GATE ONE conference examines airport opportunities

Gavin Lipsith

15-May-2006

The conference in Singapore looked at many of the innovations airports and retailers around the world are implementing to address changes to the aviation industry

Following an industry overview given by TFWA president Erik Juul-Mortensen, Center for Asia Pacific Aviation managing director Peter Harbison summarized the challenges facing the aviation business, which he described as "an industry in turmoil". "Low-cost carriers have shown a willingness to challenge the existing system at every level," he argued. "This is an attitude that approaches anarchy." Airline liberalization and airport privatization have led to widespread commercialization and also to fundamental changes in travel patterns. "The big issue for the next decade is not how much growth there will be, but where it will be," said Harbison, who argued that long-haul travel would increasingly bypass hubs and capital cities.

Professor Steve Burton of the University of Technology Sydney followed Harbison's assessment with an examination of several models of innovations, looking at how organizations can make the most of the advances in information technology and telecommunications over recent years. One particular model identified three horizons on which companies can either seek to make incremental improvements to their core business, build emerging business opportunities or seek viable options for new business. Many of the presentations that followed slotted easily into one of the three categories.

An insightful panel of airport executives shared their views on maximizing he potential of retail at their respective airports. Civil Aviation Authority of Singapore assistant commercial direct Jeffrey Loke detailed plans for Singapore Changi's third terminal and the rationale behind commercial planning at the recently-opened Budget Terminal. Fraport head of strategy and business development international Jean-Claude Higelin revealed a patented system that would allow the airport group to track, target and drive passengers into stores using radio frequency identification technology, self-service kiosks and colour-coding. Macquarie Airports CEO Kerrie Mather described the group's approach to investing in airports with strong retail potential, backing her arguments with case studies of Copenhagen Kastrup and Sydney airports. And Narita International Airport Corp manager airport business headquarters Toshiake Kanzaki detailed the authority's very different plans for retail developments at terminal one's reconstructed south wing and the new zone D in terminal two, set to open next spring.

One of the most interesting sessions of the day looked at how catering and advertising can add to the airport experience for passengers. P Robert & Partners head of R&D and business development Peter Mohn showed the results of a 28-airport consumer study, identifying basic, performance and bonus criteria for airport managers. Basic values included good customer service and clean, user-friendly terminals, performance factors were smooth customs, check-in, immigration and comfortable seating, while high-quality retail and catering what sets an airport apart from its competitors. Eye Corp general manager regional, analysis and development South-East Asia Mike Tyquin outlined research conducted in preparation for advertising tenders at Singapore Changi and Hong Kong International airports, while JCDecaux Airport France CEO Isabelle Schlumberger detailed some of the technological innovations the company is implementing at many of its airports.

For a full report on the GATE ONE conference, see DFNI June 1, out soon.
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(18-Mar-2005) - Hong Kong International Airport CEO David Pang is the keynote speaker at the Singapore conference
(1-Apr-2005) - Hong Kong International Airport CEO David Pang is to be the keynote speaker at this year's GATE ONE conference, organised by TFWA and ACI
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(2-Feb-2006) - Former New Zealand prime minister Mike Moore will make the keynote address at this year's TFWA Asia Pacific conference in Singapore