Future of Airports

 ADB Safegate and New Airport Insider conducted an informal poll of professionals from aviation-related sectors including consultants, airlines, regulators, airports and media as a follow up to the 2013 survey to understand the ‘pulse of the market’. We bring you insights into the concerns, priorities and the evolution of airports as the industry dynamics change.

 

Results of an ADB Safegate and New Airport Insider 2015 poll 

The changes across aviation are impacting airlines, airport operators, manufacturers and suppliers with priorities for airports changing. These realigned priorities will be felt in how airports plan and invest in technology.

Pressing Concerns – What are the main concerns with regards to the aviation industry for 2015 and the following three years?

  1. Airlines cutting corners, squeezing employees and this is resulting in low morale. Decreasing airport connectivity is another worrying trend. Aggressive competition among Low Cost Carriers is driving Full Service Carriers into bankruptcy.
  2. Safety and efficiency: Air traffic has greatly increased and will continue to do so. Congestion during peak transition periods makes it increasingly difficult to close runways for major and much needed repairs or replacement, and is a potential safety issue. It might be wiser to close the deteriorating runways and taxiways rather than wait for a failure.
  3. Airport security is being ramped up in the wake of recent attacks at leading airports, with the aim of securing the safety of passengers, personnel and infrastructure
  4. Compliance: Greater government regulations and restrictions, and the overreach of regulatory bodies like FAA, EPA and is increasing the cost of compliance
  5. Interoperability of airport equipment and systems is still an issue, with airports lamenting that manufacturers continue to push their solutions and aren’t working enough with others to achieve interoperability

Key Priorities – How are airports responding to these concerns, what will change for airports and the main focus areas?

  1. Streamline the traveller experience: Going to airports will be a planned activity, with the opportunity for airports to streamline the traveller experience and also generate revenues. Airport cities are a sustainable model; there’s an opportunity and need to maximize the growth of non-aeronautical revenue.
  2. Seeking safety, cost effectiveness, efficiency and sustainability: Airports continue to focus on increasing airport safety and efficiency while reducing costs and environmental impact
  3. Increased technology investments in Airfield Ground Lighting (AGL), Air Traffic Control, Foreign Object Debris, Maintenance, Runway Incursion, Follow the Green to speed up the taxiing procedure of aircraft to and from the runway system and make guidance safer, and alternative energy solutions (in that order) are the result of airports’ quest for improved safety and efficiency
  4. Safety focus not limited to technology implementation: Beyond implementation of next-gen, state-of-the-art systems or pilot and visibility-friendly AGL like LED, airports are looking at other safety improvements e.g. exploring fundamentals like one way ramps, aprons, taxiways, very brightly coloured service vehicles with blue ground strobes, improved facility maintenance and training and deployment of trained manpower especially to enhance electrical safety
  5. Multi-faceted approach to sustainability: From measuring carbon released during construction to specialized crops in adjacent farmland, emission reduction (Clean Development Mechanism), energy reduction, and alternative energy sources, there’s a range of green best practices. Examples include incentives for aircraft with low emission and sound levels, heavy investments in LED or wind/solar to power lighting and various areas of the airport, recycling of waste, fuel efficient equipment, and use of electric buses.
  6. Terminal, airfield and maintenance still hog bulk of the airport budget (from 40% to 90%) with a small percentage directed towards IT.
  7. More collaboration, greater interoperability: In response to airports’ demands for increased operational efficiency, technology providers and equipment manufacturers realize the need for greater collaboration to achieve better interoperability between systems.
  8. Technologies gaining traction include (1) mobility and cloud-based infrastructure, Dynamic Airport Terminal Departure/Arrival Holding Rooms and Service Areas to minimize duplication of resources and staff, and boost efficiency and (2) Clean Development Mechanism, alternative energy sources and LED to increase sustainability. In case of LED, the expectation of lower TCO and payback of three years use over installation and reduced maintenance costs will be a key driver.

Peek into the future – How will airports evolve, and what will they do differently in the years to come?

  1. More and more passenger-centric: From fancy restaurants to having a spa day, the trip to the airport now involves pre-planned shopping and is an EXPERIENCE.  It’s this EXPERIENCE that airports should market to passengers with the ‘classic upsell’. The average traveller simply wants to know the value received for the inconvenience of having to travel to and from the airport. Airports could embellish every aspect of the passenger’s trip, make them feel special, and deliver an experience that is worth the price of admission.
  2. Future airports are Aero-city within the city, not airports within a city but self sufficient and reliant.
  3. The Low-Cost, No-Frills Alternative: We will see more Low Cost Carrier terminals without shops; regional airports will evolve into a more point-to-point network. These will focus on getting passengers from Point A to B, where travellers show up 15 minutes before boarding.
  4. Lots of automation:
    • More Control from the Air Traffic Control Tower and manoeuvring area; systems and backup systems in place for lighting and sign outage
    • Fewer personnel for inspections using tablets and handheld phones accessing most up-to-date regulations at a glance, measuring and implementing work orders to address anything that is incorrec
  5.  Safer, Greener, More efficient
    • More guidance lighting with more stop and go bars in both the taxiways and runways in order to increase safety
    • Higher demand equating to larger aircraft and larger runways. Larger gates, but hopefully fewer gates
    • Greener technology allowing for higher efficiency and sustainability standards
  6.  Recreational General Aviation is declining, corporate jets are recovering. Airlines really need to focus on co-sharing equipment, routes, and passengers if they plan to be here in 10 years.  Airports will still be here!

In summary, airports will evolve into three kinds – the airport city with its encompassing urban infrastructure and amenities, the airport with all the frills where passenger experience is key, and low cost terminals for the no-frills experience. Up-selling will help generate revenues while technology investments in areas like AGL, ATC, Maintenance and IT will continue to grow. Key focus areas – safety, sustainability, cost and efficiency will be the primary drivers for these investments with multi-faceted approaches to achieving these.

 

New Airport Insider
ADB Safegate and New Airport Insider conducted an informal blog poll  of professionals from aviation-related sectors including consultants, airlines, regulators, airports and media as a follow up to the 2013 survey to understand the ‘pulse of the market’.