Making the case for Heathrow's spending strategy
Amey's strength lies in its understanding of the whole asset management process and ability to offer a seamless, integrated service provisions to its customers. Our capabilities within aviation and asset management, delivered by one of the most experienced and technically capable teams in the market, means we are trusted by major airports, like Heathrow, to support the delivery and management of their programmes and assets.
As a regulated airport, Heathrow must regularly present its plans for capital and operational expenditure to both the Civil Aviation Authority and the airlines that fly in and out of the airport. This supports the case for the charges it makes to airlines for using the airport.
Therefore it is essential that the airport has a detailed understanding of its capital investment and maintenance requirements over an extended time frame. This enables forward planning and improves the understanding of the relationship between cost risk and performance when making decisions.
Amey's strategic consulting team created a model that allows Heathrow to forecast its long-term capital and operational costs. This helped it present its case to the regulator which, in the most recent negotiations, required a reduction in maintenance costs and improvement in performance.
Our team has undertaken analysis and developed a range of decision support tools to assist the airport managers to make both tactical and strategic decisions relating their investment decisions to customer behaviour.
The big picture - forward financial planning
Amey was commissioned to provide an integrated financial plan which profiles the forward expenditure on the whole of Heathrow's £10 billion asset base over a period of 30 years. The asset base covers all of the airport facilities, including runways, terminals, towers, landside facilities, car parks, utilities, passenger transport systems, access tunnels and baggage and security systems.
The financial model shows, at a high level, the overall strategic cost forecast for the entire asset base. As the model is constructed from an asset system by system analysis of the predicted performance and costs, maintenance managers are able to drill down into the detail of operational and capital expenditure at an asset level to test their assumptions. The model also reveals the risks and consequences of a particular investment plan and allows alternative scenarios to be tested, such as postponing capital investment.
A targeted approach - decision support tools
One example of our use of decision support tools is the analysis of customer feedback surveys to determine what aspect of the assets and their maintenance concerns passengers. This allows managers to focus investment more effectively. By looking at which location feedback was collected from, we were able to determine which parts of the passenger journey caused negative feedback and what response was required, for example, more attention from cleaners.
We also created tools that allow managers to compare forecast with actual energy consumption on a monthly basis. Using the information collected for the financial model we a created a master planning tool to allow optimisation of major long-term investment plans by linking asset investment to the airport’s overall financial model.
A unique skillset for successful delivery
The ability to understand and model asset investment decisions lies at the heart of good asset management. We are working with the airport as it moves along the pathway to developing an integrated asset management system that will meet its long-term needs and eventually achieve ISO:55000 accreditation.
Our specialist knowledge of airport infrastructure enables us to offer design services ranging from strategic planning, modelling and data management through to airfield improvements and multi-million pound runway development projects. Our team offers a combination of unique skills that delivers an integrated, end-to-end service providing innovative, safe and improved solutions tailored to the project in hand.
Our integral role in Heathrow's successful cost planning for its £10 billion asset portfolio allowed it to demonstrate a robust process for its investment planning, and instilled confidence in the CAA and the airlines of fair prices.
What our customers say
“The Amey team has helped Heathrow Airport Limited to move towards data-driven decision making, which we believe is part of taking our business to the next stage in strategic asset management.”
Steve Chambers, Director Engineering Operations and Baggage, Heathrow Airport Limited