Key Technical and Commercial Aspects in Designing a New Airport. R K Jain President Mumbai Airport
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1 Key Technical and Commercial Aspects in Designing a New Airport R K Jain President Mumbai Airport 22 nd February 2011
2 Technical Aspects
3 Planning Objectives Passenger Objectives Comfort and Convenience Ease of Access Smooth Passenger Flow Airline Objectives Efficient passenger and baggage handling Scalability Safe and Secure Operations Airport Management Objectives Smooth running of facilities during upgradation Optimum Utilisation of space and other resources Thrust on non-aeronautical avenues Effective Cost Control Community Objectives Local Touch Integral part of urban planning 3
4 Site Selection for Airport Area with sparse development least disturbance to community Climatic and topographic conditions should be compatible to aviation needs. Should be less prone to fog, haze, smoke Connectivity good ground transportation, parking facilities should be available Land for Expansion - to have buffer zones for future Airspace / other airports in vicinity essential criteria for safety as well as viability Obstructions Height restriction zones, clear approach necessary Economic construction Quality of land and vicinity to commercial hubs will ensure resources at optimum cost Utilities Power, Water and Fuel should be conveniently and adequately available Traffic potential can be exploited well if the location is ideal to meet short haul requirements too 4
5 Steps to Master Plan Peak aircraft movements and peak passenger movements for design year Collection of geographical, geological, meteorological and environmental data of the proposed airport site Finalise runway configuration keeping in view aircraft type, aircraft movements, ATC capability, geological limitations, meteorological conditions and environmental requirements Alignment of runway to coincide with prevailing wind directions Finalise and locate number of aircraft stands (remote and contact) 5
6 Step to Master Plan Configuration and quantity of taxiways Size and position of the ultimate terminal and control tower Aligning ultimate terminal building and piers to service aircraft stands Position of fire services Size and position of Airport Support Processes Positioning of Cargo and Express Facilities Terminal and stands and Aircraft Maintenance Hangars 6
7 Key Technical Aspects Key Technical Aspects Determinants Runway / Taxiway -No. of Runways Layout -Layout and Spacing of Runways -Runway Occupancy Time -Approach Spacing -Rapid Exit Taxiways -Mode of Operation, i.e. Segregated or Mixed -Intersecting Point of Intersecting Runways Road / Rail Access -Planning to avoid congestion near the Passenger Terminal -Separate road system for support facilities -Clear and properly lighted signposts on public roads -Car Park location close to the Passenger Terminal -Connection from Car Park to Terminal to have weather protection -Adequate and weather-protected Curbside -Hi-speed rail system for airport access -Airport rail station should be above ground if possible 7
8 Key Technical Aspects Key Planning Determinants Items Terminal Design -All Terminals inter-connected -People mover system for long walkways -Alliances to be located together -Easy orientation for public outside and within terminal buildings -Shortest possible walking distances from car park and rail station -Minimum level changes for passengers -Avoiding passengers cross-flows -Compatibility with present aircraft characteristics and flexibility to accept future generations of aircraft, as far as possible -Modular design to meet future expansion requirements -Disabled persons friendly -Religious requirements -Sufficient space for regulatory agencies like Customs, Immigration, Plan Quarantine, Tax, Intelligence -Designed for peak hour passenger handling Balance between functionality and aesthetics 8
9 Key Technical Aspects Key Planning Items Check-in Hall CUTE Signage Determinants -Consultation with airlines and handling agents -Adequate baggage conveyance facility -Adequate Baggage Trolleys on Curbside, Car Park and Rail Stations -Adequate Departure Flight Information within Check-in Area as well as Info Kiosks -Provision of Self-Service Check-in Kiosks -CUTE vendor selection with co-operation with airlines -Signage system to be separate from advertising -Airline Brand Name and Logos to be clearly visible -Consistent use of standard terminology including pictograms -Signposts should be in mother tongue and English 9
10 Key Technical Aspects Key Planning Determinants Items Security -ICAO Annex 17 requirements should be met -Centralised / Semi-centralised passenger and carry-on baggage security check is preferable -Transit passengers requirements -Inter-terminal transfers Baggage Handling System (BHS) including Hold Baggage Screening (HBS) -High performance reliability -Selection of supplier early in the project to avoid expensive re-design -Simple and rapid baggage flow -System to be consistent with apron arrangements -Minimum number of turns and level changes -Baggage flow not to conflict with flow of passengers, cargo, crew or vehicles -Provision for forwarding or transfer of baggage -Facilities for over-sized baggage -Each check-in counter to have take-away conveyor -Sufficient redundancy and plans for fall-back handling in case of failure 10
11 Key Technical Aspects Key Determinants Planning Items Airline Offices -Sufficient space for airline offices -Individual airline space requirements may be obtained Airline CIP Lounges Terminal Retail Space -Location on the airside of the terminal building -Location preferably on departure level with convenient access to departure gates -Details of space requirements to be obtained -Maximum exposure to the passenger and visitor without interfering with the flow of passenger traffic Departure Gate Lounges -Sufficient seating capacity (about 70% passengers) -Facilities like working positions with modem / internet and power connection, TV sets, smoking areas, children play areas and retail / food concessions 11
12 Key Technical Aspects Key Planning Items Baggage Claim Hall Meter / Greeter Hall Determinants -Separate claim units for over-sized baggage -Enough space between baggage claim units for passengers, trolley storage and circulation -Sufficient number of baggage trolleys at the entry of baggage claim hall -Sufficient space after customs clearance to allow arriving passengers to avoid congestion around the exit doors -Facilities for purchase of local currency before proceeding to the curbside -Provision of a meeting point -Other facilities like toilets, F&B, Car rentals, hotel reservation, etc. -Clear signage to taxi, buses, rail station, car parks 12
13 Key Technical Aspects Key Technical Aspects Apron Layout Aircraft Servicing Installations Determinants -Sufficient number of stands -Flexibility of stands to handle different types of aircraft -Ease of aircraft circulation and maneuvering, including pushback -Provision of maximum possible terminal contact stands -Clear marking of service roadways -Clear marking of equipment staging and parking areas -Fixed aircraft servicing installation after appraising economic prospects -Such installations include hydrant fuelling system, electric power system (400 Hz), electric power system (50/60 Hz), pre-conditioned air system, aircraft docking guidance system -Cables / hoses between the aircraft and installation should be as short as possible -Operation not to impede other aircraft servicing, functions -Not to impede flow of apron traffic 13
14 Key Technical Aspects Key Technical Determinants Aspects Location of Support -Facilities like cargo terminal, flight kitchens and Facilities aircraft maintenance facilities should be located close to the terminal apron after considering future expansion plans General -Social and environmental impact statement and recommendations -Energy consumption optimisation -Noise reduction plans -Environmentally sensitive land issues -Construction Period strategies to minimise disturbance to local communities 14
15 Commercial Aspects
16 Introduction Privatised airports are facing a increased pressure on developing and operating an airport which triggers increasing expectations for non aeronautical revenues Whereas travel retail market represent a high potential for growth, many airports have not yet maximised the revenue opportunity. There are essentially 8 drivers for maximizing commercial revenues in a new airport
17 Transition in airport operating model 1970 Primary Focus on Aeronautical Revenues Airport retail categories : F&B, News, Gifts & Confectionery, Perfumes & Cosmetics, Jewellery, Convenience & Fashion Airports focus on passenger capacity & operations Share of non-aeronautical revenues < 10% Phase of slow growth in terms of retail sales, passenger numbers and commercial aeroplanes 1990 Shift in focus to revenue and profitability New airport retail categories: Medical centres, Entertainment, Golf, Business Centres, Wellness and Fitness Airports focus on non-aeronautical revenues and increase passenger-related revenues Share of non-aeronautical revenues > 30% Non-aeronautical gaining importance with some airports having achieved higher share; phase of commercialisation & privatisation of airports 2010 Strategy of reducing dependence on aviation business Concept of "airport cities" or "aerotropolis" gaining importance Airports target to create experience; concept of airport branding Airports focus to increase revenue from non-aeronautical services that do not cater to the traveller directly Target to take share of non-aeronautical revenues to > 70% 17
18 Key drivers to airport retailing Passengers profile / airline marketing Airport lay-out Retail planning Retail size Sense of Place Traffic growth, domestic vs., international, % of transit, origins Drive optimal flow of passengers to the retail area, encourage dwell time, Shape of the retail lounge (compact and central), mix of retail, F&B and services To allow a variety of concept and brands without multiplying queuing and transaction numbers Use dramatic scenography to drive passenger animation and excite his inclination for shopping (he is here for travelling not for shopping) Retail Mix Passenger segmentation, consumer research..., innovation in concepts and brands, Airport processing Concession model Efficient operations to increase dwell time and decrease stress levels Concession vs. Joint venture, tender process and selection criteria..
19 Airport lay-out Create optimal flow of passengers through the retail environment Walkthrough duty free Multi-brands stores Cross category concept stores Whilst maximizing dwell time There is an effective correlation between the reasons for visiting/not visiting shops and the passenger available time. (40% of visiting shops and 60% for not visiting (Source MIAL Passenger Research - existing terminals 2010) Harmonizing operations and commercial objectives
20 Research Dynamics:Consumer shopping window One of the key factors driving consumer spend and shopping behavior at the airport is time. 20
21 An efficient signage can also increase dwell time Efficient signage and time to gate can increase dwell time by allowing passengers to manage their time and reassure them. Shorten distances with travellators
22 Security check / Border FOD COURT AND RESTAURANTS Boarding Retail Planning Living and waiting areas Last Minute WALKTHROUGH DUTY FREE CENTRAL SPACE Buffer zone Core Business PREMIUM/ LUXURY AREA Lifestyle seating and services Convenience, leisure & destination merchandising Coffee shops, bars Last Minute
23 Retail : The New Living-Lounge The central retail lounge is increasingly developed as the primary lounge, mixing services and lifestyle seating to encourage passengers to dwell and be in contact with the commercial offering. With the presence of advertising and brand animations, the environment is transforming retail in entertainment
24 Retail Size The average retail space ratio have increased in the last 5-10 years. In average, international benchmarks evolve From 600 to 1000 sqm/ Million Departing Passengers (MDP) for retail (higher in Asia as compared to Europe due to the importance of the fashion/ luxury segment) From 400 to 500 sqm / MDP for Food & Beverage Larger areas allow: to offer a wider assortment to match a larger variety of passengers (from convenience items to luxury brands) to include animation and services to slow down the flow of the passenger and attract his attention with novelty
25 Sense of Place & Design Elements The sense of place is developed in the assortment with local brands and products but is also enhanced with a dramatic architecture on ceilings and floorings, landscaping and shop pilasters... And anything that can capture the travellers attention
26 Retail Mix Passenger segmentation To identify the different shopper s profiles understand their attitudes & behaviours, motivations and barriers to shop at the airport, usages and expectations (products & services, brands, shopping experience, ) Size the opportunity Size of the category and revenue potential Category strategy Price, assortment, Shop format Concession guideline to provide the design aspirations, ambiance and merchandising
27 Research Dynamics Buying Behavior Most attractive segments % of business travelers Description Attitudes Independent value I don t spend any more than I have to Price is ultimate amenity Least frequent travelers of all segments Least likely to travel long haul Primarily book on website or over phone Primarily book directly with hotel via phone or website Lowest user of hotel facilities and services Lowest membership in loyalty programs Practical/self-directed I know what I m doing and can take care of myself Do not expect special treatment Interact with employees only if there is a problem Not willing to pay for a better travel experience Strong preference for and most likely user of automated functions (e.g., check-in kiosks) Heavy short haul business traveler Member of multiple loyalty programs Comfort/reassurance I need to be taken care of Expect special treatment because high-fare travelers Least likely to use automated functions (e.g., kiosks) Desire personal attention Looking for comfort and productivity Consider low-budget travel a sacrifice Willing to pay (or have company pay) for better travel experience Heaviest users of corporate travel and travel agents Status/comfort I expect special treatment for my loyalty Travel more on average than other segments Expect special treatment in exchange for loyalty Consider low-budget travel a sacrifice Looking for productivity, comfort, and pampering Like to be productive when traveling Heaviest user of hotel facilities and services Member of multiple loyalty programs Requires convenience shopping only Occasional luxury shopper Likely luxury and gift shoppers but need to have offering close to lounge or en route to gate * Measured by percentage of customers from each brand who fall into each segment Source: Firm business traveler research (October 2005) 27 27
28 Airport Processing Located just before the retail area, the airport processing stage is one of the most critical and stressful for passenger and will impact passengers propensity to purchase or not. Check-in Access Security Retail area Boarding Immigration A strong harmonisation of operational and commercial strategies are key IATA Fast travel Check-in (check-in kiosks, 2D bar code, CIP check-in) Security (locate before immigration to diminish the stress of passengers before entering the retail area, fast track lanes,..) Immigration (biometrics, E-gates) Baggage (baggage drop-off, porters..)
29 Concession Model CONCESSION MODEL Shops are run by (specialized) airport retailer or brand owner. Concession rents are paid to the airport JOINT-VENTURE Retailer and airport set up joint venture which runs operations and pays concession to the airport Business Model Rent per sqm; Revenue share; Fee varies per category of products Minimum guarantee Contract duration from 5 to 10 years Business Model Same as concession Model Benefits Greater incentive on performance (retailer risks loosing his investment if he is not performing) Benefits Improved partnership Longer term for the retailer Profit sharing
30 Concept Strategy Introduce first ever international brands Bring best of local brands in an airport format (necessity to adapt their assortment) Introduce innovative concepts (category management) Maximize merchandising Bespoke services Use of technology for quicker transactions and enhance the passenger experience
31 Thank you 31
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