ServiceTec Airport Services International

Gearing for Growth with an Integrated Approach

Investment in common use systems is inevitable if mid market airports are to compete but this requires considerable project planning. Dave Kelly, Vice President of Sales, ServiceTec Airport Services International reviews the current state of the industry and makes recommendations for a smooth adoption of the technology.

As ABTA predicts significant growth in the industry over the next 10-15 years, there is increasing competition between the North American airports to capture a share of this market. There are expansion funds available and after thirty years of standing still airports of all sizes are stepping up a gear.

In many cases the runways cannot be extended, so airports have to make maximum use of the resources they have. Effective and integrated IT systems are essential if airports are to compete for airline business.

Airports, particularly in the US, are recognising that having disparate systems is not the way to go,integration is vital. If major US airlines are to survive beyond Chapter 11, they need to concentrate more on flying aircraft and the airports need to take responsibility for management of the IT infrastructure.

A delay in boarding and despatching a flight, for whatever reason, can unhinge a full slot schedule and wreck passengers’ onward connections. The price of holding up a long haul flight can runs into tens of thousands of dollars a minute. If a bag goes missing because a passenger makes his connection but his bag hasn't’t, sorting that out will cost about US$150.Good technology and smooth-running systems make financial sense.

A major development is that mid-market airports are now investing in common use systems, which enable more airlines to use their facilities, increasing passenger throughput and capacity.

Mid market airports have a number of choices,depending on whether they are looking to scale up for growth or just cope better with existing traffic, but to integrate into the overall transport web they need to have compatible technologies.

For growth they will need a common use system. Until recently CUTE clubs were run by the airlines. Now airports are taking over responsibility for the infrastructure, including the common use infrastructure and are leaving the airlines free to concentrate on their core business.

Minnesota’s St Paul Airport is a good example. It is primarily a hub for Northwest Airlines but three years ago extended its secondary Humphrey Terminal,which had been used mainly for charters. By installing a CUTE system for 10-12 gates and 24-26 check-in desks they now have considerable flexibility to adjust to changes in airline demands.

Airports are taking a number of approaches. They can either try and front-end legacy systems to upgrade them, or they can start again from scratch. Although the first option may appear attractive, the complications arise when new versions of the system are rolled-out. When working on a live site every possible scenario needs to be modelled in advance and this becomes increasingly difficult in a heterogeneous environment.

Additionally, it is hard to stay more than one step behind the major airports as many legacy systems are no longer supported. The lowest specification for any CUTE super-station is probably CUTE-OS.

INTRODUCING COMMON USE

When considering implementation of a common use system there a number of points to consider when defining the project plan:

Existing infrastructure - many airports now have a compass network which is a definite advantage in a common use environment where networks are shared and there is a considerable amount of data interchange. It is not just the airlines and handling agents that need to be kept informed but also other parties such as immigration and naturalisation offices,especially important now with the heightened need for security.

RFID technology which enables baggage and people to be tracked through the terminal has both security and marketing benefits. Some European airports generate 60 per cent of their revenue through non-aviation retail opportunities and this is assisted through knowledge of passenger movements.

Technologies used by airlines – each of the airlines has its IT system which needs to be configured to work with the chosen platform, so consideration should be given to, for example, departure control systems.

Every thing needs to go through a strict change management procedure. Even one airline changing its card laminator can throw a spanner in the works. With an existing platform you need to change while the airport is operational so work needs to be scheduled around off peak times. Modelling the impact of change on all the airlines and dependent systems is time consuming and this needs to be built into the plan. Likewise if an airline changes its system it needs to inform the airport and protocols developed to ensure this happens.

Buy-in by all parties – unless there has already been a club agreement, there may be some resistance from some parties. The concern here is that a common use environment requires the airlines to share data. Security is of paramount importance so that customer data cannot be accessed by other parties.

Business model – depending on whether it is a dedicated or shared environment there are a number of models that can be implemented. For example:monthly charge or charge for handling or per usage.From our experience airports should be looking to use the charges to cover the running costs of the investment and it should not be seen as a revenue raising opportunity. The objective should be ‘‘how can I process more customers in the same space’’. The alternative may be building a new terminal so the economics are on a macro scale

A significant cost saving is the reduction in staff numbers needed to administer the systems. We confidently predict that we will see in airports the same revolution that has occurred in banks where following the introduction of ATM, staff levels have fallen dramatically.

The popularity of self-service kiosks has had a major impact in European airports. Kiosks take up less floor space and speed up passenger processing. Schiphol Amsterdam Airport, has taken this one step further. Frequent fliers have volunteered their biometric information enabling security checks to be automated,cross-referencing known information with a confirmation that the person travelling matches the documentation. This has halved the time need to check in, a significant advantage to both airline and passenger.

OVERALL OBSERVATIONS AND LEARNINGPOINTS

Planning for contingencies is vital, as the unexpected will always arise.To ensure you keep on track, agree the programme of work with all parties and then set review points with the contractors, where you can stop, evaluate progress and modify the plan as required.

Establishing successful partnerships has proven to be a key factor in ensuring that projects are completed smoothly. As an independent support provider we provide a trouble shooting role which provides invaluable insights into where bottlenecks and weaknesses may occur in the system, intelligence that can be used to avoid these situations within a new build.

Never neglect the end user’s viewpoint. Make sure that all personnel affected know what is happening.One of the key factors underlying the success of the most complex integration projects has been the time we have invested in going through all the requirements with the end user in advance. Discussing all the angles thoroughly, often there are issues that other people may not have considered.

Risk management is a key factor in maintenance contracts. A saving of US$100,000 a year on a maintenance contract is lost in one day if half a dozen flights are delayed because a contractor does not understand the system and brings other systems down. Airlines and airports are cost conscious and avoiding unnecessary costs generally means avoiding unnecessary risks.

About ServiceTec Airport Services International

ServiceTec Airport Services International supports IT systems throughout the airport, from ticketing through to the boarding gate. It has bases in Europe, the US and the Far East with on-site engineers at major airports throughout the world.

IT systems supported by ServiceTec ensure the smooth transit of almost 600 million passengers a year. Working with airports, airport authorities, airlines,handling agents, freight forwarders and government authorities, we provide a fast response, 24 hours a day, seven days a week.

The company has accreditation on a number of system applications, including troubleshooting and hardware repair such as Common User Terminal Equipment,common Use Self Service Kiosks, Baggage Reconciliation Systems, FIDS and Biometric Security Systems like Privium at Amsterdam Airport Schiphol.