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.

IATA Consulting
Airport Planning, Simulation and Capacity Expertise

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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.

IATA Consulting
Airport Planning, Simulation and Capacity Expertise

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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.

IATA Consulting
Airport Planning, Simulation and Capacity Expertise

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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.

IATA Consulting
Airport Planning, Simulation and Capacity Expertise

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