Expenditure

Airports, as an asset class, have a strong appetite for expenditure. It is the role of a commercial operator to ensure that sensible investment is made in enhancing asset value while also ensuring that expenditure is balanced. This ensures the long-term viability of the airport as an asset and maximises year-on-year investment return.

Increasingly, executive management is under pressure to control costs, increase revenues, and optimise operational efficiencies while maintaining a high level of service to their customers and constituents. daa International assists executives and management in achieving these objectives by providing a full scope of Opex and Capex consulting services.

Opex

Identifying specific airport objectives and rolling out the optimal operational plan for the future.

The daa International approach:

  • Review of the existing airport operational systems and processes
  • Linking the operations to the commercial objectives
  • Identifying the gaps
  • Benchmarking against international operational methodologies
  • Forecasting and planning for future operational requirements
  • Creating a dynamic workable operational strategy
  • Advice and roll out recommendations
  • Implementation

Benefits to the airport and investor:

  • Direct correlation between business and operational aspirations
  • Alignment of airport senior team to achieve the common goal
  • Breakdown of blinkered functional delivery

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The briefing, design and delivery of IT&T architecture to meet the airport’s business needs.

  • Business systems
  • Security systems
  • Safety systems
  • Operation systems
  • Air traffic control systems
  • IT network
  • Redundancy
  • FIDS and GIDS

The daa International approach:

  • Catalogue, map out and analyse the existing IT&T airport systems and processes
  • Review the current functionality, condition and life expectancy of existing IT&T structures and systems
  • Stakeholder consultation process – airport and airlines
  • Identifying IT&T gaps
  • Benchmarking against international IT&T standards
  • Create dynamic workable operational IT&T briefing, solutions and implementation methodologies
  • Advice and recommendations
  • Implementation

Benefits to the airport and investor:

  • Cost efficiency across the airport
  • Stakeholder satisfaction
  • Excellent source of statistical information and intelligence

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Ensuring that the airport’s output to input ratio improves resulting in the smooth operational running of the overall airport.

The daa International approach:

  • Catalogue, set out and analyse the existing airport operational systems and processes
  • Review the current resourcing against appropriate overheads
  • Identifying the efficiency gaps
  • Benchmarking against international efficiency standards
  • Create dynamic workable operational solutions and implementation methodologies
  • Advice and recommendations
  • Implementation

Benefits to the airport and investor:

  • Increased productivity and reduced expenditure
  • Focuses airport management and staff on lean delivery

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Building, maintaining and enhancing positive relationships with the key airport stakeholders.

  • Air Traffic Control
  • Airlines
  • Staff
  • Passengers
  • Local community
  • Statutory authorities
  • Tenants and concessionaires

The daa International approach:

  • Identifying and mapping key airport stakeholder relationships – existing/ nonexistent
  • Analyses and understands the drivers that are significant in delivering satisfaction
  • Building relationships and plans around these drivers
  • Allocating senior staff to take ownership and responsibility
  • Regular updates between stakeholders and the airport business to manage and mitigate issues
  • Maintaining clear relationship records

Benefits to the airport and investor:

  • Fosters open and holistic symbiotic relationships
  • Business To Business opportunities are enhanced in terms of efficiency and revenues

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Embedding the principles of ethical business conduct in the ethos of the airport business – mission, vision, values, etc

  • Self-regulation
  • Ethical standards
  • International norms

The daa International approach:

  • Identifying the key drivers behind and unique to the particular airport
  • Establish a set of principles and guidelines to address these issues
  • Create staff awareness and foster good corporate conscience
  • Build relations with stakeholders and community
  • Publish CSR related material

Benefits to the airport and investor:

  • Fosters open and holistic symbiotic relationships
  • Business To Business opportunities are enhanced in terms of efficiency and revenues

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Understanding and controlling the full cost of employment across the airport’s business streams and the associated returns to revenues.

  • Payroll
  • Welfare
  • Pension
  • Vacation

The daa International approach:

  • Studies and analyses the existing contractual and employment conditions and obligations
  • Linking employment costs with value returns to the business
  • Benchmarking against national and international airport labour costs
  • Forecasting and planning for future employee cost requirements
  • Identifying and working with opportunities and constraints
  • Report and conclusions
  • Advice and recommendations
  • Implementation

Benefits to the airport and investor:

  • Clear correlation between employee costs and value delivered to the business
  • Increased efficiency across the wider organisation
  • Planning for future employer obligations to employees

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Ensuring that the airport’s people, systems and processes are aligned to meet the airport’s particular business objectives and goals.

  • Right size operating model
  • Management structures
  • Human Resources
  • Debottlenecking/treacle
  • Event management
  • Process improvement
  • Resource management – matching the resources to operational requirements

The daa International approach:

  • Establish airport direction needs and business aspirations
  • Review of existing airport organisational structures– management, contracts, compensation, welfare, pensions, etc
  • Stakeholder briefing and review
  • International benchmarking
  • Develop a customised organisational design model
  • Identify opportunities and constraints
  • Design and optimal organisational strategy
  • Advice and recommendations
  • Implementation – manage contracts and recruit accordingly

Benefits to the airport and investor:

  • Streamlined efficient and clearly structured organisation
  • Drives integration of people, systems and process
  • Reputational advantage

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The efficient coordination and delivery of the airport assets and infrastructure.

  • Life-cycle costing
  • Utility provision
  • Waste management
  • Baggage system
  • Cleaning maintenance

The daa International approach:

  • Review of the existing airport assets and infrastructure – portfolio, condition, maturity, etc
  • Linking assets and infrastructure to overhead costs and value delivered to the airport
  • Set the appropriate asset and infrastructure standards suited to the airport
  • Identify the gaps
  • Benchmarking against international facilities management and asset care thinking
  • Forecasting and life-cycle planning for future asset and facility requirements
  • Create a dynamic and workable asset care programme
  • Advice and recommendations Implementation

Benefits to the airport and investor:

  • Clear understanding between asset care and value delivered to the business
  • Ensures a disciplined and documented approach to asset care

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Fully documenting and co-ordinating the airport’s key operational processes, to meet the highest international standards.

How it works:

  • Review and document the existing airport systems and processes
  • Identify the missing procedures for the airport
  • Review and analyse the existing procedures in detail
  • Benchmarking against international airport standard operational procedures
  • Establish a new customised standard operational procedure for the airport
  • Review with all relevant stakeholders
  • Roll out SOP training programme
  • Review audit and update as appropriate

Benefits to the airport and investor:

  • Clear understanding of systems, methodologies and objectives
  • Ensures a disciplined and documented approach to asset care

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Capex

The professional overarching and detailed roadmap in guiding an airport’s operational, commercialisation and sustainable development in the short, medium and long term. daa International can guide through the complexities of demand, capacity, connect time, passenger flow, regulation and investment for both new and operating airports.

  • Establishment of urban planning concepts
  • General development plan
  • Capacity development plan
  • Transport planning costs
  • Sizing and capacity planning for all airside assets
  • Simulation modelling

The daa International approach:

  • Establish airport needs and aspirations
  • Review of existing airport campus – location, proximity to conurbation, topography, building stock, condition, etc
  • Stakeholder briefing and review
  • International Benchmarking
  • Develop a targeted master plan scope
  • Optioneering – opportunities and constraints
  • Develop a master plan for airport in partnership with the design and finance consultants
  • Advice and recommendations
  • Implementation

Benefits to the airport and investor:

  • 5, 10 to 25 year forecast established
  • Creates flexible roadmap for the development of the airport
  • Tool to advise regulator and airlines

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The timely alignment of capital expenditure with airport growth and development needs.

  • Programme office
  • Capital investment programme

The daa International approach:

  • Use the master plan to establish and schedule the airport needs and aspirations
  • Alignment of traffic forecast and revenue generating potential with the deliverable in the master plan
  • Stakeholder briefing and review
  • International benchmarking
  • Monitoring operational needs as triggers to capital expenditure
  • Continuous advice and recommendations
  • Just in time implementation

Benefits to the airport and investor:

  • Capital expenditure confined to ‘as needed basis’
  • Aligning debt with the airport revenue streams
  • Restricts over development
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The CAPEX solutions that optimise the relationship between expenditure and fitness for purpose.

The daa International approach:

  • Clear project identification and scoping
  • Testing of project and expenditure against value and functionality
  • Stakeholder engagement in decision making
  • Refine the balance between expenditure and fitness for purpose
  • Advice and recommendations
  • Implementation

Benefits to the airport and investor:

  • Avoid redundant expense
  • Disciplines the organisation
  • Examines the whole life cycle cost benefit of the proposed solution

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