The Henry Stewart Briefing
Airport Related Property

 

Chair

Angus McIntosh
Partner & Head of Research
King Sturge LLP

Speakers

René Buck
President
Buck Consultants International

Karl Cradick
Planning Director
Savills

Mark Entwistle
Executive Partner
ARC, Airport Retail Consultants

Peter Forbes
Director
Alan Stratford and Associates Ltd

Peter Holden
Director
Hines Air Property

Russell Kett
Managing Director
HVS International

Ian Lowden
Vice President
SH&E

Nigel Mason
Partner
York Aviation LLP

Richard Tollis
Partner
Ernst & Young

Annette Smith
Principal Transport Planner
JMP Consulting

Paul Smith
Associate
JMP Consulting

Philip Tidd
Director, Europe
DEGW

Bob Thompson
Managing Director
RETRI Group

 

THE FACTORS - WHAT IS CHANGING, WHERE IS IT HAPPENING AND WITH WHAT CONSEQUENCES

Passenger Numbers and Freight Volumes: Profiles and Types
• Trends in passenger traffic
• Trends in freight traffic
• Segmentation of the passenger and freight markets
• The changing airline environment
• Likely evolution of passenger and freight markets

Transport Infrastructure Developments
Context
• Traditionally majority used car to travel to airport
• Parking was accommodated close to terminal
• As demand increased so the requirement for ‘satellite’ parking occurred
• Park & Ride emerged to serve ‘satellite’ parking
What is changing?
• Massive growth in air travel in recent years
• The impact of the motor car on both highway infrastructure and parking and space requirements has become unsustainable
• Congestion on routes to airports has led to sustainable transport infrastructure projects
• Carrot/stick approach to travel demand
‘Carrots’:
• New infrastructure projects:
- Heathrow Express
- Heathrow Connect
• Bus priority measures:
- Doncaster ‘Robin Hood’ Quality Bus Corridor
• Employee ‘travel plans’
• Emphasise the poor effectiveness of ‘low-cost’ solution in the past
‘Sticks’:
• Parking restraint/control as a transport tool
• Cost of short/medium duration parking more expensive than public transport
• Employee parking restrictions (problems of shift working)
Until airport is of sufficient size difficult to justify significant costs of infrastructure provision

Airport Development Under the New Planning Regime – An Update on the Implications of the Planning and Compulsory Purchase Act 2004 for Airport-Related Development
• Relevant provisions of the Planning and Compulsory Purchase Act 2004
• Progress on implementation
• Understanding the ‘new style’ planning policy statements
• Effective engagement with the new development plan system
• Importance of the regional dimension
• Integration of airport master plans in local development frameworks
• The community angle

SO, WHAT IS TO BE DONE; WHERE AND WHY?

Hotels: Land and Airside
• Recent trends in airport hotel development and performance
• Landside vs. airside
• Case studies: Arora Hotels, Yotel
• Critical success factors for airport hotels

Industrial: Who and where are the markets?
• The industrial product
- distribution warehousing
- general industrials
• Air Freight
- typology
- spatial characteristics
• Drivers of change
- policy
- economic factors
- social & demographic factors
- technology
• The geography of consumption
- manufacturing
- domestic consumption
• Distribution changes
- structure
- markets
- optimisation
• Scenarios for the next decade
- implications
- market opportunities

Offices
Micro level
• How is the airport being used by increasingly mobile and nomadic workers
• The airport ‘workplace’ as part of a ‘distributed workplace’ strategy
• Trends and how the ‘Office’ is evolving with the pervasive use of mobile technologies
• Case studies – examples from Europe
Macro level
• The ‘Airport City’ concept (example Amsterdam Schiphol)
• How the Netherlands strategic development planning extends the ‘airport reach’ and creates ‘airport locations’ in offices and logistics
• Case studies – examples from Europe

Generating Revenue through Retail and Commercial Performance in Airport Terminals
• The current airport experience for passengers
• Improving the airport experience, identifying key passenger segments and their demands
• Maximizing the commercial revenue per passenger and rental levels
• Implementing and developing these commercial plans
• Branding an airport and making it stand out as an enjoyable experience

Parking
The effect of the sustainable transport agenda on the requirement for airport parking
• On airport
• Off airport long term (Park and Ride)
• Predicted ‘Modal shift’ resulting from new infrastructure
• Airports without good public transport links still require significant parking provision
VMS (Variable Message Signage)
• Getting customers to spaces quickly (important issue in time sensitive air travel)
• Maximises capacity of car park (cars are directed to both car park and specific space)

The Airports Themselves
• How much is the entire airport worth?
• Who are buyers?
• Who funds?
• What is the size of the market?

UNDERSTANDING THE OPPORTUNITIES AND THREATS ASSOCIATED WITH THE MACRO TRENDS

The Changing Role of Airports in Cargo Supply Chains
• How are companies and third party logistic service providers reorganising their European supply chains?
• What is the role of airports in the new economy?
• Why is logistics real estate a winning property class in Europe?
• What are the new cargo developments an airport can benefit from: important data on what is happening in the Netherlands, Belgium and the United Kingdom?

The Commercial Rise of Central and Eastern Europe
• How the airport market is evolving in the CEE zone
• Parallels with airport development in the wider EMEA zone
• What are the opportunities and threats?
• Impact of market liberalisation and Low Cost Carriers
• Prognosis

The Growth of Long Distance Freight
• What happened to the UK’s export market?
• Imports from China and other freight corridors
• Getting freight to Heathrow without using the airport
• The effect and calculation of fuel surcharges
• Airfreight security implications

The 24/7 Airports and Dedicated Freight Airports
• UK and European freight airports and hubs
• Airfreight versus seafreight
• Point to point routes
• Freighters, bellyhold and the New Generation Larger Aircraft

The Regeneration Effect
• Supporting employment growth – is more still best?
• Connectivity – the key to regeneration
• Stimulating competitiveness and business development
• Attracting inbound visitors
• Social and economic regeneration

Future Airport Development in the UK and Mainland Europe
• Airport infrastructure development in the UK following the Government White Paper on the Future of Air Transport
• European airport development in the context of a changing airline market environment
• Opportunities for specialist low-cost and freight hubs
• Implications for the future development of commercial property at and around UK and European airports