Our Deputy Chairman and Chairman Elect Chris Chalk presented a review of airport moves from around the world at the RunwaysUK Land conference 26 June 2014. The conclusion was that the scale of the proposed move of LHR is significantly greater than what has been undertaken before.
Don't Miss Out: Strategies for Making the Most of the Ethena DigitalOpportunity
A comparison of airport relocation contrasted against the current UK airport debate
1. Runways UK Land – June 2014Runways UK Land – June 2014
A World Tour
Chris Chalk, Deputy Chair BAG
2. Runways UK Land – June 2014
• UK involved at World’s top 60 international airports
• We contribute to most of the award winning airports
• Heathrow T5 - World’s best terminal
• It’s not about the ability to deliver on the airport it’s
about everything outside the airport
Our delivery capability
3. Runways UK Land – June 2014
What are we looking for
• Experience from replacement airport
development
• Scale of redevelopment and distance
• Success factors
• Old airport redevelopment
4. Runways UK Land – June 2014
A World Tour – replacement airports
Istanbul
Munich
Hong Kong
Bangkok
Athens
Oslo
Denver
Quito
Montreal
5. Runways UK Land – June 2014
Relative Size
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80
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100mppaonclose
Heathrow?
At Closure
Current
Growth to close
6. Runways UK Land – June 2014
Issue of distance (from old to new)
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Drivedistance(miles)
Airport size (million pax)
Heathrow/Thames
Istanbul
Bangkok
Hong Kong
Oslo
Berlin
Denver
Munich
Athens
Quito
Montreal
7. Runways UK Land – June 2014
Relative scale of move
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Heathrow /
Thames Estuary
Istanbul
Bangkok
Hong Kong
Oslo
BerlinDenver
Munich
Athens
Quito
Montreal
8. Runways UK Land – June 2014
• Move to new airport – old airport left to market
– Hong Kong
• Move to new airport – state redevelop old airport
– Denver
– Munich
• Move to new airport (and back again?)
– Bangkok
– Montreal
• Move to new airport – project finance
– Athens
– Quito
– Istanbul
9. Runways UK Land – June 2014Runways UK Land – June 2014
Move to new airport
– old airport left to market
10. Runways UK Land – June 2014
Hong Kong
Kai Tak to
Chek Lap Kok
30 mppa on close in 1998
22 miles
Overnight move
No cross funding
11. Runways UK Land – June 2014
HKG
Expanding
Expanding from 70 to
120mppa
Population build up
around airport
Night-time noise limits
12. Runways UK Land – June 2014
Hong Kong Kai Tak Airport - 2013
15 years after opening
Little re-development
Legal challenges
Off site development
first
13. Runways UK Land – June 2014Runways UK Land – June 2014
State redevelopment of old airport
14. Runways UK Land – June 2014
Munich
12 mppa on close in 1992
20 miles
18. Runways UK Land – June 2014Runways UK Land – June 2014
Move to the new (and back again)
19. Runways UK Land – June 2014
Bangkok
38 mppa on close in 2006
30 miles
Partial move back to Don
Muang
20. Runways UK Land – June 2014
Bangkok - Don Muang International Airport 2014
21. Runways UK Land – June 2014
Montreal Dorval to Mirabel Airport
8 mppa on “close” in 1975
30 miles
Dorval never closed
Passenger terminal to be
demolished 2014
22. Runways UK Land – June 2014Runways UK Land – June 2014
Privately financed airports
23. Runways UK Land – June 2014
Athens
11 mppa on close in 2001
18 miles
Concession
No cross funding of land
24. Runways UK Land – June 2014
Athens (old) Ellinikon Airport 2014
25. Runways UK Land – June 2014
Quito Airport
6 mppa on close in 2013
20 miles
Concession
No cross funding of land
27. Runways UK Land – June 2014
Istanbul Airport
~ 75 mppa on close in 2017
35 miles
Concession
No cross funding
28. Runways UK Land – June 2014
Istanbul 3rd Airport
• 2.8m population new city to be developed
• 2 million sqm airport commercial centre
• Opening 90mppa
• Opening 2017!
• Ultimate capacity >150mppa
• 5 runways
• 7,500 Ha (5x Heathrow)
29. Runways UK Land – June 2014
Summary
• The market will protect the land prices and
constrain re-development
• Redevelopment by the State requires further
cash and limited return
• Unrealistic plans will backfire
• Existing airport asset values are not used in
funding replacement airports in the private
sector
30. Runways UK Land – June 2014
The measure of the challenge
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Heathrow /
Thames Estuary
Istanbul
Bangkok
Hong Kong
Oslo
Berlin
Denver
Munich
Athens
Quito
Montreal
31. Runways UK Land – June 2014Runways UK Land – June 2014
Questions
Chris Chalk, Deputy Chair BAG