Air Transport Infrastructure Russia & CIS Lessons learned from 14 Feasibility Studies or Master Plans on Russian Airports

Lessons learned from 14 Feasibility Studies or Master Plans In the last 3 years I was asked to work out 14 Feasibility Studies or Master Plans on Russian Airports; some as the main contractor, some as a subcontractor for a big German Airport Company.

Lessons learned from 14 Feasibility Studies or Master Plans The experience of these Studies or Master Plans can be grouped into 6 areas Infrastructure optimization Organizational structure (staff) Operational optimization Economic optimization Increasing the number of flights re. passengers Attracting Investors

Lessons learned from 14 Feasibility Studies or Master Plans Infrastructure optimization The layout and the design of the Russian airports lay mostly decades in the past, esp. at smaller airports. The buildings etc. are mostly in a bad condition. This results in higher maintenance and operational cost. Helpful: Upgrade the design and layout to nowadays needs Improve the building to offer the passengers a more comfortable and efficient service to receive higher revenues Be prepared for the future and maybe competition with a nearby airport

Lessons learned from 14 Feasibility Studies or Master Plans Organizational structure (staff) The organizational structure, the number of staff, the education and training of the staff and the shift roster are mostly not adapted to the actual situation at the reviewed airport. A passenger and revenue orientated airport organization is better prepared for the future. Main topics: number of staff according the operational needs organizational chart according the core business of an airport Staff roster and shift schedule according the needs of the flight schedule

Lessons learned from 14 Feasibility Studies or Master Plans Operational Optimization The operational optimization should be done hand in hand with the organizational optimization. The operation should be focused on the customers: airlines and their passengers or cargo Main topics: training of the staff plan the operation: seasonal, monthly, weekly to daily using good and reliable equipment using available IT software as a support focus on the demands and wishes of the airlines listen to the needs of the airlines and their passengers

Lessons learned from 14 Feasibility Studies or Master Plans Economic Optimization The pre-condition for the economic success of an airport is based on the optimization of the infrastructure, equipment and staff. If this is fulfilled the airport will have, besides other positive effects, economic success because: the airlines welcome an efficient and optimum service and are willing to pay handsome fees the passengers like to be earlier at the airport and spend additional money while waiting for the flight retail companies are interested to rent space for a shop, kiosk, restaurant etc. and willing to pay reasonable fees at good airports a service oriented airport is attractive for airlines to fly in

Lessons learned from 14 Feasibility Studies or Master Plans Increasing the number of flights re. passengers The core business of an airport is to serve airlines and their passengers or cargo. One way of increasing the revenue is to attract new airlines or more flights from the existing airlines. But to interest airlines, some basic requirements should be done ahead of that. the airport must be attractive to the airline in every way the airport should cooperate with the regional industry (for business connection) and with the local Government (for business and leisure connections) the airport should cooperate with the regional leisure industry and tourist offices offer incentives to the airlines to introduce new flights

Lessons learned from 14 Feasibility Studies or Master Plans Attracting investors There is no question, winning an investor is a very easy way of getting financial support for improvement or amortization. But there are not only advantages having an investor aboard Any investor want to gain money, not to loose it The airport should make himself attractive and interesting Investors want to know where to spent the invest; so a Master Plan and a Business Plan are essential to have before facing investors the existing and expecting air traffic figures are essential to have most of the investors want to be involved in decisions

Lessons learned from 14 Feasibility Studies or Master Plans Conclusion Well experienced and educated Airport Management is the enabler for leading an airport to success Improved airports have a better chance in increasing traffic and revenue Trained and motivated staff is a main criterion for an efficient and successful airport Airport Manager or the respective Government should be realistic with their vision for their airport Beside some ferw airports in Russia, it will be difficult at the moment to find an investor for improvements An unclear ownership is a big issue at many Russian airports

Lessons learned from 14 Feasibility Studies or Master Plans Thank you for your attention! If you want to contact me, please feel free to do so: Johannes M. Ehmanns Erlenweg 10 51147 Koeln Germany Tel.: +49 172 2434434 Fax: +49 2203 21911 E-mail: jm.ehmanns@avconehmanns.com Homepage: www.avconehmanns.com Russian mobile phone number: +7 928 467 2391