Inspiring “Island” Travel

By Doug Newson, CEO, Charlottetown Airport Authority

Operated by the Charlottetown Airport Authority Inc. (CAA), the Charlottetown Airport (YYG) is located in Canada’s smallest province, Prince Edward Island (PEI), or as the locals like to call it, “The Island.” Although small in size – with a population of about 150,000 residents – thanks to the beautiful beaches, world-class golf and delicious culinary products, we are one of Canada’s most popular tourism destinations, attracting more than 1 million visitors each year. Being one of three entry points on to the Island, the airport’s importance to the province, and especially the tourism industry, is significant. So, by connecting Islanders to the world and the world to our Island, YYG is inspiring Island travel – at record levels.

PEI has seen four consecutive years of record tourism growth, which has resulted in record traffic levels for the Charlottetown Airport. In 2017, passenger traffic surpassed the 370,000 mark for the first time. This outdid our previous high by more than 15,000 passengers. In the past 10 years, passenger movements at our airport have increased by 57 percent. Our recent growth has been driven by significant capacity increases from our main airline partner, Air Canada.

In 2016, Air Canada introduced their leisure airline subsidiary, Air Canada Rouge, to our market, bringing Airbus 319 and 321 from Montreal and Toronto for the first time – a great product for our busy summer season as well as the meetings and conventions sector that thrives in the shoulder seasons on PEI. The Air Canada service is complemented by our other main airline partner, WestJet, that operates two 737 aircraft per day to Toronto in the peak summer season.

Over the past two years, CAA has been investing heavily in its airside infrastructure. In 2017, we completed our second year of a three-year, $25 million Runway Improvement Program – the largest infrastructure investment in CAA’s history. Already providing a $115 million economic impact to our province, this investment will drive further economic growth from YYG by creating jobs for Islanders while also improving our infrastructure and operational effectiveness.

The first phase of the program, which took place from 2016-2017, saw the addition of 2,000 feet to our 5,000-foot crosswind runway, 10-28.

The project consisted of earthwork, installation of a drainage culvert, gravel, asphalt, electrical upgrades, and the construction of two RESAs (runway end safety areas). This project progressed very well and produced some impressive numbers: 50,000 truckloads of earth were moved, 50,000 tonnes of gravel was spread, and 8,000 tonnes of asphalt laid. Expanding runway 10-28 gives us two 7,000-foot runways to significantly improve airport operations, flexibility and safety in different wind and weather conditions. It also means there will be no negative impact to Islanders and tourists in summer 2018, when major rehabilitation work is required on our main runway, forcing the closure of this runway for the entire peak tourism season.

As 2018 progresses, we are now into this final phase of the Runway Improvement Program, which consists of the rehabilitation of Runway 03-21 and connecting taxiways Alpha, Bravo and Charlie. Major components of the work are grading and drainage improvements, storm water replacement, electrical replacement and rehabilitation, and reconstruction of the pavement structure. The primary objective of this project is to ensure the continued safe operation of the Charlottetown Airport so that it can continue to capitalize on recent growth trends and drive economic value for our community.

As mentioned, tourism is a significant growth factor for our airport but with our growing numbers we also feel confident in saying we are proud to be the launch pad for Islanders’ adventures all over the world. This past year we thought we would celebrate that by asking Islanders to share their travel adventures and photos with us. The response was overwhelming. Hundreds of people submitted photos that capture the energy, inspiration, wonder and excitement of exploring a new destination. As an ode to our travelers, we’ve created a curated photo display in our departures lounge with a selection of 100 photos from nearly 30 countries that span every continent. We call it Just Go! The installation also features an interactive touch screen component that allows passengers to view more about the travelers and their stories. It’s a celebration of our customers, their travels and the adventures that inspire others to explore the world. They certainly inspire us in our work to help connect Islanders to the world. Our vision here at the Charlottetown Airport is simple.

We want to provide an exceptional passenger experience, with genuine Island hospitality. As we look to the future, we will never lose sight of this vision and continue to invest in our airport to meet the needs of our residents, visitors and those coming to our Island for business. New programs and services to enhance the passenger experience are on the horizon, as we understand the importance of maintaining and improving our services and facilities to inspire “Island” travel.

Global Trends in E-Commerce

By Ricondo & Associates Inc.

The increasing use of electronic commerce (e-commerce) has changed the landscape of global retailing and is affecting activity at airports. The development of e-commerce includes retailing in airport terminals, but is more significantly related to an airport’s interaction with the business, logistics, and cargo networks that can provide competitive advantages to companies in, for example, assembly, sortation, regulation, speed, assurance, and cost of delivery. The widely anticipated growth of e-commerce worldwide presents significant opportunities for airport owners to recognize trends, support the e-commerce business network to the benefit of their tenants and their own financial results, and contribute to regional economic development.

OVERLAYING DEVELOPMENTS

Several overlaying developments contribute to the growth of e-commerce:

  1. Increasing concentration of the world’s population in urban areas with global connectivity, which increases the importance of the world’s airports in moving passengers and goods around the world.
  2. Increasing self-owned, single-person businesses, also frequently referred to as the “gig economy” or “on demand economy.”
  3. Technological advancements to enable globalized commerce.

LEADING E-COMMERCE MARKETS

There are varying estimates of e-commerce sales by country, but, in most cases, China is shown as the leader because of its very large population base and rapid adoption of technology.

E-COMMERCE GROWTH IN UNITED STATES

The United States is the second largest online market in the world (following China). Many U.S. retailers are investing in international operations, and many international e-retailers are investing in the U.S. market.

Online sales still represent a relatively small share of total retail sales in the United States (about 8 percent in 2016), but the online share has been increasingly rapidly. This illustrates the potential for significant future growth in e-commerce in the context of the very large overall U.S. retail market.

LOGISTICS AND DELIVERY ARE KEY TO E-COMMERCE

E-commerce, in most cases, replaces the experience of shopping at a brick-and-mortar store, and requires the delivery of goods to the purchaser. According to the U.S. National Retail Federation, about 60 percent of online sales in 2015 included free shipping.

Free shipping is a competitive advantage, but also a cost. Combined with increased demand for speed of delivery (2-day, 1-day, or same-day), shipping to individuals is a major logistical challenge central to the business offering.

National postal services have become more relevant with the rise of e-commerce because of their networks of local couriers and ability to deliver to individual residences. Delivery is more complex with cross-border trade—myriad issues exist, such as multiple operators, customs clearance, customer payment, taxes, and currency exchange challenges.

One area of interest for e-commerce is the potential for drones to deliver packages, and thereby solve one of the more costly and complex elements of e-commerce fulfillment. The potential for drones is particularly important for airport owners to consider because, if there is an alternative delivery method, questions arise regarding investment in airport facilities for more traditional air cargo and the potential airport role in supporting the use of drones for e-commerce delivery.

OPPORTUNITIES FOR AIRPORTS

Airport owners have multiple opportunities to participate in the growing e-commerce business.

Strategies need to be developed in accordance with the local setting—geographic location, economic fundamentals, and airport infrastructure. With the continued globalization of economic activity, and the associated increase in cross-border e-commerce, airports with established international gateway operations and networks of logistics businesses familiar with the intricacies of international trade will be well-positioned.

The Miami-Dade Aviation Department, operator of a system of airports in Miami-Dade County, Florida, has invested in strategic planning to leverage the combined (1) rapid growth in e-commerce, and (2) Miami’s unique position as an international center of commerce and air cargo for Latin America. A multifaceted approach to analysis and planning includes evaluating cargo infrastructure needs and the potential use of various airports in the system, and coordinating with stakeholders on-airport and in the community.

Recently, the Miami-Dade Aviation Department conducted a workshop with airlines, integrators, logistics providers, community economic development leaders, and others to discuss challenges, opportunities, and collaboration strategies related to e-commerce.

IDENT

The CBP has determined that facial recognition biometric exit technology is a viable solution to managing the entrance and exit of travelers coming through U.S. airports. The technology is provided by the Department of Homeland Security through its office of Biometric Identity Management (OBIM). The system, dubbed IDENT, currently processes some 300,000 biometric transactions each day. The pilot programs launched at some airports over the past year will allow the CBP to determine how well it works with various flights, airports, lighting conditions and internal IT configurations and whether it is flexible, reliable and easy for travelers to use.

Chicago O’Hare International Airport

The technology is being used for unspecified select flights from Chicago since July 2017.

George Bush Intercontinental Airport

Testing on facial recognition technology started in June 2017 on a single daily flight between the United States and Tokyo.

Hartfield-Jackson Atlanta International Airport

Initial airport testing of facial biometrics began in Atlanta in June 2016 to determine how well the technology would work with existing IT systems.

William P. Hobby Airport

The technology was unveiled in August 2017 for use on select flights from the airport.

John F. Kennedy International Airport

A 30-day testing program began in October 2017 using the technology at an unspecified TSA security checkpoint.

Los Angeles World Airports

Three self-service biometric boarding gates use facial recognition technology to get passengers on board international British Airways flights at LAX.

McCarran International Airport

The technology was deployed in August 2017 for a single daily flight from the US to Guadalajara, Mex.

Miami International Airport

The technology started being tested on an unspecified flight from Miami in October 2017.

Washington Dulles International Airport

In June 2017, the airport introduced facial recognition biometric exit technology for a daily flight from the United States to Dubai.

IATA Eyes a Future with One ID

Imagine a day when a passenger could present a single form of ID that would ensure a smooth path through the airport at the very start of his or her journey through the boarding process.

That’s exactly what International Air Transport Association (IATA) has in mind with its concept, ONE ID that would enable a secure, seamless and “frictionless” process allowing them to walk through the airport “without breaking stride.”

IATA confirmed through its 2017 Global Passenger survey that passengers want more automation of airport processes. They would like a single identity token that would be used through all processes, real time information sent to the personal devices and more efficient security without removing or unpacking personal items. Some 82 percent said they would like to be able to use a digital passport on their smart phones for as many travel activities as possible. To meet such a goal, there will have to be close collaboration between various industry and government stakeholders for a solution that applies horizontally across the end to end passenger experience, according to IATA’s Guido Peetermans, Head of Passenger Security. “All stakeholders will benefit from a coordinated approach through improved productivity, increased capacity and cost savings as well as improvements in border, aviation and airport infrastructure security.”

Peetersmans noted that ONE ID does not favor one particular form of biometrics. “While facial recognition may be the most pragmatic choice in many environments, other jurisdictions or stakeholders may prefer other biometrics such as fingerprint or iris for technical, operational or cultural reasons.”

A major barrier to implementing a collaborative identity management solution is to establish trust and collaboration between stakeholders, Peetermans said. “Today, individual stakeholders take steps to ensure their own obligations are met, but with little or no coordination between them. We will need to break these silos and get stakeholders to collaborate towards a solution that would apply horizontally across the whole process.”

Peetermans said that an upfront investment in the new technology required for biometric recognition is required but it is increasingly mature and moving forward at a rapid pace.

“We don’t believe that the installation and integration of the technology components are going to be the bottleneck as is evidenced by various pilot projects that are underway at leading airports around the globe.”

Facing the Future: New Biometric Technology Programs Being Tested Nationwide

By Sandra Arnoult

Sweeping changes may come over the next four years as the U.S. Customs and Border Protection rolls out the installation of new biometric technology in U.S. airports based on facial recognition. Over the past year, a number of airports have kicked off pilot programs to test the new technology with a designated, limited number of flights and destinations.

The U.S. Customs and Border Protection (CBP) first established biometric screening procedures based on digital fingerprints for certain non-U.S. citizens in 2004, after Congress required the Department of Homeland Security (DHS) to develop a biometric entry/exit system. The goal was to secure U.S. borders and verify travelers’ identities. In 2013, when Congress transferred the entry/exit policy and operations to CBP, the border security initiatives continued.

One of the most recent technologies relates to biometrics – metrics related to human characteristics. In this case, it is facial-recognition technology and it is being used to help verify travelers’ identities and match them to the documents they present.

Using a flight manifest, CBP develops a flight-specific photo gallery using photos from the passenger that were provided to the airline.

The live photo is compared to the document photo to ensure it matches the original documents. If the photo captured at boarding confirms the passenger as a U.S. citizen, it’s not used for biometric exit purposes and is discarded briefly afterward.

It’s critical that any process does not slow down or impede the flow of passengers or limit the number of flights, said Dan Tanciar, deputy executive for entry/exit transportation at CBP. The economic impact of the process on the airlines and the airport has to be taken into account in any process, he added.

Tanciar pointed out that the 2016 appropriation for DHS included up to $1 billion over a 10-year period to implement a biometric entry and exit program. The cost to implement the program “remains a concern among stakeholders” and issues of policy and training still need to be resolved.

Tanciar acknowledged, “CBP is committed to continue to work with stakeholders to resolve the details associated with implementation.”

U.S. citizens who balk at the idea of having a photo taken can opt for a physical inspection of their documents, which will take more time but would address their concerns about privacy, he said.

Early indications from airports and officials at CBP and the DHS are that programs, which are limited thus far, may be an important tool in establishing the validity of the technology.

“Matt Cornelius, ACI-NA Vice President of Air Policy, agrees. “Over the last year, ACI-NA has been working closely with CBP, Airlines for America, IATA and the individual airlines to ensure that the program is not only effective but does not disrupt airport operations.”

But in late December, two U.S. Senators raised a red flag, asking DHS to stop expanding the program and provide Congress with its explicit statutory authority to use and expand it.

“We ask that DHS address accuracy concerns and potential flaws before broadening the practice,” wrote U.S. Senators Ed Markey (D-Mass) and Mike Lee (R-Utah) in a letter to DHS on Dec.

21, 2017. They also expressed concerns about whether the data collection will “unduly burden” travelers of certain races or genders.

In addition, they said, “While Congress has repeatedly voted to authorize biometric entry/exit scanning of foreign nationals, it has never authorized biometric exit scanning

for U.S. citizens. In fact, Congress has pointedly neglected to authorize DHS to use the program on U.S. citizens for any purpose.”

Tanciar is confident that their concerns will be adequately addressed because of the way the system is being developed and used.

PRIVACY CONCERNS

Privacy is a concern for passengers, said Guido Peetermans, head of IATA Passenger Security. Any system should be designed to ensure that access to passenger data is on a “need to know” and “authorized basis.”

“A privacy impact analysis, sound quality assurance and compliance monitoring need to be in place to maintain the traveling public’s trust in such a system,” Peetermans said.

“The biggest challenge in every implementation project we have seen is to establish trust and collaboration between the various industry and government stakeholders, break the silos, and redesign the process with the passenger in the center.”

Tanciar said that he believes CBP is already in line with privacy protections.

“I think we have done an honest-to-goodness good faith effort to bake all of this into the process.”

PUTTING THE BEST FACE FORWARD

Pilot programs at select U.S. airports have been in effect for nearly a year and, thus far, the passenger response has been positive, say a number of airports officials.

“Up to this point, things are progressing very well,” said Dan Agostino, assistant director of operations at Miami International Airport. “On the entry side, we are processing two international flights per day with hopes to increase to three flights per day.”

He said he sees it as a “viable program” and that very few people have opted out of the facial ID. They are considering testing the technology for check-in at common use kiosks.

“I think the major hurdle, other than privacy, is to have both CBP and TSA aligned as to the use of this technology,” Agostino said.

“Customer response has been overwhelmingly positive,” said Joanna Geraghty, JetBlue executive vice president, customer experience. “More than 90% of customers have opted-in to self-board. Self-boarding also saves time for our crewmembers who no longer have to do manual passport inspections during the boarding process.”

JetBlue teamed with SITA to pilot a biometric boarding process at Boston Logan International Airport in June 2017. SITA provides passenger processing technology to more than 165 airlines that serve 100 million passengers each year. It also provides border management technology to more than 40 governments across the Americas, Asia, Europe, the Middle East and Africa.

“Our trial was the first effort between an airline and CBP to use biometrics and facial recognition technology in the boarding process,” Geraghty explained. “We launched with our Boston to Aruba flights to test this among a vacation leisure market and customers who travel frequently and are technology-savvy.” The process was subsequently extended to flights from Boston to Santiago, Dominican Republic, which are primarily leisure or family trips.

She said JetBlue continues to review the program and will work with CBP for a “long term biometric roadmap.”

Sean Farrell, SITA portfolio director, strategy and partnerships, demonstrates how a technology provider can bring together all stake holders – airlines, airports and government agencies – to improve identity checks and improve processing times.

“We continue to work with other U.S. airlines and airports to see how we can introduce this technology at other passenger touch points,” said Farrell. “Looking more globally, over the past 18 months we have worked tirelessly to develop our end-to-end suite of self-service solutions for passengers –we call it Smart Path™. [It] allows passengers to move through the airport and board the aircraft by presenting a single digital token, created by capturing a passenger’s biometric details at the first step in the journey.”

British Airways has partnered with Los Angeles International Airport to run test trials on a self-service biometric boarding gate from Vision-Box. The passenger approaches the gate where a camera snaps a photo.

When the photo is verified against the photo taken as part of the process, the gate automatically opens and the passenger moves through eliminating the need to supply boarding documents or a passport.

“People are very excited about using this new technology,” said Justin Erbacci, chief innovation and technology officer for Los Angeles World Airports. “They are eager to go through the gates. It’s optional. No one has to go through. If someone feels it is obtrusive, they can go through the traditional boarding process.”

Bringing in the equipment was a bit of a hurdle, he said. “We had to bring the gates themselves [because] automated boarding lanes are new to the airport – getting the infrastructure in place and getting airlines to use it.”

The gates are stationed in the international terminal and can be moved, he said. “Other airlines are starting to use the automated boarding gates. We are in the process of adjusting their system. We believe it makes sense to board planes much faster than the traditional method of boarding.”

The technology also has to be integrated with existing common use equipment in the international terminals, he said.

Erbacci said he believes facial recognition is the direction they are heading, rather than voice, fingerprint or iris recognition. “We aren’t looking at that right now. Functionality now involves the use of the face.”

Farrell agreed. “We expect that face will dominate going forward – particularly at airports, where the major focus will be to continue to leverage the face data in ePassports to improve the passenger experience and security.” Other modalities – such as iris or fingerprints may have advantages, but they also have drawbacks such as privacy concerns, the cost of fingerprint technology and the lack of an existing database, he said.

“We believe biometrics are the future of passenger processing,” said Erbacci. “For us, it’s very important to be part of this.” Thus far the initial cost of the gates at LAX are not covered by CBP but through different airport resources, said Erbacci.

“We would recommend this to other airports and airlines,” said JetBlue’s Geraghty. “Our goal is for a personal, helpful and simple experience. Implementing biometrics has allowed us to innovate the airport travel experience and reduce friction points for our customer by making the boarding process simpler.”