Business Case
Business Case
CASE
Executive Summary
This business case outlines how the Sharjah International Airport Expansion Project will address current
business concerns, the benefits of the project, and recommendations and justification of the project. The
business case also discusses detailed project goals, performance measures, assumptions, constraints, and
alternative options.
The Government of Sharjah has approved the US$400 million (AED 1.46b) budget for the expansion of
Sharjah International Airport, according to MEED (Middle East Economic Digest), quoting Adel Abdullah
Ali, Air Arabia’s Chief Executive Officer. According to the airline CEO, the expansion project is expected to
begin this summer and will increase airport capacity from 8 to 18 million passengers a year.
A master plan for the expansion of the airport was submitted by American engineering firm Bechtel in
2013, recommending a new terminal, construction of new roads around the airport, plus additional
services such as a new hotel and a shopping mall.
In 2014, Sharjah International Airport opened a new AED 500 million (US$ 136m) airport runway,
significantly expanding the airport’s aircraft capacity. The new runway allows large and new‐generation
ICAO Code F aircraft such as the Airbus A380 and Boeings B747‐8 Intercontinental and B747‐8 freighter.
The old runway now serves as a taxiway.
The airport handled 11 million passengers from January to December 2016, registering a 10 percent year‐
on‐year increase on 2015. In January 2017, the airport handled 969,633 passengers, showing a 4 percent
increase on January last year.
Sharjah International Airport’s growth has been driven by its strategic location, the success of Sharjah’s
in‐bound tourism industry and the expansion of Sharjah‐headquartered Air Arabia. The airport’s ideal
location, close to Sharjah city, Dubai city and the main highways connecting the country’s seven emirates,
has made it a convenient hub for both business and leisure travelers.
Business Case Analysis Team
The Technical team in Sharjah International Airport carried out an analytical study to evaluate the
proposals in the presence of representatives from the Directorate of Public Works and Department of
Civil Aviation in Sharjah. Before delivering their proposals, interviews were carried out with all
participating companies, giving them an overview about the project and examining their expertise by
reviewing executed projects in the relevant field.
The new expansion process of Sharjah International Airport, the cost of which is estimated at
approximately one billion and five hundred million Dirhams, includes many facilities such as the
expansion of the passengers’ building, which is expected to increase the capacity to hold passengers up
to 20 million by 2027. The new expansion will be carried out progressively over a number of phases, the
most important one being the expansion of roads to and from the Airport in addition to a host of
additional facilities which will increase the abilities of the Airport and develop its services significantly
Issue
Sharjah International Airport’s (SIA) passenger terminal building has six contact gates and 19 remote
hardstand positions (which are accessed by a bussing operation). The terminal building is a two‐level
facility with no segregation of arriving and departing passengers except for in secured departing gate
areas. This require all departing passengers to be screened as they are emplaning. Many of the functional
areas including check‐in, emigration, seating areas, and immigration, are exceeding capacity, there
airport is currently working on a project to provide addition bus gates on both ends of the terminal.
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Terminal facility requirements are principally assessed by identifying peak the period passenger demand
for both inbound and outbound activity (the periods of the day that have the greatest inbound and
outbound passenger activity) and flight scheduling patterns (how the airlines distribute their flights)
rather than annual activity (the total passengers for the year). The unique nature of different terminals—
their different processing capabilities—and level of service goals require separate evaluations of peak
hour demand.
SIA handled 11.1 million annual passengers (MAP) in 2016, an increase of 10.0% over 2015. The airport
forecasts demand of 11.3 MAP in 2017. Air Arabia (G9) is the primary operator at SIA, accounting for
approximately 85% of the passenger traffic. A summary of the existing traffic demand is provided in table
3‐1:
SEGMENT PASSENGERS OPERATIONS
Air Arabia 8,034,000 60,000
Other Scheduled Passenger Airlines 3,014,243 15,967
Total 11,048,243 75,967
Table 3‐1: Estimated 2016 Airport Activity by Segment
Peak traffic months for the Airport are July, August, and December, coinciding with Eid, summer holidays,
and Christmas/New Year. A summary of the existing average peak day demand is provided in Table 3‐2
Key Issues
No separation of deplaning and enplaning passengers
Transfer rates are climbing
No room accommodate passengers. They are sitting in the departures Hold rooms.
The airport was designed for 8 MPPA (designed capacity) but today they are at 11MPPA level.
Over capacity by 3 MPPA
Issues with immigration staffing. Leads to passengers’ queue to extend out into the concourse.
Old baggage systems
Operational Issues
Large number of passengers who travel infrequency and do not understand common languages
(Arabic, English)
Airline want ability to do short connection times 30‐45 minutes
Air Arabia current prefers to boards passengers into hold room (enclosed) to allow better on
time performance.
Finding of passengers during boarding to prevent late departures.
Key Assumptions
The Airport facilities need to meet the forecast demand of 17.5 million annual passengers
(MAP) by 2025
Facilities requirements are based on Level of Service C target
Assumed transfer share for the planning horizon
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– Air Arabia (G9): 50%
– Other airlines (OALs): 0%
Assumed load factor (source: Master Plan 2014 assumption)
– Air Arabia (G9): 83%
– Other airlines (OALs): 85%
All active aircraft stands sized to accommodate A321s
Facility goals
Separation of deplaning and enplaning passengers
Short walking distances
One centralized emigration
One centralized security facility for all departing passengers
Better custom experience (More open spaces, more contact gates)
More concessions, more commercial revenue focus on F&B
Improved Bussing operation
One check‐in area for Air Arabia (~64 counters)
Improved Bag screening (outbound/inbound)
Future Demand
As part of the study, three independent forecasts were analyzed and reviewed:
The Master Plan (MP) prepared in 2014 projected 19.1 MAP at SIA by 2025
Air Arabia provided with an updated forecast which projected the airport traffic to grow to 21.6
MAP, (an increase of 12.9 percent over MP forecast)
Forecast prepared by Sharjah Airport Authority has forecast to reach 14.6 MAP by 2025 (a
decrease of 23.9 percent from MP forecast)
Anticipated Outcomes
The new expansion project is an important addition to Sharjah International Airport and it will serve an
increasing number of passengers every year. It will be an important stop for airlines and shipping due to
the airport’s strategic location and the special services and facili‐ties offered to companies on the main
lines of navigation and air transport that link important locations in a few hours.
The project aims at upgrading existing facilities, including an expansion of the passengers’ building, to
increase the airport’s handling capacity to 25 million in 2027.
Sharjah ‐ Sharjah International Air‐port has been a major factor in supporting and promoting tourism and
trade in the UAE. It has also played a crucial role as the hub in the expansion of the regional budget airline
Air Arabia.
Project Overview
An Airport Expansion Program with the following primary goals:
Total passenger capacity of seventeen (17) million passengers per annum.
Level of Service allowance for twenty million (20) million enplaning passengers per annum.
Addressing specific operational demand‐capacity issues such as the segregation of departures and
arrivals flows, transfer passenger movements, increasing airside seating areas and improving
minimum connect times.
New automated baggage handling and sorting facility.
New Central Utility Plant (CUP) facility.
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Project Description
The new expansion process of Sharjah International Airport, the cost of which is estimated at
approximately one billion and five hundred million Dirhams, includes many facilities such as the
expansion of the passengers’ building, which is expected to increase the capacity to hold passengers
up to 20 million by 2027. The new expansion will be carried out progressively over a number of
phases, the most important one being the expansion of roads to and from the Airport in addition to
a host of additional facilities which will increase the abilities of the Airport and develop its services
significantly.
Current Facility and Capacity
The current passenger terminal building at Sharjah International Airport has a total facility area
of 63,561m² over three levels – ground, mezzanine and first floor.
The passenger terminal building has six (6 No.) contact gates and nineteen (19 No.) remote
hardstand positions which are accessed by a bussing operation.
Sharjah International Airport handled 11.1 million annual passengers (MAP) in 2016 with a
forecast demand of 11.3 million annual passengers (MAP) in 2017. Air Arabia is the primary
operator at Sharjah International Airport and accounts for approximately 85 % of passenger
traffic.
The Project accommodates the following:
New Arrivals Terminal Facility
New Airside Transit Hotel
New Fuel Hydrant System Extension
In Line Baggage Screening System
New Ramp Control Tower
New Ticketing/Check‐In Lobby
New Connector Link Building
New Data Center and Corridor
New Taxi Parking Lot
New Airside Transit Hotel
New Taxi Canteen Building
New Pier Finger‐Concourse B
Automated Baggage Handling System
New Departures Level Mezzanine Interior Addition ‐ Emigration and Security Screening
Checkpoint
7 No. Additional Aircraft Parking Gate Stands
New Airside Central Utility Plant Facility
New Security Screening Checkpoint
New Ticketing/Check‐In Lobby
New Baggage Reclaim Hall
Strategic Goals
H.E. Ali Salim Al Midfa explained that the new expansion project is an important addition to Sharjah
International Airport stating that it will serve a huge number of increasing passengers every year. Also, it
will be an important stop for airlines and shipping due to the importance of Sharjah International Airport
and its strategic location as well as special services and facilitates offered to companies and its vital
location on the main lines of navigation and air transport which link important locations in a few hours.
The tourism development strategy of the emirate aims to attract more than 10 million tourists to Sharjah
by 2021. Promoting family tourism and an emphasis on cultural activities and related infrastructure
projects have set Sharjah apart from other destinations in the region.
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The Government of Sharjah has approved the US$400 million (AED 1.46b) budget for the expansion of
Sharjah International Airport, quoting Adel Abdullah Ali, Air Arabia’s Chief Executive Officer. According to
the airline CEO, the expansion project is expected to begin this summer and will increase airport capacity
from 8 to 18 million passengers a year.
A master plan for the expansion of the airport was submitted by American engineering firm Bechtel in
2013, recommending a new terminal, construction of new roads around the airport, plus additional
services such as a new hotel and a shopping mall.
In 2014, Sharjah International Airport opened a new AED 500 million (US$ 136m) airport runway,
significantly expanding the airport’s aircraft capacity. The new runway allows large and new‐generation
ICAO Code F aircraft such as the Airbus A380 and Boeings B747‐8 Intercontinental and B747‐8 freighter.
The old runway now serves as a taxiway.
The airport handled 11 million passengers from January to December 2016, registering a 10 percent year‐
on‐year increase on 2015. In January 2017, the airport handled 969,633 passengers, showing a 4 percent
increase on January last year.
Sharjah International Airport’s growth has been driven by its strategic location, the success of Sharjah’s
in‐bound tourism industry and the expansion of Sharjah‐headquartered Air Arabia. The airport’s ideal
location, close to Sharjah city, Dubai city and the main highways connecting the country’s seven emirates,
has made it a convenient hub for both business and leisure travelers.
Sharjah ‐ Sharjah International Air‐port has been a major factor in supporting and promoting tourism and
trade in the UAE. It has also played a crucial role as the hub in the expansion of the regional budget airline
Air Arabia.
The project aims at upgrading existing facilities, including an expansion of the passengers’ building, to
increase the airport’s handling capacity to 25 million in 2027.
The new expansion project is an important addition to Sharjah International Airport and it will serve an
increasing number of pas‐sengers every year. It will be an important stop for airlines and shipping due to
the airport’s strategic location and the special services and facili‐ties offered to companies on the main
lines of navigation and air transport that link important loca‐tions in a few hours.
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