Study on airport ownership and management and the ground handling market in selected non-EU ...

214 Pages·2016·3.22 MB·English

by  Rosie Offord

Study on airport DG MOVE, European

Commission
ownership and

management and the
ground handling market
in selected non-EU
countries

Final Report Our ref: 22907301

June 2016 Client ref: MOVE/E1/SER/2015-
247-3

Study on airport DG MOVE, European

Commission
ownership and

management and the
ground handling market
in selected non-EU
countries

Final Report Our ref: 22907301

June 2016 Client ref: MOVE/E1/SER/2015-
247-3

Prepared by: Prepared for:

Steer Davies Gleave DG MOVE, European Commission

28-32 Upper Ground DM 28 - 0/110
London SE1 9PD Avenue de Bourget, 1
B-1049 Brussels (Evere)
Belgium
[phone]

www.steerdaviesgleave.com
Steer Davies Gleave has prepared this material for DG MOVE, European Commission. This material may only be
used within the context and scope for which Steer Davies Gleave has prepared it and may not be relied upon in
part or whole by any third party or be used for any other purpose. Any person choosing to use any part of this
material without the express and written permission of Steer Davies Gleave shall be deemed to confirm their
agreement to indemnify Steer Davies Gleave for all loss or damage resulting therefrom. Steer Davies Gleave has
prepared this material using professional practices and procedures using information available to it at the time
and as such any new information could alter the validity of the results and conclusions made.
The information and views set out in this report are those of the authors and do not necessarily reflect the
official opinion of the European Commission. The content herein should therefore not be relied upon as a
statement of the Commission's or the Directorate-General for Mobility and Transport's views. The European
Commission does not accept responsibility for any use made thereof.
Contents
Executive Summary ....................................................................................................................... i
1 Introduction ....................................................................................................................... 1
Background and the need for this study ...................................................................................... 1
This report .................................................................................................................................... 2
2 Methodology...................................................................................................................... 3
Introduction .................................................................................................................................. 3
Stakeholder engagement.............................................................................................................. 3
Approach to collecting data .......................................................................................................... 4
3 GATS and bilateral frameworks ........................................................................................... 5
Introduction .................................................................................................................................. 5
The GATS ....................................................................................................................................... 6
Bilateral frameworks .................................................................................................................. 17
4 International trends ......................................................................................................... 20
Introduction ................................................................................................................................ 20
Airport ownership ....................................................................................................................... 20
Airport management .................................................................................................................. 30
Ground handling ......................................................................................................................... 32
5 Case study: Brazil.............................................................................................................. 36
Introduction ................................................................................................................................ 36
Brazil: Airport ownership ............................................................................................................ 38
Brazil: Airport management ....................................................................................................... 39
Brazil: Ground handling .............................................................................................................. 43
6 Case study: China ............................................................................................................. 51
Introduction ................................................................................................................................ 51
Context ....................................................................................................................................... 51
China: Airport ownership ............................................................................................................ 52
China: Airport management ....................................................................................................... 54
China: Ground handling .............................................................................................................. 56
7 Case study: India .............................................................................................................. 59
June 2016
Introduction ................................................................................................................................ 59
Context ....................................................................................................................................... 59
India: Airport ownership ............................................................................................................. 59
India: Airport management ........................................................................................................ 60
India: Ground handling ............................................................................................................... 63
8 Case study: Japan ............................................................................................................. 69
Introduction ................................................................................................................................ 69
Context ....................................................................................................................................... 69
Japan: Airport ownership ........................................................................................................... 70
Japan: Airport management ....................................................................................................... 74
Japan: Ground handling .............................................................................................................. 77
9 Case study: Mexico ........................................................................................................... 82
Introduction ................................................................................................................................ 82
Context ....................................................................................................................................... 82
Mexico: Airport ownership ......................................................................................................... 83
Mexico: Airport management .................................................................................................... 84
Mexico: Ground handling ........................................................................................................... 90
10 Case study: Morocco ....................................................................................................... 100
Introduction .............................................................................................................................. 100
Context ..................................................................................................................................... 100
Morocco: Airport ownership .................................................................................................... 101
Morocco: Airport management ................................................................................................ 102
Morocco: Ground handling ....................................................................................................... 103
11 Case study: Philippines .................................................................................................... 108
Introduction .............................................................................................................................. 108
Context ..................................................................................................................................... 108
Philippines: Airport ownership ................................................................................................. 109
Philippines: Airport management ............................................................................................. 109
Philippines: Ground handling ................................................................................................... 112
12 Case study: Turkey........................................................................................................... 115
Introduction .............................................................................................................................. 115
June 2016
Context ..................................................................................................................................... 115
Turkey: Airport ownership ........................................................................................................ 116
Turkey: Airport management ................................................................................................... 117
Turkey: Ground handling .......................................................................................................... 126
13 Case study: United Arab Emirates .................................................................................... 136
Introduction .............................................................................................................................. 136
Context ..................................................................................................................................... 136
UAE: Airport ownership ............................................................................................................ 137
UAE: Airport management ....................................................................................................... 141
UAE: Ground handling .............................................................................................................. 142
14 Case study: USA ............................................................................................................... 148
Introduction .............................................................................................................................. 148
Context ..................................................................................................................................... 148
USA: Airport ownership ............................................................................................................ 149
USA: Airport management........................................................................................................ 152
USA: Ground handling .............................................................................................................. 155
15 Market overview: France ................................................................................................. 161
Introduction .............................................................................................................................. 161
Airport ownership ..................................................................................................................... 161
Airport management ................................................................................................................ 162
Ground Handling ....................................................................................................................... 164
16 Market overview: Germany ............................................................................................. 169
Introduction .............................................................................................................................. 169
Airport ownership ..................................................................................................................... 169
Ground handling ....................................................................................................................... 171
Conclusion ................................................................................................................................ 174
17 Market overview: UK ....................................................................................................... 175
Introduction .............................................................................................................................. 175
Airport ownership ..................................................................................................................... 175
Airport management ................................................................................................................ 178
Ground Handling ....................................................................................................................... 179
June 2016
Figures
Figure 4.1: Map of selected major airports showing private sector involvement (in either
ownership or management)* ..................................................................................................... 27
Figure 5.1 Prioritization of airports requiring intervention – McKinsey & Company ................ 40
Figure 5.2: Brazilian ground handling market share by company (ramp) .................................. 45
Figure 5.3: Brazilian ground handling market share by company (passenger) .......................... 46
Figure 5.4 Geographic Distribution of ground handling companies in Brazil – ABESATA .......... 47
Figure 5.5 Number of ground handling companies providing ‘operational services’ at Brazilian
airports ....................................................................................................................................... 48
Figure 6.1: Chinese ground handling market share by company (ramp) ................................... 57
Figure 6.2: Chinese ground handling market share by company (passenger) ........................... 58
Figure 7.1: Indian ground handling market share by company (ramp) ...................................... 66
Figure 7.2: Indian ground handling market share by company (passenger) .............................. 67
Figure 8.1: Japanese ground handling market share by company (ramp) ................................. 78
Figure 8.2: Japanese ground handling market share by company (passenger) ......................... 78
Figure 9.1: Location of the three main concessionaires’ airports and Mexico City International
Airport ......................................................................................................................................... 86
Figure 9.2: Mexican ground handling market share by company (ramp) .................................. 92
Figure 9.3: Mexican ground handling market share by company (passenger) .......................... 92
Figure 10.1: Moroccan ground handling market share by company (ramp)............................ 104
Figure 10.2: Moroccan ground handling market share by company (passenger) .................... 105
Figure 11.1: Filipino ground handling market share by company (ramp and passenger) ........ 113
Figure 12.1: Turkish ground handling market share by company (ramp) ................................ 128
Figure 12.2: Turkish ground handling market share by company (passenger) ........................ 129
Figure 13.1: UAE ground handling market share by company (ramp and passenger) ............. 144
Figure 13.2: UAE ground handling market share by company (passenger) ............................. 145
Figure 14.1: USA ground handling market share by company (ramp) ..................................... 156
Figure 14.2: USA ground handling market share by company (passenger) ............................. 157
Figure 15.1: Ownership structure of Aéroports de Paris .......................................................... 162
Figure 16.1: Independent ground handling operators at German airports ............................. 173
Figure 17.1: Ownership structure of Gatwick Airport Limited (GAL) - 2015 ............................ 176
Figure 17.2: Ownership structure of HAL - 2016 ...................................................................... 177
June 2016
Tables
Table 1.1: Ground handling stations by company (2011 and 2015/2016) .................................. vi
Table 2.1: Stakeholder status at project conclusion..................................................................... 3
Table 3.1: List of commitments and relevant limitations by country ......................................... 11
Table 3.2: List of exemptions ...................................................................................................... 14
Table 3.3: Bilateral Trade Agreement status for the non-EU countries in scope ....................... 18
Table 4.1: Attribution of circumstances to airport ownership or airport management ............ 23
Table 4.2: Major airport investment groups .............................................................................. 24
Table 4.3: Ground handling stations by company (2011 and 2015/2016) ................................. 33
Table 4.4: Ground handling revenues by company (calendar or FY 2014) ................................ 33
Table 5.1 Commercial Service airports with highest number of passengers in 2015 ................ 37
Table 5.2 Public airports operating under a concession agreement in 2015 ............................. 39
Table 5.3 Airports operating by concession, Brazil..................................................................... 41
Table 5.4 Concession auction process ........................................................................................ 42
Table 5.5 Ground handling companies – Brazil airports 2015 .................................................... 49
Table 6.1: Top 20 Chinese airports by number of arriving and departing passengers, 2014 ..... 51
Table 7.1: Busiest airports by number of passengers................................................................. 59
Table 7.2: Indira Gandhi (Delhi) International Airport shareholders ......................................... 61
Table 7.3: Chhatrapati Shivaji (Mumbai) International Airport shareholders ............................ 61
Table 7.4: Kempegowda (Bangalore) International Airport shareholders ................................. 62
Table 7.5: Rajiv Gandhi (Hyderabad) International Airport shareholders .................................. 62
Table 7.6: Authorised Ground Handlers at Metro Airports ........................................................ 68
Table 8.1: Busiest 20 commercial Service Airports by passenger numbers in Japan, CY 2014 .. 69
Table 8.2: Classification of airports in Japan according to Airport Law ...................................... 70
Table 8.3: Entities of operating and managing airports in Japan ............................................... 71
Table 8.4: JAL Group ground handling companies ..................................................................... 79
Table 8.5: ANA Group ground handling companies ................................................................... 79
Table 8.6: Other ground handling companies ............................................................................ 79
Table 8.7: Swissport Japan’s operations and customer airlines in Japan ................................... 80
Table 8.8: Ground handling operators at Narita Airport ............................................................ 81
June 2016
Table 9.1: Commercial Service Airports with highest number of arriving and departing
passengers in 2015 ..................................................................................................................... 82
Table 9.2: Airports administered and operated by each private concessionaire ....................... 85
Table 9.3: Airports administered and operated by the state owned concessionaire ASA ......... 86
Table 9.4: Volume of passengers by concessionaire group, 2015 .............................................. 87
Table 9.5: Main ground handling companies operating in Mexico ............................................ 93
Table 9.6: Companies operating at the most important airports in Mexico .............................. 94
Table 9.7: Airports served by Aeromexico Servicios .................................................................. 95
Table 9.8: Airports served by Ground Control Mexico ............................................................... 96
Table 9.9: Menzies ground handling services ............................................................................. 96
Table 9.10: Mexico Airports in which Menzies has operations .................................................. 97
Table 9.11: Services provided by Groundforce Mexico .............................................................. 97
Table 9.12: Services Swissport provides in Mexico .................................................................... 97
Table 9.13: Swissport Network in Mexico .................................................................................. 98
Table 10.1: Largest commercial airports of Morocco (2014) ................................................... 100
Table 10.2: Services offered by ground handlers in Morocco .................................................. 106
Table 11.1: Commercial airports in the Philippines with highest number of passengers, 2014
.................................................................................................................................................. 108
Table 11.2: Philippine PPP airport projects under procurement for OAT concessions (current in
March 2016) ............................................................................................................................. 110
Table 11.3: Pre-qualified bidders for Philippine PPP airport projects under procurement
(March 2016) ............................................................................................................................ 111
Table 11.4: Ground handling companies at major airports in the Philippines ......................... 114
Table 11.5: Major airlines in the Philippines with a notable share in the ground handling
market ....................................................................................................................................... 114
Table 12.1: Air transport passenger traffic in Turkey, 2015 ..................................................... 115
Table 12.2: Passenger Traffic at the 20 busiest Turkish Airports ( 2015 ) ................................ 115
Table 12.3: Privately managed airports in Turkey (2016)......................................................... 118
Table 12.4: DHMI Rent-Operate-Transfer projects (concessions) ............................................ 122
Table 12.5: DHMI BOT projects ................................................................................................ 124
Table 12.6: Number of ground handling companies in Turkey by licence type (2014) ............ 129
Table 12.7: Group A licenced ground handlers in Turkey, company information (2014) ........ 130
Table 12.8: Ground handlers operating at only one airport in Turkey ..................................... 131
Table 12.9: Ground handling A Group Licences At Atatürk Airport, 2015 ............................... 132
June 2016
Table 12.10: Group B ground handling licences at Atatürk Airport By Company & Service Type,
2015 .......................................................................................................................................... 133
Table 12.11: Non-Turkish Group B ground handlers In Turkey ................................................ 135
Table 13.1: Busiest airports in UAE by total passenger numbers ............................................. 136
Table 13.2: Ownership of airports serving commercial flights in the UAE ............................... 137
Table 13.3: Major ground handling companies operating in the UAE ..................................... 146
Table 14.1: Top 20 USA Commercial Service Airports by total passenger numbers (est.*), 2014
.................................................................................................................................................. 148
Table 14.2: Major US Airline Ground handling Operations ...................................................... 157
Table 14.3: Number of ground handling operators at selected US airports ............................ 158
Table 14.4: JFK Airport Ground handling Operators ................................................................ 158
Table 14.5: Major international Ground Handling Operators active in the USA ...................... 159
Table 14.6: US Ground handling companies (non-exhaustive) ................................................ 159
Table 15.1: Main ground handlers operating in France (2015 analysis) .................................. 166
Table 15.2: Overall market share of handling companies in France, 2014 .............................. 167
Table 16.1: Ownership structure of the 10 largest airports in Germany (based on passengers in
2015) ......................................................................................................................................... 170
Table 16.2: Ground Handling operators at German airports ................................................... 174
Table 17.1: Main ground handlers operating in UK, 2016 ........................................................ 179
Table 17.2: Selected large/main airports in the UK with the number of ground handling
providers at the airport ............................................................................................................ 180

June 2016