Back to Regional e-Newsletter LAC Q3 2010

Improving the airport experience

Alex Covarrubias
Senior Business Consultant

As traffic growth in the Latin America region continues to surge, airports are looking for creative ways to maximize their infrastructure and manage their resources more efficiently. The region was responsible for approximately 6.2% of world traffic in 2009, while holding more than 9% of its population. Air transport in our region is forecasted to be among the fastest growing in the world over the next 20 years. According to IATA, airports in the region are in "urgent need of modernization to adapt to current and forecast traffic volumes".

The following is a snapshot of the initiatives that SITA has in the region to address this market demand.

Brazil airport strategy

Domestic traffic growth in Brazil continues to surge, jumping 27.6% during the first half of 2010 compared to the year prior. This surge in traffoc has brought with it a number of challenges.

Airport infrastructure, which is concentrated in the hands of Infraero, the airport administration company that handles over 95% of Brazil's civil aviation traffic, has not grown at the same pace as demand. Thirteen of Brazil's 20 largest domestic airports have bottlenecks in their passenger terminals, something that has caused a reduction in the level of service provided to airport users.

This organic growth, plus the upcoming WorldCup and Olympic Games, will stretch the infrastructure currently in place even further. We are currently applying SITA solutions to help airports and airlines in Brazil ensure the upcoming expansion projects are mapped with the technology upgrades. With this in mind, we have two initiatives underway:

Full CUTE implementation of major airports in Brazil - through the full implementation of Airport Connect CUTE, costly terminal expansions could be delayed, freeing up capital for other important investment requirements.
Expansion of Airport Management Solutions (AMS) in Brazil - will greatly help airports in the region manage the operational planning and tracking for real-time and irregular operations, flight information displays, aeronautical billing and reporting.

Positioning of our Baggage portfolio in the region

SITA has identified many airports and airlines that can greatly benefit from our Baggage portfolio by reducing the number of mishandled bags and all the associated costs - baggage return costs, fees, on-stand time, staff effectiveness, etc.

Airport outsourcing

We are working on several initiatives to enable airport operators to focus on their core business of running a secure, passenger friendly and efficient airport environment for their tenants, business partners and the millions of passengers who use their facilities each year.

Enhancing our relationships

SITA is diligent about maintaining and enhancing our relationships with construction companies, integrators, partners, and consulting firms. This ensures we can improve our positioning to capitalize on opportunities, as well as identify and capture untapped markets in the region.

Positioning new products in the market

SITA just launched AirportBusiness Manager (ABM). Provided in partnership with GCR & Associates, ABM is a comprehensive set of application modules used to manage and maintain airport agreements and leases, property and space, airport activity statistics, and accounts receivable, as well as generate revenue billings for Aeronautical and non-Aeronautical revenues.