Unique model to balance airport systems

Early in 2009 the longstanding project partners, Airport Consulting Vienna (ACV) and airport design management (adm), set up their headquarters under one roof. Together, they offer a genuine 1-stop expertise: the full integration of marketing, commercial, master planning and financial airport know how. Numerous past projects prove them right – their unique model is unmatched in the airport industry.

ACV at a glance

As a leading private sector expert, ACV looks back on more than 15 successful years of proven, tailor made solutions that integrate the complex range of airport aspects. More than 250 projects and some 70 major airport developments and privatisations account for a strong global profile. ACV is renowned as one of the few companies in the industry offering hands-on insight as well as a comprehensive aviation market understanding.

ACV’s success derives from the many multi-faceted project functions the company has fulfilled over the years. These by far exceed the typical project roles associated with an airport consultant. Having been a principal operator, a shareholder, a strategic investment partner, an airport manager and a consultant on numerous occasions, ACV understands both sides of the coin: that of the operator and that of the investor.

A clearly formulated Strategic Development Concept is the heart of ACV’s expertise. It is accepted worldwide for best integrating marketing, commercial, technical and financial airport aspects. It defines the development requirements as well as those commercial and economic short-, medium- and long-term objectives that are needed to guarantee a project’s feasibility. It sets the financial parameters to attract private investors and international financing partners. And, it controls and monitors investments because it is based on sound business principles and an encompassing insight into airport mechanisms.

ad-m at a glance

Creative design expertise, thorough planning and construction documentation, as well as the fine balance achieved between economic aims and ecological principles distinguish ad-m’s master plans.

A sophisticated team of airport architects and civil engineers satisfy customer expectations with innovative, yet practical concepts. Even the most ambitious project is tailored to customer requests and individual project circumstances. Each design is thus as unique as the airport it depicts.

adm views the technical development of airports from a holistic perspective. Master plans are never a stand-alone solution. They express the strategic development in technical terms. They reflect the interplay of a multitude of complex processes and systems in a dynamic model. They are also the result of a highly efficient planning process that guarantees both, top quality and cost-effectiveness. Available spaces, capacities and resources are never wasted. Modular options and phased development scenarios assure an ideal utilisation.

A large number of reference projects pay tribute to the designers’ broad performance record.

adm complements ACV’s commercial expertise with master planning, program and project management, space and capacity planning, functional programming, and technical feasibility studies.

All-in-one solution
Things have changed. As a result, many airports find themselves in altered circumstances. A long list of challenges places even most sure-footed airport managers in a predicament. Around the world traffic volumes are plummeting. Some traffic segments perform better than others. Almost every airport grapples with decreasing revenues. Shrinking cash flows no longer cover rising costs or payment obligations.

With their joint expertise under one roof, the ACV and adm are best equipped to enhance efficiency, increase revenues, achieve profitability, boost traffic volumes, optimise capacity, improve quality and gain customer satisfaction. The Austrian team provides a workable solution for even the most complex question; how can the airport business be pulled out from a monetary nose dive? The answer sounds simple: first, devise a plan that takes the immediate edge off economic blows, and secondly put the entire airport system back on track.

ACV and adm have devised a series of interrelated and efficient short-term measures, focussing on route development, right-sizing capacities, cash flow optimisation, a re-assessment of the development program and an updated business plan to soften financial blows:

Route development
More traffic means more revenues, and extra cash. This is even more important when the going gets tough. But, how can one develop traffic at a time when passenger numbers are dwindling?

ACV takes a close look at past strategic marketing activities. The team assesses the airport’s characteristic market, seeks latent potential and finds new, effective possibilities. With an individually revised marketing plan as a guideline, airline customers are made aware of an airport’s full market potential. The aim is to convince existing customers to increase load factors and consider more frequencies. And, new customers can only be won by illustrating the estimated number of future sales prospects for more passengers and higher load factors.

An individually tailored marketing strategy, based on real market opportunities,  delivers the guideline to (again) boost traffic and route development.

Cash flow optimisation
For many airports monetary flows seem to end up in a bottomless pit. The factors that limit profit margins are mostly known, but cannot really be identified. Yet, times of change call for a clear focus on money matters.

There are many ways to tighten one’s belt. For example: a re-negotiation of concession contracts will release new revenue streams. Most concessionaires would welcome an innovative win-win solution. Streamlining the aviation and non-aviation business reduces operating costs and improves working capital. And why not opt for less expensive part-time work during off-peak hours?

ACV has integrated such measures in a practical short-term cash flow optimisation program. It stabilises and reduces costs, while it strengthens earnings.

Right-sizing capacities
In an ideal world, airports “grow” with increasing traffic at a rate forecast in advance. Reality though paints a different picture. Many airports experience decreasing traffic, others sharp increases in perhaps only one traffic segment. Where capacity limits exist on one side, surplus space and unused areas are found on the other side. And airports are left to foot the bill.

adm analyses airport facilities, and compares them to market demand and quality standards. A functional capacity plan accurately pinpoints gaps. Actual and enhanced traffic flows, as well as operation processes determine the best utilisation.

An integrated investment program establishes future requirements, the times and amounts of investments. Its flexibility helps achieve and fine-tune the economic balance of capacities. Sufficient capacity at the right time in the right size is the result.

Re-assessment of the development program
A lot of effort goes into securing a master plan and the required financing. After a few years, quite a few projects have been realised, but many are still a long way off. Automatically, one questions whether these planned investments still match current and future needs.

ACV and ad-m re-appraise the master plan from all angles. Jointly they re-align its technical and commercial parameters with the airport’s role in the region, and adapt the corporate strategy.

An updated investment program reflects a right-sized project development. It aims at determining those phased and deferred investments that put financial resources back on track.  Where required, their financial experts re-negotiate terms and conditions with banks and lenders.

Updated business plan
An updated business plan is the heart of these short-term measures. It reflects their results, and it shows how they can be achieved with a number of alternatives. It optimises the airport business quickly and effectively. It can also be seen as the required bankable document supporting negotiations with banks and financial institutions. But, more importantly, it is the key for management teams to act and not react.

Two partners – one model
The two partners follow their globally proven, holistic approach – always.

The starting point is an evaluation of current and historical traffic data, followed by a thorough assessment of the actual aviation and tourism markets. An in-depth understanding of the key driving factors impacting on future traffic growth is the result. This market knowledge is the key to shape the airport’s particular strategic and technical development, based on a long term vision and a series of strategic initiatives.

The future, phased technical development – its capacity planning and investment programming – always reflects realistic market circumstances.

The financial results derived from such “real-life” scenarios are cost effective and comprehensible. They also stand a much greater chance of attracting financing than projects that are based on mere econometric calculations with little relevance to realistic market developments.

ACV and adm work in sync to seek customised solutions, while applying their trusted model:
• Market assessment
• Strategy
• Traffic forecast
• Technical concept
• Operational concept
• Business plan

The Austrian experts provide short-term solutions that add value for long-term sustainability. Their concept is unmatched in balancing systems.

Contact details:
Airport Consulting Vienna GmbH
Managing Directors: Wolfgang Edelmann, Johann Frank
Atelier Belvedere Top 8, Landstrasser Guertel 3, A-1030 Vienna, Austria
T: +43 1 236-7007
F: +43 1 253-3033-7399
E: office@a-c-v.aero
www.a-c-v.aero

airport design management GmbH
Managing Directors: Dr. Lutz Weisser, Peter Koenigshofer
Atelier Belvedere Top 8, Landstrasser Guertel 3, A-1030 Vienna, Austria
T: +43 1 513-1040
F: +43 1 513-1040 – 11
E: office@ad-m.com
www.ad-m.com