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THE AIRPORT
OPERATOR
THE OFFICIAL MAGAZINE OF THE AIRPORT OPERATORS ASSOCIATION
AIRPORTS
INVESTMENT BOOM
Multi-billion plans
Features
EDINBURGH AOA MANIFESTO
Recipe for success Ambitious agenda
CORNWALL AIRPORT NEW AIRPORT CHIEF
NEWQUAY EXECUTIVES
SUMMER 2017 Fastest-growing UK airport Sinclair heads for London City
ADVERT
3
ED ANDERSON
Introduction to the Airport Operator
THE AIRPORT
OPERATOR Welcome invisible infrastructure in the sky that
has changed little since the 1960’s,
THE OFFICIAL MAGAZINE OF THE AIRPORT OPERATORS ASSOCIATION to this renewed our call for a 50% cut in Air
Passenger Duty and emphasised the
AIRPORT OPERATORS ASSOCIATION edition importance of having a well-resourced
Ed Anderson of the Border Force that will be able to cope
with increased passenger flows.
Chairman
Karen Dee
Operator, As I write this introduction, the
Chief Executive which is Government is embarking on the first
stages of what will no doubt be a long
Peter O’Broin
Policy Manager
published and complex negotiation to implement
online on the occasion
the referendum vote for the UK to
Henk van Klaveren leave the European Union. The AOA
Public Affairs & PR Manager
Roger Koukkoullis
of the summer 2017 has worked hard over recent months
to explain to officials and politicians of
Operations, Safety aviation Parliamentary all parties that aviation currently relies
& Commercial Director on the legal framework provided by
Claire Humphries
reception. EU-level air services agreements for
Events & Member Following the General Election the flights to over 40 countries. We have
Relations Manager reception will provide us with a timely also emphasised that early certainty on
Patricia Page opportunity to meet newly-elected how these agreements will be replaced
Executive Assistant and re-elected MPs and to explain is vital, as airlines typically plan their
& Office Manager how the Government and Parliament routes 12 to 18 months in advance.
Avni Patel can take action that will enable UK I am pleased to report that these
Accounts Executive aviation to continue to flourish. points now seem to be increasingly
well-understood in Whitehall and
We are delighted that Chris Grayling,
AIRPORT OPERATORS ASSOCIATION Westminster and especially in both
who has been reappointed as Transport
3 Birdcage Walk, the Department for Transport and
Secretary, has confirmed that the
London SW1H 9JJ the Department for Exiting the
Department for Transport will be
United Kingdom European Union, whose Secretary of
pressing ahead with its plans for a new
State, David Davis, has referred to the
Aviation Strategy. That will set a policy
T: +44 (0)20 7799 3171 aviation sector as a priority on a par
framework for our sector for the coming
E: info@aoa.org.uk with financial services.
decade and we will be responding to
F: +44 (0)20 7340 0999
all the forthcoming Aviation Strategy In addition to lobbying on Brexit and
W: www.aoa.org.uk
consultation documents. the Aviation Strategy, this has been a
busy spring and summer for the AOA
During the election campaign we
Michael Burrell
team and its new Chief Executive,
published our own AOA manifesto for
Editor Karen Dee, on many fronts. In May
UK airports, setting out a five-point
we co-ordinated an exceptionally
plan for the incoming Government. You
impressive Airports Safety Week, with
can read more detail on that elsewhere
airports around the country delivering
THE AIRPORT OPERATOR in this edition, but, in summary, our
MAGAZINE IS PRODUCED BY a huge variety of imaginative activities
manifesto covered a framework for that attracted attention not only from
airport growth across the country, the airport-based staff, but also from
impact of Brexit on aviation, airspace passengers, local communities and
Shimon Speigel modernisation, Air Passenger Duty and other European airports.
Creative Director the UK’s border regime.
The AOA also delivered specialist
Jessica Horton We emphasised the key role that conferences for our members on the
Graphic Designer airports play in helping to deliver environment, security and operations
GENIUM the connectivity that the country and safety and began the planning for
Studio 27 needs for a successful economy our annual conference, which is to be
Quadrant Business Centre and we explained why it is vital that held in a new venue this year on 30
135 Salusbury Road the Government should prioritise a and 31 October.
London NW6 6RJ
new legal framework for the UK’s
Meanwhile, I wish all of you a successful
T: +44 (0)20 7089 2622 international aviation connectivity
and prosperous summer season.
E: hello@geniumcreative.com after Brexit. We set out a vision for
W: www.geniumcreative.com modernising the UK’s airspace, the Ed Anderson, AOA Chairman
4
THE AOA IS PLEASED TO WORK
WITH ITS CORPORATE PARTNERS, AND
GOLD AND SILVER MEMBERS
Corporate Partners
Gold Members
Silver Members
WWW.AOA.ORG.UK
5
ANNUAL CONFERENCE
BOOKING OPENS
Booking has opened for the AOA Annual Conference 2017
to be held on 30 and 31 October at a new venue
– the completely refurbished Royal Lancaster Hotel,
overlooking London’s Hyde Park
D
elegates who book by 13 & Policy at the Department for Security at the Civil Aviation
September will be able to Transport; Ian Jopson, Chair of Authority and Phil Williams, Head of
save £155 on places at the Sustainable Aviation and Head of the Risk Assessment and Incident
conference, dinner and awards Environmental & Community Affairs, Response team at the Department
ceremony – which this year will, for NATS; Tim Johnson, Director for Transport.
the first time, include three awards of the Aviation Environment
for Airports Safety Week events. Federation; Carrie Harris, Group Rounding off the trio of specialist
Sustainability Manager, IAG and conferences for 2017 was the
The October conference will speakers from London City Airport, well-established Operations and
conclude a bumper year for AOA Gatwick, London Luton Airport and Safety Conference, held in June at
conferences, which began in April Manchester Airports Group. Carden Park Hotel, near Chester,
with an environment specialist and attended by over a hundred
conference, held at The Crystal, Next up was the security delegates and eight exhibitors. The
East London, which describes conference, held in May at Mottram subjects discussed included remote
itself as “one of the world’s most Hall, Cheshire, and sponsored digital control towers and drones.
sustainable buildings”. by Rapiscan Systems. A panel The well-received keynote speaker
discussion on the rising threat was Robert Kay, Airbus UK’s Chief
Issues discussed by the 70+ to airport operations from cyber Engineer, who offered a compelling
attendees included sustainable security attracted a lot of attention. vision of future aviation trends. There
growth, climate change adaptation Other topics discussed included the were also presentations from NATS,
and mitigation and progress in opportunities and threats caused by the Civil Aviation Authority, Heathrow
cutting electricity, gas and water the rapidly growing drone market, and London Luton Airports.
usage. The speakers included Tim landside security and domestic
May, Director for Aviation Policy extremism. Speakers included
Click here to register today
& Head of Airports Noise Strategy Peter Drissell, Director of Aviation
THE AIRPORT OPERATOR SUMMER 2017
6 WWW.AOA.ORG.UK
7
GORDON DEWAR’S
RECIPE FOR SUCCESS
The fastest growing airport in the UK for international
passengers – up 21% in a year – is Edinburgh and Gordon
Dewar, its Chief Executive, is very clear how that was achieved
I
t is, he says, down to the quality of ceased to be part of the group of different culture: “Today the
his team, the commercial data- airports owned by BAA and become a underlying culture is that we are a
driven culture of today’s airport stand-alone enterprise with complete data-driven organisation. We hire
and the natural advantages of its responsibility for its own future. good analytical talent who develop
position close to Scotland’s dynamic a good understanding of what
capital city. He believes that the new owners, the opportunities are and then we
Global Infrastructure Partners, execute well. A key part of that is that
When Dewar took over as Chief recruited him because he had we are taking high quality data to
Executive in 2012, following BAA’s become a tried and tested airport airlines to give them confidence that
decision to sell Edinburgh, the operator, with six years’ experience they will make money in Edinburgh”.
airport boasted 9 million passengers (initially at rival Glasgow Airport),
a year. Today that figure has risen because he already knew about Developing a long pipeline of
sharply to over 12 million and further Edinburgh Airport as a business prospects requires excellent evidence
international growth looks certain. and because he was already part of and hard work, he says, and can
a Scottish network that would be involve “keeping the plates spinning”
Dewar’s analysis of success important as the airport sought to for three to six years before a new
starts with the high quality of the realise its growth potential. deal is closed. It is made easier,
colleagues that he inherited and he suggests, by the quality of the
recruited. “You have to be very At the outset the most pressing economy of the Edinburgh region:
aware of what you bring personally” challenge, he says, was to change “the numbers really are phenomenally
he says “and then make sure that the airport so that it could prosper compelling”. He points out that three
you cover the bases with all the alone, which meant, for example, out of four international visitors
skills that you need to have. We recruiting a new finance team. The to Scotland already go through
have superb airport operators, other challenge, as he describes Edinburgh airport and says that his
really exceptional support services it, was to bring in a completely optimism about the future is largely
and we have invested very heavily
in our commercial, projects and
development teams”. “People understand the benefits of having a
This isn’t Dewar’s first spell at the growing international airport on their doorstep
airport. He was Managing Director
from 2008 to 2010, but left to and there is not the same “intensity of concern”
become Chief Executive of Bahrain
Airport. On his return to Scotland about local impact as there is, for example, among
two years’ later Edinburgh was in a
very different position, having just people living around Heathrow Airport”
THE AIRPORT OPERATOR SUMMER 2017
8
based on this international market:
“We are so bullish because of that “We have superb a growing international airport on
their doorstep and there is not the
inbound visitor. That is why there is
such an opportunity. All the long-
airport operators, really same “intensity of concern” about
local impact as there is, for example,
term plays in Scotland – the wealth
and the investment – are coming in
exceptional support among people living around
Heathrow Airport.
our direction”. services and we have
That said, the airport still takes
In the short-term, Dewar does have invested very heavily community concerns very seriously
some concerns about Brexit. While the
weakness of sterling is encouraging in our commercial, and is currently in the closing stages
of a closely-watched consultation
more visitors to come to Scotland,
other effects are less positive. He says projects and on airspace change. Dewar says:
“We have taken the view that the
that uncertainty is never helpful and
points to comments from US airlines
development teams” constraint on the more effective use
of our existing runway is airspace.
that they are looking to pivot away Existing airspace rules mean that at
from the UK while wait to see what will As tangible evidence in support of present we can only deal with one
happen. Though optimistic that good that argument he cites the Scottish aircraft every two minutes and during
open skies agreements will eventually Government’s decision to cut Air the morning peak we regularly have
be concluded, he worries about the Passenger Duty by at least half. queues of ten to twelve aircraft. With
short-term reaction and he also points Scottish Ministers get, he says, airspace change we could have one
out that aviation is very dependent on that when Scotland’s airports are departure every minute, but we have
overall economic growth continuing. competing with airports across to try to minimise the number of
Europe it is “a no-brainer” that people affected”.
That said, Dewar has some good the level of APD, easily the most
things to say about Scotland’s expensive departure tax in Europe, Dewar is proud of the efforts that
politicians, reflecting that “the needs to be reduced. Dewar the airport has made to ensure that
striking feature in Scotland is just expresses confidence that detailed the consultation will be as fair and
how positive the overarching political proposals will be published during thorough as possible, noting that it
support for aviation is. Scotland has the summer, enabling a reduction to adopted every single enhancement
always understood that international take effect next year. to the consultation process that
business is important. Being the Civil Aviation Authority is
connected must be a good thing Edinburgh Airport also benefits, considering. The next step will be
when you are on the periphery of he says, from the strong support to publish the results of the second
an island off the north-west coast of of its local community. People phase of the consultation, before
Europe. We really operate in a quite understand the benefits of having
supportive political environment”.
WWW.AOA.ORG.UK
9
submitting a final proposal to the Up next for consultation will be the cross-wind runway, which is unsuitable
CAA towards the end of the year and airport’s latest plans to improve for frequent use and is, in fact, hardly
Dewar is hopeful that new rules will surface access, including a new road ever used. Without having any
be in place in time for the start of the link to the A8, though much has been effect on capacity that will release
summer season next year. done already, particularly in terms 400 acres of land for commercial
of public transport. The tram to uses, supporting further economic
While making the best use of central Edinburgh is up and running development west of Edinburgh.
airspace is important for the airport, and this is now complemented by Land for a new second runway will
making the best use of terminal the opening of the new Edinburgh be safeguarded, but is unlikely to be
space is also crucial for Edinburgh’s Gateway station on the nearby Fife needed until around 2050.
operational effectiveness and here Circle railway line, which provides
Dewar points to the airport’s work an interchange with airport tram Asked to conclude by stating the
with its principal low-cost airlines services. There are new bus routes biggest challenge that Scotland’s
– easyJet, Ryanair and Flybe – to as well to north Edinburgh, Lothian busiest airport now faces, Dewar
achieve that. All three airlines now and West Lothian. Rail passengers declares that it is to continue to meet
use a common self-service bag drop aiming for Edinburgh Airport will and exceed the high expectations
facility, with the result that more discover that the airport has recently that its passengers have developed.
than half of the airport’s passengers been designated a national railway An example, he says, is that today
are going through just 12% of station, which means that they can no-one expects to have to wait more
the check-in space and generally buy a through ticket to the airport, than four minutes to go through
experiencing zero queues. even though the last section of security at Edinburgh, so that even a
their journey will be by tram or bus. little blip gets noticed. Ultimately it is
Dewar is also careful to note that, Thanks to these developments, all about the customer and so Dewar
while it is international routes that almost one in three travellers to the chooses a simple but important point
offer the best growth prospects for airport now use public transport, for his final comment, emphasising
Edinburgh, UK routes are also an which is the best proportion in the that “we are very focussed on getting
important part of the overall mix, UK for a non-rail-connected airport. rid of queues”.
accounting for just under half of
the total. Passengers to London are Looking further ahead, the airport
spoilt for choice, with 54 flights a plans to close its existing second
day and four airlines offering flights
to five different London airports.
THE AIRPORT OPERATOR SUMMER 2017
10
AOA’S MANIFESTO
FOR UK AIRPORTS
The AOA took the opportunity of the General Election
on 8 June to publish a five-point manifesto for UK airports
C “We look forward to working with Ministers
hief Executive, Karen Dee, said
that the manifesto “sets out
an ambitious agenda for the
Government and we look forward to and officials to deliver on this manifesto,
enabling aviation to play its full part in
working with Ministers and officials
to deliver on this, enabling aviation
helping to secure the UK’s future prosperity”
to play its full part in helping to
secure the UK’s future prosperity”.
The manifesto’s first priority is a new
aviation strategy for the UK and, The AOA will be urging the There should also be a bold agenda
since the election, Chris Grayling, Government to include a fair strategy to support the better use of existing
newly reappointed as Transport for growth for all UK airports, setting capacity, addressing the country’s
Secretary, has confirmed that the out an approach that will give need for better surface access
Department for Transport plans to airports the certainty they need to (road and rail connectivity) to UK
press ahead with consultations on invest in their businesses and remove airports. The strategy should include
the proposed aviation strategy. barriers to sustainable development. a plan to enable aviation to become
WWW.AOA.ORG.UK11
more sustainable, with three areas The AOA says that the Government Queue lengths at passport control
standing out as requiring inclusion: should complete the consultation have grown over the past few years
a support mechanism to enable the on UK airspace and deliver a stable and airports have seen longer
commercialisation and scaling-up of long-term noise and airspace queues at peak times.
sustainable aviation fuels, support for policy. It needs to prioritise and
airspace modernisation and support support industry efforts to deliver The AOA says that the Government
for the decarbonisation of airside airspace modernisation and should provide additional resources
vehicles. Finally, there should also be include airspace in the remit of the to Border Force to ensure that it
a strategy to support smaller airports. National Infrastructure Commission, is better equipped to deal with
recognising that it is a critical part increased passenger numbers,
Priority 2 in the manifesto is the UK’s of the UK’s national infrastructure particularly at peak travel times. It
exit from the European Union. As which requires long-term strategic should also work with industry to
negotiations on this commence in decision making. set out a five-year assessment of
Brussels, UK Ministers are signalling need, to adapt current performance
that they acknowledge that aviation Priority 4 is a more globally measurement to better reflect
needs early consideration. competitive Air Passenger Duty. UK passenger experience at the border
APD is the highest aviation tax levied and to adapt the border regime
The AOA is calling on the on passengers in the EU and among appropriately following Brexit.
Government to prioritise early the highest in the world.
certainty for the industry through The manifesto’s five priorities will be
transitional agreements and securing The AOA says that the Government the focus of the AOA’s post-election
new air services agreements as should reduce APD by 50% to bring political engagement programme
part of the exit negotiations. The it into line with our competitors which will target Ministers, officials,
manifesto says that the objective and ensure that the UK is ‘Brexit Opposition spokespeople, new MPs
should be to seek to replicate, as ready’. In the light of Scottish and members of the Commons
far as possible, the benefits that UK Government plans to cut its new Air Transport Select Committee.
and EU consumers currently derive Departure Tax, the AOA says that
from the close integration of our the Government should ensure that AIRPORT
OPERATORS
ASSOCIATION
A MANIFESTO
respective aviation markets. a cut in APD anywhere in the UK is Click here to read FOR UK
AIRPORTS
matched immediately and fully in the full manifesto
The manifesto’s third priority is the rest of the country to prevent
airspace modernisation, vital to regional economic distortions.
www.aoa.org.uk
ensure that forecast levels of traffic
can be handled without delays and Priority 5 in the manifesto is a secure
cancellations. but welcoming UK border regime.
“The five priorities will be the focus of the AOA’s
post-election political engagement programme
targeting Ministers, officials, Opposition
spokespeople, new MPs and members of the
Commons Transport Select Committee”
THE AIRPORT OPERATOR SUMMER 201712 WWW.AOA.ORG.UK
13
CORNWALL AIRPORT
NEWQUAY, THE UK’S
FASTEST GROWING
AIRPORT
The story of how Cornwall Airport Newquay went from
near closure to become the country’s fastest-growing airport
in 2016 is a fascinating one
B
ut then you could say the same Surviving that near-death was absolutely crucial to prop us
of the career of its Managing experience was, he says, down up”. But airlines hated it (Ryanair
Director, Al Titterington, who to the financial support that the were “very opposed”) and warned
began his career in aviation as a airport received from its owner, that for as long as it was retained it
dispatcher/baggage handler at Leeds Cornwall Council, “a lot of plate- would make increasing capacity and
Bradford Airport before using a spinning” and a decision to “almost flight frequency very difficult.
Master’s degree in airport planning start again” with a strategy to
and management to kick-start a rebuild the route network on a So, Titterington and his colleagues
career in airport management that led much more sustainable basis and took a long, hard look at whether
him to Newquay via operational roles to diversify the airport’s business, the better option for long-term
at Robin Hood and Coventry airports. reducing its dependence on sustainable growth would be to
passenger income by growing drop it. “We were going to sacrifice
Arriving in Newquay as Operations income from executive flights, half a million pounds a year. The
Director in 2006, he played a key role aircraft training and property. question was: ‘Could we get it back?’
in supporting the airfield’s transition We developed a business case that
from an RAF base to a fully civilian Newquay’s controversial £5 per suggested that we could. We took
airport in 2008. Two years’ later he passenger airport development fee, that proposal to the airport’s board
was promoted to Managing Director introduced in 2006 and payable and through the council’s cabinet
at what he candidly describes as “the by all departing passengers and scrutiny process. There was a lot
worst possible time”. over 16, kept the airport alive. In of politics and bureaucracy and that
Titterington’s view, “through the can be frustrating, but we got the
Recalling that period now, he says: difficult times that income stream green light”.
“We suffered from the economic
“Breaking through half a million
down-turn and the end of the low-
cost bubble. Passenger numbers
plummeted. The business didn’t
look like a business – for example,
we had no management accounts – passengers per year in the next three
to four years is eminently achievable”
and the route development strategy
was built on straw. We were months’
away from going out of business”.
THE AIRPORT OPERATOR SUMMER 201714
“Newquay’s controversial £5 per
In the autumn of 2015 it was
announced that the £5 development
fee would be scrapped in March
2016 and, one-by-one, the airport’s
key airlines began to deliver on the
growth commitments that they had
passenger airport development fee,
made. By the end of 2016 it was clear
that the new strategy had paid off introduced in 2006 and payable
by all departing passengers over
handsomely, delivering the stunning
48% increase in passenger numbers
that secured Cornwall Airport
Newquay its place as the UK’s
fastest-growing airport. 16, kept the airport alive”
This year got off to a strong start
too, with the airport handling a passengers per year in the next There are some headwinds, though,
record 41,000 passengers in April, three to four years is eminently and one of these, in Titterington’s
a 39% increase compared to the achievable”. That would be good view, is Brexit. Acknowledging that
same period last year, encouraging news for Cornwall Council, as it there are strongly held views on both
expectations that 2017 will see a should mean that their operating sides of this issue, he is, nevertheless,
fourth consecutive year of double- subsidy (originally £3.5 million, now clear that “from a business
digit growth. Growth in 2018 and £1.3 million) will continue to decline perspective I don’t agree with Brexit.
2019 is more likely to be around 5%, and, according to Titterington, Cornwall has been one of the largest
but Titterington still believes that “within five to ten years it is possible recipients of European funding,
“breaking through half a million that the airport could be profitable”. with the airport, for example, having
WWW.AOA.ORG.UK15
total traffic. In Titterington’s words:
“We are working with them all
the time. It is a very rock-solid
diversification could be cost- relationship. They are key to us”.
effective. The airport has made a
funding application to the UK Space The fourth most popular route in
Agency and awaits a decision on 2016, thanks to a 162% increase in
relied on it to build new hangers. I that, probably this autumn. traffic, was the Aer Lingus Regional
am concerned about not being part link to Dublin, now in its third year
of the Single European Sky and the Cornwall Airport Newquay’s and offering a year-round service,
timing of trying to renegotiate new leading airline is Flybe, which with daily connections throughout
air services agreements. It does lead operates flights to a dozen UK the summer and in May this year Aer
to risks and unknowns and Ryanair cities, including the three most Lingus added a new route to Cork.
have warned about this”. popular routes to London Gatwick, Ireland is Cornwall’s third-largest
Manchester and Birmingham, and source of international tourists after
He accepts that there are some accounts for 73% of the airport’s Germany and France.
positive effects, noting especially that
the fall in the value of the pound helps
to make Cornwall a more attractive
destination for inbound tourists, but
is still adamant that “Brexit provides
more negatives than positives”.
Another area of uncertainty for
now is whether the airport will
be able to make something of its
hopes to become a UK spaceport.
Titterington says that the major
opportunity for the UK and Cornwall
is for satellite deployment, but the
big unknown is what rules the Civil
Aviation Authority will impose. That
will determine whether this unusual
THE AIRPORT OPERATOR SUMMER 201716
Ryanair returned to the airport in Europe’s major hub airports. On the For Titterington the expansion of
2016 with new international routes Continent that might be Amsterdam, Heathrow is potentially as important
to Alicante and Frankfurt Hahn and or perhaps Munich or Paris – but to Cornwall as it is to London,
then in March this year added a the bigger prize, until recently seen since a route to the UK’s hub
further route to Faro in the Algarve, as out of reach, would be London airport would enable Cornwall to
marking a 50% growth in Ryanair’s Heathrow. Titterington comments have onward connections to every
operations from the airport. that any of these, but particularly continent of the globe, as well as
Heathrow, “could be transformational easy access to London. But, for this
Looking ahead, Titterington would in terms of profitability and the to work, Cornwall Airport Newquay
clearly like to be able to offer a winter economy of Cornwall”. would need the support of the
sun route from Newquay, pointing out Council, the Government, Heathrow
that for many of the county’s residents, For the Heathrow goal to be achieved, and the airlines. “Everything must
who depend on incoming tourism in which might be possible as early come together”, says Titterington,
the summer, winter is when they take as 2021, Cornwall Airport Newquay “Is that achievable? I think it is.
their main holidays. His confidence in would need a lot of things to go Just a few weeks’ ago I would have
the prospect of such a route operating right, including political support. put the probability of success at
from the winter of 2018/2019 suggests Titterington says that the airport has about 2%, but now it is rapidly
that the airport will soon have a link to “a significant political voice” on the increasing to maybe 20%. We have
the Canary Islands. issue: “We do get exposure right up the momentum with all of those
to the Prime Minister. When Chris parties”.
The bigger ambition, though, is for Grayling announced the Government’s
Cornwall Airport Newquay to lose support for Heathrow, the Prime Perhaps a Heathrow link, the latest
its distinction as one of the only Minister’s first comment on that was in dream of the UK’s fastest-growing
UK airports lacking a link to one of a meeting with me at Newquay”. airport, really could become reality.
WWW.AOA.ORG.UK17
NEW CHIEF
EXECUTIVE AT LONDON
CITY AIRPORT
Robert Sinclair, currently CEO of Bristol Airport, is to
replace Declan Collier as CEO of London City Airport
S
inclair is expected to take up Jones, who joined Newcastle as chief and business passengers”. In another
his new role in October. A New financial officer in 2015, has been departure, Birmingham Airport has
Zealander, he was previously interim chief executive at Newcastle, announced that its Chief Executive,
Chief Financial Officer of Auckland the UK’s 11th largest airport, since Paul Kehoe, is stepping down.
International Airport, following a 10- Laws’ departure last year. He takes
year career with UBS in investment the job on a permanent basis at a Kehoe, who leaves on 12 July,
banking. He became CEO of Bristol time when the airport is experiencing will be focussing on his regional
in 2008 and, during the period since, its strongest growth in almost a commitments as chairman of
the airport has seen record growth in decade, with passenger numbers Marketing Birmingham, president of
passenger numbers and profitability growing by 6% in 2016. the Greater Birmingham Chamber of
and the delivery of a £160 million Commerce and chairman of the West
development programme. He said: “I am delighted to be Midlands Growth Company.
confirmed as chief executive at one
Collier is stepping down after more of the UK’s most successful airports. He joined the airport, the UK’s
than five years at London City, the I am passionate about the North East 7th largest, in 2008 and has seen
UK’s 14th largest airport, shortly region and my aim will be to further passenger numbers there grow from
after the airport announced that it is improve connectivity for businesses 9.5 million to more than 12 million.
to introduce the UK’s first digital air as well as providing popular holiday Expansion of Birmingham’s route
traffic control tower in a pioneering destinations for people in the region. network has included daily services
step for British aviation and a year I also want to ensure we build upon to Delhi with Air India, A380 services
after the airport received planning our reputation for providing the most to Dubai with Emirates and the
permission for a £344 million welcoming customer experience” introduction of 18 new airlines, including
transformation. Qatar Airways, Jet2 and the return of
David Laws, who was Chief Executive British Airways. By the end of this year,
He said: “It has been a privilege and at Newcastle Airport for ten years, Birmingham will have invested £450
a pleasure to have been part of the takes over as Chief Executive of Leeds million on developing its infrastructure,
airport’s success story for more than Bradford Airport, the UK’s 15th largest, including a runway extension and a new
five years. London City Airport is a following the retirement of John Parkin. air traffic control tower.
great business and well placed to take The airport has grown passenger
advantage of future growth and new numbers by 6% over the last year. Laws Kehoe said: “I planned originally
aircraft technologies as we embark said: “I am very pleased and excited to stay only for five years, but the
on our City Airport development to be joining Leeds Bradford Airport challenge became so exciting that
programme”. at such a crucial time for the airport’s I stayed for another four. After
growth and development. I have a delivering significant airline and
Meanwhile, Newcastle Airport has real passion for airport development passenger growth and completing all
confirmed that its acting chief and am focused on delivering the very the major development projects which
executive, Nick Jones, will take the best customer journey possible. My resulted in a doubling of the profit,
job on a permanent basis, while David ambition is to further improve, expand generating significant dividends for
Laws, his predecessor at Newcastle, and develop the business in order shareholders and the region, I feel it
has been appointed Chief Executive of for the airport to continually offer is time for the next generation to take
Leeds Bradford Airport. a wide range of services for leisure the business forward”.
THE AIRPORT OPERATOR SUMMER 201718
UK AIRPORTS
SAFETY WEEK
REACHES
THOUSANDS
The AOA-coordinated UK Airports Safety Week,
held from 8 to 14 May 2017, reached thousands of airport staff,
passengers and local communities around the country
R
oger Koukkoullis, AOA Highlights of this year’s Safety Learning from others was a key
Operations and Safety Week included the huge numbers theme for London City Airport,
Director, said he had of people reached by the events at whose airside safety team spent an
been hugely impressed with the Heathrow – about 600 people at entire day with the airfield operations
tremendous effort displayed across Terminal 2 and 800 at Terminal 3, and safety teams at Gatwick. It was
the UK, which had extended beyond reflecting the airport’s determination an action-packed day that included
traditional aviation safety issues to bring safety issues to the attention going out on the airfield with the bird
to also encompass occupational of the entire community at the control unit, a runway inspection,
health, the environment and well- airport. One of the biggest successes a foreign object debris walk and
being. The week had demonstrated a and most popular of the attractions attendance at a safety review group
recognition that for an airport safety was the health bus, which even meeting. Back at London City staff
management system to be fully resulted in some airport staff being played an interactive airside safety
effective the safety culture must be referred to their doctor for high
collaborative and airport-wide. blood pressure.
WWW.AOA.ORG.UK19
game with passengers, hugely
impressing two who worked for the
World Health Organisation. Outreach “I have been hugely impressed with
the tremendous effort displayed across
to the local community in East
London included a visit to a local
primary school and a foreign object
debris charity run raising money for
a local children’s hospice.
the UK, which had extended beyond
Leeds Bradford Airport invited pupils
from a local primary school to visit the
traditional aviation safety issues”
airport and tour the runway, apron, Roger Koukkoullis, AOA Operations and Safety Director
fire station and terminal building.
Health and wellbeing were also key Three awards will be presented
Across Yorkshire at Humberside focuses for George Best Belfast later this year at the AOA Annual
Airport a visit to UK Search and City Airport, who worked with Conference and Awards dinner to
Rescue gave everyone a chance their charity partner, Inspire, to commend the three best initiatives of
to familiarise themselves with conduct four sessions on mental this year’s Airports Safety Week.
the rescue helicopters and learn health awareness, including hidden
more about their role in carrying disabilities and autism awareness Looking ahead, Koukkoullis said he
out rescue missions in demanding – this reflecting how unsettling was determined to ensure that the
situations. Later in the week travelling through an airport can be AOA could demonstrate positive and
rescue firefighting services came for a child on the autistic spectrum. tangible safety benefits flowing from
to the terminal and gave practical A session with NIVAH, a Belfast- Airports Safety Week, including using
first aid and general fire safety based drug and alcohol testing AOA forums, seminars, meetings and
demonstrations along with tours solutions company, showed people conferences to greater effect. This
of the fire vehicles for the public. the effects of drugs and alcohol by will be one of the subjects considered
A health and wellbeing session in using special goggles. That created by the UK Airports Safety Week
the terminal building gave staff and some giggles, as well as a good project team for 2018.
passengers an opportunity to learn discussion and better understanding.
about the benefits of correct diet
and exercise from a world champion
bench press winner.
THE AIRPORT OPERATOR SUMMER 201720 WWW.AOA.ORG.UK
21
UK AIRPORTS REAPING
THE BENEFITS OF WIFI
SENSORS
Birmingham has become the latest UK airport to
install WiFi sensors to improve the passenger experience
and boost operational efficiency
T
he airport joins Bristol, The sensor system in use at efficiently is key to the success of an
Edinburgh and Manchester Birmingham and the three other UK airport and its image. Accurate wait
in adopting state-of-the-art airports was designed by Denmark- time and flow information is crucial
WiFi sensors to enable it to collect based business intelligence company, to provide a premium customer
real-time data on travel times, dwell BLIP Systems, founded in 2003. experience, improving capacity
times and movement patterns. planning and maximising revenue.
Mobile device-detecting sensors The company’s marketing manager, 94% of leisure travellers travel with
automatically detect WiFi enabled Christian Carstens, said: “Handling a mobile device. With sensors that
mobile devices without passenger passenger flow smoothly and measure the movement of those
interaction.
Sensors have already been installed
in Birmingham Airport’s North
immigration hall to measure and
predict the wait time at the UK
border and the airport is planning
to extend its use to southbound
security and immigration.
Chris Wilson, Head of Terminal
Operations at Birmingham, said:
“The data really helps us to
understand the actual wait time for
the border and helps discussion
with the UK Border Force planning
team and resourcing plans for the
future. By sharing the information on
screens, we help reduce passenger
frustration by creating realistic wait
time expectations”.
THE AIRPORT OPERATOR SUMMER 201722 devices, airports can generate a cohesive passenger experience picture, including accurately measuring and predicting wait times, while simultaneously providing data about how passengers move and use the airport”. Carstens said: “As the solution measures passenger flow in real- time, it can provide early warning when predefined thresholds are exceeded. This enables airports to proactively initiate counter- measures before the situation escalates, for instance by opening additional processing lines. Ensuring that passengers experience a quick and easy passage through the first stages of their journey increases positive passenger experience at the airport. The less time passengers spend in airport processes, the more they will enjoy a more stress- free and pleasant travel experience in the concession areas, directly increasing non-aviation revenue”. WWW.AOA.ORG.UK
23
“Accurate wait time and flow
Rick Mernock, Head of Performance
at Manchester Airport, agreed. He
said: “Making the passenger journey
easy is the heart of our business and
managing/reducing queue lengths is information is crucial to provide
a premium customer experience,
a critical part of our ability to achieve
this. As aviation revenues decrease,
the delivery of improved business
opportunities for the airside retailers is
also important to our overall business”. improving capacity planning and
Edinburgh Airport stressed the
benefits for the passenger. Chief
maximising revenue”
Operating Officer, Adrian Witherow Christian Carstens, Marketing Manager, BLIP Systems
said: “We are able to keep our
passengers fully informed 24/7, both
in the terminal and online, about
what to expect at security and our
aim is to make that experience as
smooth as possible”.
THE AIRPORT OPERATOR SUMMER 201724
BOOM TIME FOR
INVESTMENT IN
UK AIRPORTS
UK airports are set to spend nearly £8.5 billion in capital
investment over the next five years, according to new figures
compiled by the AOA
T
he figures are based on the June and July on its updated Airport airport has approved plans for a
spending plans of the UK’s Master Plan, which sets out its plans 50-metre digital tower developed
top 20 airports and exclude for future development and growth by Saab Digital Air Traffic Solutions.
Heathrow’s planned £16 billion third until 2050. The plan includes a A total of 14 high definition cameras
runway expansion plans. proposal for extension of the runway will provide a 360-degree view of
to enable long haul flights, extension the airfield, with the images sent
Gatwick CEO, Stewart Wingate, of the terminal, a new parallel taxiway by secure super-fast fibre networks
has announced that 2017/18 will and additional aircraft stands. to air traffic controllers working
be Gatwick’s biggest year of in a new operations room at the
investment, with a £240 million London City has announced that it NATS control centre in Swanwick,
planned spend over the next twelve is to become the first UK airport to Hampshire. Construction will begin
months, part of the airport’s £2.5 build and operate a digital air traffic later this year and is due to be
billion transformation programme. control tower, with a multi-million completed in 2018, with the tower
pound investment in the technology. fully operational in 2019.
Liverpool John Lennon Airport Working closely with NATS, the
launched a four-week consultation in
WWW.AOA.ORG.UK25
Chief executive, Declan Collier, said:
“A pioneering new digital air traffic
control system will enhance safety
and improve resilience, setting a
new standard for the global aviation
industry to follow. This cutting-
edge proven technology future-
proofs London City Airport’s air
traffic control for the next 30 years
and beyond”.
This year London City will also begin
construction on its £350 million City
Airport Development Programme,
which will include seven new aircraft
stands, a parallel taxiway and a in the UK operating dedicated arrivals Bristol Airport’s newly-expanded
terminal extension. and departures terminals. immigration hall, which includes
ten of the latest ePassport gates,
Manchester Airport has unveiled Meanwhile, Aberdeen Airport has was officially opened by the UK’s
the next phase of its £1 billion launched the first phase of its Immigration Minister, Brandon
transformation programme, which terminal transformation project, Lewis, on 22 June. As well as
will be one of the largest private with the opening on 30 May of its introducing the new gates, the
sector investments in the north of new international arrivals facilities. enlarged accommodation has
England in decades. Passengers arriving from Stavanger been redesigned to provide Border
were the first to be able to use the Force officers with a clearer view of
Stansted Airport has secured planning new passport control and baggage passengers entering the Immigration
permission for a new £130 million reclaim facilities and were greeted on Hall. The Government and Bristol
arrivals terminal to be built next to the arrival by Scotland’s famous bagpipe Airport jointly funded the £2.3
current terminal. It will include larger band, The Red Hot Chilli Peppers. million project.
immigration and baggage reclaim A new Northern Lights executive
areas. Work will begin in late 2018 lounge for departing passengers
and is expected to take three years to opened on 1 July.
complete. Once the terminal is open,
Stansted will become the only airport
THE AIRPORT OPERATOR SUMMER 201726
From around the sector…
USING DIGITAL TECHNOLOGY
TO DRIVE EFFECTIVENESS
UK airports will continue to turn
to technology innovation to drive
operational effectiveness and to deliver
sustainable business value, according to a
leading international adviser to airports.
Los Angeles-based Management
Consulting firm, Avasant has drawn on
experience of technology innovation and
business impact from airports worldwide,
including both Gatwick and Heathrow,
to develop a picture of how emerging
technologies and innovation-driven
strategic partnerships are transforming
airports, cutting costs and providing a
platform for sustainable revenue growth,
particularly in ancillary revenues.
Transportation practice lead, Carlos improve customer experience and Hernandez says that capital-strapped
Hernandez, said that airports are make airport processes more efficient. airports around the world are looking at how
increasingly focussing on operational This has been largely achieved already they can optimise operations to cut costs,
transformation as an alternative to throughout the passenger journey with improve capacity utilisation, improve security
significant new capital investment, baggage claim, check-in and parking, is and reduce issues related to loss and pilferage.
driven by an approach which helps to increasingly the case with baggage drop Supporting higher capacity with existing
reconcile airport innovation needs with and could soon be so with boarding. assets is a key goal for many airports.
high investment barriers. The approach Border control and security offer less
eliminates the upfront capital cost and potential for process without agent Avasant has worked with Toronto Pearson,
is based on strategic partners being intervention, though technological Canada’s largest airport and the second
compensated through a share in the innovation is increasingly being used busiest airport in North America, to
business benefits realised. to monitor both people coming into support an enterprise-wide business and IT
airports and transit passengers for transformation initiative. An increase in
Major levers of digital transformation possible security threats and to improve non-aeronautical revenues, user experience
at airports that Avasant has identified communication with law enforcement improvement and operational process
include customer experience and passenger authorities. optimisation have been key elements of
flow improvements, optimisation of the airport’s plan. A technology blueprint,
process, economic lifestyle and revenue Technology will offer increasing road map and sourcing strategy, together
optimisation and partnership innovations. opportunities to improve passenger flow with an innovative gain-sharing model are
Hernandez says that innovative technology based on dynamic flow management, enabling Toronto to defer new investment,
solutions, directly linked to revenue and says Hernandez, not least by enabling cut IT operations costs by over 35%,
margins, are driving these levers. By real-time notification of bottlenecks identify business operations cost reductions
reinventing their business models and and expected passenger flow, based on of 20 to 25% and identify an increase in
defining new ones, UK airports can find flight data and airport sensors. He says non-aeronautical revenues of 10 to 15%.
new revenue sources, grow revenue and that at many airports there could be
deliver sustained profitability. opportunities to cut the time it takes to Looking ahead to coming trends in digital
get from check in and through security business transformation for airports
Hernandez predicts that more and more by 75%, allowing passengers to pass Hernandez says that will partly depend
travel processes will be automated and through security in less than five minutes, on each airport’s circumstances, but he
forecasts that this will “progressively giving them 30 to 45 minutes to shop and foresees growing interest in both intelligent
eliminate traveller-agent interaction offering the prospect of an increase in maintenance and digital solutions to
points at airport”, as digital technologies retail revenues of as much as 15%. security challenges.
WWW.AOA.ORG.UK27
PASSENGER NUMBERS
GO ON RISING
As the summer 2017 season began UK consecutive month of growth, with record high for the month. The biggest
airports continued to smash records Alicante, Hamburg, Berlin, Stockholm year-on-year growth was on routes to
for passenger numbers – with most and Paris showing the biggest increases. Denmark, Bulgaria and Cyprus.
forecasting further growth over the
coming months. Edinburgh Airport had its busiest May Gatwick Airport recorded 6.7% growth
on record, with a 10.8% increase and in May, with more than 4 million
Birmingham Airport saw a 19.5% 1.2 million passengers, with the biggest passengers. Demand for long-haul
increase in May over the same month increase in international passenger destinations enabled Gatwick to achieve
last year, with 1.2 million passengers. numbers. Nearby Glasgow Airport saw a its 51st consecutive month of growth.
It was the 27th consecutive month of 10% increase, with 910,000 passengers. North American destinations were up by
growth. Short-haul services racked up 13%, led by Fort Lauderdale (up 125%),
the most significant growth, with routes London Luton Airport continued over Los Angeles (up 48%) and Calgary (up
to Nantes, Sofia and Rhodes recording three years of consecutive growth with 43%).
the biggest increases. 8.1% growth in May and more than 1.4
million passengers. Belfast International Airport had its
Manchester Airport’s growth in busiest day ever on 23 June, with nearly
May was 11.9%, with more than 2.5 Stansted Airport had 7% growth in May, 24,000 passengers passing through the
million passengers. May was the 38th with nearly 2.3 million passengers, a airport.
SOLAR POWER CUTS COSTS
AND EMISSIONS AT BELFAST
Over a quarter of the power at Belfast
International Airport is now coming
from the sun, cutting the airport’s costs
and emissions.
The airport has announced savings of
over £100,000 for the first ten months
of operation of its dedicated solar farm,
located close to the airport’s terminal
building. It is also estimated the energy
from the farm will save 2,100 tonnes of
carbon emissions each year.
Lightsource Renewable Energy, one
of Europe’s leading solar energy
companies, spent £5 million building
the farm, with the airport buying the
clean electricity produced through a run on solar electricity alone for almost is consistently delivering a reliable ‘green’
25-year power purchase agreement. nine hours. and cost-saving energy supply for the
Although on average the solar farm is airport. No other airport in either the
expected to generate over 25% of the The airport’s Operations Director, Alan rest of the UK or Ireland has a similar
airport’s annual energy needs, at certain Whiteside, said: “The solar farm project energy source and we are delighted with
peak generation times the airport has has exceeded all expectations. The project its operations”.
THE AIRPORT OPERATOR SUMMER 201728
From around the sector…
HEATHROW’S PAULA STANNETT
WINS EXCELLENCE AWARD
Heathrow Airport’s Human Resources Paula won the award for her
Director, Paula Stannett, has won ACI demonstrated excellence in human
Europe’s first-ever HR Excellence Award. resources and her leadership acumen.
She was also honoured for investing
Paula picked up the award during ACI heavily in increasing staff engagement
Europe’s gala dinner in Paris in June to positively transform the workplace
from Augustin de Romanet, Chairman culture and for her focus on catering to
and CEO of Aeroports de Paris and employees’ needs and helping them fulfil
outgoing President of ACI Europe. their potential.
The award was created to recognise Vikki Gledhill, Reward Business Partner
individuals who have demonstrated at Manchester Airports Group (MAG)
excellent leadership and human resources was also highly commended for this
management. The objective of the new award.
award is to give exposure to excellence
that will help the airport community The winner of the 5 to 10 million
to better assess and implement the new passengers’ category was Naples
procedures and skills needed to develop International Airport, with Bristol
the industry’s workforce. Airport highly commended.
BIRMINGHAM AIRPORT CONDUCTING
AIRSPACE CONSULTATIONS
Birmingham Airport has launched a
consultation with residents affected by
new proposed flightpaths for aircraft
departing to the north of the airport.
The planned new flightpaths are part of
a national programme to modernise UK
airspace and will result in the removal
of fixed ground radio beacons and the
reorganisation of airspace to the north
of Birmingham.
David Winstanley, Chief Operating
Officer at the Airport, said: “These by an open and honest approach which consultation is part of an airspace
consultations are an essential part of aims to build understanding, trust and change process required by the Civil
the process. Aside from technical flying mutual respect. We really encourage local Aviation Authority.
constraints, we also analyse the impact communities to attend”.
on surrounding communities and take Birmingham Airport is the UK’s
the views of our local stakeholders very A series of 12 early evening consultation seventh largest airport, handling 12
seriously. These consultations give an meetings began on 4 July and will million passengers a year and serving
opportunity for dialogue, characterised run for eight weeks to 21 July. The 140 destinations.
WWW.AOA.ORG.UKADVERT
AIRPORT OPERATORS ASSOCIATION
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London SW1H 9JJ
United Kingdom
T: +44 (0)20 7799 3171
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