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

Celebrating 10 years of ACI Asia-Pacific Interviewed: ACI Asia-Pacific’s founding fathers

Issue 3, 2015

History and highlights: Review of the first decade

www.aci-apa.com

Going green: Environmental initiatives In the spotlight: Hong Kong International Airport

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ASIA-PACIFIC AIRPORTS MAGAZINE

CONTENTS

Asia-Pacific Airports Issue 3, 2015

6 View from the top Regional director, Patti Chau, reflects

on the 10th anniversary of ACI Asia-Pacific and the region’s growing influence on the key issues of safety, security and development of its members.

8 ACI Asia-Pacific news Vivian Fung reports on the latest

news, views and events from across the Asia-Pacific region.

10 All systems go! The next phase in the growth of

Hong Kong International Airport is now cleared for take-off following approval of a major redevelopment based around a third runway, writes Peta Tomlinson.

16 Happy birthday ACI Asia-Pacific Our 10th anniversary special

celebrates the first decade of ACI’s fastest growing and most dynamic region.

18 The future is bright The region’s first ten years have set a strong foundation for the future, writes ACI Asia-Pacific president, Dennis Chant.

20 Celebrating good times

Asia-Pacific Airports editor, Joe Bates, takes an historic look back at the first decade of the ACI Asia- Pacific region.

30 All change

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New passenger dynamics and incredible passenger growth ensure that the region’s airports operate in a very different market today than 10 years ago, says former ACI Asia-Pacific president, Tan Sri Bashir Ahmad.

33 The opening chapter Max Moore-Wilton looks back with

fond memories at the first 10 years of ACI Asia-Pacific region.

www.aci-apa.com


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ASIA-PACIFIC AIRPORTS MAGAZINE

CONTENTS

34 Making milestones

46 Every picture tells a story

ACI World chairman, Fredrick Piccolo, joins other aviation leaders in congratulating ACI Asia-Pacific on turning ten.

Asia-Pacific Airports provides a picture round-up of some of the sights and sounds from the first decade of ACI Asia-Pacific.

36 Learning from others

49 Leading the way

51 Growing together

Dubai Civil Aviation Authority director general, Mohammed Ahli, provides his recollections of the creation of ACI Asia-Pacific and thoughts on its progress over the past decade.

39 Ten and counting!

Heads of trade associations and industry organisations across the region congratulate ACI Asia-Pacific on its 10th anniversary.

41 Going green ACI World’s senior manager

environment, Xavier Oh, reflects on ten years of environmental stewardship in the Asia-Pacific region.

44 Winning combination Former NAA president, Toru

Nakamura, reflects on the creation of ACI’s Asia-Pacific region, the key role he played in it and on the possible challenges ahead.

Asia-Pacific Airports (APA) www.aci-apa.com Editor Joe Bates joe@aci-apa.com Design, Layout & Production Mark Draper mark@aci-apa.com

APA Issue 3, 2015

World Business Partners that have helped make ACI Asia-Pacific a success offer their thoughts on the anniversary.

The final word on the region’s 10th anniversary.

52 The power of IT New technology is driving change for good across the air transport industry, argues SITA CEO, Francesco Violante.

56 Looking to Asia Hawaiian Airlines president and CEO,

Mark Dunkerley, talks about business strategies and the importance of the Asian market to his airline.

58 World Business Partners All the latest news from the region’s WBPs.

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.

Published by Aviation Media Ltd PO BOX 448, Feltham, TW13 9EA, UK Managing Director Jonathan Lee jonathan@aci-apa.com Advertising Manager Andrew Hazell andrewh@aci-apa.com

Subscriptions subscriptions@ aviationmedia.aero Printed in the UK by Magazine Printing Co

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.


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ASIA-PACIFIC AIRPORTS MAGAZINE

VIEWPOINT

VIEW FROM THE TOP

Regional director, Patti Chau, reflects on the 10th anniversary of ACI Asia-Pacific and the region’s growing influence on the key issues of safety, security and development of its members.

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t gives me great pleasure to tell you that this issue of our magazine is dedicated to celebrating the 10th anniversary of the unification of the Asia and Pacific regions of ACI. The ACI Asia-Pacific region has been unified for 10 years and ours is the youngest and most dynamic of all the ACI regions. In the past 10 years we have witnessed ACI Asia-Pacific and our members – both collectively and individually – continue to evolve and set new goals and standards. APA Issue 3, 2015

Our membership has increased significantly and the Regional Office, which started off with just three people, has grown into a small but effective team of 11 staff today. Asia-Pacific is also ACI’s fastest growing region and the world’s biggest aviation market accommodating a third of the world’s total traffic. The achievement of our airports is truly remarkable, may it be on delivering best customer services or achieving a sustainable airport.


ASIA-PACIFIC AIRPORTS MAGAZINE

PARTNERSHIPS

From the recently completed safety culture survey with the Association of Asia Pacific Airlines (AAPA) and Arab Air Carriers’ Organization (AACO) to partnering with the Australian Airports Association (AAA) for Airport Safety Week 2015 this October, we continue to work closely with a number of industry partners to ensure that we best serve the interest of our members. The Airport Safety Week aims to raise safety awareness at airports in Australia, New Zealand and across the Asia-Pacific region. More details about this initiative can be found on page 8. Aviation safety, of course, remains a top priority in the region. We have also worked closely with the China Civil Airports Association and participated in the ‘New Norm and Development in Secured Civil Aviation’ round table discussion held this June in Shanghai, China. Elsewhere, Steve Lee, CIO of Changi Airport Group and chair of ACI World’s Airport IT Standing Committee, represented ACI and spoke at the Civil Aviation Cyber Security Conference in the session on ‘Civil Aviation Cyber Security Challenges’.

ACI PROGRAMMES

I recently had the pleasure of joining some World Business Partners (WBP) on our annual WBP Airport Tour, which this year involved visits to Singapore Changi and Indonesia’s Soekarno–Hatta (Jakarta) & Kualanamu (Medan) international airports. The initiative was introduced back in 2011 and is only offered by ACI Asia-Pacific. Previous WBP Airport Tours have included visits to airports in Korea, China, India, Thailand, Cambodia, Malaysia and Myanmar.

The objective of the tours is to provide a platform for WBP and airport members to explore synergies that would be mutually beneficial and to provide an opportunity for WBPs to meet with senior airport executives and learn more about the gateway’s development plans and upcoming projects. Connecting the airports and their service providers is one of the key missions of ACI and we hope both our airport hosts and WBP value the opportunity and find the tour a rewarding experience. I thank this year’s airport hosts for their generous support and warm hospitality, which was appreciated by the 11 WBP representing eight companies on the tour. Following the success of the ACI Airport Excellence in Safety (APEX in Safety) Programme, ACI has launched APEX in Airport Business, and I am excited to announce that the pilot project will kick off in Papua New Guinea in September. More details about the project will be available and please do contact us should you wish to participate in it.

EXCLUSIVE TO ACI ASIA-PACIFIC

At this point it would, of course, be remiss of me not to mention two human resources related programmes that are exclusive to our region, the ACI Asia-Pacific Young Executive Award and the Human Resources Excellence Recognition Programme. We are inviting applications for both. The objective of the programmes are to acknowledge airports’ outstanding achievements in HR management as well as recognise the outstanding executives in the region. I strongly encourage you to take part in them. Lastly, I would like to invite you to join us at two other important events, the ACI Asia-Pacific HR Best Practices Seminar in Tokyo on October 7-9, 2015, and the Small and Emerging Airports Seminar in Macau on November 25 – 27, 2015. I look APA forward to seeing you there. www.aci-apa.com

VIEWPOINT

I wish to extend my sincerest thanks and appreciation to some of our region’s founding fathers, our Regional Board Members and our members for their support in this special edition. You will be able to read about their stories later on in this celebratory issue.

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ACI ASIA-PACIFC NEWS

Regional update Vivian Fung reports on the latest news, views and events from across the Asia-Pacific region.

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he first ever Developing Nations Airport Assistance (DNA) course in Asia-Pacific focused on Aviation Security was held in Kuala Lumpur on 22-24 June 2015, in collaboration with ACI World and Malaysia Airports Holdings Berhad (MAHB). A total of 22 participants from 10 airports  attended the two-day programme, which provided a platform for them to

enhance their aviation security knowledge and demonstrated ACI’s commitment to addressing the need for capacity building in aviation security. Mustafa Kamal Hj Alang Othman, general manager aviation security at MAHB gave the opening address and welcomed the delegates and instructors from ACI Asia-Pacific, Hartsfield-Jackson Atlanta International Airport, Singapore Changi Airport and IATA.

AIRPORT SAFETY WEEK SET FOR OCTOBER

ACI Asia-Pacific will be partnering with the Australian Airports Association (AAA) and the New Zealand Airports Association (NZ Airports) on an incredibly exciting week-long initiative to promote safety at airports this October (26-30th). The event is the first of its kind for the aviation industry in the region and targets airport employees and contractors through communication of key safety messages at airports and exciting events. Airport Safety Week activities aim to engage airport employees to consider their own personal safety as well as their obligations to provide a safe environment for all airport users. The campaign is aimed at enhancing the safety culture at airports by creating a forum for information sharing and innovative thinking when it comes to airport specific safety hazards and how they should be addressed. APA Issue 3, 2015

Participants are provided with a range of resources to help facilitate Airport Safety Week, including event plans for suggested activities to encourage staff and contractor participation. By taking part, airports are able to demonstrate to the community and the travelling public that they have a genuine commitment and determination to maintain a safe environment for all airport users. The education products that will be circulated to participants are designed to evoke thoughts and initiate conversations among airport staff that will get them thinking about airport safety. For further information on Airport Safety Week please navigate to www.airportsafetyweek.com or email SL Wong, senior manager, technical and industry affairs at sl@aci-asiapac.aero.


ASIA-PACIFIC AIRPORTS MAGAZINE

December 8-10 Airport Exchange Istanbul, Turkey

2015

September 16-18 The Trinity Forum Hong Kong, China

2015

October 7-9 ACI Asia-Pacific HR Best Practice Seminar Tokyo, Japan

2015

November 25-27 ACI Asia-Pacific Small and Emerging Airports Seminar Macau, China

ACI ASIA-PACIFIC BOARD

PRESIDENT

Dennis Chant* (Queensland Airports Limited, Australia)

FIRST VICE PRESIDENT

Seow Hiang Lee* (Changi Airport Group Pte Ltd, Singapore)

SECOND VICE PRESIDENTS Kerrie Mather* (Sydney Airport Corporation Limited, Australia) PS Nair* (Delhi International Airport Limited, India)

SECRETARY-TREASURER Emmanuel Menanteau* (Cambodia Airports, Cambodia)

IMMEDIATE PAST PRESIDENT

Tan Sri Bashir Ahmad Abdul Majid** (Malaysia Airports Holdings Berhad, Malaysia)

REGIONAL BOARD DIRECTORS

Sulaiman Zainul Abidin (Pioneer Aerodrome Service Co Ltd, Myanmar)

David Fei (Taoyuan International Airport Corporation, Taiwan)

Mark Young (Adelaide Airport Limited, Australia)

Kenichi Fukaya* (Narita International Airport Corporation, Japan)

Waleed Youssef (Tibah Airports Operation Co Ltd, Saudi Arabia)

Seok Ki Kim (Korean Airports Corporation, Korea)

REGIONAL BOARD DIRECTOR (WBP)

Derun Li (Shanghai Airport Authority, China)

Andrew Ford (DFS Group Limited, Hong Kong)

Youssef Al-Abdan (General Authority Of Civil Aviation, Saudi Arabia)

Xue Song Liu** (Beijing Capital International Airport Co Ltd, China)

SPECIAL ADVISORS

HE Ali Salim Al Midfa (Sharjah Airport Authority, UAE)

Pedro Roy Martinez (AB Won Pat International Airport Authority, Guam)

Keiichi Ando (New Kansai International Airport Co Ltd, Japan)

ACK Nair (Cochin International Airport Limited, India)

Kjeld Binger* (Airport International Group, Jordan)

Sasisubha Sukontasap (Airports of Thailand, Thailand)

Datuk Badlisham Bin Ghazali (Malaysia Airports Holdings Berhad, Malaysia) Fred Lam (Airport Authority Hong Kong, Hong Kong) Wan-su Park (Incheon International Airport Corporation, Korea)

* WGB member **Regional Advisor on WGB

The ACI Asia-Pacific region represents 99 members operating 573 airports in 47 countries and territories. www.aci-apa.com

ACI ASIA-PACIFC NEWS

EVENTS 2015

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AIRPORT REPORT: HONG KONG

All systems go! The next phase in the growth of Hong Kong International Airport is now cleared for take-off following approval of a major redevelopment based around a third runway, writes Peta Tomlinson.

L

andmass-wise, Hong Kong is one of the smallest world cities, but it has always had a big vision. Nowhere is this more evident than in the ambitious construction of Hong Kong International Airport (HKIA). Built on a man-made island of land reclaimed from the sea, the city’s Sir Norman Foster-designed aviation gateway at Chek Lap Kok was unveiled in 1998 as one of the world’s largest and most advanced airport, and today, is one of the busiest. The pace of growth has put Airport Authority Hong Kong (AAHK) in the “happy” position of needing more room. Now, seven years after plans were first mooted to expand the airport into a three-runway system, government approval has paved the way for preparatory works to begin. And Airport Authority Hong Kong CEO, Fred Lam, leaves you in no doubt that the new runway is pivotal to the long-term success of his gateway. “The 2014/2015 financial year, ended 31 March 2015, was another record-breaking year for HKIA. Passenger volumes rose 6.6% from 2013/14 to 64.7 million. Cargo throughput also grew 5.5% to 4.4 million tonnes, making HKIA the busiest cargo airport in the world,” he says. “While we are encouraged by the growing figures, we are also aware of the

APA Issue 3, 2015

challenges. HKIA is now operating at over 90% of capacity, and will soon reach its saturation point. “There is a pressing need for HKIA to expand from its existing two-runway system into a three-runway system (3RS), which will provide a long-term solution to our capacity constraints.” According to Lam, 73% of respondents to a public consultation process in 2011 supported the third-runway expansion, and following that, AAHK obtained in-principle approval from the Executive Council, a core policy-making body of the Hong Kong government. However, various environmental factors needed to be addressed, covering issues such as air quality, noise, ecology, etc. The final hurdle – the Environmental Impact Assessment – concluded that all potential impacts of the 3RS project would be reduced to an acceptable level.

GREEN LIGHT

In March 2015, the Executive Council gave the green light, affirming the need for the 3RS project as a catalyst to strengthen the city’s competitiveness as a global and regional aviation hub. It was a milestone moment, but only the beginning. Lam explains that the expansion involves much more than just building a new runway. “The sheer scale of the 3RS is indeed comparable to building an entirely new airport,” he points out.


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AIRPORT REPORT: HONG KONG

“It includes the reclamation of approximately 650 hectares of land to the north of the existing airport island as well as construction of a third runway, taxiways and an apron with 57 parking positions. “In addition, the project also includes construction of the Third Runway Concourse (TRC), and expansion of the existing Terminal 2 (T2) into a full-service processing terminal. “Moreover, a new Automated People Mover system connecting T2 with the TRC, and a new high-speed baggage handling system will be built.” Lam adds: “The TRC will feature green elements. Beautiful courtyards will be situated at the centre of concourse, together with other environmentally

friendly features such as smart air conditioning, lighting, and solar power.”

INDUSTRY REACTION

Upon completion, the $18.2 billion expansion will have the capacity to serve an additional 30 million passengers annually. However, while the expansion itself has been widely welcomed by industry and the public, the decision to incorporate a user-pays component brought a mixed reaction. Tony Tyler, director general and CEO of IATA - a big supporter of the airport – weighed in with the view that there should be “ample scope” for the project to be funded through borrowings alone. Cathay Pacific Airways, which accounts for almost one-third of HKIA’s departure capacity, agrees. www.aci-apa.com


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AIRPORT REPORT: HONG KONG

While reiterating his “unequivocal support” for a third runway system, Ivan Chu, Cathay Pacific’s chief executive, says he believes its construction could be self-funded through existing income streams, “especially as the number of passengers moving through the airport continues to grow”.

FEES AND CHARGES

He notes that Airport Authority Hong Kong, which he claims “enjoys the highest net profit of any airport in the world and benefits from strong cash flows, a healthy balance sheet, and growing income from retail and aeronautical streams”, is “fully capable of financing the construction of the third runway through its own means without the need to impose additional financial burden on users.” Charges must remain competitive to ensure continued growth for aviation, tourism and related industries, Chu adds. However, Lam defends the funding proposal based on a joint contribution and Hong Kong phenomenon Hong Kong based Plaza Premium Lounge Management Limited, which opened the first of its global lounges at the airport in 1998, has rebranded as Plaza Premium Group to better reflect its business strategies and expansion plan. As a result it has a unveiled a new logo and adopted the new mission statement of ‘Making Travel Exceptional’. “We have organically grown from our position as the pioneer of the independent lounge concept to a global premium airport services provider, says CEO and founder, Song Hoi-see. “The new name marks a step towards reflecting the group’s increasingly diversified airport hospitality businesses. We believe that airports are a destination in their own right and our services and facilities will give travellers more reasons to enjoy their travel experience.” T he rebrand coincides with the launch of two new brands – Aerotel and Allways – to its existing portfolio, which Hoi-see says APA Issue 3, 2015

user-pays principle through three channels – namely bank loans and bonds, HKIA’s operational surplus and contributions from users as a “longer-term solution”. In the interim, he says, AAHK is working on a number of facilities and services upgrades to continue providing a top-class experience for its customers. “In 2014/15, the expanded west apron, which adds 28 aircraft parking stands to HKIA, became fully operational. Our Midfield Concourse, which will add another 20 aircraft parking stands, will be completed by the end of 2015,” he tells Asia-Pacific Airports magazine. “The Midfield Concourse will be able to serve 10 million additional passengers per annum. In addition to upgrading our facilities, we have introduced arts and cultural elements to our airport this year. Passengers are now able to enjoy musical performances and appreciate works by Hong Kong artists during their stay at HKIA.”

consolidates the group’s evolving businesses into four core pillars – airport lounges; airport transit hotels; airport meet & greet services; and airport dining. Its first two Aerotel transit hotels will open at Singapore Changi and Abu Dhabi International Airport later this year and be followed by one at London Heathrow in 2016. The company is launching its new kerb to apron meet & greet service, Allways, in phases at seven airports across the globe – including Delhi–Indira Gandhi, Singapore Changi, Macau, Kuala Lumpur and Muscat in the Asia-Pacific region. Allways includes services such as buying welcome gifts, one-stop pick-ups, lounge stays, buggy service, baggage handling, limousine transfers to nearby restaurants and itinerary recommendations. “We strongly believe the travel experience begins the moment you step into the airport and that airport transit is a journey in itself,” adds Song.


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10TH ANNIVERSARY SPECIAL

In the years ahead, he comments, the 3RS will enable Hong Kong to overcome existing aviation capacity constraints, allowing the airport to continue to provide the city with a long-term competitive edge, and to serve as a source of pride for the people of Hong Kong. “Most importantly, it will continue be an efficient, enjoyable and convenient airport for passengers from all over the world,” he says. “The expansion of HKIA into a 3RS is more than just a transport infrastructure development, it is an investment in Hong Kong’s future. “HKIA is the heart of Hong Kong’s economy, supporting the city’s four pillar industries – trading and logistics, financial services, producer and professional services, and tourism – which together accounted for around 58% of the city’s GDP in 2013.

“In addition, it will also bring us tremendous benefit, attracting more business, creating hundreds of thousands of jobs, as well as strengthening our city’s status as an international aviation hub.”

ECONOMIC BENEFITS

The 3RS is anticipated to create 123,000 direct jobs and 165,000 indirect and induced jobs by 2030, and will bring an additional HK$455 billion in economic net present value when compared to the two-runway system in 2012-2061, insists AAHK. “This expansion will bring more business, more jobs and more convenience to Hong Kong,” concludes Lam. “The development of infrastructure of such magnitude is an extensive process that poses many challenges. We are well set to press ahead, and committed to striking a balance between development and environmental protection.” www.aci-apa.com

APA


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10TH ANNIVERSARY SPECIAL APA Issue 3, 2015


ASIA-PACIFIC AIRPORTS MAGAZINE

Our 10th anniversary special celebrates the first decade of ACI’s fastest growing and most dynamic region.

www.aci-apa.com

10TH ANNIVERSARY SPECIAL

Happy birthday ACI Asia-Pacific

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10TH ANNIVERSARY SPECIAL

The future is bright The region’s first ten years have set a strong foundation for the future, writes ACI Asia-Pacific president, Dennis Chant.

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t this year’s annual Regional Assembly, Conference and Exhibition at the Dead Sea, Jordan, the ACI Asia-Pacific region celebrated the 10th anniversary of the amalgamation of ACI’s former Asia and Pacific regions. It was a wonderful opportunity to reflect on the achievements of the last decade and to recognise the leaders of the respective regions who had the foresight and drive to make this union successful. As a member of the Pacific Regional Board at that time, I remember being somewhat overawed at the scale of the task we were undertaking. The diversity of landscapes and cultures embraced by this vast region, for example, presented significant logistical and governance challenges. To the credit of the executive board members, secretariats and advisers to the two regions they were up to the task. Their legacy is the establishment of ACI’s largest region with 99 members operating 573 airports in 47 countries.

THREE STRATEGIC PILLARS

This legacy is also the foundation on which ACI Asia-Pacific has based three strategic pillars to ensure its relevance to its members and the communities they serve over the decade to come. APA Issue 3, 2015

These pillars are: • Pillar 1 – Representing airport interests • Pillar 2 – Promoting airport excellence • Pillar 3 – Building capacity in ACI Asia-Pacific ACI’s Asia-Pacific region is leveraging off the strong relationships built up by ACI World with other key members of the aviation community. The co-operative relationships established with other international aviation organisations such as ICAO, IATA and CANSO ensure the industry is able to collaborate effectively in furthering the interests of the providers and users of aviation services worldwide. The Regional Office is strengthening relationships with national airports associations and other regional aviation groupings such as the Association of Asia Pacific Airlines, Arab Air Carriers Organisation and ICAO regional offices. Strong regional economic growth throughout the Asia-Pacific region has resulted in an unprecedented demand for air transport services. This growth, together with ongoing security and elements of political uncertainty, represents constant challenges to the industry. Through strengthened representation, the airport sector – both regionally and internationally – is now more influential in the promotion of the key objectives of the aviation industry. Priority objectives relate to safety, security, environment and economics.


ASIA-PACIFIC AIRPORTS MAGAZINE

Through our second Pillar, ‘Promoting airport excellence’, ACI Asia-Pacific acknowledges that, as access to air travel increases, our airport users will expect increasing levels of service. Airports are now the primary gateways to most countries or cities and all stakeholders see them as the first and last impression a visitor has of a destination. ACI World has developed the primary international measurement of airport service quality, the ASQ programme. ACI Asia-Pacific members have wholeheartedly adopted this programme of regular quarterly surveys of key airport service measures. Indeed, almost since its inception, key Asia-Pacific airports have become the benchmarks to which airports across the globe aspire to reach. As with increasing service standards, passengers expect airports to excel in the more fundamental attributes of safety and security. Whilst these factors are enshrined in the minds of aviation service providers there is an expectation of constant improvement in the levels to which these factors are developed. ACI’s APEX in Safety programme and other initiatives with industry partners such as IATA are key to ensuring the current and next generation of aviation professionals are well equipped to meet the needs of a safe and secure aviation industry. Fundamental to ensuring continuous improvements in safety, security and service quality is the access to adequate funding. Irrespective of the ownership model, it is very difficult for many airports, particularly the smaller and more remote ones, to generate the surplus funds necessary to invest in the pursuit of excellence. ACI and its members have recognised the financial challenges faced by airports and have developed initiatives to improve the economics of airports. Indeed, ACI AsiaPacific has followed in the footsteps of ACI World and established an ACI Asia-Pacific Economics Committee. Last but not least, ACI and airport operators are aware of the growing demand

on organisations of all sectors to address concerns about the quality of the environment. Whilst economically advanced regions such as Europe have long progressed initiatives to protect and improve the physical environment, less developed and newly industrialised countries face greater challenges in this regard. Increasing economic property within the Asia-Pacific Region has brought with it a growing expectation that the quality of this environment must improve. ACI Asia-Pacific has joined with ACI Europe to introduce the latter’s Airport Carbon Accreditation programme to Asia-Pacific members. The take-up of this programme has exceeded expectations.

BUILDING CAPACITY

The third pillar, Building Capacity in ACI Asia-Pacific, underpins delivery of the goals identified in the first two strategic pillars. The future wellbeing of our industry and our communities is very dependent on the skills and knowledge of a new generation of airport professionals. ACI, together with numerous partners in the aviation and education sectors, has and continues to develop a comprehensive suite of training programmes. They now cover from entry level to post-graduate level. It is pleasing to note that ACI Asia-Pacific region members have accounted for about half of all the courses and the same proportion of participants for all of the courses sponsored by ACI over the last year. The establishment of the airport industry as a discrete sector of the aviation industry has been most evident over the last two decades. The first decade saw its establishment as a partner of influence in the aviation industry. The second decade has seen it mature and grow in confidence as it builds on the foundations laid by our predecessors. I am confident that airports are well equipped to accommodate the anticipated growth in numbers and stakeholder expectations of improved outcomes in quality of service, safety, security, environment and economic APA well-being over the next decade. www.aci-apa.com

10TH ANNIVERSARY SPECIAL

PROMOTING EXCELLENCE

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10TH ANNIVERSARY SPECIAL

Celebrating good times Asia-Pacific Airports editor, Joe Bates, takes an historic look back at the first decade of the ACI Asia-Pacific region.

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ome thought it couldn’t be done and a few even questioned the wisdom of it, but ten years down the road nobody is doubting the decision to unite ACI’s former Asia and Pacific regions because it has arguably created ACI’s most dynamic and successful region. And the incredible thing is that there is so much more to come from the region’s airports as economies in developing nations across Central and South East Asia and the Middle East continue to grow and demand

APA Issue 3, 2015

for air travel soars in the giant powerhouses of China and India. So how did the unification come about and what was the motivation for bringing together two quite separate and, in their own way successful ACI regions? Asia-Pacific’s founding fathers provide their recollections of the historic event and the subsequent success of the region later on in this celebratory issue, but what should probably be noted here is that although ACI Asia-Pacific didn’t officially come into being


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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

until January 1, 2008, it is celebrating its 10th anniversary this year as the agreement to create it was signed two years earlier at ACI Pacific’s Regional Conference in Hong Kong on May 9, 2006.

STEP BACK IN TIME

The first step towards integration was actually taken back in 2000 when the Asia Regional Board floated the idea of a merger and the creation of a dedicated ACI AsiaPacific Region based in Hong Kong. In official terminology, it wanted to seek the possibility of a merger between ACI’s Asia and Pacific regions. However, although the idea was well received in both regions the move didn’t really gain traction until October 2004 when a proposal to integrate the regions was made at ACI World’s Executive Committee meeting at the joint ACI World Assembly/ACI Europe Congress in Lisbon. To all involved this was considered the major breakthrough and many view the men that made the proposal – Dubai International Airport’s Mohammed Ahli and Sharjah’s

Hong Kong, China Seoul, South Korea Cairns, Australia Kuala Lumpur, Malaysia Hainan, China New Delhi, India Singapore, Singapore Phuket, Thailand Seoul, South Korea Dead Sea, Jordan

Ghanem Al-Hajri – as the true ‘founding fathers’ of the ACI Asia-Pacific region. Plenty still had to be done, of course, but within weeks a special Integration Task Force made up of members from each region had been set up to investigate the feasibility of such a move. The taskforce was spearheaded by Tokyo Narita’s then CEO and ACI World first vice chair, Toru Nakamura, and under his guidance, things began to shape and the rallying phone calls to members started – often late at night for some as the potential new region they were creating encompasses a vast area and some 60% of the world’s population. The process also involved a lot of meetings and much paperwork but with both regions overwhelmingly in favour of the initiative, it would only be a matter of time before unification happened, especially after ACI World’s Governing Board endorsed the move in 2005. The endorsement, and the agreement to integrate signed by the Asia and Pacific regions in Hong Kong a year later led to the creation of ACI Asia-Pacific, which existed as an interim region during a two year transition period.

REASONS TO MERGE

Speaking to Airport World at the time, Toru Nakamura, said: “Why integrate? Among the many reasons for pursuing integration there are two that stand out – the need for increased co-operation between the regions to cope with rapid traffic growth and the www.aci-apa.com

10TH ANNIVERSARY SPECIAL

ACI Asia-Pacific Regional Conferences

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10TH ANNIVERSARY SPECIAL Where it all began: The new region is formed at ACI Pacific’s conference in Hong Kong in 2006.

desire to provide a better service in a more efficient way to members.” He added that integration would not have been possible without the transfer of the Pacific regional office from Vancouver to Hong Kong, as the latter’s location meant that it was perfectly placed to take on the role as headquarters of the newly created region. Other reasons to merge included the fact that integration would provide greater synergy and make best use of the limited resources of the regional office. It was also felt that creating a bigger region would provide an opportunity for the more established airports in Asia, the Pacific, Australasia and Japan to assist smaller gateways in developing countries in terms of sharing technology and management expertise. In this regards, ACI Asia-Pacific was quick to adopt the sister airport programme introduced by the former Pacific region. Former board member Greg Moix, then with San Francisco International Airport, noted at the time: “The programme will allow many of the smaller airports to partner with larger airports for active, hands-on-training.” Moix, one of the biggest supporters of the new region, was also crystal clear in his thoughts about the benefits of the merger for individual airports. He said: “We are now part of a larger Asia-Pacific region and thus able to meet with our partners, address the issues and APA Issue 3, 2015

work on solutions on a much more efficient and realistic basis. With the rapid internationalisation of our economy and the growing importance of the Asian markets, having a much more direct and complete group is to our advantage.” Max Moore-Wilton, already a familiar face to many for his high-profile role at Sydney Airport and long career in politics in his native Australia, was elected as the region’s first president. He served from 2008 to 2010 – only stepping down after being elected chair of ACI World – and has been succeeded as president by Malaysia Airports Holdings Berhad’s Tan Sri Bashir Ahmad (2010-2014) and present incumbent, Queensland Airport Limited’s Dennis Chant. Maggie Kwok was ACI Asia-Pacific’s first regional director and served with her own distinct brand of optimism, enthusiasm and hard work until retiring in 2011 and being succeeded from within by Patti Chau, who joined ACI Pacific in 2004 after previously working for Vancouver Airport Services in Canada. In the launch issue of Asia-Pacific Airports magazine in October/November 2007, Moore-Wilton spoke for the first time about his hopes for the region and drew attention to some of the key opportunities and challenges ahead. He wrote: “I would say the integration of the Asia and Pacific regions is one of the


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ASIA-PACIFIC AIRPORTS MAGAZINE

10TH ANNIVERSARY SPECIAL most significant developments at ACI since the creation of the organisation in 1991. “The integrated Asia-Pacific region is geographically ACI’s largest – spanning from the west coast of the US and Canada, Australia, New Zealand, Asia and the Middle East – and covering time zones from Hawaii (GMT –10 hours) in the western hemisphere to New Zealand on the other side of the international dateline (+12 hours). It is also linguistically and culturally the most diverse and richest of all the ACI regions. “While such a large grouping within the family of ACI offers immense opportunity for co-operation and exchange among members, it also presents a significant communication challenge for us. Maintaining effective communication with our members in a region of such diversity and geographical dimension is of prime importance to foster co-operation and promote member interests. “The region is launching several initiatives to meet this challenge. Firstly, to make the ACI Asia-Pacific website a more effective communication tool for our members, it has been revamped to make it more user-friendly and informative. “Secondly, ACI Asia-Pacific has launched a ‘We Care’ airport service co-ordinator programme aiming to maintain a close personal relationship with our members. Each staff member will be assigned to around 10 member airports and act as the key contact point for them. APA Issue 3, 2015

With closer personal relationships I believe the regional office can better understand the needs of members and respond and live up to expectations. “We are also launching this magazine to provide the latest news of airports across the region, to communicate success stories of airport management and development and, most importantly, to present our viewpoints to the industry and to the public.”


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EARLY DAYS

When two officially become one in January 2008, the newly created super region had 96 members operating 447 airports in 51 countries and territories that ranged from small airfields handling a handful of flights per week to some of the biggest, most technologically advanced and successful hubs on the planet. Today the figures stand at 99 members operating 573 airports in 47 countries and territories. To highlight the diversity of the region in our first issue we ran a feature about Australia’s first residential community built around a runway (Airlie Beach on the Whitsunday Islands) where planes literally taxied into hangars at the bottom of people’s gardens, as well as articles about some of the region’s biggest hubs – Beijing Capital, Mumbai–Chhatrapati Shivaji and Tokyo’s Haneda and Narita airports. Big stories covered by APA in our first 12 months alone included the opening of Singapore Changi’s new Terminal 3 and the birth of greenfield gateways in Bangalore and Hyderabad. That year also saw Sydney welcome the A380 for the first time and we profiled the development of a host of airports from Tokyo to Tonga as well as reported on the quirky such as Australia’s ice runway in Antarctica.

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You can read more thoughts from Max about the formation and success of the Asia-Pacific region on page 33 of this special issue of Asia-Pacific Airports.

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GREEN SUCCESS STORY

Without doubt the pioneering environmental initiatives and growing ‘green’ commitments of Asia-Pacific’s airports is a highlight of the region’s first decade. Landmarks include 2011’s decision to join aviation’s ACI Europe-initiated Airport Carbon Accreditation (ACA) programme and the launch of the ACI Asia-Pacific Green Airports Recognition initiative. In announcing the news about the latter, ACI Asia-Pacific’s then president, Tan Sri Bashir Ahmad, said: “The objective of the Green Airports Recognition initiative is three-fold, to promote environmental best practices; minimise aviation’s impact on the environment; and, more importantly, to recognise ACI Asia-Pacific airports for their environmental efforts.” As you will read later in this issue, the region’s airports have certainly embraced the environmental challenge through a variety of initiatives that have included capturing and recycling rainwater on the roof of terminals to the use of geothermal energy. Among the many firsts for the region was Hyderabad International Airport becoming the first gateway in Asia to be awarded the prestigious Leadership in Energy and Environmental Design New Construction (LEED NC) Silver Rating by the US Green Building Council. As of August 2015, a total of 25 airports from the region were carbon accredited under the ACA programme and more will follow this year. www.aci-apa.com


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10TH ANNIVERSARY SPECIAL

YOUNG EXECUTIVE OF THE YEAR

In a joint ACI statement released in July this year about the overall success of ACA, which now extends to 125 airports in 40 countries across the globe, ACI Asia-Pacific’s regional director, Patti Chau, said: “These airports are reporting on their carbon management activities every year and they have mobilised on this of their own accord. “And it’s not just the bigger hubs like Dubai, Heathrow, Hong Kong, Paris CDG, Istanbul-Atatürk, Seattle-Tacoma, SeoulIncheon and Schiphol – the programme has certified a huge number of smaller airports like Eindhoven, Enfidha Hammamet, Farnborough, Hat Yai International, Malmö, Portland-Troutdale and Puerto Vallarta. “An impressive 1.7 billion passengers now travel through airports certified at one of the 4 levels of the programme – that’s 27.5% of global air passenger traffic. Most promisingly 22 airports advanced up a level of the programme in the past year, making further progress in the way they manage their carbon emissions. “In the past year, these airports have succeeded in reducing the CO2 emissions under their direct control by 212,460 tonnes of CO2. That’s equivalent to the annual CO2 sequestered by 1,495 acres of forest.” APA Issue 3, 2015

Another highlight has been the launch and subsequent success of the ACI Asia-Pacific Young Executive of the Year Award, with half-a-dozen recipients to date following in the footsteps of inaugural winner, Gold Coast Airport’s marketing manager, Frances Cream. The Young Executive of the Year Award is a research paper competition introduced in 2009 to encourage and promote innovative ideas and solutions to challenges facing the aviation industry. And like her predecessors, the 2015 winner, Ruzliana Fazila Kamarudin from Malaysia Airports Holdings Berhad (MAHB) had the honour and nerve-racking responsibility of providing delegates with a snapshot of her research paper at ACI Asia-Pacific’s annual conference, which this year took place at the Dead Sea in Jordan.

TRAFFIC GROWTH

Arguably another highlight for the region has been the resiliency of its airports to events beyond their control such as the Global Financial Crisis of 2007-2008 and the swine flu outbreak a year later. Indeed, the region continues to lead the way on passenger growth as demonstrated by ACI’s latest figures for 2015, which show that in May while traffic increased in Africa, Europe, North America and Latin America & the Caribbean by 4.4%, 5.8%, 4.5% and 6.4% respectively it soared by 10.6% and 10.9% in Asia-Pacific and the Middle East. Asia-Pacific and the Middle East also recorded 11.6% and 11.4% increases in international passenger traffic during the month compared to the same period a year ago. All added up to significant double-digit increases in May for a host of gateways, the most notable of them being Dubai (DXB), Bangkok (BKK) and Shanghai (PVG) with growth of 23.2%, 22.8% and 22% respectively. Incheon (ICN) and Delhi (DEL) followed the leading triumvirate with 19.9% and 14.9% growth in total passenger volumes.


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ASIA-PACIFIC AIRPORTS MAGAZINE

10TH ANNIVERSARY SPECIAL You only need to glance at the traffic results for the top 10 airports in Asia-Pacific during the calendar years of 2005 and 2014 to see just how much traffic has grown over the last decade. In 2005, the top ten airports were led by Tokyo Haneda with 63.2 million passengers and included Beijing Capital, Hong Kong, Bangkok, Singapore, Tokyo Narita, Sydney, Jakarta and Incheon. If Dubai International Airport (DXB) had been included in the wider region back in 2005 it would have ranked eleventh based on the 23.6 million passengers that passed through its facilities. Today it is the third busiest in the region and has overtaken London Heathrow as the busiest international airport in the world having welcomed 70 million passengers in 2014. Beijing Capital, now the second busiest gateway on the planet, led the way last year handling more than 86 million passengers – a staggering 45 million more than a decade earlier. With the exception of Dubai, the biggest mover in the Asia-Pacific pack in the last ten years has been Guangzhou Baiyun, which has jumped from 11th place handling 23.5mppa to sixth accommodating 54.7 million. It is also worth noting that Jakarta’s Soekarno-Hatta International Airport has more than doubled its passenger count in the last 10 years, accommodating 57 million passengers in 2014. APA Issue 3, 2015

CUSTOMER SERVICE

Another undoubted highlight is the incredible success Asia-Pacific airports have had in ACI’s Airport Service Quality (ASQ) customer satisfaction awards, so much so in fact it is almost impossible to talk about the survey without mentioning them. In fact it wouldn’t be an over-statement to say that Asia-Pacific airports have dominated the ASQ awards for a decade, led by perennial winners Incheon, Haikou and Seoul Gimpo and an ever-growing list of top performing gateways such as Singapore Changi, Beijing Capital, Hyderabad–Rajiv Gandhi and Hong Kong. As reported earlier this year, Asia-Pacific airports actually won all but one of the five global by size categories in the ASQ awards for 2014 with customer service champion, Incheon, winning the Best in Asia-Pacific title for the tenth year running. New to the winner’s podium in 2014 were Queen Alia International Airport in Jordan (Best in Middle East + Best Improvement: Middle East) and Delhi’s Indira Gandhi International Airport (Best by Size in the 25-40mppa category). The dominance of the region’s airports is certainly testimony to their commitment to raising the bar on customer service and setting new trends that ACI’s other regions strive to follow. And you only have to read the comments of some of the top placed airports to see how much it means to them.


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SECTION 10TH ANNIVERSARY TITLE SPECIAL

Indeed, after a top three finish in the 5-15mppa category for the sixth consecutive year, Hyderabad–Rajiv Gandhi International Airport’s CEO, SGK Kishore, announced: “Make no mistake about it, an ASQ award is a major achievement for an airport and its community.” Based on passenger feedback from check-in to the departure at the gate at more than 300 airports worldwide, the ASQ survey is recognised as being the industry’s most comprehensive customer-service benchmarking tool.

NEW INFRASTRUCTURE

The list of new airports and stunning terminals opened in the Asia-Pacific region over the last decade is truly incredible, and the count goes on of course with numerous projects either currently underway or due to start in the next few months. In terms of milestone developments since 2005, in addition to the birth of new greenfield gateways in Bangalore (Bengaluru International Airport), Doha (Hamad International Airport) and Hyderabad (Rajiv Gandhi International Airport) we have among others witnessed the opening of klia2 and new ‘game changing’ showpiece terminals at Baku–Heydar Aliyev, Queen Alia, Mumbai– Chhatrapati Shivaji, Shenzhen Bao’an and Xi’an Xianyang. While huge projects taking shape or on the agenda include Abu Dhabi’s Midfield Terminal Building; Incheon’s Terminal 2; new satellite concourses or terminals at Bangkok

Suvarnabhumi, Shanghai Pudong; Jakarta Soekarno-Hatta and Taiwan Taoyuan; new airports in Dalian, Mumbai and Beijing; and, of course, the ongoing development of Dubai International Airport and its eventual replacement Dubai World Central-Al Maktoum.

ANNUAL CONFERENCES

Attendees have certainly been spoilt by some of the amazing and sometimes exotic venues chosen by the Asia-Pacific team to host their annual Regional Assembly, Conference & Exhibition in its first decade. It all started with THAT meeting in Hong Kong in May 2006 and has since gone to Seoul, Cairns, Kuala Lumpur, Hainan, New Delhi, Singapore, Phuket, Seoul and the Dead Sea. I am pleased to say that I have been to each and every one of them and have fond memories in particular of Cairns – where a rather fearsome looking Aborigine dancer actually scared some people in the audience when he moved among them – and New Delhi, which treated us to an unforgettable Gala Dinner and Bollywood Show. You will, of course, all have your particular favourites as each of them was truly memorable for a host of different reasons, not least the warm and friendly welcome from the hosts. Let’s raise a glass to ACI Asia-Pacific on its 10th birthday and continue to celebrate this milestone all the way to the Gold Coast for the 2016 Regional Assembly, Conference APA & Exhibition! www.aci-apa.com


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10TH ANNIVERSARY SPECIAL

All change New passenger dynamics and incredible passenger growth ensure that the region’s airports operate in a very different market today than 10 years ago, says former ACI Asia-Pacific president, Tan Sri Bashir Ahmad.

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ncreased competition, coping with traffic growth, changing airline business models, more demanding customers and the need to embrace social media are just some of the new challenges facing today’s airports, says Tan Sri Bashir Ahmad. And with new technology set to change the way we travel and airports operate, and are even designed in the future, he expects the next 10 years to be some of the most exciting and challenging in aviation history as airports evolve to meet a changing market. “Airports now have to be very adaptable as the industry is constantly changing as are airline business models and their requirements,” says Bashir. In his home country of Malaysia he says the emergence of low-cost carrier, Air Asia, over the last decade has changed the market dynamics, with LCCs now accounting for 50% of the market. Bashir notes that Malaysia Airports Holdings Berhad (MAHB) was early to recognise the future potential of the “low-cost phenomenon”, adding that luckily it was “agile and nimble enough” to react quickly to it and provide it with dedicated facilities and services. He is also quick to point out that social media has transformed the way airports communicate with their customers and argues that this new marketing tool needs to be embraced. “Social media has become a very important medium for customer feedback,” he tells Asia-Pacific Airports (APA). “Anybody with a grievance or a good point to make can APA Issue 3, 2015

now go on Twitter or Facebook, for example, and tell the world about it in seconds. “This means that airports now have to deal with customers on an individual basis and 24 hours-a-day, seven days a week. The days of writing a letter, posting it and waiting sometimes weeks for a reply are over. People want answers immediately. “On the plus side it has also been very useful for us in terms of passenger feedback, which we have taken onboard and used to make improvements. We look at social media very constructively.” As a former president of ACI Asia-Pacific, what does he consider to be the region’s greatest achievements during its first decade? “I think one of the biggest accomplishments over the last ten years has been the coming together of a common direction for all airports,” says Bashir. “As you know, the region is very large, stretching from the Middle East all the way to Australia and then north to Japan and Korea. So, in my opinion, being able to come together, meet and set a common direction for the future of airports in this part of the world has been the greatest achievement for us.” He also believes that because of ACI, airports now communicate more and better between one another, and that this has helped create a strong and united region. “We have so much in common that by sharing our experiences we can learn from each other,” muses Bashir. “Regardless of where you are from we all face capacity, security and slot issues of some description,


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for example. Concentrate on what you have in common and not the differences.” This willingness to work together and strive to improve has led to many of the region’s biggest airports actively going out of their way to aid the development of their smaller counterparts. “There is no point having policies to help just the big airports, you need to help the small ones as well,” he notes. Bashir believes that Incheon International Airport should be singled out for special praise for setting the standards for all other airports to follow in terms of customer service levels. He adds that Delhi’s Indira Gandhi International Airport has also impressed in terms of its consistently high customer service performance and that Bangkok Suvarnabhumi has done well for tourism growth. Ensuring that airports have sufficient capacity to meet future demand; the ‘flexibility’ to adapt to a changing business environment; and are capable of delivering a more personalised service to customers are

the three greatest challenges and opportunities facing the region’s airports, says Bashir. “Meeting the requirements of passengers on an individual basis will arguably be the biggest and hardest challenge for airports to meet,” he suggests. Bashir also feels that there is so much more to come from the region in terms of traffic growth, as unlike the more mature markets of Europe and the US, Asia-Pacific is really only just getting started. He explains: “We are growing very fast and have some very good airports and very good airlines, but they have not matured yet and there are so many more things to be done before the region gets anywhere near realising its potential.” What advice would he offer to ACI Asia-Pacific’s regional director, Patti Chau? Without hesitation, he replies: “All I would suggest to her is that whatever decisions are made, they are made for everyone. We have big airports and we have small airports and APA all have an important role to play.” www.aci-apa.com


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10TH ANNIVERSARY SPECIAL

The opening chapter Max Moore-Wilton looks back with fond memories at the first 10 years of ACI Asia-Pacific region.

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hen Max Moore-Wilton speaks people generally listen because in terms of his career in business and politics – he was Secretary of the Department of the Prime Minister and Cabinet in his native Australia – he is a true heavyweight. So when Moore-Wilton called the merger of ACI’s former Asia and Pacific regions one of the most significant developments at ACI since its creation in 1991, people stood up and took notice. Ten years on, does Moore-Wilton, who has served as both the chairman of ACI World and first president of ACI Asia-Pacific, feel the same way? “Absolutely, because it was a recognition of the new world in terms of where aviation was heading,” he says. “When we [Australia] were in ACI Pacific, it was essentially the developed Pacific Rim, dominated by the US, Japan and to some extent Oceania. But the growth was clearly coming from outside of this area, so it was very important to move the focus more into growing Asia. “Asia was just starting to blossom and economies across the continent were beginning to grow, so it was the right time to do it and we did it, and the region has gone from strength to strength.” He notes that the new region is now the biggest and fastest growing in the world,

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records the highest earnings and has the best airports on the planet. Moore-Wilton believes the Pacific region’s decision to move its HQ to Hong Kong from Vancouver was a masterstroke and praises David Pang, the CEO of Hong Kong International Airport at the time for his support, and the work of Sharjah’s Ghanem Al-Hajri and Dubai’s Mohammed Ahli in getting the Middle East’s airports onboard. “The last ten years have seen the greatest period of change ever for airports and the pace of the technological changes are increasing,” states Moore-Wilton. What could the ACI Asia-Pacific region have done better? “I think we’ve done pretty well and I’m not critical at all of how we’ve done things,” he says, describing the last decade as one of “prudently managed development and growth”. “We are much more active in training, more active in helping the small airports in the region and we are very much more active on safety,” expands Moore-Wilton. “I think it’s been a learn as you go exercise and the trick is not to get too far ahead of yourself, do everything on a sound commercial basis and always make sure you have enough funds to pay your way. Which we have done by the way, so I would say that the organisation has been very responsible and supported the world and the region to APA the best of its abilities.” www.aci-apa.com


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Making milestones ACI World chairman, Fredrick Piccolo, joins other aviation leaders in congratulating ACI Asia-Pacific on turning ten. It’s no exaggeration to say that this region has produced some of the world’s most impressive and inspiring aviation stories over the years. A large part of ACI’s remit is to communicate the economic benefits that airports and aviation in general provide to local communities and the greater global marketplace. In this regard, the Asia-Pacific region’s contribution is exemplary. According to the Air Transport Action Group’s (ATAG) latest statistics, 1.2 million jobs were created at airports in the region in 2012. The Asia-Pacific air transport sector in general supported an impressive 5.7 million jobs. Aviation as a whole contributed a whopping $332 billion to GDP in Asia-Pacific. And the future for the region looks bright. Asia-Pacific’s passenger traffic accounted for roughly 33% of the worldwide total in 2014. By 2031, this percentage is expected to increase to over 40%. Furthermore, total passenger traffic in Asia-Pacific is expected to reach five billion by 2031. To give you an idea of the massive growth the region is experiencing, note that total worldwide passenger traffic reached the five billion mark just five short years ago. Needless to say, challenging but exciting days are ahead for the region. I’d like to congratulate ACI Asia-Pacific regional director Patti Chau, ACI Asia-Pacific president Dennis Chant and the entire ACI Asia-Pacific team on the excellent work they’ve put into being the voice of a region that is vast in both its geographical scope and its cultural diversity. Fredrick Piccolo, chair, ACI World and president and CEO of Sarasota-Manatee Airport Authority APA Issue 3, 2015


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This year marks the 10th anniversary of ACI Asia-Pacific. I would like to express my warmest congratulations to the region on behalf of Capital Airports Holding Company and myself. Today, Asia-Pacific is the biggest region of ACI in terms of traffic volumes. We owe this success to both the joint efforts of all member airports in the region and the strong leadership of our Regional Office. I am quite confident that our region will continue to grow rapidly and contribute even more to the prosperity of the global aviation industry under the leadership of our excellent region. Xue Song Liu, president and CEO, Capital Airports Holding Company

It has been 10 years since the Asia and Pacific Regions of ACI unified in 2006. On behalf of Shanghai Airport Authority, I extend my warmest congratulations to the ACI Asia–Pacific region on its 10th anniversary. Its endeavour and devotion of the last 10 years has helped the Asia-Pacific region make some significant achievements and develop into its prime. I sincerely hope and wish the Asia-Pacific region keeps growing prosperously and will have a better tomorrow! L i Derun, chairman of the board of directors, Shanghai Airport Authority

Over these past 10 years, the now combined Asia and Pacific region has undergone dramatic change and the most prominent growth in the world of aviation. Whilst reaping the benefits of this growth and development, airports in the region have faced numerous challenges to meet such robust demand. By continuing to develop a solid business foundation and provide effective and efficient services, ACI has enabled us to share the best practices and pursue common interests through the regional committee meetings and seminars. In recent years, co-operation has been reinforced with ICAO and IATA, which are our key industry partners. I look forward to further and stronger interaction between the ACI Asia-Pacific Regional Office and the member airports. Together we will lead the industry for a better future. Kenichi Fukaya, senior executive advisor, NAA

ACI has come a long way since its launch as the global voice of airports, following the merger of the two former international bodies of AOCI and ICAA more than twenty years ago. Likewise, ACI Asia-Pacific, which was formed 10 years ago to better serve members airports of the two regions of Asia and Pacific and to provide them with stronger representation at the world forum. I was privileged to serve in the formative years of ACI and to witness the birth of ACI Asia-Pacific. On this auspicious occasion of its 10th anniversary, may I offer ACI Asia-Pacific my heartiest congratulations and best wishes. Wong Woon Liong, senior advisor, Changi Airport Group (Singapore) Pte Ltd

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Learning from others Dubai Civil Aviation Authority director general, Mohammed Ahli, provides his recollections of the creation of ACI Asia-Pacific and thoughts on its progress over the past decade. WHAT WAS THE INITIAL REACTION TO THE PROPOSED MERGER OF ACI’S ASIA AND PACIFIC REGIONS?

There were reservations by some at first, but after serious consideration by all involved it was decided that unification was the best way forward for both the Asia and Pacific regions.

WHAT WERE THE RESERVATIONS ABOUT THE PROPOSED MERGER AND WHAT WERE VIEWED AS THE KEY BENEFITS?

There were reservations from the Pacific region, probably on the belief that the merger would dilute their status and the dominance within the region. At that time Hong Kong and China were fast developing and, of course, airports in Australia, New Zealand and the Pacific’s North American members such as San Francisco and Vancouver were already strong and well established. The key factor in Asia at the time was India. APA Issue 3, 2015

Benefits included the fact that the smaller, least developed and less privileged airports would gain the opportunity to have access to the resources and expertise of the most developed ones. This was true in terms of technology and best management practices. The Asia region brought in 224 airports and additional financial resources that supported the integrated ACI Asia-Pacific region. The region we created had more than 400 airports giving it extra strength while geographically it became largest region of ACI. I also believe that the addition of Asia’s heritage enhanced the diversity of the people of the Pacific region and led to greater co-operation among member airports.

HOW DID YOU AND YOUR COLLEAGUES AT ACI ASIA AND ACI PACIFIC MANAGE TO MAKE IT HAPPEN?

Considerable work and lobbying was done from 2004 onwards until an agreement


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was reached to merge the two regions. Key people that come to my mind are Dr David Pang [Airport Authority Hong Kong]; Toru Nakamura [NAA, Narita International Airport Corporation]; Ghanem Al Hajri [Sharjah International Airport], K. Ramalingam [Airports Authority of India], Osmond de Silva [Dubai Civil Aviation Authority]; and many others who worked tirelessly in this regard. The then director general of ACI World, Robert Aaronson, and Sydney Airport’s Max Moore-Wilton were very much in favour of the merger of the two regions. It took almost two years until the merger agreement was signed but it was worth the wait.

WHAT DO YOU THINK ARE SOME OF THE BIGGEST CHALLENGES FACING THE REGION GOING FORWARD?

Capacity constraints – we are going to need new terminals, runways, airports and operations-enhancing IT systems to cope with the forecast rise in demand over the next 20 to 30 years.

IF YOU WERE TO OFFER ONE PIECE OF ADVICE TO THE CURRENT REGIONAL DIRECTOR, WHAT WOULD IT BE?

Meet the future challenges faced by the region as one team bearing in mind the importance of smaller or developing airports.

HOW HAS THE INDUSTRY CHANGED OVER THE LAST 10 YEARS AND SPECIFICALLY HOW HAS IT CHANGED FOR YOU AND DUBAI?

The movement of passengers and aircraft has improved tremendously. Airports across the region have continued to develop their infrastructure to facilitate increasing demand and provide a more efficient and customerfriendy experience for passengers. New technology has played a major role in this transformation and helped reduce any negative impact on APA capacity constraints. www.aci-apa.com


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Ten and counting!

Heads of trade associations and industry organisations across the region congratulate ACI Asia-Pacific on its 10th anniversary. The International Civil Aviation Organization Asia and Pacific Regional Office considers Airports Council International as an important partner in the global civil aviation community. It also acknowledges the significant contribution of ACI to International Civil Aviation to promote professional excellence in airport management and for striving to set high standards of safety, security and environmentally compatible and efficient air transport system. Congratulations to ACI on its 10th anniversary of the unification of the Asia and Pacific regions and wishing all success in your future endeavours. Arun Mishra, regional director, ICAO, Asia and Pacific Office

Globally, more than three billion passengers fly annually. Of these, Asia Pacific Airlines currently carry over one billion passengers a year, and this market is expected to increase up to threefold over the next two decades. In addition to significant investments in expanding aircraft fleets, major investments will also be needed in associated aviation infrastructure, including airports and air navigation services, to keep pace with this expected growth in demand for air travel. Airports in the Asia-Pacific region are already well-known for being leaders in global connectivity and quality of customer service, and are well-placed to meet this demand. I offer my warmest congratulations to ACI Asia-Pacific on the occasion of their 10th anniversary, and look forward to many more years of success and partnership in promoting the growth and sustainable development of the region’s aviation industry. Andrew Herdman, director general, Association of Asia Pacific Airlines

The vast and rapid growth of the tourism sector, especially in the Asia Pacific region, presents great challenges for the travel and tourism industry, and through partnerships with the public and private sectors as well as other industry colleagues can we hope to tackle the many issues ahead of us. It is always important to be reminded that the interconnected and interdependent Compete Visitor Economy delivers cross-cultural understanding and poverty alleviation through cost-effective job creation. Therefore it is important for organisations such as ours to recognise and celebrate our achievements. Therefore, it gives me great pleasure to congratulate ACI on the many successes it has accomplished over the past 10 years. At PATA, we look forward to further engaging and supporting ACI and its many activities in the future. Mario Hardy, chief executive officer, Pacific Asia Travel Association

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ASIA-PACIFIC AIRPORTS MAGAZINE

ACI World’s senior manager environment, Xavier Oh, reflects on ten years of environmental stewardship in the Asia-Pacific region.

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CI’s Asia and Pacific regions merged to form the largest and fastest growing region shortly after I joined ACI in Montréal ten years ago. At that time, there were a couple of airports active on the World Environmental Standing Committee (WESC), but there was virtually no intra-regional interaction on environmental management issues. Jump forward ten years and the landscape is unrecognisable. Here’s a look at how the region got to where it is.

MILESTONE EVENTS

The ACI Asia-Pacific Regional Office and its Board have played a major role in getting the airports in the region working together. The increasing importance of environmental management and growing concerns about aviation’s impact on the environment in 2009 led to the Board accepting a proposal from the Regional Office to establish an ACI Asia-Pacific Regional Environment Liaison Group to work

on issues related to aviation’s impact on the environment and measures to mitigate it. In November 2011, the region became the first outside of Europe to adopt Airport Carbon Accreditation. Currently there are 25 accredited airports in the region representing 24% of the region’s passenger traffic and of these six airports in four countries are accredited at Level 3 Optimisation including three in India. The regional environment liaison group was upgraded to a Regional Environment Committee (REC) in 2013 and started holding biannual meetings in order to better develop best practices and formulate Asia-Pacific’s input to ACI World’s Environment Standing Committee and ICAO’s Committee on Aviation Environmental Protection.

LEADING BY EXAMPLE

And the airports/airport operators of REC’s committee members have certainly led by example. Mumbai-Chhatrapati Shivaji – the airport of Immediate past chair, Narendra Hosabettu – has achieved Level 3 in Airport Carbon Accreditation. www.aci-apa.com

10TH ANNIVERSARY SPECIAL

Going green

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10TH ANNIVERSARY SPECIAL Something a little different: Singapore Changi’s ‘Green Wall’ is made up of 25,000 climbing plants and four waterfalls.

Current chair, Mike Kilburn, is from the Airport Authority of Hong Kong, whose ambitious goal is for Hong Kong International Airport to be world’s greenest airport. While vice chair, Jakrapop Charatsri, is from Airports of Thailand, which has used ACI’s ACERT tool to get four airports carbon accredited. In its first couple of years the committee has started to find its feet. At least five Asia-Pacific members and two World Business Partners now provide support to the WESC and airport input on the ICAO Committee on Aviation Environmental Protection (CAEP) work programme. Kuala Lumpur hosted ACI’s third Airport Environment Seminar in 2014.

EXPANDING ROLE

It is currently conducting a survey on airport environmental activity and needs, as well as work promoting Airport Carbon Accreditation and ACERT. And in partnership with our airline partners at IATA, the REC is developing a document to standardise airline and airport practices on the recycling of deplaned cabin waste material. Another task undertaken by the committee has been the analysis and promotion of Reduced Engine Taxi (RET). The efforts of REC secretary, Ken Lau, from ACI Asia-Pacific, must also be acknowledged. APA Issue 3, 2015

OTHER GREEN HIGHLIGHTS

The environmental successes and achievements of Asia-Pacific’s airports is as wide and varied as the region itself. At the risk of missing some excellent examples, I mention a few that have caught my attention. • Some 21 of Malaysia Airports Holdings Berhad’s 39 airports now track their CO2 emissions using ACI’s free tool ACERT. • The two airports in the South Australian capital, Adelaide and Parafield, have set Zero Waste goals. • During a major drought, Brisbane International Airport managed to reduce its potable water consumption by 75%. • Delhi International Airport has opened a 2.1 MW solar power plant. • Incheon Airport has installed LED lighting throughout as well as building 18 kilometres of bicycle paths. • Hong Kong International Airport successfully engaged 46 airport business partners to map and reduce carbon emission together. On occasions like the 10th anniversary of the unification of ACI’s former Asia and Pacific regions, I think it is great to look back at some of the green achievements within the region and by the ACI Regional Office. While there is always more to do, I feel confident that the motivations and the organisational structures for sharing best APA practice are firmly established.


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10TH ANNIVERSARY SPECIAL

Winning combination

Former NAA president, Toru Nakamura, reflects on the creation of ACI’s Asia-Pacific region, the key role he played in it and on the possible challenges ahead.

I

take this opportunity to offer my sincere congratulations on the 10th anniversary of the merger of the ACI Asia and Pacific regions, and to express my deepest respects to all of those who work so hard to make ACI’s activities so worthwhile. I was honoured to serve as vice chair of the ACI World Governing Board and as president of the ACI Pacific Regional Board and as such devoted my efforts to airport development with ACI over an extended period of time. Looking back at the time prior to the merger, the environment surrounding the aviation industry saw a pressing need to step up integration to another level with the continuing trends in globalisation. The importance of combining the Asia and Pacific regions to act as one large region became increasingly obvious and the Asia region, which sought to invigorate ACI activities, approached the Pacific region on the feasibility of merger. For the Pacific region, it was believed that a merger with the Asia region would allow it to provide more effective, efficient services to members and enable it to make a greater contribution to the growth of ACI as a whole. APA Issue 3, 2015

Consequently, a consensus was formed to push ahead with the merger and I was assigned as the chairman of a task force, established in 2004, with the objective of combining the two regions. I met individual members face-to-face to co-ordinate the views of both regions in the face of their different regulations and customs, and worked to gain a consensus on a post-merger concept. Those members took an extremely co-operative approach to the merger and just two years after the initial concept of combining the two regions was raised, it became a reality. For these reasons I believe that the actual merger of the two regions into one unified and united region remains ACI Asia-Pacific’s greatest achievement to date. With the expectation of the ongoing growth in demand for aviation, the newly created Asia–Pacific region was in a prime position to become ACI’s most influential region and a driving force of the organisation, and I think over the last 10 years it has gone a long way towards doing just that. The market is very different today than ten years ago, particularly in my home country of Japan, but with the gradual recovery of the economy, I am confident


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10TH ANNIVERSARY SPECIAL

that we will see growth in aviation going forward and indeed right across the Asia-Pacific region. For Japan, events like the 2020 Summer Olympics in Tokyo will see a concerted increase in demand. I think the biggest challenge and opportunities facing ACI Asia-Pacific and the region’s airports going into the next decade will be meeting the needs of the next generation of passenger. Regional demand for aviation will increase significantly with rapid economic growth across Asia-Pacific. As it does, the quality of that demand will also undergo enormous changes. How we respond to that will, in my view, be the biggest challenge for ACI Asia-Pacific and the airports in the region.

Congratulations ACI Asia-Pacific

Airports in Asia and the Pacific regions play a major role in enhancing the inter-connectivity of people and goods and ACI is a vital platform for helping them realise their huge economic potential. In the past 10 years, much has been accomplished and total volumes of passengers and freight have increased by 176% and 64% respectively since the regions’ unification. The ACI platform facilitates information exchange and experience sharing among the regions, hence optimising airports’ mutual learning and growth. As a result the Asia and Pacific regions proudly house many of the world’s best airports for delivering outstanding customer services to passengers. As a former president of ACI Pacific and one of the founders of the region, I believe the airports of Asia-Pacific will continue to grow and that ACI will continue to be the critical driving force, raising their stature and fuelling airport growth in the decade to come.” Dr David Pang, former chairman of ACI Pacific It is indeed a wonderful feeling to see that all the efforts made to bring this union have borne such excellent results. Looking back, unification wasn’t easy to achieve and it took a lot of hard work from members in Asia and the Pacific to get everyone to understand the great benefits of creating a single all encompassing ACI region. When I came up with the idea of unification between Asia and Pacific region I was very persistent, although it took me two years to convince the Pacific regional to accept the merger. The results of the last ten years speak for themselves about the benefits of unification. My sincere congratulations to ACI Asia-Pacific, its members and many old friends on achieving this landmark. I am confident that this unified body will only reap more and more success in the years ahead. Dr Ghanem Al-Hajri, former chairman of ACI World www.aci-apa.com

APA


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10TH ANNIVERSARY SPECIAL

Every picture tells a story

Asia-Pacific Airports provides a picture round-up of some of the sights and sounds from the first decade of ACI Asia-Pacific.

APA Issue 3, 2015


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10TH ANNIVERSARY SPECIAL www.aci-apa.com


World Business Partners that have helped make ACI Asia-Pacific a success offer their thoughts on the anniversary.

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ome of ACI Asia-Pacific’s biggest supporters pay their own personal tributes to the Regional Office. SITA’s vice president, Catherine Mayer, said: “The coming together of airport and World Business Partner (WBP) members from throughout the Pacific and Asia regions has brought a unique opportunity to leverage members’ diverse strengths, dynamic growth, and outstanding service. “From the creation of the new organisation through today and into the future, SITA is proud to celebrate with you, enjoying true benefits including access to a much broader group of airports and partner leaders, opportunities to strategise, educate and share ideas, and network through committee meetings, conferences and other events. “We look forward to another productive 10 years ensuring our industry remains safe, secure, offering best in class services to all customers.” While Arconas Solutions’ vice president and regional administrator for ACI Pacific between 1994-1998, Lynn Gordon, noted: “It is remarkable that 10 years have already passed since the historic unification of the Pacific and Asian regions of ACI took place. “The unification idea first took flight as an idea discussed between the two Regional Boards back in the mid-nineties. Cooperation between the two regions was always present and Asian members were enthusiastically welcomed at Pacific

meetings and vice-versa. It was exciting to see the merger finally become a reality. Congratulations to ACI Asia-Pacific on this milestone anniversary!” Meanwhile, Airbiz managing director, Greg Fordham, chair of the ACI WBP Advisory Board and another permanent fixture at ACI Asia-Pacific confereneces, offered: “As an older member of the industry I have fond memories of the much smaller ACI Pacific gatherings at various exotic locations around the Pacific. However, it has been fantastic to watch the dramatic transformation into a large, strong and unified Asia and Pacific Region providing valuable services to the membership. “In particular, recognition must be made of the strong leadership demonstrated by Max Moore-Wilton as the inaugural president, admirably followed by Tan Sri Bashir and now continued by Dennis Chant. This has been supported by an extremely efficient Regional Office team led by Maggie Kwok for five years and now striding forward under the direction of Patti Chau. “I was privileged to serve as the World Business Partner representative on the Regional Board for eight years and assist in growing the WBP membership and developing the programme of activities and services. “I look forward to continued involvement with ACI APAC as its airport members experience even more dramatic growth and APA development over the coming years.” www.aci-apa.com

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Leading the way

ASIA-PACIFIC AIRPORTS MAGAZINE


ASIA-PACIFIC AIRPORTS MAGAZINE

The final word on the region’s 10th anniversary. Over the past decade, ACI has played a fundamental role in bringing together the wider aviation community and promoting quality and excellence in airport management and operations. In doing so, ACI has also facilitated greater connectivity and co-operation between airports in Asia and the Middle East, and reflected the growing importance of the markets it covers across China, Australasia and the UAE. Since the inception of our travel retail business in 1960, DFS has been committed to serving the global traveller and we continue to meet their evolving needs. As an active, long-term World Business Partner (WBP) member of ACI and vice chair of the ACI WBP Advisory Board, DFS values the opportunity to connect with key stakeholders and keep them informed about our business, as well as sharing knowledge, opportunities and developments across the industry. DFS wishes the whole ACI team every success in supporting our common endeavour for many more years to come. DFS Group Limited

The Asia Pacific Travel Retail Association (APTRA) congratulates ACI Asia-Pacific on a decade of successful representation on behalf of the hundreds of commercial airports across the A sia-Pacific region. The most successful airports now boast a string of luxury boutiques and a line-up of high quality retail and food & beverage outlets to which the most prestigious city mall would aspire. Airports have and will continue to evolve into world-class international shopping venues. Together ACI Asia-Pacific and APTRA are building the future of civil aviation in the region, supporting our members, benefitting the consumers, working in tandem - one passenger kilometre and one shopping bag at a time. Jaya Singh, president, Asia Pacific Travel Retail Association (APTRA) 

On behalf of China Civil Airports Association (CCAA), I would like to convey my cordial congratulations to you on this occasion. In China, the number of airports handling more than 10 million passenger annually has reached 24. In 2014, Beijing Capital International Airport and the Shanghai Airport Group handled 86.12 million and 89.62 million passengers respectively. Ten new airports were opened and others successfully expanded. The growth of low-cost airlines, general aviation and benefits from logistics integrity will open a wider sky for aviation market in China in the futre. CCAA is committed to co-operating with ACI to enabling more business, optimising resources and serving our members more efficiently. Our commitment is to improve accessibility in APAC region and to build China’s airport system in a sustainable, ecologically friendly and highly efficient way. Xia Xinghua, president, China Civil Airports Association

www.aci-apa.com

10TH ANNIVERSARY SPECIAL

Growing together

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IT INNOVATION

The power of IT

New technology is driving change for good across the air transport industry, argues SITA CEO, Francesco Violante.

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ust ten years ago, we could never have envisioned the impact technology would have on the air transport environment. From mobile booking to self-service check-in kiosks, automated boarding gates and automated passport kiosks complete with advanced biometrics, technology now touches every stage of the passenger journey. According to the annual SITA Passenger Survey, 97% of passengers carry a smartphone when they travel, and one in five passengers travels with three mobile devices: a smartphone, tablet and laptop. These passengers expect to remain connected, both on the ground and increasingly in the air on “connected aircraft”.

PERSONAL SERVICE

The adoption of new technologies has grown significantly in recent years, and passengers increasingly want more. Today, more than three-quarters of passengers use airline apps, and 56% want connectivity so that they can use their smartphone, tablet or laptop for in-flight entertainment. Passengers also expect more personalised apps and services delivered to their phone or tablet via social media. For example, 53% of passengers would like personalised alerts about delays sent APA Issue 3, 2015

directly to their phones and 30% expect support via social media when things go wrong. The air transport industry needs to be at the forefront of new technologies. This will enable airlines and airports to engage directly with their passengers and create a more seamless, personalised passenger experience. Looking forward ten years, we can expect five major trends to continue to shape the passenger experience: a shift to apps, the Internet of things and the subsequent data explosion, wearable technology, biometrics, and proximity sensing and beacons.

A SHIFT TO APPS

We are in the midst of a shift from web browsers to mobile apps. There are now apps available to control everything from the electronics in our homes to our health. The App for Everything world is around the corner and it will complement the Internet of Things. As an early example, downloads from Apple’s App Store are estimated at more than 50 billion, with around 800 apps downloaded every second. Airlines and airports globally are actively developing mobile apps to enhance the passenger experience. According to our recent industry surveys, 84% of airports plan to launch mobile apps over the next three years, and 95% of airlines are focused on enhancing their mobile apps.


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IT INNOVATION

check that you turned off the coffee machine and activate your security alarm. This will all generate a vast amount of data, which will have significant potential business value for companies that can analyse the data and extract meaningful business intelligence. It will also provide new data to feed and control other connected devices, such as airport operations systems, which will enhance the passenger experience.

WEARABLE TECHNOLOGY

THE INTERNET OF THINGS AND THE DATA EXPLOSION

The Internet of Things is producing a huge amount of data. This includes data generated by machine-to-machine interaction, in which devices are connected to sensors, and they become self-monitoring, self-controlling and self-optimising without any human interaction. Imagine arriving at the airport with your smartphone and having an Internetenabled car parking robot and luggage robot meet you to park your car and take your luggage. Then imagine using your smartphone to turn down the heat at home,

Wearable technology is also poised to have a big impact on the air transport industry. Our strategic research and development team, SITA Lab, last year successfully trialled Google Glass applications with Virgin Atlantic and Copenhagen Airport. In both cases, the smart technology helped improve customer service by enabling agents to quickly access passenger details and operational data. We can expect to see wearable technology launched more widely in the future. According to the recent SITA Passenger Survey, 77% of passengers are comfortable with wearable tech if it helps support their journey. www.aci-apa.com


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IT INNOVATION SITA CEO, Francesco Violante.

BIOMETRICS

Biometrics are just beginning to appear in the air transport environment. Many of the major airports in the US now have Automated Passport Control kiosks for self-service immigration. Passengers simply scan their passports, provide their fingerprints and a camera on the kiosk captures their face biometric, while passenger validation takes place automatically in the background. The entire process takes just 60 seconds. Another interesting aspect of biometrics is the integration into wearable technology. SITA Lab is exploring the use of “persistent identity” in a wristband. The wristband uses your heartbeat like a password and provides authentication with a mobile device such as a smartphone. We envisage passengers wearing these wristbands for authentication at control points. As the technology improves, biometrics could eliminate the need for boarding passes altogether. And when combined with proximity sensing, biometrics give the industry an opportunity to provide an end-to-end passenger process that is seamless, intuitive and secure. APA Issue 3, 2015

PROXIMITY SENSING AND BEACONS

Proximity sensing, which relies on sensors to detect the presence of nearby objects, can link airport and airline technology to passengers’ mobile phones. This will enable us to access new data and gain unprecedented insights into passenger flow and behaviour at the airport. Using aggregated and anonymous geo-location data, airport operators can keep an eye on passenger flows and adjust operational procedures to smooth out the peaks. They can also give passengers accurate queuing times at security and other bottlenecks, helping avoid congestion. While passenger flow data is aggregated and anonymous, beacon technology can create more personalised communications to passengers. A beacon is a low powered wireless transmitter that sends out a Bluetooth signal over a radius of up to 50 metres. Combine this with an app and you can trigger context-relevant messages or actions on a smartphone at specific locations. This might be as simple as a welcome message or a flight status update as a passenger arrives at the airport. It could also be a mobile boarding pass on the smartphone at control points or a personalised offer for airport shops APA and restaurants.


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AIRLINES

Looking to Asia Hawaiian Airlines president and CEO, Mark Dunkerley, talks about business strategies and the importance of the Asian market to his airline. WHAT ARE YOUR THOUGHTS ON THE AIRLINE’S PERFORMANCE IN 2014?

Last year was a great one for the company and we’re looking forward to an even better 2015. The strategy we’ve employed since 2010 – and arguably even before that – has started bearing fruit. The airline has been profitable throughout this time despite the company doubling in size, but 2014 was the year when we really began to see the full effects of the strategy. Hawaiian embarked on an ambitious growth strategy in Asia that started with the arrival of our Airbus 330-200 aircraft and has continued right through to the inauguration of our Beijing service early last year.

WHAT IS YOUR ROUTE DEVELOPMENT STRATEGY?

We sell Hawaii as a destination. We’re very fortunate to be based in an incomparably beautiful part of the world. So the aim is to bring to Hawaii all those people who want to come to Hawaii. There is a natural focus on Asia because the spending power in that region is increasing all the time and Hawaii is often one of the first places that people want to visit. As for North America, our airline is well-established and obviously that is a strong market for us too. APA Issue 3, 2015

Of course, our main strength is flying between the Hawaiian Islands. There are no bridges and no ferries transporting people on a convenient daily basis. So the people sitting on our aircraft can include high school athletic teams going off to compete against another school, or perhaps people flying to one of the larger islands for medical treatment. The inter-island routes are big business. More people fly between Honolulu and Maui, for example, than between New York LaGuardia and Washington National.

HOW IMPORTANT IS THE AIR CHINA DEAL AND WHAT ROLE WILL CHINA PLAY IN YOUR FUTURE NETWORK?

Our partnership with Air China is extremely important to us. The Chinese market to Hawaii is relatively small at the moment but it is growing rapidly and has the potential to be huge. The Air China codeshare allows us to serve the market properly. Hawaii and Hawaiian Airlines are ideally placed to take advantage of the potential for air travel to/from China.

HOW FAR DO YOUR INTERNATIONAL AMBITIONS GO?

We’re certainly looking at Europe but the A330-200 doesn’t have the range to fly there non-stop, and if you make it a one-stop


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service it becomes very hard to differentiate your product. As for Asia, we really are spoilt for choice. It is a good problem to have when you must choose between attractive alternatives. It may be that we will look at other destinations in China or we may decide to go to countries where we don’t have a presence at the moment.

major expansion at Honolulu International Airport in over 20 years. Work is still in its early stages because of the RFP process and suchlike. Progress has been slower than we hoped for, but our enthusiasm for the project has not dimmed. But it is not just Honolulu. Maui, Hilo, Kona, Lihue, Lanai and Molokai airports are also in need of some updating.

DOES YOUR HONOLULU HUB NEED TO IMPROVE – AND IF SO, HOW?

WHAT IS IT LIKE TO BE A BRIT LIVING AND WORKING IN HAWAII?

A lot of work needs to be done at the airport, and I don’t think anybody would disagree. There is a multi-billion-dollar airport modernisation plan, which will largely be funded by the airline. This includes taxiway widening, which will enable several new projects including the construction of a new maintenance hangar and cargo facility for Hawaiian Airlines, and the addition of widebody gates to our terminal. It is the first

We’re all very fortunate to be living and working here. Hawaii is a fascinating place and by far the most culturally mixed environment I’ve ever experienced – more so than even the most cosmopolitan city. So I don’t stick out! The common element is hospitality, and the last thing I want to do is change that. So my job is to set a direction for the airline and keep out of the way to let APA our employees do what they do best. www.aci-apa.com


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WBP NEWS

WORLD BUSINESS PARTNERS

IN THE SPOTLIGHT WBP PROFILES

EXPANSION ON THE MENU It has been a good few months for SSP Asia Pacific, which has won a $A90 million contract to run five new restaurants and cafes at Hobart International Airport, a $A68 million deal to operate three outlets in Sydney Airport’s Domestic Terminal and been chosen to create 11 new F&B outlets at Hong Kong International Airport. With regards to the latter, SSP Hong Kong has been working in conjunction with a number of leading brands to develop the extended facilities at a new dining precinct called the ‘East to West Food Market’ at the West Hall of HKIA. These will include Asian favourites Yung Kee Restaurant, Chee Kei and Tai Hing, alongside international names such as O’Learys and Burger King. Chris Rayner, CEO of SSP Asia Pacific commented: “This is an exciting project in what continues to be one of SSP’s largest markets in the Asia-Pacific region.” The Sydney deal follows a $A45 million (approximate) contract win to open four popular new concepts at Sydney Airport’s T1 earlier this year. Talking about the latest five-year Sydney contract, the gateway’s general manager, Glyn Williams, said: “The exciting range of new food partners at T2 will revitalise the food and dining experience and we’re excited to create an Australian airport first by introducing Chur Burger, an exceptional quality burger brand, into T2.” APA Issue 3, 2015

HASSELL Location: Sydney, Australia Contact: Mark Wolfe, principal (OR); Alan Christmas, principal (AR) Email: mwolfe@hassellstudio.com; achristmas@hassellstudio.com Website: www.hassellstudio.com HASSELL is a leading international design practice with studios in Australia, China, South East Asia and the United Kingdom. Mark Wolfe believes the future for aviation clients is about Smart Airports that support faster and smoother processes, seamless integration of evolving technologies and, ultimately, deliver exceptional passenger experience. The company equips clients to meet these challenges head on and delivers airport infrastructure that provides a long-term and sustainable return on investment for clients. Avisure Location: Burleigh Heads, Gold Coast, Australia Contact: Phil Shaw, managing director (OR); Matt Smyth, chief executive officer (AR) Email: pshaw@avisure; msmyth@ecosure.com.au Website: www.avisure.com Avisure is one of the world’s leading companies in the field of airport wildlife hazard management. It offers dedicated risk management strategies and services that can be applied worldwide to manage the incidence of wildlife strikes. Since 1996, Avisure’s team of experts have worked with over 60 airports around the world, and for airlines, regulators and the military. Avisure is compliant with international standards for Environment (ISO 14001), Quality (ISO 9001) and Safety (AS/NZS 4801).


Asia Pacific Airports Magazines, Issue 3, 2015  

• Interviewed: ACI Asia-Pacific’s founding fathers • History and highlights: Review of the first decade • Going green: Environmental initi...

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