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by

Anders Adrem
adrem_anders@bah.com

Dieter Schneiderbauer
schneiderbauer_dieter@bah.com

Evert Meyer
meyer_evert@bah.com

Fadi Majdalani
majdalani_fadi@bah.com

Managing airports construction


projects
Providing an efficient managment framework for operators
1

Managing airports construction projects


Introduction Exhibit  1
Number  of  on  site  employees  at  major  European  airports  (€€  billion)

An  airport  is  a  very  large,  complex  organization  that  


can  mirror  the  size  of  a  small  community  when  on-­
  80 000

70 000
71 900
68 000

site  employees  are  counted.  An  impressive  and  varied   60 000


53 881

number  of  activities  are  performed  at  an  airport,  ranging   50 000

from  ground  handling,  to  passenger  handling,  to  com-­ 40 000


31 300
mercial  activities,  to  transports,  etc.  As  part  of  airport   30 000 26 000 25 000

operations,  most  of  the  activities  are  quite  obvious  to   20 000 18 000

the  average  person;;  however,  one  aspect  of  an  airport  is   10 000

usually  overlooked  —  that  is  that  airports  not  only  need   0

to  manage  air  transport  operations  but  also  real  estate   Charles de


Gaulles
Heathrow Schiphol Barajas Fiumicino Gatwick Copenhagen

investments  and  construction  projects.


Source: ATRS, company reports

Exhibit  2
Aircraft  and  passenger  fl  ows

Airside  related  activities

Lighting
Snow  clearing
…
Approach Departure
Aircraft  moving
Maintenance Fuelling
Runway/ ... Catering Runway/
taxiway Ground  power taxiway
Deicing
...
Apron Apron
Terminal  related  activities
Airside
Gate Terminal Gate
Landside Landside  related  activities
Airport   Airport  
Baggage  handling
transport transport
Retail

Parking Duty  free Parking


Buses
Check  in Trains
Airport  info …
Ground Ground
Car  parks
transport transport
Cashiers
…

Source: Booz Allen Hamilton, annual accounts


2

Large  operator  of  real  estate

For  all  operations  related  to  aircraft  and  passengers   This  holds  also  true  in  other  regions  with  strong  
to  function  efficiently  (see  Exhibit  2),  extensive  infra-­ growth  in  air  transportation,  such  as  the  Middle  East,  
structure  must  be  in  place  and  maintained.  Airports   where  airports  have  committed  to  invest  almost  US  
cast  a  huge  footprint  in  terms  of  land  and  buildings,   $30  billion  in  airport  capacity  over  the  next  10  years.  
and  this  infrastructure  demands  daily  attention.  For   For  example,  Dubai  airport  has  undertaken  an  exten-­
example,  the  new  Terminal  5  at  London’s  Heathrow   sive  facilities  expansion  program,  including  a  new  
airport  has  a  site  area  alone  of  260  hectares  (2,6   terminal  and  concourses  worth  US  $2,5  billion;;  and  
million  square  meters).  An  indication  of  the  value  of   Doha  is  expanding  its  airport  with  a  new  terminal  and  
the  real  estate  assets  of  an  airport  can  be  derived  by   runway  worth  about  US  $1  billion  (see  examples  in  
looking  at  the  book  value  of  the  land  and  buildings  of   Exhibit  4).
airport  operators  (see  Exhibit  3),  which  easily  accedes  
the  one  billion  Euro  mark  for  large  operators.   The  space  an  airport  commands  is  a  function  of  its  
products  and  offerings.  For  example,  a  growing  airport  
Exhibit  3 needs  to  adjust  terminal  areas  and  number  of  gates  
Book  value  Land  &  Buildings,  major  European  airport  operators     (and  occasionally  the  runway  capacity),  and  perhaps  
(€€  billions)
increase  security  levels  (such  as  those  seen  after  
 
12
11,0 9/11);;  and  those  changes  entail  changes  to  pas-­
10 senger  flow  patterns  as  well  as  the  purchase  of  new  
9,0
equipment.  Additionally,  strategies  to  increase  com-­
8
mercial  revenue  involve  reconfiguring  terminal  areas  
6 to  improve  passenger  flow  and  retail  space.    
4
The  buildings  and  land  areas  of  a  major  airport  thus  
3,1
continually  change,  not  only  as  a  result  of  upgrades  
1,7
2 1,6
and  restoration,  but  also  as  an  effect  of  industry  
0,5 0,3
0
changes  and  new  strategic  imperatives.  
BAA AENA   ADP   Fraport Schiphol   CPH   TBI

Source: Annual accounts

Exhibit  4
Infrastructure  expansion  projects  at  selected  Middle  East  airports

Strategy Total  Invest Past  CAGR Planned  CAGR

Final decision on long-term expansion plan still under USD 5.5 % 5.4 %1)
Abu  Dhabi consideration 330 million

Stated goal is to be the dominant hub in the regions USD 10.4 % 9%


Dubai Has begun an extensive facilities’ expansion program including 2.5 billion
a new terminal and concourses

Pursuing plans to expand its hub activities and capitalise on its USD 3.7 % 10 %
Bahrain geographic proximity to Saudi Arabia 158 million
Expansion covers new satellite, control tower and cargo facilities

Planning to expand as a hub for the growing Qatar Airways USD 4% N/A
Doha Expansion program includes a new terminal and a new runway 1 billion

Planning steady expansion based on the network and traffic of USD 1.4 % 19 %
Muscat Oman Air 200 million
Expansion covers extending terminal and parking

(1) ADP forecast


Source: Booz Allen research
3

Why  does  construction  at  an  airport  differ  from  that  


anywhere  else?

Over  the  past  years,  Booz  Allen  Hamilton  has  seen   When  looking  at  current  airport  construction  projects,  
some  very  large  investments  planned  and  carried  out   specifically  on  airside  (i.e.,  after  the  security  check),  
by  airport  operators.  These  investments  have  not  only   Booz  Allen  found  that  construction  costs  can  range  
been  an  outcome  of  growth  and  increased  focus  on   from  15  to  25  percent  higher  than  what  was  esti-­
commercial  income,  but  also  a  result  of  the  entrance   mated  as  “normal”2  in  the  same  region.  So  what  is  
of  different  airline  carrier  business  models,  which   different  when  building  at  an  airport,  and  what  factors  
the  airports  must  adapt  to  in  order  to  better  serve   affect  costs?
their  different  needs.  To  be  able  to  provide  additional  
space  and  products  tailored  to  the  different  business   Booz  Allen  has  identified  several  airport-­specific  
models  and  to  better  serve  the  presence  of  a  domi-­ drivers  that  increase  costs,  ranging  from  the  diffi-­  
nant  carrier,  some  airport  administrators  believe  that   culties  inherent  to  working  in  an  airport  environment  
extensive  infrastructure  changes  are  necessary.   to  the  challenges  associated  with  managing  different  
stakeholder  wish-­lists.
Airports  where  very  large  investments  have  taken  
place  are,  for  example,  in  Munich,  where  an  entirely   Airside  safety  rules  and  regulations
new  terminal  is  dedicated  to  Star  Alliance1;;  and  at  
Charles  de  Gaulle,  where  a  terminal  is  dedicated  to   An  entrepreneur  who  is  entering  airside  for  the  first  
OneWorld;;  as  well  as  at  Heathrow,  where  the  new   time  will  find  a  number  of  obstacles  that  would  not  be  
T5  terminal  will  be  customized  for  British  Airways.   present  if  working  elsewhere.
Although  such  large  investments  are  not  observed  
on  an  ongoing  basis,  airports  have  a  constant  high   First  of  all,  the  entrepreneur  must  factor  the  security  
level  of  investment  compared  to  their  revenues  (see   element  into  the  construction  equation.  All  personnel  
Exhibit  5).   must  display  the  appropriate  badge  to  enter  airside.  
To  obtain  this  badge,  workers  must  be  educated  
Given  that  airports  have  extensive  numbers  of  build-­ and  undergo  a  security  check  to  be  cleared  by  the  
ings  and  expansive  areas  that  constantly  need  to  be   specific  country’s  security  agency,  which  takes  time.  
maintained,  refurbished,  and  /  or  expanded  to  meet   Also,  if  the  entrepreneur  wants  to  drive  a  vehicle  in  on  
the  changing  needs  of  the  industry,  construction     airside,  the  transportation  must  first  be  equipped  with  
projects  are  an  integral  part  of  airport  operations. a  special  license;;  and  the  driver  will  have  had  to  be  
certified  through  an  approved  process.    
Exhibit  5
Capital  investment  vs.  turnover  of  major  European  airport  operators
But  once  having  gained  access  to  the  area,  the  entre-­
CPH did during 1996 – 1998 invest in a new pier, a new
preneur  faces  other  complicating  factors.  Before    
1,0
0,9
baggage terminal, new cargo centre and a new Terminal 3
workers  can  get  to  the  construction  site  in  the    
0,8

0,7 CPH
morning,  they  must  factor  in  extra  lead  time  because  
BAA
0,6 they  must  undergo  security  checks  at  stations  that  
AENA
are  often  distant  from  the  construction  site.
0,5
0,4
Schiphol
0,3 ADP
0,2
0,1
Fraport
TBI
At  airside,  construction  crews  will  also  be  in  proxi-­
0,0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
mity  to  enormously  expensive  airplanes  (and  entre-­
preneurs  seldom  have  insurance  policies  that  would  
Source: Annual accounts
cover  potential  damage)  and  a  lot  of  extremely  flam-­
mable  fuel.  This  means  that  the  entrepreneur  has  to  
1 The construction of the new terminal was a joint venture between the airport take  into  account  varied  safety  regulations  that  are  
and Lufthansa.
2 By normal means constructing the same building in the same region, although
not  encountered  when  working  on  landside,  such  as  
outside the airport. regulations  associated  with  foreign  object  debris  /  
4

damage  or  work  with  hot  materials.  The  entrepreneur   stakeholders  in  the  organization,  all  of  whom  want  to  
must  be  fully  conversant  with  these  rules  and  regula-­ optimize  the  design  based  on  different  aspects  that  
tions  and  follow  the  direction  that  is  often  stipulated   are  sometimes  conflicting  (see  Exhibit  6).  
in  a  hefty  document  called  “Airport  Regulations”.
Although  many  agents  have  specific  duties  on  the  
In  addition  to  the  security  and  safety  aspects  of  work-­ project,  they  are  not  necessarily  responsible  for  the  
ing  at  an  airport,  the  entrepreneur  must  also  take  into   costs  associated  with  those,  which  means  that  the  
account  commercial  factors.  An  airport  is  often  open   individual  in  charge  of  the  project  often  has  a  hard  
24/7,  thus  construction  projects  on  airside  cannot   time  fighting  off  the  increased  cost  associated  with  
interfere  with  the  airport’s  ongoing  daily  business.   differing  demands.  Furthermore,  given  the  size  of  an  
Hence,  any  major  operations  must  be  carried  out   airport  organization  and  the  high  number  of  stake-­
when  traffic  in  the  airport  is  lower,  which  is  usually  at   holders,  it  often  takes  a  long  time  to  reach  an  agree-­
inconvenient  working  hours  (e.g.,  during  night  curfew). ment.  Not  uncommonly,  changes  to  the  design  are  
made  well  into  the  production  stage,  which  is  a  large  
An  additional  complication  is  that  construction  on  air-­ cost  driver.
side  seldom  takes  place  in  a  secluded  area.  It’s  more  
common  for  airports  to  expand  or  reduce  existing High  level  of  detail
buildings  /  areas  than  build  completely  new  ones  (e.g.,    
the  new  terminal  building  at  Frankfurt  airport).   Due  to  the  complexity  of  designing  new  facilities  at  
airports,  many  airport  administrators  are  tempted  to  
The  process  of  adding  new  space  to  existing  build-­ establish  the  exact  design  and  specification  before  
ings  poses  many  difficulties  arising  from  establishing   engaging  an  entrepreneur.  This  means  that  when  the  
the  terms  of  the  contract  (i.e.,  which  responsibilities   contractors  become  involved,  they  have  very  limited  
fall  to  the  entrepreneur),  ensuring  new  materials  and   freedom;;  almost  all  design  elements  are  already  fixed.  
products  conform  with  existing  ones,  identifying  con-­
nection  points  for  installations,  ensuring  that  the  new  
installations  will  work  with  the  existing  ones  (opera-­
ting  systems  /  facility  systems),  etc.  If  construction  is  
planned  to  add  to  an  existing  building,  stricter  limits  
Exhibit  6
for  how  the  new  area  can  be  designed  will  come  into   Examples  of  how  different  functions  drive  general  construction  
play  —  the  new  construction  must  be  faithful  to  and   requirements
coherent  with  the  design  of  the  older  area.    
Example  implications  for  
Function Focus  area
construction  project
All  in  all,  working  in  an  airport  entails  adherence  to  
rules  and  regulations  that  increase  the  lead  times   Area design that lets the pas-
Terminal Optimize the expected
senger go from point A to B in
and  the  costs.   coordination passenger flows
the shortest amount of time

Area design that forces the


Maximize commercial
Many  stakeholders Commercial passenger to pass as many
sales
stores going from point A to B

Because  of  the  large  number  of  different  activities   Maximize flexibility to
that  are  carried  out  at  an  airport,  there  are  many  dif-­ Traffic allow for different Complex flexible solutions
coordination aircraft sizes and types driving costs
ferent  stakeholders  in  a  construction  project.  When,   of travelers
for  example,  rebuilding  terminals,  several  key  func-­
Separate flows from Extra areas and separation
tions  need  to  be  considered  in  the  process.  Usually   Customs/
Schengen/non-Schengen needed for different type of
the  specific  project  is  owned  by  some  type  of  facili-­ security
and arriving third country passengers driving costs
ties  department  within  the  airport  that  is  responsible  
Complex technical solutions in
for  managing  and  developing  all  the  airport’s  build-­ Design Maximize passenger order to achieve the
ings  and  land.  But  for  department  to  execute  the   experience extraordinary experience,
driving costs
construction  project,  it  needs  input  from  several  key    
5

Because  the  airport  operator  has  already  predeter-­ 1.  Establish  a  stringent  project  requirements  process
mined  the  exact  specifications,  they  seldom  engage  a  
turnkey  provider;;  instead,  they  engage  a  contractor  for   Booz  Allen  research  has  shown  that  more  than  50  
each  construction  specialty  with  the  view  to  keep  costs   percent  of  the  cost  escalation  in  construction  projects  
low.  By  planning  for  new  development  in  this  way,  the   results  from  changes  that  the  buyers  make  to  the    
airport  retains  absolute  control  of  the  specification  and   design  /  specifications.  Because  construction  project  
design,  but  it  creates  some  problems: costs  are  most  effectively  established  in  the  early  
project  phases,  it  is  vital  that  the  buyer  decide  on  the  
•    The  contractor  does  not  assume  responsibility  for  the   specifications  in  the  early  phases  and  adhere  to  the  
design  and/or  function  because  the  buyer  (the  airport)   plan.  However,  the  large  number  of  stakeholders  in-­
has  pre-­fixed  the  specifications,  hence  the  airport     volved  in  the  typical  airport  construction  project  makes  
assumes  the  project  risk it  more  difficult  to  coordinate  and  agree  on  solutions.  
Therefore,  a  stringent  project  requirements  process  is  
•   The  airport  does  not  take  advantage  of  the  contractor’s   crucial  for  keeping  the  costs  contained.
technical  know-­how  and  experience  on  similar  projects  
The  process  must  clearly  define  who  has  financial  
Effective  construction  project  management   responsibility  and  the  final  decision  rights,  as  well  
as  which  individuals  have  a  “right”  to  define  project  
On  the  basis  of  Booz  Allen’s  experience  with  airport     requirements.  Furthermore,  the  different  requirements  
operators  around  the  globe,  there  are  efficient  and   should  not  be  considered  rigid,  rather  they  should  serve  
effective  ways  to  mitigate  the  specific  problems  associ-­ as  input  for  defining  the  optimal  solution,  keeping  in  
ated  with  airport  construction  project.  The  key  factors   mind  the  trade-­offs  of  cost  and  function  that  differen-­
can  be  organized  in  four  areas  (see  Exhibit  7).   tiate  the  “nice  to  have”  from  the  “must  have”  (see  
Exhibit  8).  

2.  Leverage  the  contractor  in  all  project  phases

Through  our  analysis  of  airport  construction  projects,  


Booz  Allen  found  that  in  several  projects,  the  contractor  
Exhibit  7
Framework  for  efficient  management  of  construction  projects  at   was  engaged  late  in  the  process  and  was  not  appropria-­
airports tely  involved  in  the  development  of  the  specifications.  
This  situation  led  to  increased  costs  and  heightened  
1. Establish a strin- risk  for  the  airport.  In  some  extreme  cases,  newly  built  
gent project structures  failed  to  serve  their  primary  functions:  the  
requirement process
airport  had  developed  the  specifications  with  limited  
input  from  the  contractor;;  and  as  a  result,  the  contrac-­
tor  had  disassociated  itself  from  underwriting  the  func-­
4. Facilitate the working Efficient 2. Leverage the tionality  of  the  construction.  Hence,  fixing  the  problems  
conditions with respect management contractor in all project with  the  new  construction  fell  solely  on  the  buyer,  i.e.,  
to the rules and regula- of construction phases
tions of the airport projects the  airport.  These  types  of  adjustments  sometimes  
involve  very  high  costs.  

3. Focus in-house
If  an  airport  defines  the  project’s  technical  specifica-­
competencies on
complementing tions  without  involving  the  contractor,  the  airport  is  
contractor assuming  that  it  knows  the  solution  better  than  any  
contractor,  which  is  rarely  the  case.  An  airport  has  
specific  needs,  but  by  excluding  the  contractor  from  the  
planning  phase,  the  airport  is  missing  out  on  a  vast  
pool  of  experience.  The  experienced  contractor  has  
6

wide-­ranging  expertise  in  similar  construction  projects   3.  Focus  in-­house  competencies  on  complementing  
conducted  for  a  variety  of  industries,  and  the  airport   the  contractor
needs  to  leverage  this  expertise.  
An  important  aspect  of  managing  construction  projects  
The  key  to  a  successful  project  outcome  is  to  integrate   at  airports  is  the  ability  to  complement  the  contractor’s  
the  airport-­specific  knowledge  resident  in  its  staff  with   skills  so  that  the  construction  project  can  be  run  as
the  experience  held  by  the  contractor.  This  can  be  done   efficiently  as  possible.  Although  the  entrepreneur  
either  by  involving  the  contractor  early  in  the  process   should  be  in  charge  of  driving  the  construction  and  
(during  the  planning  phase)  where  the  specifications   coordinating  the  efforts,  the  airport  needs  to  behave  
still  can  be  changed,  or  by  applying  functional  specifica-­ like  a  professional  buyer  when  it  comes  to  construction  
tions  at  a  higher  level  to  detail  the  desired  functions   projects.  The  airport  needs  to  have  resident  knowledge  
instead  of  the  exact  technical  dimensions.   about  the  industry  and  how  construction  projects  are  
executed  to  be  able  to  follow  up  and  assess  the  con-­
Booz  Allen  found  that  when  contractors  were  involved  at   tractor  as  well  as  evaluate  offers.    
the  stage  where  functional  specifications  were  defined,  
the  risk  and  cost  to  the  airport  were  significantly  re-­ Furthermore,  to  evaluate  different  technical  solutions  
duced  (sometimes  by  as  much  as  25  percent).  By  leve-­ and  effectively  support  contractors  by  understanding    
raging  the  contractor’s  expertise,  alternative  solutions   existing  solutions,  the  airport  needs  to  have  staff  
that  require  lower  investment  but  maintain  the  required   with  the  relevant  technical  competencies.  These  staff  
functionality  can  be  identified.  Additionally,  the  time   should  be  very  familiar  with  the  existing  technical  solu-­
necessary  for  project  planning  and  construction  can  be   tions,  help  track  all  current  drawings  /  solutions,  and  be  
reduced,  and  greater  risk  will  be  borne  by  the  contractor   conversant  with  the  specific  rules  and  regulations  that  
because  it  signed  off  on  the  technical  specifications. govern  the  airport’s  conduct  of  business.  

For  example,  when  adding  to  existing  structures,  it  is  


imperative  that  the  contractor  receive  the  exact  and  cor-­
rect  information  about  the  existing  buildings  and  land,  
such  as  location  of  installation  points,  dimensions  of  
Exhibit  8
Examples  of  how  different  functions  drive  general  construction  
the  various  structures,  location  of  the  current  pipelines,  
requirements etc.  If  the  airport  cannot  readily  produce  this  kind  of      

Work  steps  project  requirements  process Work  steps  defining  optimal  solution

1 Appoint project responsible with fiscal authority and the right to 1 Divide construction project into clearly separated components
decide the level of requirement
2 Prioritize components based on expected cost
2 Define which stakeholders have the right to give input on require- Clearly defined user
ments for the project (individuals representing the key functions) requirements 3 Map different potential requirement levels (low to high) for
prioritized components
3 Clearly map and detail the different user requirements
4 Estimate total cost of ownership for each requirement level
4 Define level of requirement based on total cost of ownership for
the different alternatives (optimal solution) 5 Identify optimal solution with regards to function/quality in
relation to total cost of ownership
5 Verify decided level with respective stakeholder in order to se-
cure that changes will not occur afterwards (signing process) 6 Base specifications on optimal solution, additional user
Optimal solution requirements separated in order to clearly specify the costs
6 Identify and map posibility to develop ”standard products” that defined associated with them
can be used in other projects
7

information,  the  entrepreneur  must  spend  many  hours   Conclusion


in  mapping  the  existing  area,  and  this  will  be  very  costly.  
An  extreme  situation  was  found  where  the  contractor   Construction  projects  are  an  integral  part  of  airport  
was  forced  to  dig  in  a  ramp  almost  by  hand  because   operations,  but  the  special  circumstances  inherent  
the  airport  could  not  produce  accurate  drawings  of  the   to  working  at  an  airport  (especially  airside)  result  in  
existing  extension  of  the  pipelines  in  the  ground.       production  costs  that  are  much  higher  than  those  of  
construction  projects  “outside”  airports.  Consideration  
4.  Facilitate  the  working  conditions  with  respect  to   of  how  airports  can  improve  management  of  construc-­
the  rules  and  regulation  of  the  airport       tion  projects  puts  the  spotlight  on  what  role  the  airport  
administration  should  have  on  the  project.  Booz  Allen’s  
As  discussed  previously,  working  in  an  airport  entails   direct  experience  with  airport  projects  has  demon-­
awareness  of  numerous  security  and  safety  rules  /  regu-­ strated  that  success  in  managing  construction  projects  
lations.  Booz  Allen  experience  shows  that  the  increase   results  from  focus  on  four  areas:  
in  costs  associated  with  such  difficult  working  condi-­
tions  can  be  as  much  as  15  percent.  It  is  therefore   •   Establish  the  requirements.  An  airport  has  many  
crucial  that  airport  management  guide  the  contractor   stakeholders,  all  of  whom  want  to  optimize  different  
through  the  myriad  of  security  and  safety  regulations   aspects  of  the  construction.  To  keep  costs  con-­
tained,  the  airport  operator  needs  to  be  very  efficient  
and  processes.
in  pooling  demands  and  transforming  them  into  
realistic  requirements
This  facilitation  can  be  as  simple  as  providing  rest-­
rooms,  dressing  rooms,  and  lunch  facilities  close  to  the   •   Leverage  the  contractor.  In  several  projects  studied,  
construction  site  so  that  workers  do  not  have  to  pass   the  contractors  were  engaged  late  in  the  process,  so  
their  experience  was  not  fully  utilized.  Airports  must  
through  security  checks  every  time  they  have  a  break.  
focus  on  working  with  the  contractor  and  leveraging  
Coordination  with  airport  security  could  be  limited  by   its  expertise  in  all  phases  of  the  project  
sealing  off  areas  temporarily  instead  of  compelling  
workers  to  work  during  inconvenient  hours.  By  focusing   •   Complement  the  contractor.  For  the  airport  to  be  able  
on  reducing  lead  time  and  by  enabling  the  contractor  to   to  effectively  support  contractors  with  the  technical  
aspects  of  airport  work  and  evaluate  different  solu-­
work  during  normal  hours,  production  costs  can  be  d  
tions,  the  airport  needs  staff  who  are  fully  know-­
substantially  reduce. ledgeable  of  the  existing  design.  Also,  to  be  able  to  
define  project  requirements,  airport  staff  must  have  
Easing  the  work  environment  of  the  construction  work-­ some  knowledge  about  the  construction  industry  and  
ers  also  serves  another  purpose  —  it  encourages  com-­ how  construction  projects  are  executed  
petition.  The  restrictions  and  special  demands  related  
•    Facilitating  the  working  conditions.  Working  in  an  
to  working  at  an  airport  effectively  serve  as  a  barrier   airport  entails  adherence  to  numerous  security  and  
to  entry  for  new  players  lacking  experience  in  airport   safety  rules  /  regulations.  To  make  the  construction  
construction.   work  more  effective,  the  airport  needs  to  assist  the  
entrepreneur  in  understanding  and  meeting  these  
demands  while  it  regularly  tries  to  make  them  as  
uncomplicated  as  possible

Considering  these  implications  with  a  strong  focus  on  


internal  resources  and  capabilities  enables  airports  to  
decrease  production  costs  by  as  much  as  25  percent.  
Booz  Allen  has  direct  experience  with  numerous  global  
airport  construction  projects,  during  which  we  support-­
ed  our  clients  through  every  step  of  the  construction  
phases  —  ensuring  that  opportunities  for  cost  reduc-­
tion  and  sustainable  performance  improvements  could  
be  realized  on  a  long-­term  basis.  
8

What Booz Allen Brings


Booz  Allen  Hamilton  has  been  at  the  forefront  of   choice.  In  2005  and  in  2006,  Fortune  magazine  named  
management  consulting  for  businesses  and  governments   Booz  Allen  one  of  “The  100  Best  Companies  to  Work  
for  more  than  90  years.  Providing  consulting  services   For,”  and  for  the  past  eight  years,  Working  Mother  has  
in  strategy,  operations,  organization  and  change,  and   ranked  the  firm  among  its  “100  Best  Companies  for  
information  technology,  Booz  Allen  is  the  one  firm  that   Working  Mothers.”  
helps  clients  solve  their  toughest  problems,  working  by  
To  learn  more  about  the  firm,  visit  the  Booz  Allen  Web  
their  side  to  help  them  achieve  their  missions.  Booz  
site  at  www.boozallen.com.  To  learn  more  about  the  
Allen  is  committed  to  delivering  results  that  endure.
best  ideas  in  business,  visit  www.strategy-­business.com,  
With  18,000  employees  on  six  continents,  the  firm   the  Web  site  for  strategy+business,  a  quarterly  journal  
generates  annual  sales  that  exceed  $3.7  billion.  Booz   sponsored  by  Booz  Allen.
Allen  is  recognized  as  a  consultant  and  an  employer  of  

Dr.  Anders  Adrem,  is  a  Principal  in  Booz  Allen   Fadi  Majdalani,  is  a  Vice  President  in  Booz  Allen  
Hamilton’s  Stockholm  office.  He  is  part  of  the  Global   Hamilton’s  Beirut  office.  He  leads  the  Middle  East  
Airline  and  Aviation  Infrastructure  practice  and  has  led   Transportation  and  Aviation  practice.  He  consults  with  
assignments  at  major  airports,  airlines,  and  air  naviga-­ civil  aviation  authorities,  air  traffic  management,  and  
tion  service  providers  in  the  Nordic  region.   airport  operators  in  the  Middle  East  region.

Dieter  Schneiderbauer,  is  a  Vice  President  in  Booz   Evert  Meyer, is  a  Principal  in  Booz  Allen  Hamilton’s  
Allen  Hamilton’s  Munich  office.  He  leads  the  Global   San  Francisco  office.  He  is  part  of  the  U.S.  Aviation  
Aviation  Infrastructure  practice  and  has  led  major   Infrastructure  practice,  working  extensively  with  airport  
assignments  at  the  world’s  leading  airports  and  air  traf-­ operators  and  aviation  infrastructure  investors  in  the  
fic  control  agencies.   North  American  region.  

Downloadable digital versions of this article and other Booz Allen Hamilton publications are available from www.boozallen.com.
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