Building New Capacitymeeting future international growth

2011 ACI-NA International Aviation Issues Seminar

December 1, 2011

by Solomon Wong

Age Old “Pass” “Port” Process

Source: State of Hawaii

Process Changes:Paperless Processes Are Just Emerging

Banking Sector

Differentiated Processes Have Matured Over the Past 20 Years

Source: CBP, CBSA

But not everyone will pre-registerIncentives• Faster Processing• No direct questioning• Access to trial for Pre-

check• Access to international

programs (e.g. Privium)

Disincentives• Interview• Fee• Application Form• Infrequent travel

Recent International Arrivals data at top 20 US Airports for YE April 2011 vs. 2010, 2009

0

2

4

6

8

10

12

2009 April

2010 April

2011 April

2011 vs.2010: 11%

2011 vs.2010: 25%

2011 vs.2010: 25%

2011 vs.2010: 10%

2011 vs.2010: 7%

2011 vs.2010: 8%

2011 vs.2010: 8%

International  Passen

gers (m

illions)

Source: US Department of Transportation T‐100 Data (excludes preclearance airports).

Outlook for International Arrivals at top 20 US Airports (2012-2011)

Total Inb

ound

 International O

peratio

ns

Source: US Department of Transportation (excludes preclearance airports).

0

10

20

30

40

50

60

70

Operations 2010

Operations 2011

Operations 2012

2012 vs.2011: 15%

2012 vs.2011: 26%

2012 vs.2011: 20%

2012 vs.2011: 8%

2012 vs.2011: 6%

2012 vs.2011: 5%

2012 vs.2011: 4%

2030: Growth of International Passengers

0

1,000

2,000

3,000

4,000

5,000

6,0002030:4,900

2010:2,500

Source: International Civil Aviation Organization (ICAO) and International Air Transport Association (IATA).

E/D Passen

gers (m

illions)

ICAO expects global traffic to reach 4.9 billion over the next 20 years (3.5% AAGR)

Is the current model sustainable?

Source: CBP

Or can we move towards automation more rapidly?

~450Pax/hour

10Booths

1 Traditional Booth Model

~600Pax/hour

8Booths

4Kiosks

2 Booths + Trusted Traveler

1200‐1740Pax/hour!!!

4Booths

6Kiosks

10Automated Gates

3 Add Automation

Comparison of Models

450 600 

1,740 

 ‐

 200

 400

 600

 800

 1,000

 1,200

 1,400

 1,600

 1,800

 2,000

Passen

gers per Hou

r

10 booths 8 booths4 kiosks

4 booths6 kiosks

10 automatedgates

1,200

Border Evolution: A Summary

1950’s

Borders Banking

What is the target for automation at your airport?

Risks Without Automation • Customer Service

– Long lineups for passengers• Border Risk Management

– Insufficient officers to meet demand– Inability for CBP to focus on high risk

• Airport Operations– No flights or hindrance of flight operations– Bottle neck of flights arriving at the same time

• Market Development– Limiter on capacity to meet new international

opportunities

But What About Connections?

Can there be a better process to risk‐managechecked bags for internationalarrivals before the next flight?

One Stop is a First Step Only

Baggage Recheck Elimination

Future Possibilitiesin Facilitation & Risk Management

Image Source: L3 Communications

For More Information

ACRP

61REPORT

BAGGAGE RECHECKELIMINATION/REDUCTION

solomon@intervistas.com

+1‐202‐709‐4638+1‐604‐717‐1854