Airport World, Issue 4, 2014

AugustSeptember 2014Volume 19 Issue 4

www.aci.aero

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In the spotlight: Invest & Build

Airports: Chicagos airports, San Juan (Puerto Rico)

Special report: Sound of music

Plus: Environment, car parking & customer service

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Invest & Build: The challenge ahead

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OPINION

In the newspaper industry we refer to the summer as the silly season because, with so many people on holiday, good stories are often at a

premium, and the scenario leads to the running of a number of funny or frivolous articles that wouldnt normally see the light of day.

This is the time for stories about aliens, the worlds biggest pizza, cute babies, cuddly dogs, the Loch Ness Monster and sightings of a mystery beast in a farmers field that turns out to be an overweight ginger tom!

Well, it is all very different in the aviation industry, where it seems that the business never sleeps and summer always proves to be one of the hottest months of the year for deals, new appointments and the unveiling of big new infrastructure projects.

We cover news and features about all three in this Invest & Build themed edition of Airport World, which has a heavy US focus to reflect the industrys next big event, ACI-North Americas Annual Conference & Exhibition in Atlanta in early September.

In terms of Invest & Build in the US, this issue highlights some of the biggest infrastructure development projects in the country; turns the spotlight on Chicagos airport system; provides a progress report on the privatisation of San Juans Luis Muoz Marin International Airport; reviews Hartsfield-Jackson Atlantas aerotropolis

plans; and finds out more about the retail revolution taking place at departure gates up and down the country.

The importance of sustainable development on a global scale completes our look at the world of planning, funding, building and enhancing airports to ensure that they are equipped to meet the capacity needs and environmental and social demands of the future.

But its not all about investment in infrastructure and assets as we have a fun feature on airports and music; learn more about Aroports de Montrals route development and customer service strategies; get 10 top tips for your next car parking RFP; and round up the highlights of the recent ACI World Assembly/ACI Asia-Pacific Conference & Exhibition in Seoul.

Next up for ACI World in terms of events is the long-awaited The Trinity Forum, which is being held at the Grand Hyatt Taipei in Taiwan on September 17-19.

Hosted by Taoyuan International Airport, this years global airport commercial revenues conference once again promises to be great value, with sessions on topics such as Raising retail ambitions to a complete new level; ASQ findings on the role and performance of retail; Where next for social and digital media?; and Improving the tender process for the sake of all parties.

Who says nothing ever happens in the summer or early autumn?

Airport World

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Airport World is published six times a year for the members of ACI. The opinions and views expressed in Airport World are those of the authors and do not necessarily reflect an ACI policy or position.

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;OLTHNHaPULVM[OL(PYWVY[Z*V\UJPS0U[LYUH[PVUHSInvest and buildAirport World editor, Joe Bates, reflects on an eventful summer and looks forward to the upcoming ACI-NA Annual Conference in Atlanta and The Trinity Forum in Taiwan.

3 OpinionAirport World editor, Joe Bates, reflects on an eventful summer and looks forward to the upcoming ACI-NA Annual Conference in Atlanta and The Trinity Forum in Taiwan.

9 News

10 Show timeJoe Bates picks out some of the highlights of Mays Asia-Pacific/World Annual General Assembly, Conference & Exhibition in Seoul.

12 ACI newsA successful APEX in Safety review at Quito bodes well for the region at large, writes Danny Boutin.

15 View from the topACI World director general, Angela Gittens, explains the importance of training current and future generations of airport professionals.

16 Chicago hopeCommissioner, Rosemarie Andolino, talks to Joe Bates about an eventful five years in the hot seat at the Chicago Department of Aviation.

20 Invest USAHow are US airports dealing with the need to upgrade their infrastructure in the face of ongoing funding restraints? Benet Wilson investigates.

24 Looking good!Nicole Nelson discovers that its new privatised business model has breathed new life into San Juans Luis Muoz Marn International Airport.

Issue 4 Volume 19

AugustSeptember 2014Volume 19 Issue 4

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In the spotlight: Invest & Build

Airports: Chicagos airports, San Juan (Puerto Rico)

Special report: Sound of music

Plus: Environment, car parking & customer service

Invest & Build: The challenge ahead In this issue

CONTENTS

5AIRPORT WORLD/AUGUST-SEPTEMBER 2014

27 Georgia on my mindNicole Nelson finds out more about the Atlanta Aerotropolis Alliances plans to transform the area around Hartsfield-Jackson Atlanta International Airport into an economic powerhouse.

30 Size of the matterCan airports really justify building huge terminals in an age when the industry needs to promote sustainable growth? Mott MacDonalds aviation practice leader, Chris Chalk, gives his views.

33 Daring to be differentICRAVEs managing director, Leah Blackman, reports on the growing trend of transforming US departures gates with innovative new concession programmes.

36 Sound of musicAirports are increasingly turning to live music to create a unique atmosphere and make themselves stand out from the crowd, writes Justin Burns.

41 People mattersDr Richard Plenty and Terri Morrissey provide their thoughts on: Investing in your organisation.

43 Busy timesA growing route network, enhanced facilities and a host of customer service and environmental innovations ensure that these are exciting times for Montral-Trudeau, writes Stephanie Lepage.

45 Be in the driving seatDAA USAs parking expert, Jenna Buckner, provides ten top tips on how to improve your parking RFP.

49 Environment news

53 ACIs World Business Partners

54 The last wordAirport World gets up close and personal with Roddy Boggus, senior vice president/aviation director at Parsons Brinckerhoff and chairman of ACIs World Business Partners Advisory Board.

Director GeneralAngela Gittens

Chair Fredrick J Piccolo (Sarasota, USA)

Vice Chair Declan Collier (London, UK)

Immediate Past ChairYiannis Paraschis (Athens, Greece)

TreasurerStefan Schulte (Frankfurt, Germany)

ACI WORLD GOVERNING BOARD

DIRECTORS

Africa (3)Pascal Komla (Lom, Togo) Bongani Maseko (Johannesburg, South Africa)Robinson Misitala (Livingstone, Zambia)

Asia-Pacific (8)Tan Sri Bashir Ahmad (Kuala Lumpur, Malaysia)Dennis Chant (Gold Coast, Australia)Rodolfo Echeverria (Amman, Jordan)Kenichi Fukaya (Tokyo, Japan)Saud AR Hashem (Jeddah, Saudi Arabia) Seow Hiang Lee (Singapore)Kerrie Mather (Sydney, Australia)1 vacancy

Europe (7)Declan Collier (London, UK)Arnaud Feist (Brussels, Belgium)Michael Kerkloh (Munich, Germany)Tonci Peovic (Zagreb, Croatia)Stefan Schulte (Frankfurt, Germany) Sani Sener (Istanbul, Turkey)Jos-Manuel Vargas (Madrid, Spain)

Latin America & Caribbean (3)Philippe Baril (Quito, Ecuador)Fernando Bosque (Guadalajara, Mexico) Hctor Navarrete Muoz (Merida, Mexico)

North America (7)Thella Bowens (San Diego, USA)James Cherry (Montral, Canada)Frank Miller (San Antonio, USA)Fredrick J Piccolo (Sarasota, USA) Mark Reis (Seattle, USA)Maureen Riley (Salt Lake City, USA)Tom Ruth (Edmonton, Canada)

Regional Advisers to the World Governing Board (7)Aaron Adderley (Hamilton, Bermuda) Rosemarie Andolino (Chicago, USA)Haluk Bilgi (Tunis, Tunisia)ngel Crdova Carrera (Guayaquil, Ecuador)Howard Eng (Toronto, Canada)Zouhair Mohamed El Oufir (Rabat, Morocco)1 vacancy (Europe)

Observer World Business Partner Board ChairpersonRoddy Boggus (Parsons Brinckerhoff )

Correct as of August 15, 2014

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AIRPORT WORLD/AUGUST-SEPTEMBER 2014 9

Retail/F&B newsATU Duty Free has won the tender to operate the duty free stores at Salalah Airport in Oman. The firm, a joint venture between TAV Airports and Unifree Duty Free/Gebr Heinemann, has agreed a 10-year contract and is expected to start trading in January 2015.

Fraport has expanded its international portfolio in the global airport market by acquiring 100% of US-based AMU Holdings Inc, which owns concessions developer Airmall. It currently operates 270 retail and F&B outlets across 34,000sqm of space in Airmalls at four US airports Baltimore/Washington, Boston Logan, Cleveland Hopkins and Pittsburgh which between them handle 70mppa.

Denver International Airport has selected Paradies Taste 5280 as the retail/F&B concessionaire for the 3,600 sqm extension to Concourse C.

The gateway says the firm has been charged with creating a unique, architectural, cultural and enhanced customer experience. DIA began construction in September 2013 on five new gates that will be utilised by Southwest Airlines, and the expansion project is expected to be completed in November 2014.

The Avia Solutions Group has launched Globus Distribution, a new global duty free operator. The Lithuanian-based firm

says it will operate duty-free retail shops across Europe and Asia. The company plans to be engaged in the promotion and sales of worldwide perfumery, beverage, cosmetics and other branded goods.

Lotte Duty Free has unveiled its transformed retail offering at Guam International Airport. The South Korean retail giant has invested $20 million on revamping the airports retail facilities. Its CEO, Hong-Kyun Lee, enthused: Its a fantastic last impression of Guam, generating significantly increased revenues for the airport, and creating opportunities for the people and businesses of Guam.

For daily news updates, visit www.airport-world.com

UK airport saleUK airport operator Heathrow Airport Holdings (HAH) formerly known as BAA is set to sell Southampton, Glasgow and Aberdeen airports by the end of the year.

If it goes ahead, the sale would leave the once seven-strong airport group with just Heathrow in its portfolio.

The potential sales would reportedly help HAH fund further development projects at the worlds third-busiest airport.

Over recent months Heathrow Airport Holdings group shareholders and management have been considering their strategic position in relation to our three airports, Aberdeen, Glasgow and Southampton, reads an HAH statement.

As a result, the group is now formally entering a sale process. While there is currently no certainty that a sale will be concluded, the group intends to work towards completing a transaction by the end of the year.

Newspaper reports in the UK claim a buyer has been in discussions with HAH officials, and that it could be Spanish infrastructure firm Ferrovial, which is rumoured to have tabled an 1 billion million bid, reportedly beating out a rival bid backed by North East Scotland Pension Fund and Zurich Airport.

Ferrovial is HAHs biggest shareholder, with a 25% stake in the airport operator, which is owned by a consortium including Britannia Airport Partners and Singapores GIC, Qatar Holding and Alinda Capital Partners.

Fraport to acquire stake in Ljubljana Airport?Fraport has begun talks to acquire a major stake in Slovenias Ljubljana Joe Punik Airport, according to the Slovenian investment firm that is charged with selling state assets.

A statement issued by SDH says: Slovenian Sovereign Holding has adopted a decision on the start of exclusive negotiations with the highest bidder Fraport AG, Frankfurt Airport Services Worldwide, on the content of the share and purchase agreement in the process of the sale of Aerodrom Ljubljana, for a limited period of time.

If the talks are successful, Fraport, which appears to have fended off interest from French airport operator Vinci and other bidders, could gain a controlling interest in the Slovenian gateway by the end of the year.

The Slovenian government has previously announced that it expected binding bids for a 75.5% controlling stake in its largest airport, and is selling off state-owned companies to raise funds and stabilise its finances.

The winning bidder will be expected to construct a new 32,000sqm terminal building at the gateway, which handled 1.32 million passengers (+10.2%) last year.

Bids invited for Osaka airportsThe Japanese government is expected to formally invite bids for the operating rights for Kansai International Airport in October.

According to Prime Minister, Shinzo Abe, the potential privatisation deal is expected to be among the biggest in Japans drive to inject private funds into public infrastructure.

Up for grabs is a 45-year concession to operate both Kansai International Airport and the smaller nearby Osaka-Itami Airport, which primarily handles domestic flights.

Sales figures of up to $20 billion are being mentioned for the airports, $12 billion of which would be used to pay off the debt to the state run up during the construction of Kansai.

NEWS

Making scentsPhnom Penh International Airport has introduced a new technology that diffuses relaxing aromas at its check-in counters, arrival hall and business lounges in a bid to enhance the passenger experience.

The implementation of the scent identity was carried out by Signature Asia, which provides the patented technology and opened a branch in Cambodia in 2013.

Airport general manager, Chlo Lapeyre, says: The initiative further deepens our engagement with our customers by offering them a comfortable environment when they embark on their journey and arrive in the kingdom.

And she says that it is environmentally friendly, as the scent diffused via the air conditioning system is free of any solvent, gas propellant or other degenerating volatile organic compound, and has been customised to fit with the airports overall atmosphere by harmonising three different fragrances crafted by a renowned perfumer based in Grasse.

Maxime Roussillon, CEO of Signature Asia, adds: Scenting is an important part of the branding strategy for many businesses. Mainly used in hotel facilities, the power of smell is so strong that many other sectors are nowadays interested in developing their own scent identity.

With over 1,000 delegates and 62 exhibitors a record for an ACI World event held outside of North America Mays joint Asia-Pacific/World Annual General Assembly, Conference & Exhibition in Seoul was a success before

it even started.As well as the usual two-day conference and spectacular Gala

Dinner at the Lotte World Ice Rink which included the 2013 Airport Service Quality (ASQ) and the Director Generals Roll of Excellence awards ceremonies this years gathering featured a pre-event World Human Resources Forum and a Safety Symposium.

Arguably, the highlight of the day for many at the World Human Resources Forum was a highly entertaining and informative CEO/Leadership session in which Egyptian Airports Companys Adel Ali El joined three of the worlds best-known airport bosses Aroports de Montrals James Cherry; Sydneys Kerrie Mather; and Munichs Michael Kerkloh to discuss issues such as the difficulty recruiting young people, the changing role of airport HR teams, and leadership succession.

All agreed that staff are an airports greatest asset and that having fully engaged, motivated and capable staff on board and in tune with their respective company strategies was vital to their success.

Mastering the art of leadership; achieving customer service excellence; reaching a sustainable balance between economic regulation and airport investment; learning best practices and emerging trends in ensuring the continuity of service; and finding strategies to facilitate growth and maximise revenues from air cargo were among the topics debated during the main conference.

The keynote address on day one was given by Dr Olumuyiwa Benard Aliu, president of the ICAO Council, who commented on the progress made on the various projects that ICAO and ACI collaborated on.

He concluded: From ICAOs perspective, ACI has been an excellent representative of your agreed positions and views and I am very confident of our shared success if we continue to work towards our goals.

Global influenceDuring ACI Worlds Annual General Assembly, director general, Angela Gittens, noted that to achieve aviations collective goals, collaboration among all key industry stakeholders was vital.

She said: Collaboration extends our reach and makes more progress possible. We are stronger together, but we would not be seen as valuable allies if we were not seen as capable of providing solutions, if we were not seen as having high standards and were not committed to achieving them.

This is where the community of airports the promotion of excellence comes to the fore. A big advantage that we have as airport operators is the willingness to help each other, even in this era of more competition. We know that weakness anywhere hurts our system and ultimately hurts each of us.

Traffic Talking about aviation growth, Gittens revealed that in spite of worldwide economic uncertainty and political instability in many countries in 2013, airports accommodated over six billion passengers, with both passenger and cargo traffic growing at faster rates than the previous year, indicating signs of a subdued recovery.

She pointed out that passenger traffic grew at 4.8% versus 4.4% in 2012, and cargo, although still sluggish, nearly hit the 1% growth mark, at 0.9% versus 0.5% in 2012. Movements, on the other hand, grew at practically the same rate as the previous year at 0.7%.

Joe Bates picks out some of the highlights of Mays Asia-Pacific/World Annual General Assembly, Conference & Exhibition in Seoul.


EVENT NEWS: WAGA

Show time

The Middle East and Asia took the lead in both passenger and cargo growth, Gittens explained. Although Asia-Pacific only grew 2.1% in cargo, it managed to pull the rest of the world into positive territory due to the fact that it handles 38% of the worlds total cargo throughput.

Economic outlookACI economic figures showed that the industry as a whole was profitable in 2013, although Gittens repeated the concern that industry profitability is primarily generated from the 20% of airports that carry the bulk of passenger traffic.

In fact, 67% of airports globally operate at a net loss and 80% of airports with fewer than a million passengers posted an average net loss of 6%. Furthermore, airports with fewer than one million passengers had a return on invested capital of -1.1%.

Annual achievementsOutlining ACI Worlds achievements over the past year, Gittens stated that its relationship with ICAO was stronger than ever before, something that was epitomised at the ICAO Triennial Assembly when: ACI members and staff from all regions contributed their time and expertise on the working groups, panels and conferences that constitute the ICAO policy-development process.

Other industry players increasingly see airports and ACI as valued collaborators, she added. This philosophy culminated in our first-ever Memorandum of Understanding with IATA last October.

The MoU is followed by annexes in which ACI and IATA have agreed to work on specific activities, including co-operation on ground handling best practices; automated border control; improvement of existing passenger security processes; and the joint Smart Security initiative.

She noted that the growing popularity of ACI-led initiatives such as the Airport Excellence (APEX) in Safety, Airport Carbon Accreditation (ACA) and Airport Service Quality (ASQ) programmes demonstrated the

industrys commitment to raising the bar on safety, environmental management and customer service.

While ACIs training programmes, according to Gittens, continue to go from strength to strength, she enthused: We now have 14 training centres and last year we delivered 124 classroom courses with over 2,000 students and nearly 12,000 hours of online coursework.

Eight new courses were launched to meet a range of training needs for airports large and small, and we have increased our language capabilities.

The board acknowledged that 23 new members had joined ACI since the 2013 General Assembly. They included Akwa Ibom International Airport (Nigeria); Manas International Airport (Kyrgyz Republic); King David the Builder Kutaisi International Airport (Georgia); Vladivostok International Airport (Russia); Bogots Aeropuertos de Oriente (Colombia); and Charlotte Douglas International Airport (USA).

It also approved the decision to make Ad Rutten Amsterdam Schiphols retiring executive vice president and COO an Honorary Member of ACI.

Six new resolutions in total were passed at the World Assembly, including ones calling for continued co-operation with industry stakeholders; affirming the commitment to safety as airports top priority; and recognising the importance of promoting diversity to meet the demand for the next generation of airport professionals.

Anyone who attended the AMPAP graduation ceremony that followed the World Assembly could see the diverse range of backgrounds represented by this years successful candidates, so later I asked ACI about the reasons behind the move.

It is a message to the industry and outside the industry that we are open to all when it comes to broadening the talent pool and attracting new people, explained Gittens.

Airports in general have always had a policy of diversity, particularly when it comes to attracting women to a traditionally male-dominated field. The resolution merely affirms the commitment to diversity.


EVENT NEWS: WAGA

AW

Allan Padilla, director of operations at Quito International Airport, is a proponent of the APEX in Safety programme and believes that developing a safety culture in airports across the Latin America-Caribbean region should be a top priority.

When an airport volunteers to host a safety review of its aerodromes physical characteristics, Safety Management Systems, Aircraft Rescue and Fire Fighting and operational procedures, you can only applaud their openness to change and willingness to nurture a culture of safety.

ACI Worlds APEX in Safety programme, created to assist airports in developing countries enhance their safety levels and ultimately reach national CAA certification, is increasingly being requested by airports large and small around the world.

It is designed to help airports worldwide identify and address safety vulnerabilities. The programme is built on the ICAO principles of information transparency, and reviews take place in a non-punitive just culture environment where sharing data and best practices leads to excellence.

In February 2012, Allan Padilla, then director of operations for SAP Ramon Villeda Morales International Airport (San Pedro Sula, Honduras), requested an APEX in Safety review to be held in order to enhance safety and give his staff the opportunity to grow, learn and exchange with peers from various airports and develop a keen interest in making their airport safer.

Now the director of operations at Quito International Airport (UIO) in Ecuador, Padilla was determined once again to host a peer review at his new airport even though it was still in its first year of operations.

Indeed, the fact that Quitos new gateway has a good safety record made it the ideal time to ask peer experts for recommendations in order to ensure that they were consistently exploring all opportunities to further enhance their safety performance.

The review, held at the airport from July 7-11, provided its operating management company, Airports Worldwide (formerly ADC & HAS Airports Worldwide), with a broader network of industry contacts from around the Americas.

Safety experts from San Antonio, Aruba and Sarasota Manatee International airports joined with the director general of ACI Latin America-Caribbean, Javier Martinez, and ACI World team leaders, Juan Manual Manriquez and me, to perform the review.

ICAO has called on the industry to embrace safety as its number one priority. APEX is the correct, comprehensive and voluntary initiative for airports to effectively assess and improve their safety standards, said Martinez upon Quitos successful completion of the APEX in Safety review.

I applaud Quito International Airport for its commitment to achieving excellence in safety, supported by the expertise of the ACI APEX in Safety team.

Given his commitment to the APEX in Safety programme, Allan Padilla can certainly be seen as a leader in promoting a safety culture within in his own organisation, as well as the Latin America-Caribbean region at large.

It has been a tremendous experience participating once again in the APEX programme, he said. Quito International Airport will benefit from this safety review, performed by worldwide airport professionals.

Additionally, it is a pleasure to see how the APEX in Safety programme has matured and improved since our first review in Honduras a couple of years ago. I would like to take this opportunity to invite other airports in the region, and indeed around the world, to take advantage of this great programme, which will without a doubt enhance your airports safety and that of your region at large.

ACI WORLD NEWS


A successful APEX in Safety review at Quito bodes well for the region at large, writes Danny Boutin.

World in motion

About the authorDanny Boutin is ACI Worlds senior safety assessor, APEX in Safety.

Members of ACI Worlds APEX in Safety team and Quito International Airport staff during the recent APEX in Safety review with Allan Padilla (centre), the airports director of operations.

ACI WORLD NEWS


ACI officesACI World Angela GittensDirector GeneralPO Box 302800 Rue du Square VictoriaMontral, Quebec H4Z 1G8CanadaTel: +1 514 373 1200Fax: +1 514 373 [email protected] www.aci.aero

ACI Fund for Developing Nations AirportsAngela Gittens Managing DirectorTel: + 1 514 373 1200Fax: +1 514 373 [email protected]

ACI Asia-PacificPatti Chau Regional DirectorHong Kong SAR, ChinaTel: +852 2180 9449Fax: +852 2180 [email protected]

ACI AfricaAli Tounsi Secretary GeneralCasablanca, MoroccoTel: +212 660 156 [email protected]

ACI EuropeOlivier Jankovec Director GeneralBrussels, BelgiumTel: +32 (2) 552 0978Fax: +32 (2) 502 [email protected]

ACI Latin America & CaribbeanJavier Martinez Botacio Director GeneralPanama City, PanamaTel: +507 238 [email protected]

ACI North AmericaKevin Burke President & CEOWashington DC, USATel: +1 202 293 8500Fax: +1 202 331 [email protected]

ACI represents 591 members operating 1,861 airports in 177 countries and territories, which in 2013 handled 5.95 billion passengers, 93.6 million tonnes of cargo and 79.6 million aircraft movements. ACI is the international association of the worlds airports. It is a non-profit organisation, the prime purpose of which is to advance the interests of airports and promote professional excellence in airport management and operations.

September 7-10

ACI North America Annual Conference & Exhibition Atlanta, USA

2014 2015

February 25-27

ACI Airport Economics & Finance Conference & ExhibitionLondon, United Kingdom

2014

November 8-11

ACI Latin America & Caribbean Annual Conference & ExhibitionCancn, Mexico

2014

October 12-14

ACI Africa Assembly, Conference & ExhibitionDurban, South Africa

2014

September 17-19 The Trinity Forum Taipei, Taiwan

ACI events

Worldwide, over 470,000 professionals are employed in airport management and operations. They utilise a wide range of skills and strategies to ensure that their airports run safely and securely, practising sound environmental

stewardship, assuring a smooth journey for the passengers, maintaining healthy finances and upholding the airports role as an economic generator for the community.

For this reason, the principal goal of ACIs Global Training function is to help students develop a relevant body of knowledge and skills for their current role in the organisation and to prepare them for their next role.

Under the guidance of its Training Steering Group, World Committees and Regional Human Resources Committees, ACI continues to innovate and design flexible classroom and online education programmes to maximise benefits at all levels at the airport, from top executives to frontline staff.

Since its launch 11 years ago, ACI Global Training has grown to offer an unrivalled suite of courses to meet a range of training needs for airports large and small. In fact, eight new courses have been launched and we have increased our language capabilities so that we can deliver more French and Spanish language classes.

We have also delivered our first course in Arabic and another simultaneously translated into Mandarin.

As well, in keeping with our pledge to leave no airport behind, ACIs Developing Nation Airport (DNA) Assistance programme has delivered nine courses in English and French in the last year, welcoming 302 participants from 60 different countries.

One of our newer programmes is the very popular Airport Operations Diploma Programme (AODP), which is fully online with all three modules Airside, Landside and Terminal, and Business Operations. The Airside module has already been translated into Spanish, with the other two modules to follow shortly.

Of course, our pride and joy is our first collaboration with ICAO, the Airport Management Professional Accreditation Programme (AMPAP). Through the end of 2013, the AMPAP programme has seen 700 International Airport Professional Diploma graduates and 72 Associate Diploma graduates, with some 607 students now enrolled.

The highlight of my year is the graduation ceremony that we hold directly after the World Annual General Assembly, where the CEOs can witness the achievement of their high-potential managers.

But ACIs training programme isnt just about educating the current generation of airport professionals; as aviation grows, airports need to effectively compete with other industries in attracting new skilled candidates.

Our courses are a great way of ensuring that new or prospective hires understand that working at an airport offers a satisfying career path with plenty of opportunities for professional and personal development.

In the end, we are an industry of people serving people, and across every initiative that ACI undertakes this fact remains top of mind.

It is no exaggeration to say that without skilled employees to keep our customers safe and secure, aviation wouldnt be the force that it is today for connecting people, places and businesses around the world. We are here to help develop those skills. AW


ACI VIEWPOINT

View from the topACI World director general, Angela Gittens, explains the importance of training current and future generations of airport professionals.

When commissioner, Rosemarie Andolino, walks out of the Chicago Department of Aviations office for the last time this autumn, there is absolutely no doubt whatsoever that OHare and Midway international airports will be losing

one their biggest supporters.A local girl she grew up in Elk Grove Village just west of OHare

Andolino admits that she has always been a fan of the Windy Citys airports, so the chance to help develop them, first as executive director of the OHare Modernization Program (OMP) and then as commissioner of the Chicago Department of Aviation (CDA), was an opportunity she says she simply couldnt turn down.

And she certainly couldnt be accused of sitting back and taking it easy as under her leadership the citys gateways have undergone somewhat of a transformation in terms of new infrastructure, route development, profitability and pioneering environmental initiatives.

So what has it felt like to be the boss of one of the worlds biggest airport systems for the past five years?

Its been exciting, a learning experience and an amazing ride, enthuses Andolino, who is stepping aside in October to pursue a new challenge in the private sector after 24 years in local government and 11 years in aviation.

My focus was to take two great airports and make them better, and I genuinely believe we have over the past five years.

Rise to the topAndolino worked in various positions for the City of Chicago from 1990 onwards and served as first deputy commissioner in the Citys Department

of Planning and Development (DPD) before then Chicago mayor, Richard Daley, appointed her executive director of the OMP in 2003.

The role put her well and truly in the spotlight, with some questioning her suitability to oversee the $8 billion OMP, despite the fact that as first deputy commissioner with the DPD she managed a $35 million budget, oversaw $100 million of land acquisition and capital investments in the Neighborhoods Alive Program, and helped secure state and federal funding for numerous city projects.

She proved her critics wrong by successfully working with federal, state and local officials to secure OMP funding. Indeed, in November 2005 the then US Department of Transportation Secretary, Norman Mineta, travelled to Chicago to approve the citys request for more than $300 million in federal funding.

And since then the OMP has raised more than $5 billion through the sale of bonds and received approval for four Passenger Facility Charge (PFC) applications by the FAA to fund design, construction and land acquisition projects.

Under Andolinos leadership, the OMP also created the Sustainable Design Manual (SDM), a nationally recognised document that has allowed OHare to become the benchmark for environmental stewardship in design and construction for a civil project.

The successes led to her being appointed commissioner of the CDA in February 2009 and, arguably, she has acted as the catalyst for one of the most successful periods in the history of OHare and Midway.

If you think of the runways weve built on time, ahead of schedule and under budget; the complete transformation of Terminal 5 at OHare; traffic growth; record revenues; the installation of the first

Chicago hopeCommissioner, Rosemarie Andolino, talks to Joe Bates about an eventful five years in the hot seat at the Chicago Department of Aviation.

CHICAGOS AIRPORTS


Automated Passport Control (APC) kiosks in the United States; and the fact that times have never been so robust in terms of new air services, I think my record holds up pretty well, she says.

Andolino could also have mentioned the significant strides Chicagos airports have taken to embrace environmental best practice and to improve their customer service levels, or the image-enhancing upgrades to the domestic terminals that have included, and continue to incorporate, the introduction of a number of new concession concepts.

She quips: I may not have grown up in the aviation business, but Ive grown up in the business of getting things done.

OHare Modernization Plan (OMP)Phase 1 of the $8 billion programme incorporated two new runways, a runway extension and a new ATC tower. Phase 2A, to be completed in October 2015, will add a new runway and another ATC tower on the south of the airfield.

The new control towers mean that by the end of next year OHare will be equipped with three ATC towers, two of which will be LEED certified Silver and Gold respectively and will feature green roofs.

One of the towers will use geothermal technology and other sustainable initiatives that will make it unique in the US.

The airfield reconfiguration programme will equip OHare with eight runways three east-west parallel runways and cross-field runways each to the north and south of central terminal core.

There are not too many airports in the world that can claim to have built three and a half new runways and two air traffic control towers in such a short space of time, enthuses Andolino.

It is definitely one of the highlights of my time in office as some people can go a whole career without getting permission for a single new runway. The new airfield is the safest and most efficient way to operate OHare.

Being able to handle more than 200 aircraft movements per hour should also ensure that delays at OHare no longer have such a negative impact on the entire US airport system, or as someone once said, when OHare sneezes, everyone catches a cold.

Whats left with the OMP? One more runway, one more extension and a possible 60-gate western terminal complex, says Andolino, suggesting that the new passenger complex is more of a long-term and demand-driven project.

Until then, enhancements of the existing terminals to maximise their operational capacity and efficiency are likely to take priority, she says.

EnvironmentInitiatives such as establishing 75 beehives on remote locations across the airport site; hiring a shepherd and grazing herds of goats and llamas to manage hard-to-reach vegetated areas at OHare; or opening an aeroponic garden in T3 where vegetables, peppers and herbs are grown for airport restaurants have grabbed the headlines and firmly established Chicagos airports as environmental pioneers.

However, Andolino believes it is the CDAs long-standing commitment to sustainable development that helps set it apart from the rest, makes it a good neighbour to local residents and has reduced its costs.

She points out that the CDA was talking about LEED-certified buildings back in 2003 when it produced its first Sustainable Design Manual (SDM) since evolved into the Sustainable Airport Manual (SAM) which effectively outlines what is expected from all OHare and Midway stakeholders.

All concessionaires, for example, are now required to use biodegradable wrappers and packaging, and Andolino states it has proved so popular that some have since adopted similar policies elsewhere.

Customer serviceAndolino states that the drive to deliver top-quality customer service is a priority of the CDA as it wants to showcase the very best of Chicago to visitors and reflect the citys famous Midwest hospitality.

She firmly believes that collaboration with other airport stakeholders is the key to good customer service and argues that all sides need to work on making improvements at their specific touchpoints.

The customer has many touchpoints at an airport, many of which are not under our control, so therefore everyone has to do their part to ensure that our passengers enjoy a good experience.

For us it might be something as simple as ensuring that the bathrooms are clean or making it easier to get assistance and information. All frontline staff at OHare and Midway are effectively ambassadors for our airports and therefore need to be passionate about their jobs and the city of Chicago.

Andolino also enthusiastically talks about the CDAs new, improved partnership with TSA and Customs and Border Protection (CBP) staff at the airport, which she believes has helped create a more customer-friendly environment.

We managed to change the conversation with them by opting to work together to solve problems instead of playing the blame game and pointing fingers at each other.


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17

She also feels that opening airport versions of a number of popular Chicago F&B and retail outlets most noticeably in OHares newly revamped T5 has helped enhance a sense of place, create a better customer experience and ultimately boost higher retail revenues.

Airport rolesBetween them Chicagos airports handled a total of 87.3 million passengers in 2013 and the upturn has continued into 2014, with volumes up by nearly 4% at OHare and 2% at Midway in the first five months of the year.

OHare, the citys main international gateway, accounted for 66.9 million (+0.4%) and Midway which essentially handles domestic services and international flights to Canada, Mexico and the Caribbean accommodated 20.4 million (+5%).

The difference in traffic is down to the fact that Midway is built on a site of just one square mile and the 6,500ft (1,980m) length of its longest runway is not enough to accommodate non-stop flights to long-haul destinations.

It does, however, handle regional traffic, with airlines such as Volaris and Porter serving Mexico and Canada respectively, and Southwest serving Mexico, the Dominican Republic and Jamaica.

As a result, APC kiosks were installed at Midway earlier this year to make it easier for US citizens on international services to pass through its facilities.

Route development When you talk to Rosemarie Andolino about the highlights of her five years in charge of Chicagos airport system, the subject of route development is right up there.

Indeed, she mentions attending World Routes in Vancouver in 2010 as a turning point for the CDA as it proved to her that Chicago had to do much more than just show pretty postcards of Chicago to airlines to get them to launch services to OHare or Midway.

And she has certainly taken the lessons she learnt in Vancouver to heart, as the development of a new route development strategy since then has led to the most productive period in Chicagos history in terms of the launch of new routes and frequency increases.

Andolino actually cites the launch of Etihad services (Abu Dhabi) in 2009 a year earlier than World Routes in Vancouver 2010 as the start of the current golden years of international route development for OHare.

She notes that Qatar (Doha) followed in 2013, and the addition of Emirates (Dubai) later this year will give OHare the full set of big Middle Eastern carriers.

Other additions under Andolinos leadership include Cathay Pacific (Hong Kong), Copa (Panama), Air India (Delhi), WestJet (Calgary and Vancouver), airberlin (Berlin), Austrian Airlines (Vienna), Hainan Airlines (Beijing) and Volaris (Guadalajara, Zacatecas, Morelia and Leon), while Spirit has trebled its operations into Chicago.

When we talk about airports as economic engines, depending on the size of the aircraft and the destination, a new route could add anything from $20 million to $200 million of investment per annum into your city, she enthuses.

In total, we have added over $3 billion worth of new services per annum to Chicago in the past five years and this is an achievement of which I am particularly proud.

CHICAGOS AIRPORTS


AW

A new route could add up to

$200 million of

investment per annum into

your city

In its 2013 Capital Needs Survey, ACI-NA found that US airports need to complete $71.3 billion worth of essential infrastructure projects between now and 2017 in order to keep pace with demand.

The figure amounts to $14.3 billion a year, with 54% of the total allocated for projects to accommodate traffic growth and an increase in the use of larger aircraft, and the remainder on the rehabilitation, maintenance and repair of existing infrastructure.

It revealed that large hubs will account for $37 billion or 52% of the total; medium hubs for $9.3 billion (13%); small hubs for $5.8 billion (8%); non-hubs for $5.1 billion (7.2%) and other commercial airports for $700 million (1%).

The survey of 3,400 aviation facilities also found that the top three states by airport capital needs are Texas ($8.3 billion), Florida ($7 billion) and California ($6.6 billion).

The big spend in the three states is certainly borne out by a new survey of the top airport construction projects nationwide, which reveals that Dallas/Fort Worth (DFW), Tampa (TPA), Los Angeles (LAX) and San Diego (SAN) alone are responsible for projects totalling nearly $10 billion.

Carried out earlier this year by Reed Construction Datas chief economist, Bernie Markstein, the survey discovered that the biggest airport project underway in the US is the $5.6 billion extension of the Washington DC Metrorail system (see next issue of Airport World) to Dulles International Airport.

It is followed by the $4 billion second phase of a terminal expansion programme at LAX; the ongoing $3 billion upgrade of Denver (DEN), where work includes the creation of a new hotel and transit centre; DFWs $2.3 billion TRIP programme; and a $1.8 billion airport reconstruction project at Salt Lake City (SLC).

Looking at ACI-NAs survey, he says there is a crying need for improvement to the US airport system and has no hesitation in stating that the government isnt doing enough in terms of funding.

We havent seen support at the federal level to fill airports needs, warns Markstein. Theres been a lot of politics over spending money. Its about the view that spending any government money is bad. But this ignores the difference between infrastructure investment versus spending for consumption.

Its the difference between spending money on a new roof for the house or taking a trip to Disney World, quips Markstein. Taking the trip is enlightening and fun, but once its consumed, its gone, he notes. But the new roof shows benefits long after its done.

Infrastructure projects underlie the ability for the economy to grow, adds Markstein. Until 2012, airports were hurt by a series of continuing resolutions until Congress passed a transportation bill, he says.

Under continuing resolutions, airports couldnt make plans because they were not sure of funding. Ironically, one of the reasons airports arent getting money is because Congress wants to save money on government spending, but by not having long-term funding, you actually drive up costs.

Source of fundingPassenger Facility Charge (PFC) revenue, Airport Improvement Program (AIP) grants and bonds are, of course, the three main ways US airports fund development projects today.

And the pot appears to be getting smaller because the AIP budget which is funded by passengers has been cut twice in the past two years, first in the FY2012 appropriations process from $3.5 billion to $3.35 billion and most recently by an additional $253 million in FY2013.

The latest cut brought an end to FAA furloughs, despite that fact that airports must fund more than $70 billion in safety, security, noise, capacity and passenger service projects during 2013 to 2017.

While Congress has so far refused to bow to industry demands to raise the cap on PFC revenue from $4.50 per boarded passenger to provide airports with a much-needed cash injection to fund new facilities.

Invest USAHow are US airports dealing with the need to upgrade their infrastructure in the face of ongoing funding restraints? Benet Wilson investigates.

20 AIRPORT WORLD/AUGUST-SEPTEMBER 201420

DFWs $2.3 billion Terminal Renewal and Improvement Program (TRIP) will help reinvent the Texas gateway.The new front door for the Jeppesen Terminal at Denver International Airport. Image courtesy of Gensler.

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Indeed, ACI-NA has gone on record in registering its disapproval at the governments reluctance to increase the PFC.

The average annual of $14.3 billion in needs is still significantly higher than the funding available through annual AIP grants and new PFC revenue, states the 2013 Capital Needs Survey.

It is clear that the existing federally mandated funding system simply fails to meet US airport capital needs for modernising and expanding airport capacity, which is critical for a safe, efficient and globally competitive aviation system.

And perhaps more directly, in a policy document it says: In order to help make airports whole, Congress should increase the Passenger Facility Charge (PFC) to $8.50 to restore its purchasing power. This would allow airports to have the ability to raise money locally to fund critical infrastructure needs.

Annie Russo, senior director of government affairs for ACI-NA, adds: We have been advocating for an increase in the PFC for a long time, and will continue to do so going forward.

Wed also like more money for AIP, but we understand the realities of the federal budget.

Without doubt it is a tough operating environment, but as Marksteins survey shows, the ongoing restraints in federal funding have failed to stop many of the USs biggest airports investing billions of dollars in upgrading their facilities.

Below we highlight a handful of infrastructure development projects that gained funding and are making headline news in the US.

Texas TRIPDallas/Fort Worth International Airport is in the middle of its seven-year, $2.3 billion Terminal Renewal and Improvement Program (TRIP).

Honestly no one needed a lot of convincing to do this project, says David Magana, senior manager of public affairs for the airport. After opening Terminal D in 2005, it clearly showed that the original terminals needed a refresh because the oldest one is 40 years old.

We needed things like self-check kiosks and new concessions. The airport board and the airlines were ready to do it.

In getting funding in place for TRIP, DFW faced the same challenges that other airports face: having to take on debt, said Magana.

PFCs dont keep pace with airport infrastructure needs. But we felt strongly that the scope of TRIP had to fit within our financial realities, he tells Airport World.

It became a matter of aligning our goals with the airlines goals. TRIP started at $1.9 billion, but we added things like new parking garages and more energy-efficient infrastructure, so the project is now at $2.3 billion.

These are not cost overruns, but an expansion of our scope. Were still staying within our costs.

Tampa timeTo the south-east of Texas, Floridas Tampa International Airport is in the design phase of a $2.5 billion, 20-year airport master plan to upgrade a facility that first opened in 1971.

CEO, Joe Lopano, has set his goals for the airport adding new flights, growing passenger revenues and completing the master plan.

On convincing stakeholders that the programme was needed, Lopano started by conducting a two-year study on the airports needs.

We wanted to make sure we understood all the issues and opportunities, he explains. Once we did that, we began outreach efforts to as many people as we could to show our solutions. If a plan is well articulated and explained often enough, its an easy sell.

Lopano says his job was to convince stakeholders, including federal, state and local legislators, chambers of commerce, local businesses and anyone who makes money with the airport.

The airport is an economic driver in the region, he notes. It opened in 1971, and now is the time to invest in its growth. I emphasised that our plan was affordable and would create 9,000 construction jobs and give us what we need to grow for the next 20 years.

The first phase of construction will include: decongesting roadways and passenger drop-off and pick-up kerbsides; building a consolidated rental car facility; providing connections to regional transportation systems; adding spaces to the long-term parking garage; increasing opportunities for commercial development on the south part of the airport campus to diversify the airports revenue stream; and creating new concession opportunities.

The airport lined up various forms of financing for the project, says Lopano. We actually refinanced existing debt using direct bank loans. Banks werent interested in that before the economic meltdown but they are now, and we got some great rates.


San Diegos $1 billion Green Build project has transformed the airport.


AW

Construction at Denver. Image courtesy of Ryan Gobuty.

Our credit ratings is A+, and in order to let the bond community know what we needed, we met with the three rating agencies and the bond buying community in New York City, told them what they would be buying and they were happy. We made an articulate and compelling case on why were doing what were doing.

Tampa Internationals 20-year plan is broken down into three phases, according to Lopano. We didnt need to do it all at once and wont do phase two or three unless theyre necessary, he admits.

That will be driven by if we get more international growth. We can stay in our current international facility for another 10 years.

San Diegos Green BuildGoing west, San Diego International Airport completed its $1 billion Green Build construction project in August 2013.

And president and CEO of San Diego County Regional Airport Authority, Thella Bowens, admits that getting local residents onside was crucial to the success of the project.

One of the most important things we did in garnering support for the project was an effort to help the community understand the value of the airport to the regions economy, she says.

In our case, this translates into an annual economic impact of $10 billion, and this certainly helped everyone see it from a different perspective.

Highlights from the Green Build included: 10 new gates to reduce terminal congestion; enhanced kerbside check-in, allowing passengers to print their own boarding passes, check baggage and view gate information at an easy-to-use kerbside kiosk; more security lanes to improve flow of passengers through the terminal; and expanded concessions.

The Green Build started construction during the global recession, but the airport had been planning it for 10 years, so although the timing wasnt perfect, it was necessary, concedes Bowens.

As we began to conceptualise our design, we had stakeholder groups at the table to get their input, she says. Our airlines had a

seat at the table from the very beginning, which was one of things that made it possible to move ahead with the project even after the recession had set in.

The airport authority thought that funding the project might be a problem, but the airport had a strong history of prudent finances, which did not go unnoticed by the three rating agencies, reveals Bowens.

We had an A+ and A rating and those spoke volumes on the management of our finances. You dont garner those kinds of ratings based on one point in time, she enthuses.

We were fortunate to have good ratings from all three agencies. And because the construction business was in real trouble, we were able to take advantage of lower costs to build the project.

What next for US airports?As for future funding prospects for US airports, ACI-NAs Russo notes that the current FAA Reauthorization Bill expires in September 2015.

She says: There was a hearing [recently] before the US House of Representatives Transportation Committee on airport financing, the first one thats been held. There was also one on airports in small communities. That shows that Congress is beginning to think about FAA reauthorisation.

Russo insists that ACI-NA will focus on total airport financing during the next FAA reauthorisation process.

Well show members of Congress how airports are financed and the options available for their capital needs, claims Russo. Well also make sure AIP remains a strong programme, especially for smaller airports that need it as a lifeline.

Airports can certainly be assured that both ACI-NA and the American Association of Airport Executives (AAAE) are working to make sure that their voices are heard on Capitol Hill, according to Russo.

Were working to make sure airports are represented in the conversation and that Congress understands the capital needs of airports and the importance of air service to communities across the country, she says.

22 AIRPORT WORLD/AUGUST-SEPTEMBER 201422


Airport World 4 2014 Now available online

>The magazine of the Airports Council International

In this issue

In the spotlight: Invest & BuildAirports: Chicagos airports, San Juan (Puerto Rico) Special report: Sound of MusicPlus: Environment, car parking & customer service

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Airport World, Issue 4, 2014