FOREIGN TRADE UNIVERSITY

SCHOOL OF ECONOMICS & INTERNATIONAL BUSINESS

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GROUP REPORT
PRODUCTION AND OPERATION MANAGEMENT

PASSENGER GROUND OPERATIONS AT NOI BAI

INTERNATIONAL AIRPORT OF VIETNAM:
RECOMMENDATIONS FROM THE CASE STUDY OF
SINGAPORE CHANGI AIRPORT

Group 7
Nguyen Thi Thu Hien 1915530514
Cao Pham Ha My 1915530711
Nguyen Le Hai Ngoc 1915530527
Nguyen Hoang Uyen 1915530541
Do Huu Phuc 1915530531
Be Minh Tuan 1915530808

Course: FIATA3(GD2-HK2-2122).1
Instructor: Dr. Nguyen Minh Phuc

Hanoi, June 2022

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 TABLE OF CONTENTS
INTRODUCTION.......................................................................................................5
CHAPTER 1: INTRODUCTION TO NOI BAI INTERNATIONAL AIRPORT. 6
1.1. Overview of Noi Bai International Airport.........................................................6
1.1.1. General information...................................................................................6
1.1.2. History of formation and development.....................................................7
1.1.3. Core values and Operational objectives....................................................7
1.1.5. General vision, goals and mission..............................................................8
1.1.6. Core business activities...............................................................................8
1.1.7. Infrastructure.............................................................................................9
1.1.8. Organizational structure...........................................................................9
1.2. Situation of Vietnam aviation industry in the pandemic...................................10
CHAPTER 2: CURRENT SITUATION OF PASSENGER GROUND
OPERATIONS AT NOI BAI INTERNATIONAL AIRPORT.............................12
2.1. Theoretical basis...............................................................................................12
2.1.1. Airport ground operations.......................................................................12
2.1.2. Layout........................................................................................................13
2.1.3. Noi Bai International Airport’s layout and process design...................15
2.2. Ground operations at Noi Bai International Airport..........................................21
2.2.1. Terminal operations.................................................................................21
2.2.2. Airside operations.....................................................................................24
2.2.3. Billing and invoicing.................................................................................26
2.2.4. Information management........................................................................26
CHAPTER 3: RECOMMENDATIONS FOR IMPROVING OPERATIONS AT
NOI BAI INTERNATIONAL AIRPORT...............................................................28
3.1. Basis for the proposition - SWOT evaluation...................................................28
3.2. Recommendations for improvement of operations activities at Noi Bai
International Airport................................................................................................32
3.2.1. Layout design recommendation...............................................................32
3.2.2. Recommendations for 4.0 technology application..................................33
CONCLUSION.......................................................................................................... 37
REFERENCES..........................................................................................................38

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 LIST OF FIGURES
Figure 1: Organizational structure of Noi Bai International Airport...........................18
Figure 2: 2nd-floor Terminal 1 layout.........................................................................17
Figure 3: 2rd floor Terminal 2 layout..........................................................................18
Figure 4: 3rd floor Terminal 2 layout ………………………………………………..20

LIST OF TABLE
Table 1: Number of domestic passengers transported by air and the number of
international visitors to Vietnam by air.......................................................................11

CONTRIBUTION OF MEMBERS
Name Task
Nguyen Thi Outline
Thu Hien Chapter 2:
2.1.1. Airport ground operations

2.2.1. Terminal operations

Chapter 3:

SWOT analysis: Strengths, opportunities

3.2. Recommendations for improvement of operations activities

at Noi Bai International Airport

Do Huu Phuc Chapter 2:

2.1.2. Layout 

2.2.5. Noi Bai International Airport’s layout and process design

(Terminal 2)

Chapter 3:

3.2. Recommendations for improvement of operations activities

at Noi Bai International Airport

Cao Pham Ha Chapter 1:

My 1.1.7. Infrastructure

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 1.1.8.  Organizational structure and management

1.2. Vietnam Aviation Industry Prospects from the year of 2022 

Chapter 2:

2.2.2. Airside operations

Chapter 3: SWOT analysis: threats

Nguyen Le Hai Chapter 1:

Ngoc
1.1.3. Core values and Operational objectives

1.2. Situation of Vietnam aviation industry in the pandemic

Chapter 2: 

2.2.5. Noi Bai International Airport’s layout and process design

(Terminal 1)

Nguyen Hoang Introduction

Uyen Chapter 1:
1.1.1. General information

1.1.2. History of formation and development

Chapter 2:

2.2.4. Information management 

Chapter 3: SWOT analysis:Weaknesses

Be Minh Tuan Chapter 1:

1.1.5. General vision, goals and mission

1.1.6. Core business activities

Chapter 2: 

2.2.3. Billing and invoicing

Conclusion

4
 INTRODUCTION

  According to the International Air Transport Association (IATA), the air

transport industry contributes an estimated $12.5 billion to Vietnam's GDP. Revenue
from this sector accounted for a total of 5.2% of the country's GDP. With a large
contribution to the economy, aviation is one of the most potential industry for the
development of Vietnam.

Noi Bai International Airport, located in the capital city of Vietnam, is

considered as one of the important airports for its economic, political and
geographical role to the development and security of the country. Therefore, the
authors have chosen the topic of "Passenger ground operations at Noi Bai
International Airport of Vietnam: recommendations from the case study of Singapore
Changi Airport" to better understand the airport ground operations as well as the
layout and process design at Noi Bai International Airport.

On the basis of ground operations, layout and process design analysis and
assessment, the authors proposed recommendations for Noi Bai Airport to overcome
weaknesses, minimize threats and take advantage of opportunities to develop the
airport as a one of the top hub in the region and the world. By reviewing the case
study from Singapore Changi Airport - the leading airport in the world with many
effective initiatives and strategies, the authors proposed recommendations to improve
the layout and process design at Terminal 2 of Noi Bai Airport and technology
implementation strategy for the planned establishment of Terminal 3 for the
sustainable development of the airport.

Besides Introduction and Conclusion, the report consists of three main chapters:

 Chapter 1: Introduction to Noi Bai International Airport

 Chapter 2: Current situation of passenger ground operations at Noi Bai
International Airport
 Chapter 3: Recommendations for improving operations at Noi Bai
International Airport

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 CHAPTER 1: INTRODUCTION TO NOI BAI INTERNATIONAL
AIRPORT

1.1. Overview of Noi Bai International Airport

1.1.1. General information

English name: Noi Bai International Airport (NIA)

Address: Noi Bai International Airport, Phu Minh Commune, Soc Son District, Ha Noi Capital

Airport code:
Tel : (+84) 024.3886.5047
+ IATA code: HAN
Hotline: 1900.636.535
+ ICAO code: VVNB

SITA: QQXH Aerodrome Ref. Code: 4E

Passenger Terminals:

+ Domestic Terminal (T1): 115.000m2, Capacity of 15-million passengers per year.

+ International Terminal (T2): 139.216m2, Capacity of 10-million passengers per year

Noi Bai International Airport (IATA: HAN, ICAO: VVNB; Vietnamese: Sân
bay quốc tế Nội Bài) is one of the largest airports in Vietnam in terms of overall
capacity. After Tan Son Nhat International Airport, it is also the busiest airport for
passenger traffic and the largest airport in the nation for cargo transportation. There
are two passenger terminals at the airport. Domestic flights are handled by Terminal 1,
and all international flights to and from Hanoi are handled by Terminal 2. Currently,
the airport serves as the hub for 32 operating airlines, including the national carrier
Vietnam Airlines, other domestic airlines such as Bamboo Airways, Pacific Airlines,
and Vietjet Air and international airlines, serving around 15 provinces in Vietnam and
34 other cities over the globe (Airports Corporation of Vietnam). Serving as a
transportation hub with the significant role of economic, geographical, political
position and the important transit point for multiple international routes connecting
Europe, South Asia to Southeast Asia, Northeast Asia and the Asia Pacific region
(Airports Corporation of Vietnam), the role of NIA is undeniable, making it an edge to
further develop as a desired hub of the region and even the world.

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1.1.2. History of formation and development

NIA was established on February 28, 1977, under Decision No. 239 / QD -TC,
February 28, 1977 of the Civil Aviation Administration of Vietnam (CAAV) (Noi bai
International Airport Overview). Situated about 28 miles (45km) north of Hanoi, the
airport was first built for military purpose, which saw service during the Vietnam war
as an airbase for the Vietnamese air force. With the war over and the country reunified
in 1975, the airport was refurbished and became an international airport for
commercial traffic (still retaining some function as a military airbase). In 1978, the
first international flight was welcomed at NIA. In 1995, the Prime Minister officially
decided to build the first international terminal at NIA. At the same year, NIA has
received the First Class Victory Medal and Third - Class Labor Medal; and Second-
class Labor Medal in 1999. In 2001, Terminal 1 at NIA began operation in October
2001 with a total ground area of 90,000m². In 2005, the airport was honored to receive
the First-class Labor Medal. Since 2012, NIA has become a member of the Airports
Corporation of Vietnam (ACV). The international Terminal 2 at NIA went into full
operation at the end of 2014, increasing the airport’s capacity by 10 million
passengers a year. Over nearly half of a century, NIA has increasingly grown with
modern facilities and technology, positively contributing to the construction and
development of Vietnam aviation as well as the overall development of the country.

1.1.3. Core values and Operational objectives

Core value of Noi Bai International Airport:

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 The goal of NIA is to become one of the major and important airports in
Southeast Asia, contributing to the sustainable development of Vietnam's aviation
industry, having the ability to compete and joining the economy worldwide, and also
promoting economic development for the country. Constantly investing and
developing, especially in human resources and improving equipment and machinery
to become more and more innovative. At the same time, ensure absolute safety and
security, improve service quality, build a cultural space attached with Vietnamese
culture, which can make a deep impression to any passenger arriving at NIA.

1.1.5. General vision, goals and mission

With the vision to strengthen NIA as the leading international aviation hub in
Southeast Asia and the key engine for the economic growth of Vietnam; the goals to
have the ability to compete and joining the economy worldwide, promoting economic
development for the country, at the same time ensure absolute safety and security,
improve service quality, build a cultural space attached with Vietnamese values, the
airport authority has set mission to accomplish these goals and vision. Mission of NIA
is in accordance with the mission of the Airports Corporation of Vietnam (ACV),
aiming at ensuring aviation safety and security associated with national defense;
improve the corporate governance capability in business performance, capital increase
and resources for investments; to ensure benefits of the Government, shareholders and
all stakeholders as well as value-adding business on the market; apply advanced
science and technology in the aviation industry roadmap to development together with
environmental protection and climate change response; develop professional
employees, which approaches advanced qualifications and capabilities from other
prominent airport operators in the region and in the world, accordingly enhance
productivity and efficiency in business performances; and maintain a healthy working
environment and improve the employee’s daily life.

1.1.6. Core business activities

Revenue of NIA comes from aeronautical and non-aeronautical activities. In

which, aeronautical activities account for major parts of the revenue stream at NIA,

8
related to services for airlines, passenger services, and cargo services. Services for
airlines at NIA covers security check, aeronautical information services,
meteorological services, rescue and firefighting, airport emergency services, and
follow-me car.

Besides, non-aeronautical activities include commercial activities such as: duty free
shop, retail, parking, advertising, etc. These activities not only contribute to the
revenue but also increase overall customer satisfaction.

1.1.7. Infrastructure

NIA is a civilian airport that also handles military planes. The infrastructure of
the airport is as follows:

The airport has both an older 3,200m paved runway (CAT I - 11L/29R) and a modern 3,800-
meter paved runway (CAT II - 11R/29L). Because the gap between the two runways is barely
Runway
250 meters, which do not manage landing and take-off simultaneously, the airport has now
limited the maximum passenger capacity to comply with ICAO safety criteria.

On the 11L/29R RWY (north) and 11R/29L (south) taxiways, there are two taxiway systems,
Taxiway
which are respectively utilized for military and civil purposes.

There are presently 47 airplane parking stands on the T1 and T2 aprons. In addition to the
aircraft parking stands indicated above, Noi Bai International Airport has an isolation apron in
Apron the north (shared with a military sector) and a VAECO apron for aircraft repair and
maintenance, both of which are used in emergency situations (aircrafts with information on
explosive, unlawful interference).

Terminal 1, which opened in 2001, can handle 9 million passengers per year and is now only
Passenger utilized for domestic flights since the opening of Terminal 2 in January 2015. Terminal 2, with
Terminals a capacity of 10 million passengers per year, has a linear design of four floors (excluding the
basement) based on wing span which in very close to nature.

Cargo Cargo Terminal at Noi Bai International Airport is 44,000 square meters in size and can handle
Terminal 203,000 tons of cargo per year.

Executive Executive building VIP is used to accommodate high-ranking delegations from Vietnam and
building other nations and also serves as a reception point for organizations and multinational
VIP A corporations.

1.1.8. Organizational structure

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 Figure 1: Organizational structure of Noi Bai International Airport

Source: Self-synthesized by authors

The Airport Authority shall perform the duties of the Aviation Authority at the
airport or aerodrome within the scope of its management according to regulations;
Issue security control cards and permits with long-term and short-term validity at
airports and aerodromes under their management according to regulations; Receive
and carry out the task of securing special aircraft flights in accordance with law;
Propagating, disseminating and inspecting and supervising the implementation of the
law on aviation at airports and aerodromes; Develop and submit to the Director of
Civil Aviation Authority of Vietnam for approval the financial plan and organize the
implementation of the approved plans.

1.2. Situation of Vietnam aviation industry in the pandemic

In 2020, Vietnam's tourism aviation suffered extremely heavy losses under the
impact of the Covid-19 epidemic. Lockdowns and other restricted policies have forced
to close all international flights and many domestic routes. In the same year, the total
number of visitors served by accommodation establishments decreased by 44%
compared to 2019, and international visitors to Vietnam decreased by 78.7% (CSI
Securities, 2021). After a slight recovery in domestic flights in late 2020 – early 2021,
between mid-April to mid-May 2021, Vietnam continued to record another serious

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outbreak in the two economic centers - Hanoi and Ho Chi Minh cities, disrupting the
operation of passenger air transport. The number of international passengers in 2021
reached just over 105 thousand passengers, while domestic passengers have decreased
less with 15.8 million passengers (BaoViet Securities, 2022). However, by the end of
2021 to the beginning of 2022, after the pandemic is partially controlled, combined
with the increase in vaccination cover rate, the aviation market of Vietnam recorded
an extremely strong recovery rate. In the first 6 months of 2022, international arrivals
through airports increased by a staggering 9 times over the same period while
domestic arrivals increased by more than 50% (VnEconomy, 2022). “According to an
analysis by Airbus in collaboration with the International Air Transport Association
(IATA) based on the statistical results of flights from Flightradar24, Vietnam's
domestic aviation market has recovered fastest in the world, with an increasing rate of
123% compared to the period in 2019” (VnEconomy, 2022).
Table 1: Number of domestic passengers transported by air and the
number of international visitors to Vietnam by air

Source: General Statistics Office

Statistics from the two tables see a remarkable growth in 2022. This shows a
positive prospect of Vietnam's aviation industry. The domestic market in Vietnam is
anticipated to recover at 96%, according to the International Air Transport Association
(IATA). However, challenges remain disguised since the Covid-19 and other threats
remains convoluted and unmanageable. In order to take advantage of the chance to
recover and boost domestic airlines' competitiveness, it is crucial in addition to
restoring business operations to raise the financial "health" and competitiveness of
local airlines.

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CHAPTER 2: CURRENT SITUATION OF PASSENGER GROUND
OPERATIONS AT NOI BAI INTERNATIONAL AIRPORT

2.1. Theoretical basis

2.1.1. Airport ground operations

An airport is the physical site connecting the three major components of the air
transport system: the airport (i.e. commercial and operational concessionaires, tenants,
partners, airways control system); the airlines; and the users (Ashford, Coutu and
Beasley, 2013). Therefore, airports is often referred to as a system that takes into
consideration the interactions among the above mentioned components. Hence, the
operations at the airport must be well-managed in order to ensure a smooth run of the
whole system, producing safe and seamless transportation of goods and passengers.

Ground handling is an essential part of an airport operation, and can be divided

into terminal and airside operations (Ashford, Coutu and Beasley, 2013)), plus the
operations of billing/invoicing and information management (Aeroclass). Terminal
operations are more prone to customer-oriented approach, linked to the movement of
passengers, baggage, often carried out by a mix of airport authority, the airlines, and
other special agencies depending on the airport size and the operational philosophy of
the airport authority. It requires a balance between customer's satisfaction and security
matters. Airside describes the movement of the airplane on the airport's surface.
Operations at the airside are largely invisible to passengers, however, they remain an
integral and complex part of the airport operation to ensure a quick and safe run of an
aircraft to land, take off, and move around. Billing/invoicing and information often
take place inside the terminal area; however, the authors want to separate these
activities from terminal operations. Billing and invoicing are not visible to the public,
but they deal with the revenue stream of the airport, allowing the airport and airlines
to better allocate resources to increase efficiency and effectiveness of daily operations.
Meanwhile, information management requires close connection with the airlines to
promptly inform passengers about the flight status. In general, malfunctioning ground
operations could lead to a domino effect on all other activities at the airport, reducing

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the overall efficiency of the airport and leading to decrease in profit to all
stakeholders.

2.1.2. Layout

2.1.2.1. Definition

A layout is the physical configuration of workstations and equipment in the

entire conversion process. Layout is one of the key decisions that determines the long-
run efficiency of operations, it plays an important role in establishing an
organization’s competitive priorities thereby can help an organization achieve a
strategy that supports differentiation, low cost, or response (Heizer and Render, 2004).

2.1.2.2. Types of layout

According to Heizer and Render (2004), there are 7 types of layout: (1) Office
layout; (2) Retail layout; (3) Warehouse layout; (4) Fixed-position layout; (5) Process-
oriented layout; (6) Product-oriented layout; and (y) Work-cell layout. However,
under the scope of this research, we will focus on 2 types of layouts that are related to
the operation at Noi Bai Airport Terminal, i.e. Process-oriented and Product-oriented.

A process layout is a layout that arranges resources based on their similar functions.
This type of layout deals with low-volume, high-variety, intermittent production and is
most efficient when making products with different requirements or when handling
customers, patients, or clients with different needs (Heizer and Render, 2004). Due to its
Process-oriented
primary objective being to serve unique flows of products, the major challenge for this
layout
type of layout is to organize resources in a way that minimizes waste of movement and
improves efficiency. If the process layout is designed improperly, products with unique
needs will have to travel long distances among different departments, often on a daily
basis, which generates no value for the production.

Product-oriented A product-oriented layout is a layout that arranges resources in a specific production

layout sequence. This type of layout seeks the best personnel and machine utilization in
repetitive or continuous production (Heizer and Render, 2004). There are two types of
product-oriented layouts: fabrication and assembly lines however, both are repetitive
processes (Heizer and Render, 2004). Due to its main objective is to serve repetitive and
continuous production, the major challenge for this type of layout is to organize
resources in a way to achieve a balanced line, which means the time spent at one step of
the production must equal the time spent at the next step. Any redundant or short in time

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 at any steps will disrupt the continuous process.

2.1.2.3. Types of airport terminal layout

There is a variety of terminal layouts, each of them may have a unique design,
depending on financial investment, infrastructure, or the airport objectives, but most
fit within the following configurations:

Standard Linear & Curvilinear

Standard Linear and Curvilinear are the layout of terminals that allow multiple
planes to board passengers simultaneously and are known as one of the most typical
terminal designs. Examples: Noi Bai Terminal 2, Detroit Metropolitan, etc.

Advantages Disadvantages

• Clear orientation • Duplication of terminal facilities/amenities

• Longer minimum connecting time
• Simple construction
• Longer walking distances for transfer pax
• Adequate kerb length
• Special logistics for handling of transfer bags
• Lower baggage systems costs
• Less flexibility in terminal and apron for future changes in
operations

Concourse & Pier (Finger)

Pier layout and Concourse layout are expansions of Standard Linear design that
is linked by underground passages and internal transit systems. Examples: Atlanta

14
International Airport, O’Hare International Airport Chicago, Chitose Airport Japan,
etc.

Satellite: The satellite is normally leveraged to cope

with the lack of space in terminal design by allowing
the arrangement of several planes on a smaller surface.
The satellite is often connected to the rest of the airport
by an underground passage or a corridor. Examples:
Orlando International airport, Tampa International
airport, etc.

Shuttles: This type of layout enables the airport to

reduce the size of the terminal and maximize the
number of planes that can be serviced. Shuttles layout is
often applied at major airport facilities for regular jet
bridges service large planes, while smaller domestic
planes are parked on a pad and serviced by buses.
Examples: Gatwick Airport, Noi Bai Airport terminal 1
lobby E, etc.

2.1.3. Noi Bai International Airport’s layout and process design

2.1.3.1. Noi Bai International Airport’s layout

NIA is composed of 2 parts: domestic passenger terminal 1 (T1) and

international passenger terminal 2 (T2).

The layout of NIA at both terminals is a combination of the product-oriented

layout and process-oriented layout. At the compulsory procedural area (e.g. check-in,
security screening, or presentation of boarding tickets, etc.), a product-oriented layout
is applied to ensure facilities and people in the right order and satisfied conditions that
required to exit or enter the country. 

On the other hand, most services such as restaurants, cafes, public lounges,
duty-free shops, and sleeping pods, etc. are concentrated in specific areas; therefore,
these services are arranged according to the process-oriented layout, where customers

15
can choose their own movement and the service they want to enjoy. These value-
added services bring in a significant portion of the airport's revenue, and if customers
spend more of their time at this stage, it will bring more profits to the airport. As a
result, optimizing the time at the compulsory procedural stages is extremely important
to improve customer service and increase revenue for the airport.

a. Passenger Terminal 1’s (T1) layout:

The domestic passenger terminal has an initial design consisting of four areas:
Hall A, Hall B, Hall C, and Hall D, with a total area of 90,000m2. At the end of 2013,
Noi Bai airport officially opened hall E of Terminal T1. It is connected to hall A
through an extended enclosed corridor, bringing the total area to 115,000m2.

The terminal’s first

design, which only included
Hall A, B, C, and D, is
roughly similar to the
Standard Curvilinear layout,
which consists of a single
passenger processing area.
This layout is also comparably related to Passenger Terminal 2’s layout, except it uses
a curved design of the building, which helps in saving space. As for Hall E, it can be
considered a Shuttles layout.

Passenger Terminal 1 consists of 4 floors: The first floor is for domestic

arrivals, the 2nd floor is for domestic departing customers, the 3rd floor is the
administrative area, concentrating the airport operations management departments,
and the 4th floor is the restaurant area. 

On the 1st and 2nd floors in front of the station, 10 sets of automatic doors are
installed on each floor to serve the convenient movement of guests in and out of the
station, as well as create rooms to cut off the wind, to ensure heat preservation for
passengers. The check-in counter system includes 98 check-in counters arranged in
halls A, B, E, and 4 check-in counters for passengers without checked baggage which
are interconnected to avoid overcrowding and congestion.  There are 4 counters for
16
lost luggage on the 1st floor, of which 2 counters are at lobby A and B, 2 counters are
at lobby E.  This is also where the check-in counters are located, which will help
customers find the counter for lost luggage more easily. There are 19 aircraft exits
serving domestic passengers. Outside the apron of Terminal T1 at NIA, there are 23
aircraft parking positions, of which 7 positions use passenger bridges.

b. Passenger Terminal 2’s layout (T2)

Passenger Terminal 2 consists of 4 floors with an area of about 139,000m2,

designed in a wing-shaped model and located adjacent to the Passenger Terminal 1. 

This terminal is designed with the Standard Linear layout which is a clear
orientation and simple construction type of layout. This type of layout can provide
adequate curbside length and allow lower baggage systems cost; however, it requires
duplication of terminal facilities and creates long walking distances for transfer
passengers requiring passenger conveyor belts. Also, there will be less flexibility in
future changes in operation for terminals and aprons such as changes in airlines and
aircraft design.

Each floor of the T2 serves distinct

purposes. The first floor is for international
arrivals, the 2nd floor is for transits and
international arrivals, the 3rd floor is for
international departure customers, and the
4th floor is business-class lounges and
commercial service areas, especially the
basement is used to transport goods into
isolation and technical trenches. The
terminal consists of the main building and
2 wings with specific dimensions: the
length of the entire station (996m), the
length of the main terminal part (180m),
the depth of the station (132m), and the width of the wings (24m). (Noi Bai Airport,
2022)

17
 There are 96 check-in counters divided into 4 check-in islands (each island has
24 counters), there are 10 check-in kiosks for self-check-in passengers, and 283
information display screens are equipped at all necessary locations such as public
halls, check-in counters, waiting rooms, baggage return belts, etc. This terminal has 17
doors for aircraft, of which 14 are for passenger bridges and 03 by bus for aircraft that
do not dock. These 14 bridges can serve 14 large aircraft or 28 small and medium-
sized aircraft to ensure transportation without causing congestion like the passenger
terminal T1.

2.1.3.2. Process design at Noi Bai International airport

a. Passenger process design at Passenger Terminal 1

For domestic arrivals: The 1st floor is the area to pick up passengers when the
plane lands at NIA and collect luggage after the flight. Specifically, domestic flights
landing at NIA will drop off passengers at Hall E or Hall A. After picking up the
luggage, customers follow the exit to catch the car out of the airport. 

For domestic departing customers:

Figure 2: 2nd-Terminal 1 layout

18
 Source: Noi Bai International Airport Map

Passengers can go directly to the 2nd floor by car at the car entrance, or take
the elevator from the 1st floor. This is the area for passengers to check-in, check-in
luggage and waits for the plane to take off. Customers check-in at counters to get
tickets and weigh hand luggage.  After that, move inside to do the procedures at the
security counter. Moreover, passengers can access the 2nd floor of Hall E through an
enclosed corridor extending from Hall A to get to other check-in counters. After doing
the procedures at Hall E, passengers can take the bus to move to the plane. 

For office department and other services: The office department works on
the 3rd floor. VIP customers have an airport lounge area here.  The 3rd floor of T1
also has services such as shopping, restaurant, cafe counters for visitors as well as
airport staff to choose from. The 4th floor is the restaurant area, also the floor where
restaurants are concentrated, serving the dining and resting needs of passengers.

b. Process design at Passenger Terminal 2

For international arrivals

Figure 3: 2nd-floor Terminal 2 layout

Source: Noi Bai International Airport Map

Due to the elongated wing design, the T2 terminal is equipped with passenger
conveyor belts to help customers after leaving the aircraft, easily move along the

19
corridor, at the end of the corridor is the area where customer flow is divided. Transit
passengers will make transit flights at the center of the 2nd floor. 

Arrival passengers will move to the Arrival Passport Control or the

Immigration area to conduct arrival procedures, then move down to the 1st floor to
pick up their luggage at the baggage claim and complete customs procedures. After
that, customers can enjoy other services at the airport such as restaurants, shopping at
duty-free shops, etc., then leave the airport by various means such as bus, taxi, etc.

In addition, the 2nd floor has a separate section that is not connected to the
procedural area. This section consists of many restaurants and is linked with the
airport's car park. The arrangement of the dining area separating from the customer's
flow of conducting immigration procedures and baggage collection contributes to
minimizing risks and difficulties for customers in carrying out procedures, creating a
fluent flow, and ensuring that the product-oriented layout is deployed efficiently.

For international departing customers: International departing customers need

to move to the 3rd floor of passenger terminal 2, where road and bridge systems have
been built so that cars can deliver customers directly to the terminal gate. As soon as
entering the 3rd floor, passengers can find the information and look for help at the
information counter, then passengers will carry out check-in procedures at island
counters from A to H corresponding to the airline they have selected. The check-in
procedure, besides doing it directly at the check-in counter, can also be done online or
at automated kiosks. Consequently, departure passengers will be checked baggage,
conduct exit procedures and carry out security and customs checks.

Upon completing the necessary procedures, international passengers can use

other convenient services at the airport such as restaurants, and shopping at the duty-
free shop at the center of the 3rd floor. Passengers can choose to wait for their flight in
the departure lounge which was designed in the shape of a wing, the lounge, therefore,
has a wide field of view to observe flights taking off and landing. In the lounge area,
other free airport services such as freshwater, charging stations, internet kiosk, kids
playground, and baby care room, etc. are scattered.

20
 Figure 4: 3rd floor Terminal 2 layout

Source: Noi Bai International Airport Map

Departing customers can also move to the 4th floor where there are many
restaurants with a variety of dishes, to dine while waiting for the flight. Business class
lounges and airlines representative offices are also located on this floor.

2.2. Ground operations at Noi Bai International Airport

Ground operations, as mentioned earlier in section 2.1.1., can be divided into

four categories: (1) Terminal; (2) Airside; (3) Billing and Invoicing; (4) Information
management. In the following sections, the authors will analyze the ground operations
at NIA based on the above-mentioned classification.

21
2.2.1. Terminal operations

Terminal operations at the airport is one of the key operations contributors to a

seamless and perfect flight, taking place while passengers and airplanes are on the
ground. Based on literature review, the authors classify terminal operations at NIA
into 6 main operations: (1) Check-in; (2) Baggage handling; (3) Lounge operations;
(4) Security; (5) Boarding; and (6) Arrival (Nguyen, 2019; Ashford, Coutu and
Beasley, 2013; Sumathi and Parthasarathi, 2018).

Operations

• Receiving tickets and relevant documents required, asking passengers for seat preference,
issuing boarding pass, weighing and printing checked baggage tags, consulting passengers
for other airline services, guiding passengers for next steps. Different types of passengers
(e.g. economy class, business class, VIP, ect.) may have different check-in procedures. The
check-in process is often handled by the airlines themselves. Each airline has their own

Check-in check-in zone inside the airport.

• In recent years, with the development of technology, many airlines have deployed self-
check-in kiosks (eg. Vietnam Airlines, Vietjet Air, Bamboo Airways) or even online check-
in, which improve the ease of flight procedures and save time. However, passengers having
check-in baggage still have to go to the check-in zone to carry-on baggage check-in
procedures.

• Baggage handling is handled mostly by the airlines. Each airline has different charges,
policies and regulations related to baggage handling.

• Carry-on luggage allowance can vary according to the airlines, depending on size, flight
class etc. Passengers will have to check if the carry-on luggage fits the allowance of the
airlines. Passengers can check themselves by putting their luggage onto the special scale
with a weighing frame at the airport.

Baggage • If the baggage exceeds the scale and dimension for carry-on, it will be considered for

handling depositing. After checking and receiving baggage tags, the baggage will enter the bag drop
system to be screened for safety and security, then put into the automated baggage system of
the inbound terminal and served as input into the baggage system. Any item that exceeds
weight and/or maximum size allowed by the airlines may be re-packed, charged with an
excess baggage fee and sent as cargo, or otherwise rejected. Once the bags have been
accepted by the system, the system will process and transport them to the flight build
locations. Processed and sorted baggage are ultimately loaded into unit load devices (ULDs)
to the cargo deck. Baggage handling to the aircraft often is carried out by the airlines or its
handling company.

22
 • Baggage reclaim is another important operation in baggage handling. The arrival time of
passengers and luggage may not be the same; thus, the operation management must seek
ways to mitigate jammed and busy lines of passengers waiting for bags, or bags waiting for
passengers. As a result, the reclaim hall should be well organized and baggage should be
categorized in priority to unloading. Premium baggage will be unloaded first and quickly be
delivered to the reclaim conveyor so as for premium passengers, who usually have the
priority to leave the aircraft first, to grab their baggage faster, also mitigating line up of
passengers.

• Besides baggage check-in, inbound and outbound baggage handling, compilation and
handling of loss or damages report are also operated on a daily basis. As soon as a passenger
discovers that his or her baggage is damaged, lost or has not been received, that passenger
should contact the Lost and Found Center of the airline. Staff at the Lost and Found Center
will conduct a property irregular report (PRI), which is a legal basis for the airline to
consider and settle complaints and compensation for passengers. For the lost service, the
airline staff will perform a search for passenger's baggage through the baggage tracing
system and will promptly contact the passenger to agree on the time, place and method of
baggage return.

• This stage takes place from the completion of the check-in process until boarding time
(Nguyen, 2019; Norman et al., 2013). Lounge operations are the most customer orientation,
and can be divided into commercial and noncommercial services (Norman et al., 2013).

• Non-commercial services at NIA includes: Free wifi and free to charge, free water,
Lounge
baggage trolleys, seating, toilets and changing rooms, ect. These services are normally
operations
operated by NIA authority.

• Commercial services at NIA includes the operations of duty-free shops, restaurants, left-
luggage lockers, ATM services, nursery service, sleep pod, ect.

• There will be staff responsible for keeping cleanliness and stocking for convenience.

Security • Control overall airport security, personal security checks, and cargo check. The airport
security committee has to work on security measures and controls, management of security
staff and equipment, security training, quality control, and plan for response to acts of
unlawful interference (e.g. bomb threat, ground attack).

• General security at NIA aims at ensuring security in public areas and other areas on request
with security staff continuously observing and supervising the situation in each area, and
interfering in time. Allocating guarding on the apron; guarding high value cargo; and
performing security service on request (e.g. assets, office, yard, cargo, counters) inside and
outside airport.

• An important part of security at every airport is passenger and luggage checking and

23
 screening. Passengers will have to go through the walk-through metal detector. There will be
security staff responsible for instructing passengers to leave the luggage and other metal
objects to the X-ray scanning conveyor and walk through the metal detector. The whole
scanning process is continuously monitored by a trained operator. If anything abnormal
happens, security staff will notify the passengers to rescan, try to figure out the issue, or
report suspicious cases to the control. After screening, passengers will be held in a sterile
lounge.

• Signed luggage, cargo, catering, packaging, etc. also be checked and screened carefully
before transferred to sterile areas, restricted areas or aircrafts. Screening and supervising
people, equipment, and vehicles in all areas are continuously performed.

• Security at NIA is compiled with multiple standards, based on the National Security
Program, ICAO standard, annual Security Program of CAAV, recommendations of USAP of
ICAO, and the Airport's quality management system.

• Boarding operations take place from the time passengers are notified to get on board until
they get onto the plane. When boarding time comes, passengers will line up at the right gate
to the flight, and the airline staff will check the boarding pass, related documents (e.g.
Boarding passport, identity document), and then guide the passengers through the plane, ensuring the
right passenger and the right number of passenger to get on plane on time and safely. The
process of taking passengers from the terminal gate to the aircraft or vice versa can be done
by using apron passenger-transfer vehicles, such as bus, air bridge or mobile boarding stairs.

• Arrival operations are less complex, mostly required staff present at the aircraft door to
guide passengers leaving the aircraft to the terminal. Domestics passengers can proceed
Arrivals directly to the baggage reclaim hall and leave. For international passengers or passengers on
transit flights will proceed to clear immigration procedures or transfer procedures at the
deck.

Delay / • In case of delayed/irregular/canceled flights, the airlines are required to inform the airport

Irregular / authority and other stakeholders about flight status, allocate staff to inform and provide
services to passengers based on regulations.
Canceled /
Seasonality • In case of delay, the airlines must apologize and inform passengers on flight number and
flight route, reasons for delay, estimated take-off time, and service plan as well as
information help.

• If the time is delayed from 2 hours and above, the airline is responsible for serving
drinking water; food serving for more than 3 hours; and accommodation arrangement if
delayed more than 6 hours, according to Article 7 Circular 36/2014/TT-BGTVT.

• The peak time and seasonality have a large impact on the operations of the airport in
general and terminal operations in particular, affecting not only the airport authority, the

24
 airlines but also many other stakeholders, suppliers, manufacturers at the airport. Hence,
efforts should be made to coordinate and establish plans to meet the increasing demand. The
airport operations team is responsible to provide the leadership and coordination for all
organizations on site, setting the safety and customer service standards for everyone to
adhere to, developing, testing and reviewing processes and procedures, allocating resources
in the most efficient ways to meet the changes in demand.

2.2.2. Airside operations

The Airfield Operations Activities of the NIA can be divided into three
different sections: Ramp Handling, On-ramp aircraft servicing and Onboard servicing.
The three sections work collectively to promote the safe, secure, and efficient
operating environment for airlines, cargo handling agents, a large General Aviation
component, plus all their collective ramp employees and others that serve NIA on the
airfield.
Ramp • The apron is a hub of activity whenever an aircraft is on the ground, whether in transit or
Handling for a turnaround (IATA, 2004). Some overall monitoring of activities is required (ICAO,
2010) to confirm that operations are adequately coordinated to in order to prevent conflicts
and minimize delays arising from aircraft traffic congestion. Thus, this section is tasked
with controlling the movement of aircraft traffic on and within the vicinity of the airport
terminal apron ramp according to established procedures and policies. A ramp coordinator
or dispatcher who oversees departure control will marshal the pilot by globally recognized
hand signals from a signal person on the apron or using sensor loops in the apron
pavement. The marshaling process also comprises securing distant parking or hangar
space when the aircraft will be grounded for a substantial amount of time.
• The Ramp Handling Section controls all aircraft gates at NIA and handles all airline
flight schedule changes, gate planning and the international passenger advance projection
functions. In order to improve the airport's capacity, regulate and bring the highest
efficiency for all flight activities at NIA, this section applies Arrival/Departure Manager
Systems (AMAN/DMAN), according to AIC A07/21-1.
• To guarantee that all ICAO safety and security criteria are met on the airfield, Ramp
Handling also works with airlines, airport tenants, government agencies, and all of their
contracted service providers. This area will monitor all aircraft emergencies as well as all
building activity and concession deliveries. On the apron, safety precautions include the
supply of appropriate firefighting equipment and other essential protective equipment, the
provision of security personnel as needed, and the notice of the carrier of any damage to
the aircraft observed while the aircraft is on the apron. This specialized staff at NIA is also
in charge of preventing any negative impact on the flight route by inspecting all runways,

25
 taxiways, and airport surface conditions.
On-ramp • Most arriving or departing aircraft require some ramp services, a number of which are
aircraft the responsibility of the airline station engineer. These activities include Fault Servicing,
servicing Fueling, Wheels and Tires, Ground Power Supply, Deicing and Washing, Cooling/Heating
and other services.
Onboard • While exterior aircraft service is being performed, onboard servicing activities, mostly
servicing cleaning and catering, are taking place. Maintaining extremely high levels of cabin
cleanliness is operated through: Exchanging blankets, pillows, and headrests; Vacuuming
and shampooing carpets; Clearing ashtrays and removing all litter; Replenishing
seatback pockets; Cleaning and restocking galleys and toilets; Cleaning all smooth
surfaces, including armrests.
• After cleaning, the galley is refilled, and spills are cleaned up throughout the restocking
process. This part must adhere to globally agreed-upon cleanliness standards while serving
food and beverages to passengers aboard flight.

26
2.2.3. Billing and invoicing

Billing and invoicing is one of the main operations at the airport. At NIA, it
handles both aeronautical and non-aeronautical revenue, such as flight bills, handling
invoices, cash, airport sales (points of sale), staff payrolls, etc. Airport revenue not
only comes from typical air travel (aeronautical activity) but also additional (non-
aeronautical) revenue. Additional revenue includes car parking; retail shops; food and
beverage concessions and property rentals.

At NIA, every time a customer makes a transaction, information about the

transaction will be recorded and entered into the airport's information management
system. Billing executives will be responsible for receiving information from the data
management system. They proceed to enter data on an existing invoice form. The
invoice is then printed out and sent to the customer. The billing executive's task is to
deliver that invoices and bills are created and bills are created clients on time in line
with the defined invoice lead-time and that client and customer billing requirements
are met based on the project file. They must also ensure that the billing and invoicing
information is correct. They must examine process efficiency, including invoicing
SOPs (Standard Operating Procedure) as per customer and corporate needs, as well as
undertake supplier invoice verification to ensure the correctness of invoices received.
Finally, the billing officer will collaborate with the credit control staff to ensure that
consumers pay on time. As mentioned, there are many sources of revenue at the
airport: aeronautical revenue (Airline, Passenger, Freight processes, etc.) and non-
aeronautical revenue (e.g. land lease, duty Free, retail, parking fees, other commercial
activities). However, billing and invoicing for these activities are completed manually
or in separate on-premises systems for each revenue source. This leads to too many
human resources working in this department, but sometimes errors in customer
information still occur.

2.2.4. Information management

Information management in ground operations at NIA are mainly about flight

information management. The information operation team works closely with the
airlines to promptly inform passengers about the flight status, boarding time, boarding
27
gate, etc. Airport information systems include flight information display systems
(FIDS), airport announcement or public address (PA) systems, and automatic terminal
information service (ATIS). However, from July 30, 2020, NIA has stopped making
public flight information announcements via loudspeakers at the departure gates and
automatic announcements in the terminal. Through the airport's Flight Information
Display System (FIDS), the flight information and status are updated. 210 monitors
are currently present at all necessary areas, including the public hall, check-in booths,
departure lounge, gate, and baggage claim conveyor.

Information from passenger processing, baggage handling, arrival/departure

control, and air traffic control are all optimized by airport management systems, or
airport software (ATC). Other solutions, such as CRMs and environmental
management systems, can be included in airport software.

In terms of customs processing, the Ministry of Finance and General

Department of Customs assigned the Hanoi Customs Department as the first unit of
the Customs sector to pilot the National Single Window System and the Automated
System for Customs supervision at Noi Bai international airport, with the goal of
setting up a unified and complete IT system that automatically manages and monitors
all goods from entry to exit from warehouses quickly and efficiently. As a result,
information is integrated in one system and available to all stakeholders, making the
management of information flow more efficient and effective.

28
 CHAPTER 3: RECOMMENDATIONS FOR IMPROVING
OPERATIONS AT NOI BAI INTERNATIONAL AIRPORT

3.1. Basis for the proposition - SWOT evaluation

Some keys takeaways of the SWOT analysis of NIA:

Strengths Weaknesses

• Strategic location in terms of geography, economy, • Congestions in T2 during peak hours, and holidays.
and politics.
• Inefficient layout leads to an imbalance time
• Attractive hub for domestic and international between check-in and security check procedures.
airlines.
• Long distance traveling to the shops, restaurants,
• Runways capable of servicing many types of and other amenities.
aircrafts.
Opportunities Threats

• World aviation market recover quickly and is • Pandemic situation is still complex and not yet
expected to exceed pre-pandemic levels. completely controlled.
• Support from public sector. • The war in Ukraine.
• 4.0 technologies abound in aviation industry. • Fuel price increasingly high.
• Approved plans to upgrade T2 and build T3, T4 at • World aviation industry is likely to remain in a net
NIA loss position

 STRENGTHS:

NIA is strategically located in terms of geography, economy and politics.

Located right in the capital city of Vietnam, NIA is one of the first destinations when
foreign tourists step on Vietnamese territory. At the same time, it is also an important
port connecting the three regions of the country. Domestic tourists from the central
and southern provinces often land at NIA and then go to other provinces in the North
and vice versa. This increases passenger throughput at NIA. Given the importance of
NIA, the government and city authorities have also introduced many favorable
development policies for this airport.

Currently, there are 5 domestic airlines and 22 international airlines flying to

NIA, and many international airlines are also considering opening flights to this
airport, such as Czech Airlines, Jet Airway, Finnair, Air Astana.

Two parallel runways of NIA with the lengths of respectively 3,200m and
3,800m, and 45m wide each, can serve many types of aircraft, both wide-body and

29
long-range aircraft, such as Boeing 747, Boeing 777-200/300, Airbus A340-
300/500/600, Airbus A330-200/300, Boeing 767, McDonnell Douglas MD-11 to mid-
range aircraft (e.g. Airbus A318/319/320/321, ATR-72, Boeing 787 Dreamliner), and
even the world's largest passenger plane, the Airbus A380.

 WEAKNESSES:

Before COVID-19, congestion often occurred at NIA Terminal 2 during peak

hours and holidays, causing the airport to restrict family members to see off
passengers and separate them at the entrance of the 3rd floor. In the near future, when
the epidemic is completely controlled, the international travel and transport demand of
citizens is expected to increase and potentially exceed pre-pandemic levels, which can
worsen congestion situation at this terminal.

From layout design perspective, it is the time difference between check-in

procedure and security check procedure that makes the product-oriented layout for
these stages inefficient, causing congestion. While customers can have 3 alternative
ways for check-in, with 96 check-in counters, 10 check-in kiosks, and check-in online
at home, there are only 22 security scanners for security check, increasing time for
line up at the security gate. Furthermore, consecutively lining up for procedures
causes frustration, reducing customer satisfaction.

On the other hand, the scattered amenities across the waiting lounge in the 3rd
floor also create some inconveniences for customers. Long distance traveling to the
shops and restaurants may sometimes negatively affect the motivation and prevent
customers from consuming service at the terminal, while these are potential sources of
revenue of the airport.

 OPPORTUNITIES:

In the world:

The world aviation market is expected to reach 4 billion travelers in 2024,

exceeding pre-pandemic levels, i.e. 103% of total 2019's passenger throughput (IATA,
2022). Outlook of IATA considered 2022 the year to testify the resilience of the air
transport industry and can even go beyond just recovery. Vaccine rollouts continue all

30
over the globe, travel restrictions are gradually lifted, reopening more routes. Public
sector pays large attention to support the aviation industry to recover. State-of-the-art
innovations abound in this industry (e.g. AI, biometrics, robotics, block chain, etc.).
The world has seen significant signs for the rebound of aviation and new opportunities
to develop further than the pre-pandemic.

In Vietnam:

According to IATA (2022), Vietnam's aviation domestic market is expected to

recover at 96% in 2022. As the vaccination rollout rate increases, the Vietnam
government has gradually lifted the restrictive measures, reflected in the complete
resumption of domestic flights by the end of December 2021 and conduct operation
resumption for international routes in three phrases. The government has also
implemented incentive policies to stimulate domestic tourism. Domestic travel
demand boomed after being suppressed for a long time. All of this creates potential
opportunities for the Vietnam aviation industry to rebound quicker and more
sustainable.

Besides, after the rebound, as mentioned in many recovery scenarios, the

aviation industry not only recovered faster but also can exceed the pre-COVID levels
in terms of passenger throughput. Some expected that China and South Korea travel
demand to Vietnam can help Vietnam to strongly recover the number of international
visitors as these two countries account for the largest number of foreign visitors to
Vietnam before the pandemic outbreak (i.e. 56% of the total in 2019). These are the
countries which have large vaccination cover rates, 96.4% and 73% respectively
(BaoViet Securities, 2022). Although China is still pursuing its "Zero-COVID"
strategy, it is expected that the country will partially lift the current strict restrictions
when it comes to the 2022 Winter Olympics in Beijing.

The Vietnam government has approved the plan to reconstruct NIA to be an

airport of 4F aerodrome classification according to ICAO standard; build the third
runway installed Instrument landing system CAT capable of coping with 45 aircrafts
during peak hour; adding terminal 3 and 4 to the airport to increase the total capacity
up to 50 million per year in 2030 (Airports Corporation of Vietnam). The potential for

31
NIA to recover and refurbish is worth noting and the airport authority, together with
other stakeholders, should build strategies to make the most out of these opportunities.

 THREATS:

Although the pandemic has been somewhat controlled and socioeconomic

activities have returned to normal, the aviation industry is still expected to face
challenges in 2022 as oil prices rise, increasing airline fuel costs; global economic
growth slows; monetary policy is tightened to deal with high inflation. The aviation
industry is likely to remain in a net loss position, losing around USD 9.7 billion in
2022 (IATA Global outlook, 2022).

Economic fluctuations and the tension between Russia and Europe have added
to human suffering and economic challenges, causing fuel prices to spike, which is
putting heavy pressure on the costs of airlines because most airlines build their plan on
the basis of Jet A1 oil price at USD 83-100 (Jet A1 fuel, 2022) (current oil price is
USD 160-170 /barrel). In the context of safe reopening after Covid-19 pandemic, NIA
authority must guarantee adequate fuel volume by exactly planning for sufficient
storage capacity, especially when the airport is presently experiencing pre-pandemic
passenger volumes and increased flight traffic. At the same time, the airport also must
make sure that the appropriate amount of uncontaminated fuel is delivered in a safe
way.

Besides, in terms of hygiene and safety, the world in general and Vietnam in
particular, have not yet completely controlled the situation of COVID-19. Most
recently, concern is being raised due to the spread of Monkeypox disease. In the
future, no one can say that another infectious pandemic like COVID-19 will not
happen for sure. Hence, the authority of NIA should have a complete solution to the
problem of hygiene and safety for passengers, minimizing the impact of unexpected
diseases.

32
3.2. Recommendations for improvement of operations activities at Noi Bai
International Airport

3.2.1. Layout design recommendation

Given the above-mentioned weaknesses of NIA and taking the success of

Changi Airport into consideration, Terminal 3 of this airport has a similar type of
layout compared to NIA Terminal 2, therefore the efficiency of procedural process
design at this terminal will be the best reference to come up with recommendations for
NIA to improve its efficiency with better layout design.

Source: Changi Airport Group Maps

Terminal 3 of Changi Airport is also designed in a wing-shaped model as in

terminal 2 of NIA, and because the two-finger piers in the center are quite short and
the additional part on the left side is not split from the terminal as in satellite layout,
therefore terminal 3 of Changi Airport can be considered a variation of standard linear
layout and remain some similar characteristics as NIA Terminal 2 such as duplication
of terminal facilities or long walking distances for transfer passengers, etc.

However, Terminal 3 of Changi has a different process design, especially in the

flow of international departing customers. International customers, after entering the
third floor of terminal 3, will have to conduct check-in and immigration procedures,
which is similar to NIA T2. However, at NIA T2, airport security checkpoints are
centralized at the center of the third floor and customers must carry out security
checks before moving to the departure lounge. This kind of arrangement can create a
huge bottleneck for the procedural process at security checkpoints. On the other hand,
airport security checkpoints at Changi T3 are decentralized, and each departure lounge

33
at T3 is equipped with 2-3 security scanners. This arrangement of Changi T3 has
come up with many benefits:

 Reduce the congestion in the procedural process as well as reduce the

turnaround time for the aircraft.
 Scattering airport security checkpoints to concentrate amenities (e.g.
restaurants, duty-free shops) at the center of the third floor, providing
customers with comprehensive and various choices of entertainment.
 Reduce frustration of waiting in consecutive lines for the check-in,
immigration, and security checks; hence customer satisfaction.

It can be seen that the process design at Changi T3 has overcome the
challenges of both process-oriented and product-oriented layouts. Firstly, by
centralized the amenities at the center of the third floor instead of scattering them as in
NIA terminal 2, it has reduced the long travel distances among different amenities,
which is a challenge for process-oriented layouts. Secondly, by decentralizing and
providing adequate security checkpoints, they can eliminate the imbalance between
the time customers spend on check-in and security check.

Based on the evaluation of NIA Terminal 2 layout and review on the case of
Changi Airport Terminal 3, the authors would suggest improving the efficiency of
NIA T2 layout by rearranging the layout at the 3rd floor of T2. NIA can consider
decentralizing the current security checkpoints system by scattering them close to
boarding gates, replacing the place with the current amenities. These amenities can be
moved to the center of the 3rd floor to catch the eyes of passengers. Furthermore, the
airport authority can purchase 2-3 scanners to supply for each current security
checkpoints or provide a distinct security checkpoint for a group of boarding gates.

3.2.2. Recommendations for 4.0 technology application

COVID-19 pandemic has brought about major changes in the realm of aviation,
prioritizing safety and hygiene. In recent years, in an attempt to fight against the
increasing severity of the pandemic, NIA has applied several restricted measures (e.g.
distance between passengers and passengers, and airport staff, restricted passengers’

34
movement, number of passengers on board, etc.). All these measures, together with
the lockdown events, have significantly impacted the passenger throughput and airport
operation management, thus decreasing the airport revenue. As a result, technology
application is a must, in an attempt to reconcile airport operations and motivate
passenger’s incentive for air travel in the new normal.

Biometrics and automation are increasingly seen as a route to a fast and

seamless flow of passenger handling and better control of operation (Choi, 2021;
Drljača et al., 2020; OECD Tourism Report, 2020). These technological solutions deal
with all airport operations, especially terminal operations. One successful model is
Changi Airport (Singapore) with the well-known Fast and Seamless Travel System
(FAST). The initiative was launched in 2017 at Terminal 4 of Changi Airport and has
proved to be effective before, during and after the pandemic. The FAST System
allows passengers to check-in, drop off baggage, clear immigration procedures, check
security and pass through the boarding gate seamlessly without social contact. The
processing time is reduced, operational efficiency is enhanced, safety and hygiene is
strengthened, thus increasing passenger’s incentive to air travel. A summary of
biometrics and automation application in passenger flow recommended for NIA is as
follows:

On the other hand, Changi T3 is also using two advanced technology,

computed tomography (CT) security screening for hand-carry luggage, which use 3D
screening technology to allow hand-carry luggage to be screened without removing
electronic devices, and the Automated Tray Return System, a system that can presents
trays to two passengers simultaneously at the start of the screening belt, as well as
returns tray to the line after each screening cycle is completed or automatically routes
bags that need further check to a separate channel for follow-up by security officers,
thereby significantly reduce the need of manual operations. These innovations help
reduce the time spent at security checkpoints, thereby reducing the imbalance of time
with the process of presenting boarding passes. The decentralization of security
checkpoints and these innovations indicate the enormous effort of Changi airport in
coping with the major challenge of product-oriented layout, imbalance time.

35
 Terminal
Technological application Benefits
operation

• Self-service kiosks: Standardize the use of self-check-in kiosks for

all airlines.
Integrate passenger data from the passport/ID with the face
recognition to be used as an identity base through the entire traffic
Check-in flow process (Drljača et al., 2020)

• Bag drop: Fully automated bag drop counter to self-print baggage • Minimize social
contact
tags, attach, and follow the instructions on the screen, incorporating
• Reduce staff number
facial recognition technology (Changi airport case study).
and increase remote
• 3D Computed Tomography (CT) screening technology allows control
hand-carry luggage to be screened without removing electronic • Increase time
devices (Changi airport case study). efficiency and better
Security • Automated Tray Return System simultaneously presents trays to resource allocation
check two passengers at the start of the screening belt, then returning tray • Increase
to the line after each screening cycle is completed or automatically convenience for
routes bags that need further check to a separate channel for follow- passengers
up by security officers (Changi airport case study). • Reduce risk of
congestion and line up
• Automated immigration/emigration gate allow self-scanning
Emigration /
passport, boarding pass and fingerprint to authenticate identity
Immigration
(Changi airport case study).

• Boarding pass control: Automated gate readers and face

Boarding
recognition for identity verification purposes by self-scanning
control
boarding pass and taking photo (Changi airport case study).

The implementation of 4.0 technology allows a more efficient and streamlined

operation approach, aiming at reducing time and ensuring trustful travel experience
and overall satisfaction for passengers. In the post-pandemic scenario, safety and
hygiene are the keywords to maintain and develop business in every sector, especially
aviation. Touchless technologies such as automation and biometric recognition
minimize the contact to people and objects, providing hygiene and convenience,
reducing the risk of infectious disease (e.g. COVID-19, Monkeypox, and other
unpredictable epidemics in the future). Furthermore, technology is not only a tool for
building resilience but also for creating new opportunities. As mentioned earlier, it is
36
expected that overall traveler numbers can even break the record before pandemic,
proving the potential of the aviation market meanwhile posing issues on handling the
demanding requirements of passengers. Therefore, technology applications can deal
with the increasing passenger throughput and satisfy passenger demands. Overall, it
will largely contribute to the success of NIA operations, strengthening its position in
the region and reputation among domestic and international passengers.

However, to successfully implement these technologies requires huge

investment in finance, human resources quality enhancement and close collaboration
between many stakeholders in the aviation industry.

Recently, the government has proposed investment strategies in airport

infrastructure between 2021-2030 (Foreign Investment Agency, 2020; Airports
Corporation of Vietnam) including a plan for T3 terminal establishment at NIA. This
could be an opportunity for NIA authority to invest in a Smart airport terminal,
implementing automated and biometric technologies to meet the increasing demand
for air transport travel, making the airport becoming one of the top airport operations
in the region.

Secondly, to respond to the changing context, operation management must

strive for a balance between processes, customer demands and technologies
requirements. This requires a well-designed model for human resources management
to increase staff's competencies to manage new technologies within airport operations.

Finally, collaboration efforts should be made to ensure the operation at NIA in

the new normal context. In this increasingly complex context, it is necessary for all the
stakeholders in the operation management of the airport to understand the process
approach and the participants, together with insights into each user's requirements as
well as context perception. The manager will be responsible for coordinating all
efforts, ensuring the staff know how to control the technology, handle technical issues,
and assisting passengers in time. Also, the airport will have to strengthen cooperation
with relevant agencies, airlines so as to promptly make decisions, involving the other
stakeholders in the application process of new technologies, sharing information and
aligning incentives to ensure a smooth run of the automated process.

37
 CONCLUSION

The authors have analyzed the ground operations for passengers at NIA in
terms of layout, passenger process flow, and ground operations. Based on that, SWOT
analysis was implemented to the performance of NIA and recommendations were
proposed to address weaknesses, prevent threats and take full advantage of
opportunities to improve the airport's operational efficiency and develop
sustainability, creating safe and satisfying flights for passengers.

The report implemented qualitative analysis based on theoretical basis and

secondary information collected from websites, journals and other reliable sources.
After analyzing the ground operations at NIA in terms of terminal, airside,
billing/invoicing and information management, the authors continue to analyze the
layout inside the terminals and the passenger process flow design to see whether the
layout and process design facilitate the operations at NIA. The authors used SWOT
analysis to figure out the strengths and weaknesses of the operation and design of
layout and processes at NIA, and outlined challenges and opportunities for the
aviation industry in general and NIA in particular. At the same time, the authors
learned about the successful case study of Singapore Changi Airport and found the
worth learning points. Changes and improvements for NIA airport based on Changi
Airport's case study are proposed in terms of layout, process design in Terminal 2 and
technological implementation for the planned establishment of Terminal 3. 

Finally, our group 7 would like to thank Dr. Nguyen Minh Phuc for the useful
knowledge throughout the course, not only theoretical knowledge but also practical
knowledge, helping us to have more insights into production and operation, the two
important aspects in the world of supply chain, fostering more knowledge to prepare
for the future.

38
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