Quote:
Originally Posted by Hourglass
But if this isn't really the case with YYC, and given the limited market size (as you point out), then I can't help but think the new international terminal seems like overkill: 2 million square feet of terminal space (doubling the size of the airport) and the addition of 24 international gates. I mean, I believe YVR only has around 34 international gates at present.
Maybe they're simply future proofing against long-term growth, but one can't help but wonder if YYC is also angling to try to grab some international transfer traffic?
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In evaluating whether the new YYC terminal is overkill there is a cautionary tale for YVR as they expand into the details of central option expansion.
Arguably YYC gate utilization for the whole terminal is very impressive. I would compare YYC current gate utilization to that of YVR in the mid 90s. At YYC this summer there are no spare gates and some flights are negatively impacted by the gate capacity issues. For example; WestJet flagship flight YYC-LGW routinely has to arrive at the B concourse because Hainan, KLM, and Air Transat, and Condor are using the widebody gates over on A concourse. WS must then tow the 763 over to A concourse where it takes up to 737 size gates at the hammerhead. All summer long there have been various ground holds due to the arrival gate being occupied by the previous flight.
Looking at the current gate plan for YYC there are 18 international capable gates, however all but four gates have the capability for swing gate operations. Gates 11/12/13/14 swing between domestic and international. Gates 21/22/23/24 swing between domestic and transborder. Gates 31/33/35/37/39/40 swing between domestic/transborder/international. The high level of flexibility is utilized extensively by WS and to a lesser extent AC.
The new YYC international terminal obliterates this flexibility for the airlines as the only swing gate capability is between International and Transborder (the least likely combination). Consequently, YYC airport is going from 18 international/transborder gates to 24.
I would argue the new YYC international gate capacity should be set at 20-22 gates. In order to get to 24 gates, there has to be no widebody aircraft and significant use of small regional jet aircraft (even the new C-Series and E-Jets will have too big of a wing span for full capacity utilization). This situation is similar to EWR Terminal C, the international concourse has 18 gates but an effective capacity of 12-14 aircraft.
The big reason for YYC new terminal is to provide increased capacity on central processor functions like Checkin, Security, USCBP, retail, CBSA, Bag claim. I have gone through the current terminal about 4 times this summer, and everywhere passengers are tripping over each other and there is insufficient queue space. Just this last week LHR, FRA, and LGW arrived at nearly the same time only to have the last passengers off LGW queue for CBSA primary inspection line on the third floor corridor well over 50 meters to the CBSA hall. This level of congestion is usually reserved for SEA South terminal inhabited by DL.
Bringing this all back to YVR and the Airport's decision to expand using the central option; there are a number of lessons learned for YVR.
(1) Back over 10 years ago, YYC's initial "International Facilities Project" was an extension of the B concourse (similar to the extension of JFK Terminal 4 Concourse A whereby 20 gates were added onto the 10 gate concourse). Once YYC Airport identified the central processor functions as a capacity limiter, the first plan had to be scrapped and the current plan developed from scratch. Hopefully YVR does not have the same situation with their central expansion project.
(2) Similar to YYC (although not as bad) the central processor functions do face capacity constraints at peak times. Further, YVR is all ready at the forefront of automation and processing enhancements through APC machines at primary inspection, Nexus kiosks, Known Traveller lanes at security. Is there another great efficiency enhancement to alleviate the peak period capacity constraints at YVR International Terminal? IF the answer is no, then how will adding new gates not result in additional overcapacity situations?
(3) The YYC International terminal is the first Canadian terminal designed for high density configured aircraft. Back when YVR International Terminal was designed the 763 had 210 seats and the 747 had about 400-450. Airlines routinely filled their 744s to 60-70% capacity. Today the expectation is 270 seat 763 and triple the number of 77W with similar capacity to yesterday's 744. With high density seating becoming the norm, this will put YVR's central processor operations under further strain.
(4) One operational advantage of YVR is moderate success operating a second Asian departure bank in the night. This will further increase the YVR terminal efficiency. YYC has been unable to get a second profitable departure bank in any international market.