Talk to us about Abu Dhabi’s new Midfield Terminal? Any details you can reveal?
The Midfield Terminal Complex (MTC) continues to play a vital role in shaping the future of aviation and travel in the UAE. We are working with our key stakeholders to progress plans to complete construction, conduct rigorous testing, and prepare the MTC for operations. However, what I can say is that upon its completion, the MTC will be among the largest airport terminals in the world and the largest in the region under a single roof.
At over 740,000 sq m, the MTC will be able to accommodate 45 million passengers annually, host 79 aircraft at any given point, and offer an exceptional customer experience rooted in personalisation and curation.
How have you sought to reduce the friction of passenger travel?
Abu Dhabi Airports offers a unique service by having the US Customs and Border Protection (USCBP) at the airport. This allows travellers to the United States to have their travel documents checked at Abu Dhabi Airport, eliminating the need to do so upon arrival in the US. In addition to this service, which is not widely implemented in other airports in the region, we have recently introduced Seamless Biometrics, an innovative technical service that provides a frictionless boarding process without the need for any documents and taking no more than two seconds to complete.
The service has been available in T3 since October 2022, and passengers, airline staff, and USCBP officials have reported very positive feedback. Furthermore, we are introducing a state-of-the-art biometrics solution in our new Midfield Terminal. Biometrics will be available across multiple touchpoints, including mobile check-in, self-bag drop, emigration, and boarding. This innovative service will also be available to arriving passengers, delivering a one-of-a-kind technological encounter within Abu Dhabi Airports.
We have formed a partnership with the Federal Authority for Identity, Citizenship, Customs & Port Security (ICP) to enable auto-enrolment of passengers within the biometric solution, further reducing friction across the passenger journey.
Another area where we are looking to reduce travel friction for our passengers at Abu Dhabi Airports is ecommerce. We are currently developing a new online retail and F&B experience that will enable passengers to order their duty-free gifts or their favourite coffee on the go. Goods and services can be collected on their way through the airport or made available for collection on their return to Abu Dhabi.
What role has technology played in simplifying the travel process?
Today, technology has become a key factor in global business development, with significant impact across various sectors. Keeping up with the latest technological advancements is essential to maintain competitiveness.
Hence, Abu Dhabi Airports is committed to utilising advanced technology in the airports and travel services industry, which included the development of biometric solutions to reduce the passenger processing touchpoints.
One example of this is the consolidation of two existing passenger processing points: TDAS, which allows eligible passengers to enter the emigration/security search area, and the emigration process itself. These two independent process steps are being combined into a single, biometrically enabled step for the Midfield Terminal, simplifying the passenger travel process even further.
Another way we are simplifying the travel process is through our new self-bag drop technology, which will be available in Midfield. AD Airports is currently implementing 14 self-service bag drop units that will significantly reduce the time and effort as they are self-managed and will work hand-in-hand with the airline’s web check-in process. This technological solution is a key player in ensuring seamless and efficient passenger traffic and is proving very popular with customers such as Etihad.
Reports have previously stated that the airport’s growth is set to help support the growth of Etihad Airways. Beyond Etihad, what other international partners are you looking to work with? How important is global collaboration?
Alongside Etihad, we work very closely with our other airline partners based here, namely Air Arabia Abu Dhabi and Wizz Air Abu Dhabi. These low-cost carriers (LCCs) launched brand-new bases here in 2020, and we expect to see continued growth as they utilise new aircraft to launch new routes and expand on existing ones. We are also enhancing closer collaboration with markets that have recently reopened, such as China. In addition, we anticipate growth from foreign carriers, particularly those partners based in the GCC, India, and Pakistan markets.
Global collaboration is crucial to us, not only for connecting the Emirate of Abu Dhabi to new markets for business and leisure, but also for sharing best practices in airport operations, improving passenger experiences, and protecting the environment.
What role does Abu Dhabi Airports play in Abu Dhabi’s broader tourism goals?
AD Airports plays a significant role as the gateway to the UAE and Abu Dhabi. It has established several ground-breaking partnerships with tourism and travel agencies, encompassing airlines currently operating at the Abu Dhabi International Airport and those expected to operate in the future.
Moreover, we have expanded our travel services to not just include international airports like Abu Dhabi International Airport and Al Ain International Airport, but also Al Bateen Executive Airport, as well as internal airports such as Delma Island Airport and Sir Bani Yas Island Airport. Abu Dhabi Airports works closely with all our stakeholders, particularly the Abu Dhabi Department of Culture and Tourism, to drive sustainable growth in the culture and tourism sector.
At Abu Dhabi Airports, our purpose is to shape the future of airport experiences, which will support Abu Dhabi’s vision for sustained economic progress and diversification. This purpose drives everything we do, as we strive to fulfil our mission of providing a world-class airport ecosystem for our passengers and partners.
What’s your personal goal in terms of passenger numbers?
We ended the 2022 financial year with 15.9 million flown passengers, which was triple the number achieved in 2021. This was driven by a strong return to travel following the Covid-19 pandemic and easing of restrictions in Q1 2022. While we may not see the same rate of growth during FY23, we are cautiously optimistic that we will end the year with passenger numbers returning to pre-pandemic levels. This is a testament to the emirate’s potential as an attractive destination for visitors, residents, and businesses alike.
How close are we to pre-pandemic normality?
We ended our FY22 financial year with flown traffic at approximately 75 percent of pre-pandemic (2019) levels, with December (one of our peak months) reaching closer to 95 percent.
If this trend continues and based on the comments above, we expect to achieve traffic levels in line with pre-pandemic levels during FY2023. This would be a fantastic result and will underline Abu Dhabi Airports as a preferred choice for our airline partners and passengers.
While passenger numbers are up, cargo appears to be slowing, is this a dynamic you see continuing?
During the pandemic, there was a global drop in cargo volumes due to the suspension of travel and the disruption of airlines and airports worldwide. However, some airports including Abu Dhabi Airports has managed to drive growth thanks to airlines adding capacity, such as operating passenger aircraft as cargo-only flights.
Etihad Airways was one of these carriers, and thus Abu Dhabi Airports benefited from stronger cargo figures in the past few years. However, these aircraft were returned to the passenger fleet after the pandemic, resulting in less capacity for cargo and lower volumes of cargo transported.
Abu Dhabi is mainly a transit hub between the East and West. A drop in volumes linked to lower capacity available is not a significant concern as long as we can grow our origin and final destination to and from Abu Dhabi.
With more carriers operating into Abu Dhabi, we can build a more robust local offering that benefits the economy in Abu Dhabi. This is one reason why we are strengthening our cargo network and building relationships with other operators and carriers to use Abu Dhabi for their cargo operations.
As aircraft technology evolves, how do you see the long-term sustainability of the hub and spoke model of travel in the face of more efficient point-to-point aircraft?
There is a clear trend in the commercial aviation industry towards more point-to-point travel as customers prefer direct connections to their destinations, and airlines provide additional routes driven by highly efficient aircraft.
While this trend is reducing hub and spoke traffic, the long-term need for hubs will remain, especially for longer flight segments. The reduction in hub and spoke traffic will have an impact on airport design, driving the need for more contact stands to support faster turnarounds while reducing the demand for transfer infrastructure.
These changes in airport design will result in additional infrastructure investment over time. Abu Dhabi Airports has proactively planned for such changes by accommodating major airlines through its central terminals for the long run, while also catering to other types of air traffic between cities, including Air Arabia Abu Dhabi and Wizz Air.