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San Francisco International Airport purchases six new electric buses

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Today Proterra announced that San Francisco International Airport (SFO) has purchased six 40′ Proterra Catalyst E2 electric buses and three 60 kW Proterra plug-in chargers, joining a growing list of airports across North America transitioning to electric buses for airport ground transportation. The new battery-electric bus fleet will reduce Bay Area emissions and support SFO’s goal of carbon neutrality by 2021 while cutting its bus operating costs.

As one of the fastest-growing airports in the U.S., SFO has ambitious plans in place to reduce its carbon footprint. SFO’s Five-Year Strategic Plan sets goals of carbon neutrality across airport-controlled operations by 2021 and the reduction of greenhouse gas emissions by 50 percent from a 1990 baseline. Part of that plan includes the creation of a Clean Vehicle Policy to promote the adoption and deployment of low emission vehicles by both airport departments and ground transportation providers. The new battery-electric Proterra Catalyst buses will replace six diesel buses in its current operating fleet and will eliminate more than 23 million pounds of greenhouse gas tailpipe emissions over the 12-year life of the vehicles. SFO expects to purchase additional battery-electric buses to replace its CNG vehicles, for a greener, more modern fleet.

“Earth Day serves as a call to action; an opportunity for us to reaffirm our commitment to the environment,” said Airport Director Ivar C. Satero. “SFO is an airport industry leader in sustainability, and we have set big goals to achieve zero net energy use, zero waste, and carbon neutrality. By deploying San Francisco’s first public battery-electric buses, we’re on the path to zero emissions in our ground transportation services, leading the way in our quest to be the world’s most sustainable airport.”

The new electric buses will integrate batteries that are designed and manufactured down the street from the airport at Proterra’s Silicon Valley headquarters in Burlingame, California. With 440 kWh of battery capacity on board, the buses will be part of SFO’s fleet that currently provides buses to shuttle passengers between the terminals, long-term parking garages and other airport locations along daily routes.

SFO joins other California airports that are leading the electrification trend across ground transportation fleets, including Sacramento International Airport (SMF) and Silicon Valley’s Norman Y. Mineta San José International Airport (SJC). Beyond California, five additional airports across the country have chosen Proterra electric vehicles for their ground transportation needs, including Raleigh-Durham International Airport (RDU), Honolulu International Airport (HNL), John F. Kennedy International Airport (JFK), Newark Liberty International Airport (EWR) and LaGuardia Airport (LGA).

“San Francisco International Airport has long been a leader in sustainability and joins other forward-thinking airports around the country in transitioning ground fleets to 100 percent battery-electric buses,” said Proterra CEO Ryan Popple. “We are proud to help one of our local airports offer superior service and meet its sustainability goals while also providing reduced vehicle maintenance costs and lower total cost of ownership.”

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Fly Leasing completes sale of a $295 million portfolio of 12 aircraft

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Fly Leasing Limited announced that it has completed the sale of a portfolio of 12 aircraft for an aggregate price of approximately $295 million. The portfolio was comprised of Airbus A320 and Boeing B737 narrow-body aircraft with an average age of over 10 years.

“This portfolio sale accomplishes several strategic objectives; including generating free cash, reducing leverage, reducing our lessee concentration, and lowering the average age of our fleet,” said Colm Barrington, CEO of FLY. “This is another example of how FLY has consistently sold aircraft from its portfolio at premiums to book value, underscoring the strong value of our fleet.”

Three sales were recognized in the fourth quarter of 2018, eight sales were completed in the first quarter of 2019, and the final sale was completed in April. The sales were at a premium to net book value. FLY will be reporting its first quarter results on May 9th, as previously announced.

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SriLankan Airlines’ new plan to be like Emirates

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In a bid to turn the loss making airline into a profitable venture, SriLankan Airlines has come up with a five-year strategic plan. Part of the plan will see them emulating industry leader Emirates, with a new hub and spoke network model.

In a statement SriLankan Airlines said:

“SriLankan Airlines has formulated a new five-year Strategic Business Plan for the period 2019-24 with the objective of transforming itself into a financially viable organization airline group with high brand visibility and a global reputation for excellence,”

They went on to say that the national carrier had an ‘enormous contribution’ to make to the GDP of Sri Lanka, including import, export and tourism.

What is SriLankan Airlines planning?

Their latest five year strategic business plan includes major development of the Colombo hub to make it a key connecting point for a variety of markets. SriLankan are targeting passengers connecting through Africa, Asia and the Middle East, in a bid to grow as big as rival airline Emirates.

As a member of Oneworld, SriLankan are hoping to leverage their membership to develop their network for the future. In contrast to their current point to point model, they plan to work on more of a hub and spoke model to develop new opportunities.

The plan is to be presented to the Government of Sri Lanka for approval shortly.

New routes and fleet

Currently, SriLankan Airlines operate with a fleet of 27 Airbus aircraft. Specifically, these are 13 A320 family aircraft and 14 A330s. As part of the five year plan, the carrier intends to select new fleet inclusions which match the requirement of their developing route network. They have also said they want to reconfigure their existing fleet to offer an enhanced business class service.

Already, the airline has announced a fifth weekly service between Colombo and Tokyo from July onwards, using its Airbus A330-300s. If the plan is formalized by the government, we expect to see many more new route announcements over the coming weeks.

As well as routes and fleet, the plan specifies that it will:

  • Enhance the customer experience by improving customer-centricity throughout the airline
  • Adopt best practices to improve productivity
  • Grow online sales to reach a wider market in a more cost effective manner
  • Improve employee engagement
  • Implement a competitive cost structure through a greater cost consciousness throughout the company

The plan is being headed up by Group Chief Executive Officer Vipula Gunatilleka, who was appointed to the airline in mid-2018. Prior to joining SriLankan, Gunatilleka was a board member and CFO of TAAG Angola. There, he worked closely with Emirates while they were managing TAAG, so no doubt knows his hub and spoke business very well already.

A loss-making airline

The airline is undergoing a major shakeup with a view to turning a profit. Over the last nine months, the carrier’s net loss more than doubled to a total loss of $135m. It is hoped that the five year strategic plan being tabled today will transform the airline by 2024.

 

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Visitors to Walter E. Washington Convention Center encouraged to ask Alexa

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Through a strategic partnership between Events DC, the official convention and sports authority for the District of Columbia, and Volara, the voice hub for the hospitality industry, visitors to the Walter E. Washington Convention Center are finding their way around the facility and hosted events easier than ever before through an ever-familiar voice.

The new voice-based wayfinding solution atop Amazon Alexa is powered by Volara’s market-leading enterprise-grade conversation management technology. Inside the 2.3 million-square-foot building sits wayfinding kiosks that host the voice assistant. Visitors are encouraged to ask Alexa about happenings within the convention center and ask where to find meeting spaces, food-and-beverage outlets, the closest shoe shine, the business center and more. More than 50 kiosks featuring the Volara-powered solution on Amazon Alexa will greet visitors, and voice commands will extend outside the facility to local businesses, services and attractions.

“At the Walter E. Washington Convention Center, we aim to provide our customers with a memorable experience,” said Samuel Thomas, senior vice president and general manager of Events DC. “Most people are tech savvy, and they want to have real-time access to the information they need in a format they are most accustomed to using. We partnered with Volara to provide wayfinding on voice command. Now event goers can get their questions answered quickly without having to seek out staff; it’s quick and efficient. We aren’t replacing face-to-face employee interaction – customer service is our core value and the reason we engaged in this project. This voice technology enables us to scale personal service and gives our customers the option to get information their way. It’s exciting.”

Wayfinding is just the first step. Thomas said his team is working with Volara to add more commands to the voice assistant with the goal of personalizing experiences for visitors. Show organizers can customize or brand kiosks strategically placed in their event locations. Volara’s conversation management engine will then be leveraged to respond to voice prompts for each event. The convention center is considering selling kiosk sponsorships as a value-added service. An automobile manufacturer, for example, may want to sponsor all kiosks in the Convention Center during The Auto Show, providing a good revenue stream for the facility and making the event more interactive, informative and fun.

“When we tell customers about this voice initiative, they get really excited,” Thomas said. “We are always trying to find ways to reinvent ourselves and provide better services for customers, and technology is at the core. Recently we added smart furniture to the public areas that contain USB ports or standardized plugs to keep people connected. We are one of the first convention centers to offer free WiFi. And, through our strategic partnership with Digital Conventions, we now have the most robust digital signage program in the country. This voice project with Volara is yet another added service that we are providing to our customers. With the flexibility of Volara’s software, the sky is the limit.”

Lasan Coger, general manager of Digital Conventions, said he was intrigued when Thomas approached him about the wayfinding by voice command initiative. “A collaborative team from Events DC, Digital Conventions and Volara met and put our minds together to see how we could launch this program. It was challenging to get to where we are today, but everyone involved loved the challenge, and more importantly, we love the product. When we see the responses from attendees at our events, it validates what we are doing, and we can’t wait to expand this program.”

Volara provides platform agnostic voice-based conversation management software and a secure integrations hub to the hospitality venues. Its software turns the leading consumer voice assistants (Amazon Alexa, Google Assistant and IBM Watson) into a business tool that drives more efficient customer service, influences visitors’ behaviors, and improves net promoter scores. Volara is a launch partner for both Google Assistant Interpreter Mode and Alexa for Hospitality.

“We are thrilled to bring wayfinding on voice command to the Walter E. Washington Convention Center,” said David Berger, Volara CEO. “We see Convention Centers, Casinos, Malls, Stadiums, Amusement Parks or any venue that can benefit from wayfinding as an exciting vertical for Volara. This successful deployment is proof that Volara-powered voice assistants can make a venue more visitor friendly, easier to navigate and more efficiently operated. Today we have a waiting list of convention centers that are eager to deploy our solution. The interest is overwhelming.”

To learn more about Volara-powered voice assistant programs, visit volara.io.

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The Internet knows you are planning a vacation and will charge you more

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People are starting to plan their summer vacation, and for many, the planning process itself is the beginning of a well-deserved rest. However, it does cause frustration when after a couple of price checks on the Internet, one starts to notice how flight ticket and apartment booking quotes take an upward trend. Such behavior is called price discrimination and is a prevalent tactic across the travel industry, but there are ways to protect yourself from it.

Intuitively unfair, the concept of price discrimination (if not based on race, religion or national origin) is legal and can take many forms. Its general principle is that potential customers get to see different prices of the same product or service based on their willingness to pay as perceived by the seller.

“Many online retailers who use special algorithms to create an illusion of high demand and an increasing price. Let’s say, the quotes for all the hotel rooms you checked yesterday have increased only to encourage you to make a fast decision to book,” explains Naomi Hodges, Cybersecurity Advisor at Surfshark. “The same goes for flight tickets and car rentals so that excellent offer you found an hour ago might have deteriorated to ‘it’s still ok, but I have to hurry’ at your second check.”

Various online businesses are using personalized pricing techniques to manipulate people’s emotions. The leaders in this field, for example, Uber, hire behavioral economists who help to craft the logic of algorithms of differential pricing.

The core ingredient to make the algorithms work is your online data which is acquired when websites insert cookies into your browser and get to know your IP address.

“Such information can reveal where you live, how new or expensive device you use, which websites you visit, what are you interested in, whether you are an easy spender or not, and much more,” says Naomi Hodges.

When your data is being used for personalized pricing, the car rental might become expensive if you already booked a flight to some destination. The same goes for hotel and domestic flight booking.

The price manipulation can go even further by knowing that you are a user of a brand-new iPhone model which indicates higher purchasing power and in turn – your willingness to pay more than other customers.

How to avoid price discrimination?

Naomi Hodges reveals that it is rather easy to check if you are being differentiated from other potential travelers. Taking a few steps can help you save a sum worth a couple of nights at a great hotel or even a return flight ticket if you are an occasional traveler.

If you notice a higher flight ticket/car rental/hotel booking price than before, relax and follow these tips:

  1. Clear your recent digital footprint. You can do that by clearing your browser cache, history, and cookies in the browser settings.
  2. Turn on a virtual private network (VPN) app. This trick can help you change your location by giving you a different IP address. In many cases prices are based on the device’s location, so you can avoid higher prices simply by pretending that you are in another country. Check different countries to see how people there
  3. Turn on Incognito Mode (Chrome), Private Mode (Safari) or Private Window (Firefox) in your browser. This step will allow you to browse cookie-less.
  4. Check the prices using a different device. Differentiating between desktop and mobile users is a common practice.
  5. Change the top-level domain (.com, co.uk, .fr, .net) to a different one. For example, flights4u.com might display different prices than flights4u.de.

Best results can be achieved if all these tips are used simultaneously.

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Heathrow Airport: Calling all sustainable innovators

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Heathrow has today launched a prize worth £30,000, to be awarded to a winning idea that will help the airport reduce its carbon emissions as it explores solutions that will address climate change. Heathrow’s new “Innovation Prize” is part of the airport’s new “Centre of Excellence,” which is a hub of learning and exploration that will accelerate the arrival of sustainable air travel. Heathrow has also today announced the launch of its first research think tank comprised of British universities.

The new Innovation Prize is open to those with entrepreneurial ideas on how to reduce carbon impacts through one of three ways:

  • Sustainable surface transport: Enabling travel to and from the airport with low or zero emissions;
  • Preparing for sustainable flight: Expediting the arrival of a fossil-fuel free flight, including through the introduction of new hybrid and electric aircraft; and
  • Delivering negative emissions: Finding new, practical ways to capture and use carbon at or near the airport.

Applications for the Innovation Prize will be accepted until May 22 online through a dedicated website.

The prize is sponsored by Heathrow’s Centre of Excellence which connects experts – from entrepreneurs to academics – and offers Heathrow itself as a living laboratory to test and try new ideas to encourage sustainability in aviation. The Centre is already investigating how to turn waste plastics into pavement materials at the airport.

Matt Gorman, Heathrow Director of Sustainability, said: “Climate change is the greatest threat facing our generation and it is imperative we take meaningful steps to address our impacts – and we need to make them quickly. Through the Centre of Excellence, and by partnering with top scientists we will continue to think radically about sustainability, translate ideas into action at Heathrow, and across our industry.”

The Centre of Excellence will bring together Heathrow’s first think tank of university partners to work with the airport on new coordinated research on sustainable aviation challenges. Brunel University London, Cranfield University, the University of Essex and Royal Holloway, University of London will be invited to pitch their ideas for funding starting this summer, before initiating the successful projects later this year. The think tank will explore topics such as carbon and net zero air travel alongside other environmental challenges like noise, air quality and waste.

Professor Geoff Rodgers, Vice-Provost for Research at Brunel University London, the airport’s most local university, said: “We consider the sustainability agenda around airports and aviation to be one of the premier opportunities for UK research and innovation. Brunel University London is delighted to be involved in this initiative. It will allow us to work in collaboration with Heathrow and the other partners to develop the innovative technologies necessary for the sustainable development and growth of the airport.”

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Fraport 2018 Fiscal Year: Revenue and Earnings Increase Significantly

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Fraport

Boards propose dividend increase to EUR2 – Outlook remains positive
In the 2018 fiscal year (ending December 31), Fraport AG continued on
its growth path, achieving new records in revenue and earnings.
Supported by strong passenger growth at its Frankfurt Airport home
base and its Group airports worldwide, revenue climbed by 18.5
percent to nearly EUR3.5 billion. After adjusting for revenue related
to capital expenditure for expansion measures at the international
Group companies (based on IFRIC 12), revenue rose 7.8 percent to over
EUR3.1 billion. About two-thirds of this increase can be attributed
to Fraport’s international portfolio – with the airports in Brazil
and Greece, in particular, making a significant contribution.
Fraport AG’s executive board chairman Dr. Stefan Schulte said: “We
are pleased to look back on another very successful year, especially
for our Group airports around the world. Here in Frankfurt, however,
2018 presented challenges due to the constraints in European airspace
and the strong traffic demand. For the medium and long term, we are
very well positioned both at Frankfurt Airport and in our
international business. Moreover, we are laying the foundations for
further long-term growth by implementing our expansion projects.”
Revenue and earnings targets achieved
The operating result (Group EBITDA) climbed markedly by 12.5 percent
to over EUR1.1 billion. The Group result (net profit) rose even
stronger, by 40 percent to EUR505.7 million. This includes earnings
gained from the sale of Fraport’s stake in Hanover Airport, which
contributed EUR75.9 million. However, even without the positive
effects from the Hanover transaction, Fraport already achieved its
revenue and earnings targets. Operating cash flow slightly dipped by
2.0 percent to EUR802.3 million. This was mainly due to changes in
the net current assets related to the reporting date. After adjusting
for these changes, operating cash flow rose by 18.8 percent to
EUR844.9 million. In line with expectations, free cash flow fell
sharply by 98.3 percent, because of more extensive capital
expenditure for Frankfurt Airport and Fraport’s international
business, while remaining in positive territory at EUR6.8 million.
Given the positive business development, the Executive Board and
Supervisory Board will propose to the Annual General Meeting that the
dividend be raised to EUR2.00 per share for the 2018 fiscal year
(2017 fiscal year: EUR1.50 per share).
Passenger traffic rises noticeably at FRA and internationally
Serving some 69.5 million passengers, Frankfurt Airport (FRA)
achieved a new passenger record in 2018 and growth of 7.8 percent
compared to 2017.
CEO Schulte commented: “We are pleased that the airlines have
significantly expanded their flight offerings at Frankfurt Airport
for the second year in a row, thus improving connectivity and
prosperity for businesses far beyond the Frankfurt Rhine-Main Region.
Until the first pier of the new Terminal 3 opens in late 2021, we
will focus on maintaining a high level of service quality at
Frankfurt Airport – while dealing with the constraints affecting the
entire aviation industry. In particular, enhancing the situation at
the security checkpoints will be a top priority for us.”
In response to strong passenger growth, Fraport hired over 3,000 new
staff members at Frankfurt Airport in 2018. Despite the constraints
experienced at some central process points in the terminals during
peak periods – particularly at the security checkpoints – global
satisfaction of passengers with Frankfurt Airport was at 86 percent
in 2018 – thus even posting a slight increase compared to the
previous year (2017: 85 percent). To provide additional space for
security checkpoints, Fraport is investing in an extension to
Terminal 1 for installing seven extra security lanes in the summer of
2019.
Fraport’s international portfolio also posted a significant gain in
passenger traffic during 2018. In Brazil, the two airports of Porto
Alegre and Fortaleza reported a 7.0 percent increase to 14.9 million
passengers in 2018 – Fraport Brasil’s first year of operating these
airports. At the 14 Greek airports, traffic rose by almost 9 percent
to 29.9 million passengers. Antalya Airport in Turkey grew by a
significant 22.5 percent to 32.3 million travelers, a new historic
passenger record.
Outlook: Growth expected to continue
Fraport is forecasting sustained growth at all of the Group airports
in fiscal year 2019. At Frankfurt Airport, passenger volume is
expected to rise between around two and roughly three percent.
Fraport expects consolidated revenue to increase slightly up to
around EUR3.2 billion (adjusted for IFRIC 12). Group EBITDA is
expected to reach a range of around EUR1,160 million and
approximately EUR1,195 million, despite the non-recurring revenue
from the sale of Fraport’s stake in Hanover Airport. The application
of the IFRS 16 accounting standard – which changes the accounting
rules for leases – will not only make a positive contribution to
Group EBITDA, but will also lead to much higher depreciation and
amortization in fiscal year 2019. As a result, Fraport expects Group
EBIT to be in the range of about EUR685 million and around EUR725
million. The company also expects to post a Group result (net profit)
of around EUR420 million and about EUR460 million. The dividend per
share is expected to remain stable at the higher level of EUR2 for
the 2019 fiscal year.
Fraport’s four business segments at a glance
Revenue in the Aviation segment increased by 5.5 percent to slightly
over EUR1 billion. This was due partly to higher revenue from airport
charges resulting from increased passenger traffic at Frankfurt
Airport. At EUR277.8 million, segment EBITDA increased by 11.3
percent year-on-year, while segment EBIT rose 6.5 percent to EUR138.2
million.
Revenue from the Retail & Real Estate segment dropped 2.8 percent
year-on-year to EUR507.2 million. A major reason for this drop was
significantly fewer proceeds from the sale of land (EUR1.9 million in
the 2018 fiscal year versus EUR22.9 million for the same period in
2017). In contrast, parking income (+ EUR8.3 million) and retail
revenue (+ EUR0.8 million) grew. Net retail revenue per passenger
fell 7.4 percent year-on-year to EUR3.12. Segment EBITDA increased by
3.4 percent to EUR390.2 million, while segment EBIT climbed 2.8
percent to EUR302.0 million.
Revenue in the Ground Handling segment rose by 5.0 percent
year-on-year to EUR673.8 million. The strong growth in passenger
traffic resulted, in particular, in stronger revenue from ground
services and higher infrastructure charges. On the other hand,
passenger growth also led to higher personnel expenses at the
FraGround and FraCareS subsidiaries. Accordingly, segment EBITDA
declined by EUR7.0 million to EUR44.4 million. Segment EBIT dropped
considerably by 94 percent, but at EUR0.7 million still remained in
positive territory.
At nearly EUR1.3 billion, the International Activities and Services
segment significantly advanced by 58 percent compared to the previous
year. After adjusting for the EUR359.5 million in revenue related to
IFRIC 12, the segment’s revenue rose by 20.1 percent to EUR931.4
million. This revenue growth received major contributions from the
Group subsidiaries in Fortaleza and Porto Alegre (+ EUR90.9 million),
as well as Fraport Greece (+ EUR53.2 million). Segment EBITDA
increased a noticeable 28.3 percent to EUR416.6 million, while
segment EBIT jumped 40.7 percent to EUR289.6 million.
You can find our 2018 Annual Report and the presentation from the
press conference on our financial statements (as of 10:30 a.m.) on
the Fraport AG website.

MEDIA CONTACT: Fraport AG, Torben Beckmann, Corporate Communications, Media Relations, 60547 Frankfurt, Germany, E-mail: t.beckmann@fraport.de

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