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- By Halldor Halldorsson, Business Sector Manager for the Danish Airport Group
and Michael Niels Thorsen, Chairman of the Danish Airport Group
While airlines are struggling to minimize their loss, which according to IATA while continue in 2011, the biggest challenge for the airports is to secure enough capacity in the years to come and at the same time to deliver cheap services to high safety standards.
Many airports are now on the same level as before the financial crisis, regarding number of passengers. Danish airports are again experiencing good growth rates. This year Copenhagen airport has had an increase in number of passengers with impressing 9%. Billund and Aalborg have experienced a double-digit growth in 2010.
Airports have to continue investing in expansions and refurbishments. Many European airports have restarted their investment-programmes, and in 2011 we hope that the continuing of the projects will give the suppliers a boost, since many have had revenue losses the past 3 years. There is not much good to say about the financial crisis we have been through, but if any good is to be said, it is that the Danish suppliers have had an extreme tough focus on costs and how to produce more efficiently.
In addition, and in line with the Danish traditions, Danish suppliers have focussed on developing innovative products which can support the airports in obtaining additional capacity with minimum investment. These products are often focusing on solving basic problems and bottlenecks in the operation of an airport.
All this development has been performed taking due consideration to the Danish tradition for industrial design supporting the airports in developing a more friendly environment for the users and employees.
This means that a number of Danish suppliers produce leading edge products to the airport supporting the airport in decreasing the costs, decreasing the environmental impact, increasing user satisfaction and solving basic bottlenecks.
The effect of the financial crises has also created a change in the market. New markets outside Europe and US play a more and more important role for the suppliers. European suppliers not able to meet the requirements of these emerging markets will face problems. Through the investments in innovative products, industrial design and cost cutting the Danish suppliers are well prepared to meet the new requirements. Only through focusing on these areas the industry can survive, as the new market have the same or even stronger requirements than the traditional markets.
However this is much easier said than done, it takes a lot of effort and attention from many sides. The companies have to put a lot of resources in Research and Development, the people have to educate, the government must create the right frames for a society where the most important “raw material” is the brains. The government must secure an extreme high-level in the educational system, give financial support to innovation and development, and give the opportunity of import of brains when needed. Another important issue for the government to consider is private-public partnerships. If combined the right way, this can make a very good outcome in R&D projects, ex. between a university and a private owned company.
So all in all it is not just a challenge for the individual companies to stay in front, it is societal mission.
Airlines move in a bloody red ocean, but can airports do blue ocean? If yes, how can they diversify? Well there are a lot of parameters to work on; ex. excellent service, interesting shops, good design and interesting interior, good food, tempting relax areas, short transfer-time, many connections, low prices, close to big city, easy parking, short walking distances etc. Different airport focus on different key performance indicators. Denmark has a tradition for user-driven innovation, and for making complex systems easy for the user. This is reflected in products from all kind of industries. The Airport industry is no exception, where Denmark host companies that are among the world-leading within their field, ex. master-planning, baggage-handling, radar systems, interior, de-icing and many more.
When you come to Denmark to visit the Passenger Terminal Expo in Copenhagen, your first impression of Denmark will be in Copenhagen Airport. Which impression will you get? Hopefully you see good and elegant Danish design, good long lasting quality, light and bright architecture, a very high level of service and a logical and effective infrastructure. There is an adage of the late Piet Hein, that describes our advantage; “Why are the Danish Craftsmen acclaimed with such worldwide cheers? Why are but few their equals and probably none their peers? What made the Danish modern? We have practiced for 3000 years.”
The next Passenger Terminal Expo is being held in Copenhagen. Do not miss the opportunity to experience the capital of Denmark. End of march we are already in the spring time, and if you are lucky the weather is so good that you can sit outside on a cosy Café and have a latte or maybe even a Danish beer, and enjoy the atmosphere in Copenhagen. Copenhagen is a combination of our history that goes thousand years back and the modern world as it is today. Come and explore Copenhagen.
Passenger Terminal Expo is being held in Bella Center 29., 30., and 31. of march. As usual at this show there will be a big Danish pavilion. This year it will be bigger than usually, as we are in Copenhagen. We would be happy to give you a guided tour through the pavilion, ending with something typical Danish; a hot-dog and a beer. There will be a lot of activity in Copenhagen that Week; numerous receptions, site visits to Copenhagen Airport, company visits and much more.
A FEW WORDS ABOUT DANISH AIRPORT GROUP
High quality, good design and state-of-the-art. Everyone knows these words, but understanding how to put them together in a product or task is not so easy. Denmark has a long tradition of combining these characteristics when designing a new product or finding new solutions. Many Danish companies have also built strong competencies within the airport and aviation industry over the last few decades.
Danish Airport Group (DAG)’s members cover a broad range of products and services for airports – from master planning to baggage handling – and this has given them an unrivalled overview of just how airports can meet new challenges.
The group is a sector network of the Danish Export Association, which has enabled DAG to take part in numerous export drives all over the world, making the organisation an excellent platform for locating new business partners and suppliers.
This article was published in the International Airport Review 1/2011 |
