Back to Air Transport IT Review - Issue 1, May 2010
Airport communications - improving service and turning costs into profits
Exploring the potential to improve service and turn costs into profits
Stakeholders at airports have different and often competing needs. For the airport, getting the right business and IT strategy is a fine balancing act.
Airlines face the constant pressure to reduce costs and delays, while also investing to meet the deadlines of industry programmes such as IATA's Simplifying the Business. Achieving efficiency at the airport is critical to the success of airlines. Passengers, meanwhile, expect Wi-Fi access and cellular phones and handhelds to work everywhere - as they become increasingly mobile.
Such demands are a big challenge for airports. They need to provide a better IT infrastructure for the entire community while also combating financial pressures of their own.
But how can airports invest in state-of-the-art IT systems to make themselves more attractive to airlines - and at the same time reduce their own costs?
New lines of business
One approach that is attracting increasing attention is to transform airport communications and IT departments from internal support organizations into a managed service operation focused on the needs of the customers. Early success stories are very encouraging: Manchester Airport was able to offset its IT budget by 30%.
This transformation can result in a win-win-win proposition:
- Airports can attract new airlines and routes by offering 'plug and play' IT systems at competitive prices, while generating new revenue streams from passengers by offering new IT-based services.
- Airlines and other tenants receive an improved, lower-cost IT and communications infrastructure that leaves them to focus on their core business.
- Passengers benefit from the airlines' cost and efficiency gains, and also directly benefit from the improved infrastructure with, for example, better wireless services (50% of passengers, according to SITA's latest Passenger Self-Service Survey, want improved Internet access).
Airport Hub
However, meeting the expectations of airlines and other tenants to deliver cost savings and better service levels from shared infrastructure can be a challenge. Many airports have turned to SITA and deployed its Airport Hub solution. Currently, more than 250 airlines, ground handlers and other airport customers use it at 110 airports around the world.
The success of Airport Hub in sharing telecommunications infrastructure is giving many airports the confidence to make the next step and provide new shared services to tenants across that infrastructure.
One IT opportunity that can create additional revenue streams is SITA's Voice Exchange. It offers a full featured IP telephony system with tenant billing that is scalable. Uniquely, it also offers integrated single sign-on with SITA's AirportConnect CUTE system. This 'common-use' approach enables airline staff to streamline operations with a unique dialing profile, speed dials, corporate dialing, and customized tariffs.
That can simplify operations. According to Bob Kwik, SITA's Airport Communications Business Development Director: "In Brisbane airport, for example, when a user receives a call from a telephone at a CUTE workstation, they can easily see where the call is coming from, such as 'Qantas Checkin Row 3' rather than just a phone number, enabling a supervisor to prioritize or triage incoming calls, which is very useful during periods of high workload or operational incident."
Mobility improves flexibility and efficiency
Another technology that lends itself to shared infrastructure is wireless. Mobility solutions are fast becoming the tool of choice to change the way airports perform day-to-day activities, replacing paper-based and voice dispatched procedures. Mobility is setting standards of efficiency, offering bi-directional and instantaneous exchanges of information that save airports time and money.
Over the last couple of years, SITA has been developing 'Workforce Mobility' to help airports and their customers be more flexible in meeting operational challenges. Workforce Mobility improves staff efficiency and resource-tracking capabilities.
A real-life scenario illustrates the advantages: A passenger with special needs arrives at the check-in counter. Instead of having to spend time searching for the right contact, or having to call several sources before finding available assistance, the agent simply presses a preset key on an IP telephone. The closest available ground agent is reached via their mobile device, and acknowledges and responds to the request.
The result is another win-win-win scenario:
- The passenger doesn't wait to receive support.
- The agent doesn't waste time trying to find an available ground agent.
- The airport is able to provide the optimal work environment to both airlines and ground handlers.
Outsourcing
A fast track approach to becoming a service provider is to tap into the skills and experience of external IT service companies, such as SITA. By outsourcing their IT departments, airport operators can focus on their core business of running secure, passenger-friendly airports. In turn, they will benefit from an IT organization which supports the airport's strategic objectives, and provides greater financial control and cost reductions.
A successful example of IT outsourcing is Dusseldorf Airport, which has completely outsourced its IT operations while increasing services to tenants. The resulting success has been two-fold: reduction in costs while increasing ancillary revenues.
The airport recently deployed SITA's Professional Mobile Radio (PMR) airport-wide to handle high traffic loads with no downtime for up to 3,000 subscribers. The system uses a single streamlined platform that improves voice communications and information flow, opening the door to mobile voice services, such as group calls based on flight schedules and aircraft tasks. With integration to the airports telephony system, PMR gives Dusseldorf a seamless, intelligent and mission-critical communications system across the entire airport.
Bringing it all together
What is becoming clear is that new communication technologies need to be adopted at the airport level rather than left to the ad-hoc approach of airport tenants, if the full benefits are to be realized.
The cost of communications, for example, can be significantly reduced when consolidated across an airport campus, while improving the consistency and level of service. In addition, airports can integrate new and existing airport systems onto the same platform reaping further benefits in terms of efficiency and flexibility.
Take the example of Dublin Airport.
A unique feature of Dublin's new Terminal 2 enables passengers flying from Ireland to the US to clear immigration and customs in Ireland. This allows them to arrive in the US as a domestic passenger, greatly reducing transit time on arrival.
To accomplish this, the US government required autonomous control of the airport environment; in essence they needed their own terminal, but Dublin Airport could not afford the space.
A technology solution provided the answer. At certain times of the day, entire access and control to certain parts of the airport diverts to the US government. During these times, only US officials can see the CCTV cameras and control doors to certain access areas. The rest of the day, those cameras and areas are open and part of the rest of the airport.
This example, a SITA solution, shows not only the operational flexibility that integrated systems can provide, but also how robust today's technology is. It enables airports to meet the diverse and often competing needs of stakeholders in the airport ecosystem.
Conclusion
Airport communications are rapidly evolving with unprecedented dependency on complex IT systems and infrastructure. Airlines and passengers, as well as other airport stakeholders, want to tap into this expanding capability, and reap the commercial and operational benefits.
An integrated communications infrastructure provides a breadth of operational benefits, and the platform for an airport to better use its infrastructure to address the increasing financial pressure of the air transport industry. This improves services to the community while maintaining state-of-the-art IT systems and service. Ultimately, airports can more effectively compete in attracting airline business by offering an improved communications infrastructure and airport operational environment.
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