Case study

King Khalid International Airport (KKIA)

Terminal 5 Management Contract and Corporatisation Project

Riyadh

This case study is the amalgamation of two distinct projects. We have grouped them together to highlight how the daa International team can partner with clients throughout the airport transaction life cycle.

T5 Management Contract
Corporatisation Project
King Khalid International Airport

Terminal 5 (T5) Management Contract

Terminal 5 has a building area of 106,500m². It has 17 passenger bridges, four bussing gates, 60 check-in counters and five baggage reclaim belts. It can accommodate 12 million passengers per year to IATA Level of Service Standard ‘C’ and has 2,752 car parking spaces.

Terminal Operating Model:

Process:
Based on the concept of ‘Transforming T5 Together’, our bid promised to deliver a world-class airport experience where passengers would feel relaxed, refreshed and at ease.

To achieve this ambition, daa International devised a set of values and guiding principles for KKIA T5 that would:
  1. • Honour Saudi culture
  2. • Unlock T5’s potential
  3. • Deliver results
We developed a customised, passenger-centric operating model, consisting of several integrated elements that would realise this promise. Our approach was rooted in partnership and took account of the cultural and political environment in which the airport operates. In particular, it ensured that Saudisation was addressed through our training division so that critical capabilities could be established and grown.

The operations contract encompasses all terminal management services, along with the control of commercial tenants such as retail and food & beverage. As part of this commission daa International uses its ISO55001 experience to establish, implement and maintain a robust asset care approach. Through our experience, insight and collaboration with GACA and RAC, the terminal’s performance is on a steady upward trajectory since its soft opening on May 23rd, 2016.

Outcome:
A high-functioning, passenger-centric terminal, serving 30,000 passengers per week and strategically positioned for commercial expansion. T5 is destined to become the prototype project for Saudi airport commercialisation.
King Khalid International Airport

Corporatisation Project

In 2014, daa International worked alongside PwC on a year-long consultancy project to prepare KKIA for corporatisation and equip the General Authority of Civil Aviation (GACA) for the overall process. Supporting PwC, daa International played a lead advisory role providing Subject Matter Expertise in relation to the airport’s operational processes and procedures, both core and support. Deliverables:
  1. • Determine current structures and/ or existing operational processes and procedures at KKIA
  2. • Identify the gaps and establish the optimal KKIA bespoke processes and procedures
  3. • Develop a customised, operational processes and procedures plan to realise the corporatisation of KKIA.
  4. • As the diagram below depicts, daa International and PwC used a systematic approach to the delivery of the contract.
Process:
daa International identified areas of challenge and opportunities for improvement through an extensive period of engagement with senior management, involving workshops, interviews, data collection and analysis. In creating a joint sense of project ownership with key stakeholders, we successfully devised new or improved processes and SOPs to manage and elevate the operational and commercial performance of the airport.

A clear plan was developed, along with a set of supporting policy, process and procedure manuals, that would bring KKIA on the journey of corporatisation.

Outcome:
The creation of an enhanced terminal asset, primed for privatisation.