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Effective airport management models

presented by: Panos Alevras

Company’s strategy based on:� Providing high quality, modern airport facilities with a

reputation for efficiency, comfort, safety and security� Minimising the cost of airport development by staging

capacity increments in line with demand� Optimising current capacity be employing operational

solutions� Promoting the airport to maximise its use and profitability

through aggressive marketing� Pricing policy intended to encourage the efficient use of the

airports’ facilities� Aim at a balance between aeronautical and commercial

revenues� Clear distinction between outsourced and in-house provision

of services� Incentivizing the carriers

Factors influencing the supply of Air Activities……

� Competition: To ensure competition in the supply of airport services in order to give the airports’ customers choice and thereby encouraging efficiency and responsiveness to the differing requirements of passengers and airlines

� International standards and practices: To ensure the provision of high international standards of service

� Operational constraints: To ensure the efficient use of equipment and airport space, the number of suppliers operating at the airport will need to be limited

� Safety and security: To ensure high standards of safety and security are maintained throughout all activities

Factors influencing the supply of Air Activities

� Commercial arrangements: To set-up a framework of commercial agreements that will provide a profitable basis for conducting business, incentives for efficiency in the utilization of facilities and equipment and quality of service, for all parties involved

� Reliability: To ensure that key systems and facilities are operational at all times

� Integrated development: To ensure the planned development over time and within the space constraints

Improvements and efficiency initiatives

� Reduce operating costs and improve productivity� Improve retail space through refurbishments, re-

allocations and new commercial spaces� Improve retail space in terms of quality and allocation,

by reutilising unused spaces� Develop new strategies for cargo and logistics � Improve advertising income by introducing new

promotion points and re-designing the advertising policy

� Reallocate freed-up office space to retail or other commercial activities

� New real estate opportunities development

Operational Efficiency improvements and efficiency initiatives….

� Optimised resource management system;� Yield management tools to be put in place, bounded by

tariff legislation;� Collaborative Decision Making (CDM) with all airport

stakeholders;� Strategic plan focused in aggressive Marketing Policies

based on permanent visibility in the internet, delivering pre-booking tools to travel operators and official city tourism web sites, closing agreements with travel agencies and tour operators, as well as other initiatives to improve this driver.

Operational Efficiency improvements and efficiency initiatives

� Operational schemes that maximize the service and the security of passengers and baggage.

� Introduction of Centralised infrastructure (check-in counters with CUTE, BHS)

� Centralized CCTV for 100% of the facilities.

� Performance of operational changes.

� Service level improvements

Improving initiatives in retail and real estate operations….

� Airport infrastructures exist to serve community air travelling needs. Like many other social needs, air travelling has become popular as it became affordable to an increasing number of people. It has also evolved into an “experience”. Travelling does not begin when passengers board onto an aircraft, nor does it end with disembarking. It begins much earlier and ends much later.

� Airport retailing areas are part of the “travelling experience” in that they take advantage of the lower cycle of the “Travellers’ Stress Curve” to awake positive moods/emotions by creating relaxing environments/moments conducive to leisure activities (like dine & wine and shopping). Airport retailing has become an important and profitable part of the “travel experience”.

Improving initiatives in retail and real estate operations….

� The airport company’s mission should be to obtain a long-term sustainable increase of the retailing revenues with minimum impact on its aviation business.

Specific actions to improve retail revenues…..

� Expand retail areas where possible (Gate-shopping, Grab-and-Go);

� Review and implement layout & design changes in Airside and Landside where possible;

� Implement, when and where possible, themed retail areas after national or regional features (for example: “Gastronomy & Wines”, “Sun, Sea & Sympathy” ) in order to create differentiating factors and emotionally driven atmospheres;

� Review tenant-mix as a result of Client segmentation and re-organize retail areas, especially on food courts;

� Look for and bring in new innovative retail concepts (walkthrough, click & pick);

Specific actions to improve retail revenues

� Bet on quality of service by reviewing service standards in retail areas, especially at shop level and in food courts and, if necessary, organize training courses for tenants’ employees;

� Implement Safety Preventive Observations (SPO) throughout the airport retail areas in order to increase Client safety as part of Customer Care programs;

� Enhance communication by “Going digital” in communicating with Clients and cross promoting with tenants;

� Assess and optimize existing retail management and management processes on resources and systems;

� Benchmark performance of retail airport areas through ACI (Airports Council International) surveys and internal retail performance data.

Thank you