Francisco Sá Carneiro Airport

2012 /
CTIS - TTOM
Adriana José da Silva
Francisco Sá Carneiro Airport

Contents

Francisco Sá Carneiro Airporto

HISTORY OF DEVELOPMENT

TRAFFIC GROWTH OVER TIME

CHANGES IN PATTERNS OF USE

Francisco Sá Carneiro Airporto

Dating back to the war years of the early 1940s, Francisco SaCarneiro Airport was officially opened in 1943. Francisco SA Carneiro Airport, also known as Oporto Airport, is the third busiest airport in Portugal (after Lisbon and Faro) based on aircraft movements and passenger numbers. It handled six million passenger in 2011. The airport is situated 11km north-west of the city of Porto, and is managed and operated by a national airport company Aeroportos de Portugal SA (ANA). It has gone through various incarnations throughout its history, and in the last one it was named after a Portuguese politician who died in a plane crash on his way to the airport (Francisco SáCarneiro).

Oporto Airport has one passenger, one cargo terminal and one 11,417 ft-long asphalt-paved runway, oriented to 17/35.

This international air hub primarily serves the city of Porto but it has a number of domestic connections to other Portuguese destinations as well, including Terceira (Azores), Ponta Delgada (Azores), Lisbon, Faro, Porto Santo (Madeira) and Funchal (Madeira) as well as many flights to main European destinations like Madrid, London, Paris, Milan, Frankfurt and Amsterdam. Porto Airport receives flights from nearly 20 international airlines, including services from around 15 destinations operated by low budget carrier Ryanair. Other principal airlines operating flight services to and from Porto Airport include Transavia, Brussels Airlines, Iberia, Lufthansa, Tap Portugal, EasyJet, Luxair and Air Berlin.

HISTORY OF DEVELOPMENT

TRAFFIC GROWTH OVER TIME

Oporto´s traffic has been growing almost every year, having stagnation on the year 2000 with a smooth decrease in 2001 perhaps from the terrorist act September 11th 2001. Also traffic has decreased from 2008 to 2009 due to crisis implications.

Porto Airport has had a good performance over the past three years, having achieved the milestone of 5 million passengers in a single year for the first time in 2010. The airportwelcomed a total of more than 5million passengers, a 17.2% growth as compared to 2009.Considering that the European civil aviation industry was greatly affected over the course of 2010, both by endogenous factors, such as successive strikes, as well as exogenous factors, such as the ash cloud from the Icelandic Eyjafjallajökull volcano, and various snowstorms, which resulted in a large number of flights being cancelled, the results achieved by Porto Airport areimpressive from this point of view. 2011 has been completed one year with positive results were recorded as consecutive monthly record of traffic, with a growth rate of about 14%. The month of August was recorded the most traffic, with a total of 683,865 passengers served.

The Port has direct links to major European airports to Central America and North America and Africa. This growth was partially due to the establishment of new destinations, inaugurated over the course of the last years, as well as an increased capacity on some existing routes. Reflecting a 13.7% growth in passengers and 7.6% growth in movements compared to 2010.

GRAPH 1 - PASSENGERS AND MOVEMENTS ANNUAL EVOLUTION[1]

GRAPH 2 - PASSENGERS 2010-2011 EVOLUTION[2]

GRAPH 3 - MOVEMENTS 2010-2011 EVOLUTION[3]

In 2010 express freight represented 38% of the airport’s total freight, an increase of 19.7%, with 13,394 tons handled.In 2011 express freight represented 45.8% of the airport’s total freighthowever comparing the total freight to 2010 has a 3.4% decrease, with a total of 34.081 tons handled.Being the Star Air, EAT and Air France the top airline freight respectively. Aircus Air and Aironovaare the companies that had the greatest decrease.

GRAPH 4 - FREIGHT ANNUAL EVOLUTION[4]

GRAPH 5 - FREIGHT 2010-2011 EVOLUTION[5]

CHANGES IN PATTERNS OF USE

Continuing the trend witnessed in recent years, in 2010 and 2011 there was a considerable increase in routes by low cost airlines, reinforcing their presence at Porto Airport. 2010 was also a fairly stable year for fullservice airlines, practically maintaining the same volume of traffic as in 2009, following the trend of recent years. Porto Airport managed to attract new routes, increase frequencies and expand the number of available destinations. At the same time, the number of flights to the cities of Barcelona, London, Funchal and Milan were reinforced, after new operations by Ryanair, Transavia and EasyJet.It is also important to highlight the commencement of operations by Royal Air Maroc, which increased the number of full service airlines operating from Porto Airport to 8.

At the end of 2010 Porto Airport rose to the 7th position in the Iberian Ranking, excluding the islands, i.e. two places higher than the results obtained in 2009, ranking between Valencia and Faro and outpacing Bilbao and Seville. This result reinforces the importance of Porto Airport and highlights its position in the NW Iberian Peninsula.

In terms of market share, Porto Airport had a clearly dominant position as compared to Galician airports. With regard to the market shares of the various alliances and types of traffic, low cost airlines became the most representative group at Porto Airport.

GRAPH 6 - MARKET SHARE: PORTO VS GALICIA[6]

As has been mentioned, an overall analysis of scheduled international traffic revealed that the traffic at Porto Airport is essentially concentrated in Europe (France, Spain, Germany, Switzerland and the United Kingdom), representing 95% of total traffic. Even though Africa (+46.2%), South America (+21.8%) and North America (+17%) recorded very accentuated relative growth, these regions continue to represent only a very low percentage of the airport’s traffic profile, with a market share of just 5%. The growth in traffic to the region of Africa (+46.2%) reflects the inauguration of the routes to Casablanca (RAM) and Marrakech (RYR).

GRAPH 6 - PASSENGERS BY WORLD REGIONS[7]

The occupation rate of scheduled flights was 75%, again representing an increase of 3.2% from the previous year, even with the seats offered having increased 10%.

On top of airports scheduled passengers, Paris Orly, Geneve, Madrid, Lisboa, Frankfurt and Barcelona were the six top respectively. Being 15.4% the total increase rate comparing to 2010. Due toessentially the low cost operations growth in these markets.

In case of airports charter passengers, St Petersburg, Luanda, São Paulo Guarulhos, Ponta Delgada, Ostend and London Heathrow were the six top respectively. Having a 34.2% decrease relatively to 2010.

In 2011, Ryanair,TAP and EasyJetwere the airlines that grew the most in relative terms. Ryanair recording a 34.2% growth in movements representing 25.2% of the total movements, having transported 2.268.713 (i.e. 589.841 more compared to the previous year) leading passenger traffic at Porto Airport. TAP Portugal recorded 0.8% growth representing40.4% in total movements, had a negative result of 0.3%, having transported 1.714.606 passenger instead of 1.729.370. In its turn, EasyJet airline had 9.9% increase of movements in total of 8.7%, having transported 750.241 passengers, i.e. 93.547 more compared to the previous year. Air Net Jets was one of theairlines that had a declined result of -24.5% passengersjointly with -20% of Air Berlin and -8% of Nostrum.

The main summer months of July, August and September continueto represent the greatest concentration of traffic at Porto Airport,both in terms of supply as well as demand. During this period, tourism and visits to family and friends were themain reasons for travel, which influenced this increase in traffic. The traffic profile at Porto Airport was very balanced with theexception of the months of January, February and November andthe aforesaid spikes in traffic during summer.

In terms of movements, during the IATA Winter the days that witnessed the most operations were Monday, Wednesday and Friday, although daily traffic is very balanced. During the IATA Summer, due to the commencement of some seasonal operations, Monday and Friday stand out as the busiest days. Both during the winter as well as the summer, Monday, Wednesday and Sunday stand out as the days with the highest number of passengers. The increase in traffic during the weekend period is directly related to the weekend and short breaks opportunities to and from Porto.

Even though there continue to be 2 spikes with greater traffic, the hourly operations at Porto Airport were quite uniform in terms of the distribution of traffic between 8am and 7pm. The period between 9pm and 11pm continues to be the period with the least number of passengers and movements.

RECENT NEWS IN REVIEW

ANA offers prams in Francisco SáCarneiro Airport since September 2010 in delivering targeted solutions for families.

Francisco SáCarneiro Airport, was in 2011, distinguished by the 6th consecutive year by ACI Airports Council International, as one of the top three European airports.

The ANA Board of Directors of Airports of Portugal, SA approved an incentive system to support air freight operations. So, it will be running an Incentive Scheme for companies that create new routes or increase frequency of existing shed on Air Cargo. The aircraft truck may also be supported even under particular conditions. Remain in force the rules for airplanes carrying passengers.

In February 2012 opened to the public the first airport hotel in Portugal, comprising 80 rooms, in addition to being fitted with equipment designed to provide great comfort to travelers, including meeting rooms for business travelers and has little time for decisions.

After the approval process for the proposal to revise the Service Fee for Reduced Mobility Passengers will be € 0.47 per departing passenger, effective from the day 1 April 2012 to March 31 inclusive 2013. This trend translates into a 6% decrease in the value of the current rate, representing a cumulative reduction of 23% since the beginning of the delivery of activity in 2008.

THE FUTURE

FORECAST FOR THE FUTURE

According to the International Airports Council, looking to 2012 while there is a lot of uncertainty in financial markets as to whether governments will be able to contain the sovereign debt crisis in Europe, the consumer seems to be rather unfazed. Consumer confidence is resilient, and spending is still growing year on year as the current crisis has not been adding to unemployment yet.

Therefore, the prognosis is that another year of growth lies ahead of the industry. Growth rates may be smaller, especially in the first half of the year, but overall airports should be in a good spot to grow revenues further. As far as the individual regions are concerned, the significant spreads in growth rates among the regions will homogenize further as economic growth in China and Brazil cools and the continuing political uncertainty in North Africa will continue to limit its growth opportunities. That being said, Asia-Pacific will remain the fastest growing region followed by Latin America, whereas North America and Europe will be rather muted.

The ACI & DKMA’s latest short-term forecast projects a 4.3% increase in passenger traffic for the period covering January to May of 2012. Preliminary figures for 2011 indicate a 4.9% growth in traffic worldwide. Looking forward, passenger traffic growth is expected to be constrained by the outlook for a weakening global economy, coupled with cautious airline capacity increases.

Airports will face, as well, strong increased responsibilities in terms of environment, namely about emissions.

PLANS FOR THE FUTURE

ANA has an expansion plan for Oporto Airport, which has the objectives of sustain the present and expected traffic growth, by increasing the airport capacity.

Also increase the levels of comfort, safety and quality of the service provided.

INFRASTRUCTURE LEVEL

PLAN FOR9 MILLION PAX / YEAR

At this stageit is necessary toincrease theaircraftparking capacity.

The extension of themain platformis not possible,sinceits extensionwouldhurtWestprotectionsurfacesof the current track(transition surface).

Moreover,it is necessary toincreasethe ability of thetrack, whichis onlypossible with the existence ofaparallelpath toits entire length.

As asolutionof development thatallowsthe satisfactionof bothobjectivesidentified above, is consideredthetracktransitionfromthe current locationfor the onethat is presentedin itswestside.

Withthis investment will bepossible to processthenew trackvalues in the orderof40movements/hour andextendup to 40parking positionsforaircraftpassengers.

It should be notedthat theold trackwill function as thepath ofmovementparallel to thenew runway.

Taking advantage ofits features, with somelow costadaptationsmayserve asan emergencylane, which is a hugeoperational advantageto the airportas it willkeep the operationin situations of inoperabilityof the main runway.

The extinctionexpectedto taxiwayA,whichis currentlylocated at anisolatedparkingposition, will forcetheirrelocation. Taking intoaccount the spaceavailable,it was consideredastheideal locationto be markedon 24.

It is considered that theexpansionof the apronservestoCLCA(11)from 5 to 7positions andalso the existence ofa parkingplate material which will supportthe platform.

As a resultof this expansion, it is anticipated therelocation of thefuelfarm toposition23.

With therunwayrelocation, the existingradarmustalso berepositioned.

Inthe passenger terminalfacilities, in addition to equipmentstrengthening itis also planned toexpand theBaggage Departuresterminalbuilding(3).

Fig. 1 - PLAN FOR 9 MILLION PAX / YEAR[8]

PLAN FOR11MILLION PAX/YEAR

Capacity expansionto 43parking positionsforaircraftpassengers, while allowgreater flexibilityin the mix ofaircraft.

It is planned torelocateand expand thetechnicalsupportareason the south sideof theairportandrelocation ofcatering facilities(7).

Thespace freedby reinstalling thecateringwill allowaredesignof the access roadsto the airporton nextspring.

Looking fornew waysto passthese,to formthe periphery of theairportareawill be createdspacesthat can servein particularto increase the capacityof therent-a-car business (8).

Similarly, on the south side, new areaswill be createdto strengthen thecapacity ofcar parking(6 and6a).

Fig. 2 - PLAN FOR 11 MILLION PAX / YEAR[9]

PLAN FORMAXIMUM CAPACITY

It is planned to increase capacity to 54 parking positions for aircraft passengers.

The expansion of the technical areas of support on the south side of the airport (13).

Creation of new areas of technical support on the West Airport (18).

For this stage of development, assuming that the Passenger Terminal in the previous configuration is exhausted it will be necessary its expansion.

This will be achieved through the development of the south pier which will be extended and is expected to install more than seven-bridges.

Will be built new areas of departures and arrivals with their urbsides with similar types of the existent ones and connected to the main terminal.

This expansion will involve the relocation of Air Traffic Control Towerfor the position (15).

Fig. 3 - PLAN FOR MAXIMUM CAPACITY10

IF I WERE THE AIRPORT DIRECTOR…

I would still consider the expansion plan developed by ANA, but with care to developing alternative actions and courses of actions considering possible different scenarios, such as: Entry into function the New Lisbon Airport; No existence of new Lisbon airport; TAP bankruptcy; No increase in freight; Huge increase in freight; Dramatic loss of traffic; Greater traffic demand increase; Consequences of oil prices; Consequences of terrorist attacks; Higher peaks of passengers seasonably; Dramatic changes in patterns of use.

Another scenario is the negative impact of high Speed Rail that is mostly felt in the link Lisbon Oporto. On the other hand this facility increased the level of accessibility and by consequence the airport area influence, in this case it will be necessary that the airport has a good service with wide connectivity, in order to promote this facility, reinforcing the importance of the Airport asport of entry and exit of the country, however recently this project (high speed rail) was canceled. So these aretwo scenarios that must be carefully studied both in relation to the negative and positive impact.

Also researche for new clients is need, for instance, it is well known that the imigration has been increasing, especially from countries like Brazil, China and Eastern European countries, this from my point of view, would be a potential market to be routinely screened, assess, in order to take advantage.

Create more opportunities for the non-aviation business is an important point to develop.

The predictions of freight traffic are more vulnerable to economic but also the decisions that some players may take in relation to airports where they decide to move their goods, however the Incentive Scheme mentioned above is a tool that intend oppose this tendency, that I would keep .

In sum, each step of the new expansion plan, should be very carefully analyzed,that the investments are justifiable, and also re-arranged the order of works to match current events and short term predictions are essential, since long term ones tend to overestimate growth.

BIBLIOGRAPHY

ANA, Aeroportos de Portugal SA Porto, AnnualtrafficReport 2010,2011.

ANA, Aeroportos de Portugal SA Porto, Plano Director Aeroporto Francisco Sá Carneiro, 2007.

ANA, Aeroportos de Portugal SA Porto, TrafficReport-December 2011, 2012.

ANA, Aeroportos de Portugal SAPorto ,SustainabilityReport, 2011.

ANA, Aeroportos de Portugal SA Porto , ANA trafficyearbook, 2011.

[1]Source:ANA, Aeroportos de Portugal SA Porto, AnnualtrafficReport 2010, 2011

[2]-3Source:ANA, Aeroportos de Portugal SA Porto, TrafficReport- December 2011, 2012.

[4]Source:ANA, Aeroportos de Portugal SA Porto, AnnualtrafficReport 2010, 2011

[5]Source:ANA, Aeroportos de Portugal SA Porto, TrafficReport- December 2011, 2012.

6-7Source:ANA, Aeroportos de Portugal SA Porto, AnnualtrafficReport 2010, 2011

[8]Source:ANA, Aeroportos de Portugal SA Porto, Plano Director Aeroporto Francisco Sá Carneiro, 2007.

9-10 Source:ANA, Aeroportos de Portugal SA Porto, Plano Director Aeroporto Francisco Sá Carneiro, 2007.