Alper AKBAŞ Project Coordinator

2015 TURTRANS 1732014 TURTRANS 045 PROJECT INTRODUCTION

CONNECTIVITY IS POWER

5th MOST CONNECTED CITY of theWORLD

WELCOME TO ISTANBUL

The Natural Hub of the World

1st Istanbul has the largest connectivity growth in last 5 years

Source: Master Card Global Destination Cities Index 2014, 2015

WHY AVIATION?

Why we need to focus on aviation?CIVIL AVIATON’S ECONOMIC IMPACT

GLOBAL JOBS SUPPORTED IN THE WORLD58MTRILLION

GDP$2.4OF WORLD’S GDP%3.4

GLOBAL JOBS SUPPORTED IN THE WORLD 105MTRILLION

GDP $6

TODAYIN 20 YEARS

%4.1OF WORLD’S GDP

As the second largest inter-governmental organization with 57 states over the continents, There is no doubt that we are influenced by “Civil Aviation’s Economic Impact” intensely.

q

FINANCE

CONSTRUCTIONAUTOMOTIVE

AVIATION

$3.25$2.9 $2.3

$1.4

$3.25$1 =CIVIL AVIATON’S ECONOMIC IMPACT - Multiplier Effect

Industries’ GDP ContributionsCIVIL AVIATON’S ECONOMIC IMPACT

1971 2031

1965 2030

Air Transportation Center of Gravity is shifting into the Islamic World.

Are we ready to embrace it and benefit from it?

?

CENTER OF GRAVITY - AVIATION & ECONOMY

Source:AirbusGMF2012&OxfordEconomics

Shift in Air Traffic Center of GravityBetween 1971-2031

Shift in Economic Center of GravityBetween 1965-2030

10% increase in global connectivity

$55 billion increasein global outputs each year

If global airport capacity fails to keep up with

travel demand

2 million jobs, 225 million pax, $110

billion revenue will be lost by 2035

If aviation were a country,

it would rank 21st in size by GDP

Why we need to focus on aviation?CIVIL AVIATON’S ECONOMIC IMPACT

What happensIf the demand&supply equilibrium

of aviation / airports fails

?

8.7 MillionsDIRECT EMPLOYMENT

470 KAIRPORT OPERATORS5% 58.1

Supported Total Employment

MILLION

AIRLINES2,3 Million 26%

ANS195 K2%

Production & AeroSpace1,2 Million14%

OTHERS

CIVIL AVIATON’S ECONOMIC IMPACT - EMPLOYMENT

8.7 MillionsDIRECT EMPLOYMENT

470 KAIRPORT OPERATORS5% 58.1

Supported Total Employment

MILLION

AIRLINES2,3 Million 26%

ANS195 K2%

Production & AeroSpace1,2 Million14%

OTHERS

%26Airline

%5Airport

Operators

%16ANS

+Producers

%53 ?

%47

CIVIL AVIATON’S ECONOMIC IMPACT - EMPLOYMENT

8.7 MillionsDIRECT EMPLOYMENT

470 KAIRPORT OPERATORS5% 58.1

Supported Total Employment

MILLION

53%4,6 MILLIONS

AIRLINES2,3 Million 26%

ANS195 K2%

Production & AeroSpace1,2 Million14%

OTHERS

%26Airline

%5Airport

Operators

%16ANS

+Producers

%53 ?

%47

AIRPORTS OTHER

CIVIL AVIATON’S ECONOMIC IMPACT - EMPLOYMENT

More than 55 Countries%70 of International Destinations

with Narrow Body

ISTANBUL

Global Connectivity Development (2014-2016) - İstanbul vs. Major European Hubs

*Number of Direct Destinations (2014-2016)

Natural HubsAre they enough to achieve more?

OR ?Do we have

to improve the processes?

Do we have to / can we create Artificial Hubs?

Because…..!

39 of 47 Aviation Mega Cities are schedule- constrained today.

IATA WSG level 3: airports where conditions make it impossible to meet demand IATA WSG level 2: airports with potential for congestion IATA WSG level 1: airport infrastructure is adequate

In The Islamic GeographyLeading Hubs and their feeders are already congested

!IATA WSG level 3: airports where conditions make it impossible to meet demand

Türk Hava Kurumu ÜniversitesiSivil Havacılık ve İstihdam

EUROCONTROL: Challenges of Growth, 2013

With foreseen expansion planning taken into account, it is predicted that:

• 12% of demand will be unaccommodated• 1.9 million flights • 237 million passengers

EUROPEAN AIRPORTS2035

Türk Hava Kurumu ÜniversitesiSivil Havacılık ve İstihdam

EUROCONTROL: Challenges of Growth, 2013

With foreseen expansion planning taken into account, it is predicted that:

• 12% of demand will be unaccommodated• 1.9 million flights • 237 million passengers

EUROPEAN AIRPORTS

If global airport capacity fails to keep up with

travel demand

2 million jobs, 225 million pax, $110

billion revenue will be lost by 2035

$110 BillionLOST

2035

Capacity Building in Airports

Measuring and Benchmarking of “PMPI (Passenger Movement Performance Index)”

among the OIC countries.

2014 045

TURTRANS

160 More than 160 face to face surveysamong departure passengers

398Passenger Reviews analyzedon skytrax.com

1200 More than 1200Observed and measured passengers

DURINGall study visits

6 COUNTRIES , 6 STUDY VISITS, 6 MEETINGS

BENCHMARK SCALE

AIRPORT IATA CODE BENCHMARK SCORE

HAMAD INTERNATIONAL AIRPORT DOH 82DUBAI INTERNATIONAL AIRPORT DXB 80

KUALA LUMPUR INTERNATIONAL AIRPORT KLIA 79KUWAIT INTERNATIONAL AIRPORT KWI 78ATATÜRK INTERNATIONAL AIRPORT IST 77

SOEKARNO-HATTA INTERNATIONAL AIRPORT CGK 72

0 1005025 75

PMPI SCORES

PMPIPASSENGER MOVEMENT PERFORMANCE INDEX“

“

According to ACI, the five measures of airports’ performance are:

• Passengers • Origination and destination passengers, • Aircraft movements, • Freight or mail loaded/unloaded • Destinations (non-stop)

And today airports are the performance indicators of cities, countries and ECONOMIES…

Freight is importantbecause…

$ 3 million

$ 15 million

Air Passenger Lines Air Cargo Lines

1 Frequency per week

Airports are more important than everbecause…

1/3 of World Population4 Hours Flight

2/3 of World Population8 Hours Flight

916 millionsExport Market

Population

25 CitiesP > 10 millions

149 CitiesP > 1 millions

Direct Connection

Non GVC Trade GVC TradeGVC and non-GVC trade in goods and services, 1995 and 2011, billion USD. Source: IATA Value of Air Cargo, December 2016

NEW TREND OF GLOBAL TRADE :GLOBAL VALUE CHAINS

GVC GVCs are complex, interlinked networks of cross-border and domestic flows of goods, services, and factors of production (capital, including knowledge capital,

and labor).

KEEPING THE CENTER OF GRAVITY

21Passenger TrafficINCREASE

Air Cargo TrafficINCREASE

Passenger Flow Cargo Flow

2014TURTRANS045 2015TURTRANS173

Assessment and Enhancement of Air Cargo Interconnectivity

2015

173TURTRANS

Assessment and Enhancement of Air Cargo Interconnectivity Among the OIC Member States:

The Air Cargo Co-Modality Approach (ACCMA) to Facilitate INTRA- OIC Trade.

35% Air transport carries around 35% of world trade by value.

$Value of cargo handled by air 6.4Trillion

TOTAL AIR FREIGHT TRAFFIC GROWTH Airbus GMF 2015

Co-Modality Approach: ““efficient use of different modes on their own and in combination”

Intermodal / Multimodal Transport: “movement of goods in one and the same loading unit or road vehicle, which uses successively two or more modes of transport without handling the goods themselves in changing modes” (train or ocean is obligatory)

Combined Transport: “intermodal transport where the major part of the European journey is by rail, inland waterways or sea and any initial and/or final legs carried out by road are as short as possible”

2006

Befo

re

Air Cargo Co-Modality Approach:““efficient use of different modes on their own and in combination”where the main mode is Air Cargo Transportation.

2016

To consolidate air freight (collected from catchment area) in an air cargo hub,

To convey the consolidated higher amount of freight via long or medium haul flights operated by all cargo carriers or combined carriers to other regional airports or to

other hubs in order to deploy to ending nodes.

Air Cargo Hub and Spoke System fed by all transportation modes

THE METHODOLOGY - I

Desk Based Studies

• Detailed Analysis of air cargo flows and data: traffic, trade, capacity, commodities• State-of-Affairs & Due Diligence • Determination of the airports with high potential and strong catchment area

METHODOLOGY

Study Visits

• Malaysia• Indonesia• Tunisia• Mozambique

Cooperation Meeting in Istanbul

• Share of findings• Participation of study countries• Cargo Facility Visits (THY & MNG)

Final ReportOnline Tools

0 5025

To provide an assessment and due-diligence of “Air Cargo Inter-Connectivity” level of OIC airports and world airports for comparison via

“Air Cargo Interconnectivity Index”,

To identify some of the most appropriate locations among OIC member states for the purpose of establishment of air cargo hubs and logistic

centers in the context of Air Cargo Co-Modality Approach,

To identify the challenges apropos regularity framework of air cargo transportation among OIC member states, and by doing so to facilitate the

establishment of air cargo logistic centers,

EXPECTED OUTPUTS

0 5025

To develop practical recommendations regarding regularity framework by the preparation of an example “Multi-Literal Agreement” in order to create a collaboration platform opportunity among member states.

To increase the awareness of decision makers of commercial entities recorded in member states about the existence of potential air cargo

logistic centers.

EXPECTED OUTPUTS

The ultimate aim of the project is to create a common collaboration and cooperation platform among OIC member states and relevant commercial

entities on air cargo transportation.

Opportunity for A New Cooperation and Collaboration Platform

Increase in Air Cargo ConnectivityIncrease in Intra-OIC and OIC Trade

A new revenue source for airports

A COMMON COLLABORATION PLATFORM BECAUSE…

Gravity Center of Air Trade

Gravity Center of Air Transport Capacity

Tunisia

Mozambique

Malaysia

Iran

Study CountriesGravity Centers

Mozambique is of crucial importance with respect to its geo-strategic location and potential for growth.

Recent decades in Mozambique witnessed significant projects of transportation infrastructure.

In par ticular ly, the Development Corridors of Mozambique and the Nampula Region (which has a brand new and modern airport, Nacala Airport) has been discussed in the case study.

It is believed that any support given to Mozambique with respect to air cargo transportation will result in high benefits for the country and for intra-OIC trade.

Boeing GMF, 2015

Boeing GMF, 2015

Newly established Enfidha Hammamet International Airport and Express Air Cargo company have remarkably increased the potential of Tunisia.

In addition to this, the ongoing port construction in Enfidha is another opportunity to boost air cargo traffic of Tunisia.

This developments in Tunisia will make it possible to consolidate air cargo among Africa continent.

A collaboration between Tunisian and OIC Member States air freight carriers is believed to result in high benefits in short term.

Tunisia

Malaysia have proven its proficiency in civil aviation among the recent decades. In particularly, the recent project of “Aeropolis” is one of the world’s most outstanding aviation projects.

The know-how of Malaysia which is one of the most collaborative member states can play a catalyst role in the development of other OIC Member States.

“Aeropolis Project” will be elaborated in the case study section of the final project report, with precious support of Malaysia Airports Holding.

It is believed that it is a very important example for other member states which are planning to establish efficient logistics centers.

TIME FOR FIGURES(15 minutes of presentation apropos of findings

via Tableau Software)(Not included in PDF copy)

THIS RESULT CAN BE ONLY ACHIEVABLE WITH OUR

COLLABORATION and COOPERATION

Increase in Air Cargo ConnectivityIncrease in Intra-OIC and OIC Trade

A new revenue source for airports

WE NEED TO COLLABORATE…

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ALPER AKBAŞProject Coordinator

THANKYOU

alperakbas@aviationportal.org

www.aviationportal.org