Master System Integration MANAGING AIRPORT CONSTRUCTION RISK POSITIONING PAPER

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1 Master System Integration MANAGING AIRPORT CONSTRUCTION RISK POSITIONING PAPER

2 POSITIONING PAPER MASTER SYSTEM INTEGRATION: MANAGING AIRPORT CONSTRUCTION RISK SITA 2014

3 CONTENTS Executive summary 4 New airport construction 5 Increasing airport capacity 5 Central role of technology in airports 5 Risk management in airport construction 6 Managing multiple suppliers and trades 6 SITA airport MSI: reduce risk in airport construction 7 Integration into the building program 7 Airport technology integration 7 Why SITA? 8 Creating the airport of tomorrow 8 Our global MSI experience 10 Experience in Europe: Program and vendor management excellence for new terminal at Dublin Airport 10 Experience in South America: New airport complete phased replacement in urban environment 10 Experience in the Middle East: End-to-end integration to create an airport of the future 11 Cover picture: Dublin Airport Authority POSITIONING PAPER [DOCUMENT MASTER SYSTEM DESCRIPTION INTEGRATION: FOOTER) MANAGING SITA AIRPORT 2013 CONSTRUCTION RISK SITA

4 EXECUTIVE SUMMARY No other building which is open to the public has a greater reliance on technology than the modern airport, which makes their construction more complex than other comparable projects. SITA has developed the Airport MSI (Master System Integration) solution to help airport operators minimize the business risk of delays in airport construction. Picture: Dublin Airport Authority Airport MSI incorporates both a full range of airport technology and the program management capability to deliver an end-to-end integrated solution. In effect through Airport MSI, SITA brings together all the technology suppliers into a single program of works that integrates into (and informs) the construction contractor s master building plan. 4 POSITIONING PAPER MASTER SYSTEM INTEGRATION: MANAGING AIRPORT CONSTRUCTION RISK SITA 2014

5 NEW AIRPORT CONSTRUCTION Airports are a driving force for the global economy, moving goods and passengers worldwide, they are the first part of the country that many travelers see and can be a source of national and local pride. Their construction involves many different stakeholders, including local and central governments, construction companies and airport operators. The average life-span of an airport terminal is around 30 years, which means that many airports are due for renovation or complete replacement. They might not even meet modern building requirements or be designed to maximize passenger throughput or revenue. According to the CAPA Airport Construction and Capex database 1, as of the beginning of 2014, there were over US$ 385 billion of airport projects in progress globally. The market is being led by Asia with over US$115 billion worth of new projects, with China alone planning 69 new regional airports. While the development of major airports are often tied to events such as the Olympics or the FIFA World Cup, one of the main drivers for airport construction is the continuing growth of passenger numbers. According to IATA 2, global passenger traffic has increased by around 5% in in recent years, driven by growth in emerging markets. INCREASING AIRPORT CAPACITY The role of an airport terminal is to process passengers, baggage, cargo and aircraft as quickly as possible. The more efficiently this is done, the more revenue the airport can generate. Furthermore, improving the passengers experience at the airport increases their loyalty and encourages spending in retail areas. Once an airport has reached capacity and exhausted all available modern techniques to improve throughput, the operator will need to build either a completely new airport or an additional terminal. Hub airports have even bigger demands on their capacity, with their need to handle a large proportion of transit passengers. In addition, new larger aircraft such as the Airbus A380 and Boeing 777 require that airports provide more space at gates, longer runways and extra capacity to handle more passengers. CENTRAL ROLE OF TECHNOLOGY IN AIRPORTS Technology has played a central role in the transformation of airports from simply providing space for airlines to land and take off to being the massive commercial operation that we see today. SITA has been at the forefront of this transformation with the development of shared technology infrastructure, including CUTE in the 1980s. Today, technology in an airport is focused on the goals of improving passenger and baggage throughput, ensuring the rapid turnaround of aircraft and providing an enhanced customer experience. Examples include speeding up passenger check-in and boarding, optimizing aircraft servicing and loading, embracing the digitally connected passenger, and creating a personalized airside retail experience. Essentially, technology can generate strategic business value. It can drive out cost from the terminal operation through the injection of staff and resource efficiencies, grow aeronautical revenue by increasing throughput with commonuse platforms, and increase non-aeronautical revenue by creating an efficient, hassle-free, and personalized passenger experience. Compared to retrofitting a suite of modern airport technology into an existing terminal, there is a significant cost-benefit to be realized by deploying the technology into a terminal while it is being constructed. Hence, engaging with the right technology partner right through the construction phase will create the most value for the construction program. It will also provide the greatest opportunity to deliver a truly intelligent airport terminal. 1 CAPA Center for Innovation Airport Construction and CAPEX database ( 2 IATA Air Passenger Market Analysis ( economics/documents/passenger-analysis-dec2013.pdf) MASTER POSITIONING SYSTEM PAPER INTEGRATION: MASTER SYSTEM MANAGING INTEGRATION: AIRPORT CONSTRUCTION MANAGING AIRPORT RISK CONSTRUCTION SITA 2014 RISK SITA

6 RISK MANAGEMENT IN AIRPORT CONSTRUCTION However, the high concentration of technology in airports combined with large numbers of stakeholders poses a unique challenge for their construction. The primary requirement for any construction project is that the building is delivered on time and on budget. Airport terminal construction projects can have a program run-rate that is as much as US$1 million per day, so it is imperative to eliminate the risk of any delay. A proper governance model and communications strategy is required to set and manage expectations for the wide range of stakeholders involved in any new airport project. For example, how does the contractor react and organize after unforeseen issues present themselves, while burdened with a politically-engaged and committed opening date? Nothing shuts a construction site down faster than a health and safety incident or violation. To minimize this risk, it is essential that stringent and proactive management is everpresent. MANAGING MULTIPLE SUPPLIERS AND TRADES A vital component of success in the airport program is achieving a consistent level of performance from the myriad of trades working within the building program, all with differing methods of work. The main contractor is responsible for appointing and sequencing the various master trades. These include foundations, structural steel, mechanical electrical and plumbing (MEP) as well as finishing. For airports, contractors need to appoint a whole range of additional technology trades. Traditionally, they appoint airport technology individually, which often results in silos of technologies being designed and installed by multiple, independent and unrelated organizations. This creates a serious risk that the technology systems for the airport are not ready for operational service at the right point in the construction schedule. In addition, if suppliers are involved later on in the airport project, the risk of delays will increase. Typically only a short period is allowed for the systems deployment and construction delays will squeeze this window further. Systems need to be adequately tested before the airport opens to prevent any failure or malfunction at airport opening. Any systems failure can have a significant financial and reputational impact. KEY BUSINESS CHALLENGES FOR AIRPORT CONSTRUCTION Cost containment and budget over-run, Stakeholder management, Supplier management and inter-trade coordination, Schedule management, Health & safety management, And related to technology: system interoperability & stakeholder usability. Picture: Dublin Airport Authority 6 POSITIONING PAPER MASTER SYSTEM INTEGRATION: MANAGING AIRPORT CONSTRUCTION RISK SITA 2014

7 SITA AIRPORT MSI: REDUCE RISK IN AIRPORT CONSTRUCTION SITA Airport MSI is an airport technology design, build and transfer process that is targeted specifically at new airport and terminal construction. It effectively creates a single master technology trade that integrates into the master building program. This is the key to minimizing the risks that are associated with airport construction. The SITA Airport MSI process starts on the completion of the design of a new terminal and continues to the end of construction, and beyond. SITA assumes responsibility for the production design, supply, and delivery of passenger terminal technology and ensures proper alignment of the technology to the airport s concept of operation. The program is designed to both address business requirements around the construction of the new airport and the operation of the airport terminal once construction is complete. PROGRAM INTEGRATION VS TECHNICAL INTEGRATION Within SITA Airport MSI, integration addresses two different practices, which each target a specific community of stakeholders in the terminal s construction. The first is program integration. This refers to blending the project management of multiple technology work packages into a consolidated whole for onward integration into the construction company s terminal building program. This aspect of integration is relevant for both the airport operator s engineering division and the general building contractor in charge of the overall construction project. The second is technology integration. This refers to the stitching together of disparate technologies, platforms and systems in order to share data, functions or events to support the airport business processes. This aspect of integration is crucial for airport operators and other stakeholders, such as airlines, ground handlers and security. INTEGRATION INTO THE BUILDING PROGRAM Through SITA Airport MSI, a single organization is responsible for managing and sequencing all of the different technology trades. This is a significant reduction in complexity, because SITA ensures that the myriad of trades are integrated into one consistent program of work. In addition to consolidating contracts and providing economies of scale, Airport MSI decreases the time needed for technology integration, thereby reducing overall schedule risk. It ensures a consistent, high level of performance in the critical areas of schedule management, stakeholder management, quality management and health & safety management. SITA Airport MSI also offers a number of program innovations that improve inter-trade coordination. They are aimed at eliminating the risk of critical path slippage from handover over dependencies between trades. To achieve this, SITA coordinates with relevant master trades such as building fabric and electrical services to ensure that they meet the requirements of the technology installation. AIRPORT TECHNOLOGY INTEGRATION As part of Airport MSI, SITA provides a comprehensive set of modular airport technology using a delivery program customized to a construction environment. This includes pre-integrated systems from SITA s broad portfolio along with best-in-class third-party technology. Relevant SITA technologies include airport management, passenger processing, baggage management and airport infrastructure management. The custom technical integration model interlocks airport operation to the design and deployment of the technology. This maximizes the operational efficiency of the airport, supports collaboration between different stakeholders and improves the passenger experience. In addition, technology from the Airport MSI program can increase the capacity of a new terminal by as much as 20% for passengers, baggage, and aircraft. MASTER POSITIONING SYSTEM PAPER INTEGRATION: MASTER SYSTEM MANAGING INTEGRATION: AIRPORT CONSTRUCTION MANAGING AIRPORT RISK CONSTRUCTION SITA 2014 RISK SITA

8 WHY SITA? SITA combines unparalleled airport business knowledge, breadth of airport technology, and experience in airport terminal construction in Airport MSI. Through the solution, we coordinate systems deployment and integration in step with the master building plan to ensure the successful on-time completion of the entire airport project. SITA has relationships with all of the stakeholders involved in the airport business, including airlines, ground crew, governments and border agencies. In addition, we have the largest resource pool in airport technology, allowing us to scale up quickly if additional resources are required to meet shortened lead times. AIRPORT MSI IN BRIEF SITA Airport MSI is a customizable blend of integrated professional services and technology, tailored to meet the needs of a new terminal or airport construction. The solution provides a one stop shop for the operators as well as construction companies looking for a proven, low-risk partner to design and deliver the technology for their airport or terminal, on time and in budget. Airport MSI includes a range of SITA and third party airport terminal IT and communications technologies along with a single program management and master system integration effort to deliver them. It allows airports to access new capacity on average six months earlier than expected and mitigate the risk of US$1 million per day that delays can cost construction companies. Our program integration methodology can save approximately 30% of the total cost of delivery of technology when compared to sourcing and delivering technology piecemeal. And our technical integration methodology and solutions can increase the operational throughput of an airport terminal by as much as 20%. WE COORDINATE SYSTEMS DEPLOYMENT AND INTEGRATION IN STEP WITH THE MASTER BUILDING PLAN TO ENSURE THE SUCCESSFUL ON-TIME COMPLETION OF THE ENTIRE AIRPORT PROJECT CREATING THE AIRPORT OF TOMORROW We are a technology company dedicated to the air transport industry with a unique understanding of the day-to-day complexities of running an airport. We are the leader in common use self-service solutions (CUSS/CUPPS) which give passengers more choice, and greater control of their journey. With the development and implementation of new technologies, such as business intelligence, NFC, Google Glass wearable technology and beacons we are shaping tomorrow s airport today. We provide airport solutions that simplify complexity and help drive commercial success. Our integrated management system, installed in over 150 airports worldwide, enables airports to optimize operating costs through effective planning. With our unrivalled agile and shared network infrastructure, airports can offer a more tenant-friendly environment to generate more non-aeronautical revenue. SITA is the first choice for airports looking to increase efficiency and effectiveness in their processes and infrastructure. Our integrated solutions cover all operational and commercial needs. We make it easy for airports to better manage their resources and infrastructure, to scale up and down their operations and manage effectively disruption. With a 98.2% satisfaction rating, and experience in over 1,000 airports of all sizes throughout the world, we are the leading ICT provider for airports. 8 POSITIONING PAPER MASTER SYSTEM INTEGRATION: MANAGING AIRPORT CONSTRUCTION RISK SITA 2014

9 MASTER POSITIONING SYSTEM PAPER INTEGRATION: MASTER SYSTEM MANAGING INTEGRATION: AIRPORT CONSTRUCTION MANAGING AIRPORT RISK CONSTRUCTION SITA 2014 RISK SITA

10 OUR GLOBAL MSI EXPERIENCE Read our selected use cases of how we have helped airports enjoy next-generation terminals using SITA Airport MSI. EXPERIENCE IN EUROPE: PROGRAM AND VENDOR MANAGEMENT EXCELLENCE FOR NEW TERMINAL AT DUBLIN AIRPORT Dublin Airport is the gateway to Ireland and increasingly a hub for transatlantic flights. In 2005 Dublin Airport Authority (DAA) started a program for a 600 million new terminal and pier, which increased the airport s capacity to up to 35 million passengers a year. The 75,000 sq. ft. new terminal has 58 check-in desks, with provision for self-service, online check-in and baggage drop. The terminal also houses a US Customs & Border Protection (CBP) facility where passengers flying to the US can clear both immigration and customs before departure. To ensure that all systems work together effectively and would be ready on opening day, DAA chose to out-task IT to a systems integrator. SITA was chosen based on experience as an airport systems integrator and track record in delivering large projects in a multi-vendor environment. We provided systems integration for: Communications services including LAN, Wi-Fi, IP telephony, master clock and aerial systems for cellular and professional radio Passenger processes including ICISS (Internet checkin scanning systems), passenger information display terminals and a baggage management system with bespoke software for capturing checked baggage details for US Customs & Border Protection use Security systems including closed circuit television (CCTV), access control, security search and display systems for the operations control center Our program integration methodology was key in the successful deployment of the airport IT systems in line with the building program. We managed 14 different suppliers as part of the project and were recognized for our expertise in health & safety management. EXPERIENCE IN SOUTH AMERICA: NEW AIRPORT COMPLETE PHASED REPLACEMENT IN URBAN ENVIRONMENT Originally built several decades ago, this airport in South America reached capacity in the middle of the 2000s driven by a booming economy. To meet increasing passenger demand, the operator started a major expansion plan, which would see the size of the airport almost triple. The operator wanted to physically expand the airport within the constraints of a fully-developed urban landscape. To achieve this, it devised a plan whereby modernization would be implemented in phases around the existing terminal, which would be entirely replaced. The challenge was to maintain seamless operations in the existing airport during the construction. SITA was chosen provide the technology integration and management for the airport project. This included an extensive range of passenger processing solutions. A key benefit of SITA Airport MSI integration and implementation strategy in the project was the high degree of flexibility it provided. This allowed SITA to accommodate each phase of construction, ensuring a seamless transition while guaranteeing maximum operational effectiveness. Picture: Dublin Airport Authority 10 POSITIONING PAPER MASTER SYSTEM INTEGRATION: MANAGING AIRPORT CONSTRUCTION RISK SITA 2014

11 EXPERIENCE IN THE MIDDLE EAST: END-TO-END INTEGRATION TO CREATE AN AIRPORT OF THE FUTURE A leading airport in the Middle East chose SITA to help develop a new terminal, which would double the number of passengers it processed. The project was initiated by a consortium of local and regional companies, which brought together regional investors, international experts in construction and airport operations to manage and redevelop the country s premier gateway. SITA was responsible for the program management and integration of various systems throughout the airport from different providers via Airport MSI. The end-to-end solution included check-in counters, departure gates, transfer desks, self-service kiosks, back office workstations and flight display screens across the entire airport. These systems are vital to run airport operations efficiently, allowing collaboration between many different stakeholders. POSITIONING PAPER MASTER SYSTEM INTEGRATION: MANAGING AIRPORT CONSTRUCTION RISK SITA

12 SITA AT A GLANCE The air transport industry is the most dynamic and exciting community on earth and SITA is its heart. Our vision is to be the chosen technology partner of the industry, a position we will attain through flawless customer service and a unique portfolio of IT and communications solutions that covers the industry s every need 24/7. We are the innovators of the industry. Our experts and developers keep it fuelled with a constant stream of ground-breaking products and solutions. We are the ones who see the potential in the latest technology and put it to work. Our customers include airlines, airports, GDSs and governments. We work with around 450 air transport industry members and 2,800 customers in over 200 countries and territories. We are open, energetic and committed. We work in collaboration with our partners and customers to ensure we are always delivering the most effective, most efficient solutions. We own and operate the world s most extensive communications network. It s the vital asset that keeps the global air transport industry connected. We are 100% owned by the air transport industry a unique status that enables us to understand and respond to its needs better than anyone. Our annual IT surveys for airlines, airports and passenger self-service are industry-renowned and the only ones of their kind. We sponsor.aero, the top-level internet domain reserved exclusively for aviation. In 2013, we had consolidated revenues of USUS$1.63 billion. For further information, please contact sita by telephone or Americas Asia Pacific Europe Middle East, India & Africa For further information, please visit For further information on Airport MSI, pleas visit: Follow us on SITA 2014 All trademarks acknowledged. Specifications subject to change without prior notice. This literature provides outline information only and (unless specifically agreed to the contrary by SITA in writing) is not part of any order or contract.

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