Sofia Airport’s transformation: A five-star vision

Sofia Airport (SOF) in Bulgaria is embarking on an ambitious journey to redefine the regional airport experience. The airport is renovating its Terminal 2, which will accommodate the traffic from the older Terminal 1. Once this is complete, around $275 million will be invested into building a new Terminal 3 next to it and they will become integrated by 2030. Under the leadership of CEO Jesus Caballero, the airport is not merely aiming for improvements, but rather a complete transformation into the first 5-star regional airport in Europe. This bold vision encompasses cutting-edge technology, sustainable practices, and a deep commitment to passenger satisfaction, setting a new benchmark for airports across the continent.

Schengen accession: a catalyst for growth

A significant development in SOF’s recent history was Bulgaria’s accession into the Schengen Zone on 31 March 2024. While the immediate impact on passenger numbers wasn’t apparent due to pre-scheduled airline flights, this move has sparked considerable interest among airlines, particularly those from third countries and non-European destinations. “What we are now noticing, what we are now talking about with airlines, especially with the third countries and non-Europe destination, is increasing appetite to open flights to Sofia, thanks to the Schengen accession,” noted Caballero. This increased interest suggests that the coming seasons could see new routes and greater capacity at SOF.

Technological advancements: streamlining the passenger journey

Central to SOF’s transformation is the implementation of advanced technology to enhance the passenger experience. The airport recently launched a smart boarding pass check-in system, becoming the first Bulgarian airport to adopt such e-gates. This initiative, while planned before the Schengen accession, has coincided well with the reduction in border control, making the passenger process smoother. Caballero explained, “We installed this e-boarding pass reader and now we have a seamless process.” This has impacted efficiency, with the airport now processing four times more passengers per minute. The e-gates have not only improved throughput, but also reduced costs by more than 50%, demonstrating how technology can be leveraged for enhanced passenger experience and operational efficiency. Moreover, this streamlining of processes has freed up space previously used for border control to be repurposed to increase the capacity of security checkpoints.

The 5-star vision: a new standard for regional airports

The most ambitious aspect of SOF’s strategy is its goal to become Europe’s first 5-star regional airport. According to Caballero, this goal was conceived after a thorough analysis of the airport’s potential and a review of existing standards. “We think we can create something unique here and send a message that Bulgaria has the potential to level up the passenger experience and the standard in the region,’” Caballero stated.

This pursuit isn’t just about facilities, but a holistic approach to passenger experience. Unlike hub airports, which often require extensive travel distances between gates, Sofia aims to provide an airport where everything is within comfortable walking distance.

“We want to achieve a terminal where everything is within a comfortable walking distance. In less than five minutes, you can reach every single gate. Our design is to centralise the commercial areas in one.”

Achieving a 5-star rating requires more than just infrastructure improvements, however. A key element of SOF’s strategy is the training and engagement of its staff and stakeholders. This includes not only airport employees but also border police, customs officers and commercial staff. Caballero emphasises that an airport experience is made up of “60% procedures and training and 40% facilities.” He further notes the importance of training staff in passenger-centricity and establishing clear procedures for every step of the passenger’s journey, particularly in managing disruptions. This approach highlights the significance of human interaction in the overall experience. “You need to have good facilities, which we will have with the new Terminal 3 and with the refurbishment of  Terminal 2. But what we need to really focus on, which is more difficult, is having the whole community engaged in one common goal.”

Sofia Airport’s Terminal 2

Sustainability: a core principle

Sustainability is another crucial aspect of SOF’s transformation. The airport is committed to becoming fully carbon neutral by 2036, targeting both Scope 1 and 2 emissions. To achieve this, the airport is constructing a 20 megawatt solar panel and a 20 megawatt battery storage system that will allow it to fully decarbonise 80-85% of its emissions. The remaining emissions, primarily from vehicles, are being addressed by replacing its fleet with electric vehicles and upgrading charging infrastructure. The move to close the outdated Terminal 1, which currently uses diesel heating, and to switch Terminal 2’s heating from natural gas to electrical further demonstrates a commitment to reducing the airport’s environmental footprint. The new Terminal 3 is planned to be completely carbon neutral, both in construction and operation.

“In the first three years of our concession of the airport, we reduced our carbon emissions by 30%, and our fuel consumption, water consumption and waste management by almost 50%,” explained Caballero.

Commercial growth: enhancing non-aeronautical revenue

SOF is actively pursuing multiple strategies to grow its non-aeronautical revenues, crucial for its long-term financial sustainability. A notable success has been the opening of a new walk-through duty-free store in Terminal 2. This has resulted in a 50% increase in revenue compared to the previous stand-alone shop. Beyond increased revenue, the new shop has also enhanced the passenger experience, leading to improved satisfaction scores for value for money, and offering 400 square metres dedicated to local products. The airport is also expanding its parking facilities by adding nearly 1,000 parking spaces, including electric vehicle charging points. This expansion is essential, as parking currently accounts for 20% of the airport’s commercial revenues. Caballero stated, “The main revenue stream is the retail, the walk-through shop… The second, depending on the airport and in our case, is parking, and food and beverage.” The new parking spaces will address the existing capacity issues, resolve long queues during peak hours, and create a more positive passenger experience.

Other non-aeronautical revenue streams being developed at SOF include:

• A new food court, awarded to SSP, expected to open in phases with both international brands and local flavours
• Business lunches, to be offered on the rooftop of Terminal 2, providing unique views of the airfield and Bulgarian landscape
• Digital advertising, with the renewal of all billboards
• Car rental, with updated desks and booths following a new contract awarded in 2022
• A new conference centre, planned for launch within one to two years, to host events with views over the airfield.

Challenges and future outlook

Despite the ambitious plans and recent successes, SOF faces several challenges. One of the biggest is workforce shortages, particularly in loaders and security screeners. “I think all airports and airlines, aviation in general, are struggling with the workforce, especially in the loader, security, screener. It’s not easy to bring people back following the pandemic,” Caballero explained. There are also concerns surrounding traffic uncertainties, supply chain issues and the impact of geopolitical conflicts. Furthermore, the airport is facing capacity challenges as it grows and must manage passenger volumes until the new Terminal 3 is completed in 2030.

A people-centric approach

A fundamental part of the transformation at SOF is a focus on the employees. The airport is making significant investments in its workforce, with the understanding that motivated staff directly impact customer satisfaction. “Everybody knows, you have happy employees, you have happy clients,” said Caballero. This people-centric approach includes leadership training, enhancing the employer brand to attract talent and bringing back skilled professionals to Bulgaria. Caballero detailed: “There’s a lot of talent working outside the country, and airports are becoming an attractive asset to bring value to the country. We are starting to recruit people from the UK, from the U.S., from France, and to prepare the next generation of managers and leaders at the airport.”

In conclusion, SOF’s journey to becoming a 5-star regional airport is a testament to its visionary leadership and dedication to innovation and the passenger experience. By embracing technology, investing in sustainability, diversifying revenue streams and prioritising staff wellbeing, SOF is setting a new standard for the airport industry and demonstrating that a 5-star experience is achievable, even for regional airports. The industry will be watching closely to see how SOF continues its exciting transformation over the coming years.

About the author

C: SOF Connect.

Jesus Caballero is the CEO and the Chairman of the Management Board of SOF Connect – the operator of Sofia Airport. He is also a Member of the Board of Queen Alia International Airport in Amman, Jordan. Mr Caballero is a top professional with vast experience in all areas of aviation from aircraft maintenance to coordination of airport operations, terminal and transportation management and many other aspects in the field.

Before taking over the management of SOF Connect, Jesus Caballero was the CEO of Seville and Melilla airports, and was also involved in the management of Madrid, Barcelona and Malaga airports. He holds the record for the youngest CEO of an airport in Spain.

Under the leadership of Mr Caballero, Sofia Airport successfully passed the inspections of the European Union, which contributed to the acceptance of Bulgaria into Schengen Area from 31 March 2024. He transformed the management of the airport as SOF Connect to start implementing its strategy for transformation into a 5-star, modern regional airport, with a balance between decarbonisation goals and business growth. Jesus Caballero manages investment projects for over EUR 624 million to improve infrastructure, passenger experience and services, digitalisation, renovation of Terminal 2 and construction of Terminal 3.

Mr Caballero is active in the field of sustainable development of the aviation industry as a member of the Council of ACI WORLD Fund and as a member of the Board of ACI EUROPE. Jesus Caballero was selected as the Manager of the Year 2024 in Bulgaria by Manager Magazine and Deloitte. Mr Caballero is an aeronautical engineer specialised in airports, air navigation systems and air traffic management. He holds a Master’s Degree in Business Administration and Management from the Chamber of Business, Commerce and Industry of Spain and completed the Executive Development Programme at the IESE Business School from the University of Navarre.