A comparison of airport relocation contrasted against the current UK airport debate

Runways UK Land – June 2014 Runways UK Land – June 2014

A World Tour

Chris Chalk, Deputy Chair BAG

Runways UK Land – June 2014

• UK involved at World’s top 60 international airports

• We contribute to most of the award winning airports

• Heathrow T5 - World’s best terminal

• It’s not about the ability to deliver on the airport it’s

about everything outside the airport

Our delivery capability


What are we looking for

• Experience from replacement airport

development

• Scale of redevelopment and distance

• Success factors

• Old airport redevelopment


A World Tour – replacement airports

Istanbul

Munich

Hong Kong

Bangkok

Athens

Oslo

Denver

Quito

Montreal


Relative Size

0102030405060708090

100m

pp

a o

n c

lose

Heathrow?

At Closure

Current

Growth to close


Issue of distance (from old to new)

0

10

20

30

40

50

60

70

80

90

0 20 40 60 80 100

Dri

ve d

ista

nce

(m

iles)

Airport size (million pax)

Heathrow/Thames

Istanbul Bangkok

Hong Kong

Oslo

Berlin

Denver

Munich

Athens

Quito

Montreal


Relative scale of move

0

10

20

30

40

50

60

70

80

90

0 20 40 60 80 100

Heathrow /

Thames Estuary

Istanbul Bangkok

Hong Kong

Oslo

Berlin Denver

Munich

Athens

Quito

Montreal


• Move to new airport – old airport left to market – Hong Kong

• Move to new airport – state redevelop old airport – Denver

– Munich

• Move to new airport (and back again?) – Bangkok

– Montreal

• Move to new airport – project finance – Athens

– Quito

– Istanbul


Move to new airport

– old airport left to market


Hong Kong

Kai Tak to

Chek Lap Kok

30 mppa on close in 1998

22 miles

Overnight move

No cross funding


HKG

Expanding

Expanding from 70 to 120mppa

Population build up around airport

Night-time noise limits


Hong Kong Kai Tak Airport - 2013

15 years after opening

Little re-development

Legal challenges

Off site development first


State redevelopment of old airport


Munich 12 mppa on close in 1992

20 miles


Munich Reim Airport


Denver 12 mppa on close in 1995

17 miles

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Denver Stapleton Airport


Move to the new (and back again)


Bangkok 38 mppa on close in 2006

30 miles

Partial move back to Don Muang


Bangkok - Don Muang International Airport 2014


Montreal Dorval to Mirabel Airport 8 mppa on “close” in 1975

30 miles

Dorval never closed

Passenger terminal to be demolished 2014


Privately financed airports


Athens 11 mppa on close in 2001

18 miles

Concession

No cross funding of land


Athens (old) Ellinikon Airport 2014


Quito Airport 6 mppa on close in 2013

20 miles

Concession

No cross funding of land


Old Quito Airport


Istanbul Airport ~ 75 mppa on close in 2017

35 miles

Concession

No cross funding


Istanbul 3rd Airport

• 2.8m population new city to be developed

• 2 million sqm airport commercial centre

• Opening 90mppa

• Opening 2017!

• Ultimate capacity >150mppa

• 5 runways

• 7,500 Ha (5x Heathrow)


Summary

• The market will protect the land prices and

constrain re-development

• Redevelopment by the State requires further

cash and limited return

• Unrealistic plans will backfire

• Existing airport asset values are not used in

funding replacement airports in the private

sector


The measure of the challenge

0

10

20

30

40

50

60

70

80

90

0 20 40 60 80 100 120

Heathrow /

Thames Estuary

Istanbul Bangkok

Hong Kong

Oslo

Berlin Denver

Munich

Athens

Quito

Montreal


Questions

Chris Chalk, Deputy Chair BAG

Presentations & Public Speaking

A comparison of airport relocation contrasted against the current UK airport debate