Airport IT spending on the rise globally

Results of the 2005 Airport IT Trends Survey, presented to industry leaders
at the Airports Council International (ACI) world conference in Auckland, New
Zealand, provide strong evidence that investment in new information technologies
such as check-in kiosks, wireless connectivity and biometrics, promise to make
the experience for the four billion passengers traveling through airports each
year faster, safer, and more productive. The survey also shows that airports'
IT spending is increasing both as a percentage of revenues and in real terms.

Respondents to the annual survey conducted by SITA, ACI and Airline Business,
represent nearly 50% of revenue at the top 200 airports, based on the latest
Airline Business magazine financial rankings.

The survey also presents a picture of an airport industry rapidly adapting to
the challenges posed by significant traffic growth and the needs of the
increasingly influential low cost carrier sector and airline alliance groups.

Airport operators are making smarter use of technology to help meet these
challenges. In particular, shared-use service models have provided airports with
flexibility in assigning limited space and facilities to airlines with the
ability to

scale operations, both critical operational imperatives in today's highly
competitive marketplace.

John Jarrell, SITA Senior VP, Airport and Desktop Services, said, "The
survey results show that airport IT investment levels have climbed to 4.6% of
revenues, up from 4.1% last year. With passenger numbers continuing to rise,
leading to increased airport revenues, the trend for increasing IT budgets in
the future looks positive. We estimate that airport IT spend in 2005 is around
the US$2.5bn level."

"Given that passenger traffic is forecast to almost double by 2020 to
7.4 billion, it is not surprising that airports are looking for IT solutions to
play a bigger part in their operations. As the industry becomes increasingly
competitive, we are seeing airports across the world using IT to attract both
airlines and their passengers by providing efficient and safe airports."

A major issue facing airports will be the countering of terminal congestion
as a result of the anticipated doubling of passenger numbers over the next
twenty years. Airline-neutral check-in kiosks are seen as part of the answer.

The first generation of kiosks was largely dedicated to a single airline as
evidenced by the survey results, which show 42% of airports have deployed them.
But the introduction two years ago of common-use self service (CUSS) kiosks,
providing check-in capabilities for multiple airline-use, is starting to make an
impact.

Currently, only 8% of airports have deployed CUSS kiosks. The survey results
show that, within the next two years, that percentage will increase
significantly to 70%. In contrast, underscoring the accelerating shift towards
common-use kiosks, only 2% of airports plan to opt for dedicated kiosks. Other
technologies that look set to alter the passenger's airport experience include
self-service boarding, with over 60% of airports planning to provide the
capability within two years.

To complement the speeding up of the check-in process, the survey shows that
airports are increasingly providing passengers with alternative ways to use
their time, including the provision of wireless Internet capabilities, allowing
travellers to stay connected while they wait for their flights.

The clear choice is WiFi. Over 90% of airports surveyed said they already
offered or planned to offer it in the next two years. The WiFi standard is of
industrial strength, which makes it a particularly suitable underlying
infrastructure for providing shared-use services to both the public and airport
tenants such as shops and ground handlers.

Other technologies being considered by airports are mobile phone applications
for both remote check-in and m-commerce, which allow travellers to purchase
goods and services within the airport terminals. To date, these have only been
implemented in around 5% of airports. However, within two years as mobile
connectivity becomes all pervasive, this figure is expected to rise to the 40%
level.

As the needs of airlines and their support operations grow, airports are
increasingly deploying a single airport-wide communication network to reduce the
cost and complexity of existing systems, and provide a platform for new
services, such as VoIP and WiFi.

• Self-service check-in kiosks: At least 42% of airports globally have
  already deployed some form of self-service kiosk and the results show that,
  over the next two years, this figure will rise to 70%
• Wi-Fi access: Over 90% of airports surveyed will offer public access to a
  WiFi network within the next two years
• Managed network services: Within the next two years, 75% of airports will
  have an airport-wide communication network to support new passenger and
  airline services, such as Voice over IP (VoIP)
• Biometric identification: 33% of airports plan to deploy a biometric
  identification system for check-in and boarding within the next four years,
  an eleven fold increase on today's figure

DQC NEWS BUREAU