A vision of future airports | Infrastructure news

ACSA Chairman Skhumbuzo Macozoma

ACSA Chairman Skhumbuzo Macozoma

Future airports will be about smart everything: data-driven insights, passenger prompted convenience, rapid movement and efficiency analysis.

At the same time, new modes of economic interaction will see airports serve passengers better, becoming cities in their own right and catalysts of economic growth through the provision of connectivity.

“Smart technologies will transform the customer experience – increasing non-aeronautical revenues for airport operators,” says Skhumbuzo Macozoma, Chairman at Airports Company South Africa.

“Future airports must be more entrepreneurial and grow non-aeronautical revenue”, he adds. Current non-aeronautical revenue amongst airport operators globally has grown from 30% in the 1990’s to 50% today.

Some airports, like Dubai, earned up to 60% of their revenue from non-aeronautical services. Non-aeronautical revenue at South Africa’s airports is currently 50% which equals the global average. “Future airports will be built around economies of speed and scale, based on multimodal hubs offering vastly expanded value chains through technology.”

Big data will increasingly maximise knowledge, access, information, movement and security, reducing the interface between passengers, customers, airlines and vendors. This will transform the passenger experience by equipping airports to thrive in a high-tech, big connectivity environment. Big data not only enables organisations to exploit valuable information to support decisions but also enables agility in developing rapid response plans to operational and environment changes.

Investment in new infrastructure, however, costs money. With many of Africa’s aviation and infrastructural challenges stemming from low passenger volumes, in addition to regulatory and political challenges, raising money to fund aviation infrastructure spend is critical to growing the continent’s aviation industry. This means that the current 117 million passengers who currently travel by air is well below the potential market that still remains to be exploited.

South Africa has the skills and legal infrastructure to create entities able to work with local and international banks and project managers to raise money and build world-leading infrastructure, both locally and abroad. In less-developed economies on the continent, greater competition for more limited resources often sees aviation infrastructure taking the back seat.

South Africa is also fortunate to have the legal and administrative ability to raise money for aviation infrastructure by levying tariffs through airline and airport charges. With this being beyond the legal and financial infrastructure capabilities of most countries on the continent, almost all African countries have to compete for funding from very limited tax bases.

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