Background:

King Fahd International Airport (DMM) located in Dammam, Saudi Arabia, is an important gateway to the country’s Eastern Province. The city is the fourth-most populous in the country and the centre for Saudi’s oil industry. 

Changi Airports International (CAI) was engaged by the General Authority of Civil Aviation (GACA) of Saudi Arabia under a nine-year operations and management agreement to transform, commercialise and corporatise DMM. 

Problem:

Back in 2008, DMM faced a serious traffic leak to a competitor airport in a neighbouring country. There was an urgent need to stem traffic outflow, strengthen air links, and reverse the airport’s declining market share. 

On the non-aeronautical side of the house, the airport lacked commercial offerings that would provide a good retail experience for passengers. The immediate challenge was to relook the commercial layout and attract a good tenant mix. There was also a need to explore new revenue streams to strengthen the DMM’s financial performance. 

Solutions:

• CAI sent an experienced team of resident professionals and visiting experts to transform DMM and strengthen its competitiveness as a key gateway to Saudia Arabia. 

• The team adopted a multi-pronged approach. It worked with GACA to liberalise aviation policy at DMM to increase the airport’s appeal. To build air links, the team pursued airline partners by crafting compelling business cases. The efforts yielded fruits. Local carriers agreed to establish their base at DMM while new foreign airlines started to launch flights to DMM. 

• To prepare the airport for the increase in passengers, airport operations were enhanced by injecting capacity, revamping processes and leveraging technology. In 2017, the team launched the Kingdom’s very first City Terminal, offering the convenience of off-airport check-in, 24 hours in advance.

• CAI also strengthened DMM’s commercial positioning. The team harnessed  usable spaces in DMM’s huge terminal to double its commercial area. Tenant mix was enhanced to include many new international brands. New passenger offerings, such as an airport hotel, were introduced.

• To develop additional revenue streams, the team took advantage of the massive expanse of the airport site to establish a new Cargo Village in 2015. This strategic move not only buttressed DMM’s non-aeronautical revenue, it also positioned DMM as an important node in regional trade and enhanced the airport’s hub status. 

Results:

• With holistic hub development and operational efficiency programmes in place, DMM surpassed its competitor as a leading air hub in the region. Its traffic also more than doubled to around 10mppa at the end of CAI’s partnership. 

• DMM’s non-aeronautical revenue also tripled upon completion of CAI’s partnership. Its financial position had turned around. CAI helped transform DMM from a loss-making to an EBITDA-positive airport. 

• In July 2017, DMM was successfully corporatised as Dammam Airports Company (DACO). 

Related Awards:

• In 2010, DMM was accorded the Routes Airport Marketing Award (Middle East) at the 8th Routes Asia Conference. 

• In 2015, DMM clinched two accolades at the Airports Council International (ACI) Airport Service Quality (ASQ) Awards: Most Improved Airport (Middle East category) and third place in Best Airport by Region (Middle East category).