COMCEC 2015 TURTRANS 045 FINAL REPORT (DGCA)

Measuring and Benchmarking of Passenger Movement Performance Index (PMPI) among the OIC CountriesThis report was prepared under the “Measuring and Benchmarking of Passenger Movement Performance Index (PMPI) among the OIC Countries” Project (2014-TURTRANS-045) funded by the COMCEC

Standing Committeefor Economic and Commercial Cooperationof the Organization of Islamic Cooperation (COMCEC) ACKNOWLEDGEMENTThis report was prepared under the project ownership of Turkish Directorate General of Civil Aviation (Ministryof Transportation, Maritime Affairs and Communications of the Republic of Turkey) during COMCEC ProjectFunding 2014 Implementation. This paper is a part of the project titled as “Measuring and Benchmarking of“PMPI (Passenger Movement Performance Index)” among the OIC countries”. Views and opinions expressedin the report are solely those of the authors (project experts) and do not represent the official views of theCOMCEC Coordination Office or the Member States of the Organization of Islamic Cooperation. Excerpts fromthe report can be made as long as references are provided. All intellectual and industrial property rights for thereport belong to the COMCEC Coordination Office. This report is for individual use and it shall not be used forcommercial purposes. Except for purposes of individual use, this report shall not be reproduced in any form orby any means, electronic or mechanical, including printing, photocopying, CD recording, or by any physical orelectronic reproduction system, or translated and provided to the access of any subscriber through electronicmeans for commercial purposes without the permission of the COMCEC Coordination Office. For further information please contact: COMCEC Coordination Office Necatibey Caddesi No:110/A 06100 Yücetepe Ankara/TURKEY Phone : 90 312 294 57 10 Fax : 90 312 294 57 77 Web : www.comcec.orgwww.comcec.org n www.shgm.gov.tr 2

Directorate General of Civil Aviation Ministry of Transport, Maritime Affairs and Communications The Republic of Turkey3 www.comcec.org n www.shgm.gov.tr

ExecutiveSummarySTORY BEHIND PMPIAir transport is one of the most prominent factors surveys and improve their physical and operational in the world of our century as a contributor to processes according to the feedbacks. There aresustainable economic growth by facilitating tourism, different subjective and objective evaluation criteriainternational and domestic trade. Air transport itself that the airports generally use. PMPI – Passengeris a generator of economic growth, employment, Movement Performance Index, is generated in orderimproved living standards. For the governments it to assist the airports to monitor and evaluate theirhas also a significant role in alleviating poverty and passenger movement performances.increasing tax and relevant revenues. Beside itseconomic and commercial influences, air transport The concept of this study was to visit 6 differentwith eased restrictions regarding the movements airports (Dubai International Airport, Hamadof goods and people facilitates social and economic International Airport, Kuwait International Airport,networks which will have long-lasting prominent Soekerna-Hatta International Airport, Kuala Lumpurimpacts. Airports are one of the main supporters of International Airport and Istanbul Atatürk Airport),air transport for both passenger and cargo traffic. which were selected according to their yearlyBetter physical conditions, smarter architectural passenger traffic, from OIC member countries anddesigns and efficient operations would always make quantitative time based observations andsupport air transport in a positive way. objective satisfaction based surveys. According to the statistics of 2014, air carriers registered inPassengers are the target groups of airports in order to the selected 6 countries, where these airports arehave a sustainable development. It is very important located, compromises more than 70% of the total airto work efficiently and rapidly in operational activities traffic among OIC states.in order to both satisfy the passengers and fulfill thecapacity constraints of airport terminals. Because of During the project implementation period several sitethis need, airports are encouraged to make passenger visits were made to the airports and more than 1.200www.comcec.org n www.shgm.gov.tr 4

1,200 160 398 Observations Surveys Analyzed ReviewsDuring all study visits more than 1,200 Number of eligible surveys conducted During the desk-based studies, 398observations were made in order face to face, during the study visits. passenger reviews from Skytrax webto generate a PMPI benchmarking page were analyzed. formula.observations were conducted in order to generate further studies and additional observations in thea PMPI benchmarking formula. Besides quantitative same airports and less crowded airports, the formulatime based measurements and observations, the can be improved to cover all type of airports in aproject members conducted surveys with the better way.passengers in order to collect their satisfaction levelperceptions. Beside the observations and surveys, general information about the airport terminals,The collected data were sorted out; simplified and physical status and operational functions are writtendifferent tools were used for the analysis. In the for all airports. At the end of the report, a policyend of the study, a general formula was generated recommendation and observed best practices for thefrom the quantitative measurements and objective aforementioned airports are presented for the kindsatisfaction surveys. According to the formula, Qatar consideration of related Authorities.Hamad International Airport ranked as 1st airportamong the 6 observed airports.Generally, the formula allows any of the OICmember countries to basically enter 5 time basedmeasurements (check-in, passport waiting andprocessing times and walking distance times) andgenerate a benchmarking score as an output. ThePMPI formula is independent from yearly passengerstatistics or terminal type. But as the observedairports are selected from the most crowded airportsin the OIC member states it is believed that, with5 www.comcec.org n www.shgm.gov.tr

PASSENGERMOVEMENT PERFORMANCE INDEX 6

CONTENT 10 20 PART I - INTRODUCTION 26 PART II - LITERATURE REVIEW 40PART III - BENCHMARKING MODEL AND THE METHODOLOGY 42 PART IV - ABOUT THE AIRPORTS 54 IV.1 - DUBAI INTERNATIONAL AIRPORT 64 IV.2 - İSTANBUL ATATÜRK INTERNATIONAL AIRPORT 72 IV.3 - HAMAD INTERNATIONAL AIRPORT 78 IV.4 - KUWAIT INTERNATIONAL AIRPORT 86 IV.5 - KUALA LUMPUR INTERNATIONAL AIRPORT 97 IV.6 - SOEKARNO-HATTA INTERNATIONAL AIRPORT 106 PART V - COMPARATIVE ANALYSIS 116 128 PART VI - BEST PRACTICES 130 PART VII - RECOMMENDATIONS NEXT STEP FURTHER STUDIES REFERENCES7 www.comcec.org n www.shgm.gov.tr

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List of Tables 10 11 Table-1 World Total Revenue Traffic - International and Domestic 12 Table-2 World Revenue Traffic - International 16 18 Table-3 Top 25 Airports Ranked by Total Passengers, 2014 (Source: ACI, Airports Council International) 18 Table-4 World Revenue Traffic - International (Source: ACI, Airports Council International) 31 Table-5 Annual Air Passenger Traffic in Selected Countries, Source: World Bank & IATA 32 33 Table-6 Selected Countries’ Share of Passenger Traffic in OIC Total Traffic, Source: World Bank & IATA 37 Table-7 Calculation of the importance level indicators 37 Table-8 Detection of Importance Levels of Processes 37 39 Table-9 Selected Countries’ Share of Passenger Traffic in OIC Total Traffic, Source: World Bank & IATA 42 Table-10 Observed passengers 42 44 Table-11 Average time spent in processes 56 Table-12 Average Satisfaction Levels 58 Table-13 PMPI Scores 59 60 Table-14 Most Occupied Destinations from DXB (2014) 61 Table-15 Top Country Destination from DXB (2014) 65 Table-16 New Names of the Concourses in DXB 73 Table-17 General Information, IST 81 Table-18 Arrival Level Capacities 89 Table-19 IST Lounges 93 Table-20 The Structure of TAV Holding 100 Table-21 Number of Passengers Carried by THY 103 Table-22 General Information About DOH Table-23 General Information About KWI 103 Table-24 General Information About KUL Table-25 General Information About CGK 118 119 Table-26 Garuda Indonesia Group Companies, Source: www.garuda-indonesia.com 120 Table-27 Code Book 121 122Table-28 Most Occurring Words in All Comments (Percentage means the relative ratio among one unique 123 airport’s review.) 125Table-29 Most Occurring Words in All Comments (Percentage means the relative ratio among one unique airport’s review.) Table-30 The most occurring codes for each airport. Table-31 DOH Leading Codes Table-32 DXB Leading Codes Table-33 KUL Leading Codes Table-34 KWI Leading Codes Table-35 IST Leading Codes Table-36 CGK Leading Codes9 www.comcec.org n www.shgm.gov.tr

PART-IINTRODUCTIONTHE REASON TO FOCUS ON AVIATIONFOR THE PROJECT. Passengers Passenger-km Freight tonnes 1.1. WHAT IS CIVIL AVIATION?YEAR (millions) (%) (millions) (%) (millions) (%) Basically aviation can be classified into two as military aviation and non–military aviation.2005 2 139 7,1 3 913 613 8,0 36.5 2,5 Non- military aviation can be called as “Civil2006 2 259 5,6 4 157 765 6,2 38.8 6,2 Aviation”.2007 2 457 8,8 4 499 254 8,2 41.1 6,22008 2 494 1,5 4 589 139 2,0 39.8 -3,2 According to the Cambridge Dictionary;2009 2 484 -0,4 4 540 812 -1,1 39.5 -0,8 Civil Aviation is described as the “flights2010 2 700 8,7 4 901 989 8,0 47.0 19,2 and aircraft used for personal and business2011 2 865 6,1 5 224 438 6,6 48.1 2,2 purposes, such as transporting goods2012 2 998 4,6 5 503 910 5,3 47.4 -1,4 or passengers, rather than for military2013 3 132 4,5 5 806 222 5,5 48.5 2,3 purposes”.2014 3 303 5,5 6 144 510 5,8 50.4 3,9YEAR Freight tonne-km Civil aviation includes two major categories: Mail tonne-km Revenue tonne-km • Scheduled air transport, including all2005 153 698 2,5 4 452 1,7 521 414 6,3 passenger and cargo flights operating on2006 163 850 6,6 4 336 -2,6 553 967 6,2 regularly scheduled routes;2007 171 723 4,8 4 309 -0,6 590 719 6,6 • General aviation (GA), including all other2008 170 073 -1,0 4 794 11,3 600 470 1,7 civil flights, private or commercial2009 154 976 -8,9 4 532 -5,5 574 699 -4,3 1.1.VOLUME OF CIVIL AVIATION2010 185 621 19,8 4 763 5,1 642 189 11,7 The volume can be classified by the number of passengers, passenger-km (passenger x2011 186 178 0,3 4 910 3,1 674 056 5,0 km), freight tones, freight ton-km (freight ton x km), mail tones and revenue ton-km.2012 184 236 -1,0 5 096 3,8 697 569 3,52013 184 969 0,4 5 480 7,5 727 176 4,22014 194 012 4,9 5 910 7,8 768 579 5,7Table-1 World Total Revenue Traffic - International and Domestic (Source: ACI, Airports Council International)www.comcec.org n www.shgm.gov.tr 10

Passengers Passenger-km Freight tonnes In the Table-1 the change in these parameters (millions) (%) starting from the year 2005 to 2014 can beYEAR (millions) (%) seen. This table includes both domestic and (millions) (%) international flights. 21.5 3,72005 734 9,0 2 314 238 9,2 22.9 6,4 On the other hand, in the Table-2, the same2006 802 9,3 2 500 914 8,1 24.3 6,3 parameters are shown just for the international 24.1 -0,9 flights.2007 886 10,5 2 717 171 8,6 23.5 -2,32008 921 3,9 2 801 373 3,1 30.4 29,2 1.2. REGIONAL CIVIL AVIATION 31.2 2,8 TRAFFIC2009 933 1,3 2 765 640 -1,3 30.7 -1,62010 1 032 10,6 3 000 864 8,5 31.4 2,2 Scheduled traffic of civil aviation can be 32.8 4,3 counted according to the means of aircraft2011 1 120 8,5 3 229 524 7,6 Revenue tonne-km kilometers, aircraft departures, passengers2012 1 187 6,0 3 427 591 6,1 carried, passenger-kilometers, passenger2013 1 248 5,2 3 623 147 5,7 load factor, freight ton-km, revenue ton-km, ton-kilometers available. These measures2014 1 322 6,0 3 838 791 6,0 can be classified by the regions of the world;YEAR Freight tonne-km Mail tonne-km which are Europe, Africa, Middle East, Asia and Pacific, North America, Latin America and2005 129 663 2,9 2 751 5,3 349 658 6,7 Caribbean. According to ‘Passengers Carried’, Asia and Pacific region is the leader whereas2006 138 409 6,7 2 816 2,4 375 947 7,5 North America becomes the world leader in the scheduled civil aviation traffic according to2007 145 355 5,0 2 955 4,9 400 851 6,6 ‘Aircraft Kilometers’ and ‘Aircraft Departures’ .2008 144 139 -0,8 3 138 6,2 407 764 1,72009 131 453 -8,8 3 121 -0,6 391 865 -3,92010 160 092 21,8 3 320 6,4 444 808 13,52011 160 749 0,4 3 392 2,2 467 628 5,12012 158 495 -1,4 3 520 3,8 483 590 3,42013 158 979 0,3 3 830 8,8 503 160 4,02014 167 289 5,2 4 169 8,8 532 779 5,9Table-2 World Revenue Traffic - International (Source: ACI, Airports Council International)11 www.comcec.org n www.shgm.gov.tr

Table-3 Top 25 Airports Ranked by Total Passengers, 2014 (Source: ACI, Airports Council International) Passengers embarked / disembarked Aircraft MovementsRANK CITY AIRPORT 2014 2013 2014/2013 2014 2013 2014/2013 1 Atlanta, GA Hartsfield-Jackson Atlanta (thousands) (thousands) (thousands) (thousands) (thousands) (thousands) 2 Beijing International 96 179 94 431 1,9 868 911 -4.7 Beijing Capital International 86 128 83 712 2,9 582 568 2,53 London Heathrow 73 408 72 367 1,4 473 470 0,64 Tokyo Haneda (Tokyo International) 72 827 68 907 5,7 426 403 5,65 Los Angeles, CA Los Angeles International 70 663 66 727 5,9 637 612 4,16 Dubai Dubai International 70 476 65 912 6,9 357 370 -3,47 Chicago, IL O'Hare International 69 999 66 904 4,6 882 883 -0,17 Chicago, IL O'Hare International 69 999 66 904 4,6 882 883 -0,18 Paris Charles de Gaulle 63 814 61 462 3,8 471 475 -0,89 Dallas/Fort Dallas-Fort Worth 63 554 60 436 5,2 680 678 0,3 Worth, TX International10 Hong Kong Hong Kong International 63 122 59 903 5,4 391 372 5,111 Frankfurt Frankfurt 59 566 58 018 2,7 469 466 0,612 Jakarta Jakarta Soekarno-Hatta 57 221 60 137 -4,8 391 399 -2,0 International13 Istanbul Istanbul Ataturk International 56 716 51 283 10,6 440 387 13,614 Amsterdam Schiphol Amsterdam 54 978 52 561 4,6 453 430 5,315 Guangzhou Guangzhou Baiyun 54 780 52 450 4,4 412 394 4,616 Singapore International 54 093 53 726 0,7 347 344 0,9 Changi17 Denver, CO Denver International 53 473 52 556 1,7 566 587 -3,718 New York, NY John F. Kennedy International 53 255 51 905 2,6 422 396 6,719 Shanghai Shanghai Pudong 51 688 47 190 9,5 402 371 8,4 International20 Kuala Lumpur Kuala Lumpur International 48 930 47 498 3.0 341 326 4,521 San Francisco, CA San Francisco International 47 115 45 010 4,7 432 419 3,022 Bangkok Bangkok Suvarnabhumi 46 423 51 463 -9.8 294 298 -1.5 International23 Seoul Incheon 45 662 41 680 9,6 293 271 8,224 Charlotte, NC Charlotte Douglas 44 280 43 456 1,9 545 557 -2.1 International25 Las Vegas, NV McCarran International Las 42 870 41 857 2,4 522 520 0.5 Vegaswww.comcec.org n www.shgm.gov.tr 12

A view from Dubai International Airport (DXB) Dubai International Airport is OIC’s highest ranked airport regarding the passenger traffic. Terminal 3 building in DXB, is the largest airport terminal building in the world and the second largest building of the world as the surface.13 www.comcec.org n www.shgm.gov.tr

%3.4 $2.4 21st of global GDP Support Trillion / Global Economic If aviation was a country ImpactGlobal GDP was supported by civil avia- It would rank 21st in size by GDP. tion in 2012 Including direct, indirect, induced and tourism catalytic About the sources of FiguresWithin this section of the report mainly ATAG and OXFORD Economics Data and Analysis are used.1.3. ABOUT THE BENEFITS OF AVIATION of member countries over the continents is taken in to account, the vital life-line offered by air transportAir transport is one of the most prominent factors becomes more perceivable.in the world of our century as a contributor tosustainable economic growth by facilitating tourism, Since the first commercial flight in 1914, more than 67international and domestic trade. Air transport itself billion passengers were carried in commercial flights1.is a generator of economic growth, employment, While it was 2,97 billion and 3,1 billion respectivelyimproved living standards. For the governments it in 2012 and 2013, this number reached the level ofhas also a significant role in alleviating poverty and 3,5 billion in 2014. According to many researchesincreasing tax and relevant revenues. Beside its and also Oxford Economics, it is forecasted to reacheconomic and commercial influences, air transport another 65 billion within the next 20 years. Whilstwith eased restrictions regarding the movements the global total passenger fleet is 17,354 in 2014,of goods and people facilitates social and economic according to the forecasts of Airbus as the one ofnetworks which will have long-lasting prominent the leaders of aircraft manufacturing industry, it willimpacts. surpass 35,000 in 20342. Airbus also affirms that the similar increase trend will be observed in the globalThe improved movement of goods and people also freight fleet: the freight fleet is expected to reach atstimulates the economic and social integration of 2,687 with an additional 1,054 freight planes3.societies. As the second largest intercontinental 1 ATAG Report 2014 and IATA Statistics organization in the world, for OIC, these social 2 Airbus Global Market Forecast (GMF) 2015 Bookletand economic benefits of aviation (in other world 3 Airbus Global Market Forecast (GMF) 2015 Booklet connectivity) become more vital. If the distributionwww.comcec.org n www.shgm.gov.tr 14

3.5x 58.1 3,864 More Productive Million USD Active AirportsAviation jobs are more productive than Number of jobs supported by civil Airports with scheduled commercial other jobs aviation flights1.3.1. ECONOMIC IMPACTS OF CIVIL ATAG group has revealed that in 2012 more than 8.7AVIATION million jobs were directly created by aviation sector. With this direct employment, aviation industryBeside its stimulating impact on trade, tourism and created $606 billion contribution to world’s GDP ininternational integration, aviation industry itself is 20124.a generator of employment and economic activity.Airport operations, airline operations, air traffic If the global GDP contribution of aviation industryand navigation services, air craft and spare part is compared to other outstanding industries, themanufacturing are just a few examples of direct importance of the economic impact of aviationemployment areas of aviation industry. 2014 report industry will be better comprehended.of ATAG which is mainly based on Oxford Economicsstudies on more than 50 countries is the most detailed 4 Oxford Economicsstudy conducted about aviation employment world-wide.According to the mentioned study, the distribution of direct employment is given below:• 2.3 million jobs (26% of the total) worked for airlines or handling agents (for example, flight crew, check-in staff, maintenance crew, reservations and head office staff).• 470,000 (5% of total) worked for airport operator.• 4.6 million other entities in the airports such as restaurants, retail shops etc.• 1.2 million people (14% of total) were employed by aerospace manufacturers.• 2% of the total as 195,000 people were employed in the positions generated by air navigation service.15 www.comcec.org n www.shgm.gov.tr

Global Industry Direct GDP Effect $606 billion Aviation Industry $451 billionPharmaceuticals Industry $223 billion $555 billion Textile $1,282 billion Automotive Industry $984 billion Chemical IndustryFood and Beverage SectorTable-4 World Revenue Traffic - International (Source: ACI, Airports Council International) According to Oxford Economics, the aviation sector as a whole including Emirates Airline (flag-carrier)and Dubai Airports and other sector players created 27% of Dubai’s total GDP in 2013 with $26.7 billion of contribution.Beside its direct effects on the economy by in 2012. The expenditures of these indirect and direct generating and supporting employment, employment supported 4.6 million new jobs which is aviation has also very significant multiplier effects the induced impact. on global economy as well as regional economies. Over 9.8 million indirect jobs globally are supported Dubai Example: The Rising Aerotropolis of OIC through the purchase of goods and services by According to Oxford Economics, the aviation sector companies in the air transport industry1. According as a whole including Emirates Airline (flag-carrier) to ATAG 2014 report, this indirect employment and Dubai Airports and other sector players created globally created additional $697 billion to global GDP 27% of Dubai’s total GDP in 2013 with $26.7 billion of contribution. The jobs supported by aviation sector in 1 ATAG 2014 ReportFigure-1 Gravity of Center (Air Transport Traffic), Source: Airbus Global Market Forecast 2012 16www.comcec.org n www.shgm.gov.tr

Figure-2 Already Congested Airports, Retrieved from Airbus GMF 2015 Already Congested According to Airbus Global Market Forecast 2015, 39 out of the 47 Aviation Mega Cities are schedule- constrained today. IATA WSG level 1: airport infrastructure is adequate IATA WSG level 2: airports with potential for congestion IATA WSG level 3: airports where conditions make it impossible to meet demandDubai was 416,500. Oxford Economics estimated that The crucial point is to fix this center in the centeraviation had a core impact of $16.5 billion GVA (gross of OIC region. There are mainly two basic ways tovalue added) in Dubai in 2013. This total core impact reach this goal: To increase the passenger trafficincludes direct, indirect and induced contributions and to increase the cargo traffic. However, thesewhich means 16.5% of total GDP and more than two solutions intersect on a unique point which is to256,000 Dubai based jobs. create or enhance international hubs, in other world airports.Oxford Economics affirms that aviation will create$53.1 billion contribution to Dubai’s economy, 37.5 Aside of this reality, there are ongoing andper cent to its GDP and will support over 750,000 potential bottlenecks both in the mentionedjobs by 2020. Dubai International Airport (DXB) is and other international airports in OIC region. As it isestimated to welcome 126.5 million passengers by seen in Figure-2, Airbus analysts depict the congested2020, which is 30% higher than their 2010 forecasts. airports which also include the outstandingThe same studies prove that every 100 jobs created international airports of OIC. To alleviate the existingin aviation result in additional 116 new jobs in Dubai2. and potential hazardous effects of congestion, there are several remedies. The first solution is constructingHow to maximize and assure these benefits? new airports or expanding new airports, which is aAccording to the analysts of Airbus and many long term and expensive move. The first question tohighlighted aviation researches, the gravity center of be asked is whether these airports are used efficientlyair transport traffic is following a geographical route and effectively. For this very reason, our researchon the globe as it is shown in Figure-1. This gravity team conducted a benchmarking study on the 6center can be summarized as the intersection point outstanding international airports of OIC: Istanbulof all commercial flights regarding the current time. Atatürk International Airport, Dubai InternationalThese eastward shift is directly affected by the Airport, Doha Hamad International Airport, Kuwaitgrowing passenger traffic in Istanbul, Doha, Dubai, International Airport, Kuala Lumpur InternationalAbu Dhabi, Kuala Lumpur, Jakarta, India and China. Airport and Jakarta Soekarno-Hatta International Airport.2 Oxford Economics17 www.comcec.org n www.shgm.gov.tr

Country 2009 Carried Passenger Volumes 2014 2010 2011 2012 2013 Turkey Indonesia 31,339,441 45,665,249 53,500,303 63,350,312 82,647,519 92,624,865 Malaysia 27,421,235 59,384,362 70,912,258 79,405,800 88,594,513 94,504,086 Qatar Kuwait 23,766,316 34,239,014 38,218,609 39,165,195 46,829,505 47,555,553United Arab Emirates Total of 6 Countries 10,211,229 12,391,268 14,568,106 17,187,171 18,737,348 21,425,066 OIC Total World Total 2,597,076 4,563,082 3,722,730 3,481,039 3,244,809 3,408,255 31,761,631 44,948,144 50,342,892 59,948,767 68,151,872 76,309,915 127,096,928 201,191,119 231,264,898 262,538,284 308,205,566 335,827,740 208,923,665 311,392,494 348,306,767 382,286,861 429,779,835 459,712,637 2,249,518,122 2,628,231,063 2,786,918,946 2,894,035,637 3,050,796,411 3,213,664,822 % 9.29% 11.85% 12.50% 13.21% 14.09% 14.30%Table-5 Annual Air Passenger Traffic in Selected Countries, Source: World Bank & IATAYear Total of Selected Countries OIC Total Share in OIC Traffic2009 127,096,928 208,923,665 60.83%2010 201,191,119 311,392,494 64.61%2011 231,264,898 348,306,767 66.40%2012 262,538,284 382,286,861 68.68%2013 308,205,566 429,779,835 71.71%2014 335,827,740 459,712,637 73.05%Table-6 Selected Countries’ Share of Passenger Traffic in OIC Total Traffic, Source: World Bank & IATAThe main criteria for selection of the aforementioned airports was the existing and forecasted annual passengertraffic volumes.As it is given in the tables above, by 2014, air carriers registered in the selected 6 countries compromises morethan 70% of the total air traffic among OIC states. Therefore, it is believed that the home bases of these airlines(selected airports) have key roles in the shift of the gravity center.www.comcec.org n www.shgm.gov.tr 18

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PART-IILITERATURE REVIEWwww.comcec.org n www.shgm.gov.tr 20

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PART-IILITERATURE REVIEWTHERE ARE VARIOUS BENCHMARKING STUDIESBUT ARE THEY PRACTICABLE?Due toits nature, there are a lot of Due to this fact, both academic and industry key players in the aviation researchers regularly conduct passenger perceptions sector and it can be said that the airports have a of airport service quality and operational efficiency crucial importance and are the bottlenecks of this measurements to benchmark performance metrics sector. Regardless of purpose, the journey experience directly from the voice of the customer (Chen, 2002), of a passenger starts at the airport and during this to identify opportunities for service improvement experience the passenger has faced different type of (Yeh and Kuo,2002) and to avoid losing passenger procedures which consist of a lot factors. traffic (Rhoades et al., 2000).As being aware of evaluating the passenger as a Service quality has been studied in businesscustomer – and like all other sectors-, customer management for a long time (Martinez Carosatisfaction has the most priority for the airport Martinez Garcia, 2007). Zeithaml et al. (1996) indicatemanagers. that a better understanding of what customers expect has been the most crucial step in definingAs the aviation – therefore- airport industry is and delivering high service quality and satisfy thechanging rapidly; it can be said that there is an customers. SERVQUAL has been identified as aincreasing urgency among airport operators to framework of service quality. This scale has beendifferentiate themselves by meeting the needs of widely applied by both academic and operationalcustomers better than the competition. (Fodness and managers across industries in different countries forMurray,2007) different goals. While Parasuman, Zeithaml and BerryAs being aware of evaluating the passenger as a customer – and like all other sectors-, customer satisfaction has the most priority for the airport managers. There is an increasing urgency among airport operators to differentiate themselves by meeting the needs of customers better than the competition.www.comcec.org n www.shgm.gov.tr 22

“The rate of growth in air transportation traffic will accentuate the need for regional investment to support and expand aviationinfrastructure, including airport and airspace capacity. Even though plans include multiple new airports for the region—incountries such as Indonesia, the Philippines, and Vietnam—and the expansion of multiple existing airports, some key airportswill still experience congestion. Government policies that support aviation, and continued investment in infrastructure, thus remain critical to growth of aviation in the region.“ (Current Market Outlook 2015-2034, Boeing) The idea behind the PMPI concept is to provide governments and airport operators with a tool [where particularly new infrastructure opportunity is weak] to maximize the efficiency of airports facing with new congestion struggles boosted by the entrance of large aircrafts such as Airbus A380. (1985) propose 10 dimensions of SERVQUAL items on overall the airline industry. However, service quality, Parasuman et al. service quality and satisfaction. there are certain limitations in (1988) reduce these 10 dimensions A performance-based model of this measure. One limitation, on to five. service quality (SERVPERF) was the basis of Parasuraman et al.’s developed by Cronin and Taylor (1988) study, is that quality is anFick and Ritchie (1991) use the (1992). SERVPERF measures enduring global attitude towards SERVQUAL scale to measure service quality based only on a service but SERVPERF measures customers’ perceptions of customers’ perceptions of the satisfaction related to a specific service quality within several performance of a service provider transaction. Another limitation service industries including the (Cronin & Taylor, 1994). In general, concerns the generic nature of airline. However, they mention SERVPERF has been proven the SERVPERF scale (Ostrowski, that this scale fails to determine to be applicable and useful in O’Brien, & Gordon, 1993). Although the relative impact of various measuring service quality in this measure is generic enough to23 www.comcec.org n www.shgm.gov.tr

Monthly Landings at Top 100 Airports Square size: ASKs (Available Seats Kms) Square colour: nr of landings per runway Sources: OAG (September 2014), Airbus GMF Increasing traffic will accentuate the importance of passenger movement performance. 1,000 5,500 10,000be applied to measure perceived quality of various clearly better than SERVQUAL and SERVPERF inservices, it has failed to capture industry-specific terms of its validity and reliability (Robledo, 2001).dimensions underlying passengers’ perceptions of This measure provides a more valid explanationquality in the airline industry (Cunningham, Young, & of service quality because of its predictive validity.Lee, 2004). In addition, SERVPEX explains a higher proportion of the variation of the service quality variable thanAccording to Robledo (2001), SERVPEX measures SERVQUAL and SERVPERF (Robledo, 2001). Robledo disconfirmation in a single questionnaire. (2001) concludes that overall SERVPEX provides theSimilarly, Ling, Lin, and Lu (2005) identify SERVPEX most appropriate results for the airline industry.as the measurement scale to define airline service However, no substantive difference exists betweenquality. This measure incorporates expectations and SERVPEX and SERVQUAL (Lee, Kim, Hemmington, &perceptions into a single scale, ranging from much Yun, 2004). Alternatively, Dabholkar, Shepherd, andworse than expected to much better than expected. Thorpe (2000) indicate that SERVPEX is superior toAccording to Robledo (2001), SERVPEX includes three SERVQUAL but inferior to SERVPERF, according todimensions: tangibles, reliability and customer their data analysis.care. Lu and Ling (2008) note that this measure ismore easily under- stood by passengers evaluating Several studies have identified that the existingairline service quality according to their experiences measurement of service quality through theand expectations. In general, SERVPEX performs SERVQUAL, SERVPERF and SERVPEX scales isThere are a lot of dimensions in the airport benchmarking with the view of passenger which means it is really hard to explain or formulate a generic approach to cover all the variables to identify and benchmark the airports performance.www.comcec.org n www.shgm.gov.tr 24

The need for a practicable tool Although there are studies regarding the passenger satisfaction, there is no pioneering practicable study exist to score and benchmark the airport efficiency or score the passenger movement.insufficiently comprehensive to capture the identifying the importance of items and scoring themservice quality construct in the air transport sector after a set of regression analysis.(Cunningham et al., 2004; Dabholkar et al., 2000;Lee et al., 2004; Park et al., 2006). It is therefore Earlier studies of airport service levels focused onimportant to re-examine the dimensions of service operational standards defined by queuing time,quality within the air transport sector. service lead time, space, physical facilities, and so on. However, there is a move towards a more passenger-There are a lot of dimensions in the airport orientated mind-set, which is a welcome change forbenchmarking with the view of passenger which today’s highly competitive air transport market. Themeans it is really hard to explain or formulate a overall airport experience perceived and recollectedgeneric approach to cover all the variables to identify by international travelers may have a significantand benchmark the airports performance. impact by either promoting or discouraging theTherefore, this study aims to cluster only one of further development of international tourism andthe most important items of passenger satisfaction business activities in the corresponding country.and airport operations. As Rodrigez and Dorta Stronger consumer awareness means that passengers(2014) mention that when large samples are used to pay more attention to the details of services. The factestimate airport efficiency, clustering is a necessary that they do not hesitate to complain to the media isstep before carrying out any benchmarking analysis. harmful to the airport’s reputation. Therefore, airportAlthough there are a lot studies regarding the operators must constantly evaluate their facilitiespassenger satisfaction, there is no pioneering study and service processes to better meet passengerexist to score and benchmark the airport efficiency or needs.score the passenger movement. In addition, airports, as natural monopolies of theirThis study aims to score and benchmark the time market, have tended to create a take-it or leave-itspent by passenger for all the procedures by proposition in the point of view of its customers.25 www.comcec.org n www.shgm.gov.tr

PART-IIIBENCHMARKING MODEL AND THE METHODOLOGY OF THE PROJECTwww.comcec.org n www.shgm.gov.tr 26

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PART-IIIBENCHMARKING MODELAND THE METHODOLOGY OF THEPROJECTThe data collection and analyzing stages of this study were twofold; quantitative and qualitative. These twostages were examined in four particular steps:1Firstly, a questionnaire was used as primary six mentioned airports. Within the given time period, data collection tool for passengers’ perception 162 questionnaires were completed. of the importance of the processes. The project members conducted the said questionnaires During the data screening process, questionnaires at six International Airports, at the different areas having extreme values (8 %) excluded from the of international departure terminal (floor). The analysis. As a result, the final sample size decreased respondents were selected through judgement to 150, (92,5%) response rate. The majority of the sampling, which, in this case, involved the choice respondents were male (62%), between 25-48 years of passengers who were convenient to provide the old (44,2%), and traveled for leisure purposes (72%). information required for the study, during the peak hours in order to take their opinions at a moment of 2Project team members measured more than high demand. 1200 passengers regarding the time they spent at the check-in, passport and security The items were aligned with industry best practices queues. Each of the processes was measured by (ACI, 2012; Hazel et al., 2011; IATA, 2012) and previous both regarding the waiting time and processing time. studies (Bandeira et al., 2014; Correia et al., 2008; Eboli Project team members divided into two groups for and Mazzulla, 2009; Yeh and Kuo, 2003). Passengers measuring and conducting the surveys for the same were asked to rate each item according to an ordinal passengers in order to get the most reliable scoring. 5 point Likert Scale. 3Although the aim of this study was measuring A self-administered questionnaire was used to obtain and setting up a benchmarking formula data over the period 20 August- 20 December 2015, in for the airports in the OIC Region; projectwww.comcec.org n www.shgm.gov.tr 28

More than 1,200 Observation Project team members measured more than 1200 passengers regarding the time they spent at the check-in, passport and security queues. Each of the processes was measured by both regarding the waiting time and processing time.team members also conducted overall satisfaction web. Following the data collection via web spiders,surveys in order to reveal the satisfaction levels of collected data was analyzed by Atlas.Ti comparativepassengers other than time spent. analysis software.Beside their study field and overall satisfaction 4Project team members also conducted somesurveys, project team also employed a web-spider observations and meetings regarding thesoftware to determine satisfaction level of the facilities/best practices of the mentionedpassengers from their comments on the world wide airports which will be given at the end of the report.For the project, previously a draft model for the benchmarking was discussed and in order to combine themeasurement values and the satisfaction values of the passengers, below mentioned items were planned tobe selected:• Pre-security waiting time (N/A in some airports), • Passport waiting time,• Pre-security processing time (N/A in some • Passport processing time, • Security waiting time, airports), • Security processing time,• Check-in waiting time, • Walking times,• Check-in processing time,The common point of all these items is “time” which constitutes the “time spent” by passengers and can bethought as the “Passenger Performance Measurement Index”.After starting on site visits to airports it was realized that there is no pre-security item in all airports. So pre-security was extracted from the scope of the study.29 www.comcec.org n www.shgm.gov.tr

During the first on-site visit to Turkey, it was realized 3.1. STEP 1 – ANALYSIS AND SURVEYS:that the security was located right after passportcontrol point. As the police officers did not let First step of the benchmarking study was the timethe project members to work on that area, it was based measurements of project team and surveysnot possible to measure the security waiting and done with passengers. Air passengers at differentprocessing times separately. Another point is that, airports were asked;the passport waiting time can be thought as thebottleneck operation of passport and security items, • To rate the satisfaction level of the items statedso it was not also possible to examine a meaningful above,queue in the security line in most of the airports. Sosecurity waiting and processing time is also extracted • To rate the importance of the items,from the scope of the study. All these ratings were to be selected between 1-5For the analysis of this final report, time based items scales (Likert Scale) where 1 refers to “very bad” andare simplified as followed; 5 refers to “very good”. Passengers were expected to• Check-in waiting time, rate the satisfaction of that specific item and the im-• Check-in processing time, portance of that specific item independently.• Passport waiting time,• Passport processing time, 3.1.1. FINDING THE IMPORTANCE LEVELS OF• Walking distance times ITEMS The first point is to detect the importance levels of the processes. As to give the basics of the mentality for 2 different process for 3 different countries as illustrated in Table-7.www.comcec.org n www.shgm.gov.tr 30

Process S Process C Total Level of Importance Passenger PerceptionCountry 1 s1 c1 s1 + c1 To be able to reveal the importance levels ofCountry 2 s2 c2 s2 + c2 aforementioned time-based variables, more than 160 eligible face to face surveys were conductedCountry 3 s3 c3 s3 + c3 during the field studies in 6 International Airports within OIC Region. Total s1 + s2 + s3 c1 + c2 + c3Table-7 Calculation of the importance level indicators Level of Importance Process S = S1 + S2 + S3 (S1 + S2 + S3) + (C1 + C2 + C3) Level of Importance Process C = C1 + C2 + C3 (S1 + S2 + S3) + (C1 + C2 + C3)To give the general formula for the importance levels of the processes; Importance of any process i = ∑1n Processi ∑1k ∑n1 ProcessikProject members asked 103 different passengers in 6 different airports to rate the importance of check- inwaiting, check-in processing, passport waiting, passport processing and walking times. The findings regardingthe importance levels of the selected items can be seen in Table-8.31 www.comcec.org n www.shgm.gov.tr

Passenger # Check-in Check-in Passport Passport Walking Time TOTAL Waiting Time Proc.Time Waiting Time Proc. Time 15ISTANBUL ATATÜRK INTERNATIONAL AIRPORT 152413 17 243514 16DUBAI INTERNATIONAL AIRPORT 333424 19 452525 15 542333 15 651423 14 733422 15 842414 16 953332 18 10 5 3 4 3 3 17 11 4 3 3 2 5 17 12 5 2 4 2 4 15 13 4 4 3 1 3 17 14 5 4 4 2 2 16 15 3 3 4 3 3 15 16 5 3 2 2 3 12 17 4 2 3 1 2 16 18 5 1 4 3 3 16 19 4 3 4 2 3 15 20 3 2 5 1 4 14 21 4 3 4 1 2 16 22 5 4 3 2 2 17 23 5 3 3 3 3 16 24 4 2 4 2 4 17 142524 16 233523 17 342434 15 441325 16 552414 16 642433 16 753332 13 832422 17 953513 14 10 4 1 3 3 3 14 11 5 1 4 2 2 14 12 3 2 5 1 3 16 13 4 3 4 3 2 14 14 5 2 4 2 1 14 15 4 3 3 3 1 17 16 5 3 5 2 2 17 17 5 2 4 3 3 13 18 4 3 4 1 1 15 19 4 2 5 2 2 15 20 5 4 3 2 1 12 21 4 1 3 1 3Table-8 Detection of Importance Levels of Processeswww.comcec.org n www.shgm.gov.tr 32

Passenger # Check-in Check-in Passport Passport Walking Time TOTAL Waiting Time Proc.Time Waiting Time Proc. Time 3 14DOH HAMAD INTERNATIONAL AIRPORT 14 2 4 1 5 19 25 3 4 2 3 14 34 2 4 1 4 17 45 1 5 2 3 17 54 3 5 2 3 17 65 2 4 3 4 17 75 3 3 2 2 15 84 2 4 3 3 16 95 2 5 1 4 13 10 4 1 2 2 3 16 11 5 4 3 1 4 16 12 4 2 4 2 3 15 13 5 2 4 1 4 17 14 5 1 5 2 3 15 15 4 1 4 3 2 15 16 5 2 3 3 3 17 17 5 1 4 4 4 18 18 4 2 5 3Table-8 (Continued) Detection of Importance Levels of ProcessesAfter using the general formula for finding the importance levels by dividing the total score of processes to thetotal score of all items, the importance level of each item was found like below; Check-in Check-in Passport Passport Walking Dist. TOTAL Waiting Time Proc. Time Waiting Time Proc. Time TimeImportance Level 28% 14% 25% 13% 20% 100%Table-9 Selected Countries’ Share of Passenger Traffic in OIC Total Traffic, Source: World Bank & IATAAnother option for determining the importance levels of the items may be making regression analysis orstatistical methods and different survey methodologies (such as expecting passengers to rate the importancelevels of different items in comparison with others or by giving an overall importance). For this study, it wasassumed that there is a linear proportion between the items and total score. A view from Atatürk International Airport www.comcec.org n www.shgm.gov.tr33

Figure-3 Single Queue Figure-4 Disney Type Queue3.1.2. MEASUREMENTS AND SATISFACTION 1Check-in Waiting TimeSURVEYS OF PROCESSES A project team member stands in an area where he/she can see the beginning and end of the queueProject members attended on site visits to 6 at the same time. The project member waits until different airports. The main concept of this a significant number of people enters to the queue step was to measure the exact time spent by the and selects the last passenger who enters the queue. passengers. For each item and each airport there was Project member starts the clock after selecting the different type of measurement style. For instance, last passenger and waits until the last passenger Turkey is using the Disney type queuing whereas reaching the check-in counter. When the passenger Malaysia is using regular single queues. reaches the check-in counter, the project member stops the clock and notes down the time spent. A project member was located in an appropriate place to measure the time spent by the passengers for 2Check-in Process Time waiting and processing times of check-in and passport A project team member stands in an area where control. In order to measure the waiting times, it was he/she can see the beginning and end of check- in waited to see a meaningful queue. Otherwise it is process. The project member starts the clock when not possible to see the worst case situation. After a the passenger reaches the check-in counter and waits meaningful queue (it differs between countries) is until the passenger or passengers finish their check- observed, the last person in the queue is selected to in procedures and get their boarding passes. Project be measured and the time clock is started. Regardless member stops the clock when the passenger leaves of the queue type, when the last person comes to a the check-in counter and notes down the time spent. check-in counter, the measurement time is stopped If there is more than 1 passenger during a check-in and noted down. The total time spent from the 1st process (a family, group of passengers checking in at person to last person will be taken as the time spent the same counter, etc.), the average value of the total for that item. time spent must be taken by diving it to number of passengers. The detailed measurement method for each procedure is explained below:www.comcec.org n www.shgm.gov.tr 34

3Passport Waiting Time 5Check-in Process Time A project team member stands in an area where A project team member stands right after thehe/she can see the beginning and end of the queue passport control point – sterile area (in some airportsat the same time. The project member waits until a after security check point) and waits for a randomsignificant number of people enters to the passport passenger. The project member starts the clock whenqueue and selects the last passenger who enters the passenger reaches the begging of sterile area andthe queue. Project member starts the clock after accompanies the passenger to the gate of the flight.selecting the last passenger and waits until the last Project member stops the clock when the passengerpassenger reaching the passport control point. When reaches the gate and notes down the time spent.the passenger reaches the passport control point,the project member stops the clock and notes down 6Satisfaction Surveysthe time spent. After each of this steps explained above, a project team member must ask that specific passenger or4Passport Process Time passenger group about his/her satisfaction level for A project team member stands in an area where that specific process. By this means, the satisfactionhe/she can see the beginning and end of check- in levels for those specific measurements can beprocess. The project member starts the clock when obtained.the passenger reaches the check-in counter and waits In order to obtain robust and reliable results, theuntil the passenger or passengers finish their check- measurements must be done as much as possiblein procedures and get their boarding passes. Project preferably more than 1.000 times for airports whomember stops the clock when the passenger leaves has more than 10.000.000 passengers per year.the check-in counter and notes down the time spent. In order to obtain Average Times spent in each item,If there is more than 1 passenger during a passport more than 1.200 samples were collected duringprocess (a family, group of passengers controlled at the field studies. The sample size of Check-in andthe same passport control point, etc.), the average Passport processing times and walking distancevalue of the total time spent must be taken by diving times refer to single passenger whereas the sampleit to number of passengers. size of check-in and passport waiting times refers to number of queues observed. SATISFACTION & TIME One of the critical points of the project was to measure the exact time spent by the passengers and simultaneously to interview the same passengers (as much as possible) who have been observed for the time measurements.35 www.comcec.org n www.shgm.gov.tr

PMPI Score of Country A = TOTAL ((5,332628-241,206 x check-in waiting time)x0,28) ((4,776481-626,022 x check-in process time)x 0,14) ((3,788487+19,74688 x passport waiting time )x 0,25) ((4,601768-948,038 x passport process time )x 0,13) ((6,120794-644,475 x walking distance time )x 0,20)To be able to reach the accurate results, time values must be observed in terms of seconds and it must be used as seconds in the formula.3..2. STEP 2 - BENCHMARKING METHODOLOGY: The time values must be observed in terms of seconds and it must be used as seconds in the formula.After collecting the measurement data from theprocesses and survey results, the data must be run Any country can use this formula by measuring itsfor regression analysis. The average satisfaction own processes according to the methods explained.rates for a specific process and time spent for the The key point is that; the observations must be donesame process are put into regression analysis. It in a very professional way in order to get an accuratewas seen that for 3 processes (check-in waiting time, benchmark score.check- in process time, walking distance time), the R2values and significant level were meaningful whereas 3.3. PMPI AND THE BENCHMARK SCORES OFthe values for passport waiting time and passport THE COUNTRIESprocess time were not as correlated as othervariables. If the sample size of these variables were It has been explained in the first part of the studyable to be increased, it is believed that the correlation how to score the airports in order to benchmark. Inlevel would be significant. As because of time and this part, the benchmarking tool will be applied tobudget limitation – therefore limited sample size, airports.the correlation between satisfaction and time valuesof passport waiting time and passport process was 3.3.1. OBSERVATIONS AND SAMPLE SIZEaccepted to be used in the benchmark formula. After conducting all field studies, the number of observations in each airport is shown in Table-10.After regression analysis, the general formula for the Because of budget and time constraints, the project“Passenger Movement Performance Index – PMPI” team was not able to conduct more observationshas been generated as given at the top of the page. especially in the check-in and passport waiting times and walking distances. For further studies,www.comcec.org n www.shgm.gov.tr 36

Check-in Check-in Passport Passport Walking Waiting Time Processing Time Waiting Time Processing Time Distance Time 13 156 12Atatürk Airport 12 84 6 189 12 Dubai Airport 8 78 8Hamad Airport 10 82 10 78 8Kuwait Airport 7 75 6 Kuala Lumpur 12 84 6 82 7Soekarno-Hatta 62 559 48 80 9 Total 73 8 62 8 564 52Table-10 Observed passengersthese processes may be examined again and 3.3.2. AVERAGE TIME SPENT IN PROCESSESmore observations can be collected for futuredevelopments. For the check-in and passport After the observations all the data are collected andprocessing times, it is believed that there is significant they are simplified by forming the average time spentamount of meaningful data for the analysis. for all processes. The average time spent for each procedure in all airports and the average time for all six airports is shown in table 11. AVERAGE TIME SPENT IN THE PROCESSES Check-in Check-in Passport Passport Walking Waiting Time Distance Time Processing Time Waiting Time Processing Time 00:10:04 00:05:55Atatürk Airport 00:05:17 00:01:31 00:14:18 00:00:41 00:06:13 Dubai Airport 00:04:59 00:02:10 00:10:15 00:00:44 00:04:41Hamad Airport 00:12:53 00:02:11 00:11:05 00:01:04 00:03:23Kuwait Airport 00:09:40 00:02:35 00:07:51 00:00:42 00:04:59 Kuala LumpurSoekarno-Hatta 00:15:07 00:01:37 00:07:08 00:00:41 00:05:14 Average 00:09:40 00:02:36 00:05:29 00:00:48 00:05:04 00:02:07 00:09:21 00:00:47Table-11 Average time spent in processesAtatürk Airport Check-in Check-in Passport Passport Walking Dubai Airport Waiting Time Processing Time Waiting Time Processing Time Distance TimeHamad AirportKuwait Airport 4,04 4,27 3,95 4,09 3,11 Kuala Lumpur 4,55 4,07 4,09 3,95 3,50Soekarno-Hatta 4,40 3,91 3,82 4,32 4,17 3,30 3,64 3,95 4,36 4,50 Average 3,90 3,77 3,91 4,14 4,00 2,90 3,50 3,77 3,95 3,83 3,85 3,86 3,92 4,14 3,85Table-12 Average Satisfaction Levels37 www.comcec.org n www.shgm.gov.tr

It is believed that airport operators should establish PMPI teams to conduct analysis and measurements during all seasons. By doing so, airports will be able to monitor the bottlenecks in the processes and take necessary actions to keep customer satisfaction at its peak point.As it can be seen from Table-11, “check-in and time values, the other project member was waitingpassport processing times” are almost the same the passengers to survey about his/her satisfactionin all 6 countries in terms of minutes and seconds level of that process from 1-5 scale (1 very bad – 5and the change compared to the mean is less than very good). As an example, a member of the projectthe other processes such as “check-in and passport waited for passengers to finish the process of check-waiting time and walking distance time”. The biggest in and as soon as the passenger finishes his check-change is seen in the check-in waiting times which are in procedures, a single question interview wasalso related to the flag carriers of the airports such conducted to rate the perception of the passengeras Turkish Airlines, Emirates, Qatar Airways, etc. As for that procedure. According to the surveys, thecheck-in counters are operated by the staff of the satisfaction survey results are shown in Table-12.carriers, it is somehow related to the initiatives of thecarriers. It was observed that, even there are someavailable counters, the carriers do not open all thecounters to reduce the queues.3.3.3. SATISFACTION LEVELSLikewise, the average satisfaction level will be usedfor the interviewed people during this process. Whileone of the project members was measuring thewww.comcec.org n www.shgm.gov.tr 38

PMPI Score of Country A = TOTAL ((5,332628-241,206 x check in waiting time)x0,28) ((4,776481-626,022 x check-in process time)x 0,14) ((3,788487+19,74688 x passport waiting time )x 0,25) ((4,601768-948,038 x passport process time )x 0,13) ((6,120794-644,475 x walking distance time )x 0,20)3.3.4. PMPI BENCHMARK SCORES OF COUNTRIES According to the table above, it is seen that “Hamad International Airport” ranks as the 1st airport in termsAs it can be remembered, the formula for the PMPI is of PMPI Index by collecting 82 points and “Soekarno-as given above. Hatta International Airport” ranks as 6th airport in all observed airports.After making the relevant regression analysis, thebenchmark formula was generated. By using themeasured average values for each process for eachairport, the airport benchmark scores are firstlyfound in 1-5 Scale and converted to 0-100 scale bymultiplying with a coefficient of 20. The benchmarkscores are found as given in Table-13. TIME SCORE Passport Check-in Check-in Waiting Passport Walking Total Total Waiting Processing Processing Distance (1-5 Scale) (1-100 1,01 Scale) 0,58 1,00 0,52 0,70 Atatürk Airport 1,05 0,54 1,00 0,51 0,67 3,86 77 Dubai Airport 1,25 0,54 0,99 0,49 0,81 Hamad Airport 1,26 0,52 0,99 0,52 0,93 3,98 80 Kuwait Airport 0,93 0,58 0,98 0,52 0,79 Kuala Lumpur 1,06 0,52 0,51 0,76 4,11 82 Soekarno-Hatta 0,83Table-13 PMPI Scores 3,88 78 3,93 79 3,60 7239 www.comcec.org n www.shgm.gov.tr

PART-IVAbout the Airports 40

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4.1.DUBAI INTERNATIONALDUBAI INTERNATIONAL AIRPORTIATA: DXBRANK AIRPORT PASSENGERS RANK AIRPORT PASSENGERS 1 London W, U.K. 2,626,357 1 India 8.908.362 2 Doha, QATAR 2,355,959 2 United Kingdom 5.381.909 3 Kuwait City, KUWAIT 1,942,479 3 Saudi Arabia 4.883.438 4 Mumbai, India 1,939,116 4 Pakistan 3.313.431 5 Jeddah, K.S.A. 1,699,061 Table-15 Top Country Destination from DXB (2014)Table-14 Most Occupied Destinations from DXB (2014)4.1.1. GENERAL INFORMATION Home of Emirates and FlyDubaiThe major aviation hub of the Middle East DXB is home base for Emirates and FlyDubai: AsAs the major aviation hub in the Middle East and the largest airline hub in the Middle East, Emiratesthe main airport in Dubai, DXB (Dubai International manages 64% of all passenger traffic and constitutesAirport) is one of the top five in the world for 50% of all aircraft movement in DXB. 10.7% of theinternational passengers and cargo traffic. Dubai’s passenger traffic in DXB is handled by FlyDubai whicheconomic boom along with the successful expansion serves as low cost carrier.strategy of Emirates have catalyzed the traffic growthand soon Dubai has become the air traffic gravity Fastest Growing Airportcenter of the Middle East. The airport has three main terminals withLocation approximately 75 million annual passengers capacity.DXB is located in the Al Garhoud District, 4.6 km east Regarding aforementioned upgrades and openingof Dubai and spread over an area of approximately of Concourse D, the capacity will reach 90 million2.900 hectares as it is shown in the figure. passengers in 2018. Terminal 3, which is the secondwww.comcec.org n www.shgm.gov.tr 42

Dubai International In 2014 Dubai’s total passenger traffic including its two international airport was 73.1 million in 2014. DXB, itself signed a traffic of 70.4 million passengers, 2.36 million tonnes of cargo, 34.136 flight movements.Figure-5 Satellite View of DXBlargest building in the world by floor space and the top city destination, followed by Doha (2,355,959)world’s single largest terminal building, trebled the Kuwait (1,942,479) and Mumbai (1,939,116).capacity of DXB in 2008 (from 23 million to 60 million).This can be deemed as one of the pivotal landmarks The owner and the operator of the airport is Dubaiof DXB since in one year it resulted in 40 million Airports which also operates Al Maktoum Airport.passenger traffic and carried DXB to “fastest growing Dubai Airports was established as a commercial entityairport among top 50 major hubs”. in April 2007, following organizational restructuring of Dubai Department of Civil Aviation (DCA). DubaiDevelopment is Real International Airport is the main hub in the area and conceptualized as the bridge between the Middle EastSince its opening in 1960, DXB has been recording and Western World. DXB also hosts most of the ultra-15% annual growth on average. Currently, by serving long haul flights operated by Emirates and Qantas.to more than 66 million passengers a year, DXB isconnecting 260 destinations across 6 continents withmore than 140 scheduled airlines. It is forecastedthat at the end of this decade, 100 million passengerstarget will be caught.India remained Dubai International’s leadingdestination during the year with 8,908,362passengers, growing 6.0 per cent year on year from8,401,253 passengers in 2013. The UK, Saudi Arabiaand Pakistan followed India as Dubai International’slargest markets, while the US was the fastest-growingcountry among the top 10, with passenger numbersrising 18.5 per cent to 2,559,578 – growth spurred byEmirates Airlines’ new routes to Boston and Chicagoduring 2014. London (2,626,357 passengers) was the43 www.comcec.org n www.shgm.gov.tr

LONDON KUWAIT 1/3rd 2,626,357 1,942,479 of world’s population lives DOHA JEDDAH in 4 hours flight time from Dubai 2,355,959 1,699,061 MUMBAI 2/3rd 1,939,116 of world’s population BUSIEST ROUTES FROM DXB lives in 8 hours flight time from Dubai Source : www.dubaiairports.aeFigure-6 Busiest Routes from DXB, Infographic : alperakbas4.1.2. TERMINAL INFORMATION PREVIOUS NAME NEW NAME # of GATES4.1.2.1. TERMINAL 1 (SHEIKH RASHID TERMINAL) Concourse 1 Concourse C 49With the opening of Terminal 1 (also known as 31Sheikh Rashid Terminal) in 2008, DXB punctuated Concourse 2 Concourse B 26the start of a new chapter in Dubai’s Civil Aviation 10history by reaching 12.3 million passengers. Most Concourse 3 Concourse A 21of the Terminal 1 complex is made up by ConcourseC which is approximately 800 meters long and is Gates at Terminal 2 Concourse Fconnected to Terminal 1 check-in area by a 300-meterlong underground tunnel containing travellators Concourse 4 Concourse D(passenger movers). Currently, nearly 100 airlinesoperate in Terminal 1. Terminal 1 has the capacity Table-16 New Names of the Concourses in DXBto handle 20 million passengers annually. Transfer oftransit passenger between Terminal 1,2 and 3 takes Concourse Cabout 15-25 minutes according to the fact sheets ofDubai Airports. Concourse C as the part of Terminal 1 used to be the main concourse of DXB until the opening ofTerminal 1 consists of 221 check in counters which Concourse B in Terminal 3. Concourse C has 28has separate sections for business and First class air bridges and 22 remote gates which are located atpassengers. Arrivals at Terminal 1 in Dubai Airport the lower level of the Terminal. There exist 17 cafesare handled by 14 baggage reclaim belts and 40 and restaurants within the departure level of thepassport security control desks. concourse. Concourse C is part of Terminal 1 and is known as the Sheikh Rashid Terminal. This was in fact the main concourse at Dubai Airport before the opening of Concourse B in Terminal 3. Concourse C at Dubai Airport consists of 50 gates, 28 air bridges and 22 remote gates which are located at the lower level of the Terminal. The gates are labelled C1 to C50.www.comcec.org n www.shgm.gov.tr 44

Concourse D Foreign Carriers’ Home Concourse D located between Terminal 1 and Flower Center is designed in accordance with LEED (Leadership in Energy and Environment Design) principles.Figure-7 Concourse D Exterior, dubaiairports.aedeluxe 5 stars hotel with 6 junior suites and 2 royal transfer passengers in minutes. It must be stressedsuites, a business center, a health club. Concourse C here that Concourse D is designed in accordance withalso includes a Duty-Free shopping facility with an LEED (Leadership in Energy and Environment Design)area of 5,400 sqm. Emirates airlines who operates principles and it will be featured by solar panels toTerminal 3 exclusively also holds 12 gates and First provide its own energy. Another attractiveness ofClass and Business Class Lounges. British Airways, Concourse D is its location around the central atriumGulf Air, KLM and Star Alliance are other carriers who with short walking distances. Nevertheless, many passengers will prefer catching the elevated rail linkoperates their own dedicated lounges at Terminal 1. to enjoy the views of airport. Concourse D has special importance for Emirates since it will create moreConcourse D space for parking its aircrafts as the result of the shift of other carriers to Concourse D.Regarding the meteoric growth in passenger traffic,one of the milestones of Dubai’s Aviation as well With the opening of Concourse D, Emirates will takeas key element of SP2020 (Strategic Plan 2020, also over Concourse C along with Concourse A and Bmentioned as 2020 Master plan), is Concourse D which which it has already been operating. All airlines willwill host more than 100 airlines. With the opening of shift their operation to Concourse D or Al MaktoumConcourse D, the total passenger capacity of DXB will International Airport. The redevelopment of Terminalascend to the level of 90 million a year. Also, Terminal 1 will take more time according to Chris Garton, Dubai1 is under a major refurbishment program which will Airports Executive Vice President of operations.be coincided with the opening of Concourse D.Concourse D which is located between Terminal 1 andFlower Center will host 100 international carriers andaccommodate 18 million passengers per year withits 65,000 sqm area. The connection with Terminal1 via next generation train (built by Bombardier) will45 www.comcec.org n www.shgm.gov.tr

Terminal 2 Home of FlyDubai Dubai International Airport consists of 3 main terminals and 1 cargo mega terminal. Whilst Terminal 1 and 3 are connected buildings, Terminal 2 is a separate building. Today, Terminal 2 caters to more than 50 international airlines. Figure-8 A view from Terminal 24.1.2.2. TERMINAL 2 than 2400 peak hours for arrival and departure. Ter- minal 2 also hosts Air India Express and FlyDubai Cor-As the solution for the congestion in Terminal 1, porate head offices. All the upgrades and refurbish-Terminal 2 with an area of 47,000 sqm has been in- ments increased the facilities for passengers with aaugurated on May 1st, 1998. Terminal 2 caters to more spacious boarding area which is naturally andscheduled, charter and special interest flights during freshly illuminated. New Dubai Duty Free outlets, aspecial occasions. broader range of food outlets including a new Paul outlet, and the number of gates increased to 12 are allWith the expansions and refurbishment during 2007, the new advantages for passengers as new boardingthe capacity increased to 5 million passengers from gates are facilitating passenger and aircraft building.3 million passengers. Another additional expansion However, the only remarkable disadvantage for thein 2013 and upgrade completed towards the end of passenger is that Terminal 2 is set apart from other2014 increased the capacity of Terminal 2 to the lev- two main buildings and transfer of transit passengersel of 10 million passengers a year. Recent upgrades to Terminal 1 and 3 takes approximately 25 minutes.and refurbishments brought along a more spaciouscheck-in area with 48 counters, a newly expanded Home of FlyDubaitransfer area with seven new automatic tray returnsecurity screening machines, 40 additional immigra- Terminal 2 also hosts Air India Express and FlyDubaition and passport counters. Also, in departures, new Corporate head offices, besides catering to moreDubai Duty Free outlets and a broader range of food than 50 international airlines. The project costedoutlets were put into the service of passengers while more than $400 million.the number of gates increased to 12. In arrivals, thenumber of baggage carousels were increased to 6with three additional new baggage carousels.Today, Terminal 2 caters to more than 50 internation- Figure-9 Terminal 2 is home of FlyDubai, The LCC of Dubaial airlines mainly operating in Persian Gulf, with morewww.comcec.org n www.shgm.gov.tr 46

Terminal 3Largest TerminalTerminal 3 is the second largest building in the worldby floor space (1.7M sqm) and the world’s single largestterminal building. Figure-10 Hall of Terminal 34.1.2.3. TERMINAL 3 The partly underground Terminal 3 which is directlySingle Largest Terminal Building of the World connected to Concourse B comprises 5 Airbus A380 gates. There exist 82 moving walkways, 97 escalators,The construction of the second largest building in the 8 sky-trains (4 each at Arrivals and Departures), 157world by floor space (1.7M sqm) and the world’s sin- elevators, and 27 truck lifts. The departure and arriv-gle largest terminal building construction was started al halls which have been in operation since 2008 arein 2003, and it was inaugurated in 2008 to treble the approximately 10 meters beneath the DXB’s apron.capacity of DXB (from 23 million to 60 million). Ter- With 72 immigration counters, restaurants, Firstminal 3 comprises 2 concourses: A and B. Terminal 3 class and business class lounges, 1,870 car parkingis dedicated for the exclusive use of Emirates Airline spaces and 45 Emirates bus spaces. Terminal 3 has aespecially including its Concourse A which is a pur- multilevel underground structure.pose-built facility for A380. However, regarding the With 21 screening injection points, 49 make- up ca-code share agreement between Emirates and Qan- rousals, 90 km of conveyor belts capable of handlingtas, Qantas is the second and only carrier who is able 15,000 items per hour at a speed of 27 kmh, andto share this A380 dedicated concourse. 4,500 early baggage storage positions; the baggage handling system of DXB Terminal 3 can be deemed asThe partly underground Terminal 3 with its location the largest and deepest one in the world.underneath the taxiways is conceptualized in an in-novative design to facilitate passenger flow by re- 126 check-in counters for economy class passengers,ducing the walking distances. It is able to serve to 47 36 check-ins for first and business class passengers,million passengers a year with its conceptualized su- 18 self-service kiosks, 3 lounges for unaccompaniedperb passenger facilitation design. Indeed, with the minors, 38 counters with 12 e-gates for economy1.7M sqm floor space of Terminal 3, DXB is capable class passengers and 10 counters with 4 e-gates forof accommodating 60 million passengers a year. Cer- First & Business class passengers at immigration aretainly, this will change soon when Concourse D once of those key elements which ascend the attractive-opened. ness of DXB Terminal 3 for passengers.47 www.comcec.org n www.shgm.gov.tr

Concourse A Home of Emirates Concourse A as the world’s only A380 dedicated facility is serving as home base for Emirates Airlines which is the flag carrier of Dubai. Figure-11 Concourse A in Terminal 3Accessibility collect all baggage at Baggage Reclaim then transfer to their connecting terminal using public transport or DXB Terminal 3 is just a few kilometers away from the other private transport links. main centers of Dubai with its easy location on Airport Road in Garhoud. Availability of public transportation New developments in Terminal 3 is another attraction key for the passengers since Terminal 3 is well connected by public transfer According to this announcements of Dubai Airports, services of Dubai. The taxi station located in the “Once Concourse D has been opened and the arrival part of Terminal 3 makes it very easy to reach current airlines have been moved to the new facility, any part of the city for the passengers. But, the best Concourse C will undergo a refurbishment to practice for passengers to travel through the city and accommodate Emirates airline’s growing operation. also to Terminal 1 is the Dubai Metro Red Line. Dubai Concourse C will form part of the airline’s Terminal 3 Roads and Transport Authority’s electronic system operation which will be spread across concourses A, “Wojhati Journey Planner” enables the passenger to B and C”. This refurbishment will include reconfigured schedule their travel with the most accurate and up- stands to accommodate Emirates’ 777 and A380 to-date information. fleet, upgrades to the lounges and a revitalized food & beverage offering. Regarding the airside, newUnlike Terminal 2, transit passengers can easily improvements such as additional stop bars on the walk between Terminal 1 and Terminal 3 in taxiways, a new “follow the green” lighting system, approximately 20 minutes. There are also travellators increasing capacity on the airfield are also scheduled and escalators which reduce time and distance for the second half of 2015. between Terminal 1 and 3. It must be noted here that, Emirates passengers from Terminal 2 has the Concourse A (Concourse 3) advantage of Emirates Transfer Services while moving Concourse A which was opened in 2013 at a between Terminal 2 to Terminal 3. However, other passengers transferring through Terminal 2 at Dubai cost of $3.2 billion covers 528.000 sqm and spreads Airport should proceed through the Arrivals hall and across 11 floors. It is suited with 20 aircraft contact gates (all can handle A380, two appropriate for Boeingwww.comcec.org n www.shgm.gov.tr 48

$ 3.3 Billion 20 675,000 Spent for Aircraft Contact Gates sqm, the floor space of Concourse A Concourse BThe opening of Concourse A (CA) in CA is suited with 20 aircraft contact With its 675,000 m2 floor space, Con-2013, increased the capacity of DXB by gates (all can handle A380, two appro- course B is directly connected to Ter-additional 15 million passengers. priate for Boeing 777) and 13 remote minal 3. stands.777) and 13 remote stands. Concourse A as the Concourse B (Concourse 2)world’s only A380 dedicated facility is conceptualizedfor transferring passengers from Terminal 3 in Concourse B with its 675,000 m2 floor space isminutes via underground rail system which is also directly connected to Terminal 3. It is 945 meterscalled Automated People Mover (APM). Concourse A long, 90.8 meters wide and 39.5 meters high. It hasis distinguished from other airport facilities with its 10 floors (4 basements, Ground Floor, and 5 upperfirst class and business class lounges which have their floors). The Concourse is a multi-level structureown dedicated floors. Emirates handles 6 lounges (3 for departures and arrivals and includes 32 gates,for first class, 3 for business class). labelled B1 to B32. Concourse B at Dubai Airport also consists of 14 remote stands for Airbus A340’s andWhile Concourse A holds the highest business Boeing 777’s only. The remote gates at Concourse B class seating capacity with 2.552, Concourse have 5 boarding lounges and transit passengers areB has 1.400 and C has 596 seating capacity. The also well catered for with 62 transfer desks spreadlounges are the largest examples in the world by out across 3 transfer areas. Emirates First andcovering the entire length of the concourse which Business class lounges and the Marhaba lounge areare also distinguished with the opportunity of direct also located in Concourse B. The First Class, Businessaircraft access. DXB is distinguished with its food and Class and Marhaba Lounges have the capacity ofbeverage options with 14 cafes and restaurants, also. accommodating 1,800, 3,000 and 300 passengersGiraffe’s outlet, Jack Daniel’s Jack’s Sports Bar & Grill at a time, respectively. There exist 18 restaurantsare some of the international chains in DXB. in the food court, and a retail area of 10,700 sqmWith its capacity of 19 million passengers a year within Concourse B. The retail area is completelyand its connection to 2 major level of Terminal 3, operated by Dubai Duty Free. There are also 2 hotelsConcourse A (former Concourse 3) has one 5 stars and in Concourse B: A 4 stars hotel with 193 rooms and 14one 4 stars hotel, world’s largest first and business suites and a 5 stars hotel with 38 rooms and 8 suites.class lounges and duty free areas. Also, Concourse A Through the passenger walkways there is a directallows multi- level boarding. connection to Concourse C (Terminal 1), located at the control tower structure.49 www.comcec.org n www.shgm.gov.tr

4.1.3. KEY PLAYERS Australian and New Zealand destinations across theDUBAI AIRPORTS Qantas Network.Dubai Airports was established in 2008. It owns and FLYDUBAI AIRLINESmanages the operation and development of bothDubai International Airport and Al Maktoum Airport. FlyDubai airlines as the low cost carrier (with business class service in its services since 2012) of DubaiQANTAS AIRLINES operates to more than 95 destinations across the Middle East, Subcontinent, Africa, Russia and EasternQantas Airlines is working with Emirates with a Europe. FlyDubai is established by the Governmentglobal partnership and code share agreement to of Dubai and operates in its main hub in Terminal 2 ofoperate 14 daily flights between Dubai, Australia and DXB. FlyDubai currently has a fleet of 50 brand newbeyond with lounge access. Qantas is the second Boeing 737-800 NG aircraftand only airline company which shares Terminal 3with Emirates. Emirates customers have access to 58EMIRATES AIRLINES, DNATA AND SKYCARGO Emirates SkyCargo is the World’s largest cargo airlineThe story of the global network Currently Emirates has one of the in terms of freight ton kilometersof the Middle East has started youngest fleet of the world with own (FTKM). Beside its fleet ofwith its first flight with one leased more than 230 aircrafts. Emirates, 12 Boeing 777’s and 2 BoeingBoeing 737 and one Airbus the world’s largest operator of 747-400’s, it has the capacity300 B4 on October 25th 1985. both Airbus A380 and Boeing 777 of Emirates’ belly cargo. WithDespite of being totally owned by operates exclusively in Terminal expansions and refurbishmentsgovernment of Dubai, Emirates 3 in DXB. Emirates also operating in DXB, SkyCargo shifted freightbroke all taboos with its explosive its lounge and complimentary dedicated operations to Emiratesgrowth through competition and chauffeur-drive services in its SkyCentral in AL Maktoumprotectionism by flying to more main hub, DXB. Dnata which International Airport (DWC) withthan 140 destinations over 81 was established in 1959 in an annual capacity of 700.000countries around the world from Dubai, is responsible for ground tons. SkyCargo is operating aits hub in DXB. In the financial handling services DXB. Since the trucking service between DXB andyear 2013/2014, Emirates served establishment in 1959 with five DWC to connect freighters andto 44.5 million passengers and employees, it has grown sharply main passenger fleet.carried 2.25 tons of air freight. In and currently its operations are2014-2015, Emirates carried 49.3 worldwide over 37 countries withmillion passengers and 2.4 million over 20,000 employees.tons of cargo.www.comcec.org n www.shgm.gov.tr 50