360° Approach

Since the early stage of airport transactions, we learned the necessity that all parts of a bid has to interwoven in one linked model to be successful.

Three essential feasibilities

An airport is a system of interdependencies. Airport facilities need to respond to traffic trends while remaining financially viable.
Through the unique pairing of technical and commercial expertise, we offer our clients a holistic 360° approach to airport development.Our experts collaborate with an extended network of partners and consultants to cover all aspects of airport feasibilities from market assessment and traffic forecasting (market feasibility), through master planning and facilities design (technical feasibility) to business planning (financial feasibility).

Market feasibility

A sound understanding of the market is key to a successful airport development project. The results of a market survey can propel a project or rein in expectations. An in-depth market assessment informs the airport development strategy in terms of scale and direction of growth. As part of our strategic services, we advise on pro-active airline marketing as well as non-aeronautical revenue streams. Market trends and strategic goals are in turn reflected in the traffic forecast. Our traffic forecast methodology is threefold: we analyze GDP projections, add short-term traffic projections received from airline plans and factor in secondary planning parameters.

• Market Assessment
  macroeconomics, competition, airlines, tourism, catchment area, demand…
• Strategy Development
  vision, positioning, strategic success factors, outsourcing, initiatives, scenarios…
• Traffic Forecast
  passengers, movements, cargo, routes, aircraft types, peak hours…

Technical feasibility

The basis for an airport project is a master plan which covers the airside and landside infrastructure. During the master planning process, we are guided by the ultimate vision and built up to it in consecutive development phases. From there, we proceed to the design of the terminal building and other airport facilities.
The dimensions of the terminal and the related airside system are determined by capacity calculations performed in adherence to IATA and ICAO guidelines. The costs of all measures foreseen in an airport development project are listed in a capital expenditure program.We strive to advance CAPEX spreadsheets hand in hand with the development of the project to keep track of the costs and react to the clients’ concerns.

• Capacity Plan
  service levels, phasing, bottlenecks, quantities, pax flows, dimensioning…
• Technical Concept
  master plan, functional design, terminal layout, landside development…
• Capital Expenditure
  construction costs, refurbishments, maintenance, equipment…

Financial feasibility

A robust business case is supported by a bullet-proof business plan, which is developed to prove the financial feasibility of the project. The business plan takes into consideration the identified revenue streams of the previously conducted market analysis and all operating expenses needed to sustain healthy and viable airport operations and thus resulting in a detailed and bankable document including a Balance Sheet, Profit and Loss- as well as Cash Flow Statement. Depending on the project and client, further analysis is conducted, e.g. debt- and equity strategy ( gearing, structured loans, dividend policy, etc.), cost-benefit-analysis, EIRR, etc.

• Revenue Planning
  aeronautical (i.e. airport charges) & non-aeronautical revenues (i.e. retail, food & beverage, car parking, hotel, etc.)
• Operational Expenses
  staff planning, utility- and material costs, administration costs, management costs, concession payments, etc.
• Financial Plan
  balance sheet, profit & loss, cash flow, equity & debt financing, financial ratios, valuations, etc.