The aviation industry is currently dealing with a number of environmental challenges.
While much of the effort and media attention goes into the formidable endeavor of abating carbon emissions, some prominent operators are looking at other ways to mitigate their environmental footprint. One such approach is that of integrating circular economy processes into the procurement cycles.
Airports are a case in point. Think about how many pieces of equipment are needed to run a decent-sized airport, from baggage carts and towing vehicles to de-icing machines and conveyor belts.
“Larger airports with more resources tend to renew their equipment whenever new technology or products comes out,” explained Xavier del Valle, International Procurement & Supply Chain Senior Manager at Groupe ADP, one of the world’s leading airport operators.
But what should be done with equipment, much of which is still fully functional, after it is replaced?
Under del Valle’s guidance and supervision, around three years ago Groupe ADP launched a circular economy project called “Airport Market”, which is essentially the world’s first digital marketplace for the full scope of used airport equipment.
The initiative started as a channel for Groupe ADP’s three Paris airports, Charles de Gaulle (CDG), Orly (ORY) and Le Bourget (LBG), to find buyers for older pieces of kit when they received new equipment. But it has since grown to encompass more than 200 airports worldwide.
Airports can register on the marketplace and act either as buyers or sellers (the latter requires contacting the Airport Market team). Since 2022, when Airport Market had its first sale, the Paris airports have acted as the primary sellers. However, other large airports are starting to embrace the idea and have been selling their used equipment online.
Buyers, in turn, can obtain certified equipment at prices that are often around a third of what they would pay if they bought new.
The catalogue with what’s on sale can be consulted publicly, but prices are only displayed to registered users. According to del Valle, Airport Market is not an auction site. Prices are set by the sellers, and they typically also include the reconditioning of the equipment. Transport costs can also be determined and added to the price at the buyer’s request.
The environmental component of the initiative is important, but it’s not only about limiting waste. Del Valle was also keen to point out that by extending the life of equipment that is still fully functional, Airport Market may have also helped lower carbon emissions.
Airport Market is also included in Project Olga, a European environmental program (its name is an acronym for hOListic & Green Airports), and Groupe ADP has also worked with a firm called Global Climate Initiatives (GCI) to quantify the project’s contribution in terms of emission savings.
Two pieces of equipment were used as a benchmark to calculate lifecycle emissions, from production all the way to their expected future disposal. The consultants compared their full lifecycle emissions to those that would have resulted from buying the same equipment new. The results were then extrapolated to the rest of the inventory to come up with the figure of 2,100 tons of CO2 saved in 2023 alone through the marketplace activity.
It’s not just about the environment
But one thing del Valle is particularly proud of is the solidary element of the project, highlighting that larger and better capitalized airports can help smaller ones, which often have limited budgets for capital investment, acquire relatively new technology at a fraction of what it costs to buy new.
The Groupe ADP executive explained how Airport Marketplace has shipped equipment to airports in Asia, Africa and Europe, as well as to smaller French airports.
So, what has been the reaction of equipment manufacturers? And do they see this scheme as a commercial threat?
“We actually work together with the manufacturers,” del Valle said. “They help us recondition the material for their new users. We are not cannibalizing any sales because we buyers are usually airports that could not afford to buy the equipment new.
“On the contrary, we are offering the manufacturers a way to reach out to airports that may buy from them in the future, whether its maintenance services or because they become familiar with the brand and order new whenever circumstances permit in the future.”
Another matter is whether other airports will follow the example and launch their own marketplaces. Reportedly, VINCI, which is another large French airport operator, and an airport operator in Russia have been dabbling with similar circular marketplace concepts, although their business model presents some differences, according to del Valle.
“It’s not so easy to replicate,” del Valle said. “It’s not just connecting buyers and sellers, you need to make sure the equipment gets properly prepared for its new user, you need to get it to its new destination, etc. It takes a lot of effort.”
Del Valle said he expected several larger airports in Europe to join the initiative soon.
“First and foremost, it is a solidary initiative,” he added. “This is our raison d’être.”
