Airport digital

transformation
From operational performance
to strategic opportunity
 This document was drafted by Arthur D.
Little (hereinafter “ADL”) at the request of
Amadeus IT Group, S.A. on terms specifically
limiting ADL’s liability. The conclusions of this
document are the result of the professional
judgement of ADL, based in part on materials
and information provided to ADL by Amadeus
IT Group, S.A. and others. The use of this
document by any third party, so authorized
by ADL, for whatever purpose should not,
and does not, release such third party from
its duty to apply due diligence in verifying
the document’s contents. Any use of this
document by a third party, or any reliance on
it, or decisions to be made based on it, are the
exclusive responsibility of such third party.
ADL accepts no obligation or liability in respect
of any such third party, and no responsibility
whatsoever for possible loss suffered by any
third party as a result of decisions or actions
based on this document.

2
Foreword
Unlocking the power of technology to build the airport
of the future
The pressures within the airport environment due to increased demand for global
air travel, infrastructure constraints in many markets and increasing traveler
expectations are intense.

In this context, the challenge for airports is to maximize existing infrastructure,

improve efficiency and ensure that their proposition delivers value to all stakeholders.

We initially commissioned Arthur D. Little to explore the role of technology in helping

to reduce cost, an important issue for all businesses and indeed for many airports.
However, it became clear throughout the research process that airports
view technology, as do we at Amadeus, as an enabler of business transformation
as well as a tool for cost reduction.

As a result, this paper provides valuable insights into how technology can be
deployed to build the digital airport of the future. It highlights the different process
areas where the application of technology can deliver the most value and the critical
success factors toward digital transformation.

The paper also offers insight into some of the specific technologies that have a
major impact on the evolution of the airport. The benefits of these technologies
range from cost reduction and operational efficiency through to enhanced
passenger experience.

And while understanding the role of technology in cost reduction was the primary
driver of this research, we are delighted that Arthur D. Little has been able to set
this into a wider and more comprehensive context.

We hope you enjoy reading this paper.

John Jarrell
Head of Airport IT, Amadeus

1
 Table of content

Executive summary

1. Introduction: digital and the airport

tipping point

2. Digital airport transformation:

why invest?

3. Current state of the digital airport journey

4. Future outlook: the role of digital in

driving cost and efficiency benefits

5. Outlook: toward the digital airport

of the future

6. Conclusion: critical success factors

for effective digital transformation
and holistic value creation

2
04
06

08

12

16

26

30

3
 Executive summary

In the context of sustained growth in air travel, rapid On a positive note, the progress made in transitioning
advancements in digital technology and ongoing away from the ‘new normal’ of self-service and
cost pressures in the global aviation sector, Arthur D. process efficiency toward the use of digital to optimize
Little has conducted a research study to examine the flow monitoring and passenger processing, must be
potential for digital technology to reduce total airport noted. In recognition of this journey – which for many
operating costs. airports is far from complete – this study highlights
the role of specific digital technologies, including
What the study highlights is that, while digital cloud and big data, but also Internet of Things, virtual
technology certainly has a role to play in helping modeling and simulation and collaborative smart
airports extract greater efficiency from both OPEX machines and robots, in enabling transformation.
and capital outlays, the benefits of effective digital
transformation go far beyond cost reduction. Faced The promise of greater cost efficiency, but also
with multiple pressures, airports, it is argued, are enhanced capacity, operational resilience and
rapidly approaching a ‘tipping point’ beyond which passenger experience, resonates with all airports.
the needs and expectations of passengers, airlines Yet, if airports are to realize the full potential of
and shareholders can no longer be met. In order to digital transformation and its associated benefits,
access the full range of benefits associated with there remains much to do. As this study highlights,
more advanced levels of digital maturity, airports of to achieve effective digital transformation, airports
all sizes need to re-evaluate traditional approaches must confront and overcome a number of challenges.
to technology deployment, and embrace the concept At the most fundamental level the issue is how to
of ecosystem-level digital transformation. first understand the different technologies available,

4
and second, identify the practical applications that to shape the required internal culture and sustained
can deliver tangible benefits. To do this, airports must commitment needed to make effective decisions
develop their own internal technological capabilities. on technology selection and implementation are
Equally, while one could be forgiven for assuming essential for success. For those airports that
that cost is a major barrier to the adoption of digital recognize and address these imperatives, digital
solutions, what this study finds is that, in many transformation efforts can yield true step-change
cases, it is the ‘soft’ cultural issues that are an even potential. Given the sector’s CAPEX-intensive nature,
greater impediment. If airports cannot overcome the importance of strong cost discipline will not
the cultural and organizational barriers to change, go away. Nevertheless, for those airports at the
then the material resources at their disposal will be digital frontline, it is not holistic cost reduction but
of limited consequence, and the chances of digital broader benefits in the areas of revenue generation,
transformation success will be much reduced. operational performance and the customer
experience, that are likely to provide the strongest
Based on interviews with over 15 major airports rationale for the digital transformation agenda.
and the views of selected industry experts, this
paper demonstrates that the path toward airport
digital transformation is not an easy one. Airport
executives must consider key factors as they shape
their strategies including the need for clarity of
purpose and effective partnering and collaboration
within the airport ecosystem. Furthermore, an ability

5
1. Introduction: digital and the airport
tipping point
The aviation sector continues to experience rapid and with a fundamentally different set of physical and
disruptive change. Arthur D. Little refers to this as the now digital needs relative to 10-15 years ago.
era of hyper-competition, characterized by intense
competition for resources between industry players At the same time, airports remain inherently capital-
and the blurring of traditional competitive boundaries. intensive businesses. Although airport ownership
In such a context, the consequences for airport structure may influence commercial outlook, all
business models and their partners in the airport airports are under pressure to optimize the total
ecosystem have become apparent at multiple levels. cost of their operations, including OPEX and CAPEX,
without compromising safety or business continuity.
Hub airports, defined as those airports serving in Furthermore, to offset growing pressures on
excess of 25 million passengers a year with at least aeronautical revenues driven by the growth of Low
25% connecting traffic, face strong competition Cost Carrier (LCC) business models, airports must
from rival domestic hubs, competing regional hubs capitalize on new revenue generation opportunities,
and global ‘mega hubs’. At the other end of the whilst always understanding the importance of the
spectrum, smaller airports are often entrenched in customer experience at every step of the journey.
intense regional battles to attract and retain airlines.
This creates pressure to optimize their use of more To address these commercial realities, airports must
limited infrastructure and finances. In addition, the embrace the challenges and opportunities presented
evolving nature of inter-airline competition and by digital technology in a way that goes far beyond
business models exerts further stress on established incremental process improvement. On the one hand,
airport models. Finally, customer expectations, industry-wide initiatives such as IATA Resolution 753
enabled by rapid advancements in mobile and digital on baggage handling standards and the recently
technologies, have not stood still, presenting airports launched NEXTT1 program, are signs of growing

1 New Experience Travel Technologies

Figure 1: Arthur D. Little’s digital airport maturity model

Airport 1.0 Airport 2.0

All about manual and analogic Implementation of self-service
processes; typically, long thanks to the automation of
lag-times between resource some key flow processing tasks
solicitation and airport response (bag-drop, passport check)

6
attempts to define a coordinated approach to the age, skills and capabilities of the existing
digitalization. However, for the most part, airports human workforce.
have been left to define their own digital roadmaps,
leaving leading practice to still be defined. In the context of this varied landscape, Arthur D.
Existing airport business models and related physical Little’s digital airport maturity model provides a
and IT infrastructures face a ‘tipping point’, since they framework through which to assess the different
were simply not designed to handle the volume of levels of digital airport maturity. As will be
passengers or diversity of airport customer needs that demonstrated later in this paper, it can also be used
airports are experiencing today. to outline key considerations for airports, as they
prepare for inevitable business transformation, while
Equally, faced with the prospect of heavy capital all the while maintaining the safety and continuity of
investments and protracted construction phases, existing operations.
airports must anticipate how so-called Airport
4.0 technologies can deliver step-changes in cost It is with this background in mind that this research
performance and investment returns in ways paper throws the spotlight on the role that Airport
that traditional infrastructure and technology 4.0 technologies can play, not only in helping airports
options cannot (see Figure 1). optimize their total cost of airport operations, but
also in enabling the holistic enhancement of airport
Last but not least, the cultural change confronting value propositions.
airports, as they face up to the need to embrace
digital, should not be underestimated and in many
cases will require “radically different ways of
working”2 that are completely at odds with

2 Executive, leading provider of air traffic control services

Airport 3.0 Airport 4.0

Several focused initiatives Full-connected with all stakeholders;
to leverage digitalization to superior proactivity and reactivity
optimize flow monitoring and to adapt to the real-time airport
passenger processing requirements (e.g. operational
needs, customer requests)

7
2. Digital airport transformation:
why invest?
At their very heart, airports exist to facilitate the still be on developing the fundamental monitoring
efficient and secure processing of passengers and capabilities (perhaps under a pilot) or developing a
goods, whether inbound, outbound or transit and sufficient understanding of related technologies. The
transfer. They are also integral to the business extent to which digital is perceived to replace, as
models of a number of partner entities, ranging from opposed to reinforce existing manual processes also
airlines (in a variety of forms) to baggage handlers varies, and is a further indicator of digital maturity.
and other third-party service providers.
“We will not see complete substitution.
However, despite this common purpose, no single Digital is an extra complexity - it does
airport is the same and therefore they have different not mean complete substitution
needs and priorities with digital transformation. For
of manual processes.”
example, while for some the allure of digital may be
in providing new ‘point’ solutions to address short- Airport Executive, European Airport

term operational issues, for others the ambition may

be to transition to a fundamentally different business The varying maturity that characterizes the digital
or operating model. There is also a more subtle point airport landscape is also reflected in the different
to make, in recognizing the role that digital has to priority that airports attribute to the potential
play in reinforcing airport brands. benefits of digital technology. Through interviews
with senior leaders and technology experts at
Reflective of these varying approaches, airports major airports worldwide, it is clear that operational
also exhibit different levels of digital maturity. efficiency, incremental revenue generation, cost
While the majority of the airports interviewed in efficiency and customer experience enhancement
this study considered themselves to be transitioning are normally at the forefront of airports’ motivation
away from the ‘new normal’ of self-service and to invest (see Figure 2). However, the relative
process efficiency (Airport 2.0) toward the use of priority attributed to each dimension varies in
digital to optimize flow monitoring and passenger terms of airport size, geographical location,
processing (Airport 3.0), this should not mask ownership structure, the regulatory regime and
important differences between the airports that commercial mindset.
are on this journey. These include differences in
relative technological understanding, ability to act on
resulting insights, and the overall cohesiveness and
focus of the airport’s digital strategy. For example,
some airports may be accustomed to extracting the
insights from passenger flow monitoring so that they
can be used to proactively manage the passenger
experience. However, for others, the focus may

8
“Digital is no longer an afterthought
addition to existing physical processes,
it is becoming an intrinsic part of the
airport brand.”
Chris Au Young
General Manager of Smart Airport at Airport Authority
Hong Kong

9
 Equally, operational realities cannot be ignored Nevertheless, while there are differences in an
and are also a key determinant of what the top airport’s ‘digital appetite’ according to operational
priority benefits are likely to be. While operational scale, airports are likely to be receptive to the role
performance is important for all airports, capacity- that technology can play in aiding the recovery
constrained airports are likely to place the greatest from disruption management, such as the lasting
emphasis on the use of digital to optimize capacity impact that severe or persistent delays can have
and enhance operational resilience and agility. By on airport-airline relationships and the customer
contrast, for smaller regional airports, digital may experience. Geography may also be relevant, not
primarily represent a commercial tool used to attract only in shaping cultural attitudes to investment and
and retain those airlines that are so essential to an related approaches to airport regulation, but also
airport’s ongoing economic viability. In this light, because of the location-sensitivity of labor costs and
the value of digital solutions lies in their ability to therefore relative appetite to invest in labor-saving
reduce airline set up costs, as part of an overall digital solutions.
airport offering that is geared toward value for
money, rather than strict cost optimization.

Figure 2: Top priority digital transformation benefits

Target benefits, in order of priority, of investing in digital

technology at your airport

Operational efficiency: capacity enhancement 2.5

Operational efficiency: enhanced operational
1.9
resilience and agility

Cost efficiency: reduction in airport CAPEX 1.3

requirements

Passenger experience 1.3

Incremental airport revenue generation 1.1
Cost efficiency: reduction in airport OPEX 0.9
Holistic enhancement of airport value proposition
0.3
(as an explicit strategic objective)

Airline attraction and retention 0.3

Regulatory compliance
0.1
(e.g. environmental legislation)

0 0.5 1.0 1.5 2.0 2.5 3.0

Weighted average priority ranking scores

10
Finally, it should be noted that, in addition to the transition from technology pilots into full scale
attainment of positive benefits, airports’ digital implementation - before the application has been
investment decisions are also driven by the need truly embedded into established ways of working - or
to proactively mitigate the costs of non-adoption. from related cyber-security issues. Considering the
Research conducted into the relative priority prohibitive financial and PR costs of such failures,
attributed to a range of so-called digital technology these concerns can understandably stunt the
risks (see Figure 3) indicates that the risks of ‘doing appetite for digital innovation.
nothing’ are widely acknowledged. Especially where
airports see themselves in direct competition with Often, these risks are not exclusive to airports, but
other airports, they appear to be strongly motivated also affect their airline customers. In some cases
to use digital as a lever of long-term competitive this can result in the establishment of airport-airline
advantage. However, airports are also sensitive to partnerships, notably between national flag carriers
the need to maintain business continuity, and are with dominant home hub positions, to advance a
wary of potential connectivity and resilience issues mutually beneficial digital transformation strategy.
that could arise, for example, from attempting to

Figure 3: Prioritized digital technology risks

Technology risks associated with non-adoption of digital technology

in order of priority

Non-competitive operational
4.8
performance and business model

Inferior operational performance 4.4

Long-term structural cost disadvantages 3.2

Sunk costs, losses and failed investments 2.4

Environmental benefits/
1.0
legislative compliance

0 1.0 2.0 3.0 4.0 5.0 6.0

Weighted average priority ranking scores

11
 3. Current state of the digital airport journey

Top priority technologies so far

In assessing the potential of digital technology to having either trialed or implemented digital solutions
deliver cost benefits for airports, it must first be in these areas, in recent years. Examples include:
acknowledged that many airports have already
taken significant steps to transition from analogue _Internet of Things: the sheer volume and diversity
to digital businesses. But what have been the top of physical assets that exist within the airport
priority digital technologies on the journey so far? perimeter, and their criticality to business continuity,
has driven strong interest in IoT-based solutions.
Through interviews with leading airports globally, These technologies focus on the development of
big data & analytics and cloud computing enhanced human-to-machine and machine-to-
were consistently highlighted as the two digital machine interfaces to deliver real-time and online
technologies upon which airports had placed the information on asset location and condition. Such
greatest emphasis in recent years (see Figure 4). solutions are well suited to being applied in airport
As one senior aviation executive notes: environments, especially where there is a desire to
increase process automation and where reliance
“Because infrastructure projects are on existing manual ways of working is high. They
costly and often disruptive, a data-driven also pave the way toward the attainment of other
understanding of future demand — benefits. For example, by installing remote sensors
on motorized ground services equipment, such as
such as the expected number of aircraft
push back tractors, airports can benefit from real-
movements, passenger traffic throughput
time information on asset location and performance
and air cargo volumes — gives airport (including maintenance needs). Such applications
planners and investors the necessary offer clear benefits for airport resource management
information for effective decision-making.” and operational resilience. Fixed airport assets that
Angela Gittens, Director General, ACI World3 also have a direct bearing on passenger flows and
the customer experience, such as lifts and escalators,
Comments such as these reflect the importance can also benefit from the application of IoT solutions
of advanced data acquisition and interrogation to improve reliability and availability.
capabilities, especially in CAPEX-intensive sectors, in
enabling airports to move away from the traditional _Virtual modeling/simulation: the interest in
focus on siloed manual process enhancements virtual modeling and simulation technologies is
toward a new modus operandi. This is characterized aligned to the strong focus that airports have placed
by an enhanced ability to proactively respond to on optimizing passenger flows. These solutions can
operational realities and commercial opportunities, help airports more effectively anticipate the impact
and to deliver wider cost, revenue and customer of different managerial decisions and better allocate
experience benefits for the airport as a whole. human resources, especially at peak times. Since
airports are commercial entities and understand the
Other digital technologies that have been prioritized link between a passenger’s experience at security
by airports in recent years include Internet of and their propensity to spend at the airport, airports
Things (IoT), virtual modeling and simulation, and have a vested interest in using these technologies to
collaborative smart machines and robots. Between help them to effectively match passenger flows and
38% and 50% of survey respondents confirmed to airport resources. Such applications are not limited
to the airport terminal and can also help airports
3 ACI press release 26 September 2016 to improve flight management performance, for

12
example by foreseeing the impact of flight delays Pepper and Watson able to provide customers with
and making optimal use of runway capacity. clear and consistent information to facilitate their
journey through the airport. Clearly, an airport’s
_Collaborative smart machines and robots: appetite to supplement, augment, or replace labor
already deployed across many airports in pilot form, with machines and robots will be influenced by its
smart machines and robots are increasingly gaining cost of labor. Further, it is also affected by prevailing
traction as permanent additions to the physical attitudes to technological innovation and adoption
infrastructure of an airport. Check-in is a typical area among key airport stakeholders and passengers
for deployment, with robots such as Munich Airport’s themselves, so must be seen as context-specific.

Figure 4: Digital technologies already implemented

Digital technologies implemented to help reduce the total cost of operations

Cloud technology
Big data/advanced analytics
Internet of Things
Virtual modeling/simulation
Collaborative smart machines and...
Integrated ecosystems/mobile value...
Blockchain
Additive manufacturing/3D printing
Autonomous transport systems
Smart energy systems
Augmented reality
Cyber-physical systems/virtualized

0% 5% 10% 15% 20% 25%

% total responses

13
 Typical implementation challenges
However, what is also clear is that, in attempting to indicated that, as part of an emerging ‘spend to
realize their digital transformation plans, airports save’ mentality among the more digitally advanced
face a number of barriers to digital investment (see airports, they are prepared to spend more on digital
Figure 5). Although implementation cost is inevitably solutions. In other words, while these airports
an important factor, the results of the study highlight certainly require a clear investment case, qualitative
that the inhibitors to digital transformation are by no factors including the airport’s investment mind-set
means limited to ‘hard’ factors. Indeed, ‘soft’ issues and friction resulting from conflicting departmental
related to airport ecosystem culture, failure to satisfy priorities, were highlighted as the more typical
traditional Return On Investment (ROI) assessments sources of frustrated investment efforts.
and insufficient understanding of digital needs (or
concluding that there is not sufficient demand for Finally, while not directly related to airport size,
digital solutions) were more prominent barriers than ownership model and regulatory regime may also be
cost. The net impact is to either impede the full important factors when assessing cultural attitudes
realization of target benefits, or else mean that the to technology innovation and their ability to overcome
proposed digital technology solutions never receive related implementation challenges.
budgetary sign-off to get off the ground.
If there are differences in the barriers to digital
There would also appear to be a relationship technology investment, according to an airport’s
between an airport’s operational scale, and the operational scale, there is also some common ground.
kinds of implementation challenges that are For most airports, regardless of size, the sheer choice
typically encountered: of digital technologies available was consistently
flagged as an inhibitor of clear investment decision-
Smaller airports (i.e. with annual passenger volumes making. Nevertheless, this issue would still appear to
of around 10Mpax) often flagged limited financial be accentuated for smaller airports, due to their more
resources, uncertain ROI and the prohibitive cost limited financial resources and reduced ability to
of failed investments as reasons to pursue a more weather the costs of failed investments.
conservative digital agenda. At the same time,
the digital lever is still an important one for small Finally, on a more practical note, airports of all sizes
airports, since it can help to offset the need for costly stressed the difficulties that can be experienced
CAPEX investments that their balance sheets cannot when attempting to transplant digital concepts into
afford. Therefore for these airports, a very selective people’s day-to-day roles. Especially where airports
approach is often needed to maintain a compelling have developed well-established teams dominated
value-for-money offer that remains attractive by non-digital roles, one cannot assume that the
enough to airlines. in-situ analogic workforce will readily adapt to
digital ways of working that are neither trusted nor
By contrast, for so-called ‘mega hubs’ (i.e. more than familiar. While the technology may be ready, real-
50Mpax), up-front investment costs appear to be life experience suggests that the people-readiness
less of a brake on digital investment. Indeed, several challenge should not be underestimated.
of the largest airports that participated in the study

14
Figure 5: Prioritized barriers to digital investment

Prioritized barriers to investment in technology

3% 7%
Terminal infrastructure Airport technology strategy
design limitation not fully defined

20% 10%
Airport Change readiness: need to
ecosystem culture manage rate of change at
the airport

13%
Fear of obsolescence:
17% pace of technological
Failure to satisfy traditional change and lack of
ROI assessment criteria common industry standards
(i.e. implementation risk,
payback period)

13%
Implementation cost
17%
Insufficient understanding of
digital needs (airlines, handlers,
passengers), or insufficient demand

15
 4. Future outlook: the role of digital in driving
cost and efficiency benefits
If the focus in recent years has been on the solutions be applied to reduce the cost and enhance
development of advanced big data and analytics the efficiency of these processes in the future.
capabilities, then looking to the future, what is the
role that digital can play to help airports to reduce IT cost assessment
their total cost of operations and improve the
efficiency of core airport processes? Figure 6 provides a consolidated view of the typical
allocation of airport IT OPEX and CAPEX across the
To address this question, the study first considered prioritized airport business processes. While the
the relative IT cost and efficiency of eight core actual sums invested can be significant across all
airport business processes, ranging from resource of these processes, it is perhaps not surprising to
management and baggage reconciliation to FIDS see that flight management, resource management,
and business systems (see Figure 6). Following this, CUTE/CUPPS and business systems are typically the
airports and other industry experts were consulted to major drivers of airport IT cost as a percentage of
provide specific insights into how they expect digital total IT expenditure.

Figure 6: Typical IT spend across core business processes (percentage of total IT budget)

Core airport business processes

Flight management IT OPEX software licencing

and maintenance costs
including software upgrades
Resource management and change requests. Also
including any external data
ACDM acquisition (e.g. real-time
flight data)
CUTE/CUPPS
IT OPEX manpower costs
Baggage reconciliation (i.e. to support business
processes)
FIDS
IT CAPEX infrastructure
costs (i.e. hardware,
Passenger flows
servers, cabling, racks,
cost of space for servers,
Business systems required networks)

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Percentage total IT spend

16
Nevertheless, there are some key points to highlight: issue in countries with access to cheap labor, in high
cost locations the need to maintain a multitude of
_High cost processes not necessarily targeted airline-specific applications and network connections
by airport digital strategy. In discussions with at a single kiosk exposes the airport to incremental
leading airports, they were quick to differentiate cost and can be very expensive over time.
between mission critical ‘must have’ expenditure, and
other expenditure. In the case of flight and resource _ACDM regarded as a major opportunity for
management, airport executives consistently saw digital transformation. Although ACDM spend is
these costs as an unavoidable part of day-to-day not the biggest IT cost item today, most of the
airport operations, and therefore not a major focus of airports interviewed expected expenditure on ACDM
the airport’s digital strategy. In our experience, digital to increase in the future because of the broad
applications to date have tended to focus on process benefits that improved coordination can bring for
automation and passenger flow enhancement, not the wider airport ecosystem. For example, one major
reduction of headline IT costs. This is consistent with German airport highlighted its implementation of
airports that are on the journey from Airport 2.0 to an ACDM solution to optimize aircraft movements,
Airport 3.0 thereby reducing average taxi distance, on-ground
congestion and resulting delays.
_CUTE/CUPPS inefficiencies consistently
highlighted: perhaps reflected by the relatively high _Passenger flows remain a key focus area
proportion of IT spend that is consumed by CUTE/ for all airports. Even though passenger flows are
CUPPS applications, maintenance and hardware, not the biggest cost line item in airport IT budgets,
airports see significant scope to reduce the cost of as borne out by the feedback from the airports
existing check-in systems and processes. To cite a surveyed, optimization of passenger flows is essential
practical example, a common challenge facing many for operational and commercial reasons. It should
airports is the need to cater to a variety of different also be noted that a key part of passenger flow
airline needs with regard to check-in facilities and optimization is associated spend on security systems.
solutions. This means that, while the airport may This spend is not included in the passenger-flow data,
see value in transitioning to common use platforms however was highlighted as a major cost item by
and interfaces, in reality the benefits of common use nearly all of the airports that took part in the study.
cannot be realized in full as long as some airlines are
not ready to migrate and continue to insist on airline- _Relationship between IT cost and asset
specific platforms. Although this may be less of an lifecycle. Finally, while these findings are
informative, care should be taken not to draw
premature conclusions on the relationship between
“There is an ongoing need for airports airport business processes and typical levels of IT
to provide lowest common denominator expenditure. For example, the level of spend on
solutions [to airlines], meaning that airports CAPEX-heavy processes such as FIDS and baggage
systems is highly dependent on the age and condition
must still provide check-in kiosks. That
of the existing installation. There will naturally be
means that the cost does not go away.”
some variation on IT OPEX and CAPEX costs across
Executive, leading provider of air traffic these business processes, with some airports
management services enjoying a lower cost.

17
 Cost and efficiency assessment inefficiency and potential to apply digital solutions,
the fact remains that incremental efficiency gains
Complementing this view of IT process cost, in these areas have the potential to deliver material
participating airports were invited to highlight those savings, if implemented and sustained.
business processes that they felt were ripest for the
application of digital technology solutions based on _Process cluster 2: medium spend, medium
their perceived efficiency. These cost and efficiency inefficiency. Passenger flows, FIDS and baggage
dimensions were then combined (see Figure 7) to reconciliation are highlighted as having moderate
provide an indicative view of potential focus areas IT spend and moderate process efficiency. Although
for digital transformation in the future. the passenger-flow process spend is on the lower
side, it is included in this cluster because of the
While the attractiveness of digital technologies to significant security-related costs that airports have
airports is highly context-dependent, at a high level flagged not reflected in the passenger-flow spend
this analysis outlines three process clusters: data. This cluster indicates that, while some progress
has been made, efforts to improve the efficiency of
_Process cluster 1: higher spend, higher passenger flows and baggage reconciliation should
inefficiency. Resource management, flight remain a focus going forward, not least because of
management and CUTE/CUPPS were highlighted the potential to deliver benefits for the customer
by participating airports as being the core airport experience. It should be stressed that perceptions of
processes that typically consume the greatest FIDS efficiency can vary significantly from one airport
share of IT budget, and are seen as being relatively to the next. This reflects both differences in the
inefficient. Although there is not necessarily a direct age of existing FIDS installations and also airports’
relationship between high IT spend, high process different aspirations in terms of the value they

Figure 7: Relationship between total IT spend and relative process efficiency

Total IT spend and process efficiency

8 Business systems
7 3 ACDM
6
Rank, process efficiency

Baggage reconciliation
5
2 FIDS
4 Passenger flows

3 Flight management
2 1
CUTE/CUPPS
1 Resource management

0 1 2 3 4 5 6 7 8

Rank, total IT spend

18
are trying to extract from their FIDS investments. Technology assessment
In other words, while for one airport the need to
maintain an existing legacy FIDS set up, focused The result of the cost-efficiency analysis provides an
solely on the provision of flight information would not indication of where the greatest opportunities for
be a cause for concern, more avant-garde airports digitally driven airport business process optimization
might view this approach as rather inefficient, could lie in the future (see Figure 8). Following this,
because they are aware of the potential to realize a next step was to establish the relative priority of
far broader benefits from FIDS as part of a multi- a range of digital technologies in helping airports
channel marketing tool. address these opportunities.

_Process cluster 3: ACDM. Finally, we have Again, the results can be clustered to provide an
singled out ACDM as being worthy of a separate indication of which technologies airports are likely
cluster in its own right. Although the ACDM does to focus on in the future:
stand out relative to the other airport processes,
based on the cost and efficiency results alone, there _Technology cluster 1: core enabling
are other reasons for treating ACDM as a special technologies. As demonstrated, big data, advanced
case. As will be demonstrated later in this paper, analytics and cloud technology have played a central
many airports consider ACDM to be a major driver role in the transition from Airport 2.0 to Airport 3.0
of cross-airport benefits in the future, therefore and will continue to be a major focal point for airport
perceptions of relative cost and efficiency should not digital strategies. This also reflects the fact that the
be interpreted in the same way as for other airport application of big data and cloud technologies is not
business processes. Further, while IT expenditure on process-specific but can bring value across a wide
ACDM is currently rated as being relatively low, we range of airport business processes.
would certainly expect this to increase in the future
given ACDM’s enabler status and role in facilitating _Technology cluster 2: process automation
broader, airport-wide benefits. and integration. Four digital technologies stood
out as being central to the ongoing efforts of
Regarding business systems, while some airports airports to enhance the efficiency and effectiveness
reported relatively low levels of expenditure on of their operations. These include technologies
back office systems related to billing, invoicing, geared toward increasing the automation of core
analytics and reporting, the results also reflected airport processes, the introduction of solutions
significant variation from one airport to the next. based on integrated ecosystems, mobile value-add
The insight here is that, linked to historical decisions and Internet of Things technologies to continue to
on make/buy, airports maintain back office systems break down organizational barriers and improve
and processes in a variety of states with some data sharing, including across human-human and
much further down the road toward back office human-machine interfaces. Smart energy systems,
consolidation than others. while not a top priority up to now, were consistently
flagged as an area in which airports see potential
to do more. Overall, the high priority attributed to
these technologies reflects the ongoing need for all
airports to optimize the use of their existing landside
and airside capacity.

19
 _Technology cluster 3: fringe technologies. Application of digital technologies
These technologies, including autonomous transport to airport business processes
systems and augmented reality, received lower
priority rankings. While these technologies may Considering the cost, efficiency and technology
be important to some airports including the most assessment findings, the eight core business
mature global hubs, based on the representative processes were then examined in turn, according
cross-section of airports engaged with, we can to the process clusters in which they sit. For each
expect investment in other digital technologies to process cluster, the objective was to identify specific
take priority in many cases. This also reflects the fact digital technologies that we can expect to be applied
that for some technologies (notably, blockchain), the in future.
opportunities for airport-specific applications are still
at an early exploratory stage.

Figure 8: Priority future digital technologies for airports

Technologies with the greatest potential to deliver cost and efficiency

gains at airports

Big data/advanced analytics 3.8

Cloud technology 2.5
Internet of Things 2.1
Collaborative smart machines 1.0
and robots
Integrated ecosystems/ 0.8
mobile value add
Augmented reality 0.8
Smart energy systems 0.6
Blockchain 0.6
Autonomous transport systems 0.5

0 1.0 2.0 3.0 4.0 5.0

Score

20
Cluster one: higher IT cost, The two other airport business processes highlighted
higher inefficiency as costly and inefficient were check-in and
flight management:
Focused specifically on the allocation and
management of fixed and mobile assets, including _Check-in (CUTE/CUPPS): while the arrival of self-
lifts, escalators and airside mobile assets, many service kiosks has introduced greater automation
airports highlighted resource management for its at the point of check-in, this nevertheless remains
high cost and relative inefficiency. This included more one of the processes where airports believe there is
digitally advanced airports that had already made the greatest opportunity to drive further efficiency
progress in optimizing their resource management savings. Many airports still host fixed check-in
activities, but nonetheless felt that further step- terminals at the check-in area; further, the diverse
change improvements could be achieved. The drivers range of airline needs has resulted in a plethora of
of cost and inefficiency include: airline-specific applications, which typically require
their own secure data feeds.
_The sheer scale and diversity of the asset base
_The absence of complete management information “Nobody likes to do check-in, it is an
_The operational strain that the resources are under administrative task. We want to make
it seamless and easy.”
These pressures mean that it can be difficult to apply
Chris Au Young, General Manager of Smart Airport
a coordinated approach to resource allocation. Further, at Airport Authority Hong Kong
since the costs of non-availability are so high (e.g.
mobile stairs not being ready to meet an aircraft Faced with such engrained complexity, cloud
resulting in delayed disembarkation and turn-around, technology offers the potential to remove, or at
plus possibly missed flight connections), the result least reduce, the need for costly hardware at airport
is that traditional resource allocation methods have premises with resulting benefits for IT manpower and
tended to build redundancy into the allocation plan. hardware costs.
Without a complete view of asset location and status,
the result can be a system in which assets are not Nevertheless, it should not be assumed that these
fully utilized, and where there is a cultural reliance on kinds of developments will lead to the wholesale
manual interventions by people to make sure that the elimination of check-in counters at the airport.
(underutilized) resources are allocated to the required One airport executive stressed the significance of
location, often on a ‘just in time’ basis. airlines’ varying requirements, and contrasting
levels of readiness to move away from incumbent
Faced with these inefficiencies, it is clear that Airport CUTE/CUPPS solutions. This does not stop airports
4.0 technologies such as big data and advanced from offering alternative solutions with a lighter IT
analytics, Internet of Things and augmented footprint. However, it may mean that it takes longer
reality can all play a role in helping airports deploy to realize envisaged cost and throughput benefits.
assets in a more efficient manner, as part of a ‘total In addition, passenger readiness to adopt digital
airport management’ solution. Where an airport has solutions such as iCUSS 4 varies from one passenger
a dominant home carrier, there can also be potential group to the next; therefore, while some passengers
for the carrier to form a collaborative partnership may readily adopt digital solutions, others will place
with the airport, so that both parties achieve a far higher value on face-to-face ‘moments of truth’,
better understanding of resource allocation needs
and can work toward a transparent resource allocation 4 iCUSS check-in kiosks deployed at Hong Kong International Airport are
portable devices that, thanks to wireless Amadeus ACUS technology, can
model that meets these needs in an efficient and
be rapidly deployed and relocated for use by the travelers to check in
effective manner. themselves or with the help of airport staff.

21
 leading to airports needing to maintain multiple
service delivery channels, with implications for cost
and complexity of operations.

To help address the challenges posed _Flight management: another strong candidate
by capacity constraints and deliver a for digital transformation based on airport feedback,
faster, easier and happier experience for airports are already targeting flight management
its passengers, Hong Kong International with digital solutions. For example:
Airport is challenging conventional
thinking related to airport check-in. One rapidly growing tier-two Chinese airport
with more than 30Mpax is using a big data and
Working closely with airlines, passengers
advanced analytics solution to enhance its flight
and other business partners, the airport
management activities. Using a united open data
has deployed an innovative Common platform, the airport is able to share a diverse range
Use Self Service check-in solution called of data sets, including information on flight status,
iCUSS. Built around the concept of a fully connecting bus services and traffic congestion, with
mobile check-in terminal, the solution multiple airport stakeholders. The ability to more
will deliver greater convenience for effectively share information across interfaces results
in improved operational decision-making, with a
passengers by enabling them to check
positive knock-on effect for the customer experience.
in remotely, from a variety of locations.
This avoids the need to use an in-airport Flight management extends to the effective
or fixed check-in counter. Furthermore, observation and maintenance of mission-critical
the solution enables the airport to deliver airport infrastructure, including the runway. For
direct, cloud-based data connections example, one leading Asian hub airport is using
to airlines, meaning that airline- high-density imaging technology to enhance
specific check-in applications can be foreign-object detection (FOD) on runways that
left undetected can lead to flight disruption.
downloaded to the airport in real-time,
and the cost of maintaining legacy,
Cluster two: medium IT cost,
airline-specific data feeds is greatly
medium inefficiency
reduced. By removing the need to check
in at fixed counters inside the terminal, For those airports in transition from Airport 2.0 to
the airport is positioning itself to better Airport 3.0, passenger-flow optimization remains
manage passenger flows (especially at a priority. These airports may include slot-constrained
mega-hubs, but also other airports, due to the need
peak times) and deliver an improved
to optimize passenger flows through limited landside
passenger experience.
infrastructure, and drive incremental airport retail
spend. As exemplified by the technologies that
are showcased in Changi Airport’s new Terminal

22
Four, biometrics are likely to play an increasing Beyond passenger flows, digital solutions are
role in enhancing the efficiency and security of also finding practical applications in the areas of
passenger processing. Although biometrics is not a boarding, baggage reconciliation and FIDS:
new technology, it is the emergence of integrated
end-to-end biometric authentication solutions that _Boarding: the ability of digital technology to
encompass automated check-in and bag-drop, enhance process efficiency is by no means limited
security, immigration and boarding that is different to landside applications. As demonstrated by the
and that has potential to deliver step-change recent implementation of a complete end-to-end
operational and financial performance for airports e-boarding solution at a major Indian airport, digital
and their users. The passenger also stands to benefit technology can also be used to optimize the airport-
from reduced waiting time and a more seamless aircraft interface. In this specific example, the airport
process. Amadeus’ work with VisionBox and Idemia applied e-gate and digital barcode technology
on biometric solutions, plus Gemalto’s Fly-to-Gate to deliver a fully automated boarding experience. The
solution are examples of the kinds of integrated elimination of paper and reduced manual interface
solutions that are already coming to market. offers passengers a more convenient and consistent
customer experience. The move to an automated
That said, biometric-based solutions are not the solution also enhances security, by eliminating the
only lever available to enhance passenger flows. For chance of human error. Through enhanced access
other airports, who are not yet ready to embark on a to passenger data, the airport has also been better
full-scale biometric implementation, mobile devices able to coordinate its resource management plans.
and integrated ecosystems are perhaps a more The improved use of passenger data also provides a
practical way to optimize passenger flows, while commercial benefit: for example, the airport is able
at the same time bringing a more ‘personalized’ to monitor passenger dwell times and optimize its
service to the passenger. As the below case example marketing strategies to drive the performance of
demonstrates, the availability of commercial off-the- the airport’s retail offering.
shelf applications means that airports do not always
need to develop airport-specific apps to enable _Baggage reconciliation: consistently
real-time monitoring. highlighted as one of the processes most in need
of improvement due to its impact on customer
Digital wayfinding and i-beacon technology satisfaction and cost, baggage is the subject of
is now also enjoying widespread adoption. This industry-level initiatives. IATA Resolution 753
includes major slot-constrained European airports requires airlines to maintain an accurate baggage
with a strong LCC presence, where passenger-flow inventory and to create a strict ‘chain of custody’
enhancement and “AI-powered indoor navigation” is for baggage along the customer journey. Although
essential to delivering a ‘quick turn-around’ business not specifically mandated by 753, emerging digital
model. Equally, AR-based indoor navigation technologies may find mainstream applications
technology has also been adopted by rapidly in core business processes like baggage in the
growing airports in second tier Chinese cities where future. While the long-term applicability of these
effective flow management is critical in enabling technologies remains to be proven, existing baggage
these airports to cope with the strong year-on-year reconciliation solutions continue to offer airports
growth in passenger volumes. and airlines a tried and tested way of pinpointing
baggage throughout its journey, helping to limit

23
 compensation payouts and associated processing
costs. At a more practical level, airports are
already using other more established technologies,
specifically mobile apps, to ease passengers’
anxiety while waiting for bags to arrive. For
example, a major Asian hub airport has introduced
a mobile app that provides the passenger with
a message to notify them of when their bag will
be delivered. We should expect this incremental
One medium-sized European airport process innovation to be complemented by the
has recently implemented the FLOW increasing role of smart machines and robots
app to enhance passenger flows, at the point of baggage acceptance, not just
while also gaining better access to to be limited to the behind-the-scenes baggage
passengers data that can be used to system itself.

support a more targeted e-commerce

_FIDS: the amount that airports spend on FIDS
offering. Already in use at over 1000
depends on a number of factors, including the age
airports, FLOW means that these of the existing FIDS infrastructure. Looking to the
benefits are accessible, without the future, potential exists for digital technology to at
need to commit to costly airport- least reduce the criticality of FIDS (and therefore
specific app development. In addition, associated OPEX/CAPEX), but also increase the
the airport is one of several airports value-add that FIDS delivers to airports, airlines
and passengers. The mass adoption of mobile
to capitalize on the strong take up of
devices, combined with strategic investments
Facebook’s Messenger service, choosing
in digital wayfinding technology such as
to use this established platform as the i-Beacons, can reduce dependence on physical
basis for its Messenger bot app that FIDS infrastructure. Although uptake varies by
delivers automated communication demographic, personalized FIDS is already delivering
with passengers. real-time flight status updates to passenger mobile
devices, helping airports optimize dwell time in
commercial areas. The second trend is the shift
toward multi-purpose displays that not only fulfil
their original role of flight information provision,
but further reinforce the airport’s retail offering.
By leveraging existing FIDS infrastructure as an
additional means to drive the in-airport retail
offer, airports can achieve incremental revenue
growth for only a moderate investment in existing
infrastructure. This would see the role of FIDS
change from flight information provider, to multi-
faceted marketing tool.

24
Other processes: business systems

While the variability between one airport and

the next has already been stressed, back office
systems and processes related to billing, invoicing,
analytics and reporting can represent a major source
of IT expenditure for airports. It is not uncommon
for these systems to have been developed gradually
over the years, which may result in multiple
legacy systems, and system architectures that
are unnecessarily complex with implications for
ease of use and overall cost. Digital technologies
that can help airports enhance the efficiency of
back office processes and systems include robotic
process automation (RPA). By mimicking the role
that humans traditionally play in highly repetitive
administrative tasks (e.g. handling of data between
different airport systems), RPA has the potential
to increase the consistency of administrative
decision-making and reduce cost by enabling staff
to be reduced or reallocated to more value-adding
activities. As the application of RPA matures, there
is also the potential to integrate RPA solutions with
big data and artificial intelligence systems to further
reinforce an ACDM-centric approach to technology
deployment. The flexibility and scalability of RPA
makes it especially suitable for deployment in airport
back office environments5.

5 E Tech, 25 September 2017

25
 5. Outlook: Toward the digital airport
of the future

The future of airport IT expenditure Similarly, the introduction of generic customer-facing

platforms for check-in can be expected to help
Given that these are some of the most promising airports to reign in the cost of maintaining
opportunities to apply digital technology, what is the multiple different, airline-specific applications and
expected direction of airport IT expenditure in the network connections.
digitally enabled airport of tomorrow?
However, the assumption that digital transformation
One could be forgiven for assuming that as airports will reduce airport IT expenditure would appear to be
become more digitally mature and continue on their premature. In our interviews with the leading airports
journey toward Airport 3.0 and beyond, a key benefit that took part in this study, the clear majority did not
is the ability to realize efficiencies in terms of total IT associate digital transformation with a corresponding
spend. In some regards, this is a logical conclusion: reduction in airport IT spend. On the contrary, the
cloud technology, for instance, offers the possibility consensus was that in order to realize cost, revenue
to replace (or at least reduce the number of) CAPEX- and customer experience benefits for the wider
heavy on-site servers and data storage facilities, airport ecosystem, airports must expect to spend
with more cost-effective, cloud-based solutions. more, not less, on enabling IT solutions.

26
“We get healthy pushback from the Board sums involved are not small. As airports become
on the fact that our IT budget is growing. more digitally mature, they see the value of their
This is good corporate governance and investments in big data and analytics and therefore
opt to invest more to create a virtuous cycle of IT
doesn’t mean they object to us spending
investment. Of course, over time the airport will hope
more on digital initiatives.”
to recoup its investments in the form of cost, revenue
Senior Manager, European Mega Hub and customer experience benefits for the wider
airport. Nevertheless, from a pure IT expenditure
By considering big data and analytics as an example, perspective, we can expect that as airports advance
we can better understand this expected future trend. their digital transformation agenda, this will go hand
To reap the benefits of real-time decision-making in hand with a sustained upward trajectory for
capabilities, airports must invest in big data and IT spend.
analytics solutions and capabilities. This is not a one-
off investment and requires sustained investment
over many years as there is often a degree of
‘catch up’ required, meaning that the investment

“The amount we spend on IT is definitely

going to go up. I would not be surprised
to see it double – but we expect to
recoup that investment in other areas.”
Airport Executive, European Airport.

27
 The transformative role of ACDM

In the context of growing IT expenditure, the To achieve this, airports and their business partners
ability of airports to deliver against their digital need access to consistent, reliable data, available
transformation strategies will increasingly depend on in real-time, in which the shared data sets are
their ability to form and embed collaborative working supported by a common set of definitions. The
relationships with the many other stakeholders that benefits presented by ACDM include avoidance and
make up the airport ecosystem. In this regard, ACDM reduction of delay-related costs and the gradual
can be singled out as having a special role to play reduction of operational slack, thereby enhancing
in enabling airports to complete the transition from the airport’s total operating efficiency. One major
Airport 2.0 to 3.0 and beyond. Asian airport group that took part in the study
implemented an ACDM solution in 2016 based
Almost without exception, participating airports in on web technologies and handheld devices.
this study agreed that by making it easier for the While the airport benefited from reduced noise and
multiple parties in the airport ecosystem to emissions, improved punctuality and optimized gate/
work together and reach better decisions, ACDM is stand planning and management, similar benefits
a major opportunity to optimize the efficiency of were passed on to airlines and ground handlers. For
airport operations and reduce the total cost of example, airlines benefited from reduced taxi times
airport operations. As one study participant put it: and improved On Time Performance and ground
handlers have been able to more effectively allocate
“ACDM gives an airport a common resources with resulting benefits for productivity
understanding, with the goal being and customer satisfaction.
complete situational awareness,
in a way that other solutions cannot.”
Independent Airport Technology Expert

28
29
 6. Conclusion: critical success factors
for effective digital transformation
and holistic value creation
Through interactions with the wide range of airports assets, especially by enhancing passenger flows and
that have taken part in this study, it is clear that reinforcing the On-Time Performance (OTP) that is so
digital technology has a major role to play in the important for airlines and passengers.
airports of the future – in many cases the change is
unavoidable and should be welcomed. However, what is also clear is that in order to reap
the full benefits of these new technologies in the
As passenger volumes continue to grow future, airports are not at the end of the road,
exponentially, and the needs and expectations of and must continue to evolve on a daily basis. In
passengers and airlines become even more diverse, conclusion, this paper identifies four strategic
airports can no longer satisfy these expectations imperatives for airports to consider, as they continue
using traditional approaches. Faced with the prospect on their journey from Airport 2.0 to Airport 3.0,
of capital-intensive expansion projects that take and achieve a new digital norm, in which the focus
years to deliver, digital technologies can, at the moves beyond tactical cost reduction or operational
very least be used in a tactical way to help airports enhancement, toward the holistic enhancement of
extract the maximum value from their existing airport value propositions.

Figure 9: Strategic imperatives for airport digital transformation

4 Resources
and capability
Strategic clarity
1

3 Mindset
and culture
Partnering and
collaboration 2
30
_Strategic clarity: in the context of a rapidly Nevertheless, even if implementation costs become
evolving digital landscape, the importance of less of a barrier, inter-airport collaboration, whether
establishing and maintaining a clear yet concise part of a formal partnership or not, is likely to play
digital strategy, closely aligned to the airport’s overall an important role. By embracing such collaboration,
strategic priorities, should not be underestimated. partnering can accelerate the process of learning
This need for strategic clarity has both an internal about new technologies, identify process-specific
and external dimension. Internally, airports applications for the technologies, and better
regardless of size have limited resources so must manage implementation risks and costs. Such
overcome organizational siloes and channel these partnering is not limited to airports, and may see the
resources to a clearly defined set of digital priorities. continued development of hub airport-based carrier
This includes the effective channeling of ‘digital relationships, to work toward mutually beneficial
demand’ (i.e. ideas, requests) that may emanate digital objectives.
from a variety of stakeholders to achieve a coherent
overall approach. It must also be based on a very _Mindsets and culture: critical to the ability of
clear view of who the ultimate target of an airport’s airports to continue their digital journey is the ability
digital strategy actually is: airlines or passengers? to identify, prioritize and implement those digital
From an external standpoint, airports must recognize solutions that are most relevant to its particular
the inherent ambiguity in the digital landscape and context. In this light, airports may need to challenge
put in place the required capabilities and structures existing ‘non-digital’ mindsets and potentially rigid
to manage this. Visible leadership support for the decision-making processes that may not be well
digital transformation agenda is essential if these suited to reaching decisions in a more dynamic
internal and external dimensions are to be manner that better reflects digital opportunities.
addressed and buy-in to the change journey Clearly, financial returns remain critical and airports
created and sustained. should not turn their back on proven ROI-based
principles. Equally, as an airport’s digital capability
_Partnering and collaboration: as has been grows, so decision-makers should seek to embrace
stressed throughout this paper, airports do not a broader concept of value that can deliver financial,
exist in isolation but within complex, multi-party operational, and customer experience benefits for the
environments in which digital maturity is driven entire ecosystem. The development of trust between
by the entire ecosystem. Therefore, their ability the key airport stakeholder groups is an essential
to forge collaborative (or at least, cooperative) step to move from department-driven initiatives to
relationships across multiple interfaces is likely to a more holistic approach to digital transformation.
be vital in charting an effective course from 2.0 to
3.0 and beyond. Ongoing commoditization of digital
technologies may facilitate the ‘trickle down’ of
proven solutions from leading airports to airports
that are less advanced in terms of digital adoption.

31
 _Resources and capability: finally, airports need quadrants. For example, airports that invest heavily
to consider the resources and capabilities that they in the required skills and capabilities but do not
possess today and how these must evolve in order address issues related to organizational culture are
to meet the digital requirements of tomorrow. While unlikely to reap the full benefit of these investments.
sourcing strategy will vary from one airport to the Equally, a focus on partnering and collaboration is
next, for a variety of reasons, airports are likely to unlikely to be rewarded if an airport’s digital strategy
require at least a minimum understanding of the key is unclear or not clearly aligned to the airport’s
digital technologies and should plan to develop their overall strategic objectives.
own internal capabilities in parallel to partnering
with external service providers. For existing airport Digital technology presents airports and their users
employees, many of whom will be used to working in with a wealth of new opportunities. As demonstrated
analogue-centric environments, this means clearly in this paper, these opportunities extend beyond a
articulating how digital can bring value to daily focus on cost reduction and can also deliver step-
roles by focusing on solutions that are simple and change benefits for revenue generation, operational
usable and can build trust. Business and operational performance, and the customer experience. To deliver
readiness for change must be accompanied by and sustain these benefits, airports must develop the
the required skills and capabilities to make the culture and capabilities to anticipate future digital
transformation a success. technologies, innovate so that the technologies
find tangible applications that are relevant to the
The findings from this study indicate not only that specific airport, and invest in the capabilities and
the four areas highlighted above are mutually partnerships that will be needed to deliver sustained
reinforcing, but also that to deliver sustainable digital transformation.
digital transformation, strength is required in all four

32
INTERIOR
PORTADA

33
Arthur D. Little would like to thank the
industry experts from the following
organizations for their contribution
to this report:
Aéroports de Paris
London Gatwick Airport
Schiphol Amsterdam Airport
Narita International Airport
Vienna International Airport
Munich Airport
Athens International Airport
Aéroport de Lyon-Saint Exupéry
Aéroport Toulouse-Blagnac
Aéroport Marseille Provence
Václav Havel Airport Prague
Hong Kong International Airport
GMR Airports Ltd
NATS

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Authors

Russell Pell, Mathieu Blondel