With this status report, Copenhagen Airports A/S (CPH) seeks to inform Finance Minister Thor Pedersen about our efforts to ensure a smooth flow of traffic at the airport. This report is a follow-up to the CPH commentary dated 7 July 2006.

• Since this past summer, the areas for which CPH is responsible have returned to a high level of operational stability, and the level of service CPH provides has been substantially improved.
• Since summer, CPH has implemented a wide range of initiatives to safeguard the teamwork between the various parties that is necessary for Copenhagen Airport to function efficiently for the benefit of its passengers.
• In spite of the fact that CPH has no contractual relationship with the companies and thus cannot directly control their utilisation of resources, a close collaboration between the parties has already proved to have a positive effect on traffic flow. Among other things, there was a smooth flow of traffic during the autumn vacation period, and the transition to new rules for carry-on baggage was unproblematic.
• The initiatives described by CPH in its report this summer are progressing as planned, e.g. the construction of a new centralised security checkpoint. Also since this summer, seven more airlines have begun using the check-in kiosks CPH puts at their disposal free of charge. Our goal to shift more passengers to self-service technologies seems to be a success, with 39 per cent of Copenhagen Airport passengers now using them. The average for the industry is 11 per cent.
• CPH has begun planning a number of initiatives in collaboration with the other actors at the airport in order to provide the best possible conditions for the summer traffic to come: for example, a new procedure for handling cruise passengers and a collaboration on minimum service standards.
• CPH has been following its action plan for security, and measurement data show that CPH lives up to the authorities’ security requirements. We expect the so-called "Article 15 requirements" to be lifted soon, something also recently indicated by the authorities.
• In late summer, air traffic punctuality at CPH was affected by adjustments made by air navigation service provider Naviair. Also, the authorities required the airport to implement its new security areas in a way different from the user-friendly methods employed in implementing these measures at Stockholm’s Arlanda, for example. CPH is currently discussing with the authorities how these conditions can be changed so that they no longer impede the flow of traffic.

1. Status: Recent traffic flow and new measures

Since this past summer, CPH has focused strongly on ensuring a smoothly functioning interaction between the parties responsible for traffic flow and passenger service at the airport. Besides CPH, important parties are the airlines, the handling companies, the agencies and the authorities.

This report will explain developments in the problem areas at the airport that have substantially affected passenger service and traffic flow since this past summer: check-in, security controls, baggage handling, and regulation of traffic in the air. Whilst security controls are CPH’s responsibility, check-in, baggage handling and traffic regulation are in the hands of external parties.

Check-in
The airlines are responsible for passenger check-in. It continues to be difficult to generalise about waiting times at check-in, since the companies each have their own different set of standards. The airlines have internal targets with respect to passenger waiting times, and there is a great deal of variation from company to company.

Since this past summer, CPH has worked towards shifting a substantial share of check-in activity to self-service technologies so passengers themselves can avoid queues that may arise due to insufficient staff behind check-in counters. This is a joint effort, with CPH working closely together with the individual companies.

In our most recent report, we stated that CPH was making SmartCheck machines available at no cost to the airlines that may wish to use them. This past summer, however, only three companies gave their passengers this option.

Since summer, seven more companies have availed themselves of CPH’s common-use machines. Most recently, the second-largest operator at the airport, Sterling, decided to offer its passengers the convenience of checking in using CPH’s machines. Including SAS and its partners, who have their own machines, 23 airlines at Copenhagen Airport now offer their passengers the option of self-service check-in. CPH will increase the number of self-service kiosks available as more and more passengers use them.

In addition to the SmartCheck machines, several airlines are working together with CPH to allow passengers to check in online from their home computers. There are four companies today offering online check-in with printable boarding passes.

The latest ACI quarterly report states that 39 per cent of passengers at Copenhagen Airport make use of self-service check-in, which is far above the 11 per cent average for the industry.

Check-in initiatives
As an increasing number of passengers avail themselves of self-service check-in technologies, the pressure on the check-in counters decreases. CPH has also intensified its collaboration with the airlines – also in the collaborative forum of the Airline Operators Committee (AOC) – to reduce waiting times at check-in. Other goals of this collaboration are to allow optimal utilisation of airport capacity and to ensure that airport expansion corresponds to what will be needed in the future.

A smooth check-in traffic flow is dependent on the companies’ service targets and staffing. CPH has no way to penalise the companies if they do not live up to their service targets. This is a consequence of the EU rules that place the responsibility for proper staffing of check-in counters with the airlines at airports that serve more than two million passengers a year.

CPH has taken the initiative in working together with the airlines in the AOC to agree on minimum service standards that will allow an optimal utilisation of capacity, enable traffic planning, permit expansion as needed and make possible the provision of good consumer information. CPH’s goal is to have the new minimum standards in place before the summer of 2007, but this will require a continued active collaboration on the part of the companies as well.

CPH has also begun working together with the airlines in planning how to handle the cruise passengers that will be using the airport this coming summer. Cruise passengers often arrive in large groups many hours before the airlines are ready to check them in.

There were times in the summer of 2006 when CPH saw the arrival, within a very short time, of more than 60 busses of passengers bringing a total of 3000 cruise passengers to the airport. Experience shows that these passengers use the airport’s terminals as waiting rooms, often for hours, which puts an unreasonable amount of pressure on the check-in area.

The plan that CPH and the companies are currently working on is to use a modernised hangar furnished for the purpose of serving as a check-in area and waiting lounge for many of next summer’s cruise passengers. This way, passengers will be ready to go direct to the security checkpoints after they are bussed to the terminals. CPH expects about 100,000 cruise passengers will use the facility this coming summer.

CPH has also invited other parties to be part of the dialogue on handling cruise passengers, including the incoming agencies that handle arriving passengers at Copenhagen harbour and Dansk Rejsebureauforening (the Danish travel agency association).

Security controls
The responsibility for security controls lies with CPH, and since summer, CPH has been focusing on living up to the action plan for the repeal of Article 15, implementing the new EU rules and minimising waiting times for passengers.
Repeal of Article 15

A high level of security has first priority at Copenhagen Airport. Article 15 was issued by the EU Commission on 10 July, and CPH has followed the action plan agreed upon with the Civil Aviation Authority (CAA-DK). CPH is ready, and for that reason we expect that Article 15 will be lifted before long. The Danish authorities have also recently signified their agreement in this matter.

Since CPH is required to maintain very strict confidentiality with regard to Article 15 and its security procedures, this report can only emphasise that, in addition to the unannounced inspections by the CAA-DK, CPH also tests its own security regularly by more specific agreement with the authorities. This testing shows that CPH is in compliance with the requirements of the authorities with respect to level of security.

Especially after the adoption of the new carry-on baggage rules, it can be quite problematic for passengers that Copenhagen Airport must adhere to Article 15: not only may passengers have to undergo an extra security check at the airport when they arrive, but they also risk confiscation of any liquids they may have purchased. CPH was forced to solve this problem by guaranteeing that passengers will in such cases receive a refund for their purchase. 

Implementation of EU rules
CPH wishes to comply fully with EU rules, and CPH welcomes a harmonisation of the rules. In practice, however, there are major differences from one country to another in the way that EU rules are implemented at airports. The way a country chooses to implement these rules can have a considerable effect on traffic flow.

One example is the so-called "Critical Security Restricted Areas" (CSRAs) that the EU defined in 2005. These new security zones can be implemented in many different ways.

CPH and the users would have preferred a solution in which the CSRA was identical with the airside area: in practice, this would mean that the CSRA would extend all the way out to the airport "perimeter fence", so that all support functions would be within the CSRA. Arlanda Airport in Stockholm chose this solution, and it works well for the users.

The location and layout of the CSRA area is the purview of the Danish regulatory authority, the CAA-DK. Unfortunately, the Danish authorities have rejected the solution that would extend the reach of the CSRA all the way out to the "perimeter fence" of the airport, so it was necessary to set up to checkpoints in the middle of the airport’s outdoor areas. As a result, staff, flight crew, construction workers and others risk having to be screened many times during an ordinary workday.

The companies, CPH collaborative partners and CPH staff find this incomprehensible and express their frustration over these disruptive and time-consuming inspections.

Motor vehicles, persons and the items they bring with them are inspected at these checkpoints; security at these checkpoints will be tightened on 1 July 2007 and tightened again in 2009. This solution is untenable for an operating international airport, so CPH has taken the initiative in, together with the other users, beginning a new dialogue with the CAA-DK to have these checkpoints moved so that all functions supporting primary operations are within the CSRA. If this happens, it will have a positive effect on traffic flow.

Status: Waiting times at security checkpoints
An increasing number of EU requirements is lengthening the time it takes to process each passenger. In spite of this fact, it is CPH’s goal to keep waiting times at security checkpoints down to a level that is satisfactory for passengers. CPH tests passenger satisfaction regularly, and the data show that when waiting times increase to more than 20 minutes, satisfaction drops precipitously.

CPH’s goal under ordinary operating conditions is for most passengers to wait less than five minutes at the security checkpoint, and the maximum wait should be 20 minutes. Although this target is already the case most times, these quality standards will be virtually guaranteed once the new centralised security checkpoint is up and running.

Since this past summer, there have been two times at the airport when there was extra pressure on the security checkpoints: the week-long autumn school holiday and when the new rules for carry-on baggage were introduced. Things went well in both instances: only a fraction of the time did passengers have to wait more than 20 minutes.

*Autumn holiday with smooth-running security checkpoints. It takes four to six months to recruit and train new security personnel. Just as the busy autumn holiday traffic began, 23 new security staff were ready to start work, and CPH opened an extra security checkpoint near the Arcade. All this helped traffic flow smoothly, in spite of the fact that close to 30 thousand passengers were security-screened daily at Copenhagen Airport.
*Rapid implementation of EU rules. European airports were given just under three weeks to implement the new EU rules for carry-on bags, which apply to all flights out of airports in EU countries. The new rules came into effect on 6 November 2006. The most significant change for passengers was the restrictions on the amount of liquids allowed through security – and that they had to be in a see-through plastic bag.

The transition to the new rules went without a hitch at Copenhagen Airport.
The smooth flow of traffic was especially due to a close collaboration between CPH and the airlines – not least CPH’s biggest client SAS – in introducing the new rules. Among other things, CPH worked together with the airlines to run an information campaign to prepare passengers for the new rules.

One result of the campaign was that CPH purchased a total of one million plastic bags, expecting that the bags could prove to be a bottleneck, since the authorities did not inform the public about where such bags could be purchased [zip-lock bags are not commonly available in Denmark –trans.] In addition, when CPH announced its purchase of bags, a number of other European airports followed suit and bought bags in preparation for implementation of the new rules.

Other elements in the campaign were newspaper ads, information flyers, Web communications, signs at the airport, and sending out the bags and information to travel agencies, hotels and other collaborative partners. Before the new rules went into effect, CPH also held a campaign day with service assistants in green shirts handing out information on the new rules, and flyers and plastic bags were left under the windscreen wipers of all cars in the airport carparks as well. 

The new rules received a massive amount of press, both before and after the new rules were introduced. The campaign, with its packing tables and extra service staff from both CPH and the airlines, continued for two weeks after the new rules were implemented.

All this meant that most passengers who showed up at the security checkpoints were well prepared.

CPH continues to focus its efforts on the fact that there are many passengers who have not yet flown since the new rules went in to effect. It can be difficult for passengers to keep track of all the new rules the authorities have made, which is why CPH has set up a section on security on www.cph.dk that provides an overview of this complicated security topic. The section was put together in cooperation with the CAA-DK.

New centralised security checkpoint on the way
On the eve of 30 August, CPH instituted a number of preliminary projects to prepare the construction area so that the contractor could begin building immediately after the contract was awarded. CPH entered into a contract with a contractor in October. The cost of building the new security checkpoint – DKK 200 million – will be added to the long list of investments that have been made as a result of stricter regulatory requirements to airport security.

The work is progressing as planned: the contract requires contractor Jakon A/S to have the checkpoint ready before the busy summer season begins.

With its new 16-lane security checkpoint, CPH will be doubling its capacity. By establishing a single centralised checkpoint, Copenhagen Airport will increase both capacity and flexibility at the same time, which will translate into better service provided to passengers in future. The security checkpoint will have new facilities which will make it easier for passengers to better prepare themselves to be checked and thus help reduce waiting times. Improved working conditions for CPH security staff at the new checkpoint will also help ensure a good flow of passengers through security.

CPH has set up a special construction project section at www.cph.dk where anyone who is interested can take a behind-the-scenes look and follow the progress of the construction of the new security checkpoint. Site visitors can also view an animated video that provides a virtual tour of the coming facility. 
Baggage handling

The handling companies are in charge of baggage handling, whilst CPH operates the system that transports, sorts and security-screens the baggage.

Since this past summer, the system has functioned with a high degree of operational stability, running at an up-time rate of 99.5 per cent. The operational glitches that did occur had an insignificant effect on traffic due to more efficient emergency backup procedures – something that the handling companies at the airport have also helped with.

The time passengers spend waiting for their baggage in the baggage reclaim area – waiting time that is the responsibility of the companies – has increased by ten per cent compared with last year. This is also part of the collaboration on minimum service standards that CPH has started with the companies.

Baggage initiatives
Another initiative is a complete automation of baggage sorting at the airport, an innovative project developed in a close collaboration  between CPH, SAS and the handling company SGS.

CPH is investing about DKK 60 million in this project. Not only will fully automated baggage handling provide an increase in capacity; it will also boost quality and – not least – improve the working environment of baggage handlers by eliminating the need for them to lift heavy bags. In practice, this means that where the system is implemented, handling company workers will no longer have to move the bags from the conveyor belt onto transport vehicles.

Project development is based on the know-how and experience of all parts of the process, which has been one of the advantages of the close collaboration between the parties. Development of the project will continue into 2007, and implementation is expected to take place in 2008 and 2009.

In addition to this project, CPH also upgrades its baggage systems regularly. CPH expects to invest a total of about 60 million in improvements in 2007.

2. Punctuality at Copenhagen Airport

A smooth flow of traffic at the airport itself is only of value if the flights also leave on time.

The most recent quarterly report on airport delays published by the Association of European Airlines (AEA) indicates that one out of four flights leaving Copenhagen Airport was delayed by more than 15 minutes. This puts Copenhagen Airport in mid-field in the European comparison. CPH is dissatisfied with this ranking, since one of its goals is to be in the top third with regard to punctuality.

Many of the delays at Copenhagen Airport and the other European airports were caused by the same events, e.g. the discovery and foiling of a terrorist plot in London on 10 August this year.

However, the airport’s ranking in Europe must also be seen in the light of the reduction in airspace capacity through much of the summer and autumn by Naviair, so CPH was unable to fulfil its contractual obligations with respect to the number of planes allowed to land per hour. CPH is in a continual dialogue with Naviair on this matter, and Naviair has informed CPH that these adjustments were, among other things, due to technical problems in connection with implementation of new security equipment.

Several companies have contacted CPH in this connection and complained about the many adjustments that have been made, which give them a great deal of trouble – trouble that, at the end of the day, also damages Copenhagen Airport’s image.

CPH is currently discussing with Naviair an action plan for how to ensure the provision of optimal capacity, and we expect this plan to be implemented before the end of February.

It is one of CPH’s goals to reclaim its top-one-third ranking in punctuality. Through dialogue with our clients at the airport, e.g. our largest client SAS, we know that the companies are also working determinedly to improve punctuality. One thing we can see is that Sterling, CPH’s second-largest operator, has already obtained good results in this field.

3. All in all

The vision of Copenhagen Airports continues to be maintaining its status as the largest in Scandinavia, the most efficient in Europe and among the best in the world. This ambitious vision requires us to focus on growth in passenger numbers, efficiency, investment and high service standards. 
 
Since this past summer, service standards within CPH’s purview have improved significantly, which helps ensure a smooth flow of traffic through the airport. Things have gone reasonably well, even on the days with the largest projected numbers of passengers and in the process of transition to new EU rules.
 
However, CPH is completely dependent on other actors inside and outside the airport with respect to ensuring a smooth flow of traffic. This will in future require active cooperation from the companies and the authorities. The companies will have to make the necessary investments in proper service standards, so the “problem spots” at the airport do not turn into bottlenecks.

CPH is currently seeing a great deal of will to contribute and desire for collaboration in this field so that both CPH and the companies can do what is necessary to allow us to promise our clients, the passengers, some service standards they can count on. If this active cooperation from the companies continues, it bodes well for the flow of traffic this coming summer.
 
However, one thing is the performance of CPH and the companies; quite another is the framework within which the flow of traffic must function. CPH is currently investing massive amounts in infrastructure and capacity to make its “traffic machine” run even more smoothly. New technology is also an investment that frees up capacity to help improve the flow of traffic, something which can, for example, be seen from the fact that more and more passengers are now using the check-in kiosks and just beginning to check in online.
 
Security measures, however, are requiring ever more resources and are affecting airport operations to an increasing degree. An active contribution from the authorities is necessary if security solutions are to be found that live up to EU requirements but do not inhibit the smooth flow of traffic. CPH is confident that the dialogue opened with the authorities will lead to some user-friendly solutions before the summer traffic starts. 

Source: Copenhagen Airport
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