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On behalf of the whole team at Industry AVIATION Magazine we would like to extend a warm welcome to our latest issue.
In 2023 the airline industry is expected to tip into profitability. Airlines are anticipated to earn a global net profit of $4.7 billion on revenues of $779 billion (0.6% net margin). This expected improvement comes despite growing economic uncertainties as global GDP growth slows to 1.3%. Despite the economic uncertainties, there are plenty of reasons to be optimistic about 2023. Lower oil price inflation and continuing pent-up demand should help to keep costs in check as the strong growth trend continues. At the same time, with such thin margins, even an insignificant shift in any one of these variables has the potential to shift the balance into negative territory. Vigilance and flexibility will be key.
The passenger business is expected to generate revenues of $522 billion. Passenger demand is expected to reach 85.5% of 2019 levels over the course of 2023. Much of this expectation considers the uncertainties of China’s Zero COVID policies which are constraining both domestic and international markets. Nonetheless, passenger numbers are expected to surpass the four billion mark for the first time since 2019, with 4.2 billion travellers expected to fly. Passenger yields, however, are expected to soften (-1.7%) as somewhat lower energy costs are passed through to the consumer, despite passenger demand growing more quickly (+21.1%) than passenger capacity (+18.0%).
Cargo markets are expected to come under increased pressure in 2023. Revenues are expected to be $149.4 billion, which is $52 billion less than 2022 but still $48.6 billion stronger than 2019. With economic uncertainty, cargo volumes are expected to decrease to 57.7 million tonnes, from a peak of 65.6 million tonnes in 2021. As belly capacity grows in line with the recovery in passenger markets, yields are expected to take a significant step back. IATA expects a fall of 22.6% in cargo yields, mostly in the latter part of the year when the impact of inflation-cooling measures are expected to bite. To put the yield decline in context, cargo yields grew by 52.5% in 2020, 24.2% in 2021 and 7.2% in 2022. Even the sizable and expected decline leaves cargo yields well-above pre-COVID levels.
Overall costs are expected to grow by 5.3% to $776 billion. That growth is expected to be 1.8 percentage points below revenue growth, thus supporting a return to profitability. Cost pressures are still there from labour, skill, and capacity shortages. Infrastructure costs are also a concern. Nonetheless, non-fuel unit costs are expected to fall to 39.8 cents/available tonne kilometre (down from 41.7 cents/ATK in 2022). Airline efficiency gains are expected to drive passenger load factors to 81.0 %, just slightly below the 82.6% achieved in 2019.
The total fuel spend for 2023 is expected to be $229 billion—consistent at 30% of expenses. IATA’s forecast is based on Brent crude at $92.3/barrel. Jet kerosene is expected to average $111.9/barrel. This decrease reflects a relative stabilization of fuel supply after the initial disruptions from the war in Ukraine. The premium charged for jet fuel remains near historical highs.
The expected profits for 2023 are razor thin. But it is incredibly significant that we have turned the corner to profitability. The challenges that airlines will face in 2023, while complex, will fall into our areas of experience. The industry has built a great capability to adjust to fluctuations in the economy, major cost items like fuel prices, and passenger preference. We see this demonstrated in the decade of strengthening profitability following the 2008 Global Financial Crisis and ending with the pandemic. And encouragingly, there are plenty of jobs and the majority of people are confident to travel even with an uncertain economic outlook.
Passengers are taking advantage of the return of their freedom to travel. A recent IATA poll of travellers in 11 global markets revealed that nearly 70% are traveling as much or more than they did prior to the pandemic. And, while the economic situation is concerning to 85% of travellers, 57% have no intention to curb their travel habits.
Yours sincerely, The Industry AVIATION Editorial Team
CONTENTS
the months. While only Terminals 1 (T1) and 3 (T3) were serving passengers at the start of the year 2022, Changi reopened Terminal 4 (T4) in September 22 and the southern wing of Terminal 2 (T2) in October 22, to cater to the surge in both outbound and inbound travel demand.
42 BEIJING DAXING INTERNATIONAL AIRPORT –DEVELOPED FOR THE FUTURE Beijing Daxing opened for operations in September 2019, following more than four years of construction. The new Daxing airport serves as north China’s commercial aviation hub. The airport is operated by Beijing Capital International Airport Company.
24 10 42 50 74
6 SITA – AVIATION CIOS RAMP UP DIGITAL TECHNOLOGY INVESTMENTS TO MEET DEMANDS OF SWIFT RECOVERY
Faced with increased disruptions, baggage mountains, and staff shortages, airports and airlines are ramping up their investment in technology to digitalize their operations and speed up the passenger journey by offering more self-service options.
10 HONG KONG INTERNATIONAL AIRPORT – DEVELOPING TO REACH NEW HEIGHTS
Jack So, Chairman of AAHK thanks all airport business partners and their staff for their continuous efforts in taking forward the airport development projects during the challenging times. The HKIA Community Building not only serves the staff of AAHK, but the entire airport community with a wide array of leisure facilities. Staff is the most precious asset. AAHK will continue to work with its business partners to enhance staff well-being and make HKIA an ideal workplace.
24 CHANGI INTERNATIONAL AIRPORT – RECOVERY AND FINISHING 2022 ON TOP ACROSS THE ASIA PACIFIC REGION
The year 2022 has been one of strong recovery for Changi Airport. With the relaxation of travel restrictions in April 2022, Changi Airport saw passenger and flight movements rise steadily through
50 INCHEON INTERNATIONAL AIRPORT – LOOKING TO THE FUTURE WITH AN OPTIMISTIC OUTLOOK
Kim Kyung-Wook, CEO of Incheon International Airport confirms that due to the prolonged COVID-19 shutdowns from China and other countries, they expect the travel demand to rebound by 2025. He confirms that for 2023, they believe that international travellers will surge by 59% conservatively and by 75% in an optimistic outlook.
64 THE MIDFIELD TERMINAL BUILDING - ABU DHABI – IN THE FINAL PHASE
Frank McCorie, Chief Operating Officer at Abu Dhabi Airports has confirmed, that the project is where they want it to be. It is on programme. There is a whole load of activity taking place, so it is really in its final phases. They are finishing trialling it and staff have to be familiar with it.
74 KING ABDULAZIZ INTERNATIONAL AIRPORT – THE GATEWAY FOR HAJJ AND UMRAH PILGRIMS
The most important airport in the Kingdom, being the gateway for Hajj and Umrah pilgrims to the Holy Mosque in Makkah. It is also home to the world’s fourth largest terminal in the world: the Hajj terminal, a whopping 510,000 square meters in size.
Aviation LATEST NEWS
– 31 January 2023 – Faced with increased disruptions, baggage mountains, and staff shortages, airports and airlines are ramping up their investment in technology to digitalize their operations and speed up the passenger journey by offering more self-service options.
SITA’s latest Air Transport IT Insights report reveals accelerated digitalization to help airlines and airports meet rising passenger demand
SITA’s 2022 Air Transport IT Insights report, published today, reveals that with the post-pandemic recovery CIOs want to ensure operations are as agile and resilient as they are efficient, with IT solutions seen as central to their success. This has spurred an acceleration of digitalization, with airlines and airports looking to key technology solutions to fortify their operations against disruption while automating the passenger experience.
The industry’s IT spend is projected to continue its steady year-on-year growth trend since 2020 to support this push for digitalization, with a full 96% of airlines and 93% of airports expecting their IT spend to stay
the same or increase in 2023 compared to 2022. Last year airline and airport IT spend rose to an estimated 37 billion USD and 6.8 billion USD respectively.
David Lavorel, CEO, SITA, said: “Air travel has recovered faster from the pandemic than anyone in the industry had initially expected, particularly in Europe and the US. While the recovery is welcome, airports and airlines have found themselves on the back foot with staff and resource shortages. This has put strain on operations, resulting in an increased risk of congestion, delays, cancellations and mishandled baggage.
Digitalization is seen as key to addressing these challenges, providing more scalability and flexibility.”
Digitalizing operations to achieve more with less
Airlines are placing great emphasis on IT tools to manage irregular operations and provide the best passenger experience possible even amid staff shortages. Over the next three years, 90% or more of airlines are investing in IT service management enhancement and disruption warning systems, as well as business intelligence initiatives for aircraft turnaround
management, passenger processing, and baggage processing.
Business intelligence solutions are at the forefront of airport IT investment priorities too, with 93% or more planning business intelligence initiatives for asset management and flight operations by 2025. The emphasis on agility, adaptability to disruption, and prompt communication with customers and stakeholders is clear; by 2025 half of airports are seeking to implement automated predictive alerts prior to flight disruption events as well as business intelligence initiatives to enable scaling of operations based on demand.
Streamlining the passenger journey with smart technologies
Both airlines and airports are investing in key technologies to smooth the passenger experience across every step of the journey, to help curb bottlenecks and in turn allow redistribution of key staff resource to focus on more complex tasks. Biometrics and self-service technologies are seeing major emphasis.
Airlines have identified self-service technologies as key to helping manage irregular operations, and this remained their top investment priority in 2022, with touchless solutions and biometric ID management following closely.
To support effective baggage management and empower passengers following a period of significant disruption, a majority of airlines plan to provide real-time baggage tracking information to passengers by 2025.
Airports are similarly prioritizing self-service initiatives, placing strong emphasis on self check-in and self- bag drop, with 86% planning implementation by 2025. Airports’ implementation of a secure single biometric token across all touchpoints has surged from just 3% in 2021 to 39% in 2022, with over half planning implementation over the next three years. This signals a strong commitment to the next- generation travel experience where passengers can breeze through the airport using their face as their boarding pass.
GENEVA
AVIATION CIOS RAMP UP DIGITAL TECHNOLOGY INVESTMENTS TO MEET DEMANDS OF SWIFT RECOVERY
AIRPORT
HONG KONG INTERNATIONAL
Developing to Reach New Heights
“We are honoured to receive this award, which demonstrates the HKIA cargo community’s professionalism and commitment to service excellence. We will spare no efforts in working with the air cargo community to offer the best service with a view to maintaining HKIA’s position as the airport of choice for cargo delivery.”
Hong Kong International Airport is Hong Kong’s main airport, built on reclaimed land on the island of Chek Lap Kok, Hong Kong. The airport is also referred to as Chek Lap Kok International Airport or Chek Lap Kok Airport, to distinguish it from its predecessor, the former Kai Tak International Airport.
Having been in commercial operation since 1998, Hong Kong International Airport is one of the largest trans-shipment centres, passenger hubs and gateways for destinations in Hong Kong, greater China, Asia, and the world. The airport is the world’s busiest cargo gateway and one of the world’s busiest
passenger airports. It is also home to one of the world’s largest passenger terminal buildings (the largest when opened in 1998).
The airport is operated by the Airport Authority 24 hours a day and is the primary hub for Cathay Pacific (the flag carrier of Hong Kong), Greater Bay Airlines, Hong Kong Airlines, HK Express and Air Hong Kong (cargo carrier). The airport is one of the hubs of Oneworld alliance, and also one of the Asia-Pacific cargo hubs for UPS Airlines.[5] It is a focus city for China Airlines and China Eastern Airlines. Ethiopian Airlines utilise Hong Kong as a stopover point for their flights.
HKIA is an important contributor to Hong Kong’s economy, with approximately 65,000 employees. More than 100 airlines operate flights from the airport to over 180 cities across the globe. In 2015, HKIA handled 68.5 million passengers,[4] making it the 8th busiest airport worldwide by passenger traffic and the 4th busiest airport worldwide by international passenger traffic.[6] Since 2010, it has also surpassed Memphis International Airport to become the world’s busiest airport by cargo traffic (except
in 2020 due to the COVID-19 pandemic).
The airport is managed and operated by the Airport Authority Hong Kong (AA), which was established on 1 December 1995. To facilitate the increased traffic due to the third runway, Terminal 2 has been undergoing redevelopment since 2019 and will not reopen until at least 2024.
The Third Runway at Hong Kong International Airport (HKIA) was officially commissioned on 25th November 2022, marking a key milestone of the airport’s expansion into a Three-runway System (3RS).
The commissioning ceremony, held at the new Integrated Airport Centre of HKIA, was officiated by Chan Kwokki, the Chief Secretary for Administration of the Government of Hong Kong Special Administrative Region (HKSAR); Yin Zonghua, Deputy Director of the Liaison Office of the Central People’s Government in HKSAR; Pan Yundong, Deputy Commissioner of the Office of the Commissioner of the Ministry of Foreign Affairs of the People’s Republic of China in HKSAR; Jack So, Chairman of Airport Authority Hong Kong (AAHK); Lam Sai-hung, the Secretary for Transport and Logistics; and Fred Lam, Chief Executive Officer of AAHK.
Chan Kwok-ki, Chief Secretary for Administration said, “The 3RS will significantly increase the passenger and cargo handling capacity of HKIA. With the distinct advantages of the strong support from the Motherland
and our connectivity to the world, Hong Kong will maintain and enhance its status as an international aviation hub, to better dovetail with the macro strategies of the 14th Five-Year Plan and Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area.”
Jack So, Chairman of AAHK, said,
“Since the construction of the 3RS started in 2016, we have overcome many difficulties and challenges. The project is progressing on schedule with the new runway starting operation in July this year. I would like to express my deep gratitude to all airport colleagues for their tremendous efforts in completing the new runway, which provides fresh impetus to economic growth. The Airport City is also developing into a new landmark. These achievements are nothing short of miracles against all odds.”
The construction works of 3RS started in August 2016. The formation of 650 hectares of land (equivalent to 34 Victoria Parks) through reclamation was completed in around four years. The 3,800m-long runway started operation in July 2022.
The expansion of Terminal 2, construction of T2 Concourse, a new baggage handling system and automated people mover system are scheduled for completion in 2024 on time and within budget
The HKIA Community Building opened in December at Hong
Kong International Airport (HKIA), providing leisure and dining facilities to create a quality workplace for airport staff.
Funded and developed by Airport Authority Hong Kong (AAHK), the HKIA Community Building is adjacent to Terminal 1, serving all staff of different companies operating at the airport with a staff clubhouse and a staff cafeteria. The HKIA Staff Clubhouse provides various facilities including a gymnasium with over 100 pieces of equipment, a karaoke room, quiet room, relaxation room, badminton court, basketball court, yoga room, table tennis room, barbecue area and roof garden. Airport staff may relax at the clubhouse during their spare time, with various facilities catering to their needs. Activities such as interest classes, seminars and events will also be held at the clubhouse for the airport community.
The 500-seat Landside Staff Cafeteria provides airport staff with a range of dining options, as well as a spacious and airy dining area, where staff can enjoy the spectacular view of the Sky Bridge and the apron.
Jack So, Chairman of AAHK, said, “I would like to express my heartfelt thanks to all airport business partners and their staff for their continuous efforts in taking forward the airport development projects during the challenging times. The HKIA Community Building not only serves the staff of AAHK, but the entire airport community with a wide array of leisure facilities.
Staff is the most precious asset. AAHK will continue to work with its business partners to enhance staff well-being and make HKIA an ideal workplace.”
The HKIA Community Building also houses the new campuses of Hong Kong International Aviation Academy and Airport Pre-school, with the latter set to open next year.
Airport Authority Hong Kong (AAHK) and Zhuhai Municipal Government signed the “Zhuhai Municipal Government and AAHK Cooperation Memorandum of Understanding” to strengthen the cooperation between Hong Kong International Airport (HKIA) and Zhuhai, with a view to propelling the development of aviation industry in the Greater Bay Area (GBA).
Under the MoU’s framework, the key collaboration projects include the launch of “FlyVia-Zhuhai-HK” passenger link services, development of international cargo business, establishment of a high-end aviation industrial park in Zhuhai, and active discussion on equity injection into Zhuhai Airport.
a surge of 938.7% compared with the same period last year. Flight movements increased by 8.7% year-on-year to 15,770. Cargo throughput saw a 26.4% drop to 351,000 tonnes compared to the same month last year.
Both Hong Kong residents and visitors are drivers of traffic growth in December 2022. Traffic to and from Southeast Asia and Japan experienced the most significant increases.
Through jointly developing the high-end aviation industrial park in Zhuhai, the two sides will collaborate on establishing a centre for aircraft maintenance, retrofit and configuration; a centre for aircraft parts and accessories production and distribution; a centre for aircraft engineering training and professional research, and other projects.
Jack So, Chairman of AAHK, said, “With strong support from the Central Government and Guangdong Provincial Government in capturing opportunities for integrated development between the Mainland and Hong Kong, the deepened cooperation between the two airports will give full play to the respective advantages of Hong Kong and Zhuhai, as well as leverage the convenience brought by HZMB, achieving mutual benefits. Both sides will join hands in developing a high-end aviation industrial park, bringing international partners to Zhuhai and creating an important new collaboration platform for Guangdong and Hong Kong to promote the development of the aviation industry. The collaboration will boost the demand for logistics and air cargo services and provide service to the whole country and worldwide.”
Hong Kong and Zhuhai airports will leverage the strengths of their respective air networks and the Hong Kong-ZhuhaiMacao Bridge (HZMB) to expand customer base and further enhance competitiveness. With “Fly-Via-Zhuhai-HK” providing seamless service, Mainland passengers travelling on HZMB can reach worldwide destinations conveniently via HKIA, while HKIA’s passengers can also travel to Mainland cities via Zhuhai Airport.
In 2022, HKIA handled a total of 5.7 million passengers, representing a year-on-year increase of 318.4%. Total cargo throughput and flight
movements dropped by 16.4% and 4.2%, to 4.2 million tonnes and 138,700, respectively.
Fred Lam, Chief Executive Officer of AAHK, said, “The airport endured another challenging year in 2022 as the impact of the pandemic continued. Nevertheless, we saw the light at the end of the tunnel when the HKSAR Government relaxed travel restrictions and quarantine requirements for inbound travellers in the second half of the year. Passenger traffic at HKIA started to pick up in the last quarter of 2022. We also have a good start of 2023 with the resumption of normal travel with the mainland. We are confident that passenger traffic will continue to recover at HKIA.”
“Despite the pandemic AAHK spares no effort in improving the airport’s facilities to prepare for the recovery of air traffic. In the past year, the Third Runway was officially commissioned, which was a significant milestone for the Three-runway System project. Sky Bridge, the 200m-long footbridge connecting Terminal 1 and T1 Satellite Concourse, opened last November to offer convenience and new experience. Facial recognition is applied to the entire departure journey. The luxury zone and boarding gate areas have been revamped to amaze passengers with new looks and facilities,” added Mr Lam.
In December 2022, HKIA handled 1.6 million passengers, representing
Cargo volume continued to be impacted by the global economic uncertainties, geopolitical tensions and disruptions to global supply chains. Import and export cargos decreased by 33% and 26% yearon-year respectively, compared to the same month last year. Southeast Asia, North America, and Europe recorded a similar significant decreased in terms of cargo volume in the month.
Meanwhile, HKIA was named “Cargo Airport of the Year – Asia Pacific” at the 9th Payload Asia Awards organised by Payload Asia. The awards are determined by online votes and an expert jury panel and recognise outstanding organisations in air cargo and logistics sectors.
Cissy Chan, Executive Director, Commercial of AAHK, said, “We are honoured to receive this award, which demonstrates the HKIA cargo community’s professionalism and commitment to service excellence. We will spare no efforts in working with the air cargo community to offer the best service with a view to maintaining HKIA’s position as the airport of choice for cargo delivery.”
INDUSTRY AVIATION MAGAZINE SPEAKS WITH GAVIN FAULL, CHAIRMAN AND PRESIDENT OF SWISS-BELHOTEL INTERNATIONAL
How long have you been with the group? Can you please discuss your history and how you got to where you are today?
I have been with Swiss-Belhotel International since 1990 when I joined two years after the formation of SBI by Mr Peter Gautschi after his retirement from being head of The Peninsula Group in Hong Kong. So I have been with the SBI Group for 33 years – several life times!!
Mr Gaustchi was my hotel mentor in the ‘70’s when I joined The Peninsula Group in 1975 to 1983 where I ended up as Group Controller at The Peninsula Group. I left The Peninsula Group in 1983 and became Chief Executive of Kingsgate International based in Auckland New Zealand which was publicly listed in New
Zealand and Australia operating over 15 hotels in Australia and New Zealand many managed by Hyatt International. I left Kingsgate International in 1990 and joined Swiss-Belhotel International as an astronaut executive living in New Zealand and working three weeks a month in Hong Kong and one week in New Zealand – a new approach to management which is now common in the post-COVID era.
Swiss-Belhotel International was a small consulting international management company with hotels in Singapore, Beijing and Taiwan. With the expansion of hotels in the ‘90’s we grew our Group and worked in partnership with Movenpick and Swissotel until 1996 when Swissotel/Swissair took a 30% shareholding in the SBI Group and expansion plans in China and Asia were put in place to grow our expanded Group. Unfortunately, the Asia Crisis hit in 1998-99 which cause challenges in the hotel business and Swissair indicated that they wished to withdraw from their involvement in SwissBelhotel International and Mr Peter Gaustchi indicated that he wished to retire. This resulted in I and my partner, Mr James Tam buying the company in December 1999 and restructuring the SBI Group and setting an expansion plan beginning in 2000. With huge focus on Indonesia the Group has now expanded to 125 hotels and projects in 20 countries – hence Swiss-Belhotel International becoming today one of the fastest growing mid-size branded international hotel management companies now sporting 16 brands. The expansion is just being as we focus on achieving 300 hotels by 2025.
In your own words, please give me an overview of Swiss-Belhotel International Group.
We are an exciting hotel Group – focused on being a partner with the hotel owner and developing and managing their hotel as an international hotel investment.
We develop a management philosophy of Swiss professionalism – coming from our heritage and Swiss Founder Mr Peter Gautschi – and Asian professionalism - coming from our Asia culture having originated in Hong Kong and China
We now have over 12,000 staff with over 15 nationalities.
The uniqueness of Swiss-Belhotel International lies in our ‘winning partnership philosophy’, which is the foundation of our strong relationships with our hotel owners and investors. We are a true management company that manages the asset of the owner, our brands add value to the asset to the business, however, at the end it is the owner’s vision that we bring to life.
We are a boutique company, and can be defined as the best alternative to the blue chip. We have inhouse teams to handle all departments. Our technological enhancements, our sales network is well established in all feeder markets to ensure that all our hotels are maximizing their potential to get higher returns of the owners.
Where are your hotels and why did you choose these locations?
80% of our portfolio is in Asia – Indonesia, Thailand, Vietnam, Philippines, Malaysia and China. We were among the first and till date are one of the fastest growing chains in Indonesia. We understand the Asian culture and respect it. Combined with our Swiss professionalism and standards, we build a successful product with a much faster ROI than many others
The remaining hotels are spread across Australia and New Zealand, Middle East, Africa and Europe.
We are discussing many projects in many other countries and hope to expand our presence.
Who are your main customers?
With our 16 brands, we serve all markets and customer profiles from luxury to budget – single, couples, families, business or leisure.
Major chunk of our customers are in the upscale to midscale category of travelers. And with our latest brand Maua, we are seeing a big demand from the luxury, eco-friendly segment of travelers.
Before COVID-19 and the travel restrictions, how has the company performing?
COVID-19 hit us all and we went into total “lock-down”. Prior to COVID we were on a strong expansion plan opening 10-15 hotels a year. We have now resumed this expansion in late 2022.
The company was performing very well. With well-positioned hotels in all markets and competitive sets, we had introduced new brands to open on the market. The new brands, new development was affected during the period, however, it has now resumed and is in full swing.
What role does staff training and recruitment play for the company?
During Covid when it was imperative to keep the staff morale high, we developed an online platform, ‘Swiss-Belacademy’ for them to keep learning on. Post covid, the staff expectations changed drastically. The whole world is tackling this issue of staff shortage or high turnover. At Swiss-Belhotel
International we recognized this early on and the platform was tweaked to offer more supervisory and managerial training recognized by an international board. We use well-known, 3rd party, hospitality training platforms to keep building and keep up to the expectations and the needs of our staff.
As a management company we must return this appreciation to our teams and our guests. This is our responsibility and my leadership commitment as President of SwissBelhotel International. Not always easy; but a must under the new normal.
To ensure quality of the highest standards what measures have been taken?
The training platform – SwissBelacademy has played a vital role in ensuring that our standards are maintained.
The platform is powered by 2 of the industry’s leading hospitality education providers – Typsy and E-hotelier.
It extracts the best out of our employees and improves guest satisfaction leading to excellent services. Works in line with our principle of “Committed to excellence in Service and Management.”
How do you better the environment? Do you have strategies in place to reduce your carbon footprint?
The goal of our Group – like any modern company recognising the effects of climate change – is to reduce our carbon footprint. This is challenging – however the international hotel industry will work as an industry to meet its obligations.
Each year the General Managers of our hotel are given a list of actions that they can choose from to ensure that the business remains socially responsible. The achievement of 70% of this list is the minimum requirement on their key performance indicators and we have seen fantastic results on it.
The owners – myself- are also involved in agriculture and forestry so we have first-hand experience of the
need to reduce the carbon footprint. We bring ideas from our agriculture background to recycle; eliminate plastics and landfill waste; manage effluent; plant carbon absorbing trees. Still a long way to go – but we are constantly think of how; of how we can meet our responsibilities; of how we can preserve the planet for future generations.
What are the biggest operational challenges that the company faces? How are these overcome?
Qualified staffing; motivated staffing; trained staffing; committed staffing –are perhaps our biggest operational challenges. We meet these problems with
1. On-line tailored training programmes
2. On-line executive education programmes
3. Motivational management
4. Staff mentoring
5. Health and wellness of staff consideration
6. Driving our culture of Passion and Professionalism
7. Workshops and executive conferences
8. Focused employment and recruitment processes
9. Balanced work/life acknowledgement
10. Understanding the new normal of the post COVID era
How competitive is the market place these days and how challenging is it to maintain market position?
Competition will always increase, however, this is how we remain motivated to keep up the standards and the quality. We ensure that our products know their exact market.
The surge of international travel over the past 6 months – confirms that we want to meet each other; visit each other; experience each other; leverage off each other. The people of the world are a gregarious and communicative species and will not sit at home; work from home; or just look at the view. We behave differently but we behave similarly.
To meet the market demand, we have introduced a new experience brand – Maua – with the brand name coming from the Maori language in New Zealand – my heritage - my
culture – my belief. Maua is about bringing together of people, of support, of respect, of historical acknowledgement. Our first Maua opened in Nusa Penida, Bali, Indonesia – a very special product on the top of the island of Nusa Penida – which has taken the market by storm and has almost been at 100% occupancy from the opening date in June 2022. It is a location of escape.
What are the biggest developments taking place within the company?
The biggest development is showing in Central Asia, namely, Thailand, Malaysia, Vietnam where the owners’ and investors’ interest in our brand is mind-blowing. We are in discussions on 3 new projects per week.
Apart from this, we are also working on increasing the numbers in Australia and New Zealand and the Middle East Africa region.
Did the seven new properties that were scheduled to be launched in 2022 open or are they still under development?
We have opened the following hotels in 2022 –
1. Maua Nusa Penida in Bali, Indonesia – the first ever ‘Maua’ branded environment friendly luxury retreat
2. The Scene Cliff View Villas by Swiss-Belhotel International, Krabi, Thailand –First hotel in Thailand, marking our return to that market
3. Swiss-Belcourt Makassar, Indonesia
4. Swiss-Belcourt Bogor, Indonesia
5. Swiss-Belboutique Napier, New Zealand
6. Swiss-Belinn Sharq, Kuwait
What major plans does the company have for the next 12-18 months? New hotels? Investment?
Swiss-Belhotel International is returning to its aggressive expansion plans. Indonesia will be the focus of acquisition and project development due to the dynamic tourism and hotel growth in the third largest country in Asia. Joint Venture partnerships are being entered into in Malaysia to capture the grow potential as Malaysia expands it tourism industry.
Further investment into hotels in Australia and New Zealand is planned as our capital base develops.
A joint venture into China is under negotiation.
Contracts in Vietnam and Japan – are in play and hotels and projects are expected to be signed by mid 2023
The Middle East is showing huge potential – and again negotiations are in play. The opening up of Saudi Arabia and the huge publicity of Qatar – have created unprecedented enquiries.
Our limitation is caused by executive time commitments – and these are being addressed and we embark on executive recruitment programs.
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Polar Air Cargo celebrates its thirtieth anniversary this year. In April 1993, the very first Polar flight touched down at Hong Kong’s international airport, then Kai Tak Airport, on its inaugural journey from New York to Ireland, Moscow, Hong Kong and Chicago, before returning to New York. Hong Kong has been integral to Polar’s operations and success ever since.
“Hong Kong is a critical center of business for Polar, both on-airport and off,” says Kersti Krepp, Polar’s SVP & Chief Commercial Officer, who leads Polar’s worldwide sales and marketing teams from the company’s APAC regional headquarters in Hong Kong.
“Chek Lap Kok airport’s infrastructure is incredible, facilitating modern and streamlined operations. Hong Kong affords us access to top-talent across the business from our staff and partners on the ground at the airport to our finance, marketing, sales and administrative staff overseeing operations in Hong Kong, across Asia and around the world.”
More than a quarter of Polar’s nearly 300 employees are based in Hong Kong.
Polar’s EVP and Chief Operating Officer Jon Olin says: “Polar’s purpose is making connections. We connect cargo with its destination, we connect our customers with new markets to drive their growth, and – importantly – we connect with our teams, our customers and our communities to work together and drive success. Hong Kong and the Chek Lap Kok airport authority are a critical point of connection for Polar.”
On average, Polar moves more than 13,000 T of cargo through Hong Kong International Airport a month – transporting everything from fashion to electronics, raw materials to eCommerce orders. Polar flights connect South China production with receivers across Asia, the Middle East, India, Europe and the Americas.
“Like Polar, my first flight to Hong Kong was into the former Hong Kong International Airport, Kai Tak.
I touched down in 1994, a year after Polar first arrived here. And, just like Polar, I never left.
I’ve called Hong Kong my home for nearly 30 years and there’s no better place to run regional and global operations, and to grow both professionally and personally,” Ms. Krepp continues.
education campaigns to reduce waste and conserve electricity.
Polar was on hand for the grand opening of Chek Lap Kok International Airport in 1998 and enjoys a positive relationship with the airport authority, partners and vendors across the airport.
Polar, like Chek Lap Kok, has grown and evolved since its inception 30 years ago. Through its all-Boeing fleet, Polar serves customers around the world, and supports the communities where its colleagues live and work.
“Corporate responsibility, community support and sustainability are at our core at Polar Air Cargo; they are the building blocks upon which our business has been based since the earliest days,” Mr. Olin explains.
“We are proud of our actions in our operations, in the community and within the industry, and we are unwavering in our commitment to focusing on our impact on the world around us.”
Polar’s Hong Kong-based sales team assembled and distributed fortune bags for Hong Kong’s elderly this Chinese New Year, and colleagues from all Polar teams have joined forces for sustainability efforts including an underwater dive cleanup to remove trash and abandoned fishing nets in Hong Kong water, a beach cleanup during National Cleanup Day, rooftop urban farming -- the final harvest of which was donated to Feeding HK to support local shelter meals. Polar also participated in employee
For the company’s ESG efforts, in Hong Kong, Polar has been recognized as the Platinum winner of the Green Performance Pledge by Swire Properties, and won the lowest waste per employee and lowest contamination of waste challenges in our Citigate landlord’s “Smart Waste Challenge.” Globally, Polar has achieved DHL Global Forwarding Green Carrier Certification.
“Today, Polar is recognized as a leader in time-definite, airport-toairport scheduled air cargo service,” said Mr. Olin. “Our colleagues in Hong Kong, across Greater China, throughout Asia and around the world are committed to exceptional service, and providing nimble solutions to deliver for our customers. And we’ve never had to be more flexible and resilient than in the face of the COVID-19 pandemic. We are so appreciative to the Chek Lap Kok airport leadership and staff for helping Polar and all cargo carriers continue to operate and deliver critical supplies and goods in the safest manner possible.”
Polar’s flexibility, tenacity and intense focus on the customer has been recognized industry-wide for its leadership in time-definite schedule service. In fact, in 2022, Polar Air Cargo was crowned Best All-Cargo Carrier for the third year running by the Asian Freight, Logistics and Supply Chain Awards and received Best Global Carrier and Best eCommerce Carrier awards at the Payload Asia 2022 awards.
“I’m so proud to be part of the Polar team,” Ms. Krepp concludes. “And I look forward to Polar’s continued success and role in the Hong Kong Community.”
CHANGI INTERNATIONAL
“The word summing up aviation in Singapore in 2022 is, without a doubt, recovery, with Changi Airport finishing the year top of the Asia-Pacific.”
NEW TERMINAL
As at mid-December, its weekly passenger numbers had reached 75 per cent of those pre-Covid-19, a day-and-night comparison with March’s 18 per cent when borders here and in the region had yet to open.
All four of Changi Airport’s terminals are now also reopened and processing steady streams of passengers. The high-profile
reopening of Terminal 4 in September and the southern wing of Terminal 2 in October has returned the airport’s handling capacity to 70 million people a year, in time for the year-end holidays.
The year 2022 has been one of strong recovery for Changi Airport. With the relaxation of travel restrictions in April, Changi Airport has seen passenger and flight movements rise steadily through the months. While only Terminals 1 (T1) and 3 (T3) were serving passengers at the start of the year, Changi reopened Terminal 4 (T4) in September and the southern wing of Terminal 2 (T2) in October, to cater to the surge in both outbound and inbound travel demand.
In tandem, travel retail sales have also seen a revival, with Liquor, Perfumes & Cosmetics, and luxury products once again emerging as the top categories in Changi’s stores to date. At the landside, all the shops in T1 and T3 are open to welcome both travellers and visitors. At the same time, Jewel Changi Airport has continuously refreshed its offerings, with both homegrown
and international brands setting up shop at the nature-infused attraction.
To handle the strong uptick in passengers and flights, the various organisations within the airport community have actively ramped up their manpower and staff training.
Throughout the pandemic, they have worked closely with and supported one another to persevere through the challenging Covid-19 period, while continuing to uphold the high service levels that Changi has worked hard to build. For its continuous pursuit of service excellence to offer the best Changi Experience to passengers, Changi Airport was presented the Best Airport Staff award by Skytrax for the second year running. Including this award, Changi Airport has garnered a total of 655 awards since its inception, making it the most awarded airport in the world.
In the first 10 months of 2022, Changi Airport saw 23.6 million passenger movements, representing 42% of pre-Covid-19 levels. Aircraft movements, which include landings and takeoffs, totalled about 170,000, 53% of pre-Covid-19 levels.
For the month of October 2022, Changi Airport handled 3.69 million passenger movements, representing about 65% of that handled in October 2019. Some 21,800 aircraft movements were registered in the same month, about 68% of that registered in October 2019.
As at the first week of December 2022, 95 airlines operate over 5,500 weekly scheduled flights at Changi Airport, connecting Singapore to some 140 cities in 48 countries and territories worldwide. This is 82% of Changi’s pre-Covid-19 connectivity.
In 2022, Changi Airport welcomed eight new airlines. There is a mix of full-service and low-cost carriers as well as freighter operators - Aircalin, Atlas Air, Bamboo Airways, Cambodia Airways, Citilink, HK Express, Thai Vietjet and T’way Air. We also added four new destinations to our network – Noumea (New Caledonia), Jeju (South Korea), Pune (India) and Sibu (Malaysia).
For the first 10 months of the year, Changi’s top five country markets were Australia, India, Indonesia, Malaysia and Thailand. However, the strongest passenger traffic recovery has come from the regions of North America, South Asia, and Europe.
Passenger traffic to and from North America has rebounded strongly to exceed pre-pandemic levels. For the South Asia market, apart from re-establishing all pre-Covid city links, Changi also added a new city link to Pune on 2 December 2022. For Europe, Changi has almost returned to pre-Covid level of flight frequencies.
On the cargo front, Changi Airport registered more than 1.5 million tonnes of air cargo throughput from January to October. Its top five air cargo markets for the first 10 months of the year were Australia, China, Hong Kong, Japan and United States of America.
In August 2022, they welcomed the partnership between DHL Express and Singapore Airlines to operate five Boeing 777 freighters out of
Changi Airport, which will fly on routes between the United States and Singapore via points in North Asia and Australia.
Notwithstanding near-term challenges such as global economic uncertainty and inflationary pressures, air cargo continues to be a bright spot for Changi Airport as it remains steadfast in its mission to facilitate global trade and support the flow of essential goods, including medical supplies, into Singapore and onwards to the surrounding region.
Our continued quest to strengthen Changi Airport’s cargo handling capabilities and building connectivity has garnered industry recognition.
Changi Airport won the “Best Airport – Asia (Over 1million tonnes)” award at the recent 2022 Asian Freight Logistics and Supply Chain (AFLAS) Awards. The awards, hosted and organised annually by Asia Cargo News, recognise leading service providers and associated industry professionals.
Changi Airport also received commendation by the panel of judges for the “Cargo Hub of the Year” and “Air Cargo Pharma Award” category at the Air Cargo News Awards 2022. The “Global Airport of the Year” award was also presented to Changi Airport at the 9th Payload Asia Awards, which recognise industry leaders and trendsetters of the air cargo and logistics supply chain who stay at the forefront of innovations.
In June 2022, Firefly reinstated its services to Seletar Airport from Sultan Abdul Aziz Shah Airport, Subang, Malaysia, a significant milestone for the recovery of air services from the Covid-19 pandemic. With the resumption of scheduled flights, the airline now operates six daily Kuala Lumpur - Singapore services between Sultan Abdul Aziz Shah Airport and Seletar Airport.
To facilitate the strong pickup in travel demand, Changi Airport progressively reopened T2’s Arrival Hall in late May, followed by T4 in September and the southern wing of T2’s Departure Hall in October. Ahead of the terminal reopening, multiple operational readiness tests involving thousands of participants from different airport partners were carried out to test various systems and processes, to ensure that all the terminals reopened smoothly.
Today, Changi Airport has capacity to handle more than 70 million passenger movements a year. This exceeds the 68.3 million passenger movements of 2019.
In tandem, the various airport organisations have been actively recruiting more staff to ramp up their operational capacity to handle more flights and more passengers. The aviation sector in Singapore has been organising job fairs and other activities to bring in more workers to meet the demands generated by the air travel recovery. Since the start of the year, over 6,000 new workers have joined the aviation industry.
In February, Changi Airport launched new initiatives to better support passengers with invisible disabilities, such as autism spectrum disorder, Down syndrome, and dementia. Aimed at creating a more stress-free and inclusive travel experience for these passengers, the initiatives include a customisable step-by-step airport guide (Changi Airport Social Story), having a pool of staff trained in identifying
passenger with invisible disabilities, and being alert to special identifying lanyards, so these passengers can get help more easily and discreetly. The initiatives were developed by CAG in consultation with special needs schools and organisations.
With the increase in passenger traffic, Changi Airport’s wellloved facilities such as the Butterfly Garden in T3 and Sunflower Garden in T2 also reopened to delight passengers.
With the reopening of T2, all the Skytrain services in the public areas also resumed service, bringing convenience to visitors and joy to airport fans who frequent the airport as their weekend family haunt.
Over at the airside, Changi Airport introduced a new runway condition reporting system which can automatically assess and relay any change in runway surface characteristics to air traffic controllers and pilots in real-time, in line with the latest requirements of the International Civil Aviation Organization (ICAO). This involves the use of sensors to continuously monitor the level of running or standing water on the runway surface during wet weather, and broadcasting it to air traffic controllers so that they are more aware of environmental factors of operational significance. Pilots can also make use of the information provided to better control aircraft take-off and landing performance.
With the recent resumption of operations in T2 and T4, shops will re-open progressively in the upcoming months in tandem with passenger traffic recovery.
The surge in travel demand at Changi is leading to a revival in travel retail sales at the airport.
The most popular product categories are Liquor, Perfumes & Cosmetics, and luxury products. Even with Chinese tourists, who were the biggest spenders during pre-Covid days, still absent from the travel retail scene in Changi, some brands are seeing sales surging past pre-pandemic levels.
From end-September to the year’s end, CAG is running its inaugural World of Wines and Spirits (WOWS) in partnership with Lotte Duty Free, bringing Changi’s duty-free offerings to another level. WOWS showcases the world’s most internationally acclaimed, exclusive and premium wines and spirits, featuring over 200 of the finest products from more than 75 brands, including first-in-the-region rarities from renowned labels like Bowmore, The Macallan, Midleton, The Singleton and Penfolds.
Besides themed holiday activations such as Chupa Chups and Peanuts in March and May respectively, the airport also rolled out various dining promotions and shopping campaigns during festive periods to drive sales to support tenants
operating in the airport’s public areas.
Changi Airport Group (CAG) is committed to advancing Changi Airport as a sustainable air hub. Besides committing to zero carbon growth until 2030 and capping absolute carbon emissions at 2018 levels, CAG strives towards a Net Zero aspiration by 2050 through the use of new technologies and the increased adoption of renewable energy. To power more sustainable air travel, CAG also supports green initiatives by airport partners, including the adoption of Sustainable Aviation Fuel by airlines operating at Changi.
In addition to reducing carbon emissions, CAG continues to reduce overall water consumption, as well as optimises waste management by encouraging good recycling practices and implementing effective waste collection systems.
The new passenger Terminal 5 (T5) is being developed at Changi International Airport in Singapore to enhance the airport’s capacity to meet
anticipated future growth. The new terminal is set to be one of the world’s biggest airport terminals.
Estimated to cost approximately $10bn, the project marks the biggest expansion at Changi Airport to date. It is part of Changi East development, which also includes the development of a three-runway system and network of inter and intraterminal tunnels.
The single integrated terminal will be bigger than the existing terminals at the airport. It will be built on a 1,080ha greenfield site located to the east of the airport.
Land preparation works at the Changi East began in 2014 and continued until 2020. Design and engineering works of the Terminal 5 project are currently underway. Construction on the T5 is expected to begin in the 2020s, with completion scheduled for the 2030s.
T5 will be able to handle up to 50 million passengers a year in the initial phase of operation, increasing the airport’s total
annual passenger handling capacity to 135 million.
The landside and airside facilities of Changi Airport’s Terminal 5 will include main terminal building, satellite terminal building, ground transportation centre, cargo complex, primary landside roadway, taxiways, aircraft parking stands, and other supporting aviation infrastructure.
The project also includes the development of aircraft maintenance, repair and overhaul (MRO) facilities, roadway and drainage systems, and establishing connections for utilities such as power, gas, fuel, water, and telecommunications to the T5 building.
An 18km-long network of tunnels will be built to establish airside connections within T5, as well as between T5 and existing
terminals 1, 2, 3 and 4 at the airport. The tunnels will allow for convenient movement of baggage, passengers and airside vehicles.
CAG appointed a group of companies to deliver the Changi airport master plan, airfield and engineering design, consultancy services and functional design review of Terminal 5 in April 2018.
A consortium of Heatherwick Studio, KPF (Singapore), and Architects 61 will provide architectural design services for the landside works.
A consortium of Surbana Jurong Consultants, Arup Singapore and Mott MacDonald Singapore was selected to provide engineering and consultancy services, while DP Architects is responsible for the design of commercial spaces in
the T5.
Changi Airport Planners and Engineers (CAPE) along with Arup, Mott MacDonald, and Surbana Jurong will provide programme management and civil consultancy services for the landside and airfield works.
Design consultants for the Terminal 5 project include Speirs + Major, James Corner Field Operations, Lichtvision Design, The Fountain Workshop, Bruce Mau Design and Entro.
Dornier Consulting International performed a strategic review of various issues related to the Terminal 5 development including the terminal, airfield, and cargo / industrial zone.
In your own words, please give me an overview of Avis.
Avis is a leading provider of car rental services and mobility solutions. The company was established in 1946 and has since expanded to over 11,000 locations in 180 countries. Avis is an innovative and technologyled company operating globally in mobility, offering a wide range of car rental options through its distinct brands. Avis is a premium brand that caters to sophisticated, quality-seeking customers who are willing to pay more for a superior rental experience. Avis is always trying to do better through innovation and service that improves the car rental experience for customers.
Avis’s values are customerled, ownership, inclusion, integrity, and innovation. The company is committed to honouring its commitments to its employees, customers, and shareholders by living these values and creating a supportive and respectful environment for all. The company provides exceptional service and a stress-free rental experience to its customers while valuing health and wellness for all involved; we are “driven by better”.
With a focus on acting with integrity, trust, and honesty in all dealings, Avis provides its customers with a fair and
transparent rental experience, while its employees are valued and recognized for their hard work and dedication.
At Avis, we maintain our commitment to excellence and ensure that our customer satisfaction sets us apart from our competitors in the rental vehicle industry. Our premium car rental services offer a refreshing change to customers looking for a superior rental experience from a complimentary cold water bottle on a hot day, to a personalised welcome when you check-out.
How many offices and how many employees are there at the company?
With a team of 20 team in Singapore, we are conveniently located at Changi Airport, where we have rental counters at both Terminal 2 and Terminal 3 arrival halls. We have reopened our operation in T2 in March 2023. This will provide our customers with enhanced flexibility in selecting their desired pick-up location. To cater for our local clients, we also operate from our downtown office located on Havelock Road. As the pandemic eases, more people are travelling to Singapore. Some drawn by its mix of culture, cuisine, and modern attractions, others for business but there is something for everyone.
When did Avis Singapore first come to Asia?
Avis first entered the Singapore market in the 1970s and has since established a strong presence in the country as a leading provider of car rental services. The company has several counters in the country, making it convenient for customers to access its services, and offers a wide range of vehicles to meet the needs of both personal and business travellers.
Avis still operates strongly even after the incredibly difficult period at the height of the COVID-19 pandemic. This is testament to our strength and determination to offer a high-quality services and vehicles.
Avis is committed to providing exceptional customer service and has received numerous awards for its customer-centric approach. Avis has made a significant investment in the Singapore market through its recent vehicle acquisitions and continues to play a significant role in the country’s transportation industry. With its commitment to providing innovative and sustainable solutions, Avis is well positioned to continue its success in Singapore in the years to come.
Since starting, how has Avis Singapore performed and grown?
Since entering the Singapore market, Avis has established itself as
a leading provider of car rental services and mobility solutions. Over the years, the company has seen steady growth in both the personal and business segments, thanks to its commitment to providing exceptional customer service and innovative technology.
Avis Singapore has expanded its fleet of vehicles to meet the changing needs of its customers, offering a wide range of options from economy cars to luxury vehicles. The company has also embraced new technologies, such as a new website with improved booking engine to streamline the rental process and make it more convenient for customers to rent our vehicles.
Overall, Avis Singapore has performed exceptionally well since its inception. Consistently delivering strong financial results, we have earned recognition as a leading player in the local and global markets. The company’s commitment to innovation and customer service has helped it to stay ahead of the curve and set it up for continued success in the future.
What role does training and recruitment play at the company?
Our team are crucial to the success of our company; by executing their tasks and responsibilities efficiently and with passion, they enable us to reach our company objectives. Our team are highly trained and live by our company mantra: ‘Driven by Better’. Our team also contribute to the company culture, adapt well to company changes and work collectively to reach our company goals. We collaborate on tasks and share communications to inspire and engage our employees. Qualities we look for when recruiting new talent are knowledge/ experience in a relevant field, integrity, and ambition. Our internal culture celebrates the diversity in our people by spreading awareness of diverse cultures and events; we share real stories about our employees as guiding lights for our culture. At Avis, we are inclusive and constantly strive to bring new social activities and opportunities to our team.
To ensure quality of the highest standards what measures have been taken?
To ensure the highest standards, we have taken several measures, including:
1. Employee training: We invest heavily in training our employees to ensure that they are equipped with the skills and knowledge needed to provide outstanding customer service. This includes regular training sessions on customer service best practices, product knowledge, and technology.
2. Customer feedback: We actively seek and listen to customer feedback to understand what we are doing well and where we can improve. This feedback is used to make datadriven improvements to our services and to ensure that we are meeting the needs of our customers.
3. Quality control processes: We have established rigorous quality control processes to monitor and improve the quality of our services. This includes regular inspections of our vehicles, customer service evaluations, and audits of our operations.
4. Investment in technology: We are committed to using technology to improve our services and provide a more seamless experience for our customers. We invest in new technology solutions, such as an improved online booking platform and digital check-out services, to make it easier for customers to rent our cars and to streamline our operations.
5. Sustainability efforts: We are committed to reducing our environmental footprint and promoting sustainable practices. This includes investing in energy-efficient vehicles, etc.
By taking these measures and continually seeking to improve, we are confident that
we are delivering quality services of the highest standards to our customers. We are proud of the work that we do and are committed to maintaining our high standards into the future.
How do you better the environment? Do you have strategies in place to reduce your carbon footprint?
We have several strategies in place to reduce our carbon footprint, including:
1. Fleet management: We are continually upgrading our fleet to include more energy-efficient vehicles and vehicles with alternative fuel options. This helps to reduce the emissions produced by our vehicles and to promote cleaner, more sustainable transportation.
2. Sustainable operations: We are committed to reducing our carbon footprint through sustainable operations. This includes reducing energy consumption and minimizing waste. We “reuse, reduce and recycle” all that we can.
3. Employee engagement: We engage our employees in our sustainability efforts and encourage them to take an active role in reducing our environmental impact. This includes promoting sustainable practices such as reducing energy consumption in the workplace.
4. Collaboration with partners: We work with our partners, such as suppliers and rental locations, to promote sustainable practices and reduce our environmental impact. This includes promoting energy-efficient products, implementing recycling programs, and promoting alternative transportation options.
5. Investment in Technology: We’ve shifting towards the digital world. Invoices are sent and retrieved online instead of printing physical and unnecessary paper. In the near future, we are investing in technology to further speed up the customer journey – our aim is to get our customers on the road as quickly as we can.
These strategies are just a few of the ways that we are working to reduce our carbon footprint and promote sustainable practices. We are committed to continuously improving our environmental performance and to doing our part to protect the planet for future generations.
What about safety, how important is this to Avis Singapore?
Safety is of utmost importance to our company. Notwithstanding the expected Health and Safety standards of today, we have also pledged our safety standards to our customers about the cars we send out in a COVID-19 related environment.
We understand that our customers entrust us with their safety when they rent our vehicles, and we take this responsibility very seriously. We have implemented strict safety measures to ensure that our customers have a safe and stress-free rental experience.
Our vehicles undergo regular maintenance and safety checks, and we follow all government regulations and guidelines to ensure compliance with safety standards. In addition, we have implemented a comprehensive cleaning protocol to ensure that our vehicles are thoroughly cleaned between rentals. We also provide our customers with safety information and guidelines to promote safe driving practices.
Furthermore, our team is committed to providing exceptional customer service and assistance to ensure that our customers have a safe and comfortable rental experience. We are always available to answer any questions or concerns our customers may
have, and we work tirelessly to maintain our reputation as a trusted and reliable rental service provider.
In short, safety is a top priority for Avis Singapore, and we are committed to providing our customers with a safe and stress-free rental experience. Rest assured; you are in good hands when you rent from us.
What are the biggest operational challenges that the company faces? How are these overcome?
Regional challenges have been surrounding the opening of the Chinese tourism market; now that this has started to happen, it has alleviated a lot of pressure, but the increased volume may mean that there may be times when our cars are sold-out, or more expensive to rent (particularly in peak periods). Preparation for extended queuing time at Changi airport has been noted; for reference, it takes a customer roughly 45-60 minutes to clear customs.
Other challenges have been the global staffing shortage. Even with CAG looking for around 6,000 employees mid-2022, many companies have been struggling, so patience when dealing with
retail businesses is well-received, and we are driven to offer the best service we can.
How competitive is the market place these days and how challenging is it to maintain market position?
We differentiate ourselves from competitors due to our unique selling points such as our loyalty programme, Avis Preferred, offering exclusive discounts and other benefits. Additionally, we stand out from our competitors with our flexible approach to bookings; where possible we will work to what you need, be that a late-night arrival or a local delivery.
We understand that traveling can be uncertain and stressful, especially in these times. That is why we want to assure you that we are here to support you every step of the way. We are committed to making your travel experience as smooth and stress-free as possible. If you have an issue with your itinerary, please contact us to let us know. We will work towards an amicable solution to get you on your way as best as possible.
We are also here to support you in any way we can during your travels. Feel free to contact us for any questions or concerns you may have; we will do our best to accommodate any special requests you may have.
We will also be launching “QuickPass” in Singapore. This is the process of preparing your rental agreement before arrival for collection, enabling a faster collection process.
What major plans does the company have for the next 12-18 months? Expansion? New markets? Investment?
Even though our Terminal 3 operations have remained open (when the airport permitted), we have recently re-established Terminal 2 operations (due to start on 1 March 2023) after a long, covid-related hiatus. As part of our reopening, we have invested in technology to enable us to send our customers photos of their cars, check-in cars straight at the car park but also to issue e-receipts/e-rental agreements; no more clunky, noisy printers, just quiet, easily traceable emails.
Over the next year, we are looking to offer our Chinese-inbound clients the opportunity to pay through We-Chat pay and will be expanding our accepted payment methods.
With over 50 years’ experience in aviation, the team at Mott MacDonald has played a core role in the planning and delivery of many of the world’s leading airports. Their global aviation lead, Graham Bolton, and colleagues discuss how they are now looking to shape the airports of tomorrow. Our airports of tomorrow will be more than just transportation hubs, becoming destinations that promise to deliver unparalleled user experiences, are compatible with a net zero future and emerging innovative technologies. Below, we further explore the airport of tomorrow and how together we can help address global challenges and allow the sustainable growth of the aviation industry.
What do we expect of the airport of tomorrow?
Customer experience
Inclusive customer experience will be at the heart of tomorrow’s airports. With today’s technology advancements passengers expect more from their experience. Humancentred approach to operational planning, infrastructure design and technology integration enables convenient and predictable journeys with the potential to surprise and delight. Then through integration of the airport into the wider environment – as at the Jewel at Changi – we create a destination that brings together and serves its passengers, the airport community and society.
Social inclusion
Aviation and airports have long been a contributor to social inclusion – providing essential access to communities; enabling the movement of goods and people essential for development; and of course connecting families and friends around the world. The airport of tomorrow will need to do more. Better understanding and addressing the needs of different users, and challenging costs of operation and development will help ensure air travel is accessible to a larger portion of our population. Likewise, closer engagement with local communities throughout the development process will create airports that respect and represent their local environment and share the benefits more widely. Adoption of new forms of zeroemission aviation ‘advanced air mobility’ will provide opportunities for better social outcomes – for example improving connectivity to remote communities or accelerating delivery of medical supplies in congested cities.
Economic performance
Airports play a key role in supporting the success of local and national economies, through job creation, tourism, and trade. Equally, many make a direct economic contribution to the national and regional economy through dividends, concession fees and local taxes – a contribution often overlooked by many until the
challenges of COVID. Airports designed with a focus on efficiency, sustainability and passenger experience will support economic success not just for investors – but for the wider communities they serve. By optimising the use of assets, improving processes, and reducing energy and material consumption – informed by use of data and enabled by new technologies – airports of tomorrow will continue to make a key economic contribution.
Net zero
Airports must evolve to support the aviation sector pathway to net zero future. Whilst airport operational emissions (scope 1 & 2) form a very small part of total sector emissions, the airport of the future has a critical role in supporting wider decarbonisation of the sector. A campus wide approach to energy will initially include decarbonisation of airport infrastructure and of third-party ground operations – evolving to accommodate potential future zero-emission aircraft. The strategy may include provision of on- and off-site renewable generation and load balancing, underpinned by smart solutions –alongside basic energy efficiency measures. Providing flexibility to adopt to the emerging requirements and timetable for adoption of new aircraft types – for example the electric and hydrogen regional aircraft expected this decade – will be key. Net-zero for aviation is no longer an option – the challenge now is how to deliver it most effectively.
Climate resilience
Our airports of tomorrow must adapt in response to climate-related extreme weather events becoming more frequent and severe. Better understanding of climate change risk, alongside that of other physical and operational risks, is essential in planning future airport operations and associated infrastructure. This involves more than just avoiding the impact of future events – physical and operational mitigations may also play their part in reducing impacts and speeding up recovery. Understanding the interdependence of airports and the wider eco-system is equally key – the resilience of external infrastructure, such as surface transport or utilities will play a part in establishing the overall ability of the system to respond. Innovative design and engineering solutions that can mitigate the impact of climate change events whilst also promoting sustainable practices will be key. For example, the introduction of green roofs to help to manage stormwater runoff and prevent flooding. By promoting sustainable practices, airports can not only ensure their own survival, but also contribute to broader efforts in reducing the impacts of climate change globally.
Capacity optimisation
Capacity optimisation will continue to be a priority for airports of tomorrow – responding to continued growth in demand, without adversely impacting customer experience, safety and security, or the environment. Continued focus on process optimisation and utilisation of existing assets will play a part – alongside expansion with more environmentally efficient and new facilities. Adoption of innovative technologies, such as advanced analytics, artificial intelligence, and automation, will support this more effective use of airport functions. For example, using data analytics to predict and adapt operations to changing passenger flows, or dynamically balancing energy demand across the campus.
What do we need to do to achieve this?
The big opportunities for transformative change in aviation require inclusive and connected thinking like never before.
Designing and delivering the airport of tomorrow requires collaboration. It necessitates ideas from across sectors and disciplines, different perspectives, and input from our social and energy practices to help test our approaches. It challenges us to think bigger, adopt a system of systems campus-wide approach. It drives us to think smarter – considering the technologies we have now to enable change and the application of future technologies that airports can adopt to support their operational functions and as a key enabler of great visitor experiences.
Airports of tomorrow need us think holistically, putting people at the core of design and taking into consideration the end-to-end journey.
What are we doing about this in practice?
Our teams have a strong track record of providing strategic planning, design and delivery advice to many of the leading airport clients around the world, including Heathrow, Singapore, Hong Kong, Delhi, New York, Athens and Auckland.
Drawing on wider skills from our social, environmental and digital teams we are helping to develop inclusive customer experience processes; design carbon reduction programmes; and responsibly developing future capacity across these and other major global airports. In parallel, we are engaged in collaborative R&D programmes, supporting policy makers and working on projects to deliver zero emission regional connectivity and urban air mobility. We are developing enterprise architecture and applying digital twin solutions that will support operational efficiency and reduction of operational and embedded carbon.
Aviation has and will continue to have a significant social and economic value. It has a key role to play in addressing global challenges and together, we have the opportunity and responsibility to develop the pathway to the future and shape the airport of tomorrow.
AUTHORS: Graham Bolton, Global Aviation Lead, Mott MacDonald Kim Yates, UK & Europe Climate Change Lead, Mott MacDonald
STAR ALLIANCE: COMBINING STRENGTH AND INNOVATION
Star Alliance began more than 25 years ago with the aim of providing customers a comprehensive network of destinations, alongside the opportunity to earn and spend miles across multiple member airlines. Its establishment marked the birth of the world’s first aviation alliance.
worldwide, the ability to skip the queue with priority check-in, boarding and baggage handling, as well as extra baggage allowance. In addition, they enjoy Gold Track priority lane clearance at more than 150 airports, for faster, smoother clearance through security and immigration.
An elevated customer experience
Today, Star Alliance is still the world’s number one airline alliance.
Its 26 members include airlines from Europe, the Americas, Africa, Asia, and Oceania. These include many of the world’s top aviation companies, as well as smaller, more regional carriers. Together, they offer easy connections to almost any destination in the world.
With Star Alliance, customers enjoy an elevated experience. This difference is most felt during multi-airline journeys – which become smoother and more convenient. When flying on multi-leg journeys - even those involving multiple Star Alliance carrierspassengers can check in through to their final destination thanks to the alliance’s shared IT infrastructure. This makes for a hassle-free airport experience. For added peace of mind and convenience, passengers can also track the location of their baggage thanks to Star Alliance’s digital Baggage Hub solution.
In addition, Star Alliance Connection Service provides proactive help to passengers transferring from one member carrier to another, so they don’t miss a flight. When an inbound flight is delayed, a ground team springs into action, helping with connections at risk by expediting the transfer of passengers and their luggage onto their next flight.
Star Alliance is still pioneering today - dedicated to international travel innovation and providing customers a seamless journey.
This is just one of the reasons why it has been named the world’s best airline alliance by the Skytrax World Airline Awards, the Air Transport Awards and the World Travel Awards.
To make the customer journey even more seamless, Star Alliance Biometrics was launched in November 2020. With the help of facial recognition technology, customers can pass through multiple check points at the airport, ensuring safer, faster and more convenient experience. Star Alliance Biometrics’ advanced algorithms allow for accurate and quick processing even where a facemask is worn, giving passengers a frictionless experience as they move through the airport.
Exploring new
horizons
Star Alliance is continually exploring new ways which can enhance the customer experience further. It recently launched initiatives that demonstrate that it is not only the best and largest airline alliance, but also the most innovative.
The widest network in the sky.
The most rewarding way to fly
One of the biggest benefits of flying with Star Alliance is that as long as a passenger is enrolled in any of the 20 frequent flyer programs run by Star Alliance carriers, he or she stands to enjoy the benefits of loyalty across the entire Star Alliance network. The more passengers fly, the quicker they earn miles and points, which can then be redeemed for award tickets or upgrades.
Star Alliance’s Intermodal Partnership model, introduced in August 2022 with German rail provider Deutsche Bahn, cleverly extends the alliance’s network beyond air travel and allows passengers to buy rail and air tickets on a single booking. For instance, with Deutsche Bahn as a Star Alliance Intermodal Partner, passengers can conveniently transit from a flight at the Frankfurt airport to end their journey on a high-speed DB train and vice versa. The model also links loyalty systems, which means passengers who travel with intermodal partners also continue earning miles or points on their entire journey, not just in the air.
Fly seamlessly to over 1,200 destinations around the world with our 26 member airlines. Accumulate miles on your journeys and redeem them for a reward ticket or a cabin upgrade across the alliance.
That’s the strength of the Star Alliance network.
Travelers who have achieved premium status at any of these 20 frequent flyer programs also become Star Alliance Silver or Gold members and enjoy premium customer benefits and privileges.
Star Alliance Silver members enjoy priority on airport standby and clearance on the reservation waitlist.
Star Alliance Gold members enjoy all the benefits of Silver, as well as access to more than 1,000 lounges
In November 2022, Star Alliance also launched the world’s first credit card by a global airline alliance. Exclusively for the Australian market, the HSBC Star Alliance Credit Card boasts an array of perks for card members. These include the opportunity to earn miles on participating Star Alliance members’ frequent flyer programs through daily spends, a fast track to Star Alliance Gold status without even having to take a flight, and interestfree flight bookings.
The last few years have been exceptionally challenging for the aviation industry and the customers who rely on it. Amidst this, Star Alliance and its member carriers have worked hard to promote the safe resumption of travel. Once again, it is helping reunite loved ones separated by oceans, making travel possible again, and reintroducing the world to restless adventures.
As Star Alliance looks towards the future, the customer remains at the center of its vision. Backed by the collective strength of its members, two and a half decades of experience and constant innovation, there’s no doubt that it will continue to lead the way, meeting the changing expectations of passengers, and setting the standard for the industry for years to come.
INTERNATIONAL AIRPORT
Developed for the Future BEIJING DAXING
“The management logic for the orchestration of airport processes comes from Germany: The digital service provider T-Systems has tailored its self-developed Smart Airport Software for digital airport management to the needs of the new Beijing airport.”
FUTURE AIRPORT
Beijing, the capital city of the Republic of China and one of the largest cities in the world, had just one international airport and a military airbase while cities that are esteemed on par with it had two or more international airports.
The city was being served by Beijing Capital international airport, which is the world’s second largest in terms of passenger traffic but was running at maximum capacity and could not be further expanded.
Beijing Capital international airport has an annual passenger
handling capacity of 75 million. Approximately 205,000 passengers pass through the airport daily and it is not possible to expand the airport further.
The airport currently occupies an area of 2,100ha. An expansion would have made it difficult to operate such a large airport. The recently constructed Terminal 3 of the Beijing Capital international airport, which is as big as London’s Heathrow Airport, is also running at maximum capacity.
With an increase in economic growth and urbanisation, the city
has witnessed massive migration from rural areas. This has placed further stress on the existing transport facilities, including air travel.
In addition, Beijing’s expanding economic growth has attracted an increasing amount of business travellers. Over the next few years, the city is expected to witness a large number of passengers travelling in and out of the country. Many of these passengers are expected to be business travellers.
Proposals for the construction of a second airport for Beijing had been under discussion for more
than a decade but were not implemented. The growth of the city had, however, necessitated the construction of a new airport.
Beijing Daxing opened for operations in September 2019, following more than four years of construction. The new Daxing airport serves as north China’s commercial aviation hub. The airport is operated by Beijing Capital International Airport Co.
The Government of China announced the long-awaited approval for the construction of a new international airport in January 2013. The new airport is located in Daxing, a suburb district south of the city. It reduces congestion at the existing airport and caters to the needs of Beijing passengers.
It is expected to handle 72 million passengers by 2025 and up to 100 million passengers and four million tonnes of cargo upon further expansion. Construction work on the Daxing airport commenced in December 2014 and the steel structure of the terminal was formed in June 2017.
The management logic for the orchestration of airport processes comes from Germany: The digital service provider T-Systems has tailored its self-developed Smart Airport Software for digital airport management to the needs of the new Beijing airport.
The systems developed by the Deutsche Telekom subsidiary, when fully implemented, form the basis for bringing up to 100 million
passengers a year to their destination quickly and efficiently. Following the completion of all runways and all planned extensions, Beijing Daxing will be one of the world’s largest airports.
T-Systems’ Smart Airport Software is already in use at more than 40 airports worldwide. It analyses, processes, and visualizes an airport’s entire flightrelevant data in real time - from air traffic control and airlines to ground services and other service providers. Through the digital networking of all those involved in flight operations, the control system ensures the smooth coordination of flight movements and ground handling processes and thus makes an important contribution to optimizing flight punctuality.
Beijing Daxing International Airport uses the T-Systems solution to digitize all airport processes in a highly secure on-premises server environment. A collaboration platform
ensures an agile and simple integration of 70 partner systems, which are used in various areas of airport operations. Considering the degree of networking made possible by T-Systems’ technology, Beijing Daxing is one of the most digitized airports in the world.
Beijing Daxing international airport is built on a 2,679.01ha (6,620 acres) site, located 46km south of Beijing’s political centre, Tiananmen Square. The project included the construction of airline bases, an intercity railway, high-speed subway, highway, and air traffic control tower.
The airport has four civilian runways and one military runway. Beijing Daxing is the first airport in the world with double-deck departure and arrival platforms.
The 700,000m² passenger terminal building’s design is inspired by traditional Chinese architecture and features a central building with six arms, resembling a phoenix spreading its wings from the aerial view. The distance between the far end of the terminal to the centre is 600m.
The roof of the terminal building is a large-span steel structure shaped in the form of a hyperboloid, that covers an area of 350,000m². It is supported by giant C-shape columns that seamlessly connect with the roof curvature and consists of more than 170,000 steel members.
Beijing Daxing Airport incorporates energy-saving green concepts, allowing natural light into the building. Renewable energy accounts for more than 10% of the energy consumed by the airport. The aerodynamic roof uses skylights to maximise heat gained from the sun and is equipped with an integrated environment control system to minimise energy consumption.
The airport features a solar farm with photovoltaic cells mounted on the roof of the car park building, hangars, and cargo areas to generate 10MW of power. The centralised heating system of Beijing Daxing is equipped with waste heat recovery systems and is supported by a composite ground-source heat pump
system, incorporating a concentrated energy supply area of nearly 2.5 million m². A 100% rainwater collection facility was installed to cater to its energy and resource needs.
Heating and cooling systems of the airport are powered by geothermal heat pumps located at the Yongding River basin. Energy from the pumps is expected to meet 8% of the energy required by the airport. Filter glasses are used to block 60% of the heat and allow 60% of natural sunlight inside the terminal building.
The departure lounges open to five courtyards designed in an ancient Chinese-style, featuring silk, tea, porcelain, courtsides, and Chinese gardens.
The new airport implements the latest technology such as a passenger self-check-in facility, available for 86% of the passengers, and self-baggage check-in, serving 76% of the passengers. Use of clean energy vehicles also reduces the airport’s carbon footprint.
Beijing Daxing International Airport in China has restarted operating outbound overseas flight services after a pause of around three years due to Covid-19 pandemic restrictions.
The resumption of international services comes after the Chinese Government decided to ease Covid-19 curbs by downgrading it from Class A to Class B, and lifting of all quarantine measures for overseas passengers coming to China from 8 January, Global Times reported.
Beijing Daxing International Airport Customs deputy director Zhao Zhao was quoted by the publication as saying: “After receiving the flight resumption plan, we continued to improve the customs operation process from the aspects of aircraft scheduling, passenger and baggage flow to make a full preparation.”
The first flight to take off was China Southern Airlines, which was bound for Hong Kong with 101 passengers onboard, the publication stated.
In March 2020, all flights bound for Beijing Daxing Airport were re-routed to Beijing Capital International Airport due to the pandemic.
Beginning on 8 January, Civil Aviation Administration of China (CAAC) noted that all flights will be allowed to land at the Beijing Daxing airport directly.
In addition to China Southern
Airlines, other carriers such as China Eastern Airlines, Beijing Capital Airlines and Himalaya Airlines will recommence their outbound operations from Daxing airport.
The airport will also facilitate international transfers, under the 144-hour visa-free policy for the Beijing-Tianjin-Hebei region.
Earlier this month, Cathay Pacific announced that it will
more than double its schedule to China, after the decision to enable quarantine-free travel between Hong Kong and the Chinese Mainland.
It is expected that by 2040, Daxing Airport will become the world’s busiest terminal when it receives 100 million passengers and 20 million tonnes of cargo annually.
“Beijing Daxing Airport sets new airport digitization standards.”
Edgar Ziller, Head of Airport Management, T-System
Air passenger numbers are growing worldwide – and so, too, in China. Beijing Airport, internationally known as Beijing Capital International Airport, no longer has the capacity to handle the increasing air traffic. Therefore, following an international design competition, construction work began in 2014 to create a new airport, Beijing Daxing International Airport. Located just under 50 kilometers south of Beijing’s downtown area, in the Daxing district, one of the world’s largest civil aviation airports was built in only five years. Not only does the megaproject meet the highest architectural design standards, it is also equipped with state-of the-art technology to overcome the challenges of the years ahead. The German digital service provider T-Systems China was tasked with programming the digital airport management system and tailored its selfdeveloped Airport Software to the Chinese airport’s specific needs within 24 months.
At a glance
The version of T-Systems’ airport management system used at Beijing Daxing Airport is tailor-made to suit the operator’s exact requirements. It is designed to manage, once all airport expansions are completed, flight operations on a scale in line with the following parameters:
Size:
• Terminal area of 700,000 sqm
• Six runways
• 345 parking positions along the building and on the apron, plus 186 boarding gates
100 million passengers, 880,000 aircraft movements, six runways, and a highspeed rail service: the Beijing Daxing Airport is set to become the largest in the world within a few years. It is located at a geographical hub of the People’s Republic and serves a wider area of more than 200 million people, who can reach the airport from 28 major cities within three hours. The number of visitors to the airport is expected to grow over time. In view of this steady increase in the use of the transport hub, the software that manages airport operations must be sufficiently flexible to respond to the changes over the coming months until Beijing Daxing has become the largest airport in the world.
The solution
Passengers, flight times, aircraft width, and many other factors –an airport is a highly complex ecosystem whose operational efficiency depends on reliable information and sound decision making. T-Systems’ self-developed airport management system is a fully integrated end-to-end solution for digital airport management that takes account of the complexity of day-to-day airport operations through modular technical components. Based on real-time data, it maps all flight-relevant activities, enabling better decision-making and efficient collaboration between all parties involved in flight operations. Accordingly, the system plays an important role in optimizing flight handling processes and providing reliable information to passengers and staff, and, as a result, ensures flight punctuality.
The following are the main components of the airport management system supplied by T-Systems China:
• Airport Operational Database (AODB)
The AODB is the technical IT backbone of the management system. Similar to a database, it collects all flight-relevant data required for planning and management – from the number of baggage items through to physical aircraft data. All components of the interconnected system can access this database.
• Resource Management System (RMS)
Based on the data provided by the AODB, the RMS module automatically allocates the parking position, gate, check-in, and baggage reclaim for each flight. This allows aircraft, passengers, and baggage to be handled smoothly and efficiently.
• Flight Information Display System (FIDS)
More than 3,000 display boards are used at Beijing Daxing. Based on the FIDS, they provide passengers and handling staff with all the information they need in real-time.
• Airport Collaborative Decision Making (A-CDM)
The collaboration tool A-CDM is the communications platform for all individuals and bodies involved in airport operations: air traffic control, airlines, ground handling, traffic managers, and service staff. Based on real-time data, it offers summarized views of the status of operational activities, simplifying the decision making process and contributing to the improvement of airport efficiency.
• Enterprise Service Bus (ESB)
Customer benefits
T-Systems’ airport management systems (AMS) is already in use at more than 40 airports worldwide. The software is optimally tailored to the operational management of air traffic and can be expanded in a flexible manner based on needs. The AMS analyzes, processes, and visualizes all flight-relevant data of an airport, and ensures the smooth running of aircraft movements and ground handling processes. The solution is implemented in a highly secure onpremise server environment.
The new version of ESB is responsible for interconnecting all the components supplied by T-Systems and ensures the seamless integration of the systems of all external stakeholders involved in flight operations. It is therefore an essential requirement for implementing the collaboration efforts of the A-CDM portal. More than 5,000 rules are stored in it, which contribute to the optimized short-, medium-, and long-term planning of resources.
INCHEON
INTERNATIONAL AIRPORT
Optimistic Outlook
“Dynamic dimensions in space were created through the ceiling design, forming the shape of a feather of the bonghwang at the check-in counter zone.”
WINGED CITY
Incheon International Airport (ICN) ‘Winged City’ is an airport located on reclaimed land approximately 32 miles from downtown Seoul, South Korea. The airport’s two runways, passenger terminal complex and other facilities officially opened and became fully operational on 29 March 2001, making Incheon one of the world’s biggest cargo airports.
Seoul Incheon International Airport, located in South Korea’s capital, Seoul, is the country’s largest airport and one of the world’s busiest. The airport has received the best airport award for nine years (2005-13) from Airports Council International.
Incheon Airport is not only well-organized, ultra-clean, and easily accessible, but its cultural activities, huge shopping choices,
and luxury facilities continue to propel it to the top three of the Skytrax World Airport Awards.
Simply getting from one Terminal to the next at Incheon Airport is a simple procedure, but checking out our article on the airport’s most distinctive features can help you get the most out of your trip to Seoul from beginning to end.
Incheon International Airport Terminal 2 is capable of
represents a leap forward.
Symbolizing the advent of a new reign of peace, it shares the vision of Incheon International Airport to lead future airports and begin a new paradigm beyond the previous standards.
Dynamic dimensions in space were created through the ceiling design, forming the shape of a feather of the bonghwang at the check-in counter zone.
The cable net system applied to the main curtain wall maximizes the sense of openness on the front side of the terminal.
The ceiling plan in the carousel zone, where the passengers find their luggage, embodies the shape of the roof of Hanok, the traditional Korean house, presenting an inspiring space.
The Green Axis along all airport spaces, including the Great Hall at the center of the departure hall, is completed with landscaping, such as the Node Garden and the Antler Area), transforming Incheon International Airport into an eco-friendly airport.
Following the completion of phase four which provided four runways, 128 gates, two passenger terminals and four satellite concourses in 2020, annual passenger numbers could reach 100 million. There could be 530,000 flights and the airport could be handling more than seven million tons (Mt) of cargo a year, which would transform ICN into Asia’s main airport hub and one of the top ten busiest airports worldwide.
accommodating 18 million passengers annually and has 37 aircraft stands.
It has recently been awarded a 2022 International Architecture Award by The Chicago Athenaeum: Museum of Architecture and Design and The European Centre for Architecture Art Design and Urban Studies.
The design for the terminal is embodied and inspired by “bonghwang,” a phoenix that
Phase two expansion included the construction of a third runway, a terminal and an APM. The expansion increased the annual flight capacity from 240,000 to 410,000, annual passenger capacity from 30 million to 44 million, and annual cargo capacity from 2.7Mt to 4.5Mt.
Phase three expansion, which cost approximately KRW4.9tn ($4.5bn), was started in September 2013 and completed in 2018. This allowed the airport to handle 72 million passengers and cargo of 5.8Mt a year.
At the time of opening, the ICN terminal complex was South Korea’s largest building, with a total floor area of 5,347,555ft², 44 gates and 16 aircraft stands built on a land bridge created between the Yeongjong and Yongyu islands in the Yellow Sea.
Connected to South Korea’s mainland by the Yeongjong Bridge, Incheon International Airport can service 51 cities with a population
of more than one million within 3.5 hours’ flying time.
Phase one of the Incheon International Airport comprised two parallel paved asphalt runways, 33L/15R and 33R/15L, each 3,750m-long, 60m-wide, and 1.05m-thick, capable of servicing Boeing 747-400s and capable of CAT IIIa operations.
Currently, runway 33L/15R is used mostly for departures while runway 33R/15L is used mostly for arrivals. This is especially evident from the amount of rubber present on each runway; runway 33R/15L has more rubber on it due to the constant landings.
As part of the phase two construction, the 4,000m-long third runway 16L/34R was constructed and opened in July 2008. Landing and takeoffs of most passenger flights are done on the new runway and the existing runway 33L/15R, while runway 33R/15L is used mostly for cargo flights due to its proximity to the cargo terminals. An advanced surface movement guidance and control system (SMGCS) manipulates runway and taxiway lighting to guide aircraft to gates.
The automated system is specially designed for lowvisibility conditions or busy
surface movement traffic.
To further facilitate traffic flows, a four-lane road for support services circles the airfield and vehicles exclusively move on two four-lane underground roads beneath the runways. An airport surface detection equipment radar (ASDE) monitors runway incursion and offers conflict alert system functions.
Beijing Olympics). Airport capacity increased to 410,000 flights a year serving 44 million passengers a year and processing cargo volumes of 4.5Mt a year.
Phase two entailed preparing 8.25km² of land on the west side of the airport for a 4km third runway, 1.2km² mooring facilities
Numerous equipment upgrades were also carried out. They included the new ASDE-X with multi-radar tracking (MRI) function and an automatic dependent surveillance-broadcast (ADS-B) system with a runway incursion monitoring and conflict alert system (RIMCAS) function.
Phase two of the airport construction began in February 2002 and completed in June 2008 (the project brought forward because of the
and a 158,400m² concourse, which are connected to the main passenger building via two parallel 870m-long underground passageways.
used for the new runway.
Phase three involves the construction of a second passenger terminal (Terminal 2), an airport control tower (ACT), an integral hotel, a conference centre, and an airside Intra Airport Transit (IAT). It also included expansion of the existing cargo terminal, apron area and transportation sections.
The parking facilities and train stations were also expanded during phase three. Approximately $4.5bn is required for this phase, which is funded by proceeds from IIAC.
The first stage of the terminal construction was completed in 2016 with the aim of serving international passengers arriving for the 2018 PyeongChang Winter Olympic Games. The second stage, which is an expansion phase, will be completed by 2025.
Design for the Terminal 2 was finalised in June 2012.
The terminal has a built-up area of 7.4 million square feet and handles 18 million passengers and 46 million passengers per annum by 2016 and 2025 respectively.
Gensler is a collaborating design architect. Thornton Tomasetti provided structural peer review services for the project. The client is Incheon International Airport Corporation. Fentress Bradburn Architects won the design competition and subsequently worked with Korean Architects Collaborative International. Parsons served as construction and project manager with Samsung Engineering & Construction awarded a major construction contract, including runway, airplane taxiway and large parking apron. Yooshin Engineering Corporation served as consultant engineer. The bulk of steel used for construction was supplied by POSCO. Daewoo Engineering Company undertook the geotechnical investigation with Hanjin Information Systems and Telecommunications (HIST) and Thales ATM designing and installing an air traffic control system.
The installation of four additional sets of ASDE-X antennas reduce blind spots brought by heavy rainfall
The Heerim-MooyoungGensler-Yungdo (HMGY) consortium is responsible for the design, construct and implementation the project.
A consortium of Deutsche AeroConsult, Lahmeyer International and Airport Planning provided consultancy services regarding airport startup and operations. Otis Elevator Company provided elevators and escalators for the original terminal and the phase two. New Airport Hiway operates the Incheon Airport Expressway
under a 30-year license agreement.
Although the endemic phase is nearing, Incheon International Airport said it will take another three years for South Korea’s largest airport to recover the number of international passengers to pre-pandemic levels.
“Due to the prolonged COVID-19 shutdowns from China and other countries, we expect the travel demand should rebound by 2025,” said Kim Kyung-wook, CEO of Incheon International Airport. “For next year, we predict international travellers will surge by 59 percent, conservatively, and by 75 percent in an optimistic outlook.”
This year, inbound and outbound passengers are expected to skyrocket by 434.3 percent from a year earlier, driven by eased quarantine measures and rebound in international travel. The number of flights surged by 42.9 percent to 187,000.
International air cargo volumes, however, will drop by 10.8 percent to 3 million tons, with the growing number of companies using price-effective maritime transportation.
With more airplanes, airport sales revenue is estimated at 905.2 billion won ($692.6 million), up 85 percent, while its
net loss could decrease by 34 percent to 501 billion won in 2022. Next year, revenue is expected to increase to 1.8 trillion won and net loss could drop to 59.9 billion won.
In a move to improve profitability, Incheon International Airport plans to accelerate its five-phase development project that includes the expansion of Terminal 2 next year. It aims to hold as much as 100 million passengers in the airport.
In the expanded terminal space, the airport will start innovative services including the Smart Pass System that allows an off-contact check-in process, and Smart Duty-free Service, a fast-order system where customers buy duty-free products via smartphone and pick them up at airport stores, by 2023.
The airport is pushing for distinguished services for business-first class passengers and the super-rich as well. By the first half of next year, upper class passengers will be able to use their own security checkpoints through the Fast Track program.
“Following the fifth phase construction project, private jet terminals will be installed at the southern part of the Maintenance, Repair and Overhaul Complex. VIPs can use private terminals and immigration check points,” said Kim. “We believe duty-free shops and luxury resorts here can hugely benefit (from higher discretionary income individuals).”
Diversifying revenue sources, Kim vowed the airport will expand its overseas business to account for 20 percent of the total revenue in 10 years from the current 1 percent.
“The company needs to have 10 businesses that can each generate 100-billion-won profit,” said Kim. “We are participating in the bid of building Terminal 2 at Kuwait International Airport. In the Poland’s airport construction project, which aims to build a new airport as big as Incheon’s, we are considering to do step up as the joint business partner.”
A GREENER WAY TO FLY
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When done well, airports are charismatic and fascinating places. They stir the imagination, spur economic development, and enhances the identity of an entire region. For over 40 years, the team at Fentress Architects has been creating exceptional airport facilities from ICN’s Passenger Terminal 1 and DEN’s Passenger Terminal Complex—two of the world’s most awardwinning greenfield airports—to the recent Bradley Terminal at LAX, MCO’s new Terminal C, and the forthcoming Leland International Terminal at IAH.
•Over 500 million passengers experience Fentress-designed airport facilities every year
Airports are monumental portals––gateways to communities, countries, and adventures. As the world has become smaller through technological, political, economic, and social metamorphoses, passenger terminals have become civic buildings. Along with being designated civic comes profound responsibility: to promote a greater sense of humanity by representing the culture, geography, and human spirit in which they are rooted. And yet, there is more. Extensive research, constant travel, and over 40 years of experience designing airport facilities has taught Fentress Architects additional strategies for the creation of successful, long-term facilities. We know cost-consciousness is a virtue, as is longevity, flexibility, wayfinding, and the seamless incorporation of multimodal transportation networks. We also know that contextual architecture is influential architecture, as Winston Churchill explained, “we shape our buildings, and afterwards our buildings shape us.”
Cost-consciousness. Cost-consciousness involves more than just respecting a project’s budget. It also means making material selections based on prudent life cycle and replacement cost analysis. From building systems to exterior and interior finishes, all elements of a terminal’s architecture should provide maximum benefit at minimum cost on a macro level. This means devising solutions like wrapping the lower portion of columns in public spaces with brushed stainless-steel panels that will mask the blemishes luggage carts leave behind. It could also mean specifying granite or terrazzo flooring in only the highest trafficked areas, while using low-cost, durable carpets in less trafficked zones and those in need of noise dampening. Prioritization and innovative solutions lie at the heart of every cost-conscious decision, and often yield some of the most brilliant solutions.
Longevity. Lifecycle and replacement cost analysis touch on the issue of longevity. Yet, longevity is not restricted to durability. It can also be defined as the endurance or permanence of a structure, or its continuing relevance. Terminals that exude permanence and durability defy being designated as outdated. Some achieve this by encapsulating a period deemed worthy of remembering, while others do so by being flexible and adaptable—capable of weathering innumerable changes.
Flexibility. Creating spaces that can adapt to future needs generally means designing expansion phases to take the facility through the next 50 years, or two to three times its current passenger load. While there is an understanding of the technologies that may be implemented in the next decade, nothing is certain. Furthermore, it is impossible to plan for the effects of innovations like Artificial Intelligence or for requirements of pandemics such as COVID. During planning and design phases, designers must question how the airport could react if any of its various building elements became obsolete or need to be significantly expanded. Whatever the scenario, the answer always centers on adaptation.
Wayfinding. Positive passenger experiences begin with intuitive navigation. A primary challenge in airport design is keeping complex projects from becoming a maze in their attempt to fulfill all functional needs. Successful solutions begin with a comfortable scale and a clear plan. Travelers and visitors need to know at a glance where to enter, and, once inside, they should be directed with a minimum of graphics. They should also be given a moment of repose, to tell them they have arrived, to make them feel greeted, and to explain how the building works.
Multimodal Transportation Network. Airports should be planned for both internal circulation and as major elements in the creation of efficient and effective multimodal transportation networks for cities and regions. Planners must focus on reducing congestion through the thoughtful incorporation of adequate and appropriately located space for arriving and departing rail and subway lines, buses, taxis, and personal vehicles. These spaces should flow naturally into the building’s internal circulation system to alleviate stress on the check-in
and baggage claim stations.
Sense of Place. First impressions are lasting impressions. The design and feel of an airport conveys how a community views itself and the value it places on newcomers. Well-developed and consistent design elements that reference local geography serve to brand and promote the airport and region.
Striking vernacular designs often become regional landmarks and icons, which consistently appear in print and television media seeking to capture the essence of place. From airlines to retail outlets, corporations, educational institutions, convention and tourism boards, and local citizens, the airport and its surrounding community benefit from attention garnered by iconic design. As a city gains a heightened reputation through significant architectural statements, it becomes a more attractive place to visit, relocate to, and take pride in as a citizen.
Fentress Architects gained distinction in the field of airport design with the opening of Denver International Airport’s Passenger Terminal Complex in 1995. Denver’s terminal has been lauded as having the “nicest architecture” of American airports by the Wall Street Journal and recognized as the “best run airport in America” by Time magazine. Its design and technological innovations continue to be the subject of lectures and publications as the terminal remains the largest fabric-enclosed structure in America. And yet, fabric architecture does not define Fentress. Instead, the firm continues to define landmark airports the world over that grow out of a concrete understanding of the past, a comprehensive approach to contemporary and future needs, and a design philosophy that yields ambassadorial designs.
SUCCESS OF INCHEON INTERNATIONAL AIRPORT PASSENGER TERMINAL 1
Fentress Bradburn Architects now Fentress Architects was selected from an international design competition to be the design architects for Incheon International Airport Terminal 1. Millions were introduced to Incheon Bay as the site of General Douglas MacArthur’s amphibious landings that ultimately turned the tide of the Korean War in 1950, millions more have come to know it as the home of Incheon International Airport (ICN). Just off the coast of Incheon City and 30 kilometers from Seoul, ICN has been continuously ranked as one of the world’s best airports since opening in 2001.
In 2004, the airports 44 boarding gates, 18 hard stands and two runways serviced 38 million passengers. By 2019, that annual number was 71 million. By then the airport had its own golf course, spa, private sleeping rooms, ice skating rink, casino, indoor gardens, video game center and the Museum of Korean Culture.
Sound like a city unto itself? It should, because it remains one of the world’s largest aerotropolises, or “Winged Cities,” which is not only a direct translation, but also the airport’s moniker. John Kasarda, former director of the Kenan Institute of Private Enterprise at the University of North Carolina-Chapel Hill, who coined the term defined it as the burgeoning business districts that continue to develop around not only greenfield, but also redeveloped airports. Like Brasilia, Incheon’s business district was intentionally master planned to maximize efficiency, promote a singular contextually-based identity and meet the needs of a core industry, which in this case is aviation.
In addition to cognizant master planning, airport leaders sought to create a terminal facility that was also an experience, that embraces the people it serves as well as the culture-at-large. Fentress’ design imbued Terminal 1 with a strong sense of place and purpose. It was designed with the specific intent of making it warm and inviting. A material palette that includes indigenous woods and granite, the incorporation of comfortable and abundant seating areas and ample natural landscaping reminiscent of traditional Korean gardens has helped people easily comprehend and navigate the building. Interspersed throughout the facility are high tech, convenient amenities that further enhance the environment.
At nearly six million square feet, the main terminal building is organized around a Great Hall that provides a central location for transportation systems, customer service amenities, and airport operations. Humanistic design concepts were utilized to eliminate the cold, high-tech atmosphere that usually exists within large international airports. Wood finishes and appropriate lighting allow passengers to easily orient themselves and navigate at all points within the building. The main terminal and ticketing hall provide passengers with a more pleasant travel experience through the design’s incorporation of natural daylighting and interior landscaping. Skylights allow daylight to flood the entire space, which in turn permits Korean-style gardens to flourish as if they were outside. The concourses are also equipped with large curtain walls and skylights, creating a bright and open interior, much like the Great Hall.
MIDFIELD TERMINAL
In the Final Phase
“The biggest factor for us is reputation. Everybody has been waiting for this facility to open, so we want to make sure that we do so in a timely manner and in the correct fashion.”
KEY MARKETS
The new Dh10.8 billion ($2.94bn) Midfield Terminal Building (MTB) at Abu Dhabi International Airport is taking shape.
Frank McCorie Chief Operating Officer at Abu Dhabi Airports said, “The project is where we want it to be. It is on programme. There is a whole load of activity taking place, so it is really in its final phases. We are finishing trialling it and staff have to be familiar with it.”
“We will open it when we think it is the right time to open it and I must stress that — it is not necessarily about when it will be ready for opening,” he said, declining to provide a date.
“The biggest factor for us is reputation. Everybody has been waiting for this facility to open, so we want to make sure that we do so in a timely manner and in the correct fashion.”
“The right time will depend on travel demand, measures to invest in the latest technology, the addition of new service initiatives, the construction schedule, operational readiness, staff familiarisation, training, trialling, as well as initiatives to guarantee success on every transition and integration of systems,” he said.
Abu Dhabi Airports marked the 40th anniversary in January
2022 of the official opening of Abu Dhabi International Airport (AUH) celebrating its contributions to the remarkable ascension of Abu Dhabi as a centre for aviation, trade and tourism.
H.E. Sheikh Mohammed bin Hamad bin Tahnoon Al Nahyan, Chairman of Abu Dhabi Airports said: “Abu Dhabi International Airport has connected the world to Abu Dhabi for 40 years and fuelled the emirate’s emergence as a leading destination for tourism, trade and commerce. It was the late Sheikh Zayed bin Sultan Al Nahyan who had the foresight to build the airport
and thanks to his vision Abu Dhabi Airports has built a legacy forged by collaboration, innovation and service. It is a legacy that will continue to grow over the next 40 years as it supports the ongoing social and economic development of Abu Dhabi and the UAE.”
The airport was first conceived in 1974, in response to the government’s plans to modernise the newly formed UAE. Construction on the new airport began in 1979 and the new Abu Dhabi International Airport was officially opened on January 2, 1982 featuring a circular satellite terminal with a single connection to a semi-circular terminal.
During the late 1990s and early 2000s, the terminal was expanded to cater for the increase in passenger numbers. Etihad became the national carrier and the home airline in 2003 which was a catalyst for rapid growth and paved the way for the opening of Terminal 2 in September 2005, a second runway (Runway 13L/31R) in 2008 and Terminal 3 in January 2009 boosting the airport’s capacity to 12 million passengers per year.
The airport has also been home to a number of ‘firsts’. In
2014, AUH introduced the first United States border preclearance facilities in the Middle East to facilitate the processing of passengers on direct flights for entry into the United States before they board their planes. AUH launched the Smart Travel System in 2016, the first of its kind in the region, to ease passenger processing and enhance the customer experience.
During the early onset of the COVID-19 pandemic in 2020, AUH was among the first to introduce contactless gates and touchless elevators to complement its wide array of health & safety measures. Technology will also be front-
and-centre at the airport’s new Midfield Terminal Building. Construction of the Midfield Terminal Complex started in 2012 and is now 97% complete. Once opened, the Midfield Terminal Building will accommodate up to 45 million passengers per year whilst providing an exceptional passenger experience for the next 40 years.
Providing value for money has also been a core proposition at AUH. Most recently, consumers have benefited from the additional choice provided by the introduction of services by low-cost carriers Wizz Air Abu Dhabi and Air Arabia.
“Abu Dhabi International has a proud history of providing world-class infrastructure and top-flight service whilst serving as a catalyst for growth for 40 of our proud nation’s 50 years of achievement,” commented Shareef Al Hashmi, CEO, Abu Dhabi Airports. “As consumer confidence rebounds and traffic gradually recovers, we will continue to explore new technologies, products and ways of doing business that will drive improved sustainability and create industry-leading airport experiences. As proud as we are of our past achievements, we are
equally excited about our bright future.”
The much-anticipated Midfield Terminal at Abu Dhabi International Airport is set to open this year, six years after its originally scheduled opening. Construction on the terminal has hit significant delays due to the pandemic and cost overruns.
The news of the terminal’s progress comes a few weeks after the airport celebrated its 40th anniversary. New technology is also
in the works to be introduced at the airport to reduce wait times for passengers at security checkpoints.
The building was initially slated to open in 2017 but has been hit by severe delays. In 2019, the Midfield terminal was claimed to be more than 97% complete, according to Paddle your own Kanoo. But two years later, reports claimed the construction contract was going to be cancelled due to unexpected, incurred costs. The terminal’s cost was originally set at a price tag of $3 billion.
Earlier this month, the airport confirmed that over the last three years, no further progress had been made, and the terminal remains in the same state as it did before the pandemic. However, on Friday, Momberger Airport Information reported that the terminal is finally set to open later this year, with the inauguration likely taking place on December 2, 2023, the United Arab Emirates (UAE)’s National Day.
Aside from pandemic impacts, Momberger cited problems with the airport’s contractor and the ailing fortunes of home carrier
Etihad Airways as the reason for the delay.
The new Midfield Terminal is part of a multi-billion-dollar expansion program. Abu Dhabi Airports, the owner of Abu Dhabi International Airport and four other international airports in the UAE, said the building would be state-of-the-art and have
Aside from pandemic impacts, Momberger cited problems with the airport’s contractor and the ailing fortunes of home carrier
Etihad Airways as the reason for the delay.
The new Midfield Terminal is part of a multi-billion-dollar expansion program. Abu Dhabi Airports, the owner of Abu Dhabi International Airport and four other international airports in the
The terminal will also feature the world’s most extensive baggage handling system, according to construction company Turner & Townsend. As many as 20,000 people have worked on the construction of the terminal.
The news comes as Abu Dhabi Airports is reportedly set to introduce new facial recognition technology for passengers. The new biometric technology will reduce airport queuing
an annual handling capacity of over 45 million passengers. It is expected to increase the airport’s capacity by an extra 30 million travellers per year, equivalent to 8,500 passengers per hour.
During peak travel periods, the terminal will have the ability to handle more. The building can be expanded to serve as many as 84 million people per year, with a floor space of over 742,000 square meters, according to Paddle your own Kanoo.
Plenty of duty-free shops and restaurants will also be scattered throughout, taking up 28,000 square meters.
Premium lounges will reportedly cover more than 25,000 square meters.
times from check-in to boarding and eliminate the need for passengers to present passports and boarding passes at security checkpoints.
It is expected that the facial recognition system will be introduced gradually. In November, Etihad began testing the technology on flights to the US through the immigration preclearance facility at Abu Dhabi International Airport. In the coming months, the biometrics system will be expanded across the airport for all airlines to use before being rolled out at the Midfield Terminal once it opens.
KING ABDULAZIZ
“The Gateway for Hajj and Umrah Pilgrims ”
TOP RANKING PERFORMANCE
King Abdulaziz International Airport – The Gateway for Hajj and Umrah Pilgrims
King Abdulaziz International Airport is the most important one in the Kingdom, being the gateway for Hajj and Umrah pilgrims to the Holy Mosque in Makkah. It is also home to the world’s fourth largest terminal in the world:
the Hajj terminal, a whopping 510,000 square meters in size.
The airport was ranked top among international airports in Saudi Arabia for overall performance in December, as the Kingdom’s travel sector shows strong signs of rebounding, according to the latest report by the General Authority for Civil Aviation.
GACA monthly report evaluates the country’s airports’ commitment to implementing improvements in passenger experience and services based on fourteen performance criteria including time spent in travel procedures, passports, customs areas and disability services. With a commitment rate of 82 percent in December, up from 64 percent in November, King Abdulaziz Airport, also known as Jeddah International Airport, topped the list where the number of passengers exceeded 15 million annually.
In the same list, King Khalid International
Airport in Riyadh came second with a commitment rate of 64 percent, down from 73 percent in November 2022.
GACA has followed the principle of transparency when evaluating the airports’ performance, which was divided into five categories based on the number of passengers traveling annually and the type of airports.
According to the report, King Fahd International Airport maintained the first spot in the second category, where the number of passengers ranges between 5 to 15 million annually, with a commitment rate of 91 percent.
Prince Mohammad bin Abdulaziz International Airport also had a commitment rate of 91 percent in the second category in December, up from 82 percent in November 2022.
As for the third category of international airports, where the number of passengers ranges between 2 and 5 million annually, Abha International Airport and King Abdullah bin Abdulaziz Airport in Jazan maintained a 100 percent commitment rate in December 2022.
Meanwhile, Al-Jouf Airport ranked first in the fourth category of international airports that receive less than two million passengers annually, with a 100 percent commitment rate in December, the same as the rate recorded in November.
The fifth category is a ranking for domestic airports, in which Bisha Airport came first, achieving a score of 100 percent.
The National Aviation Strategy is one of the key elements in Saudi Arabia’s Vision 2030 as the Kingdom aims to diversify its revenue sources by elevating its travel and tourism sector.
According to the National Aviation Strategy, Saudi Arabia is aiming to increase air connectivity to 250 destinations, reaching 330 million passengers, and double air cargo capacity to 4.5 million tons by 2030.
The airport provides facilities required for the service of pilgrims and those who visit the country to perform Umrah. The north terminal is used by the various international airlines that fly into the airport. The south terminal is reserved for Saudi Arabian Airlines flights only. The airport as a whole serves around 12 million passengers a year.
To handle the increasing number of passengers, the airport is being expanded in three phases. The first phase commenced
in 2004 and was designed to handle 30 million passengers annually. It was completed in 2014. Phase two was designed to handle 43 million passengers annually and was completed before 2020. The third phase will handle 80 million passengers annually with scheduled completion in 2035.
The Hajj terminal, which was built when the airport was first opened in 1981, is used only during the Hajj season. It caters to Makkah (Mecca) bound passengers only. The terminal is the fourth largest in the world with a floor space of five million square feet (465,000m²) and is positioned on a site of over 100 acres (405,000m²) of ground area being well known for its signature tentshaped roof.
The Hajj terminal roof is not a tent, but consists of a white PTFE-coated fibreglass membrane (one of the largest structures of this kind type in the world). Each of the semiconical roofs was constructed from 4.6m² of the fibre-glass material, which because of harsh sandstorms in the area is self-cleaning and has a life expectancy of 30 to 50 years. The Hajj terminal consists of two rectangular, two-storey,
air-conditioned buildings (these contain airport services such as: immigration, customs, baggage reclaim areas, check-in counters) and also rectangular platforms, which are covered by the ‘tent form’ rooves. The building has a central spine, providing an entry road for buses and taxis.
The 210 rooves are supported by a tensioned support cable suspended from a grid of 144 epoxy-coated 50m steel columns, which taper from 2.6m diameter at the base to 1m at the top. The base of the fabric is suspended about 20m above the floor. In addition, there are thirty-two radial steel cables rising a further 12m attached to a 4m-diameter tension ring, allowing this large roof structure.
The material of the roofs was designed as a translucent material, but it is made for low transmission of heat (only 7% of light is allowed through) keeping the temperature down to around 80°F when the exterior temperature is over 120°F. The terminal also has its own mosque and can accommodate over 80,000 travellers at one time. The terminal is used by a variety of airline charters during the Hajj season, the only airline not using its facilities is Saudi Arabian Airlines since it only uses the South Terminal at the airport.
Geiger Berger Associates, Schlaich, Bergermann und Partner sbp and Skidmore, Owings & Merrill were the structural engineers for the project. Hochtief was the general contractor. Nippon Kokan was responsible for the steel work and Birdair provided the membrane material.
The Royal Terminal was completed in 2003 and is a completely self-contained terminal for the exclusive use of the King of Saudi Arabia, other members of the Royal family, and their personal guests, including visiting Heads of State.
The facility and its large parade grounds are designed to handle state functions, ceremonies and international events. The building is divided into three zones. A reception hall characterised by a
high tent-shaped ceiling, clad on the exterior with a copper roof, occupies the centre zone. It separates the administration, press and VIP women’s areas to the north from the Royal suite, lounges and VIP men’s areas to the south.
The airport has three runways, in addition to taxiways parallel to the runways. A distance of 2,146m separates the two parallel runways to facilitate simultaneous take-off and landing operations by aircraft as large as the A380.
A road for Ground Support Equipment (GSE) runs along the western side of the central terminal and is designed to allow access to aircraft and to facilitate the movement of baggage vehicles. Studies were carried out to determine if the specification of the runways is sufficient for the extra weight of the A380.
Budget Saudi –
Partnering growth and innovation in the Transportation Industry
The United International Transportation Company (better known as Budget Saudi) was founded in 1978 in Jeddah, Saudi Arabia. The company has been engaged in car rental activity since inception under the franchise contract of ABG Group. Furthermore, the company provides various transportation services such as
short rentals, long term leases of sedans and commercial vehicles and sell used cars.
Budget Saudi is a public listed company on Saudi stock exchange (Tadawul) since 2007. The company has recorded profitable operations and distributed dividends to its stakeholders consistently. The fully owned subsidiary of Budget Saudi is Aljozoor Alrasekha Trucking Co., operating the brand Rahaal for its commercial vehicles division.
Budget Saudi is known for its quality processes, safety measures, maintenance and upkeep of vehicles and provide exemplary services to its customers within Saudi Arabia. It has established service and maintenance centers across 14 cities to serve its customers efficiently and ensure reliability of services.
The group has access to over 5,000 rental locations worldwide in 126 countries as part of the ABG global network. Budget Saudi is present in over 29 cities in Saudi Arabia boasting the widest network and service centers for any car rental company in the Kingdom.
Credentials
• 44 years of proven track record. Proven expertise in Fleet planning and management solutions. Customized fleet solutions and logistics services to meet the budgetary needs and efficiency.
• Technology equipped to manage fleet and logistics needs according to industry best practices.
• Prompt delivery of vehicles supported by testimonials of our esteemed customers
• Customized commercial vehicles delivered with tailormade specs as per customer’s requirements.
• Work with customers as strategic partners with transparency and proficiency
• Operate & manage in-house vehicle lease contracts with leading customers.
• Provide timely reports customized to customer’s business needs and policies
* Well maintained vehicles and timely replacements throughout the lifecycles
Awards & Achievements
• Under the patronage of His Royal Highness, BudgetSaudi was one among the chosen listed companies to partner with SHAREEK Program
• Best Customer Centric Company in Saudi Arabia – 2022 (The Global Economics Awards)
• Best Vehicle Leasing Company in Saudi Arabai – 2022 (The Global Economics Awards)
• Best CEO – Logistics in Saudi Arabia award for the year 2021 Global Economics Magazine
• Forbes Middle East Award 2020 – Top 50 Marketing & Communications award in GCC
Budget Saudi Arabia won “Global Leadership Award 2019”
Budget Long Service Award 2018 – received in honor of 40 years of successful operations in the Kingdom of Saudi Arabia.
• World Travel Award – 4 consecutive WTA awards in 2018, 2017, 2016 and 2015
• Best CFO in Saudi Arabia – (2017 & 2019) Saudi Trade Finance award
• Top CEO Award 2015 – Budget Saudi CEO was listed among the top 50 CEOs of public listed companies in GCC
• Best Managed company in the logistics sector – listed by Euromoney magazine for finance and investment
• 2004 Best Franchisee in the world Award – from ABG Group
• ISO 45001:2018 (Occupational Health & Safety Management System) valid until 20 Sept 2024
• ISO 14001:2015 (Environmental Management System) valid until 20 Sept 2024
• ISO 9001:2015 (Quality Management System) valid until 20 Sept 2024
ISO 10002:2018 (Customer Satisfaction Management) until 20 Sept 2024
Services – Products
Budget offers a full range of services for all rental needs:
• Leasing & Renting of all types of vehicles – 90 plus locations in the Kingdom in 29 cities across all provinces in Saudi Arabia
• Small & Medium Sedan cars
• Semi Luxury & SUVs vehicles
• Premium Luxury vehicles
• Commercial Vehicles – Panel Vans
• Medium & Heavy Trucks Branded Vehicles – services for long term leases
• Custom built / Modified Vehicles – services for long term leases
• Tractor Heads – Customized bodies & trailers International Reservations Worldwide – 126 countries served through our international GDS system
• Premier Limousine Services –premium vehicles chauffeured by trained drivers
• Cross Border Rentals – to travel across GCC (mainly, UAE, Bahrain, Qatar & Jordan)
• Vehicle Maintenance Service – 14 maintenance and service centers across the Kingdom
• 75 Mobile Workshops in Kingdom – for the convenience and ease of our customers we provide onsite services
Services – Customer Experience To enhance the CX at our retail stores and online services, we have the following:
• Rent anywhere and drop anywhere services within the Kingdom
• Mobile App – for reservations and loyalty customers
• Call center – to serve the customers at their convenient best
• Website – for reservations, quotes, investor relations and feedback
• Emergency road assistance 24/7 – to assist our customers on the road anywhere in Saudi Arabia to ensure safety and security
• Airport Locations, downtown locations and Premium hotel locations to ensure best reach and convenience for our customers
• Equipped some of our cars to be handicapped friendly
• ADS “at your door service” –whether at home or office, vehicles delivered to your doorstep
• Budget Saudi Loyalty Program for frequent travelers
• Customer Registration Form – for loyalty registration on website
Our Social Contributions
• Budget has been proudly honored with the accreditation from “Mowaama” which allows employees with disabilities to get a fair chance of working at Budget Saudi without any obstacles.
• The cooperation between Budget Al-Atta and Aleradah organization has achieved a world record that was registered by the Guinness Book of World Records for receiving the highest number of text messages within one hour.
• Budget Saudi continues to be honored to provide its services to the pilgrims of the House of God and always strives to be part of the success of the Hajj seasons every year.
• Budget Saudi was honored by the Civil Aviation Authority for our participation in the “How to Be a Role Model” program This is about our initiative to cooperate with the management of King Abdulaziz International Airport in creating an ideal and distinctive environment at the airport.
Budget Saudi has been and will always be a big supporter for women, which shows clearly in the number of women working in Budget head office and branches. We believe in equal opportunities and training regardless of gender.
• We have also contributed to the entertainment sector by becoming the official transportation sponsor of MDLBeast, offering our services to visitors and tourists.
• Budget Saudi has contributed and encouraged the provision and use of personal protective equipment (PPE)* at work.
* PPE is equipment that will protect the user against health or safety risks at work.
Budget Saudi:
An excellent example of how established private Saudi companies have fared is UNITRANS (United International Transportation) Group and its flagship brand Budget Saudi. Even though the vehicle rental industry has been impacted by both covid and high oil prices, the company, founded in 1978, is still going strong.
Fawaz Abdullah Danish, the company’s President & Group CEO, says, “Business has been harder over the last couple of years, but for those who are prepared to adapt quickly and well experienced, growth was possible. Like other non-oil businesses in the country, we still face challenges such as the microchip shortage that affected vehicles supply and backlog in vessels movement delaying shipments.”
Saudi businesses have successfully navigated the last few years and are set to grow
Danish continues, “We are fortunate in that we have a lot of history and experience and have been able to adapt and grow. We’ve done this through various innovative approaches and developments, keeping our focus always on our customers and their preferences. We still offer affordable rental vehicles, flexible and customized corporate leasing solutions, pre-owned car
GLOBAL BUSINESS
sales, premier limousine services, and other options to reach out to our customers.
“It is always important for businesses to listen to their customers and deliver what they want. We have been in this business for 44 years and have a network of locations and service centers spread across 25 cities in Saudi Arabia. So we have great opportunities to hear from our customers and reach out to them wherever they are creating great experiences for them,” he explains.
“For example, Budget Saudi stresses the importance of high-quality vehicles and world-class service. In addition, there is always a focus on hygiene, even before the covid-19 outbreak, because that is important to our clients. Furthermore, it’s essential to operate with high ethical standards, transparency, and effective corporate governance. It is crucial to build trust, and as a result, our reputation helped us maintain and even increase our client base throughout the pandemic.
“From a business operations point of view, aspects such as adaptability, consistent development, and innovation are key. In addition, the operations and services must be backed up by technical competency and effectiveness. We have also been focusing on logistics and fleet management solutions in line with the National Logistics Development Strategy, part of Vision 2030,” Danish says.
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