www.askhelios.com

Management and technology consultants Management and technology consultants

Nick McFarlane

26 March 2014

Shared ANS Services for Airports

2

Airports face a tough time

3

ACI shows that small airports are particularly

vulnerable

4

Economies of scale are achieved at larger airports

Passengers

Revenue

Costs

Breakeven

Large fixed or

‘inelastic’ costs

Economies of scale achieved here

Airport making loss Airport making profit

5

Even a small airport tower might require 30 staff

Tower controllers – up to 10

Assistants, engineers, managers and admin – up to 10

Approach controllers – up to 10

Informal estimates suggest ATC can

represent 40% of small airport operating

costs

6

So what can be done?

A shared service is a concept to save money and improve quality

Two innovations are required:

• A technical innovation

• A business innovation

7

Some airports already share their approach control

services

• DSNA provides approach control for four commercial airports

from the Montpellier facility rather than each airport

separately

• Vantage ATS transferred the approach control for Robin Hood

Airport Doncaster Sheffield to Liverpool John Lennon Airport

and created a shared approach control for the two airports

• London has had a common approach control service since

1993, known as London Terminal Control

8

Remote Towers

Remote Tower

Video images of airport

A technological innovation to allow Tower Control to be conducted remotely

9

Sundsvall Remote Tower Centre

Due in operation Q2 2014

10

Remote towers are the most innovative change in

airport ATC in 30 years

Other enhancements include object

tracking and labelling

Safety case required

Multiple airports can be serviced

from a single remote centre

11

A 2-step transition could be envisaged

Step 1: Move the approach

controllers to a shared ATC

facility

Step 2: Move the tower controllers

into the facility using remote towers

12

Cost saving >25% is required for each airport

A likely minimum to make the transition attractive

Measured over the lifetime of the project

13

Benefits of a shared ATC facility

Addressing staffing issues

• Overcoming recruitment, retention problems

• More staff development options

• Big enough for own training services?

Improvements in service

• Centres of excellence

• Critical mass for new developments

• Reduced reliance on individuals

• Easier management of annual leave obligations

14

An unmanned aircraft lands at an unmanned airport

15

Buying Clubs – an innovative collaboration vehicle

Buying

Club

Airport #1 Airport #2 Airport #n

• Club makes single procurement

• With common specification/SLA

• Fairly long duration contract

• Members contract to the club

• Monthly fees in proportion to usage

• Capital costs paid by supplier

• Clubs are not-for-profit. Benefits are shared with members.

16

How can airports move forwards?

Airport operators need to :

• Identify other airports with which they could collaborate

• collectively evaluate the concept

Early engagement with the Civil Aviation Authority (CAA) required

Role for regional governments, trade organisations…

Next steps are:

• To identify suitable airports to participate in the buying club

• To develop the specifics of the concept for the airports concerned

• To prepare a business case to evaluate the concept

• To develop an outline agreement for the buying club

• To identify key risks and prepare risk management plans

www.askhelios.com

For regular updates follow us on

www.askhelios.com

For regular updates follow us on

Management and technology consultants

Nick McFarlane

Managing Director

Tel: +44 1252 451 651

nick.mcfarlane@askhelios.com