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Development

Digital development and IT

Isavia endeavours, in tune with its strategy, to continuously strive to adopt new technology and procedures. In an effort to ensure the focus on these strategic guidelines and the importance of future digital development in the operation of the company, a separate support division for these issues was created at the end of 2019. Isavia is a service company in airport operations, and the role of IT in this context is to create a digital venue for employees, partners and customers. Thus, the company supplies important infrastructure and internal services to increase economisation, efficiency and services security to those who pass through Keflavík Airport.

Efforts were made in 2020 to focus on internal aspects and assess the manner in which digital developments and IT can support Isavia’s future vision. The decision was made to formulate a policy for the issue, establish guiding lights for the future and a clear framework regarding decisions and information provision. Work on the IT policy began at the end of 2020 and will be completed in early 2021. Clear objectives were established for the issues for 2021, with a focus on data-driven decision making. The idea is to focus on strengthening data warehouses and increase management access to information. The main criteria is that access to information is open unless there are specific reasoned arguments that this should not be the case.

The operation in 2020 was characterised by the challenges posed by Covid-19. The first task of the new division was to lead the adoption of Microsoft Teams, which is a dynamic collaborative and communication tool. The adoption of Teams was quite speedy and successful during the work-at-home trend during the year and is now one of the basic tools used by employees. The company has been able to adopt new procedures as regards filing, the manner in which employees work together and how projects are managed.

Isavia and its subsidiaries employ numerous employees who undertake a wide range of tasks. To strengthen communications between the groups working in different locations within Iceland, and to bolster team spirit, the decision was made to adopt Workplace, a communications medium for workplaces. The medium is based on the same characteristics and interfaces as Facebook while still being specially designed for company environments where access is easy from any location and at any time. It is easy to access information on the company, the work and the projects in progress. The adoption of Workplace was a success and was carried out during the second wave of the pandemic in 2020.

The company also adopted electronic signatures in 2020, and the adoption of the first stage of the project has been completed. At present, electronic signatures are used in conventional agreements with suppliers and employees. The project supports the environmental goals of the company as regards reducing the carbon footprint of its operations and has also helped the company to maintain conventional operations despite the ban on gatherings. The next work components involve the customers of Isavia and applications to the external website of Isavia.

Self service options at Keflavík Airport

Keflavík International Airport

The Leif Eiríksson Air Terminal was inaugurated in April 1987. It was, at the time, around 20,000 m2. At present, it is approximately 73,000 m2, 3.5 times larger than when opened. During the terminal’s first year of operation, 750 thousand passengers passed through it. In 2019, this number had risen to 7.25 million passengers. This is beyond what was stated in the basic passenger forecast of the Masterplan for Keflavík Airport. The schedule assumed 8.8 million passengers in 2025 and 13.8 million passengers in 2040.

It is clear, therefore, that to meet international service standards, the airport’s capacity will have to be increased, and the development plan for Keflavík Airport is prepared to meet this need. The schedule is based on an extensive needs assessment. The tasks of the schedule are divided between air terminal projects, airport systems projects and road construction projects. Work was begun in 2020 on designing projects that will be tendered, and construction will begin in 2021.

Air terminal systems

This year we plan to issue invitations to tender for projects relating to two extensions to the Leifur Eiríksson Air Terminal. Construction is expected to be complete in 2022. One is a single-floor extension with a basement that will improve the baggage processing of arrivals in the terminal. Considerable changes will be made to the internal organisation of the arrivals area, and a part of this is the instalment of new baggage handling systems.

The other is an extension on two floors, without a basement, attached to the south building of the terminal. This is intended to improve the facilities offered to passengers passing through the departures gates at the east end of the south building. Included in the project is a new passenger boarding bridge (PBB).

Runway systems

An invitation to tender for the construction regarding two taxiways at Keflavík Airport will be issued and are to be completed this year. One is a new 1200 m taxiway for aircrafts that links the terminal’s apron to the runway, and the other is maintenance and renewal of lighting equipment on one of the airport’s large taxiways. The new taxiway will increase the safety and efficiency of the runway system

Roadworks

The plan is to issue an invitation to tender for two new roads within the airport area and to finish their construction this year. One of these roads is a 1500 m long service road to the construction site and will, in the future, be of use for goods transport to and from the airport area and the terminal. The other is a 500 m circular connection which will link the current traffic system in the forecourt of the terminal to the current layout of Reykjanesbraut. This will considerably improve road safety and will decrease traffic blockages at the terminal.

Another project for 2021 is the initiation of the design or continuance of projects that are next on the development schedule. The airport terminal projects are, according to the development schedule, as follows:

  • The continued broadening of the concourse between the north and south buildings, with new borders and the enlargement of the food and beverage area.
  • A new concourse with up to 17 aircraft gates with gangways together with gates for remote stands.
  • New service desks for arrivals and departures passengers in the new north building, together with an area for baggage screening.

The airport systems projects are intended to increase the capacity and safety of the runway system and eliminate the bottlenecks that could form there. These projects include a de-icing apron, new access taxiways, a fast-track taxiway and other connections between aprons and taxiways. In addition, work has begun on preparations for a vehicle parking building to the west of the Leifur Eiríksson Air Terminal.

Invitations to tender for project management and project supervision as regards the construction at Keflavík Airport were completed at the end of 2019 and resulted in a long-term agreement with the UK construction and consultancy firm Mace. Mace employees began work at the beginning of 2020, and there are, as a rule, 2–4 employees in Iceland who are involved in the preparations for construction.

Mace will be responsible for the project and its supervision as regards the planned construction, including the construction of the East Pier, a new concourse to the east and the construction of a new airport building. In addition, the company will also provide consultancy services for other Isavia projects at Keflavík Airport, including a linking building for the widening of the boarding corridor between the north and south building of the airport. There is still some way to go before construction can begin on the East Pier and the new terminal, as construction of this magnitude requires several years of preparatory work. The work of Mace during the year has included the organisation of project management, project governance, risk assessment, communications with stakeholders, sustainability and more.

Keflavík Airport major development plan

Our people

- Cleanliness in pandemic

Jófríður Leifsdóttir

Jófríður Leifsdóttir

Manager of soft service

How have you ensured sufficient cleaning at the time of a pandemic and did you make any changes to the routine?
Ensuring cleaning has been going very well. We have a service agreement with a cleaning company at Keflavík airport and the scope of the project is very extensive. The contractor has adjusted to new circumstances and demands as needed. We have also needed to respond to all kinds of specific cleaning, especially at the very beginning of the pandemic when we were having customers from high-risk areas,

with possible infections. All the while we still had to ensure the safety of other passengers and employees at the airport. Amongst other things we have put extra effort into cleaning the most common touching points and adjusting chemical use. We now do all wiping down with disinfectants. The cleaning contractor has also adjusted his working procedures in many ways. As an example, following zoning procedures and adjusting timing of cleaning so it will take place when passengers have evacuated the area, so it will be clean when the next group of passengers passes through. Cleaning is executed according to the INSTA 800 quality standard which we implemented in 2018.

How did you ensure access to personal infection prevention?
We improved access to personal infection prevention at the airport to further extent by increasing the number of disinfectant stations substantially. Last year was followed by many challenges

when demand for hand sanitizers worldwide was at an all-time high and shortage even occurred at one point in time, however that was resolved successfully and in co-operation with suppliers.

How have passengers responded to it and was there any feedback?
Our main feedback from passengers is through a survey performed by the Airport Council International, which measures passenger satisfaction compared to other airports worldwide, and in recent years we have gotten a very positive feedback for cleanliness at our airport. We recently accepted a special acknowledgement from ACI for cleanliness during Covid-19, but it is based on passenger's experiences of the cleaning- and security measures that where taken. This was a big part of the positive experience of travelling in a new and changed world and therefore it was very pleasant for Keflavík airport to accept this acknowledgement.

Isavia Regional Airports

Maintenance work is carried out on runways, aprons and buildings each year, insofar as funds allow. The following regional airports were painted during the year: Reykjavík, Akureyri, Egilsstaðir, Höfn, Vopnafjörður, Þórshöfn, Bakki, Sandskeið, Gjögur and Reykjahlíð. The volume of paint used was: 10,359 litres of white, 1,124 litres of yellow and 468 litres of black.

A number of urgent tasks were undertaken in 2020, which were on the National Transport Policy schedule, and in addition, funds were allocated through the economic efforts of the government. An example of these is the overlay laid at Þórshöfn Airport and Ísafjörður Airport, the latter of which also had its parking area asphalted at long last.

Bakkaflugvöllur Airport and Reykhólar Airport, moreover, were repaved. The precision approach path indicator (PAPI) was renewed at Blönduós Airport and is a vital piece of equipment for ambulance flights. Work on the renewal of runway lights at Hornafjörður Airport began in the autumn but was then postponed to the spring due to weather conditions.

At Reykjavík Airport, the aprons at Básar were paved. This project was vital, as this part of the airport is first and foremost used for smaller jets and private aircraft. The fencing around the area controlled by the Coast Guard Patrol was renewed. Over 1,500 m of barbed wire was laid on top of the airport fence to ensure flight protection.

At Akureyri Airport, work on the installation of ILS equipment was completed and the ILS equipment deployed at the end of January 2020. The new approach improved access to Akureyri considerably. The approach is important to both the aircraft that regularly fly to the airport according to schedules to and from the airport as well as being extremely important for new operators arriving in Akureyri. Norlandair, for example, has voiced its approval of the approach, and it proved its worth when Transavia came to Akureyri Airport at the beginning of the year in what can only be termed as demanding circumstances.

Work on a new apron at Akureyri Airport continued in 2020 with the completion of the design of the lower foundations. Work was carried out on a new fuel depot area at Akureyri Airport in the latter part of 2020 when fuel tanks were moved to a new location at the planned new apron. In addition, the use of the septic tank for the air terminal in Akureyri was discontinued and a new wastewater treatment plant put into use. The wastewater treatment plant is an environmentally friendly solution, and its use is a huge step in the environmental issues of Akureyri Airport.

The design of a new addition to the Akureyri Airport terminal began in 2020. The addition is intended for international flights and will help the airport to establish itself as an international airport.

At Egilsstaðir Airport, the office facilities were renewed and the roof repaired.

On the basis of the economic efforts expended by the authorities, an agreement was reached with Flugmálafélag Íslands (the Icelandic Aeronautical Association of Iceland) for the maintenance of smaller landing fields. The Association embarked on improvements to landing fields such as that at Hella Airport and will continue to undertake such projects during 2021.

Isavia ans

Projects relating to the renewal of flight data systems of the Air Traffic Control Centre were continued. The system, named Polaris, will be designed by Tern Systems, a subsidiary of Isavia ANS, in co-operation with Isavia ANS.

PLANNING AND DEVELOPMENT

The development plans for Keflavík Airport are updated on a yearly basis, and its Master Plan is updated approximately every five years. The airport’s Masterplan and Development Plan communicate our plans for expansion to the local community. The economic impact of the airport on the nearby community and the Icelandic economy in general is considerable, as is the importance of the airport for Iceland’s main industry, tourism. Stakeholders have great expectations for successful development, and the Development Plan deals in particular with the cost estimates and time schedules for the work and analyses passenger patterns and air traffic in the context of building plans.

The Development Plan for Keflavík Airport was updated in 2019, and the Masterplan was presented in 2015. Both the Development Plan and the Masterplan should have been updated in 2020 but were postponed due to uncertainties in the flight services sector. We anticipate that new updates of both will be advertised in 2021.

The airport’s Masterplan and Development Plan are optional – they are not acknowledged in Icelandic legislation and planning environment, but they are used abroad. The aim is to communicate a future vision for the airport, setting out phasing and flexible plans that take into account passenger and traffic forecasts and communicate information on building plans to stakeholders. Planning of this type is an approach that Isavia has selected to set forth its building and development plans. The airport has gone further in its assessment of the environmental impact and has demonstrated that the overall impact of its Development Plan goes further than the requirements laid down in environmental impact assessment legislation.

The airport’s Masterplan and Development Plan have been approved by Isavia’s Board of Directors after having been considered by the Executive Board. The Masterplan is a future vision for the airport as regards land use and communications with the community connected to the airport. The Development Plan is issued once or twice a year and covers the next seven years. The Masterplan covers the next 25 years and is issued every 3–5 years. The updated development plan shows new areas of developments and the changes that have been made to plans over the last five years – since the last version in 2015.

The Development Plan is presented to stakeholders and at consultation meetings, and comments are invited. The websites of the development plan and construction plans are used to communicate information and invite comments from stakeholders. Actions are prioritised in terms of importance on the basis of a needs assessment and requirements based on user expectations and international regulations and standards. This approach of formulating a Masterplan and Development Plan is systematic, and Isavia has acquired certain experience in this regard. Both the Development Plan and the Masterplan have been issued twice.

Among the tasks Mace undertook in 2020 was to define consultation processes with stakeholders as regards construction at Keflavík Airport and to establish ambitious development plans for the airport as regards its future legacy

The Development Plan is sent in its entirety to the Icelandic National Planning Agency, where the environmental impact of the planned building work is assessed. Environmental impact assessments are usually linked to individual projects, but the Development Plan enables the overall impact of the planned works to be assessed before work beginning over the coming years, taking into account the increased capacity and impact on environmental and social factors.

The environmental impact assessment of the Development Plan shows the effect that the expansion plans and mitigations measures for the airport will have. Several projects proposed in the Development Plan and Masterplan promote reducing the environmental impact of the airport, such as a de-icing apron and shortening taxiing distances for aircraft. The design for the airport expansion takes account of the BREEAM environmental certification system.

Keflavík Airport causes an increased indirect environmental impact, but greater capacity will create jobs and bring economic benefits for the immediate community. In this connection, we shall have to expect some undesirable consequences of increased air traffic, such as noise, more cars on Iceland’s roads, carbon dioxide emissions, etc. Isavia monitors noise and air pollution near the airport and officially publishes the findings. Isavia also favours environmentally friendly solutions for expanding the airport and terminal.

It is difficult to assess the indirect impact of the operations at Keflavík Airport, but a report commissioned by Isavia on the significance of airport development for the future clearly shows the expected direct economic impact.

The British construction and consultancy firm Mace has, as of the beginning of 2020, worked as Isavia’s partner in the development of Keflavík Airport. The company will be responsible for project management and supervision as regards upcoming construction. It will also be invaluable for providing its expertise in such large projects. Among the tasks Mace undertook in 2020 was to define consultation processes with stakeholders as regards construction at Keflavík Airport and to establish ambitious development plans for the airport as regards its future legacy and the sustainability of the work. Particular attention was paid to the effects on neighbouring communities, employment opportunities and environmental issues.

When formulating its Masterplan, Isavia has endeavoured to foster good relations with the immediate community. Consultation meetings are held when devising plans, and plans are regularly presented to stakeholders and the media.

Isavia has set up a consultation forum in conjunction with the immediate community – under the aegis of the UN Global Goals – and has good relations with the main stakeholders. The collaborative project, entitled Suðurnesjavettvangur (Suðurnes Forum), involves the four municipalities in the Suðurnes region – Grindavíkurbær, Reykjanesbær, Suðurnesjabær and Vogar – together with Isavia, Kadeco and the Association of Suðurnes Municipalities. Numerous meetings were held by the representatives appointed by these groups in 2020. Four groups were appointed to address specific issues, and all submitted their proposals for remedies that accorded with the Global Goals. A discussion meeting was subsequently held in November where 140 members participated in lively discussions on the four issues at hand. An announcement was made at the end of the meeting that all those involved in the Suðurnes Forum would sign a declaration pledging to speed up the adoption of the circular economy in the area.

Our people

- We will be ready

Brynjar Vatnsdal

Brynjar Vatnsdal

Manager of development

How will the capital increase be used for construction?
The increase in share capital allows us to get started with projects outlined in Keflavík airport‘s development plan and they all aim towards making the airport more prepared to accommodate a similar number of passengers as prior to the pandemic.

What is the main emphasis of the construction?
We are so lucky to have a detailed development plan where the priority order of projects and their purpose is well defined. It has helped us a lot. But now we have especially been looking towards projects that either are already in design process or that have a short design time, keeping in mind that we could begin construction as early as this year. There are for example projects regarding the runways that are difficult to implement in a fully operating airport. The current situation due to the Covid-19 pandemic, that is, less traffic around the airport, makes it easier to initiate such constructions. We have also been looking towards those areas of the airport that have been very crowded during peak hours. We will also be more prepared to accommodate passengers when flights start up again

Then the crowded areas won‘t be in the same spaces as before when the traffic is at its peak during the day.


Can you comment on the outlook for the next five years?
What is especially important regarding the increase in share capital is that it provides us with opportunities to keep going with the design of larger airport projects. First it is worth mentioning the connection building between the north- and south buildings, that will meet added requirements of border control, but also completely change the passenger‘s experience, especially the shopping and dining areas of the airport.