlliance
Integrated
Services
The name says it all: “Integrated
Services”. Since 2002, this has
been the credo under which
AviAlliance (formerly HOCHTIEF
AirPort) helps its clients to position
themselves appropriately in the
aviation market – with a seamless
spectrum of services which cover
all aspects of airport management.
AviAlliance is one of just a very
few consultants which can draw
on experience gained from its own
investments and its own operations,
so the advice we give our clients is
practice-proven. This really sets us
apart from others in this field.
Non-aviation services
ƒƒ Consulting for non-aviation activities: retail, advertising,
parking and car rental business, airport-city development
ƒƒ Strategy development, business planning and implementation
ƒƒ Peer review and benchmarking
Services relating to airport operations
ƒƒ Traffic volume potential: traffic forecasting, design flight schedule,
peak-hour assessment, airport marketing, route development initiatives
ƒƒ Airport strategy: concept of operations, capacity assessment,
operational process optimization, organizational
restructuring, terminal commissioning (ORAT)
ƒƒ Financial strategy: aeronautical charges strategy,
operational expenditures (OPEX) forecasting and
optimization, due diligence
Technical services
ƒƒ Airport planning, functional planning and detailed planning
processes, investment programs, feasibility studies
ƒƒ Planning management and construction management,
general planning for new construction and rebuilding
ƒƒ Environmental management, occupational health and
safety, sustainability planning
Services for air traffic management
ƒƒ Technical and administrative support for aviation integration at
the airport; ensuring effective coordination of airport operations,
ground handling, airline activity and air traffic services based
on information and communications management
ƒƒ Design, planning, financing and realization of advanced
integrative projects such as airport collaborative decision-
Get in touch with us
making, Total Airport Management and ground coordination
ƒƒ Assistance for airports and other aviation actors for
implementation of other location-specific features of the
AviAlliance GmbH
Single European Sky
Alfredstr. 236
45133 Essen
Germany
Financial services
Tel.:+49 201 824-1249
ƒƒ Managing corporate transactions
Fax:+49 201 824-1838
ƒƒ Long-term business planning for airport companies, but also
for business areas and units
consulting@avialliance.com
www.avialliance.com
ƒƒ Structuring and negotiation of financing
for acquisitions, projects, and corporate activities
30
F i g u r e s t h at c ou n t
Challenges of
Growth
Source: Challenges of Growth 2013, Eurocontrol, July 2012, http://www.eurocontrol.int/articles/challenges-growth
5-6
minutes
delay per flight in 2035
First estimates of the delay impact of airport
congestion on future network performance
by simulating two busy summer months show
the following: In the most-likely scenario by 2035
more than 20 airports are operating at 80 per-
1.9 million
flights cannot be accommodated
by 2035
cent or more of capacity for 6 or more hours
per day, compared to just 3 hours in summer 2012.
This drives air traffic flow and capacityattributable delay up from around 1 minute/
flight in 2012 to 5-6 minutes in 2035.
In the most-likely scenario 1.9 million flights
14.4
cannot be accommodated (12 percent of total
demand) by 2035 within the plans that airports
million
have reported.
flights in Europe in 2035
That is equivalent to an estimated 120 million
passengers unable to make their there-and-
In the most-likely scenario of the Eurocontrol
back trip. Turkey and the UK have the most
study, there will be 14.4 million flights in Eu-
unaccommodated demand.
rope in 2035, 1.5 times the 2012 volume.
17 %
increase of total capacity
until 2035
A combination of possibilities to mitigate the
That is an average of 1.8 percent increase per
challenge reduces unaccommodated demand
As a result of the banking crises and economic
year, around half the historic rate from the 1960s
by 42 percent in 2035. That would enable up
downturn, total capacity is now planned to in-
to the peak of 2008.Traffic growth will slow down
to 800,000 flights that otherwise would not be
crease by just 17 percent between 2012 and
from 2025 as markets mature, economic growth
able to operate in this scenario; perhaps 50 mil-
2035. This is significantly lower than the 38 per-
decelerates and as the capacity limits at airports
lion passengers able to make their there-and
cent increase between 2008 and 2030, re-
increasingly become an issue.
back journey.
ported in Challenges of Growth 2008.
Imprint
Responsible:
Donatella Gasser
Publisher:
AviAlliance GmbH
Project management and copy:
Communications
Donatella Gasser,
Alfredstr. 236
Anne Langensiepen
45133 Essen
Germany
Design:
heureka GmbH – einfach kommunizieren.,
Tel.: +49 201 824-1249
Essen
Fax: +49 201 824-1838
Printed by:
info@avialliance.com
druckpartner, Druck- und Medienhaus GmbH,
www.avialliance.com
Essen
© 2013 AviAlliance
31
Taking off
with a new name
and a new look
HOCHTIEF AirPort is now
AviAlliance! Our new market
identity signposts a fresh
start following our departure
from HOCHTIEF. Nothing else
changes. We will continue to
operate globally as an airport
investor and manager and
continue to focus on optimizing airports throughout their
lifecycle – for the benefit of all
concerned.
More information:
www.avialliance.com