The Potential of Collaboration at Airports:

Optimizing passenger flow & increasing profitability

Presented by : P S NairCEO- Corporate GMR Airports

DELIVERING THE PROMISE OF AN IMPROVED

PASSENGER TRAVEL EXPERIENCE

26th September 2013

Aviation ICT Forum India 2013

Goa

26-27 September 20131

Traffic Growth – Its impact on Infrastructure

• Traffic growth can create serious imbalance between supply and demand.

• Runway, Airside facilities, PTB, Car Park, … : Scarce & Costly

• Many airports have reached saturation point that causes bottlenecks in today's air traffic management network.

• Therefore, Optimize the use of resources to meet these constraints

• Challenge : Delivering the promise of an Improved travel experience/delight & Operating the airport profitably in a highly regulated environment.

• Innovation and Infusing cost effective technology to achieve higher throughput assume significance in the above context.

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Solution - Collaboration ?

• Key : Collaboration amongst all stakeholders

• Environment : Complex value chain of Aviation Industry

• ACDM– Encourages Airport Operators, Airlines, Ground Handlers, ATC, Network

Manager Operation Center and AOCC

– To practice a more efficient & transparent cooperation

– To enhance air traffic flow & capacity management at an airport & en-route

– Ideal platform for such collaboration

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Air Traffic Control(ATC)

Airline

Duty Free

Aviation Turbine Fuel

(ATF)Provider

Other Agencies

ImmigrationEmigration

Customs

Non A-CDM Airports - Scenario

Airport

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Other Airports

Air Traffic Control(ATC)

Airlines

Aviation Turbine Fuel

(ATF)Provider

Duty Free

Other Agencies

ImmigrationEmigration

Customs

Collaboration

Airport

A-CDM : How it works ?

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Other Airports

Airport

Airlines

Aviation Turbine Fuel

(ATF)Provider

Duty Free

Other Agencies

ImmigrationEmigration

Customs

Collaboration

Air TrafficControl

A-CDM : How it works ? [contd.]

Advantages of A-CDM

Airline

1. Reduces fuel costs due to shorter taxi times and shorter turnaround times.

2. Improved On-Time performance

3. Fewer missed connections for passengers.

Airport

1. Reduced environmental impact, noise and emissions.

2. Improved punctuality

3. Improved gate/stand planning.

4. Increased capacity & its optimum utilization.

Air Traffic Control

1. More predictable traffic- therefore reduced work load and strain.

2. Better pre-departure sequence.

3. Better runway throughput.

Ground Handlers

1. Better planning and use of resources,

2. Cost optimization.

3. Improved customer satisfaction.

4. Increased productivity.

A-CDM

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A-CDM successfully implemented in US

US Airports: FAA Administered

A-CDM was successfully introduced in the USA to cope with heavy capacityreductions mainly due to en-route or airport bad weather conditions.

The initiative in the early 1990s called FAA/Airline Data Exchange (FADE),supported among others by Northwest Airlines, can be seen as the directforerunner of what evolved into the US CDM project of to-day.

It was initially tested at San Francisco International Airport, beginning inJanuary 1998.

Delays during ground delay programs were reduced by 15% during theexperimental period.

Just by being better informed, airlines were able to respond to the restrictions ina much more efficient manner.

A-CDM was extended to all U.S. airports in September 1998 and is fullyoperational today.

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A-CDM – EU Scenario

Europe: EUROCONTROL Administered

EUROCONTROL Airport CDM team is responsible for ensuring standardization anddissemination of best practice of Airport CDM implementation at European airports

A-CDM concept was brought to Europe by experts of IATA

The en-route concept of A-CDM was developed by EUROCONTROL on suggestion byIATA

EUROCONTROL A-CDM has both developed and trialed a number of A-CDM elementsand is currently proactively encouraging other European airports to implement AirportCDM locally.

According to the European A-CDM web-site, 30+ European airports have CDM projectsrunning

With the help of airport stakeholders, the European Airport CDM concept hasmatured over the years from a concept into a process that is delivering realoperational benefits.

More and more airports are currently implementing A-CDM and being rewarded by theproven benefits.

Munich has a truly advanced, complex and operational A-CDM set-up based on theEUROCONTROL A-CDM requirements which has been in operation withoutinterruption since 7 June 2007.

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How A-CDM has improved the bottom line? – An example

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Source : Airport CDM Cost Benefit Analysis, EUROPEAN ORGANISATION FOR THE SAFETY OF AIR NAVIGATION - Edition Number : 1.4 ; Edition Date : 11/04/2008

How A-CDM has improved the bottom line – An example

Return on Investment

Source : Airport CDM Cost Benefit Analysis, EUROPEAN ORGANISATION FOR THE SAFETY OF AIR NAVIGATION - Edition Number : 1.4 ; Edition Date : 11/04/2008

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CDM at Indian Airports

• GMR is operating two Major airports i.e. Delhi and Hyderabad.

• GMR Airports have taken the maiden initiatives to introduce CDM atthese airports.

• Delhi, IGI Airport is the first airport in India to fully implement A-CDMlive wef 5th June 2013).

• As a result of DA-CDM implementation, punctuality and capacitymanagement have been greatly improved.

• BIAL has initiated actions for implementing the CDM project.

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A plethora of digital technologies to enhance the passenger experience that can be implemented within a short term

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Future technology infusion for optimizing passenger flow and increasing profitability

Bag Tag : A variety of bag tag solutions are emerging:

• Home-printed bag tags

• Smartphone programmable electronic tags

• Permanent RFID tags

By 2025:

• Permanent bag tags shall stand embedded in all luggage purchased

• A worldwide standard for permanent bag tags will evolve

==============================================

Bag drop : Should be provided at a variety of locations:

• Railway stations

• Hotels

• Other off-airport locations

• Airport car parks

• Central transport interchange

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Future feasible technology infusion for optimizing passenger flow and increasing profitability

Streamlined Security :

• Focus needs to be on the passenger

• Industry needs to develop a security model that is recognizable and familiar regardless of the airport

• Process should be consistent across all airports to avoid confusion – for example removing shoes and belts, laptops in or out of bags

• Security zones to incorporate good interior design principles to create passenger--‐friendly ambience instead of a sterile ‘prison--‐like’ feel

• Streamlined and walk--‐through without unpacking or undressing

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Conclusion / Way Forward

• The true power of CDM will unfold when all the inter-related airports also participate in CDM which will ensure sweating of airport infrastructure to optimize airport charges as well as benefits to all stakeholders including Passengers.

• GoI/DGCA to mandate the introduction of CDM in all operational Indian Airports

– Phase - 1 ---> metro airports

– Phase - 2 ---> other non-metro airports

• Implementation of the short term technology infusion such as GPS tracking, NFC, etc. for improving passenger flow and throughput of airport infrastructure will help increase profitability especially of Airlines and the Airport Operators.

• Agencies like SITA could take the lead and collaborate with Airport Operator, Airlines, Security, Immigration, Customs etc. and bring out standards that will help design processes and technologies for improving passenger travel experience. This will leave scope for increased profitability which will be a win-win strategy.

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