Airport Strategic Business Planning Airport Planning, Simulation and Capacity Management Airport Operational Readiness

International Air Transport Association 800 Place Victoria, B.P. 113 Montreal, Quebec Canada H4Z 1M1 Tel: +1 (514) 874 0202 Fax: +1 (514) 874 2662 www.iata.org/consulting

1. IATA Consulting Services to Airports

IATA offers a wide range of consulting services to assist airports in their successful development. Airports have a cyclic development with very different needs along each step of their lifecycle. IATA Consulting addresses the specific challenges of each step with airport operators, airport shareholders and regulatory bodies.
Develop Revenues Business Plan Strategy Development Air Service development Connectivity studies Marketing strategy Optimize Investments Master plan Design review Demand/capacity analysis Passenger terminal concept Baggage Handling Systems Runway system / Apron layout Manage Quality and Costs Organizational Design Level of service studies/Simulation KPI definition Cost Reduction

Manage changes in ownership Buyer due diligence Vendor due diligence Privatization program Private Sector Participation

In the planning and construction phase, IATA Consulting offers airport development solutions whose aim is to facilitate the planning and design of airport facilities and infrastructures. The top-seller solution in the airport development solutions portfolio is the airport master plan definition. It is important to note that IATA Consulting does not take part to the construction phase and to the construction supervision. To airports in the next phase of the lifecycle, the commercialization phase, IATA Consulting proposes a portfolio of business development solutions, among which the development of air services and the development of the airport commercial revenues are the most popular. When airports are in the optimization phase, IATA Consulting provides solutions to monitor and improve operations, performance and level of service. The demand and capacity analysis studies are a key solution in this phase. Eventually, for those airports that may experience a change in ownership, IATA Consulting proposes solutions for privatization. The airport due diligence is the most popular one for both vendors and buyers.

IATA Consulting Airport Planning, Simulation and Capacity Expertise

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2. Strategic Business Planning

IATAs strategic planning capabilities include preparation of detailed analyses of an airports current operational, financial and organizational position in terms of regional norms and global best practices; definition of client vision and mission, long-term objectives and critical challenges, along with specific strategies to facilitate their achievement. In addition, IATA can assist with the preparation of detailed action plans and the establishment of performance monitoring tools and metrics, together with the identification of operational, financial, organizational competencies required to support the strategic plan implementation and sustain positive airport growth going forward.

2.1 Airport Due Diligence

Capital investments at airports require as much prudence as foresight. For this reason, IATA Consulting will perform, upon request, airport investment due diligences for project sponsors or banks. To accomplish this, IATA Consulting carries out a comprehensive and thorough review of the airport development plan and particularly of the all the risks that could affect the capacity of the airport or the sponsor to face its financial obligations. The due diligence will typically cover the risk factors inherent to a major airport brown-field or green field project: Traffic Aeronautical revenue Non-Aeronautical revenue Investment program Airport Operations

2.2 Airport Operational Readiness

Different types of operational problems are witnessed when commissioning new facilities, especially during the first day of operations, potentially resulting in poor performance and disruptions reflecting negatively on the organization. Many organizations require carrying out a readiness assessment of the new systems and facilities. An operation readiness strategy will allow airport operators to dot right and most important to do it right the first time prior to the commissioning. It is critical that on the opening day of an airport, the airport personnel is fully trained to effectively implement correct airport procedures and for all equipment to be in good working condition. The scope of work includes the safe and effective handling of passengers, efficient transfer of baggage, effective handling of the new facilities and equipment and an effective emergency plan.

2.3 Airport Planning Consulting

IATA Consulting offers a comprehensive range of expertise and solutions to assist governments, airports, airlines and consultants in developing cost-effective and performing facilities with user requirements in mind.

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2.4 Airport Traffic Forecast

IATA is able to generate traffic forecasts that provide the airline industry's best estimates of passenger and cargo traffic and aircraft movement growth at the target airport, up to 30 years ahead. IATA is uniquely placed to receive, incorporate and disseminate detailed information from the airlines. While confidentiality is maintained, this enables production of a scenario-driven forecast, which can be utilized by airport authorities and governments in their planning with the confidence that it has the support of the airline industry. Furthermore, IATA is able to develop forecasts under a variety of scenarios to assist decision-makers involved in airport infrastructure and investment decisions.

2.5 Master Plan and Land Use Plan Studies

The complexity of an airport layout requires an analytical approach where all fundamental elements are identified and its characteristics defined. IATA has extensive experience preparing master plans and land-use plans for the optimal development of an existing or proposed airport. Typical considerations include the sizing and location of major facilities; provision of adequate capacity to meet the projected demand; compatibility of the airport expansion with aeronautical criteria; new aircraft types and systems; local land-use planning; logical phasing of airport development and capital expenditure to ensure financial effectiveness; and the determination of the environmental impact of the proposed development.

IATA ascertains that all major operational facilities and relative areas are properly located within the overall airport boundary. Each facility should be able to expand through the various phases up to the ultimate phase of the airport without costly adjustments. The proper balance of these operational facilities is of the greatest importance.

IATA subdivides the overall area into optimal sub areas with the aim to reach the maximum capacity of the airport, prior to assessing the individual functional requirements. IATA sizes the airport facilities in relation to the maximum number of aircraft movements and associated passenger flows the ultimate runway system can generate. The optimization of these capacities throughout the life span of the airport is the key goal.

The land-use plan layouts a long-term strategic view presented in five-year phase intervals until the runway system is at capacity. It should consider the implication of possible diversity of air traffic, which may not have been perceived at the initial inception of the project. The land-use plan layout strategies should safeguard apron and terminal space such that minimum operational impact to airline and ground handling companies is observed when transferring from progressive phases of the implementation.

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2.6 Capacity, Level of Service and Simulation Studies

IATA has extensive experience in conducting capacity, level of service and simulation studies for all key airport components. Airport capacity issues are associated with limitations in the specific capacity of runways, taxiways, aprons, aircraft operations on the ground and approach, together with take-off and landing procedures. Balancing capacity ensures that the terminal, gate and apron systems do not limit the runway throughput. IATA uses proven methodologies and models to determine the optimal balanced and sustainable airport with short-, medium- and long-term requirements for runway/taxiway systems, passenger terminals, aprons and gate systems to meet the challenges of traffic growth and change. Runway Capacity Runway capacity ultimately determines the capacity of an airport. Every effort should be made to achieve the maximum safe runway throughput and to balance capacity with the other critical systems, such as the airspace, apron and passenger terminal. IATA can conduct an aircraft flow simulation study of the existing runway system with the existing rules and procedures to determine the limiting factors and ways to remove them. The study will also determine the capacity of the improved runway system considering the site-specific airline schedule. Aircraft Stands The aircraft stands system is a key interface between the aircraft flow system and the passenger flow system. The aircraft processed at passenger terminals generate inbound and outbound passengers flows. The number of aircraft and where the aircraft are processed will affect the performance and capacity of the apron and passenger terminal. Realistic stands requirements and assignments are essential for developing efficient and cost-effective apron/terminal concepts, and efficient operations. Passenger Terminals Unlike the runway and gates that have a hard capacity definition, the capacity of terminal processing and queuing areas relates directly to the extent of congestion that will be tolerated. The new expanded IATA level of service C standards are proposed as the basis of the analysis. Terminal design and level of service should reflect the various characteristics and volume of passengers and baggage to be handled. Managing terminal capacity and designing with level of service in mind are key issues in maximizing terminal capacity with long-term financial and operational implications. The amount of space to be comfortable, and the space required, is examined from the point of view of passenger behaviour and perception. Time and space are key variables, but time is often neglected in planning airport facilities. IATA experts determine the facility requirements by five-year phase intervals until the design year, review qualitatively the flows to identify any areas in which the layout could be negatively impacted by the configuration of facilities, determine the performance and capacity through simulation to quantify the capacity of the various elements, as well as the system as a whole. IATA can conduct a passenger flow simulation for the design year to validate that the proposed facilities meet the requirements, to accommodate the peak demand for the desired level of service and performance. An IATA study can optimize the existing terminal to meet demand until new facilities are commissioned, measure the MCT and level of service and propose technological improvements, temporary expedients and other infrastructure, rules and procedure improvements. The end product ensures balancing sub-systems and re-evaluating space utilization.

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2.7 Passenger Terminal-Apron Concept Development

One of the most challenging aspects of airport planning is to development the most appropriate passenger terminal and apron concept. IATA's objective is to facilitate terminal designs, which will be recognized for the ease, simplicity and efficiency of their passenger/baggage processing and aircraft handling. Functionality and cost efficiency are the paramount considerations. Based on the considerable experience gained operating at airports throughout the world, IATA is constantly improving its own airport terminal design standards and is able to provide leading edge advice and support relating to architectural design review, passenger facility planning, airside landside operational review, way-finding and signage, performance and level of service standards, passenger processing systems concepts and capacity planning.

2.8 Baggage Handling Systems (BHS)

IATA is able to provide a range of BHS-related consulting services to address general or specific, current or anticipated issues relating to baggage handling system performance, capability and capacity, arising from the need to replace or modify legacy equipment, accommodate future growth in passenger volume, the introduction of larger aircraft and new security screening requirements.

2.9 Hold Baggage Screening (HBS)

IATA is able to provide a range of hold baggage screening-related consulting services to address general or specific, current or anticipated issues relating to the screening of hold baggage for explosives, dangerous goods, narcotics and contraband. Screening for explosives has particular relevance given the requirement for airports to implement systems and processes to ensure that originating hold baggage intended to be carried on an aircraft engaged in international civil aviation operations is screened for explosives in accordance with the seventh edition of Annex 17 of the ICAO Convention on International Civil Aviation (effective as of July 1, 2002) and, in particular, Chapter 4, Clause 4.4, Measures Relating to Hold Baggage, which were achieved as of January 1, 2006.

2.10

Airport Terminal Concession Development

At their most basic level, concessions in terminal buildings provide necessary services to passengers. However, a well-developed concession plan can elevate the level of service to passengers and visitors, as well as provide a greatly enhanced revenue stream for the airport operator. IATA is able to provide guidance and advice regarding the optimal mix and arrangement of concession facilities to maximize the level of service provided to passengers while optimizing the realization of revenue generating opportunities, without interfering with the basic functionality of passenger handling process.

2.11

Cargo Terminal Planning and Development

As airfreight continues to grow at rates often far outstripping passenger growth, the provision of modern, efficient and appropriately-sized cargo facilities is of vital importance to the prosperity of an airport. IATA is able to undertake conceptual planning of cargo facilities, as well as more detailed planning studies.

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