Asia-Pacific Airports Magazine Issue 03, 2013

The official publication of ACI Asia-Pacific www.aci-asiapac.aero

Ready for take-off: Doha’s new airport

Issue 3, 2013

In the spotlight: Small airports

www.aci-apa.com

Airport profiles: Melbourne & Vancouver Plus: IT trends, environment, airport design

Published by

ASIA-PACIFIC AIRPORTS MAGAZINE

VVV @BH @RH@O@B @DQN

Asia-Pacific Airports Issue 3, 2013

6 View from the top ACI Asia-Pacific’s regional director, Patti Chau, reflects on an exciting and eventful year for the region.

8 News 10 ACI Asia-Pacific news 12 Traffic trends 14 Making waves Doha’s new wave-design inspired Hamad International Airport will become one of the world’s most high-tech airports, writes Joe Bates.

18 Southern star A new terminal is just one major development that will be springing up at Melbourne Tullamarine over the next two years, CEO, Chris Woodruff, tells Lucy Siebert.

1D@CX ENQ S@JD NƤ #NG@ŗR MDV @HQONQS (M SGD RONSKHFGS 2L@KK @HQONQSR

(RRTD VVV @BH @O@ BNL

HQONQS OQNĆĽ KDR ,DKANTQMD 5@MBNTUDQ /KTR (3 SQDMCR DMUHQNMLDMS @HQONQS CDRHFM

/TAKHRGDC AX

22 It’s a small world PS Nair reflects on the importance of the region’s smaller gateways.

24 Pacific power player The little island of Guam has big tourism and aviation ambitions, reports Peta Tomlinson.

28 Five point plan Adopting a co-ordinated revenue growth strategy should be a priority for small and emerging airports looking to optimise their business models, writes Airbiz’s Iain Munro.

32 Looking to Asia New Vancouver Airport Authority president & CEO, Craig Richmond, sets his eyes on Asia and Latin America to build YVR as a global hub.

www.aci-apa.com

CONTENTS

3GD NƧ BH@K OTAKHB@SHNM NE "( RH@ /@BHƼ B

3

The official publication of ACI Asia-Pacific

In print, online and as an app on apple and android devices. www.aci-apa.com

ASIA-PACIFIC AIRPORTS MAGAZINE

5

CONTENTS

36 Enviro report Joe Bates takes a closer look at a handful of pioneering environmental initiatives instigated

by Asia-Pacific airports, ACI and the aviation industry.

40 Points of view Asia-Pacific Airports magazine meets Malcolm Johns, deputy chair of Tourism New Zealand.

44 All together now ASEAN states are scheduled to open their skies in 2015 – but key stumbling blocks remain, writes Simon Lewis.

52 Changing times Myanmar is proving to be Asia’s hottest destination and a raft of new airport and tourism developments are planned, writes Simon Lewis.

58 Design & build Incheon International Airport and Jakarta-Soekarno Hatta International Airport.

60 World Business Partners

62 Being social Spotlight on social media innovation across the region.

50 What passengers want Tom Knierim reflects on the key findings of SITA’s Passenger IT Trends Survey.

Asia-Pacific Airports (APA) Editor Joe Bates +44 (0) 20 8831 7507 joe@aci-apa.com Writers/Contributors Lucy Siebert Caroline Cook Justin Burns

Design, Layout & Production Andrew Montgomery andy@aci-apa.com

Advertising Manager Kalpesh Vadher +44 (0) 20 8831 7510 kalpesh@aci-apa.com

Elaine Harris

Andrew Hazell +44 (0) 20 8831 7518 andrewh@aci-apa.com

Website & online José Cuenca Published by Aviation Business Media Ltd 26-30 London Road Twickenham, TW1 3RW, UK Managing Director Jonathan Lee

Subscriptions Lauren Murtagh subscriptions@ aviationmedia.aero Printed in the UK Buxton Press

Asia-Pacific Airports (APA) is published four times a year for the members of ACI Asia-Pacific. The opinions and views expressed in APA are those of the authors and do not necessarily reflect an ACI policy or position.

The content of this publication is copyright of Aviation Business Media and should not be copied or stored without the express permission of the publisher.

www.aci-apa.com

6

ASIA-PACIFIC AIRPORTS MAGAZINE

VIEWPOINT

VIEW FROM THE TOP ACI Asia-Pacific’s regional director, Patti Chau, reflects on an exciting and eventful year for the region.

H

ow time flies – it feels like only the other day we were planning for January’s Trinity Forum in Abu Dhabi and now we are in November, with our third issue of 2013.

And, you might notice something a little different about it, because we have once again joined forces with our original publishers, Aviation Business Media, to launch a totally new-look and more dynamic Asia-Pacific Airports (APA) magazine.

In addition to the more reader-friendly and portable size, we believe that the fresh new design, introduction of issue themes and APA Issue 3, 2013

easily identifiable new sections will quickly make APA a firm favourite with our readers.

TRAFFIC TRENDS

The past summer holiday has boosted our passenger traffic in a very positive way.

Airports in Asia-Pacific recorded their first double-digit year-on-year growth in August, with an increase of 10% in Asia-Pacific and 18.5% in the Middle East.

Both international and domestic passenger numbers have shown remarkable growth, and it is encouraging to see that both the Asia-Pacific and Middle East sectors of our region are growing strong in passenger traffic.

ASIA-PACIFIC AIRPORTS MAGAZINE

RELATIONSHIP WITH ICAO

ACI sets out clear objectives and roadmaps to achieve better co-ordination with ICAO and other international organisations. We had a fruitful year, as reflected by the outcome of the ICAO Air Transport Conference in March and the recent 38th ICAO Assembly in Montréal, which approved our proposals for Airport Collaborative Decision Making (A-CDM) and ACI’s recommendation on the need for consultation with airports when new Performance-Based Navigation routes are being developed.

Also, in order to prepare for the industry’s target of carbon-neutral growth from 2020, the ICAO Assembly agreed to develop a global market-based measure for international aviation, on which ACI has been working closely with our industry partners through the Airport Transport Action Group (ATAG).

In addition, we were able to take the opportunity to inform the ICAO Assembly of the development of the ACI Airport Carbon and Emissions Report Tool (ACERT), as well as the success of our Airport Carbon Accreditation (ACA) Programme, which was launched four years ago.

AIRPORT CARBON ACCREDITATION

The scheme was extended to our region in November 2011, and we started this year with seven ACA accredited airports.

We will end it with at least 12, for as of November 1, 2013, another five airports had earned accreditation, demonstrating the region’s growing commitment to reducing aviation’s impact on the environment and sustainable development.

Together with the 77 airports in Europe and one in Africa, these ACA accredited gateways represent around 22% of the global air passenger traffic.

You can read more about Airport Carbon Accreditation in the environment section of this issue.

CUSTOMER SERVICE

ACI introduced ‘PassengersPlus’ this year.

The recently launched initiative provides a platform for the worldwide airport community to celebrate the very best examples of airports putting passengers first via the website www.aci.aero/Paxplus/ PassengersPlus-Initiative I encourage member airports to actively share your positive passenger support stories and let the world be amazed with the extra steps your airports have taken in enhancing the passenger experience.

PLANNING AHEAD

Finally, looking ahead to 2014, I am pleased to say that in February, the Trinity Forum will return to Bangkok, Thailand. We are excited to partner with the Moodie Report and ACI World in organising this leading global airport commercial revenues conference.

In fact, this annual event has been one of the most important and influential airport commercial revenue conferences in the Asia-Pacific region, with a proven track record in bringing inspirational speakers from all over the world to give thoughtprovoking discussions. I look forward to APA seeing you in Bangkok. www.aci-apa.com

VIEWPOINT

SMALL AIRPORTS

While in Guam for the Small and Emerging Airports Seminar in October, I had the opportunity to exchange views with members of our small and emerging airport community.

These airports play a vital role in contributing to the Asia-Pacific region’s 1.94 billion passenger traffic in 2012.

Altogether they handled 240 million passengers, about 12% of the region’s total.

We are fully aware of the importance of the small and emerging airports in the region, and to cater for their specific needs, the Regional Office created the Small and Emerging Airports Network to promote the exchange of best practices and expertise, which I strongly encourage more airports to participate. Indeed, ‘Small Airports’ is the theme of this issue of Asia-Pacific Airports magazine.

7

8

ASIA-PACIFIC AIRPORTS MAGAZINE

NEWS

RECORD BREAKER

PASSENGER FLIGHTS BEGIN AT DWC The new passenger terminal at Dubai World Central–Al Maktoum International Airport (DWC) opened for business on October 27.

Operator, Dubai Airports’ meticulous planning for its opening included a full operational trial involving 1,200 local residents on October 12 to test out the terminal’s facilities and equipment.

Each volunteer played the role of an arriving or departing passenger at the

airport, testing wayfinding signage and other facilities and systems.

The 7mppa capacity terminal will initially handle services operated

by Kuwait’s Jazeera Airways and Hungarian low-cost carrier, Wizz Air, before being joined

by Gulf Air from December 8, 2013.

Once fully built out, DWC will have up to four passenger terminals and five 4.5km parallel runways capable of handling up to 160mppa.

Aviation’s record books need to be updated following the opening of Daocheng Yading Airport in the Tibetan region of China’s south-western Sichuan Province.

The gateway’s mountain top location 4,411 metres above sea level makes it the world’s highest civilian airport.

It takes the title from fellow Tibetan gateway, Qamdo Bangda Airport, located at 4,334m, but might not hold on to the crown for long as construction has already started on Nagqu Dagring Airport, also in Tibet, which will sit at an altitude of 4,436 metres.

Chinese news agency Xinhua states that Daocheng Yading’s opening has cut journey times to Chengdu, the provincial capital, from two days to a little more than one hour.

Xinhua adds that flights to cities such as Shanghai, Guangzhou and Chongqing will begin at a later date.

Designed to handle up to 280,000 passengers per annum, the $260 million gateway is expected to help boost tourism to the nearby Yading Nature Reserve.

FIRST MAJOR MILESTONE FOR NEW MIDFIELD TERMINAL BUILDING The first buttress on the roof structure at Abu Dhabi International Airport’s new $3 billion Midfield Terminal Building (MTB) has been assembled.

His Excellency, Ali Majed Al Mansoori, chairman of Abu Dhabi Airports Company (ADAC), says: “Achieving this milestone is a significant step along the path of developing a world-class airport infrastructure for Abu Dhabi, and its goal of becoming a vital transportation hub for the region.”

APA Issue 3, 2013

The MTB project is set for completion in 2017, and the buttress assembled is one of 18 substructures that will form the base of the MTB steel structure.

The base will hold the nine arches that comprise the building’s roof, which will have an arch span of 180 metres at the widest point.

ADAC’s CEO, Tony Douglas, says: “This important milestone is a clear indicator of Abu Dhabi Airports’ unwavering commitment to delivering the MTB on time and budget.”

ASIA-PACIFIC AIRPORTS MAGAZINE

NEWS

CONSORTIUM AWARDED TAOYUAN T3 CONTRACT Taoyuan International Airport Corporation (TAC), operator of Taiwan’s main gateway, has awarded an international joint venture the consultancy contract for the development of its new Terminal 3.

Comprising Parsons Brinckerhoff, NACO and TY Lin International (TYLIN), the JV will be responsible for overseeing the planning, design and construction management of T3, which will help raise the Taiwan Taoyuan International Airport’s capacity to in excess of 60mppa by 2030.

Terminal 3 will be connected with Terminal 2 and the area in between is to be developed into a multi-purpose building that will contain a ground transportation centre, parking and commercial real estate.

Both terminals at the airport – home to both China Airlines and EVA Air – will be served by the regional light rail system.

TAC’s CEO, Samuel Lin, says: “The new terminal will be good for passengers, the environment and the airlines as it will be user friendly, energy efficient and better meet the operational needs of hub carriers China Airlines and EVA Air and their respective SkyTeam and Star Alliance partners.”

9

WORK BEGINS ON PARALLEL RUNWAY Brisbane Airport has begun the dredging and reclamation work necessary to pave the way for its new 3.3 kilometre parallel runway.

Brisbane Airport Corporation’s chairman, Bill Grant, enthuses: “This is a clear signal that we are absolutely committed to building this critical piece of national infrastructure.”

According to BAC, the runway represents A$1.35 billion of private investment in critical national infrastructure. Its construction by 2020 is expected to create 2,700 jobs and 7,800 new permanent jobs in the Brisbane/Moreton Region by 2035.

The economic benefit of the project will be in the order of A$5 billion per year by 2035.

“In the last 10 years, BAC has spent more than a billion dollars on Brisbane Airport and in the next 10 years, we’ll spend another A$2 billion,” says Grant. “As the primary gateway for the state’s business community and a key enabler and catalyst for economic prosperity for the whole state, this investment is essential.”

The project consists of the new runway, more than 12km of taxiways, navigational aids and other airfield infrastructure – all of which is being developed on a 360 ha greenfield site adjacent to the existing system.

BAC CEO and managing director, Julieanne Alroe, adds: “Brisbane Airport is building for the future and we are proud to be at the forefront – setting the standard for Australian airports.”

HANGAR TIME Aviation facilities at Sri Lanka’s Bandaranaike International Airport have been boosted with the opening of a new Sri Lankan Airlines A320 Hangar. The 30,000 square foot

facility is located close to the airline’s main hangar and features dedicated space to carry out maintenance ‘C’ checks on Airbus A320s. www.aci-apa.com

10

ASIA-PACIFIC AIRPORTS MAGAZINE

ACI ASIA-PACIFC NEWS

Regional update Vivian Fung rounds up the latest news from across the Asia-Pacific region.

O

ver 120 delegates and a programme dedicated to the challenges and opportunities facing the region’s smallest gateways helped make the recent 9th ACI Asia-Pacific Small and Emerging Airports Seminar in Guam a huge success.

Organised by ACI Asia-Pacific and hosted

by AB Won Pat International Airport Authority in partnership with Pohnpei Port Authority, the event attracted a number of high-profile speakers that included ACI World’s economics & programme development director, Dr Rafael Echevarne; and Miguel Southwell, aviation deputy general manager at the world’s busiest airport, Hartsfield-Jackson Atlanta.

Others in the spotlight included Pedro Martinez, deputy executive manager of AB Won Pat International Airport Authority; Vinoop Goel, IATA’s Asia-Pacific head of airport passenger and cargo services; and Ivo Favotto, general manager duty free for LS travel retail Pacific.

Topics covered during the lively two day event ranged from ‘Boosting tourism through destination marketing’, ‘Enhancing the passenger experience through improved technology’ and ‘Harnessing the power of social and digital media’ to ‘Managing wildlife’.

As its name suggests, the Small and Emerging Airports Seminar is a dedicated APA Issue 3, 2013

event to address the common interests and concerns of small and emerging airports in the Asia-Pacific region.

In welcoming the delegates, Patti Chau, regional director of ACI Asia-Pacific noted: “Small and emerging airports play a vital role in contributing to the Asia-Pacific region’s 1.94 billion passenger traffic in 2012.

“Altogether the small airports handled 240 million passengers, about 12% of the region’s total traffic. We are fully aware of the importance of the small and emerging airports in the region and to cater for their specific needs, we created the Small and Emerging Airports Network to promote the exchange of best practices and expertise.”

Charles Ada II, executive manager of AB Won Pat International Airport, spelt out the importance of the gateway to the island nation in his key note speech.

“It is the island’s only commercial airport, and has emerged as the economic engine of Guam’s economy and the principal airport serving the Micronesian islands.

“As the largest capital improvement project ever done on Guam, the airport must now evolve with the industry using best practices to encourage an unencumbered business climate and capture reciprocal effects for our island and Micronesia.”

2014

February 26-28 The Trinity Forum Bangkok, Thailand

2014

March 12-14 ACI Airport Economics & Finance Conference & Exhibition London, UK

2014

November 3-5 Airport Exchange Paris, France

2014

May 26-28 ACI Asia-Pacific/ World Annual General Assembly Seoul, Korea

ACI ASIA-PACIFIC BOARD PRESIDENT Tan Sri Bashir Ahmad Abdul Majid* (Malaysia Airports Holdings Berhad, Malaysia)

FIRST VICE PRESIDENT Zhiyi Dong* (Beijing Capital International Airport Co Ltd, China)

SECOND VICE PRESIDENTS V P Agrawal* (Airports Authority Of India, India)

IMMEDIATE PAST PRESIDENT HE Ghanem Al-Hajri* (Sharjah Airport Authority, UAE)

REGIONAL BOARD DIRECTORS Keiichi Ando (New Kansai International Airport Co, Ltd, Japan) Rodolfo Echeverria (Airport International Group, Jordan)

Kosaburo Morinaka* (Narita Int’l Airport Corp, Japan)

Paul Griffiths (Dubai Airports, UAE)

SECRETARY-TREASURER

Saud AR Hashem# (General Authority Of Civil Aviation, Saudi Arabia)

Dennis Chant* (Queensland Airports Limited, Australia)

Stanley Hui (Airport Authority Hong Kong, China)

Chang-Soo Jung (Incheon International Airport Corporation, Korea)

Kerrie Mather* (Sydney Airport Corporation Limited, Australia)

Seok Ki Kim (Korean Airports Coporation, Korea)

Emmanuel Menanteau (Cambodia Airports, Cambodia)

Seow Hiang Lee* (Changi Airport Group (Singapore) Pte Ltd, Singapore) Derun Li (Shanghai Airport Authority, China)

PS Nair (Delhi International Airport (P) Limited, India) Prasanna J Wickramasuriya (Airport & Aviation Services (Sri Lanka) Ltd, Sri Lanka)

Suning Liu (CAM-Macau Int’l Airport Co, Ltd, Macau, China) Laurensius Manurung (Pt (Persero) Angkasa Pura II, Indonesia)

REGIONAL BOARD DIRECTOR (WBP)

Greg Fordham (Airbiz Pedro Roy Martinez (AB Won Aviation Strategies Pty Ltd., Pat Int’l Airport Authority, Australia) Guam) * WGB member # Regional Advisor on WGB

The ACI Asia-Pacific region represents 97 members operating 526 airports in 43 countries and territories. www.aci-apa.com

11

ACI ASIA-PACIFC NEWS

EVENTS

ASIA-PACIFIC AIRPORTS MAGAZINE

12

ASIA-PACIFIC AIRPORTS MAGAZINE

TRAFFIC TRENDS

TRAFFIC TRENDS Year-to-date Asia-Pacific airports recorded double-digit growth in August 2013 according to the latest traffic figures.

B

Kong (HKG); and Jakarta (CGK), the latter seeing passenger throughput soar by 16%.

Dubai (DXB) – which is set to overtake Heathrow as the world’s busiest international airport in 2014 – reported a 23% rise in international traffic.

Other airports that recorded doubledigit growth in passenger traffic included Kuala Lumpur (+28.3%); Delhi (+20.1%) and Mumbai (+22.4%).

The top five airports with the highest cargo throughput in August 2013 were Hong Kong (HKG), Shanghai Pudong (PVG), Seoul Incheon (ICN), Dubai (DXB) and Tokyo Narita (NRT), although cargo continues to largely stagnate.

oosted by the summer holiday traffic, both international and domestic passenger numbers enjoyed a significant increase in August, rising by of 10% in Asia-Pacific and 18.5% in the Middle East on the corresponding month a year ago.

Year-to-date passenger traffic from January to August 2013 showed an increase of 6.5% and 11.5% in Asia-Pacific and the Middle East respectively, comparing to the same period last year.

The top five busiest airports in the month of August 2013 were Beijing (PEK); Tokyo Haneda (HND); Dubai (DXB); Hong

Summary of Asia-Pacific region traffic results (% change) August 2013 Over August 2012

Passengers International passengers Domestic passengers Total passengers

Freight

AsiaPacific

Middle East

12-month rolling year

Jan to Aug 2013 Over Jan to Aug 2012 AsiaPacific

Middle East

AsiaPacific

Middle East

10.2

18.6

8.1

11.9

7.2

11.7

9.9

-

5.4

-

3.6

-

10.0

18.5

6.5

11.5

5.1

11.2

AsiaPacific

Middle East

AsiaPacific

Middle East

AsiaPacific

Middle East

International freight

0.0

1.3

(1.4)

6.3

(0.5)

5.2

Domestic freight

2.1

-

1.9

-

1.8

-

Total freight

0.5

1.3

(0.7)

6.3

0.0

5.2

APA Issue 3, 2013

ASIA-PACIFIC AIRPORTS MAGAZINE

TRAFFIC TRENDS

Looking ahead ACI projects a 6.8% increase in Asia-Pacific passenger traffic for the period 2013 to 2017.

F

rebound, are expected to drive strong medium-term traffic growth across the region.

In general, growth will continue to be led

by China but it is important to recognise that, although their traffic base is small, countries such as Indonesia, Vietnam and others will also make significant contributions.

or many years the region’s traffic growth has largely been driven by government policies and low-cost development – which have fostered competition and, thereby, lowered fares and stimulated demand – and a growing middle class with the financial means to fly. These factors, coupled with a global economic

Asia-Pacific to experience steady growth in passenger traffic over the next five years

%

Medium-term passenger forecast for Asia-Pacific – 2012-2017 Estimates (millions)

YOY

2013

2014

2015

2016 2017

20162017

1,709.7

8.0%

6.3%

7.0%

7.2%

6.9% 6.8%

6.8%

South Asia

144.8

-0.5%

3.0%

6.1%

6.8%

6.5% 6.8%

5.8%

Southeast Asia

348.8

9.5%

9.8%

8.9%

8.6%

7.9% 7.8%

8.5%

Northeast Asia

1,053.3

9.3%

6.3%

6.9%

7.2%

7.0% 6.8%

6.8%

159.9

4.2%

3.4%

4.3%

4.4%

4.3% 4.2%

4.1%

Asia-Pacific

South Pacific

13

This forecast was prepared by TFAS (Traffic Forecast Advisory Services). A partnership between ACI and DKMA, TFAS provides airport specific traffic forecasts for the purpose of infrastructure development, investments and business planning. Recent projects include traffic forecasts for airports in Australia and New Zealand. Visit www.dkma.com for more information.

APA

www.aci-apa.com

14

ASIA-PACIFIC AIRPORTS MAGAZINE

AIRPORT REPORT: DOHA

MAKING WAVES

Doha’s new wave-design inspired Hamad International Airport will become one of the world’s most high-tech airports, writes Joe Bates.

D

oha’s new Hamad International Airport must certainly be impressive, because it has already been described as ‘dazzling’, ‘stunning’ and ‘game-changing’ and all this even before it has opened for business!

One thing for certain is that when it does open, it will transform air travel in Qatar as the new gateway will be one of the best equipped, environmentally friendly and high-tech airports on the planet.

Indeed, such is the upgrade from the existing Doha International Airport, that national flag carrier, Qatar Airways, and Qatar’s Civil Aviation Authority (QCAA) have stated that the new $15.5 billion gateway will usher in a new chapter in the country’s aviation history.

His Excellency Abdulaziz Al Noaimi, chairman of the New Doha International Airport (NDIA) Steering Committee, describes the gateway’s imminent opening as a “a proud moment for aviation in the State of Qatar”.

APA Issue 3, 2013

“In the 1950s, we created history by building runways – a milestone that forever transformed the way people travelled across the Gulf region and provided a window to the world for our country. Nearly six decades later, the State of Qatar will mark yet another milestone with the opening of a brand new airport,” says Al Noaimi.

“A new workplace and stunning architectural masterpiece will enhance the skyline of Doha providing new surroundings for airport employees and the travelling public from around the world.

“This state-of-the-art airport will create new benchmarks in passenger travel and convenience. It is the fulfillment of our Father Emir’s vision to establish a world-class gateway to the world, one that will support the country’s booming growth and be on par with global developments and demands.”

Located on a 30 square kilometre site just five kilometres from downtown Doha, Hamad International Airport (HIA) will initially boast a single 600,000sqm terminal building and two

ASIA-PACIFIC AIRPORTS MAGAZINE

15

AIRPORT REPORT: DOHA

runways – including one of the world’s longest at 4,850 metres, which between them, ensure that it will be equipped to handle 30mppa.

The three-storey terminal building designed by HOK – which will eventually have up to five concourses – will be equipped with a huge central plaza, 41 gates, an impressive 28,000sqm of duty free and concessions space (retail and F&B outlets), and its own museum.

The terminal’s design emphasises Qatari hospitality and will give visitors a spectacular and lasting impression of the country, says HOK president Bill Hellmuth, AIA. “The airport is an important investment by the government of Qatar in the country’s infrastructure and economy,” claims Hellmuth. “Our design responds to their desire to create an iconic, world-class airport that will be a gateway to Qatar and the preferred travel hub for the Middle East.”

According to Hellmuth, the signature 18-metre canopy overhang of the terminal’s undulating roof creates a grand entrance and provides significant solar shading to the most exposed portions of the façade.

“The glazed facades also provide great views of the airfield and adjacent Arabian Gulf,” adds Hellmuth.

To help ensure that passengers enjoy fast, efficient flight connections, Hellmuth notes that HOK’s design team used computer simulations to model passenger flows and create the most efficient circulation and processing systems.

In conjunction with Lea+Elliott, HOK also designed a 700-metre-long internal automated people mover system, which is accessible on the second level of Concourse C. The APM links the terminal’s north and south sides and, according to the airport, is the only airport rail system in the world that is completely inside a concourse.

“Lea+Elliott has played a key role through all phases of this project as it relates to the APM System and its interfaces with the building,” says the firm’s project manager Gregory Love.

“Until now, we could only imagine how the APM system would look integral with the building. Now, we see the beautiful masterpiece and the clear result of a vision, hard work and dedication.” www.aci-apa.com

16

ASIA-PACIFIC AIRPORTS MAGAZINE

AIRPORT REPORT: DOHA

AIRPORT CITY

HIA Airport City is described as a 10 square kilometre development where 200,000 people will live and work, linking the new Hamad International Airport with the city of Doha.

The project’s 30-year master plan, drafted

by OMA on behalf of the NDIA Steering Committee, is based on the creation of four circular districts along a spine parallel to the new airport’s runways.

Office buildings, businesses, logistics parks, hotels and apartments are expected to be among the first facilities built in Phase I, with most completed in time for 2022 football World Cup, hosted by Qatar.

OMA has vowed to create a “strong visual identity” for each district to give them their own distinct identities.

In addition to the main passenger terminal, upon opening, the gateway will have 20 remote stands, an Emiri Terminal, 2,100sqm central mosque, cargo facilities, maintenance hangars, three utility plants, a 29-hectare lagoon that reinforces the visual and physical connection to the sea, and car parking for 3,450 vehicles.

Water droplets were the inspiration for the design of the mosque, which is described as resembling a glass shell with a gently domed roof. It has a 35-metre high minaret and can accommodate up to 500 worshippers.

When fully operational, the airport will be able to accommodate 30 million passengers per annum.

Bernardo Gogna, project director of the NDIA Steering Committee, believes that the airport will set the benchmark for others to follow.

Speaking to Qatar Today, earlier this year, he said: “The sense of space, with the sunlight streaming in through the beautiful skylights, the signage that is functional without being conspicuous, and the latest available technology will take that passenger experience far beyond what is normally expected at an airport.

“The wave-like structure of the terminal’s roof reflects the airport’s waterside location.

APA Issue 3, 2013

The Business District will centre on a major new transport hub linking with greater Doha; the Aviation Campus will accommodate office headquarters and educational facilities for aviation authorities; the Logistics District will provide cargo and warehousing facilities; and the Residential District, adjacent to the new Doha Bay Marina, will accommodate future employees.

A ‘green spine’ connects the districts, echoing their individual identities as it runs north-south. The landscaping scheme is a new public space for Doha that will be used by residents and tourists.

A network of public spaces, gardens and plazas will stretch across the site, surrounded by a ‘desert park’.

The wave is especially prominent in the departure terminal, replicating the notion of departure, of the movement of people from one destination to another, something that is a constant in an airport. The movement of the roof also follows with the movement of the passenger.

“The retail space is also artfully designed.

But the fact that there is a delicate balance between all these facilities without being overly ambitious on any one of these features is what makes HIA a benchmark in airport design.”

According to Al Noaimi, Hamad International Airport will become one of the world’s most technologically advanced airports, purpose built to serve the latest advancements in aviation and passenger needs of the 21st century.

Qatar Airways CEO, Akbar Al Baker, notes: “It is an historic time for the State of Qatar, Qatar Airways and the country’s young aviation industry.

“This will be a world-class facility that promises to propel our nation further on the international stage. These are exciting times for our aviation industry and the people of Qatar, so let us relish APA the moment.”

18

ASIA-PACIFIC AIRPORTS MAGAZINE

AIRPORT REPORT: MELBOURNE

Southern star A new terminal is just one major development that will be springing up at Melbourne Tullamarine over the next two years, CEO, Chris Woodruff, tells Lucy Siebert.

M

elbourne Tullamarine Airport’s boss stares intently at the aerial map of the airfield that hangs on the wall of a meeting room at the gateway’s corporate offices.

He shakes his head, sweeps his hand across the image and jokingly says: “There’s too much green stuff on this picture. I want to see more of it concreted over.”

While managing director and CEO, Chris Woodruff, jests about the airport’s future expansion, there will, indeed, soon be more concrete appearing on the map, with owner Australia Pacific Airports Corporation investing around A$2 billion in new developments at Australia’s second busiest gateway over the next two years.

This follows a busy 2013 that has seen the airport CEO tick a number of major accomplishments off his ‘to do’ list.

“I was particularly pleased we got a number of our long-term plans agreed with our regulators and customers,” he enthuses.

“We are now looking at the next big phase of our terminal capacity expansion – that is a brand new domestic terminal connected to our existing terminal, massive landside infrastructure upgrades and significant upgrades in our airside capacity.

“Plus, we’ve successfully been out to the market and raised the finance that is necessary to fund the next few years of the

APA Issue 3, 2013

programme, and, we have announced Jetstar as the anchor tenant in our new domestic terminal.

“That is only part of the story. We are also undertaking significant upgrades to our international terminal at the same time, as well as significant upgrades to our road network and airfield.”

The huge investment being made in the airport has been prompted by the growth of its city, Melbourne, and the state of Victoria. Australia is also in the enviable position of having avoided many of the effects of the global financial crisis and has benefited from its proximity to the booming economies of Asia, in particular China, as well as growth in its multi-billion dollar resource industry.

The state of Victoria is seeing strong population growth, with Melbourne tipped to become Australia’s biggest city by 2037.

As the city’s main gateway, Melbourne Tullamarine handled nearly 30 million passengers in the past year, up 6% year-onyear, and recorded international passenger growth of around 5% to 7.1 million.

Its latest forecasts suggest 60 million passengers will make their way through the airport’s terminals by 2030.

“If we had flat passenger numbers we wouldn’t be doing any of this [infrastructure development], but we see growth and we see it continuing,” says Woodruff.

ASIA-PACIFIC AIRPORTS MAGAZINE

19

AIRPORT REPORT: MELBOURNE

AIRPORT REPORT: DOHA

www.aci-apa.com

20

ASIA-PACIFIC AIRPORTS MAGAZINE

AIRPORT REPORT: MELBOURNE TERMINAL 4

Work has already begun on the airfield ahead of the start of construction on the new domestic Terminal 4, a key component of the airport’s Southern Precinct Project (SPP).

Low-cost carrier, Jetstar, is set to become the anchor tenant in the new terminal, which is due to open in July 2015, but the facility will be anything but no-frills, says the airport boss.

“It might house low-cost airlines but it is not a low-cost terminal. Its look and feel will be typically Melbourne in its colour schemes and its architectural features,” reveals Woodruff.

“It will also have a lot of the usual smart technology – things like common-use bag drop – and it will have purpose designed retail.”

The 200,000sqm domestic terminal has been designed to integrate with the existing three terminals and to maintain the gateway’s ‘all under one roof concept’. Woodruff says this was critical to allow for future expansion.

“We had to carefully consider how the existing three terminals would ultimately expand. We had toyed around with the idea of doing a single level terminal but the footprint that it was going to require was just immense. And, I always shy away from single APA Issue 3, 2013

level – I think there are too many conflicts with baggage and passengers – I always prefer to do a dual level structure,” he says.

TRANSPORT WOES

The Economist Intelligence Unit Survey has ranked Melbourne the most liveable city in the world for the past three years, but the clogged Tullamarine Freeway, the main roadway to the airport, is certainly not one of the city’s features that helped boost it to the top of the coveted list.

Woodruff acknowledges traffic on the roads around the airport is a major challenge, and has called on the state government to prioritise a rail link from the airport into the city. This is a long-term solution though, with no clear timeline in place, so the airport has sought to address the bottlenecks on the freeway by running the successful SkyBus shuttle bus from the central business district.

Now a new ground transportation hub is also planned to ease congestion.

“We do have a very congested Tullamarine Freeway and we have to ensure that people can get in and out of the new terminal,” states Woodruff. “We are building

ASIA-PACIFIC AIRPORTS MAGAZINE

INTERNATIONAL AMBITIONS

The focus is naturally on the new terminal and the ground transportation hub, but there is also significant investment going into the airport’s international terminal.

Woodruff explains: “We are doing a massive arrivals expansion to give our control agencies more space and our customers a better experience. We are also about to kick off work on a major departures expansion to give us more transit capability.”

He adds the airport will have to “pull the trigger” on new piers in order to provide gating solutions for its international airlines.

“We have virtually finished the planning with those,” he notes.

THE CHINA FACTOR

In the past year, traffic from China has grown by a healthy 14.3% to cement its status as Melbourne’s fastest growing market.

While the airport has been gearing up for the Chinese market for a number of years through its ‘China Ready’ programme, it has now entered the next ‘China Friendly’ phase.

“It was blindingly obvious to me when I joined the airport that the growth was going to come from several key Asian markets – China being one of them, but we didn’t understand our Chinese customer,” says Woodruff.

“You are not going to do a good job if you keep annoying your customers because you don’t understand them culturally, so we had to go on a journey of discovery, and we had a lot of help doing that.”

The China Ready programme saw the airport working with organisations from across the airport including government agencies, airlines and retailers to become better prepared to welcome Chinese passengers.

“The trick now is to move to China Friendly,” he says.

This includes language and cultural training for employees across the airport – from frontline staff all the way through to senior management – as well as updating wayfinding and announcements in Mandarin and ensuring retailers are geared up to best serve Chinese passengers.

“We have too many souvenirs and gifts, and are not really getting the luxury brands, which is what the Chinese customers crave – that will be the next phase,” says Woodruff.

FUTURE RUNWAYS

With Melbourne having such a focus on increased air lift to Asian economies, and China in particular, more aircraft movements are inevitable, which naturally leads to a conversation around new runways.

Tullamarine currently has 200,000 aircraft movements per year and Woodruff believes that will inevitably need to grow in the future.

“We’ve been consulting with our communities for a long time about where and when we are going to build another runway. Late last year we told all our communities that we would be developing an east-west runway and the likely timing would be around 2020,” he says.

He notes that project will be subject to a series of new approvals, but believes the airport will be in a position to start getting some plans in place for the new runway within the next year.

Woodruff admits: “It will take a few years to get the plans through and then it’s a couple of years to build. We’d like to get all of the approvals in place by 2017, however, if we see growth accelerate, we can pull the trigger on this sooner. Similarly, if we don’t see an acceleration in growth, we can just delay it a bit.”

If traffic growth continues along its current projections, an additional runway should prove to be just the next logical step in Woodruff’s concreting dream for APA Melbourne Tullamarine. www.aci-apa.com

AIRPORT REPORT: MELBOURNE

a multi-level structure opposite the terminal, which will be a ground transport hub for buses, taxis and cars.

“We are on track to start building the terminal and the multi-level structure in October, for the July 1, 2015 opening.”

21

22

ASIA-PACIFIC AIRPORTS MAGAZINE

SPECIAL REPORT: SMALL AIRPORTS

It’s a small world

PS Nair, CEO corporate, GMR Airports and immediate past chairman of ACI Asia-Pacific’s Small & Emerging Airports Network (SEAN), reflects on the importance of the region’s smaller gateways.

I

t was a laudable initiative on the part of ACI to set up the Small Airports Network (SAN) in 2011 to help, assist and promote the wellbeing and growth of the Asia-Pacific region’s smaller airports.

Recognising that the smaller airports operate in a distinctly different environment than their bigger counterparts, ACI decided that SAN would promote the exchange and sharing of best practices and expertise among member airports.

By definition, ACI Asia-Pacific categorised airports handling annual passenger traffic of less than 5mppa as a small airport.

If the current double-digit growth in air traffic across Asia-Pacific and the Middle

APA Issue 3, 2013

East is to continue for the foreseeable future, many of the ‘small airports’ in the region are also ’emerging airports’ with tremendous growth potential. After all, the mega airports of today were once ‘small airports’.

It was for this reason that our Small Airports Network (SAN) was rightly renamed as the Small & Emerging Airports Network (SEAN) by ACI Asia-Pacific last year.

SUCCESSES

Notable successes include the creation of an email group to facilitate communication among SEAN members (san@aci-asiapac.aero), and the adoption of a draft action plan and SAN

ASIA-PACIFIC AIRPORTS MAGAZINE

CHALLENGES

The challenges facing smaller airports are, for the most part, vastly different to those faced by larger gateways.

Indeed, many small airports face a struggle to survive financially because they owe their existence to their social importance to local communities rather than their economic success, and with some handling just one or two flights per day, the scope for stimulating non-aeronautical revenues is limited.

This means that countries need a well structured civil aviation policy framework to support their smaller airports, and clearly spell out the criteria for issuing new airport licenses as a pre-requisite to addressing this serious challenge.

A common challenge faced by small airports is the need to attract more airlines to

develop their route networks. Independent of the aggressive marketing efforts needed to be successful – unless an Open Sky policy is in place, which is seldom the case – it is important to have a stated bilateral policy (that is evolved in consultation with the stakeholders) that encourages airlines to serve small airports as a ‘spoke’ for hub airports.

GOVERNMENT SUPPORT

Whatever the situation, government support and drive for establishing connectivity between smaller regional airports and hub airports at metro cities is key to the sustainable growth of smaller and emerging airports.

Generally, if there is a well structured civil aviation policy in place, regional airlines can be actively encouraged to establish such vital connectivity.

Yet another other challenge faced by many a small airports is the struggle to meet the fixed cost of meeting the regulatory requirements such as safety and security and the recurring operating and maintenance costs. This can lead to a battle for survival.

If the airport is set up purely on commercial principles, in many cases closing it down would make better business sense. However, if it has been commissioned for social reasons (linking remote communities, for example), governments would do well to create a mechanism for subsidising any shortfalls in revenue through the profits of other airports under its control.

VOLATILE MARKETS

Airports can respond quickly to a volatile market by reducing frequencies or even closing down unviable routes. Airports do not have such flexibility when it comes to cutting costs.

As a result, continuous innovation is the key to the sustainability of airports, and small airports are no exception. Whether it is through combining tourism promotion schemes with the airport’s development, taking advantage of state incentives to airlines or promoting a unique asset, being open and APA flexible to change is vital. www.aci-apa.com

SPECIAL REPORT: SMALL AIRPORTS

Process Flow Chart based on feedback and discussed with SAN torchbearers.

SAN also successfully held a Small Airports Network Workshop ahead of ACI Asia-Pacific’s Regional Assembly, Conference & Exhibition in Singapore in May, 2012, which was attended by around 100 delegates from different countries.

Indeed, its two business sessions: ‘Survival & sustainability in times of turbulence – ever increasing need to attract air service’ and ‘Building the community – employment generation in small airports, impact on the local economy’; provided key insights into challenges and opportunities faced by smaller airports.

Similarly, SAN’s Small Airports Seminar held in Hyderabad, India (November 7–10, 2012) was a major success. Attended by a record 140 plus delegates, the seminar’s theme of ‘Re-engineering Airport Economics’ was most apt and the cherry-picked speakers, that included numerous airport CEOs and leading industry figures, did a splendid job and made for a unique event.

In alignment with its objectives, an online forum (www.aci-asiapac.aero/forum/) has also been launched by SEAN in April 2013 for sharing best practices with other network members.

23

24

ASIA-PACIFIC AIRPORTS MAGAZINE

SPECIAL REPORT: SMALL AIRPORTS

PACIFIC POWER PLAYER

The little island of Guam has big tourism and aviation ambitions, reports Peta Tomlinson.

F

or its diminutive size, Guam packs a mighty punch. This Pacific Island territory of the United States is, at its extremities, only eight miles wide, and 32 miles long.

Yet here the visitor experience ranges from designer-brand shopping, to pristine ocean play; from rugged jungle trekking, to world-class spa indulgence – and, all within a few hours’ flight of key Asian cities.

No wonder its airport plays such a vital role in the island nation’s development.

Indeed, over the past three decades, Guam’s Antonio B (AB) Won Pat International Airport has been on an extraordinary growth trajectory.

Passenger arrivals have been rising steadily to reach 1.5 million in 2012 – 940% greater than the island’s population of only 159,500.

The airport’s importance has led to more than $500 million being invested on enhancing its facilities, without debt, over the past 10 years. It has also attracted about $39 million of private developer investment in aviation-related activities.

But perhaps the most impressive number is in the airport’s economic contribution: APA Issue 3, 2013

directly and indirectly, Guam Airport infuses $1.7 billion annually – accounting for 60% of the island’s total GDP. According to the latest economic impact report, the airport directly contributes close to $300 million to the local economy and $1.1 billion indirectly through visitor spending.

“Guam is a unique place – and so is its airport,” says Pedro Martinez, deputy executive manager, AB Won Pat International Airport Authority.

“The large number of visitors is Guam’s largest economic opportunity. As the only civilian airport on the island, we are definitely capitalising on what this opportunity represents.”

Therein lies a dilemma. Guam is actually proving to be “too popular”, with more tourists than hotels can accommodate. Last year, over 200,000 visitors were turned away, due to the lack of available rooms.

The airport has capacity, but faces challenges of its own – such as “getting the airlines to operate out of the peak periods,” says Martinez.

Even simply processing such vast numbers of travellers – 90% of whom

ASIA-PACIFIC AIRPORTS MAGAZINE

25

SPECIAL REPORT: SMALL AIRPORTS

are foreign nationals – in itself requires logistical precision, especially given that, as a US territory, Guam must conform to the US Department of Homeland Security’s exhaustive security, customs, border protection and immigration regulations.

All of this requires personnel and equipment, taking up precious floor space and putting further pressure on the busy check-in and departure areas.

Just as measures are being taken to address the hotel shortfall (with 1,200 rooms under construction or planned by 2018) Guam Airport, too, is looking to the future by investing heavily in its own development.

Since 1998, more than $175 million has been invested in airport infrastructure improvements which include extensions to both the primary and secondary runways (from 10,000 to 12,000 linear feet, and 8,000 to 10,000 linear feet respectively); a 10,000 feet parallel taxiway; and, major improvements to utility infrastructure in all airport facilities and ground areas.

Facilities and security fencing have been strengthened against typhoons and earthquakes, and energy efficiencies have

been achieved for terminal air conditioning and lighting.

Other improvements have included construction and operation of an independent airport facility-wide water system, and the development of a 1,420-acre Airport Business Park.

“In addition to the $175 million investment the airport made to the facilities, private developers have also invested about $39 million in cargo, express package, consolidated freight, and support facilities,” says Martinez.

“Recently, the airport has also increased its non-aviation revenue streams with the awarding of a new retail merchandise concession that increases minimum annual guaranteed (MAG) revenue from $4.5 million to $15 million annually.

In addition to increased MAG rent, the concessionaire, Lotte Duty Free, has also committed to a $23 million investment to the retail spaces and surrounding areas to improve visitor experience.

Parking lot enhancements, a rental car facility, and other supporting business opportunities are also being looked into,” he adds. www.aci-apa.com

26

ASIA-PACIFIC AIRPORTS MAGAZINE

SPECIAL REPORT: SMALL AIRPORTS Future investments are also planned to improve security, safety and the overall passenger experience. These will include an arrivals corridor, in-line baggage screening, expanded passenger screening, common-use check-in and an aesthetic terminal makeover.

A vibrant retail layout, with major improvements to the food court, restrooms, smoking lounge and a new kids’ playroom, are proposed.

Route development is also on the agenda.

Currently, 10 airlines service Guam, providing 247 weekly frequencies connecting to 20 destinations. Management is pursuing air service development “that makes sense to us and the prospective airlines,” says Martinez.

He notes: “The eligibility to enter the United States is important. So we are looking at new origins and increased frequencies to Japan, Korea, and Taiwan, APA Issue 3, 2013

which are all eligible countries in the US Visa Waiver Program.

“We are looking to capitalise on Guam as a link from Australia to Japan and Honolulu. Likewise, we look for airlines which have the rights and freedom to service these routes.”

Potential is also seen for expanding the Guam-Commonwealth of the Northern Mariana Islands (CNMI) visa waiver programme. Russia was included in the programme in 2011, allowing a visitor stay of up to 45 days. As a result, Starflyer launched a direct service to Guam from Kitakyushu in August 2013, and Russian carrier Vladivostok Air plans to begin a direct service from Vladivostok in November 2013.

But the biggest prize could be if Chinese visitors become eligible for this programme, which Guam is pushing for.

ASIA-PACIFIC AIRPORTS MAGAZINE

and manufacturers sending their goods to the US west coast.

“Our effort to establish the Guam International Airport as a Regional Center for the US Immigrant Investor Visa Programme (EB-5) is also exciting,” enthuses Martinez.

“This is an investor visa category that a foreign investor can participate in as long as they establish a new commercial enterprise, and meet minimum investment and full time job creation requirements.

“We believe that Guam Airport offers this unique opportunity and will be able to attract investment under this programme.”

All of these projects are in the works, “and in varying stages of progress,” he says.

The grand vision incorporates property development with third party investment, and further aeronautical and airport-related businesses for job creation using skilled labour. “We are only just starting,” comments Martinez.

As the island moves forward, the airport authority strives to “sustainably develop our aviation industry, protect and respect our island’s resources, and all the while being aware of enhancing our role as a leading airport in the region, and a US airport in the heart of Asia,” says Martinez.

“Our vision is to set the standard in excellence as a safe, secure, world-class, premier aviation hub in the region.”

Who dares doubt that this is achievable?

Only a few years ago, the terminal expansion was dubbed a “white elephant” by some island leaders, who believed it was too ambitious and would never reach capacity. Today it is “bursting at the seams with commercial tenants and passengers,” says Martinez.

Diminutive Guam’s tiny airport has always had faith in itself. As Martinez says: “We’ve developed our air transport industry from a simple Quonset hut to a $500 million airport consisting of a terminal and surrounding business and industrial parks, which collectively represent 60% of Guam’s economy. If we could do that then, we can do APA anything now.” www.aci-apa.com

SPECIAL REPORT: SMALL AIRPORTS

Japan has always been Guam’s bread and butter tourism market, but its population regression means the country is looking to new and growing markets such as South Korea, Russia, Taiwan and China.

“A US visa waiver to Guam for China would be a game changer,” says Martinez.

With more Chinese travelling than ever before, and now with some of the highest spending power, “we just need one-quarter of 1% stopping in Guam, for the economic benefits to be enormous”.

Airlines, too, can benefit from adding Guam to their routes, he believes.

“We offer lower rates and high utility for aircraft that would otherwise sit overnight in higher priced airports such as Tokyo Narita (due to the curfew). Safety is optimal on our 10,000 and 12,000 feet runways with ILS precision approach. We also provide airline ground support for fuel, handling and catering.”

Using Guam as a link to further destinations westward to the US is another advantage for airlines. Guam can also act as a tech stop and crew rest for major airlines, and develop fixed based operations for private plane servicing in Asia, he says. For narrowbody aircraft, the island is within five hours of all North East Asian countries.

Apart from route development and investment in airport infrastructure, the airport has other plans for its role in Guam.

“As the economic driver of the island, Guam Airport has emerged as a hub for the Micronesian region. We plan to expand this role by encouraging a regional approach for travel through Guam to Micronesia, with a multi-destination option on trend with the desire for environmental tourism, which is available throughout the region. All unique, and all famous in one area or another.

“We are also working to develop and expand the emerging cruise ship industry in Guam, with a possibility to travel here by air, and board cruise ships here.”

Air cargo is another area of opportunity, given Guam’s proximity to Asian factories

27

28

ASIA-PACIFIC AIRPORTS MAGAZINE

SPECIAL REPORT: SMALL AIRPORTS

FIVE POINT PLAN

Adopting a co-ordinated revenue growth strategy should be a priority for small and emerging airports looking to optimise their business models, writes Airbiz’s Iain Munro.

R

evenue is the life blood of an airport business, underpinning its ability to grow and to improve infrastructure and services.

Airports with highly organised business development and air service development strategies are more likely to be successful, reaping rewards in aeronautical revenue and associated flow-through to non-aeronautical revenue.

In addition to providing successful aeronautical facilities and services, a fundamental element of success for an airport is to maximise value through identifying and implementing retail, commercial and property developments, with a resultant diversification of revenue streams from aeronautical through to non-aeronautical.

The five key elements of a co-ordinated revenue growth strategy for an airport are: • Master planning • Air service development strategy • Pricing strategy • Retail strategy • Commercial property strategy APA Issue 3, 2013

MASTER PLANNING

An airport business requires a long-term view and a commitment to put resources towards planning and protecting for the future.

One of an airport’s greatest strengths is the availability and strategic value of airportzoned land for core aeronautical operations, directly and indirectly related activities, and future control for expansion.

So, the first key element of a revenue growth strategy is to have an up-to-date airport master plan that identifies and protects land areas for airport development in a prioritised manner and maintains flexibility with real options for future decisions.

AIR SERVICE DEVELOPMENT STRATEGY

An airport’s catchment or local population has high expectations of its airport, including more services direct to new destinations, greater frequencies and better aircraft.

Having a clear strategy to grow passenger numbers through air service development will deliver an improved airport service to the local community and the revenue arising from

Tiny Vava’u Airport in Tonga.

ASIA-PACIFIC AIRPORTS MAGAZINE

29

SPECIAL REPORT: SMALL AIRPORTS

all possible revenue streams will help fund necessary infrastructure investment.

A superior strategy will help deliver revenue from all three of the typical airport revenue sources: • Increased aeronautical revenue is a direct benefit of an air service development strategy’s execution • I ncreased non-aeronautical revenue is a flow through, with more passengers passing through the airport, spending more money as a result of the air service development strategy, and • Increased property revenue is also a flow through benefit, with the value and profile of the airport’s property rising as a result of the increased passengers, traffic, and on-airport activity attracting increased interest in airport-based property.

Two examples of how to grow revenues out of an air services development strategy are revenue growth through volume growth; and, revenue growth through yield growth – yield (or quality of revenue) to an airport business as opposed to airline fare yield.

Volume growth – low-cost carrier traffic is a key opportunity at many airports.

Although the core of LCC business models are to service point to point connections between market and destination airports, increasingly, they are now adding hub

connectivity to the business model – which can potentially deliver incremental passenger traffic from beyond markets.

Yield growth – consolidation and new, or evolving, alliance relationships can potentially be leveraged to attract additional FSC capacity from an existing carrier or a new FSC entrant.

Existing LCC point-to-point traffic would benefit through additional passenger feed from a FSC with a strong association with the LCC.

PRICING STRATEGY

As part of a business-wide revenue growth strategy, pricing should be used as a strategic tool aimed at encouraging throughput and growing revenues.

Airports often have one or two major customers (airlines) with a considerable amount of countervailing power.

The airlines (usually LCCs) often have choices as to where they choose to fly to and from. We are observing in some markets what might even be called ‘competition’ between airports for airline business.

Airports may, therefore, need to massage the theoretical prices to make them more attractive to the carriers they want to do business with. They might do this by: • Adopting a lower cost of capital to recognise aspects of contractual arrangements that reduce risk www.aci-apa.com

30

ASIA-PACIFIC AIRPORTS MAGAZINE

SPECIAL REPORT: SMALL AIRPORTS

Tribal leaders greet passengers at Bakalalan Airport in Sarawak.

•

Reducing or optimising capital and operating expense allocations • Taking into account the extra revenues a new entrant airline will generate for the airport from non-aeronautical – commercial – sources These changes may result in lower aeronautical charges for the carrier but higher overall revenues for the airport when all benefits (aeronautical and commercial) are taken into account.

RETAIL STRATEGY

Although a retail programme is unique to each airport there are elements in the development of a programme that are common – these include: • Identifying the airport users that can be offered retail opportunities • Managing the flow of airport users in the terminal • Managing the dwell of the airport users The size and scale of any retail programme is primarily dependent on the number of passengers flowing through the terminal.

Passenger numbers also have a direct influence on the types of retail that can be commercially sustained.

The easiest retail concept for a small airport to sustain is food and beverage (F&B), which appeals to a high proportion of airport users and can, therefore, attract sufficient customers to generate viable sales.

For small international airports duty free is also sustainable with small passenger numbers due to a combination of the traditional consumer appeal of duty APA Issue 3, 2013

free and the associated high transaction values achieved.

As the volume of airport users grow, the type of retail that is commercially sustainable also evolves, expanding both in terms of number of outlets within a concept (more F&B, for instance) as well as concept types.

For a small airport, understanding and managing the flow and dwell of their users within their terminal building as well as identifying the trigger points of when to expand their retail programme, can create a significant, ongoing commercial benefit.

COMMERCIAL PROPERTY STRATEGY

A significant opportunity for revenue diversification derives from commercial opportunities that are possible as a result of scale and degree of connectivity of air services available at an airport and the volumes of people and goods moving on, off and through the airport.

The range of opportunities for an airport is vast, and possibly includes hotels and motels; convention and exhibition centres; air freight forwarders and consolidators; logistics, warehousing and distribution; and, business parks and offices, particularly for companies whose people and customers utilise air travel extensively.

Each of the five key elements discussed will play an important role in a successful revenue growth strategy.

However, linkages and dependencies exist that, if nurtured and utilised to the maximum, drive individual revenue growth and thus adds to the bottom line of a successful airport. APA

32

ASIA-PACIFIC AIRPORTS MAGAZINE

ROUTE DEVELOPMENT

Looking to Asia New Vancouver Airport Authority president & CEO, Craig Richmond, sets his eyes on Asia and Latin America to build YVR as a global hub.

S

ince Vancouver Airport Authority began operating Vancouver International Airport (YVR) some 20 years ago, YVR has evolved into a key connection point between North America and Asia.

Today, our airport offers more flights to China – 75 in the summer peak – than any other airport in North America. That’s 12 more flights than Los Angeles and almost twice as many flights as Toronto.

We also boast the most Chinese airlines and destinations. We’re proud of these connections, which together with scheduled service to other Asian destinations including Tokyo, Seoul, Taipei and Manila, make YVR a truly global gateway.

For the fourth consecutive year, YVR was named Best Airport in North America based on customers surveyed by the prestigious Skytrax Awards.

What a great endorsement for our geographic advantage and industry-leading

APA Issue 3, 2013

systems and facilities. But it’s not enough to celebrate past successes. As I settle into the CEO role, I’m determined to maintain an entrepreneurial edge that keeps our business growing.

It’s that spirit that will drive the next phase of growth for the Asia-Pacific gateway, too. Like any good business, we are going to take our business to markets where there is room to grow, which, in the next decade, will be those in Asia and Latin America.

In addition to serving cities like Beijing, Shanghai and Hong Kong, our airline partners offer services to Guangzhou, Chengdu and Shenyang. But we want to build connectivity with more secondary markets in China, cities that have from three to nine million people.

British Columbia (BC) may not have the market size to support a simple back-and-forth service between Vancouver and cities such as Xiamen, Wuhan and Hangzhou. But, if Vancouver serves as

ASIA-PACIFIC AIRPORTS MAGAZINE

join China’s middle class. And what do middle class people like to do? Travel.

Our research also shows that 49% of the people we interviewed in China would like to visit Vancouver in the next two years. If we get just a quarter of 1% of those people to travel through YVR, we will see our passenger volume grow by the millions.

We’ve taken a number of steps to make the travel experience through YVR one that is appealing to passengers. And we continue to invest. We are making connections faster, simpler and a lot less intimidating with a combination of new facilities and more feet on the floor.

That’s friendly smiles and helping hands offered by more than 450 volunteer Green Coats and customer care staff who collectively speak 43 different languages.

Our care of every passenger extends to all aspects of the passenger experience, from curb to cabin.

For example, we offer 24-hour information counters and dynamic directional signage, which can scroll through English, French, Simplified Chinese, Korean,

www.aci-apa.com

ROUTE DEVELOPMENT

an intermediary point between China and cities in the US and South America, that combination of markets makes a service viable.

From any point in Latin America, flying through YVR is the shortest route to Asia.

It means that cherries grown in BC’s interior can reach customers in Guangzhou; a local college can court international students; a Canadian family can travel directly to China’s interior or to Southern Germany to visit relatives; and, a Vancouver resident can join the 24,000 people working at YVR and get a good-paying job.

We look to Dubai and Abu Dhabi International Airports as exemplary hub airports whose leaders decided some 30 years ago to become mega hubs, connecting passengers to and through their airports from Europe, Asia and beyond.

Airports in Asia also do the gateway well, particularly because they can connect international travellers through to their major domestic networks. We see YVR as the next hub airport.

In the next seven years, between 2013 and 2020, another 750 million people will

33

34

ASIA-PACIFIC AIRPORTS MAGAZINE

ROUTE DEVELOPMENT Punjabi or Japanese, depending on which airlines are at the gates.

We are also building new facilities worth several hundred million dollars to help future passengers enjoy expedited connections from international to domestic flights.

This includes new baggage systems and dedicated transfer facilities. Our goal is to move people and baggage through the entire process in less than 60 minutes.

And, we continue to work closely with the government agencies to introduce programmes that expedite passenger processes.

Vancouver Airport Authority is a leader in technological innovation and pioneered the automated border customs process. We were the first airport in Canada to launch Automated Border Clearance with Canada Border Services Agency, and earlier this year we were the first airport in the world to implement Automated Passport Control with the US Customs and Border Protection.

Both of these programmes improve efficiency of the border clearance process for all travellers regardless of whether they use the automated system, by dramatically shortening wait times in customs facilities.

APA Issue 3, 2013

The airport authority also continues to work closely with the Canadian government to expand the Transit Without Visa programme.

Currently, Transit Without Visa is available to passengers flying from China through YVR to US destinations, but we want to improve access to this programme and expand it so our Asia-Pacific customers can travel to all of the Americas through YVR without a visa.

These programmes, along with Canada’s Approved Destination Status with China and our award-winning services, amenities and unique sense of place, create an incredible travel experience.

Our variety of 160 shops, services and restaurants reflect the interests of our customers. In response to customer feedback, we opened a new 1,450 squaremetre World Duty Free store in our International Terminal in 2012. This beautiful store is the largest walk-through duty free operation in North America, offering high-end spirits, an ice wine tasting bar and an extensive range of premium beauty brands such as Crème de la Mer, La Prarie and Chanel.

ASIA-PACIFIC AIRPORTS MAGAZINE

ROUTE DEVELOPMENT

Our efforts focus on building an airport which airlines can connect to and through to other markets, and where travellers of all kinds benefit from more options for travel, trade and jobs

Vancouver Airport is also proud to offer the only duty free Hermès store in Canada.

Opening in 2015, we are offering passengers with layovers or those who select YVR as their end destination the opportunity to shop at our new Designer Outlet Centre.

This high-end luxury centre will be a short, five-minute ride from the terminal on the Canada Line, the rapid transit line that connects YVR with Richmond and downtown Vancouver.

The airport business gets more and more competitive every year. It’s no longer a given that YVR is the number one gateway connecting the Americas to the Asia-Pacific.

Now, we count airports including Calgary and Chicago as competitors, thanks to more efficient aircraft, more direct routes and a growing population of global travellers.

More than 40 years ago, aircraft technology meant that planes had to stop in Gander, Newfoundland or Shannon, Ireland, to refuel. That’s no longer the case.

So what advantages does YVR offer? For one, our network of some 90 (and counting) non-stop destinations means that

35

international travellers can reach half of the global economy through onward connections once they arrive at YVR. We also have the space to accommodate the larger, more efficient aircraft of the future. We’ve got the large gates, double bridges and runway capacity to handle them easily. It also helps that YVR ranked first in Skytrax’ Best Airports in North America awards for the fourth year running, thanks to a passenger-friendly facility, award-winning customer service and some of the best shopping, dining and ambience of any global airport.

Our efforts focus on building an airport which airlines can connect to and through to other markets, and where travellers of all kinds benefit from more options for travel, trade and jobs.

Leveraging Vancouver’s geographic advantage between the two continents, coupled with our simplified passenger processes, BC’s elimination of the aviation fuel tax, all help strengthen YVR’s future as the gateway between Asia-Pacific and the Americas.

APA

www.aci-apa.com

36

ASIA-PACIFIC AIRPORTS MAGAZINE

ENVIRONMENT NEWS

ENVIRO REPORT

Joe Bates takes a closer look at a handful of pioneering environmental initiatives instigated by Asia-Pacific airports, ACI and the aviation industry.

AVIATION’S GREEN COMMITMENT ACI and its aviation industry partners are hailing the agreement of an ICAO roadmap charting the way forward for tackling aviation’s climate change impact as a significant development for the planet.

After two weeks of tense negotiations at ICAO’s Montréal headquarters in late September/early October – following many years of discussions – delegates representing 191 countries have agreed to develop a roadmap forward for aviation.

“This is clearly an historic resolution, showing the leadership of both developed and developing country governments meeting at ICAO in driving to the first comprehensive agreement on climate change for any global sector,” said Paul Steele, executive director of the industry-wide Air Transport Action Group (ATAG).

“It represents significant progress. The aviation industry has been advocating for such a scheme since we developed the first global industry targets five years ago.

We now have agreement on a global scheme and a timeline and, the building blocks to deliver it.

“Importantly, the resolution also highlights the significance of continued work on the so-called ‘basket of measures’, recognising that a market-based measure is just one of a suite of important tools needed to reduce aviation emissions.

“New technology, more efficient operations and infrastructure improvements also need to APA Issue 3, 2013

Aviation’s key players signed an industry declaration confirming their commitment to sustainable development at the Aviation & Environment Summit in 2012.

be pursued – things the industry has been doing for many years.”

The resolution commits governments to develop a global market-based measure for aviation emissions from 2020, to be decided at the next ICAO assembly, scheduled for 2016.

The next three years will be spent on technical discussions as states work on the design elements of such a scheme, including standards for the monitoring, reporting and verification of emissions and the type of scheme to be implemented.

ACI director general, Angela Gittens, noted: “Attaining sound environmental stewardship is at the heart of our business.”

ASIA-PACIFIC AIRPORTS MAGAZINE

37

ENVIRONMENT NEWS

GREEN DREAM Hong Kong International Airport’s first sustainability report confirms its vision to become the world’s greenest airport.

The Airport Authority Hong Kong (AAHK) initiated report, Sustaining Our Capacity – Our Blueprint for Shared Growth, states: “In May 2012, AAHK and its business partners pledged to make HKIA the world’s greenest airport. The key to realising this objective is the implementation of a rigorous rolling Three-year Environmental Plan.

“The plan contains more than 120 initiatives covering carbon emissions, air quality, water management, energy efficiency, biodiversity, green procurement, and waste management. It also sets benchmarks and measurable targets to reduce HKIA’s environmental footprint and includes mechanisms for monitoring and reporting progress.

“In addition, we require our tenants and franchisees to produce, implement and update their own environmental management plans, which are reviewed periodically by AAHK.” The report outlines how AAHK’s core sustainability values and ‘green’ initiatives continue to influence the management of Hong Kong International Airport (HKIA).

It provides a review of the authority’s performance and initiatives in three key areas:

safety and security; economy; and, quality of life for the period from April 1, 2012, to March 31, 2013 – the same period as AAHK’s 2012/13 financial report.

And, it outlines future steps forward, including the intention to improve safety of airport operations by reducing injuries to passengers and airport staff and installing additional screening facilities.

While work on the Midfield and Western aprons will continue, the authority plans to complete its Environmental Impact Assessment for the airport’s potential three-runway system within the next year.

Dr Marvin Cheung Kin-tung, chairman of AAHK, said: “AAHK has long incorporated sustainability considerations into its everyday operations and in planning for future development. This report will enable us to explain to our staff, business partners and other stakeholders our long-standing environmental and social commitments, as well as our progress this year on a range of initiatives. It is also the first step in developing a more structured sustainability strategy for AAHK.” The report was prepared with reference to the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines and the Environmental, Social and Governance Reporting Guide issued by The Stock Exchange of Hong Kong Limited. www.aci-apa.com

38

ASIA-PACIFIC AIRPORTS MAGAZINE

ENVIRONMENT NEWS

DOUBLE DELIGHT FOR AUCKLAND The announcement of the 2013 Dow Jones Sustainability Index (DJSI World) has seen Auckland International Airport feature in the index for the second year in a row.

Seen as the most reputable global index for the socially responsible investor, the DJSI World saw only three NZX50 companies make the 2013 index, with the gateway being the only New Zealand company to feature for the second time.

Judy Nicholl, Auckland International Airport’s general manager aeronautical operations, is delighted with the gateway’s inclusion as it confirms the company is not only a leader in the sustainability field within New Zealand but on the global stage as well.

“We are continuously focused within the business on improving our sustainability

performance and our dedication and hard work is reflected in this result,” enthuses Nicholl.

“What is particularly rewarding for us is that the detailed feedback we received from Dow Jones indicates that we are above the global average for our ‘Transportation and Transportation Infrastructure’ sector, across all three environmental, social and governance areas.”

Launched in 1999, the DJSI was the first global index to track the financial performance of the leading sustainabilitydriven companies worldwide.

Last year Auckland International Airport was the first New Zealand company to make the index.

SUSTAINABLE DESIGN Dubai International Airport’s new Concourse D will feature environmentally-friendly measures such as 192 rooftop solar panels to cut its carbon footprint.

Green initiatives at the new concourse extend from the use of renewable energy to construction with locally sourced and recycled building materials.

A 450sqm array of 192 solar panels on the roof is set to meet 1.8% of the concourse’s power needs while reflecting light to help keep the building cool.

Dubai Airports’ CEO, Paul Griffiths, said environmental initiatives for Concourse D support the industry’s target of carbon-neutral growth by 2020.

APA Issue 3, 2013

“With Concourse D, we are taking another significant step towards providing our passengers with a more sustainable way to travel.”

Insulation will be combined with thermal technology that absorbs heat during the day to radiate it at night. In addition, the building’s overall volume has been reduced to cut cooling demand.

Lighting will be activated by daylight sensors and have low heat intensity.

During construction, DAEP aims to source at least 10% of building materials from within 800km of Dubai International and to use 20% recycled material.

At least half of wood-based material, by cost, will be certified by Forest Stewardship Council criteria.

ASIA-PACIFIC AIRPORTS MAGAZINE

The airport industry has released an update on the voluntary climate change initiative, Airport Carbon Accreditation.

Launched four years ago, the independent, institutionally endorsed programme is backed

by ICAO, UNEP and the EU’s Climate Action commissioner, Connie Hedegaard, and Transport commissioner, Siim Kallas.

It has also recently achieved a place in the Top 10 shortlist of the EU’s ‘World You Like’ contest, with final results due to be announced in November.

Olivier Jankovec, director general, ACI Europe; Patti Chau, regional director, ACI Asia-Pacific; and Ali Tounsi, regional director, ACI Africa, made a joint statement on the update.

“As the face of air transport on the ground, airports are mindful of the need to actively address their carbon footprints.

“In the four years since the launch of Airport Carbon Accreditation, the programme has really helped frame and support the collective work that airports are doing to make their operations more carbon efficient and their business more sustainable.”

The latest annual report showed that year four of the programme reduced more than 170,000 tonnes of CO2 – enough to power 71,000 households for a year.

With the support of ACI World, Airport Carbon Accreditation has progressed substantially since its launch.

In November 2011, the programme expanded to the Asia-Pacific region, followed by a move to the African region in June 2013.

Airports can address their CO2 emissions in various ways, including better insulation and energy efficiency; switching to green energy sources; investing in hybrid, electric or gas-powered service vehicles; implementing green landing processes, and more.

The programme requires voluntary application by each airport on an annual basis.

Twelve airports in seven countries across the Asia-Pacific region are currently

ENVIRONMENT NEWS

AIRPORT CARBON ACCREDITATION – PROGRESS REPORT

39

certified at one of the four levels of accreditation: mapping; reduction; optimisation; and neutrality.

Abu Dhabi; Adelaide, Bangkok Suvarnabhumi; Mumbai–Chhatrapati Shivaji; Hong Kong; Parafield; Queen Alia (Amman); Bengaluru; Delhi–Indira Gandhi; Hyderabad–Rajiv Gandhi; Singapore Changi; and Sunshine Coast make up the dynamic dozen.

Bangkok Suvarnabhumi became the first Asia-Pacific gateway to achieve Level 1 ‘Mapping’ status earlier this year and has since been joined by Chhatrapati Shivaji and Abu Dhabi, while Hong Kong International Airport was the first Asia-Pacific airport to be Airport Carbon Accredited at Level 3 ‘Optimisation’. It has recently been joined by Delhi, Hyderabad and Bengaluru airports.

To achieve Level 3, it is required to reduce the airport’s CO2 emissions and engage with third party airport stakeholders to reduce more CO2 emissions that the airport can guide and influence.

Patti Chau, regional director of ACI Asia-Pacific, says: “I wish to thank the airports in the region for their commitment in contributing to environmental sustainability.”

www.aci-apa.com

54 40

ASIA-PACIFIC AIRPORTS MAGAZINE

FINAL WORD POINTS OF VIEW

Points of view Asia-Pacific Airports magazine meets Malcolm Johns, deputy chair of Tourism New Zealand.

What do you view as the high and low lights of your time as deputy chair of Tourism New Zealand?

The high was, without doubt, the opportunity to spend six years promoting something I am passionate about to the rest of the world. It’s an incredibly humbling and motivating experience, it’s the closest I’ll ever get to playing for my country, although I still hold fading hope of being selected for the All Blacks [New Zealand’s rugby team]!

The thing I am most proud of is the China trade development strategy, or Preferred Kiwi Program (PKP), which has played a key role in changing outcomes for New Zealand from China. The then GM China for Tourism New Zealand and I sketched the concept out while sitting in the lobby of the Swisshotel in Beijing. The team has gone on and executed and iterated it to great effect and benefit for New Zealand.

The Christchurch earthquake was, without doubt, the most acutely challenging item that arose during my time. It’s like having one of your key team members injured, you have to rally around in support, but the team also has to keep going while that player rehabilitates to full strength.

What impact has the 2011 Christchurch earthquake had on tourism to New Zealand?

There is no question that the quake has had a material impact on the people of APA Issue 3 1 2013

Christchurch and you have to admire and respect their spirit throughout. It’s impossible not to be moved by that.

There have been three major impacts on tourism to New Zealand since 2007. Firstly, there was the GFC, which drove the Pacific pivot in New Zealand’s visitor arrivals mix.

Our traditional markets came under pressure at the same time new markets in Asia began to grow rapidly. Secondly, we had the Christchurch quakes, which had both a psychological and structural impact on visitor arrivals and, also how our visitors flowed through the country. Thirdly, the Japan tsunami had a material short term impact on arrivals from Japan, one of New Zealand’s most valuable markets.

The upside for New Zealand is that Christchurch is on its way to being one of the coolest small cities on the Pacific Rim. This is going to see off the impacts of the quakes and provide a critical building block for lifting the value of New Zealand’s visitor economy over the next decade.

Why have you decided to leave your current position as chief executive of InterCity Group to become the next boss of Christchurch International Airport?

Journeys energise me and my journey with InterCity has been brilliant! Busses, by nature, tend not to ignite people’s imaginations; however, we built a leadership culture across the organisation

ASIA-PACIFIC AIRPORTS MAGAZINE

MALCOLM JOHNS

AGE: JOB TITLE:

42 I ncoming chief executive of Christchurch International Airport (currently deputy chair of Tourism New Zealand and chief executive of InterCity Group)

NATIONALITY: Passionate New Zealander!

T T CX FFA AC O B BOX

BEST KNOWN FOR: LITTLE KNOWN FACT:

aking InterCity Group one M of New Zealand’s critical and most complex pieces of transport infrastructure

ascinated by national anthems, especially rugby playing F nations. Favourite (other than New Zealand’s) is South Africa’s.

Have learnt most of them, but still struggling with Japan, Wales and Argentina’s. Work in progress!

which was focused around being relevant to our customers and a solution to our key stakeholders. Despite the GFC, the quakes, tsunamis and rising fuel costs, the culture we built drove passenger numbers up by 80%, we became a trusted brand for our customers with very high satisfaction levels and we delivered a material increase in shareholder value.

Christchurch’s journey energises me and the attraction towards it was strong. The past few years have been challenging for its people, however the next 5 to 10 years will provide huge opportunities and Christchurch will play a critical role in lifting New Zealand’s outcomes. It will be one of New Zealand’s and the Pacific’s coolest small cities!

What do you view as your key challenges and opportunities at Christchurch International Airport?

New Zealand’s current goal is to lift exports from 30% of GDP to 40% by 2025. The visitor economy (tourism) will play a vital role in achieving this. International visitors whose entry point to the country is

Christchurch, generate outcomes for New Zealand which are above average for length of stay, spend and regional dispersal. If New Zealand is to achieve this goal, the country will need Christchurch and the South Island to play a critical role and make a material contribution to national outcomes.

For me, the virtuous growth cycle looks like this: more planes filling an industry which has an unrelenting focus on filling more planes. Christchurch International Airport will be one of the key leadership stakeholders in this process and that energises me greatly.

What are airports in general looking for from governments and tourism authorities?

New Zealand is an island nation on the Pacific Rim, with 99% of our international visitors arriving by plane. Growth hinges heavily on growing air connectivity. In 2008/09 the world’s economic heartbeat relocated to Asia and is driving an explosion in middle class consumers who, once they have ticked off a roof over their head and protein in their stomach, will start looking www.aci-apa.com

FINAL WORD POINTS OF VIEW

NAME:

55 41

54 42

ASIA-PACIFIC AIRPORTS MAGAZINE

FINAL WORD POINTS OF VIEW

For me, the virtuous growth cycle looks like this: more planes filling an industry which has an unrelenting focus on filling more planes.

Christchurch International Airport will be one of the key leadership stakeholders in this process and that energises me greatly

for travel experiences. Currently they aren’t as aware as we would like that they want to visit New Zealand.

In New Zealand, we have to be unrelenting in our focus on kicking down barriers to visitation and air connectivity, such as visa processes and air services agreements.

Overlaying this, we must present a destination which is compellingly attractive to visit. The partnership between government and private enterprise must underpin the virtuous growth cycle of an industry which has an unrelenting focus on filling more planes.

Does aviation face a losing battle in its bid to prove to the public that it can be environmentally friendly?

Pretty much all parts of modern human existence are powered by a fuel which was created over millions of years of transferring carbon from the atmosphere to the geosphere.

Global human activity today results in this exchange reversing itself. For me, it’s about using advances in technology to honestly pursue activity which continually seeks to minimise your impact on the environment.

Christchurch International Airport has a very good record around this, as does aviation.

Other than Christchurch, what is your favourite airport and why?

Airports are the interface between where you’ve been and where you’re going, so for me, their goal is to get the Oscar for APA Issue 3 2013

the best supporting actor for you, their market of one!

Christchurch’s new integrated terminal is second to none and I love it! Outside of this, I have had many memorable airport encounters.

I think Beijing is a visually stunning airport.

I loved my private airport experience in Guangzhou, courtesy of China Southern Airlines. I was in Bangkok last year, and while the airport experience was great, New Zealand was upside down on their world map. I have always found the staff at San Francisco Airport very friendly and courteous and it’s my favourite entry point to the USA.

Are you a fan of social networking and do you tweet?

I have enormous respect for the power of social media, at InterCity we have a very proactive social media strategy. Social media turbo-charges your outcomes from the moments of truth I mentioned previously, in both directions! I am an active Facebook user and have re-connected with many people I met throughout my life, who now live all over the world and I had lost contact with. It’s incredible how communities are no longer geographically restricted and can now form around common interest rather than common location. The power of this is going to make our children’s lives (and expectations) very different to their parents.

Personally I don’t tweet, mainly because I can’t get my head around why people I don’t know APA would have any interest in what I am up to.

Presented in Partnership by:

www.aci-economics.com

ACI World, ACI Europe, ACI Asia-Pacific

$&, 7+ $118$/ $,53257

&21)(5(1&( (;+,%,7,21

Join us in London at the world’s premiere airport economics forum

March 12 - 14, 2014 GRANGE TOWER BRIDGE HOTEL

LONDON

For Delegate information contact: Lauren Murtagh: +44 (0) 208 831 7512 lauren@airportconference.com

For Programme information contact: Alison Grinter: +44 (0) 208 831 7505 alison@airportconference.com

For Sponsorship and Exhibition opportunities contact:

Andrew Hazell: +44 (0) 208 831 7518 andrewh@airportconference.com Kalpesh Vadher: +44 (0) 208 831 7510 kalpash@airportconference.com

Gala Dinner Sponsor

Platinum Sponsor

Airport Hosts

Gold Sponsors

Coffee Break Sponosor D

L

U

S

R

U

W

V

Z

R

U

O

G

Z

L

G

H

Media Partners

;OL THNHaPUL VM [OL (PYWVY[Z *V\UJPS 0U[LYUH[PVUHS

44

ASIA-PACIFIC AIRPORTS MAGAZINE

INDUSTRY FOCUS: ASEAN OPEN SKIES

All together now ASEAN states are scheduled to open their skies in 2015 – but key stumbling blocks remain, writes Simon Lewis.

A

long time in the making, a move to open the skies of the economically dynamic region of South East Asia is set to be enacted in 2015 and the 10-nation Association of South East Asian Nations (ASEAN) is outwardly confident its Open Skies policy is on track.

However, there are suggestions that national interests are threatening to compromise a liberalisation that airlines hope would allow them to dramatically expand their route networks across the region.

APA Issue 3, 2013

First proposed as early as 1995, the regional deal for aviation, dubbed the ASEAN Open Skies policy, is part of a package of regional policies designed to create the so-called ASEAN Economic Community in 2015.

The bloc includes wealthy and open economies like Singapore alongside developing states such as Myanmar, which is emerging from oppressive military rule.

The start of a unified economic community – which aims to open up the movement of goods and skilled labour

Bangkok Suvarnabhumi International Airport.

INFRASTRUCTURE WORRIES

One stumbling block for the Philippines and, crucially, Indonesia, is infrastructure, with concerns that both nations’ large networks of airports, many of which have not been recently upgraded, will be overwhelmed by liberalisation.

“If the agreements are implemented, the skies are open to every [ASEAN] airline to fly in,” says Tran Dong Phuong. “With the expected surge in aviation demand, the current infrastructure is not yet sufficient, so some governments would rather wait until they have developed infrastructure or increased capacity.

“But they are trying, they are investing in new airports or upgrading the current airports, so I think they will be able to

implement in all countries by 2015,” he adds.

According to local media reports, the Philippines, which has 10 international gateways, has plans to expand the capacity of Manila’s Ninoy Aquino International Airport and increase the capacity of Clark International Airport from 2.5mppa to more than four million.

It is also looking for investment partners to build a new $240 million terminal at Mactan-Cebu and fund PPP projects at Puerto Princesa ($110 million) as well as the new airports in Bicol ($120 million), Laguindingan ($200 million) and Bohol ($175 million) on Panglao Island.

Indonesia has 29 international airports, but its Transport Ministry has said it only plans for five key airports – Jakarta, Surabaya, Medan, Denpasar and Makassar – to be opened up to airlines from other ASEAN states in 2015.

According to a report released this year by researchers, Batari Saraswati and Hanaoka Shinya at the Tokyo Institute of Technology, Indonesia’s airports, which are all managed by state-owned companies, are already overstretched.

“The government has already fallen behind in providing adequate infrastructures. Sixteen of Indonesia’s 25 largest airports are currently operating above design capacity,” the report says, citing official data.

READY AND WILLING

Outside of Indonesia and the Philippines, there is more readiness.

In a statement, Malaysia Airports, a public company that operates most of the country’s airports, including Kuala Lumpur, said it was “fully supportive” of the efforts to open South East Asia’s skies.

“It augurs well with the company’s aspiration of bringing in more passengers through its airports as liberalisation would provide a less restrictive operating environment for airlines,” the company says. www.aci-apa.com

45

INDUSTRY FOCUS: ASEAN OPEN SKIES

between the countries – was originally envisioned at the start of 2015, but is now slated for the last day of that year.

Indonesia the largest member, with about 40% of the region’s 600 million people, could also prove to be a stumbling block in the scheme, with the country believed to favour a protectionist approach to open skies.

Despite this, within the Jakarta-based ASEAN Secretariat, there is confidence that the new dawn in regional aviation will arrive on schedule.

“We are ahead of the schedule,” insists Tran Dong Phuong, the ASEAN Economic Community Department’s head of the Infrastructure Division.

Tran Dong Phuong says the legal instruments to enact the Open Skies policy have been in place since 2010, and the key parts have been ratified by all nations, except Indonesia and the Philippines. Even if some countries balk, those states that are willing to can go ahead with the plan, he says.

“It doesn’t have to wait until all members states have ratified, but it will come into force for individual members states when that member state ratifies it,” he says.

ASIA-PACIFIC AIRPORTS MAGAZINE

46

ASIA-PACIFIC AIRPORTS MAGAZINE

INDUSTRY FOCUS: ASEAN OPEN SKIES

“In taking cognisance of KLIA’s position as the main gateway to Malaysia, it is imperative that the flow of the traffic is not impeded by restrictive aviation policies thus enabling airlines to fully capitalise on the market potential,” it adds.

Malaysia Airports says it has capacity to handle more airlines operating more routes and is broadly supportive of liberalisation.

“The industry has always been moving towards some form of liberalisation through alternative means such as code shares and revenue sharing. The benefits have been obvious and ASEAN Open Skies is a more formal approach towards such liberalisation,” it says.

PROTECTING FLAG CARRIERS

As well as the burden on infrastructure, some fear that opening up the region’s skies, which has been actively lobbied for by major airlines, may squeeze out smaller or state-owned competitors.

“There have been those concerns,” admits Tran Dong Phuong. “But at the end of the day, member states realise that the benefit brought along by more competition is overwhelming the challenges.”

With plenty of room for growth in South East Asian aviation, the risk of monopolies forming is minimal, he insists, pointing to the region’s unsaturated aviation market and strong economic growth.

Gross domestic product in ASEAN states is expected to continue its trend of healthy growth, with the International Monetary Fund predicting 5.6% GDP growth across the 10 members for 2013.

IHS Global Insight has predicted that the size of the 10 ASEAN states’ economies combined will more than double from $2 trillion to $4.7 trillion by 2020. That growth goes alongside growth in tourism and foreign investment in almost all ASEAN countries.

“With increasing business activity and regional growth, the opportunities are there for everyone, whether they are big or small airlines,” says Tran Dong Phuong.

APA Issue 3, 2013

“You can see that the number of lowcost airlines in ASEAN countries is growing.

Every year there are new low-cost airlines opening in the region,” he adds.

LOW-COST BOOM

According to CAPA Centre For Aviation’s yearbook for the South East Asia region, low-cost carriers are more dominant in some regional countries than anywhere else in the world.

“The four largest domestic markets in South East Asia – Indonesia, Philippines, Malaysia and Thailand – all now have LCC penetration rates exceeding 50%,” it says, predicting that penetration in the Philippines would reach 85% this year.

CAPA adds that while some of the lowcost carriers were approaching saturation on current routes, “market conditions overall remain favourable, and can support rapid growth, driven by the strength of the region’s economy and the continued rapid rise of the middle class.

“The increase in discretionary incomes feeds into the hands of LCCs as a larger portion of the population can afford to fly but generally only on budget airlines,” it adds.

“South East Asian flag carriers are also growing, particularly their budget and regional full-service subsidiaries, albeit at slower rates.”

NOT AN EU CARBON COPY

It is hoped the Open Skies policy will be a boost for regional carriers, but it is not planned to be a complete single aviation market like Europe’s unified skies.

All states, except the Philippines and Indonesia, have signed up to giving third, fourth and fifth freedoms to other member states. However, Indonesia, Laos and Cambodia have also not yet agreed to extend the rights beyond their capital cities.

And, without full agreement on the current modest Open Skies proposal, seventh right freedoms, which allow flying between two other countries without a

Kuala Lumpur International Airport.

ASIA-PACIFIC AIRPORTS MAGAZINE

47

INDUSTRY FOCUS: ASEAN OPEN SKIES

link back home, and the right to fly routes between airports inside a foreign country, are not yet even being considered.

“The ASEAN Open Skies just opens the skies to give the right to an airline from the ASEAN member state, to carry passengers from their own country, to another country in ASEAN, and then from there to a third ASEAN country,” says Tran Dong Phuong.

He explains the ASEAN model was never intended to be a carbon copy of the European Union’s aviation market. This means that ownership rules and other aviation freedoms, like the right for airlines to fly routes between two other countries without originating in its home country, are still off the table.

“The EU is a single airspace, a single aviation market, so they are operating like within one country in the whole EU. Whereas, in ASEAN, we are not up to that stage yet.”

Alan Khee-Jin Tan, professor of aviation law at the National University of Singapore, has also stressed that the most important contrarian nation is Indonesia.

“There is no guarantee that Indonesia will accept the agreements by 2015,” warns Tan. “If it, and the other member states, do accept by 2015, there effectively will be open skies for the region, but this stops at third, fourth and fifth freedom relaxations. So, it is true that there is a chance the project might come into effect by 2015, in this limited way.

“Although there are obviously still benefits to this, Indonesia’s staying out will hamper the project significantly since it is the region’s largest economy and has nearly half the entire population of ASEAN. “So, there will still be a positive overall impact, just that if Indonesia stays out, the impact will be much reduced in significance.” www.aci-apa.com

48

ASIA-PACIFIC AIRPORTS MAGAZINE

INDUSTRY FOCUS: ASEAN OPEN SKIES

Singapore Changi Airport.

SCOPE FOR EXPANSION

Tan said in the long-term it was critical for the region to look at seventh freedom rights.

Such liberalisation would certainly be even more of a sticking point for protectionist-minded policy makers, and would force airlines to compete with carriers from other countries on every transnational route.

But, Tan says, a failure to open up the seventh freedom – what he calls “the true hallmark of a real ‘single’ aviation market” – would hurt regional airlines when it comes to connecting the region to the rest of the world.

“The effect of not having the seventh freedom can be detrimental to ASEAN airlines,” he says.

“This is because, apart from the intraASEAN agreements, ASEAN has adopted an agreement with China that provides unlimited third and fourth freedom access for airlines from both sides.

“The effect is that Chinese carriers will be able to connect any point in China – APA Issue 3, 2013

since China is a unified market – with any point in ASEAN member states that accepts this agreement.”

But Tan says that without the seventh freedom, a Thai carrier would not be able to connect Singapore and Shanghai, and therefore regional airlines would miss out on opportunities to expand.

The ASEAN bloc has had some success in fostering economic ties in the region, preventing conflict and creating some sense of peoples’ being united, despite the many differences that divide states.

As Tan points out, regional co-operation is based on consensus in ASEAN, and the group’s secretariat has little power to strong-arm members into anything. “[The] problem is that we are not like the EU where there is the European Commission which can force member states to adhere to community law,” he says.

With economic integration on its way, this region could become a powerful force APA in aviation, if it sticks together, that is.

HOST

AIRPORT HOST

EXHIBITION ORGANISED BY

SAVE THE DATE

www.aci-waga2014.com Diamond Sponsor

Silver Sponsor

Delegate Bag Sponsor

Lanyard Sponsor

Media Partners

50

ASIA-PACIFIC AIRPORTS MAGAZINE

IT TRENDS

WHAT PASSENGERS WANT

Tom Knierim reflects on the key findings of SITA’s Passenger IT Trends Survey.

T

echnology is playing a bigger and deeper role in people’s everyday lives. So it is no surprise that it is also getting the thumbs up from passengers for making air travel easier.

Today, more than 90% of airline passengers say technology helps them when travelling.

This is one of the findings from the latest SITA Passenger IT Trends Survey, which has been monitoring the travel habits of air passengers at airports around the world for the last eight years.

Passengers travelling through two Asian hubs – Beijing Capital International Airport and Chhatrapati Shivaji International Airport, Mumbai – which between them handled more than 112 million passengers in 2012, were included in this year’s survey.

At a global level, the survey found passengers have come to value the convenience and time saving aspect of technology. Travel tasks such as buying a ticket and check-in have been enthusiastically embraced by time-conscious travellers.

In this year’s survey, 69% of passengers interviewed globally booked their travel through a website and 20% used a kiosk for check-in on the day of travel.

A similar proportion of passengers passing through Beijing were found to book their tickets online on the day of the survey – 63%.

In Mumbai, however, the number was much

APA Issue 3, 2013

lower (35%) with passengers still preferring traditional ways of purchasing flights involving face-to-face contact.

IT’S AN APP WORLD

Many day-to-day tasks are starting to move off the desktop to our mobile phones. The survey suggests our travel behaviour will follow the same path. Driving the change is the rapid adoption of smartphone technology.

Among passengers interviewed for the survey, smartphone penetration has reached 76%, a much higher penetration than among the general population where the global average is 40%.

This opens up the world of mobile apps for travel and with it a new wave of self-service possibilities for passengers.

However, the survey indicates adoption will be gradual and not all mobile innovation will be embraced equally.

Today, passengers place the most value of their mobile on obtaining travel-related information, while going online using a desktop PC remains the preferred choice for completing travel tasks.

This is particularly evident in the booking process, where globally, 88% of passengers interviewed said they would search on mobiles devices, but prefer to purchase via a desktop computer.

ASIA-PACIFIC AIRPORTS MAGAZINE

51

IT TRENDS calendar integration, location sensing, and alert notifications.

All this functionality is of particular value to passengers as they navigate the world’s airports.

SOME PASSENGERS STILL NEED TO BE CONVINCED

Despite the high smartphone penetration among travellers, some passengers do not yet see the advantages mobile services will bring and have yet to make the transition. The overwhelming majority of passengers globally – 78% – cite usability concerns and limitations of the device as the potential reason for not using their mobile for steps in the travel process.

Out of these, the largest number of passengers (31%) lack confidence in the phone working, while others (27%) felt that either the app itself or the travel arrangements were too complicated.

A further 18% of passengers considered that their mobile did not offer any advantage over existing available options.

The results suggest improving usability is going to be critical if passengers are to be convinced about the benefits of mobile services for travel. That means making tasks simpler, faster and more convenient than the traditional channels.

Passengers will need to feel confident that they can use their mobile phone at all points of their journey and throughout the airport.

Today, many mobile apps just copy the website functionality rather than taking advantage of a smartphones unique capabilities, such as

A MOBILE FUTURE?

Usage of mobile phones for travel services such as check-in and booking remains below 5% globally. The low overall adoption figures of mobile services at a global level indicate that today mobile is not the passengers’ first choice channel to perform essential tasks.

However, the numbers are steadily rising and there is strong evidence in the survey that using the mobile phone for some tasks and receiving up-to-date information is something passengers want.

Nevertheless, it is going to take time to build the trust for the mobile to become a critical tool for travel. At the moment, the number one interest in using the mobile phone in travel is to get information, including searching for fares.

There is also major interest in having entertainment during the flight with 85% of passengers interviewed wanting to use their tablets or phones to access games or movies. APA

SURVEY FACTS The 8th annual SITA Passenger IT Trends Survey, conducted in conjunction with ATW, was conducted at six major international airports across the world. They included Abu Dhabi, Beijing Capital and Chhatrapati Shivaji from ACI’s Asia-Pacific region. The others were Hartsfield-Jackson Atlanta, Frankfurt and São Paulo’s Guarulhos International Airport.

www.aci-apa.com

52

ASIA-PACIFIC AIRPORTS MAGAZINE

DESTINATION PROFILE: MYANMAR APA Issue 3, 2013

ASIA-PACIFIC AIRPORTS MAGAZINE

DESTINATION PROFILE: MYANMAR

Changing Times

Myanmar is proving to be Asia’s hottest destination and a raft of new airport and tourism developments are planned, writes Simon Lewis.

A

sia’s latest frontier market is opening up to private involvement in operating and building airports, and airlines are already recognising the huge potential for growth.

In the past two years, Myanmar has begun moving from a hermitic military dictatorship towards what might become a modern democratic nation. As well as tourists wanting to visit the latest destination on the travel map, business travellers are also on the up, with companies seeking to capitalise early on what is seen as a country ripe for investment.

Indeed, the trend means that visitor numbers are outstripping infrastructure development and the pace at which new hotels and guesthouses can be constructed.

With no overland route into Myanmar and long distances between its major cities and attractions, aviation is set to play a key role in the nation’s development in the coming years.

The situation is certainly good news for the country’s 32 airports, which are set to blossom over the next decade as the government looks to private investors to help it transform them into a more modern and efficient network.

53

AIRPORT CONCESSIONS

Today, most of Myanmar’s airports are owned and operated by the state, but recent tenders have changed the landscape and alerted international firms to the potential investment opportunities on offer as the country looks to upgrade its airport system.

Examples of the change afoot include the August 2013 announcements that a Korean consortium had been awarded the contract to build Yangon’s new $1.1 billion Hanthawaddy International Airport and that Pioneer Aerodrome Services, and, a Japanese consortium led by Mitsubishi Corporation had been awarded the respective contracts to operate the existing Yangon and Mandalay airports.

Incheon International Airport Corporation spearheads the Korean consortium awarded preferred bidder status to build and operate Yangon’s new Hanthawaddy International Airport.

The airport will be located in Myanmar’s Bago Region, around 80 kilometres from Yangon, and is expected to boast a capacity of 12mppa when it opens in 2018. www.aci-apa.com

54

ASIA-PACIFIC AIRPORTS MAGAZINE

DESTINATION PROFILE: MYANMAR

Other members of the Korean consortium, which will operate the airport for up to 50 years, include Kumho Industrial, Posco, Halla Engineering & Construction Corp and Lotte Engineering & Construction.

In terms of the existing Yangon International Airport, Pioneer Aerodrome Services, part of the Myanmar and Singapore-based Asia World Group, will continue to operate the gateway, which has already unveiled plans to expand its overstretched capacity from 2.7mppa to 5.5mppa by 2015.

It won the concession in a consortium with China Harbour Engineering Co, Ltd, Singapore’s CPG Consultant Pte, Ltd and Malaysia Airport Consultancy Services Sdn Bhd. Elsewhere, a consortium comprising Mitsubishi, Jalux and Myanmar’s SPA Project Management Ltd was awarded the concession to operate Mandalay International Airport, which is equipped to handle around 3mppa.

Win Swe Tun, deputy director general of the Myanmar Department of Civil Aviation, said involving private operators would help bring in the investment needed to upgrade the country’s aviation infrastructure.

“We plan to develop the international airports in partnership with foreign firms which are capable of investing, operating and maintaining them on a long-term concession basis,” says Tun. “The airport concessionaires will be expected to attract new airlines and expand the route network.”

NAYPYITAW INTERNATIONAL AIRPORT

It is certainly not the first time Myanmar has looked to foreign investors to help it upgrade its aviation infrastructure, as the 2011 opening of Naypyitaw International Airport proved.

For Myanmar’s new capital city gateway was designed by Singapore engineering firm CPG Consultants Pte and, according to Chinese news agency Xinhua, the project involved nearly $200 million in financial aid from the China Export-Import Bank as well as APA Issue 3, 2013

With help from the government of Norway and the Asian Development Bank, Myanmar has launched a $320 million master plan to cater for foreign tourists, which currently number about one million per year, but are growing fast.

the supply of construction equipment from the China Machinery Engineering Corporation and China Harbour Engineering Company.

Located 16 kilometres south of the capital, Naypyitaw is said to be capable of handling up to 3.5 million passengers and 65,000 flights per annum.

Not surprisingly, the international gateways of Naypyitaw, Yangon (the commercial capital) and Mandalay are the jewels in the crown of Myanmar’s airport system.

ASIA-PACIFIC AIRPORTS MAGAZINE

Ownership of flag carrier, Myanmar International Airways, is split between the government and a local bank and its routes remain limited mainly to other South East Asian nations, as well as China, India and Japan.

A number of international carriers who are keen to have early advantage have recently entered the market.

In 2012, Qatar Airways and South Korea’s Asiana began flying to the commercial capital of Yangon.

Asiana flies twice weekly from Seoul, while Qatar operates thrice-weekly from Doha.

Growth in visitors has seen new smaller airlines and low-cost carriers coming into the market, with three regional carriers, Thailand’s Nok Air and Business Air, and Tiger Air of Singapore announcing that they will be joining the 22 international airlines that now fly through Yangon, the country’s biggest airport.

It is hoped even more routes will be set up as the Association of South East Asian Nations’ (ASEAN) Open Skies initiative, expected in 2015, opens the region’s aviation sector.

A flurry of new domestic carriers has emerged as well, as travellers prefer not to endure the long bus journeys and longer train rides that characterise terrestrial travel.

But there have been safety concerns over a lack of oversight on domestic carriers, especially after an Air Bagan flight crash-landed at Heho airport in Shan state in December, killing two and injuring 11 others.

The Department of Civil Aviation’s Tun said the relatively new civilian government was learning from examples of modernisation elsewhere, like the operation of Cambodia’s airports by French infrastructure giant Vinci, which was recently named as the back-up bidder in the tender to operate the Mandalay Airport.

“We have a consultant group and we are learning the other examples including the lesson of the Cambodian case. We understand

the value of the geographical location of Myanmar and good potential of development.”

And Tun believes that private involvement would not stop with concessions to operate the airports.

“We intend to invite bids for aviation related businesses such as capacity building, cargo handling, aircraft catering, refuelling services etc,” says Tun. “Next, we will invite the foreign and domestic private investors to participate in domestic airports.”

TOURISM BOOM

There are reasons to expect a boom in tourist numbers, but, for now, foreigners are still a relatively rare sight even in Myanmar’s major cities, nothing like as omnipresent as in neighbouring Thailand.

But the country has the potential to offer a similar tourism experience, without the over-development and weariness that have overtaken some Thai hotspots.

Coastal regions and tropical archipelagos offer unspoilt beaches, sites like Bagan have ancient religious sites and the cities retain a quantity of colonial architecture that is long-forgotten in most South East Asian capitals.

With help from the government of Norway and the Asian Development Bank, Myanmar has launched a $320 million master plan to cater for foreign tourists, which currently number about one million per year, but are growing fast.

That plan includes projects to increase passenger capacity at the Naypyitaw and Mandalay international airports, and a tourist police service to avoid the regional scourges of child trafficking and sex tourism finding a new home.

Myanmar has already begun moving from a destination for daring independent travellers keen to see behind the curtain, to an attraction for high-end tourists from the West.

UK-based luxury tour operator Cox & Kings resumed tours in the country in October 2010, a month before elections that, while seen as flawed, marked the beginning www.aci-apa.com

DESTINATION PROFILE: MYANMAR

AIRLINES AND ROUTE DEVELOPMENT

55

56

ASIA-PACIFIC AIRPORTS MAGAZINE

DESTINATION PROFILE: MYANMAR of what has proved a tricky, but rapid transition from dictatorship.

Cox & Kings’ spokeswoman, Katie Parsons, says the company’s escorted group tour quickly became the fastest selling among the company’s East Asian tour packages.

“For many people it’s a new destination that is only now opening up to tourism,” she says.

“It’s been popular with backpackers but is only now becoming more accessible to the luxury markets.”

The company uses domestic flights to get visitors around the country, with the most popular destinations being the major cities, temple town Bagan and the trekking territory around Inle Lake.

Parsons says the tour was selling well, but the country was struggling to meet its growing number of tourists.

“It is becoming increasingly difficult to secure block allocation of rooms for tours as the destination becomes more popular.

All of our tours run at maximum capacity,” she says.

These tourism trends are also noted in a report by global consultants McKinsey and Co, which in May estimated that APA Issue 3, 2013

tourism, which contributed an estimated $600 million to Myanmar’s gross domestic product in 2010, could be worth $14.1 billion by 2030, with visitors from other Asian countries increasingly flying in.

Such growth, however, depends on infrastructure improvements, the consultants said.

“To unlock the potential of the [tourism] sector, the government could play an enabling and co-ordinating role,” says the report.

“Among the priorities it could consider are liberalising the transport sector and easing visa entry requirements; ensuring that supported infrastructure such as air water, rail, and road infrastructure is in place to support the expansion of hotels and airports; removing bureaucratic barriers to investment; and put in place national marketing campaigns to attract tourists.”

Myanmar is clearly on the brink of major tourism and aviation growth, but infrastructure challenges will dictate whether the country is able to truly make the most of the many tourism and economic opportunities that are APA out there.

58

ASIA-PACIFIC AIRPORTS MAGAZINE

CONSTRUCTION NEWS

DESIGN & BUILD

Incheon International Airport

S

outh Korea’s busiest airport, Incheon International, has broken ground on its $2.5 billion Terminal 2 which it aims to open in time for 2018 Winter Olympics in Pyeongchang.

Designed by the Heerim-MooyoungGensler-Yungdo consortium and built in two phases, the complex will effectively double the size of the airport’s passenger facilities.

Upon completion of the first phase – foundation work on the new 72-gate terminal started in 2010 – the 384,000sqm complex will raise the airport’s capacity to 62mppa.

According to the design team, it will incorporate advanced sustainable technologies to create an efficient, healthy and comfortable environment.

It will also feature indoor green space with natural daylight, waterfalls, koi ponds, streams, luxury lifestyle centres and boutique shopping.

And, the desire to be user-friendly means that operator, Incheon International Airport Corporation (IIAC), is insisting on average 13 minute journey times from train to gate for business travellers.

The shape of the building was inspired by the Asian Phoenix and materials used throughout the terminal, including signage and graphics, will draw on textures and colours evoking Korean culture.

APA Issue 3, 2013

KEY FACTS Project: New terminal Delivery date: 2018 Key players: Heerim Architects, Mooyoung Architects & Engineers, Gensler, Yungdo Engineers & Consultants

Incorporating photovoltaic panels and skylights, the terminal will also have vertical cores between floors, easing passenger wayfinding and bringing natural light and fresh air into the building.

Other amenities include VIP lounges; a landside shopping district; aircraft observation deck; a transfer hotel; as well as sculpture and exhibition areas.

The T2 project also includes a second air traffic control tower, train station, parking facilities and an airside Intra Airport Transit (IAT).

Keith Thompson, Gensler principal and leader of the firm’s global aviation design practice, commented: “We designed Terminal 2 to make travel at Incheon even more compelling, offering people unprecedented ease and convenience.

“It’s a large international terminal, yet it will be very intuitive to navigate and present unique experiences like the vast interior gardens featuring native Korean foliage. Travellers will see this as a new benchmark for airports.”

Terminal 2 will be expanded to 650,000sqm in the Phase 2 development plan, the timing of which will be determined by traffic demand.

ASIA-PACIFIC AIRPORTS MAGAZINE

59

CONSTRUCTION NEWS

Jakarta-Soekarno Hatta International Airport

J

akarta–Soekarno Hatta International Airport’s new Terminal 3 is being designed to “send a message to the

world” about Indonesia’s evolution.

Operator, Angkasa Pura II, also wants the new 380,000sqm showpiece facility to reflect the country’s technological, political and cultural aspirations.

One thing for certain is that the new 25mppa terminal – primarily being built to accommodate Garuda Indonesia’s fast expanding international and domestic fleet – will be one of the most impressive facilities in the Asia-Pacific region when it opens for business in late 2015.

The $485 million terminal will be constructed by a Wijaya Karya (WIKI)-led consortium that also comprises Waskita Karya, Pembangunan Perumahan; Hyundai Engineering; Jaya Teknik Indonesia; and Indulexco.

Incheon Airport, working in conjunction with local partner Jaya CM, is acting as a project management consultant on T3 and a host of other development projects.

They include the renovation of T1 and T2, expanding the apron and the addition of new cargo facilities and transportation centre. As a result, the consortium has 36 airport specialists and four Korean consultants based in Jakarta.

KEY FACTS Project: New Terminal 3 Delivery date: 2015 Key players: Woodhead, Incheon International Airport Corporation and the Kawapehajaya Indonesia Consortium (WIKA; Waskita Karya; Pembangunan Perumahan; Hyundai Engineering; Jaya Teknik Indonesia; and Indulexco).

Woodhead, the lead designer for the architecture and interiors of the new complex, is confident that the new terminal will be “a model of efficiency and comfort overlaid with the curation of Indonesia’s unique cultural and environmental experiences for passengers.”

It also believes that the distinct design of T3 will create a sense of place that expresses the local and regional identity of Jakarta and Indonesia.

Woodhead states: “In the design of contemporary airports, we need to look deeper when preparing an authentic cultural interpretation for the future that addresses the airport’s civic function.

“The concept for the interiors seeks to integrate artwork and cultural references into the structure and materials. A further expression of cultural diversity unified into one gigantic work of art.”

The new terminal is part of an ongoing $1.24 billion expansion plan by operator Angkasa Pura II. www.aci-apa.com

60

ASIA-PACIFIC AIRPORTS MAGAZINE

WBP NEWS

WORLD BUSINESS PARTNERS

IN THE SPOTLIGHT SHANGHAI PUDONG’S BAGGAGE UPGRADE

ASIA’S LARGEST PAY-IN LOUNGE Plaza Premium Lounge will operate the largest commercial airport lounge in Asia when it opens its new 15,000sq ft facility at Hong Kong International Airport in November 2013.

Located in the West Hall, the company is confident that the facilities, services and ambience offered at the pay-in lounge make it a “one of a kind” that will soon become a firm favourite of both business and leisure travellers.

It will boast its own showers, high-speed Wi-Fi, workstations, VIP room, bakery and noodle and tapas bars as well as customermade furniture and sleek interiors by Hong Kong-based designer, Kinney Chan.

Plaza Premium Management Limited’s founder and CEO, Song Hoi-See, says: “Our company prides itself on creating premium airport services that exceed travellers’ expectations.

“The flagship lounge in Hong Kong International Airport reflects our thorough understanding of travel trends and customer behaviour. Over the last 15 years, we’ve continually explored new improvement opportunities to enhance the traveller’s airport experience.”

The operator is also set to open new lounges in Macau, London Heathrow, Kuala Lumpur’s new terminal, KLIA2 and Sydney, emphasising the company’s bold expansion strategy.

“By 2015, we will add 50 new locations in existing and new airports around the world. We will look to expand in Mainland China, Asia, Middle East, Europe and North America,” says Song.

APA Issue 3, 2013

Vanderlande Industries is to modify and enhance the baggage handling system at Shanghai Pudong International Airport’s Terminal 1.

Operator, Shanghai Airport Authority (SAA), claims the upgrade is necessary to accommodate future growth.

Vanderlande, which supplied the carousels for T1’s existing baggage handling system (BHS) in 1997, expects the new system to go live in 2015.

A total of 44.8 million passengers passed through the gateway last year to cement its status as China’s third largest airport.

Shanghai Airport Authority is the state-owned enterprise directly under the leadership of Shanghai Municipal Government, and operates both Shanghai’s Pudong and Hongqiao airports.

Vanderlande was also the supplier of the BHS for the new terminal at Shanghai Hongqiao International Airport in 2008.

ASIA-PACIFIC AIRPORTS MAGAZINE

PAPUA NEW GUINEA UPGRADES FIRE RESCUE FLEET Oshkosh Airport Products Group has delivered three Oshkosh Striker 4 x 4 aircraft rescue and fire fighting (ARFF) vehicles to New Guinea’s National Airports Corporation, a state aviation enterprise owned by the people of Papua New Guinea.

The Oshkosh Striker ARFF vehicles are on duty at Jacksons International Airport (also know as Port Moresby Airport), the country’s largest and busiest airport.

According to Oshkosh, the Striker 4 x 4 offers advanced safety systems and delivers innovative fire suppression technology, unmatched

chassis performance, and unsurpassed reliability and durability.

The all-wheel drive axle configuration, with Oshkosh TAK-4 all-wheel independent suspension, offers a smooth ride and excellent off-road capabilities.

One of the Papua New Guinea Striker vehicles features a Snozzle high reach extendable turret for faster and more effective fire response.

WBP PROFILES ICM Airport Technics Contact: Duncan Watson, head of global operations Address: 4A/42 Church Avenue, Mascot, NSW, Australia Tel: +61 297009527 Email: duncan.watson@airporttechnics.com

Website: www.icm-airtec.com A leader in self-service bag drop and baggage handling solutions, ICM Airport Technics operates around the world delivering integration of processes, technology and usability in baggage automation systems for airports and airlines with full service support. Our solutions have helped revolutionise baggage drop-off and set industry benchmarks in bag drop transaction times and throughput. The result is reduced operational costs for airports and airlines, and improved passenger experience. ICM Airport Technics is well positioned to provide improved baggage handling solutions for any client.

Shanghai Yingxing Assets Management Co Ltd Contact: Jie Shen Address: 1715, No 5558 (Block A), Chuansha Rd, Shanghai, 201299, China Tel: +86 21 58216520-113 Email: haze_sj@hotmail.com Website: www.y-starmedia.com Shanghai Yingxing is a professional company which specialises in VIP reception, terminal services, operations and consultancy services.

We are an executive member of Shanghai Public Relations Association and the business service provider of Shanghai Expo 2010. Airport terminal building operation and management will be our development focal point in the future. www.aci-apa.com

WBP NEWS

CARGO KING Hong Kong Air Cargo Terminals Limited (Hactl) has been voted ‘Ground Handler of the Year’ at the Payload Asia Awards 2013.

Organised by air cargo industry publication Payload Asia, the annual award recognises air cargo supply chain organisations that have made a positive impact in the industry.

Receiving the award at the ceremony, Hactl chief executive, Mark Whitehead, said: “I am very proud of our 2,500 employees who are committed to providing flexible and professional services to our airline customers.

“Special thanks to all of our customers and business partners who trust us to deliver quality services and those who made an effort to cast a vote.

“In the past 37 years, we have been contributing to the development of Hong Kong International Airport as the world’s largest air cargo hub. We will continue to invest in our facilities, equipment and people, committing to service excellence and supporting Hong Kong.”

61

62

ASIA-PACIFIC AIRPORTS MAGAZINE

SOCIAL MEDIA

Being social Asia-Pacific Airports magazine takes a closer look at social media innovation across the region.

A

sian airports can do more on social media, says guest writer, Shubhodeep Pal, head of operations and innovations at SimpliFlying.

For a region that boasts some of the most modern and well-respected airports in the world, Asian airports are barely managing to keep pace with airports in the US and Europe when it comes to social engagement and marketing.

Despite Asia-Pacific airports winning the top five global awards in ACI’s annual customer satisfaction survey, the latest rankings by Unmetric, a social media benchmarking company and exclusive aviation partner of SimpliFlying, only one of the four – Singapore Changi Airport – is making its presence felt on social media while offering increasingly engaging and shareable experiences for its passengers.

ASIAN PIONEERS

A notable exception is Singapore Changi, which continues to dazzle with an array of well thought out initiatives, a strong social presence and uniquely shareable experiences.

Its unique ‘Social Tree’ installation at the airport stores digital memories of passengers for the foreseeable future; at the same time, it continues to deliver speedy real-time customer via its Twitter account.

Meanwhile, Delhi–Indira Gandhi has implemented a virtual shopping initiative called ‘Scan N Shop’, where passengers can purchase products by simply scanning QR codes on a wall (which are linked to products) on their smartphones.

Further beyond, Brisbane Airport has earned a name for being digitally savvy and recently implemented the popular SMS sharing screens APA Issue 3, 2013

that allow passengers to share goodbye messages on the display screens at the airport.

If we stretch the geographical region even further and include New Zealand, Christchurch and Auckland would stand out for their attention to creating a fresh airport experience (Christchurch’s Sensory Travel Experience) and catering to the Chinese market (Auckland and Weibo’s partnership) respectively.

TIME TO ACT

While the winds of change seem to be finally blowing in Asia, it might be a while before airports here catch up with their counterparts elsewhere. It will be crucial to not delay allocating resources to social any longer.

In an age where passengers increasingly make travel decisions based on recommendations and shared photographs/ experiences seen on their social networks, it will be perilous to not take to the social road. APA

Congratulations to all the airports certified by the programme in the past 12 months!

77 in Europe + 12 in Asia-Pacific & 1 in Africa.

Follow us on

@AirportCo2

Airports responding to climate change.

www.airportcarbonaccreditation.org