Asia-Pacific Airports Magazine Issue 3, 2014

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

Spotlight on: The Environment Featured airport: Taiwan Taoyuan

Issue 3, 2014

Interviewed: Asia-Pacific’s new president

www.aci-apa.com

Special report: China’s big build Plus: Duty Free, Air Arabia & Project Jewel

Published by

ASIA-PACIFIC AIRPORTS MAGAZINE

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6 View from the top Regional director, Patti Chau, reflects on a host of issues including ACI’s role on the global stage, a new-look Regional Board and the success of ACI’s Airport Carbon Accreditation programme.

8 News

10 Changing times Joe Bates looks back at some of the highlights of the Asia-Pacific/ World Annual General Assembly, Conference & Exhibition in Seoul.

14 ACI Asia-Pacific news 17 Traffic trends 18 Record breaker David Hayes reports on the latest news and developments at Taiwan Taoyuan International Airport.

22 Culture club Asia-Pacific Airports discovers that Ever Rich is more than just a travel retail operator at Taiwan Taoyuan International Airport.

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Issue 3, 2014

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24 Aviation’s challenge Ken Lau, manager for technical and industry affairs for ACI AsiaPacific, talks to Joe Bates about the success of the Airport Carbon Accreditation programme since its introduction to the region at the end of 2011.

30 Fancy a bit of DIY? ACI World’s environment manager, Xavier Oh, outlines the benefits of ACERT v2.0, the latest version of the do-it-yourself greenhouse gas inventory tool for airports.

32 Never-ending journey Kyoko Anazai, senior manager for eco-airport development and planning at Tokyo Narita’s Community and Environmental Affairs Department, tells APA about his gateway’s green philosophy.

34 Sound bites Brßel & KjÌr’s Mike Rikard-Bell discusses an emerging threat to airport growth in Asia – aircraft noise. www.aci-apa.com

CONTENTS

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Asia-Pacific Airports

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ASIA-PACIFIC AIRPORTS MAGAZINE

CONTENTS 38 All change at the top

50 Points of view

42 Marathon man

54 Trailblazer

New president of Asia-Pacific, Dennis Chant, talks to Peta Tomlinson about his new role and ambitions to take ACI’s fastest growing region to new heights.

Joe Bates talks to Tan Sri Bashir about his time as ACI Asia-Pacific president and astonishing 42-year career, and counting, in the aviation industry.

44 Build and they will come Head of aviation at EC Harris, Caspar Baum, takes a closer look at China’s plan to create the airports that support the long-term development of its cities.

Andrew Herdman, director general of the Association of Asia Pacific Airlines (AAPA), talks to Joe Bates about airport capacity, safety and airline profitability.

How is Air Arabia faring just over a decade after its launch signalled the start of low-cost carrier flights in the Gulf region?

Sarah McCay investigates.

58 Design & build Project Jewel.

60 World Business Partners

48 Three is the magic number 62 Being social IATA’s director general and CEO, Tony Tyler, tells Asia-Pacific Airports why he has publicly voiced his support for a third runway at Hong Kong International Airport.

Asia-Pacific Airports (APA) www.aci-apa.com Editor Joe Bates +44 (0) 20 8831 7507 joe@aci-apa.com Reporter Justin Burns +44 (0) 20 8831 7508 justin@aci-apa.com

APA Issue 3, 2014

Andrew Fraser, director of marketing, Tourism New Zealand, says embracing social media is vital to destination marketing.

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

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

Elaine Harris

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

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

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

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

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

ASIA-PACIFIC

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ASIA-PACIFIC AIRPORTS MAGAZINE

VIEWPOINT

VIEW FROM THE TOP Regional director, Patti Chau, reflects on a host of issues including ACI’s role on the global stage, a new-look Regional Board and the success of ACI’s Airport Carbon Accreditation programme.

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am happy to report that passenger traffic continues to show solid growth in 2014 with a healthy rise in throughput in both Asia-Pacific and the Middle East in the first six months of the year.

Double digit growth at Abu Dhabi and Doha helped ensure that the Middle East led the way in the first half of 2014 with a strong year-on-year increase of 9%, while Asia-Pacific posted an increase of 5%.

Worthy of note, is the fact that over 90% of airports in the Asia-Pacific region recorded positive year-on-year growth in the half-year.

Nevertheless, the recent geo-political risks in Eastern Europe and the Middle East, the Ebola outbreak in Western Africa and the tragic downing of MH17 could all be potential obstacles to the surging demand of air travel.

ROLE ON THE GLOBAL STAGE

ACI is, of course, actively involved in discussions with other industry stakeholders to mitigate potential risks to civil aviation and we will continue to ensure the safety and security of the travelling public.

In order to support the global efforts to contain the spread of the Ebola virus and APA Issue 3, 2014

provide a co-ordinated international response for the travel and tourism sector, ACI World – represented by our director general, Angela Gittens – and the heads of the World Health Organization (WHO); the International Civil Aviation Organization (ICAO); the World Tourism Organization (UNWTO); IATA and the World Travel and Tourism Council (WTTC) have formed a Travel and Transport Task Force, which will monitor the situation and provide timely information to the travel and tourism sector as well as to travellers.

And in July, ACI, ICAO, IATA and the Civil Air Navigation Services Organisation (CANSO) met and jointly expressed our strong condemnation of the use of weapons against civil aviation.

All agreed that in co-ordination with the aviation industry and other bodies within the United Nations, ICAO has a vital role to play in working with its Member States to ensure the right information reaches the right people at the right time.

With support of the industry partners, ICAO will establish a senior-level Task Force composed of state and industry experts to address the civil aviation and national

ASIA-PACIFIC AIRPORTS MAGAZINE

CHANGES TO EXECUTIVE BOARD

On a brighter note, I wish to welcome the newly elected members of our Executive Board and thank their predecessors for all their hard work and dedication, none more so than outgoing president, Tan Sri Bashir.

Indeed, I would like to extend my heartfelt gratitude to Tan Sri Bashir for all his contributions as president of our region, which under his guidance, has grown in terms of membership, services and developments.

His replacement as president, Dennis Chant, the managing director of Queensland Airports Limited, is of course no stranger to us having been a strong supporter of ACI Asia-Pacific since its inception and Regional Board member since 2006.

I am confident that this new Board composition, under Dennis’ leadership, will bring new insights to the development of the airport industry in the Asia-Pacific Region.

AIRPORT CARBON ACCREDITATION

Now in its sixth year, Airport Carbon Accreditation – the only institutionallyendorsed carbon management certification standard for airports – is set to record another remarkable achievement later this year – global coverage!

The addition of ACI’s North America, and Latin America & Caribbean regions in September and November, respectively, means that the pioneering programme will achieve worldwide coverage by the end of 2014.

Launched in June 2009 by ACI Europe, the programme was subsequently extended to Asia-Pacific and Africa and to date, a

total of 107 airports across the three regions have been accredited. The number includes 20 airports in 10 different countries from the Asia-Pacific region.

You can read more about the carbon accreditation efforts of our airports, and indeed, a host of pioneering ‘green’ initiatives in this ‘Environment’ themed issue of Asia-Pacific Airports.

SAFETY AND SECURITY

ACI Asia-Pacific continues to actively engage with other regional industry stakeholders as we advocate and share our views on safety and security at events such as specialist conferences organised by the Association of Asia Pacific Airlines (AAPA) and the China Civil Airports Association.

In addition, we submit working papers and reflect the view of airports by participating as observers at Regional ICAO Meetings.

ECONOMICS AND FINANCE

In order to better serve members on shaping airport related economics policies, we have recently expanded our team by taking onboard a new member of staff (Suzanne Tong) who will look after economics and statistic matters.

The appointment demonstrates our commitment to provide the best possible support and assistance to members, particularly when it comes to traffic data analysis and airport economic affairs.

FUTURE EVENTS

As this issue is being produced for The Trinity Forum in Taiwan this September, all that is left for me to do is to remind you not to forget our final two events of 2014 – the ACI Asia-Pacific Small and Emerging Airports Seminar in Bali, Indonesia (October 20-22) and Airport Exchange in Paris (November 3-5).

The latter annual event is held in conjunction with ACI Europe, and I would personally like to invite you to join us in the French capital.

APA Hope to see you there! www.aci-apa.com

VIEWPOINT

security aspects of this challenge, in particular how information can be effectively collected and disseminated.

The findings of the Task Force will be submitted as urgently as possible to a Special Meeting of the ICAO Council for action.

ACI World and our Regional Office will be updating members on a regular basis on the development on these critical industry issues.

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NEWS

TALKING SHOP ATU Duty Free has been awarded the tender to operate 700sqm of duty free outlets in the new terminal at Salalah Airport in Oman.

The firm – a joint venture between TAV Airports and Unifree Duty Free/ Gebr Heinemann – has agreed a 10-year contract and is expected to start trading in January 2015.

General manager, Ersan Arcan, says: “The eventual six million passengers per annum capacity of the new terminal will make Salalah Airport an important destination in the Middle East.

“We applied for the management and operation of duty free, retail and F&B concessions at Salalah Airport because of the rapid rise in the number of passengers using the airport.”

The new terminal will initially have the capacity to handle up to one million passengers a year.

In 2013, Salalah Airport’s handled 747,000 passengers, and the upgrade is part of a strategy to develop the city of Salalah.

UNIQUELY SINGAPORE Changi Airport Group (CAG) has introduced some of Singapore’s favourite hawker food stall dishes in a new 1,000sqm Singapore Food Street on the third level of T3’s Departure Transit Mall.

More than 200 well-loved dishes by household hawker names are on offer for travellers who are keen to experience Singapore’s colourful hawker food culture.

The spacious dining environment features Peranakan-style decor and nostalgic-looking pushcarts seen in 1960s-Singapore, bringing travellers back to the era where many of the best meals were found at the roadsides.

Changi Airport Group’s senior vice president, airside concessions, Ivy Wong, enthuses: “The Singapore Food Street is an exciting addition to Changi’s diverse range of dining offerings as the colourful hawker food culture is a big part of the average Singaporean’s lifestyle.

“Not only do travellers now get to sample the best of local delights in Changi, they can also dine in an environment that is uniquely Singapore.”

BIDS INVITED FOR OSAKA’S AIRPORTS T he Japanese government is expected to formally invite bids for the operating rights for New Kansai International Airport in October.

According to Prime Minister, Shinzo Abe, the potential privatisation deal is expected to be among the biggest in Japan’s drive to inject private funds into public infrastructure.

Up for grabs is a 45-year concession to operate both Kansai International Airport and the smaller nearby Osaka-Itami Airport, which primarily handles domestic flights.

Sales figures of up to $20 billion are being mentioned for the airports, $12 billion of which would be used to pay debts owed to the state which were run up during the construction of Kansai.

APA Issue 3, 2014

SEVENTH HEAVEN Myanmar’s Pioneer Aerodrome Services Co Ltd (PAS) has become the latest airport operator to sign a co-operation agreement with Airports of Thailand (AOT).

According to AOT president, Makin Petplai, the accord covers four main areas of co-operation – the exchange of information via workshops and airport visits; joint work activities, including staff training; joint marketing and promotion; and sharing of airport best practices.

PAS, which operates Yangon and Nay Pyi Taw airports, is the seventh international operator to form a ‘sister airport’ partnership with AOT after Munich; Incheon; Tokyo Narita; Beijing Capital; Austin-Bergstrom; and Luang Prabang.

AOT manages six international airports in Thailand.

ASIA-PACIFIC AIRPORTS MAGAZINE

NEWS

GREEN PARTNERS Auckland Airport has launched a new eco-initiative that will see it working in partnership with tenants to achieve ambitious energy-saving targets.

Targets include aiming to save six gigawatt hours of energy, worth more than NZ$2 million (€1.26 million), and reducing carbon emissions by up to 1,000 tonnes a year.

Throughout the three-year programme the gateway will work directly with at least eight tenant companies to help improve energy use, with workshops and guidance developed for the wider group, covering freight, logistics, commercial, retail and hospitality.

Airport chief executive, Adrian Littlewood, says: “The project will enable us to create an airport of the future that is efficient, resilient and sustainable.”

Supported by the Energy Efficiency and Conservation Authority (EECA), it is thought to be the first collaboration of its type between a large-scale commercial landlord and tenants in New Zealand.

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ROOMS WITH A VIEW Brisbane Airport will get its first 5-star hotel as part of a A$150 million project developed by the Flynn Property Group and Scott Flynn Properties.

Work on the Accor branded hotel (Pullman) are scheduled to start in early 2015.

Airport CEO and managing director, Julieanne Alroe, explains: “Located at the Brisbane Domestic Terminal Precinct, this hotel and conference centre development will truly be a world-class facility attracting events and visitors.” Indeed, she insists that the development will be “a great addition to the business, conference and leisure market”. Alroe adds: “Our clear vision for property development at the airport is to create a place that complements the CBD and supports the economic and cultural growth of Brisbane and Queensland, and it is important that we continue to create a place that provides convenience and enhances the passenger experience.”

CONSULTATION STARTS ON NEW SYDNEY AIRPORT Sydney Airport has accepted the Australian government’s proposal to take part in a consultation on the development and operation of the planned Western Sydney Airport at Badgerys Creek.

Under the 2002 Sydney Airport Sale Agreement, the gateway has a right of first refusal to develop and operate a second hub in Sydney.

It is believed that the new airport will cost around A$2.5 billion ($2.3 billion) and would enjoy 24 hours a day operating status because of its location 50km west of the Sydney’s Central Business District (CBD).

Kerrie Mather, CEO of Sydney Airport, says: “Since Badgerys Creek was confirmed in April this year as the site for the Western Sydney airport we

have been engaged in preliminary discussions with the Department of Infrastructure and Regional Development.

“Together with the department we have begun to map the considerable work that needs to be addressed during the nine-month consultation period.”

After the consultation, the government may enter a contractual phase which would involve issuing Sydney Airport a notice of intention setting out the terms for the development and operation.

It would then allow Sydney Airport four to nine months to consider the exercise of its option, theoretically paving the way for a mid-2020s opening. www.aci-apa.com

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ASIA-PACIFIC AIRPORTS MAGAZINE

EVENT NEWS: ANNUAL ASSEMBLY

Changing times Joe Bates looks back at some of the highlights of the ACI Asia-Pacific/ ACI World Annual General Assembly, Conference & Exhibition in Seoul.

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he election of a new president, recognition that the region’s airports continue to lead the way on customer service, and a raft of environmental awards can only add up to ACI Asia-Pacific’s annual Assembly, Conference & Exhibition.

Commenting on his new role, Dennis Chant, enthused: “It is my honour to be elected as president of ACI Asia-Pacific and I thank our members for their enormous support.

“I will be working closely with other Board Directors and the Regional Office and together, I hope we will bring the organisation to new heights.”

Talking briefly about his predecessor, Tan Sri Bashir Ahmad Abdul Majid, the outgoing managing director of Malaysia Airports Holdings

APA Issue 3, 2014

Berhad, he added: “On behalf of the new Board and all members, I wish to thank our outgoing president for his leadership and guidance.

“Tan Sri Bashir has been a great friend and mentor, and we were greatly inspired by him in the last four years. I look forward to his continuous guidance and contribution as he will continue to serve ACI Asia-Pacific as immediate past president.”

NEW BOARD MEMBERS

New to the Board are Sulaiman Zainal Abidin (Myanmar); HE Ali Salim Al Mifda (UAE); Xuesong Liu (China); ACK Nair (India); Makin Petplai (Thailand); Mark Young (Australia) and Waleed Youssef (Saudi Arabia), while existing members Seow Hiang Lee (Changi Airports Group), PS Nair (Delhi International Airport) and Emmanuel

ASIA-PACIFIC AIRPORTS MAGAZINE

RECORD BREAKING ATTENDANCE

With over 1,000 delegates and 62 exhibitors – a record for an ACI World event held outside of North America – May’s joint ACI Asia-Pacific/ ACI World Annual General Assembly, Conference & Exhibition in Seoul was a success before it even started.

As well as the usual two-day conference and spectacular Gala Dinner at the Lotte World Ice Rink – which included the 2013 Airport Service Quality (ASQ) and the Director General’s Roll of Excellence awards ceremonies – this year’s gathering featured a pre-event World Human Resources Forum and a Safety Symposium.

Arguably, the highlight of the day for many at the World Human Resources Forum was a highly entertaining and informative CEO/Leadership session when Egyptian Airports Company’s Adel Ali El joined three of the world’s best known airport bosses – Aéroports de Montréal’s James Cherry, Sydney’s Kerrie Mather, and Munich’s Michael Kerkloh – to discuss issues such as the difficulty in recruiting young people, the changing role of airport HR teams, and leadership succession.

All agreed that staff are an airport’s greatest asset and that having fully engaged, motivated and capable staff onboard and in tune with their respective company strategies was vital to their success.

Mastering the art of leadership; achieving customer service excellence; reaching a sustainable balance between economic regulation and airport investment; learning best practices and emerging trends in ensuring the continuity of service; and, finding strategies to facilitate growth and maximise revenues from air cargo were among the topics debated during the main conference.

The keynote address on Day One was given

by Dr Olumuyiwa Benard Aliu, president of the ICAO Council, who commented on the progress made on the various projects that ICAO and ACI collaborated on.

He concluded: “From ICAO’s perspective, ACI has been an excellent representative of your agreed positions and views and I am very confident of our shared success if we continue to work towards our goals.”

ECONOMIC OUTLOOK

ACI economic figures showed that the industry as a whole was profitable in 2013, although ACI director general, Angela Gittens, repeated the concern that industry profitability is primarily generated from the 20% of airports that carry the bulk of passenger traffic.

In fact, 67% of airports globally operate at a net loss and 80% of airports with fewer than a million passengers posted an average net loss of 6%. Furthermore, airports with fewer than one million passengers had a return on invested capital of -1.1%.

TRAINING

ACI’s training programmes and 14 training centres continue to go “from strength to strength,” according Gittens.

Indeed, the Gulf Centre for Aviation Studies (GCAS) received a special award from ACI in recognition and appreciation of its dedication and commitment to hosting and facilitating ACI training programmes for over 1,000 delegates in the past four years. www.aci-apa.com

EVENT NEWS: ANNUAL ASSEMBLY

Menanteau (Cambodia Airports) were appointed first vice president, second vice president (along with Sydney’s Kerrie Mather) and secretary-treasurer, respectively.

Patti Chau, regional director of ACI Asia-Pacific, said: “I wish to congratulate all elected members of the Board and, on behalf of the Regional Office, would like to add my personal thanks to Tan Sri Bashir for his guidance, together with the other Board members, in helping to make ACI Asia-Pacific the association it is today.

“That is an association that truly advances members’ collective interests and acts as the voice of the airports. I am confident that this new Board composition will bring new insights to the development of the airport industry in the Asia-Pacific region.”

Find out more about new ACI Asia-Pacific president, Dennis Chant, and read our tribute to Tan Sri Bashir, later in this issue.

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EVENT NEWS: ANNUAL ASSEMBLY Commenting on receiving the award, His Excellency, Ali Majed Al Mansoori, chairman of Abu Dhabi Airports Company (ADAC), said: “The Gulf Center of Aviation Studies was established in 2009 with one main goal: to develop a pool of local talent that will ensure the development of the aviation industry and drive it strong into the future.”

ENVIRO CHAMPIONS

Six Asia-Pacific gateways received Airport Carbon Accreditation certificates in Seoul – Incheon, Kaohsiung, Macau, Bangkok Suvarnabhumi, Sharjah and Sydney.

“We’re committed to managing the airport in an environmentally sustainable way, minimising our impact on the environment and meeting voluntary global commitments for reducing carbon emissions,” said Mather of Sydney’s Level 1 accreditation.

“Working to reduce environmental impacts is an essential part of our strategy. We have mapped our carbon footprint and are now working to reduce our carbon emissions.”

CUSTOMER SERVICE EXCELLENCE

As has become the norm, the ASQ awards ceremony featured the usual high number of winners from the Asia-Pacific region, led by all conquering Incheon, which APA Issue 3, 2014

once again scooped two honours – Best Airport in Asia-Pacific and Best in the 25-40mppa categories.

Other Asia-Pacific winners included Changchun (China); Haikou Meilan (China); Seoul Gimpo (South Korea) and Singapore Changi (Singapore) respectively for topping the 2-5mppa, 5-15mppa, 15-25mppa and Over 40mppa categories.

While Abu Dhabi was voted Best Airport in the Middle East (ACI’s Asia-Pacific region incorporates the Gulf airports); Kolkata (India) and Amman (Jordan) accepted awards for being the most improved airports in Asia-Pacific and the Middle East respectively, while Langkawi was named best airport handling under 2mppa in Asia-Pacific.

In addition, Cairo, Dubai (DXB), Hyderabad Rajiv Gandhi and Taiwan Taoyuan airports have all been inducted into the ACI Director General’s Roll of Excellence.

GROWING NUMBERS

ACI Asia-Pacific also announced that Erbil International Airport (Iraq); Maldives Airports Company Limited (Maldives); Manas International Airport (Kyrgyz Republic); and Pioneer Aerodrome Services Co Ltd (Myanmar) have become new members since the 2013 Assembly Conference & APA Exhibition in Phuket.

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ACI ASIA-PACIFC NEWS

Regional update Vivian Fung reports on the Regional Operational Safety Committee’s meeting in Seoul and welcomes aboard a new member of the team.

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hen it comes to aviation safety, arguably, advanced aviation technology, aircraft maintenance and airport infrastructure such as runways are among the first things that come to mind.

It seems that people seldom think of airport staff or specifically the employees that work daily to ensure the safe movement of aircraft on the airfield and the maintenance of airport facilities.

This is not an oversight made by the ACI Asia-Pacific Regional Operational Safety Committee, which recognises the key role that qualified and well-trained airport workers play in aerodrome safety.

Indeed, it held a session with the heads of our Regional Human Resources and Training Committees at the recent joint ACI Asia-Pacific/ACI World Assembly Conference & Exhibition in Seoul.

The main purpose of the joint session was to discuss the demands likely to be faced by safety professionals in the future, and consider the importance of developing new safety cultures at airports to ensure that well-trained and qualified workforces are ready, willing and able to help the region cope with rising traffic figures for decades to come.

The committees also discussed the existing ACI education programmes for safety and airside operations; the ICAO Next Generation of Aviation Professions initiative; and the set up of a competency matrix (a table of skill requirements for different types of airport operations job) for airside workers.

Also on the agenda was a survey to gauge the maturity of the existing safety culture in the APA Issue 3, 2014

region, and the need to establish/continue training programmes or campaigns to fill any gaps identified.

As usual, the Committee went on to discuss its engagement with ICAO in the Asia-Pacific and Middle East regions, an important and perennial part of the Committee work plan.

ACI Asia-Pacific, of course, participates in the safety meetings of the two ICAO regions to ensure airports’ views are duly considered when ICAO establishes its policies and plans to improve aviation safety.

The Seoul meeting was the final one chaired by Incheon’s Eun Byul Kim (Incheon), who is stepping down from her position after two years in the hot seat. The Committee expressed its deep appreciation for her leadership and wished her well for the future.

She will be replaced by Smaël Banse, who was previously vice chair and will lead the Committee for the next two years. Cheng Ling Perng (Malaysia) was elected the new vice chair, also for a term of two years from 2014 to 2016.

If you would like to join the Committee, which meets twice a year to discuss airport operational safety issues, please contact ACI Asia-Pacific, Senior Manager – Technical & Industry Affairs, SL Wong at sl@aci-asiapac.aero.

WAVE HELLO, SAY GOODBYE

In other news, Derek Liu has finished his secondment with the Regional Office and returned to Beijing Capital International Airport, but his chair was not empty for long as he has been replaced by Kyoji Fukuda from Tokyo Narita International Airport.

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October 22-24 ACI Asia-Pacific Small & Emerging Airports Seminar Bali, Indonesia

2014

November 3-5 Airport Exchange Paris, France

2015

February 25-27 Airport Economics & Finance Conference London, UK

2015

April 27-29 ACI Asia-Pacific Regional Assembly, Conference & Exhibition Dead Sea, Jordan

ACI ASIA-PACIFIC BOARD PRESIDENT Dennis Chant* (Queensland Airports Limited, Australia)

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

SECOND VICE PRESIDENTS

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

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

Kerrie Mather* (Sydney Airport Corporation Limited, Australia)

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

PS Nair* (Delhi International Airport Limited, India)

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

SECRETARY-TREASURER

Hong-Yeol Choi (Incheon International Airport Corporation, Korea)

Emmanuel Menanteau* (Cambodia Airports, Cambodia)

Kenichi Fukaya* (Narita International Airport Corporation, Japan)

ACK Nair (Cochin International Airport Limited, India)

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

Makin Petplai (Airports of Thailand Public Co Ltd, Thailand)

Seok Ki Kim (Korean Airports Corporation, Korea)

Alok Sinha (Airports Authority of India, India)

Derun Li (Shanghai Airport Authority, China) Xue Song Liu (Beijing Capital International Airport Co Ltd, China) Laurensius Manurung (PT Angkasa Pura II, Indonesia) Pedro Roy Martinez (AB Won Pat International Airport Authority, Guam)

Mark Young (Adelaide Airport Limited, Australia) Waleed Youssef (Tibah Airports Operation Co Ltd, Saudi Arabia)

REGIONAL BOARD DIRECTOR (WBP) Andrew Ford (DFS Group Limited, Hong Kong)

* WGB member **Regional Advisor on WGB

The ACI Asia-Pacific region represents 99 members operating 594 airports in 48 countries and territories. www.aci-apa.com

ACI ASIA-PACIFC NEWS

EVENTS 2014

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TRAFFIC TRENDS

TRAFFIC TRENDS Year-to-date Airports in Asia-Pacific and the Middle East enjoyed respective 5% and 9% increases in passenger traffic in the first half of 2014.

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continued to have a negative impact on passenger traffic.

Middle Eastern airports continued to demonstrate steady growth in the first half of 2014, with Abu Dhabi (+19.4%) and Doha (+14.5%) leading the pack with double-digit growth.

Over 90% of reporting airports in the Asia-Pacific recorded positive year-on-year growth in the first six months of 2014 – a notable exception being Bangkok Suvarnabhumi (BKK), which reported a decline of 12%, likely contributed by the continuous political unrest in the city since late 2013.

Cargo traffic growth in the region continued the increasing trend but also APA at a slower pace in June 2014.

espite the healthy six monthly rise in passenger traffic, throughput across the region slowed down in June 2014, with Asia-Pacific airports recording a year-onyear increase of 3.3% while airports in the Middle East posted an increase of 4.4%.

Traffic growth for June 2014 showed mixed results across reporting airports.

Among the top five, Beijing (PEK) was the busiest but with negligible growth (+0.1%), while Tokyo Haneda (HND) and Hong Kong (HKG) posted solid growth of 7.6% and 4% respectively.

Both Jakarta (CGK) and Dubai (DXB) experienced a decline in growth from last year at -7% and -8.5% respectively. The temporary runway closure at Dubai (DXB)

SUMMARY OF ASIA-PACIFIC REGION TRAFFIC RESULTS (% YOY) Jun 2014 Over Jun 2013

Jan to Jun 2014 Over Jan to Jun 2013

12-month rolling year

PaxFlash

International passengers

AsiaPacific

Middle East

AsiaPacific

Middle East

AsiaPacific

Middle East

2.3

5.0

5.5

9.5

7.2

9.6

Domestic passengers

4.2

-

4.8

-

6.0

-

Total passengers

3.3

4.4

5.0

9.0

6.4

9.3

FreightFlash

International freight

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AsiaPacific

Middle East

AsiaPacific

Middle East

AsiaPacific

Middle East

4.9

(3.9)

5.3

2.5

3.5

4.1

Domestic freight

3.3

-

4.2

-

3.9

-

Total freight

4.5

(3.9)

5.0

2.5

3.6

4.1

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AIRPORT REPORT: TAOYUAN

Record breaker

David Hayes reports on the latest news and developments at Taiwan Taoyuan International Airport.

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mproved cross-Strait relations have resulted in a large increase in passenger traffic between Taiwan and China during the past six years.

Indeed, the number of direct flights linking the two continues to grow and Beijing has eased travel approval restrictions for mainlanders wanting to visit Taiwan.

Many of the island’s airports have responded to the warming of relations by undertaking major expansion and upgrade projects to ensure that they are equipped to handle the predicted increase in traffic as Taiwan grows as an important destination in its own right and, as a gateway to China.

To inject some of the island’s renowned entrepreneurial vigour into the state-owned civil aviation industry, four years ago, the APA Issue 3, 2014

government decided to corporatise Taiwan Taoyuan International Airport (TPE) – formerly Chiang Kai Shek International Airport – and start recruiting management with commercial flare and wide private sector experience.

And Taoyuan International Airport Corporation Ltd (TIAC) general manager, Jenny Pi, has no doubt that the move has paid off in terms of results and the formation of a more customer focused corporate culture.

“Our CEO has brought private company thinking and energy to the airport,” she says.

“The government is happy with our performance as we are more efficient as an organisation.”

New CEO, David Fei, previously worked with Taiwan’s China Airlines, Air Macau and Foxconn Technology – Taiwan’s largest assembler of mobile phones – and set up

ASIA-PACIFIC AIRPORTS MAGAZINE

NEW INFRASTRUCTURE

Fei’s appointment comes at a time when preparations are underway for the design tender for TPE’s third passenger terminal.

Planned to more than double the airport’s passenger capacity, T3 will be designed to turn Taiwan Taoyuan into a major Far East aviation hub capable of handling up to 82 million passengers a year.

“We will have a terminal design tender in 2015 and construction will begin at the end of 2016 or in early 2017,” Pi tells APA. “An anticipated 32 to 34 million passengers will pass through Taiwan Taoyuan International Airport this year. This is

BRIDGING THE GAP TO T3

As commissioning Terminal 3 is a little way off, TPE’s more immediate need is to carry out a short-term expansion programme to handle projected double-digit annual passenger growth in the intervening period.

The combined design capacity of the gateway’s two existing terminals is 32mppa, and as Pi mentioned earlier, both are almost full, based on the traffic forecast for 2014.

The capacity of Terminal 1 was recently raised from 12mppa to 15mppa, and plans are in place to expand T2 to raise its capacity from 17mppa to 22mppa by 2017.

According to Pi, the 5mppa increase will allow the airport to cope with expected passenger growth until the third terminal is completed in the early 2020s. www.aci-apa.com

AIRPORT REPORT: TAOYUAN

Win Air Business Jet Co, a private jet company, before taking over Taoyuan Airport’s hot seat in December 2013.

Taiwan’s two other major international airports, Kaohsiung and Taichung, continue to be government run.

fantastic, but we are already short of capacity and need to build the new terminal to enable us to handle future growth.”

She says the new terminal alone will be capable of accommodating up to 45mppa when completed in around 2021, and that this will effectively equip Taiwan Taoyuan to handle traffic growth until 2042.

“In addition to the new Terminal 3, in front of it will be a multi-functional building with commercial, hotel and office space, a train station, exhibition halls and public parking.

It will be linked to Terminal 2 (T2) to become a mega terminal,” reveals Pi. “Our target is to build up Taiwan Taoyuan as a transit hub; the other is to enhance non-aeronautical revenue in T3.”

The gateway is also investing $350 million on upgrading its airfield, starting with extending its South Runway to 3,800m to enable it to handle the A380 and upgrading navigational aids.

The work is due to be completed later this year to ensure that both its runways are in service to handle busy peak season Chinese New Year air traffic at the end of January and start of February 2015.

Once the peak season ends, the 3,600m long North Runway will be closed to allow for its navigational aids to upgraded.

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AIRPORT REPORT: TAOYUAN

Pi points out that efforts to improve passenger handling using new technology and a better layout of the existing facilities will also help cope with passenger traffic growth while T2 is being expanded.

“We have introduced self-service E-gates for passport checks and this has reduced processing time from 30 seconds to 12 seconds, which is good, “ Pi says.

“We are also looking to increase the space for security checks and check-in, especially for group travel as our airport handles a lot of tour groups from Mainland China.

“Speeding up passenger processing times will solve a lot of problems for the airport and, I am sure, will make passengers feel happier and, hopefully, more likely to spend money in our shops and restaurants.”

And it’s not only Taiwanese nationals that get to benefit from the new technology, as TPE is advertising the airport’s self service E-gate passport check machines in Hong Kong to inform frequent business travellers of the service, as Hong Kong businessmen are the most frequent foreign travellers to Taiwan.

Moves to improve passenger processing also include the use of self-service check-in machines. To date some 53 have been installed in T1 and T2.

Not surprisingly, the most popular self-service machines are the Hello Kitty ones in T1 and the Hello Kitty combined with Disneyland self-service check-in machines in Terminal 2.

TRAFFIC TRENDS

Taiwan Taoyuan recorded 194,000 aircraft movements in 2013, a 2.5% increase over the previous year.

Passenger growth was considerably larger, although cargo volumes, like elsewhere across the region, have been mostly flat for the past year 18 months.

“We broke the 30 million mark for passenger traffic the first time in 2013,” says Pi, noting that the 30.7 million represented a healthy 10.3% rise on 2012.

Pi tells APA: “An increase in tourists from South Korea, Hong Kong, Southeast Asia and, APA Issue 3, 2014

of course China, was a major factor. Although we only started handling direct fights to Mainland China in 2008, it now accounts for 47 of the 152 destinations served from Taiwan Taoyuan and the number increases every year.”

Pi says that the airport is predicting a 3% to 10% rise in passenger numbers this year after enjoying an impressive 13% upturn in traffic in the first six months of 2014.

The figures have led the airport to predict that passenger throughput will rise by around 10% per annum for the next five years, ensuring that raising its capacity remains top of the agenda.

“It’s a happy problem to have as everyone is looking for growth,” says Pi. “We also need to make sure that our reputation for providing quality services doesn’t suffer as we grow.

“Passenger opinions are important to us.

We listen to them carefully and review feedback every two weeks or so to see if we need to do anything better. At the moment, they rate us highly for customer service and we want it to stay that way.”

In marked contrast to passenger traffic, cargo volumes at TPE were virtually unchanged at 1.57 million tonnes in 2013, although Pi is quick to point out that this hasn’t meant a fall in shipments.

She explains: “Traditionally, cargo here is electronics, products and parts and this hasn’t really changed, although nowadays laptops and mobile phones are becoming lighter and smaller, so that’s one reason our cargo volume is flat.

“Flowers and fruit exported from here is the same in tonnage, but electronic products have reduced in weight, so our guess is that we’re handling more, smaller electronics items.”

Taiwan Taoyuan expects to handle around 1.5 to 1.6 million tonnes of airfreight in 2014, based on the volumes handled during the first half of the year.

These are good times for the airport, and with traffic booming and a new relationship with Mainland China that will bring even more passengers, things can APA only get better.

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ASIA-PACIFIC AIRPORTS MAGAZINE

RETAIL: TAIWAN TAOYUAN

Culture club

Asia-Pacific Airports discovers that Ever Rich is more than just a travel retail operator at Taiwan Taoyuan International Airport.

T

here are duty free operators and there are duty operators, and then there are the ones that go the extra mile…. and help rebuild a terminal!

To explain, Ever Rich played a major role in planning, funding and helping improve the facilities across Taiwan Taoyuan International Airport’s Terminal 1.

And it did so because it believes that the airport is the gateway to Taiwan and the window for marketing all that is good about the country.

So, in addition to custom-designing the terminal’s stores, it has invested in creating 14 unique new waiting lounges under the umbrella of the themes ‘The Beauty of Taiwan’ or ‘The Glory of Taiwan’.

As a result of its actions, the 100% Taiwan owned travel retail operator has no hesitation in stating that it is “not only the airport’s make-up artist, but storyteller of Taiwanese culture, turning the airport into a museum for marketing Taiwan”.

THEMED LOUNGES

Ever Rich reveals that it spent three years searching for the highly skilled craftsmen and artists that would create the lounges as they had to represent “the very best of Taiwan’s art and culture”.

According to Ever Rich, the inspiration for its Technology Showcase Lounge was Taiwan’s high-tech industry whose achievements have been recognised on the global stage.

The lounge features a giant art installation made from thousands of recycled motherboards that weighs in at a hefty one tonne.

APA Issue 3, 2014

Describing the artwork, Ever Rich says: “The first layer of the work is the silhouette of Taiwan placed on top of the second layer, the round shape of the Earth. The third layer forms the words ‘Made in Taiwan’ and there are LED lights installed on the letters, symbolising the fact that Taiwan’s high-tech industry is a shining star on the world stage.”

Others lounges include Taiwan Faience (featuring a sea of cherry blossoms); Taiwanese Local Cuisine (based on the night market life of Taiwan); Taiwan Alpine (there are 268 mountain peaks in Taiwan that are over 3,000 metres high); and Taiwan Orchid (Taiwan exports over eight million orchids a year, making it the biggest orchid exporter in the world).

Indeed, the lounges have made such an impression on visitors that they have inspired tributes of their own – an article about their creation in La Vie magazine and a series of short films by Taiwanese director Lin Ching-chieh, whose movie ‘The Most Distant Course’ was selected as the best film in International Critics’ Week at the Venice Film Festival in 2007. The documentaries are now shown in the 14 lounges.

ENTERTAINMENT

And, there’s more still as, in a bid to ensure that departing passengers leave with fond memories of Taiwan, Ever Rich commissioned Golden Melody Award winning lyricist, Fang Wen-shan, to write a special airport song called ‘On the Road’, which is based on characters created by famous calligrapher Zhu Chen-nan.

ASIA-PACIFIC AIRPORTS MAGAZINE

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RETAIL: TAIWAN TAOYUAN

In fact, it proved so popular that Xu Jia-ying, a finalist in this year’s Golden Melody Awards, released it as a single.

AIRPORT RETAIL OPERATOR

Its contribution to the modernisation and success of Taiwan Taoyuan International Airport is such that it is sometimes easy to forget that Ever Rich is Taiwan’s biggest duty free shop operator, employing more than 6,000 staff at multiple locations at home and abroad.

In Taiwan, in addition to Taiwan Taoyuan, (T1 and T2), it has duty free shops at Kaohsiung, Songshan, Taichung and Hualien airports as well as the passenger terminal at Keelung Harbour. It also operates a host of downtown pre-order centres in Taipei.

Its determination to be different means that the duty free areas at Taiwan Taoyuan boast a number of unique facilities ranging from a 12-metre high ‘green wall’ made up of 3,000 plants to a 360 degree circle of information counters and Hello Kitty baby rooms that provide free wet napkins and nappies.

The duty free area also contains a Taiwanese Hakka shop and an Aboriginal outlet, which, Ever Rich notes, allows passengers to “experience the local culture and buy some unique gifts”.

Regular art and cultural exhibitions/ promotions add to the mix and gives

passengers extra opportunities to experience Taiwan’s traditional art and culture.

“Apart from providing good duty free products at a good price, we believe that most tourists want to experience the local culture and they can do both at Taoyuan International Airport,” says an Ever Rich spokesman.

“Our strength is not the size, luxury or modern facilities of Taiwan Taoyuan, but the cultural experience we have created within the space. Visitors will find a place full of Taiwanese art and culture and great service that is worth spending time in.”

These sentiments certainly appear to reflect the core values of Ever Rich founder, Simon Chiang, who is said be “guided by public service, and serving the public interest”.

So much so, in fact, that his philosophy extends to encouraging employees to take part in community service activities, and this has led to Ever Rich being recognised for its efforts with a National Public Service Award for profit-seeking enterprises.

Moreover, Ever Rich recently became the first retail company in Taiwan and the first duty free operator in the world to publish a Corporate Responsibility Report recognised

by Bureau Veritas.

Sounds like the duty free operations and more at Taiwan Taoyuan International Airport APA are in good hands. www.aci-apa.com

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ASIA-PACIFIC AIRPORTS MAGAZINE

SPECIAL REPORT: ENVIRONMENT

Aviation’s challenge Ken Lau, manager for technical and industry affairs for ACI Asia-Pacific, talks to Joe Bates about the success of the Airport Carbon Accreditation programme since its introduction to the region at the end of 2011.

How important is it for today’s airports to be seen to be green?

Airports today do not only want to be seen to be green, they want to operate accordingly so that any environmental claim is supported by strong track records. Indeed, for an enterprise such as an airport to sustain itself over the long-term it must maintain positive economic benefits to invest in its activities and, for its stakeholders, it must develop positive impacts broadly across society both in its community and in communities affected by its activities, and it must participate in maintaining eco-systems.

Being environmentally friendly is now a APA Issue 3, 2014

requirement to secure an airport’s “permission to grow”. This means that airport operators need to think through their daily operations with a strong focus on managing their environmental impacts. Achieving this ‘sustainable growth’ for an airport is a clear competitive advantage.

What are the possible consequences to airports of failing to be environmentally friendly?

Airports that fail to be environmentally friendly could have their expansion plans rejected by local authorities or communities that, in turn, puts their future growth in

ASIA-PACIFIC AIRPORTS MAGAZINE

Have Asia-Pacific’s airports been quick to embrace Airport Carbon Accreditation?

ACI Asia-Pacific became the first region outside of Europe to endorse the programme, which I think shows the strength of our commitment to supporting our members’ efforts to achieve more carbon-efficient operations. Since then, the number of certified airports has doubled each year and currently stands at 20 gateways, which accounted for nearly 20% of all passengers handled across the Asia-Pacific region in May 2014. This is a great achievement!

Beyond Asia-Pacific, it is remarkable to see the programme gaining strength across continents, as 107 airports are now certified in Europe, Asia-Pacific and Africa.

All have made the bold move to integrate Airport Carbon Accreditation into their business strategies as it helps them set and reach individual carbon management targets, build-up proactive responses to national regulations and provides the recognition they deserve for their carbon management activities.

Can you tell us more about some of the success stories, and explain what each has done to achieve their ACA success?

It would be unfair of me to go into detail about what any particular airport has done, but I urge readers to refer to read the 2013-2014 annual report of Kaohsiung, the 2012-2013 annual reports of both Bangalore and Hong Kong airports and the 2011-2012 annual report of Abu Dhabi for examples of what can be done.

What’s next for ACA in the Asia-Pacific region?

Our main task remains to increase the number of airports participating in the programme. We also monitor very closely individual airports’ decisions to upgrade within the programme, showing an increasing commitment to carbon management activities. In this respect, we do our utmost to demonstrate the benefits associated with emissions reduction activities and stakeholder engagement plans. It is also of interest to the membership of ACI AsiaPacific that we raise awareness of national and international decision-makers on Airport Carbon Accreditation. Indeed, this programme measures the carbon performance of airports and is voluntary, which makes it quite unique.

Last, but not least, we will continue to promote it as the only carbon mapping and management standard specifically designed for the airport industry, thus contributing to making it the standard for airports worldwide.

Can aviation ever shed itself of the unfair image of being bad for the environment?

Aviation, as with any human activity, does have an impact on the environment. What matters most to us is not to be seen as being good or being bad for the environment but to understand in detail the environmental impacts of our activities and take mitigation measures as appropriate. In a fast-growing sector such as ours, the key is to be able to manage the impacts of airport operations, even if they represent a small share of the overall sector’s footprint. Airports represent only 5% of international aviation CO2 emissions but are determined to do their fair share in the fight against climate change.

Are airports doing enough to tell the world about their many environmental initiatives/good track record?

Individually and at local level, airport operators do actually communicate a lot about their environmental activities in the fields of noise, air quality, water or waste www.aci-apa.com

SPECIAL REPORT: ENVIRONMENT

jeopardy. Airports are often deeply-rooted at local level and being ‘green’ helps them to be seen as a good neighbour and a corporate citizen.

On the opposite end of scale, the Airport Carbon Accreditation programme has demonstrated that a sound carbon management policy goes hand-in-hand with a good business case.

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SPECIAL REPORT: ENVIRONMENT

management. Environmental or Corporate Social Responsibility reports are easily accessible to the public. However, as these impacts remain local, communicating at industry level proves to be more challenging. CO2 emissions have a global impact and Airport Carbon Accreditation allows for publication of independently verified aggregate figures for the industry.

In this respect, it is an excellent channel to tell the world not only about the measures taken by airports to mitigate their carbon footprint but also about the concrete CO2 emission reductions resulting from these activities.

What would you say to an airport that was thinking of becoming carbon accredited?

For airports, the benefits of participation in the Airport Carbon Accreditation programme fall broadly into two categories – hard and soft benefits.

Hard benefits are measurable and consist of: • Improving operational efficiency by incentivising innovative activity to reduce energy use.

• Promoting energy-saving through the implementation of carbon reduction initiatives, thereby reducing costs across those activities under the airport’s direct control.

• Sharing knowledge on carbon management.

• Developing a clear understanding of emission sources facilitated by meeting the requirements at each level, enabling the airport to identify priority areas for emission reduction.

• Collecting data, which helps to support the development of a business case for emission reduction initiatives for sources under the airport’s direct control.

• Adopting a systematic approach to carbon management ensures that information and data are managed in an efficient way. www.aci-apa.com

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SPECIAL REPORT: ENVIRONMENT

• Engaging with stakeholders to move to a more strategic and comprehensive approach to carbon management.

• Helping secure licence to grow and development consents through alignment with emission requirements of local planning conditions.

• Increasing shareholder value, brand reputation and stakeholder support.

Soft benefits consist of: • Increasing an airport’s credibility by sending an early signal that it is pro-actively addressing the climate change agenda.

• Promoting dialogue between airport personnel and departments on issues relating to CO2 emissions.

• Supporting dialogue with stakeholders on the reduction of emissions from sources that an airport can guide and influence.

• Enhancing the public image of airports by differentiating it as a leader in the field of carbon management and improving community relations.

• Reducing regulatory and litigation risks and enhanced planning and regulatory approvals.

In addition, the wider airport stakeholders benefit through the facilitation of knowledge transfer and increased transparency on carbon emissions. Airlines and service partners share many of the benefits outlined for airports, through the implementation of carbon management plans, including reduced energy costs.

APA Issue 3, 2014

Finally, Level 3 accreditation and above include emissions from and to the airport. As such, Airport Carbon Accreditation has been recognised as a significant tool in the EU financed project D-AIR (Decarbonise Airports), which aims to encourage co-operation between airport operators and local authorities to develop environmentally friendly access to airports.

Airports accredited at Level 3 and above show mature mobility plans for staff and passengers.

Through enhanced dialogue between stakeholders and more efficient operations, Airport Carbon Accreditation supports the delivery of a better service to passengers.

What target has the aviation industry set for carbon accreditation?

Through the work of the Air Transport Action Group (ATAG), the aviation sector set itself a target of carbon neutral growth as of 2020, and a reduction by 50% of CO2 emissions by 2050. These goals cover all phases of the flight, therefore engaging various stakeholders in delivering it.

Four pillars were identified: the technological pillar, with the use of biofuels; the infrastructure pillar and savings related to a more efficient ATM; the operational pillar; and, the market-based pillar. The airport industry is expected to support the delivery of CO2 emission reductions in relation to the infrastructure APA pillars, which it is actively engaged in.

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ASIA-PACIFIC AIRPORTS MAGAZINE

SPECIAL REPORT: ENVIRONMENT

Fancy a bit of DIY? ACI World’s environment manager, Xavier Oh, outlines the benefits of ACERT v2.0, the latest version of the do-it-yourself greenhouse gas inventory tool for airports.

A

irport Carbon Accreditation has been available to airports in the ACI Asia-Pacific region since November 2011, and to date, there are 20 airports in the region that have their achievements in CO2 emissions management certified.

It needs to be remembered that carbon management and accreditation is not just for the big airports. For example, Parafield Airport, a general aviation and training airport in Adelaide, has Level 1 Accreditation.

Barriers for small airports wishing to gain carbon accreditation can include a lack of expertise in emissions and environmental management, as well as the cost of a consultant to conduct an emissions inventory.

To assist its member airports, ACI has developed the Airport Carbon and Emissions Reporting Tool (ACERT). This is a selfcontained Excel spreadsheet that enables an airport operator to calculate its own greenhouse gas (GHG) emissions inventory.

It is available at no cost to airports and can be used without emissions or environmental expertise. The software was initially developed by Transport Canada and its consultant EBA, and adapted for APA Issue 3, 2014

global use by ACI with the co-operation of Toronto and Zurich airports.

Conducting an inventory is the first step to managing GHG emissions and the entry requirement of Airport Carbon Accreditation. After all, an operator needs to understand the sources, quantities and ownership of emissions at the airport and an inventory can assist with setting goals and targeting mitigation efforts.

ACERT v2.0 has been approved for the mapping requirements of Airport Carbon Accreditation Level 1 (Mapping) and Level 2 (Reduction).

It is particularly useful for airports with no dedicated environmental staff or budget for consulting fees, and for airports developing GHG management on a voluntary (non-regulated) basis. Only operational data is required and it is entered into a self-explanatory Excel spreadsheet.

For the calendar year of the inventory, the following information is needed: total aircraft, passenger and cargo movements; fuel use by airport and tenant vehicles, buildings, emergency generators and fire training; electricity (and heat) purchased by the airport operator and tenants; aircraft movements categorised

ASIA-PACIFIC AIRPORTS MAGAZINE

Scopes 1 and 2

Scopes 1, 2 and 3

20.2 kt CO2e

589.2 kt CO2e

Airport airside vehicles

Airport Scope 1

Airport Scope 2

Airport buildings (gas/oil/coal)

Aircraft (LTO & taxi)

Aircraft (other)

Airport emergency generator

Tenant airside vehicles

Tenant elect./heat/fuel

Airport electricity purchase (Sc2)

Tenant landside vehicles

Employee vehicles

Public landside vehicles

Airport carbon and emissions reporting tool (ACERT)

either by specific aircraft type or by generic aircraft type, or total fuel loaded onto the aircraft; aircraft taxi and APU usage times and engine run-ups; and either a detailed landside traffic study or estimates of passenger and staff ground access such as use of public transport, and car, taxi, bus and train activity.

Methodologies are consistent with the ACI Guidance Manual on Airport Greenhouse Gas Emissions Management (2009). ACERT automatically generates an inventory report (see sample extract above) that includes a summary table of GHG emissions and pie charts.

To obtain a free copy of ACERT, send an email request to ACERT@aci.aero. APA www.aci-apa.com

SPECIAL REPORT: ENVIRONMENT

Airport GHG Inventory

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SPECIAL REPORT: ENVIRONMENT

Never-ending journey Kyoko Anazai, senior manager for eco-airport development and planning at Tokyo Narita’s Community and Environmental Affairs Department, tells APA about his gateway’s green philosophy.

T

okyo Narita and its owner-operator, NAA, work extensively to protect the environment in and around the airport.

Indeed, because the construction of Narita Airport involved the development of areas that were formerly woodlands and farmlands, environmental conservation has formed an important part of our consideration towards the local community since opening, and a number of the measures have been implemented over many years.

ERADICATING BIRD STRIKES

Like at other airports, the greenbelts around Narita’s runways and the wooded buffer zones around the airport, if left untouched, would attract flocks of birds in search of food, which could cause bird strikes.

In fact, Narita is known to have a high occurrence rate of bird strikes compared to other airports in Japan, even when taking geographical conditions into account.

Therefore, in recent years, we have made every effort to rid the airport of birds, even going as far as hiring falconers.

APA Issue 3, 2014

Some of Narita’s users have expressed the opinion that if we have bird strike problems, we should replace the airport’s green areas with concrete, but quite frankly, this is a non-starter as we do not believe such action is in keeping with our ‘Eco-Airport’ or ‘Green Airport’ principles.

Our view is that we should do the best we can to assimilate with the surrounding landscape into nature, despite the fact that such greening measures or tree-planting efforts require a lot of regular maintenance work so as not to ruin the aesthetics of the airport.

As a result, we mow the grass areas several times a year to keep it looking pleasing to the eye while at the same time eliminating insects and small animals.

We are environmentally friendly in our disposal of the grass clippings. Instead of incinerating them at considerable expense to NAA and the eco-system by creating additional CO2 emissions, we give the bulk of it to local farmers around the airport who require large quantities of grass clippings for their livestock.

ASIA-PACIFIC AIRPORTS MAGAZINE

NATURE PARKS AND RESTAURANTS

The tracts of land in the immediate vicinity of the airport are owned and managed by NAA for noise mitigation purposes, and this has allowed us to establish a series of nature parks for the public.

The philosophy behind the parks is simple – we want to restore as much of the natural environment as we can and creating parks with views of the airfield for people who like aircraft seems like a win-win scenario.

In fact, one of the parks was used for shooting a TV drama and immediately became a popular site to visit.

Some of the land has also been leased out via the local municipal governments and is now used by restaurants and sales outlets for consumption and distribution of agricultural products.

These restaurants and stores are always busy with customers who use them as venues for dining while watching the planes fly by, or for buying fresh vegetables and products.

This goes to show that no matter how sensitive people are to aircraft noise, as long as it does not affect their own living environments, they will happily use convenient facilities that are located in these noise impacted areas.

It is truly a good example of how the benefits of the airport can be returned to the community.

RAISING AWARENESS

We are also winning a new generation of friends through initiatives such as the Eco-Kids Club, which enables children to learn about environmental issues through familiarisation

with conservation of the natural environment around the airport.

An important part of this process also involved telling them about all the environmental measures put in place by NAA. Our commitment to the scheme is such that all newly recruited young NAA employees are assigned to champion it through supporting the children and learning together with them.

The club was set up in 2005 after NAA was privatised, and 2014 marks its 10th year.

When this plan was first conceived, NAA was already holding airport tours for children during their summer holidays, but the staff involved with the tours lobbied passionately for the additional need for environmental education.

Today, club members are invited on three tours during their one-year membership period, primarily to observe seasonal changes in nature and acquire first-hand experience of the airport’s eco-schemes, such as the GPU system or the process of disposing of waste generated at the airport, by actually visiting and touring the facilities.

We also make it a point to provide information on easy environmentally friendly actions they can take in their everyday life, which may stimulate their interest. Such club activities are always very popular.

It is our hope that our efforts will encourage future generations to preserve the nature and be conscious of the environment.

CONCLUSION

We, of course, have many other environmental initiatives that I haven’t talked about in this article, but the point I wanted to make was the fact that being environmentally friendly requires commitment and dedication and is a never-ending journey.

Quite often, environment initiatives such as the ones I listed above can easily be lost in favour of cost cutting activities. It is important that they aren’t.

From NAA’s perspective, our objective is to continue delivering environmental results, no matter how small, to fulfill our social responsibilities and, by extension, enhance APA our corporate reputation. www.aci-apa.com

SPECIAL REPORT: ENVIRONMENT

It may be just grass, but purchasing costs are expensive, and in Japan it is a make-or-break issue for the farmers.

This give-and-take relationship between the airport and livestock farmers – carried out under the guidance of Chibu Prefecture – ensures that two parties co-exist well today despite arguably being at opposite ends of the scale when it comes to the very existence of Narita.

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SPECIAL REPORT: ENVIRONMENT

Sound bites

Brüel & Kjær’s Mike Rikard-Bell discusses an emerging threat to airport growth in Asia – aircraft noise.

E

uropean Airport CEOs are only too aware that community concern about airport noise presents one of the biggest threats to the future of their airports.

Indeed, it has been the case for years, and without careful management, they know that noise concerns have the potential to trigger operating restrictions and frustrate expansion plans.

It is fast getting this way in Asia, too, although until recently, most airport managers in the region have had other issues to worry about – such as building runways and terminals fast enough to feed the insatiable demand for air travel.

For many, noise was little more than the sound of progress with economic benefit overshadowing any hint of community concern.

However, a new trend is emerging in Asia with vocal anti-noise groups capturing the attention of government decision makers in cities across the region from Delhi to Shanghai, from Bangkok to Mumbai.

APA Issue 3, 2014

And traditional noise management approaches are also under increasing pressure in Hong Kong, Korea, Taiwan and Japan as concerns over property values and quality of life begin to challenge the priority of economic development.

As a result, Asian airport CEOs are moving quickly to learn from the European and North American experiences and develop best practice strategies to ensure that noise doesn’t constrain their futures.

MINIMISING NOISE IS ONLY THE FIRST STEP

Since noise first emerged as an aviation issue in the 1960s, the industry has worked diligently to find ways to reduce its impact.

Innovative acoustic engineering aligned with the relentless drive to improve fuel efficiency to deliver modern aircraft generating 75% less noise than their 1960s predecessors.

Air traffic control, airlines and airports have worked together to develop procedures to fly these new planes as quietly as possible and minimise flying over the most densely populated communities.

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Chapter 2

ICAO Standards

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Chapter 3 0

Chapter 4

Chapter 14

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Current Technology

*ICAO data 1960

1970

1980

1990

2000

Future Technology 2020

2010

2030

Year of Certification

THERE’S MUCH MORE TO ANNOYANCE THAN NOISE EXPOSURE

For decades, aviation noise management strategies have been founded on the premise that community annoyance is directly linked to the level of noise exposure.

In fact, almost all national aircraft noise legislation can be traced back to the 1978 Schultz study that brought together a wide range of research to describe the relationship between noise exposure and community annoyance.

SCHULTZ CURVE – HOW NOISE DRIVES ANNOYANCE

It’s clear than noise exposure is a major contributor to annoyance, but recent experience shows that there are many other factors at play. If the Schultz curve fully

explained annoyance, we should have seen substantial reductions in community annoyance at airports with shrinking noise levels. Unfortunately, this is usually not the case.

At London Heathrow, for example, the number of people exposed to more than 57dB Leq noise level has fallen by over 60% in the last 20 years, however, it is hard to argue that community annoyance has reduced.

100

Percent Highly Annoyed (%)

Land use planning has been used to discourage new residential development in noise affected areas and sound insulate existing properties.

In 2001, ICAO developed the Balanced Approach to Aircraft Noise Management, bringing together these principles into an industry framework combining noise reduction initiatives with economic analysis and stakeholder engagement.

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60

All 161 DATA POINTS Given Equal Weight All SURVEYS Given Equal Weight 90% of the Data Points

40

20 0 40

50

60

70

80

90

A-weighted Day-Night Level (dB)

BEST PRACTICE NOISE MANAGEMENT

Noise Management Strategies have come a long way from the ‘what problem?’ mentality of the 1950s and 1960s and the ‘let’s measure’ approaches of the 70s and 80s.

More recently, third generation noise management has delivered impressive improvements in community noise exposure. www.aci-apa.com

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SPECIAL REPORT: ENVIRONMENT

Cumulative Margin Relative to Chap. 3

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SPECIAL REPORT: ENVIRONMENT

AircraftAircraft noise management evolutionEvolution Noise Management Maturity

Create and Maintain Environmental Capacity Reduces environmental impact

Collaborative

Proactive

Abatement

Tolerance

Education Communication Cooperative Planning

Measurement

Reactive

Complaint Resolution Model and forecast

Measure

Passive

Ignorance What noise?

Report Defend & Contest

Compliance

Transparent, Independent Reporting

Budget & penalties

Information sharing

AirlineEngagement

Agreed KPIs

What can you do?

Time 1st Generation

2nd Generation

THE FOUR GENERATIONS OF NOISE MANAGEMENT

Today’s fourth generation noise management strategies go one step further, recognising that there is so much more to community annoyance than noise exposure alone.

It has become clear that annoyance is influenced by a much broader set of concerns including trust, fairness, health effects, property prices and quality of life to name but a few.

Best practice today is focused on building community tolerance through open and transparent stakeholder engagement to address these concerns.

Leading airports are working hard to replace the silence and distrust of the past with an open and frank conversation where comprehensive information and facts are shared freely, and the wide range of stakeholder opinions and preferences can be debated on their merits.

RICH EDUCATIONAL WEB PORTALS BUILD UNDERSTANDING AND TRUST

Communications technology is playing a huge role with information rich community web portals being used to facilitate open and transparent information sharing.

APA Issue 3, 2014

3rd Generation

4th Generation

BUILDING A SOCIAL LICENCE TO OPERATE

Ultimately, each society must negotiate its own balance – the point where it decides that the benefits of aviation are in balance with its impacts.

To succeed, it is essential that the facts are clear, the debate is informed and that all voices are heard. Legislators and regulators can make better decisions when they have a balanced picture of the entire spectrum of stakeholder opinions, not just those of the vocal minorities.

MEETING THE NOISE CHALLENGE IN ASIA

Progressive Asian airport leaders are moving decisively to replace the ‘sound of progress’ approach to noise management by harnessing global best practice experience and adapting these strategies and techniques to their local contexts.

They understand that minimising noise is not enough and it’s likely that the leading Asian airports over the next few years will be the ones who adopt best practice noise APA management today.

ABOUT THE AUTHOR Mike Rikard-Bell is director strategic accounts with Brüel & Kjær.

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ACI INTERVIEW

All change at the top New president of Asia-Pacific, Dennis Chant, talks to Peta Tomlinson about his new role and ambitions to take ACI’s fastest growing region to new heights.

A

fter nigh on 40 years in the aviation and tourism business – much of it in senior leadership – Dennis Chant is planning to swap his suit for dungarees, and boardroom chair for tractor seat, to pursue life as a farmer on Australia’s Gold Coast hinterland.

But not yet. The tree-change must wait, as the genial head of Queensland Airports Ltd (QAL) still has a job to do.

APA Issue 3, 2014

At the blessing of the board, he is staying on for another two years to spearhead the next phase of growth for QAL’s stable of four Queensland airports – which includes development at Gold Coast Airport ahead of the 2018 Commonwealth Games, and some major developments in Townsville.

Oh, and he’s just accepted a two-year position as president of ACI Asia-Pacific,

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succeeding the popular Tan Sri Bashir, managing director of Malaysia Airports Holdings Berhad (MAHB), whom Chant describes as “a great friend and mentor”. Phew!

“I was looking forward to a change of lifestyle,” admits Chant, who this year turns 65, the traditional retirement age in Australia.

“But it’s such an interesting and challenging job, in some ways it seemed a bit premature to leave it when there is such an opportunity to make a difference.”

When the planets aligned enabling him to extend both his time at QAL, and lead ACI Asia-Pacific, Chant was happy to accept.

FRIEND AND MENTOR

Chant and Bashir have known each other through their ACI connections, but the relationship runs deeper: Kuala Lumpur to Gold Coast was the very first route of Malaysian LCC Air Asia X, so the cities

CHALLENGES AND OPPORTUNITIES

Chant, who has been a Regional Board director since October 2004, hopes to take ACI Asia-Pacific to new heights under his tenure.

The past decade has seen ACI mature into a truly international organisation of high standing within the aviation industry, he comments.

“That is also reflected in a much closer association with the ICAO. I think it is very important that we have some continuity within the Asia-Pacific region to continue to foster and grow those relationships that are now such a good foundation for raising the voice of the airport sector within the aviation industry, particularly in Asia.”

Under ACI’s umbrella, the Asia-Pacific region – which, of course includes the Middle East – is the fastest-growing aviation sector www.aci-apa.com

ACI INTERVIEW

complement each other as important aviation hubs.

Despite the geographical distance between them and difference in the scale of their businesses – Chant runs just four airports, whereas up until recently, Bashir headed up a group of 37 – the Australian found his Malaysian counterpart “a delight to deal with”.

“We have a lot in common, professionally and personally,” he tells APA magazine. He also appreciates the “whole new perspective” Bashir has brought to airport management.

“Bashir has been very successful not only in the context of their airports in Malaysia, but with MAHB’s investments in other airports around the world, which is another thing which holds him in high esteem in my mind,” enthuses Chant.

As ACI Asia-Pacific president, Bashir was also “very accessible” to members.

“As a mentor, not just to me but to everyone in our executive team and membership, Bashir leaves very big shoes to fill,” he says.

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in the world. He feels it’s important to maintain the communications and provide avenues for information exchange, so the more experienced and the larger can readily share their experience with newly emerging nations.

“Giving emerging countries a forum to gain knowledge that’s necessary to develop safe, secure and comfortable airport systems is a great opportunity for us in this region that probably doesn’t exist so much in the more mature regions in North America and Europe,” Chant says.

But, such rapid development also brings challenges – one being the stress it puts on airport facilities. Governments in most cases struggle to fund infrastructure development, so it is incumbent on the aviation sector to try and encourage private investment by developing regimes and environments that are conducive to long-term investment in infrastructure such as airports.

Chant sees “real opportunities” for private sector participation, quoting the example of Indonesia, which is actively exploring such options to help alleviate an infrastructure shortfall resulting from a huge growth in aviation traffic.

The second big issue Chant aims to tackle during his presidency is liberalisation of air rights across borders. Citing the ASEAN example, Chant sees this as an area “of latent APA Issue 3, 2014

Image courtesy of Rix Ryan Photography.

ACI INTERVIEW Griffith University’s vice chancellor, Ian O’Connor, with new adjunct professor Dennis Chant.

potential” that could underpin growth for the long-term future.

Open skies is a dialogue which is moving forward, Chant says, and one to which ACI can contribute to by again providing the forums necessary for exchange of ideas – such as its airport economics conferences held in Singapore and London jointly with ACI Europe – and, through its relationships with governments, ICAO and airport members.

He says: “We think it is in the best interests of airports and the economies of the countries they serve that there is a liberal regime in operation, so we will continue to try to influence that to the extent that we can.”

While Asia is not overly burdened with high taxes on aviation – with some exceptions, such as Australia – Chant concedes that high fuel costs are a huge impost on inter-regional travel.

“The more ACI articulates how important aviation is to economies, the more we can hopefully present a case that less taxation creates more activity, which creates more economic benefit,” he notes.

Of course, political stability is important when dealing with cross-border transport business like aviation, and it’s important to give people the confidence to travel for business or leisure purposes, adds Chant.

“Aviation is only as good as the political and the economic environment dictates.”

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CALL OF THE FARM

So how committed is Chant to his self-imposed deadline of retirement mid-2016, given that his farm lies just half an hour’s drive away from his coastal airport office?

“I do have my heart set on becoming a full time farmer and a farm-stay tourism operator, to create my own business and leave something for my family,” he tells APA. “I’ve been setting that up for some years now, and as much as I love it here, I am keen to move onto that phase of my life, but not just yet!”

INDUSTRY EVOLUTION

Having spent four decades in an industry which has “evolved quite spectacularly”, particularly the devolution of ownership from governments to either government authorities or the private sector, the transition to self-funding entities has made airports much more in tune with the needs of their customers, and indeed with commercial realities, says Chant.

“I think todays airports are very functional and user-friendly, and through things such as Airport Service Quality, show a constant

LEARNING CURVE Dennis Chant, who has more than 40 years experience in the aviation, maritime and tourism industries, is to be made an adjunct professor in Griffith University’s Aviation group.

Since assuming leadership at QAL, he has presided over the company’s acquisition of Townsville, Mount Isa and Longreach airports which, when combined with the Gold Coast Airport, make QAL the largest operator of regional airports in Australia.

“Having someone like Dennis Chant at Griffith University will not only help us to maintain our focus on a curriculum that is industry-relevant, but will advance our efforts to pursue research opportunities based on industry needs,” says senior lecturer in aviation management, Dr Gui Lohmann.

His appointment is especially fitting given this year’s launch of a Graduate Certificate in Airport Management – a partnership between Griffith’s Aviation group, the Griffith Business School and QAL – and, the ongoing development of a new course, Airport Planning and Management, as part of the postgraduate certificate.

Dr Lohmann says: “Airports have evolved considerably in the past 15 years, becoming commercial privatised enterprises and leading to an increasing demand for airport managers to be trained and educated in the complexities of the airport environment.”

desire to improve their facilities and offerings to the customers.

“What I’ve seen in that period of time is really that we’ve transitioned from being very much engineering and infrastructure management focused, to a very customer centric industry. Our customers are voting with their feet; (and) our numbers have grown exponentially APA in that time.” www.aci-apa.com

ACI INTERVIEW

GROWING MEMBERSHIP

As to the way forward for ACI Asia-Pacific, Chant says that “clearly, one of our strengths is our number of members in the region”.

And, within each of their countries, a lot of those members are very influential – China for instance, moving to be one of the largest aviation markets in the world, is very active in ACI. Interaction with Chinese airport operators and officials is growing rapidly, and reflective across the region, in emerging markets such as Myanmar, reveals Chant.

“We have to harness the energies and capabilities within our membership, but also understand what our membership wants of us, and how we can help them achieve this,” he enthuses, adding that ACI’s regional office in Hong Kong “is putting more emphasis on this, and that will drive our planning and resource allocation going forward.”

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ACI INTERVIEW

Marathon man

Joe Bates talks to Tan Sri Bashir about his time as ACI Asia-Pacific president and astonishing 42-year career, and counting, in the aviation industry.

H

e may be small in stature, but Tan Sri Bashir Ahmad Abdul Majid’s years of experience, knowledge, engaging personality, enthusiasm and never-ending willingness to learn, make him a giant in the aviation industry.

Such traits made him almost ever-present at airport events over the last decade – more often than not as a speaker due to his honest and often amusing stories about his experiences – and, an outstanding ‘ambassador’ for the Asia-Pacific region, particularly since being elected president of the ACI’s Asia-Pacific four years ago.

Bashir’s aviation career began back in 1972 as a management trainee with Malaysia Airlines (MAS) following the split of Malaysia-Singapore Airlines. He obviously enjoyed it because he went on to spend 29 years with Malaysia’s national flag carrier holding a variety of roles that included director of corporate planning, senior vice-president commercial and eventually, executive vice-president.

He subsequently became Advisor to Malaysia’s Ministry of Transport for a couple of years before joining MAHB as managing director/CEO in June 2003.

Luckily for us, his new advisory role with ACI Asia-Pacific will ensure that he will still be around for a little longer, but it seemed appropriate that we should celebrate his summer retirement from the role of managing director and CEO of Malaysia Airports Holdings Berhad (MHB) and the handing over of the presidency of ACI Asia-Pacific to Dennis Chant by asking him a few questions about his long career in the aviation industry.

APA Issue 3, 2014

What are the biggest changes to the aviation industry since you started in it over 40 years ago?

I would say the rapid growth of air travel in the Asian market, and a huge increase in the diversity of Asian people travelling, are two of the biggest changes. The impact of the launch of Asian LCCs cannot be underestimated, particularly over the last 10 years where their contribution has provided stiff competition to the full service carriers.

Other major changes include airport competition and the transformation of airport marketing to attract airlines. Privatisation, and a greater emphasis on commercial revenue, have also helped change the airport business model. Airports are also under more pressure today than ever before to have lower airport charges for airlines.

Have you enjoyed your career and time as president of ACI Asia-Pacific?

I love the aviation industry and enjoyed every bit of my stay with Malaysia Airlines and Malaysia Airports and, of course, ACI. It was also quite an experience for me to be with the government for a short while as an advisor.

ACI is a young organisation, and has already played a significant role in representing the airports’ interests, but there is a lot more scope to take the industry further. The merger of ACI’s Asia and Pacific regions gave us a bigger platform to push for more participation and strategic discussions instead of being merely an administrative and representative organisation.

I am also happy to have played my role in creating a platform for recognising aviation

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ACI INTERVIEW

staff as professionals through the AMPAP programme. It was an enriching experience and an opportunity to share my own experiences in the industry with other aviation professionals from across the globe as well as learning from them.

Looking back, what do you view as your greatest achievements at MAHB?

The gradual transformation of Malaysia Airports over 11 years from a departmentcentric organisation to one of Khazanah’s (Malaysian Sovereign Wealth Fund) top 20 performing Government Link Companies (GLCs) has given me a lot of pleasure. It was a logical step-by-step process with an end game in mind.

Other highlights include becoming a AAA rated company; the financial restructuring of Malaysia Airports; the formulation of Runway to Success which helped charter the growth of the company; the establishment of KPIs and clear accountability of management; and, inculcating a high performance culture among the staff and developing leadership and teamwork.

I am also proud of the conceptualisation and construction of our original Low Cost Carrier Terminal (LCCT) and, subsequently, the building of klia2; our strategy of enhancing staff wellbeing and morale

through various programmes; the growth of traffic at Malaysia Airports, climbing from 59th in 2003 to 20th in 2013; and, the successful promotion of high level events such as ACI WAGA and Routes events.

Last, but by no means least, I am pleased with the various awards MAHB picked up under my leadership, which included IATA’s Eagle Award for low charges.

What do you view as the greatest challenges facing airports in the Asia-Pacific region?

The changing business models and requirements of the airline industry are certainly two key challenges and opportunities.

Others include the competition for market share between FSCs and LCCs; the need to expand airport capacity to cater for the fast growing market in the Asia-Pacific region; the need to meet the higher expectations of the passengers in terms of service levels and safety; and, the need to enhance and use technology for various activities at the airports.

As if that is not enough, airports will also need to support and establish much closer working relationships with all stakeholders especially the airlines; face increased requirements for security processing; and, APA grow sustainably. www.aci-apa.com

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CHINA

Build and

they will COME

Head of aviation at EC Harris, Caspar Baum, takes a closer look at China’s plan to create the airports that support the longterm development of its cities.

T

he emergence of a rapidly growing middle-class demographic with aspirations to travel, along with record levels of urbanisation and continued growth in business and trade activity, have created a pressing need for better aviation infrastructure within cities across China.

The statistics underline this with recent industry analysis from China’s Civil Aviation Administration predicting that by the end of 2015, passenger volumes could reach 450 million people.

The speed and scale at which China’s economy is predicted to grow in the years that follow will only serve to exacerbate this demand.

A COMMITMENT TO CHANGE

The government has recognised this and within the most recent iteration of the Five-Year Plan (2010-2015), there was a commitment to further develop core international hub airports, trunk routes APA Issue 3, 2014

and secondary regional airports across the country.

In total, China’s Civil Aviation Authority is expected to commit more than $4.25 trillion within this period, an increase of 50% compared with the 11th Five-Year Plan.

Some of the major developments outlined within the plan include the construction of over 70 new airports and the expansion or relocation of almost 100 existing assets.

A large number of these new projects will be located in the mid-west of China and in tier two and tier three cities, as the government seeks to develop the right aviation infrastructure that will support the future development and global connectivity of places like Hainan, Lhasa and Wuxi.

One key factor that needs to be addressed, is making sure that the new facilities are predicated on a solid business case that can ultimately deliver commercially successful airports.

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CHINA

In 2011/12, around 130 of China’s 180 airports, including almost all of the country’s feeder airports, were in the red, with a combined deficit of close to $325 million.

With many operators inexperienced in planning and delivering airport projects of this scale, there is still much work to be done in order to deliver world-class airports that provide a sustainable and long-term business return, which exceed customer and airline demands, and which are flexible enough to address the future demands of rapidly growing cities throughout China.

EIGHT ISSUES TO FOCUS ON IN CHINA

So what are some of the key issues that airport operators across China need to consider as they seek to transform the aviation sector and support the country as it aspires to deliver on the Chinese dream?

Here are our thoughts on eight of the key areas we think they need to focus on over the coming years:

1. Developing the right type of airport Whether it’s building a new airport or expanding an existing asset, operators need to have absolute clarity on the type of airport they need to create.

This vision must be based on robust business planning that is anchored around concrete evidence on the flight mix, and the type and volume of passengers the airport will serve.

This insight is crucial as it informs so many other elements of the airport’s overall business strategy, including stakeholder modelling and the approach taken with regards to concessions, retail, airline mix, routes served and the future expansion strategy.

2. E nsuring the asset can respond to predicted future growth With populations likely to swell in cities across China for some time to come, the demand being placed on all types of infrastructure will continue to rise. www.aci-apa.com

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CHINA Airport operators need to ensure their assets are future proofed to respond to this – for new-build assets in particular, this means optimising the design so that phased expansion can take place within a fully functioning asset as and when demand rises.

To get this right, operators need a longterm masterplan based on robust traffic forecasting that details when, exactly, interventions will be required and the flight type and type of passenger that will need to be served.

3. Keeping CAPEX under control Airport development or expansion programmes are naturally capital intensive.

Ensuring these projects are completed on time and within the agreed budget, requires commercial expertise that may be lacking within China’s tier two and tier three cities.

Many of the operators and local supply chains in these locations will have little experience in delivering programmes of this scale. As such, they are increasingly interested in best-practice lessons that can be adopted from international projects APA Issue 3, 2014

across the globe, particularly around how to prioritise spend, ensure CAPEX doesn’t spiral, and in broader areas like supply chain management, procurement and incentivised contracting strategies.

4. Minimising the environmental impact of new assets China’s signature on the Durban agreement in late 2011 means that the green agenda must be front of mind for all developments in the country over the next decade.

This will be particularly relevant for a sector like aviation and will drive a greater focus on employing tools and mechanisms that enable airport owners to measure the environmental impact of their operations.

Such insight will then inform the strategies they look to deploy as they seek to minimise their carbon footprint and mitigate the impact of their future expansion plans.

5. Integrating the airfield and the airspace Successfully integrating the airside and airspace environments is at the heart of any efficiently run airport. In China, this has been

ASIA-PACIFIC AIRPORTS MAGAZINE

an area where airport operators have typically struggled, with delays not uncommon in some of the major airports across the country.

As the number of airports and flights within China grow, this issue could be further perpetuated unless operators have a detailed strategy in place that allows them to better manage traffic on the ground and in the skies above them.

6. Building additional operational expertise By the end of this decade, the number of fully functioning airports within China will have more than doubled compared with 2013. This will create a short, medium and long-term demand for expertise in how to successfully run airport environments so they can cope with periods of peak activity and deliver maximum operational performance at a minimum cost.

From a consultant’s perspective, this means ensuring that airports today are designed with long-term OPEX costs in mind, and delivering hands-on training with current staff so they are capable of managing these assets in the future.

8. Catering to the rise in private aircraft An increasingly liberalised airspace in China, combined with the rise in high net-worth individuals travelling within the country, will see the private jet and business aviation market expand significantly this decade.

Many of the business hubs that will power China’s continued economic growth will be based in the tier two and tier three cities so airports in these locations must consider how they will serve this particular market.

The challenge is not just about integrating them into existing infrastructure, but in offering them premium and bespoke services that cater to their particular needs whether it be first-class catering or personal maintenance hangars.

CONCLUSION

China is a vast country and its size ensures that any nationwide plans are usually on a colossal scale.

After a slow start to the Five-Year Plan, there has been significant progress in the last 18 months in terms of building the new facilities that will allow the government to deliver on the vision it set out within its manifesto.

Whatever happens over the next year, one thing for certain is the fact that the expected future growth in aviation in China means that it will be upgrading its airport system for APA decades to come. www.aci-apa.com

CHINA

7. Focusing on the cargo challenge The increased volume of business and trade in and out of China is not only creating a need for new commercial services, but also improved cargo facilities within the country’s airports.

As manufacturing hubs in areas around the Pearl River Delta continue to develop and industrial and pharmaceutical conglomerates begin to set up in the West of the country, bigger and better cargo centres need to be integrated into future airport development plans, particularly in the locations where they are transporting goods such as high-value minerals.

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HONG KONG

Three is the magic number IATA’s director general and CEO, Tony Tyler, tells Asia-Pacific Airports why he has publicly voiced his support for a third runway at Hong Kong International Airport.

A

viation connectivity has brought real benefits to the Hong Kong economy. There are some 3,500 regional offices based here that depend on aviation, employing about 140,000 people.

Aviation also supports Hong Kong tourism – a vital industry that contributes over HK$250 billion annually to the economy.

Including the tourism sector, aviation-related activity in Hong Kong provides employment to about a quarter of a million people and generates 8.2% of Hong Kong’s GDP. While the numbers are impressive, the real value of aviation to Hong Kong is most evident in what it means to the people of Hong Kong. Hong Kong is more prosperous because of aviation. It creates jobs for people, broadens minds with access to global educational and cultural opportunities, and it connects families over long distances.

This does not come without effort. It would be no understatement to say that many cities and regions are envious of Hong Kong’s connectivity and the benefits that it brings.

And the development of that connectivity APA Issue 3, 2014

needs constant attention – as would any strategic economic and social asset.

To appreciate what that attention is, we must understand the fundamentals of the hub business. Hub airports link markets of different sizes – often markets that could not support direct flights for various reasons the Hong Kong hub plays that role.

And as a result, the flight options available for those people and businesses located in Hong Kong are much greater than they would be if Hong Kong were not a hub.

About a third of all travellers through Hong Kong are making connections. So the people of Hong Kong benefit from having a third more options available when they need to get somewhere – for business or for pleasure.

Hong Kong is facing a critical decision.

Does it continue to grow the hub to reap even greater economic and social benefits?

That means building a third runway. Or, does it stay with two runways and risk the benefits?

I firmly believe that Hong Kong needs to grow the hub.

Some have suggested that Hong Kong could facilitate growth simply by up-gauging

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HONG KONG Image courtesy of Hong Kong International Airport.

the aircraft that use it. Unfortunately, the hub business does not work that way. A hub is strong when it connects markets of various sizes – with appropriate sized aircraft.

I now live in Geneva. Most of my trips – certainly all those to Hong Kong – involve a trip through a hub on a small aircraft before connecting to a large aircraft for the long-haul.

And the hubs that I am most likely to use are the ones with most options to connect. A successful hub needs a good mix of feeder routes and long-haul services.

Others suggest that maybe Hong Kong should focus on connections to just a few key cities. Going down such a route would disconnect Hong Kong from key growing markets.

Let’s look at a very practical example. The world’s attention is focused on Myanmar’s emerging economic potential. Right now there are a limited number of direct connections to Hong Kong with smaller aircraft.

That connectivity is laying the foundation for what will eventually become a very lucrative connection between the two economies. It would be ludicrous to suggest

that this development should be put on hold until the market can support daily or widebody service.

The model for a successful air hub has been tried and tested over decades – flexibly connecting markets of different sizes as efficiently as possible. To do this you need runway and terminal capacity. If Hong Kong cannot provide these basic elements, others will. Just look at the expansion projects in Guangzhou, Beijing, Shanghai or Seoul.

Hong Kong’s economy has benefited from being an aviation hub. The hub has also contributed to Hong Kong’s position as an international financial centre in Asia.

With 50% of the world’s population within five hours of flight time, HKIA can continue to play an important role in Hong Kong’s economic development.

We believe HKIA has the potential to serve another thirty new destinations within the next 20 years. But Hong Kong’s competitive advantage as an aviation hub needs to be earned continuously. And that means having the additional capacity through APA the third runway. www.aci-apa.com

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FINAL WORD POINTS OF VIEW

Points of view Andrew Herdman, director general of the Association of Asia Pacific Airlines (AAPA), talks to Joe Bates about airport capacity, safety and airline profitability.

Was 2013 a good or bad year for the region’s airlines?

It was mostly a year of continuing trends.

Passenger traffic keeps growing by about 6%; cargo is stagnant and has been for a few years, which is tough for Asian carriers, which account for about $1 trillion worth of goods or 40% of global air cargo shipments.

The decline in the cargo business has led to the parking or retirement of many freighters as the market cannot support them. As a result, the value of freight has fallen and this has been very damaging to the airlines with a heavy commitment to cargo.

Although passenger traffic continues to rise year-on-year, last year saw a drop in yields and average fares across the board, meaning that our airlines made about $2.5 billion – way down on the $5.5 billion of 2012.

In all honesty, profits are being squeezed, and 2010 was the last really good year for profits. This is in stark contrast to many US carriers which are making good profits and experiencing record-breaking load factors.

Does the rise in traffic and fall in yields indicate that there are too many airlines in Asia?

The decline in load factors does suggest there is too much capacity, and you only need a little over capacity to trigger some aggressive discounting and that can have a significant impact on revenues.

APA Issue 3 2014

Are there enough airports in the Asia-Pacific region to meet rising demand?

The short answer is no, and although new airports are being built across the region, in particular in counties like China and the Philippines, in many cases, it isn’t fast enough.

The current trend of building new airports in the Philippines, for example, is somewhat of a belated response to an explosion of traffic in the domestic market. Elsewhere, Jakarta’s main airport is already operating at twice its design capacity and the government is now looking at the private sector to build new infrastructure.

Is this scenario of private/ international investors likely to be repeated in other countries across the region?

It already is in Cambodia, the Philippines and many other countries where governments lack the funds to build new facilities, but what the region needs are more visionaries who can predict what the market will look in five to ten years time and what is required then. At the moment a lot of the projects are designed to provide incremental improvements, but by the time they get built, fall way short of what is needed. Countries like Indonesia and the Philippines are experiencing annual doubledigit growth rates, which effectively means that they will double their traffic in six to seven years, so both need to plan for such a

ASIA-PACIFIC AIRPORTS MAGAZINE

NAME:

ANDREW HERDMAN

AGE: JOB TITLE:

60 Director general of the Association of Asia Pacific Airlines (AAPA)

NATIONALITY: British BEST KNOWN FOR:

His forthright views and being a fast walker

LITTLE KNOWN FACT:

Still remembers celestial navigation

scenario. To some extent, Indonesia has recognised the need to double its airport capacity with its plans for more terminals and expansion projects at Bali Denpasar, Jakarta – which already handles more passengers than Dubai – and other airports.

Can China’s phenomenal airport development programme – it will have built more than 70 new airports and revamped another 100 between 2010 and 2015 – continue?

If China says it can do something, who are we to doubt it? China has been ahead of the game on airport capacity for some time, although they do have some problems with airspace congestion as the military still controls most of it. This will change in time, of course, as civil aerospace is enormous and just keeps on growing. China is, in fact, already the second biggest domestic aviation market after the US and its double-digit growth rates show no sign of slowing down. Beijing Capital is currently close to becoming the world’s busiest airport, but despite opening the world’s biggest terminal just a few years ago, it is already running out of capacity and the government needs to build a new airport to keep up with demand.

Such phenomenal growth creates new challenges, of course, but China is very much ahead of the game when it comes to airports because of long-term planning. As a result, they

have some truly world-class airports and are building more.

Are governments doing enough to support airports?

Whether they own them or not, governments certainly have a key role to play in granting planning approval for infrastructure enhancements and co-ordinating between different authorities, user groups and stakeholders to ensure the future growth of their airports. We have an open mind about ownership of airports and air service navigation providers, whether it be government or private investors as this is not the core issue for us. We are only concerned about what services they provide and the efficiency of these services, the incentives offered to provide services and how they regulate charges.

Can you tell us why AAPA has publicly come out in support of a new runway at Hong Kong International Airport?

It’s simple really, quite frankly, Hong Kong is a brilliant airport and its reputation has grown and grown over the years. However, its airfield is now operating close to capacity, particularly because of strong growth to China, and unless it gets a new runway its ability to grow will be severely curtailed.

Given the time it will take to build, taking into account planning permission and the www.aci-apa.com

FINAL WORD POINTS OF VIEW

FACT BOX

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FINAL WORD POINTS OF VIEW

Environmental Impact Assessment process, the debate about it needs to start now to avoid the airport becoming a victim of its own success.

What will Hong Kong lose if it doesn’t have a third runway? It will not be able to open some of the new routes it wants and others will be squeezed out due to capacity constraints. The upshot of this is that it will lose traffic to other hubs such as Singapore Changi, Bangkok Suvarnabhumi and, to some certain extent, Kuala Lumpur and Incheon in north Asia.

Why should airlines worry about airports when they can just up sticks and move to another gateway in another country?

This might be true in theory, but in reality, airlines cannot move base in the Asia-Pacific region because of multiple factors such a national traffic rights under the bilateral system. This is different to Europe, which is a common market, and allows airlines to set up bases in different countries. Ryanair being a prime example of a carrier with multi-bases.

What is the latest on Malaysia Airlines flight MH370?

There is nothing new really. It is still a mystery and there is a lot of speculation about what might have happened, but until we find the Black Box, we will never really know. The search for it goes on using private contractors with very sophisticated deep sea equipment, but it is like finding a needle in a haystack because we still don’t know exactly where it crashed. To put this into perspective, we knew roughly where Air France flight AF447 crashed a few years ago because of the debris field, and it still took two years to find the Black Box.

What has been the industry response to the fact that it is still possible for a commercial flight to disappear without trace in 2014?

Its loss has led to a lot of analysis about how we can track aircraft in the future to APA Issue 3 2014

make sure that this cannot happen again.

We are part of an IATA Task Force tasked with looking into this and are due to make some recommendations by December.

ICAO is doing something similar on a governmental level. The industry is also looking at ways of extending the battery lives and resistance of Black Boxes. On the actual tracking of aircraft, there is a lot of talk about satellite companies standing ready to provide their services, which may be the future, but as of today, there are still large gaps in aviation satellite coverage across the globe, although countries continue to fill this in and it could be accelerated. We know it is possible because a company called Inmarsat provide satellite coverage for the maritime industry for free and makes its money by providing additional services. Transponders on aircraft can, however, still be turned on and off by a flick of a switch and there is likely to be a reluctance to change this due to the aircraft design principle that states that you should never have an electrical system that cannot be disabled in case of a fault that needs to be isolated.

Do you think the accident and recent tragic loss of MH17, shot down over the Ukraine, will put people off flying?

No, I don’t, because flying is safe and arguably the safest form of transportation in the world, and accidents are so rare, that they make headline news across the world. Nine million people fly every day and billions every year and these numbers will increase going forward. Statistics show that ten years ago the industry had a loss rate of one in every million flights. This fell to one in every two million flights, and right now it is about one in every three million. Safety is improving. The number of flights now exceeds 30 million a year, of which around 10 are lost [aircraft written off], half of which involve no fatalities.

APA

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AIRLINES

Trailblazer How is Air Arabia faring just over a decade after its launch signalled the start of low-cost carrier flights in the Gulf region?

Sarah McCay investigates.

T

he answer clearly is very well, because earlier this year, Air Arabia commenced operations from its fourth airport hub – Ras Al Khaimah (RAK) in the United Arab Emirates (UAE) .

The move, in partnership with the Ras Al Khaimah Department of Civil Aviation, saw the airline become the official carrier of the emirate.

Now entering its second decade of operations, Air Arabia has proved something of a pioneer in the Middle East low-cost carrier market with its innovative hub network, as in addition to its home-base of Sharjah in the UAE, it also operates from Alexandria in Egypt, and Casablanca in Morocco.

And according to CEO, Adel Ali, who is widely credited with co-creating the Middle East and North Africa’s first LCC, great things are expected out of Ras Al Khaimah.

“Our approach of using strategic hubs around the region has played a key role in our sustained success by enabling us to maximise the range of our A320 fleet and expand our route network,” he enthuses.

“The Ras Al Khaimah partnership fits into Air Arabia’s long-term growth and expansion plans. Specifically, it increases

APA Issue 3, 2014

our ability to serve passengers in the Northern Emirates while helping to support tourism in Ras Al Khaimah.

The emirate’s tourism sector is witnessing healthy growth and we are optimistic that this will continue in the years to come.”

Air Arabia’s Ras Al Khaimah operations commenced in May with a network of seven destinations from RAK International Airport: Jeddah in Saudi Arabia; Cairo in Egypt; Muscat in Oman; Islamabad, Lahore and Peshawar in Pakistan and Dhaka in Bangladesh.

“These routes are designed to serve both RAK residents and key inbound tourism destinations,” explains Ali. “For instance, there are big Indian and Pakistani communities in RAK, which is why we will initially offer services to four different destinations in those countries.

Saudi Arabia, Oman and Egypt are more oriented towards tourist passengers, which is why we selected those markets.”

TOURISM GROWTH

The arrival of Air Arabia is big news for RAK. The emirate has seen two incarnations of its RAK Airways flag carrier get off the ground only to end up back on the tarmac all too soon after take-off.

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AIRLINES

Air Arabia CEO, Adel Ali.

RAK Airways was initially launched in 2006 and commenced operations in 2007, only to be grounded in 2009. The airline relaunched in 2010 with a new management and livery, but suspended all flights at the start of 2014. Those working in the RAK tourism industry are keen to see Air Arabia soar to success.

“We are very excited about Air Arabia,” says Steven Rice, CEO, Ras Al Khaimah Tourism Development Board. “Three of the seven launch destinations connect to the GCC market – Oman, Cairo and Jeddah. We want to grow the GCC market so these routes are very important to us for their connectivity.”

The RAK Tourism Development Board is providing marketing assistance to Air Arabia to push the airline and the destination, partnering with Air Arabia on road shows and exhibitions.

“Having Air Arabia will attract other airlines and charters coming into RAK,” Rice adds. “It’s a big deal for us. It can impact tourism greatly.”

So what about RAK Airways – is the curse now lifted? “RAK Airways had three planes, Air Arabia has a fleet,” says Rice. “The low-cost carrier model is dependent on scale, being able to sell ancillary services and reducing fixed operational costs. It is easier to do this with a big fleet so I don’t think the risks RAK Airways was exposed to will be an issue for Air Arabia.”

FLEET EXPANSION

In March 2014, Air Arabia took delivery of its 35th A320 aircraft, which was particularly notable since it was the 6,000th A320 made to date. The airline’s entire fleet is made up of purely A320 aircraft. www.aci-apa.com

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AIRLINES The latest models are equipped with sharklets, wingtip devices that reduce fuel burn and emissions by significantly improving the aerodynamics of the aircraft.

“Air Arabia is the first carrier in the Middle East to fly these planes,” says Ali. “We have now received 25 of 44 A320s ordered from Airbus in 2007, and once complete in 2016, the order will more than double the size of our existing fleet.”

The addition of the Ras Al Khaimah hub means that more aircraft could be on order in the near future.

“If you look back at the history of Air Arabia, every time we open a new hub – whether in Sharjah, Alexandria or Casablanca – we have started with a handful of planes and a couple of destinations and steadily grown from there,” says Air Arabia’s CEO. “It is absolutely our intention to repeat this process in Ras Al Khaimah and APA Issue 3, 2014

to steadily grow the breadth of our operations in line with the needs and objectives of the emirate’s economy.”

GLOBAL AMBITIONS

Air Arabia currently serves nearly 100 destinations. Its new Ras Al Khaimah hub will certainly help facilitate further network growth.

“We have an ambitious route expansion strategy in place. As we enter our second decade of operations, it is our aim to operate services to all airports in the Arab world, stretching from the Atlantic Ocean to the Indian Ocean,” says Ali. While there are no current plans for further hubs, Air Arabia is an ambitious airline with a lot more potential to come. “We continue to set our sights on the future by expanding into new geographies and launching new ventures,” APA Ali remarks.

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CONSTRUCTION NEWS

DESIGN & BUILD

C

hangi Airport Group (CAG) has teamed up with CapitaMalls Asia to develop a lifestyle development christened, Project Jewel.

Building work on the S$1.47 billion (€850 million) project will start by the end of 2014, and construction is earmarked for completion by the end of 2018.

The development will be constructed on the surface car park site in front of Terminal 1, and CAG and CapitaMalls Asia explain they are aiming to create an “iconic global attraction”.

The project is aimed at enhancing the Southeast Asian gateway, and will connect to all three terminals along with the MRT station via all-glass walkways.

Built over 3.5 hectares, it will offer a range of facilities for the airport’s operations, and retail offerings and leisure attractions for passengers.

The complex will feature a futuristic domeshaped facade made of glass and steel designed by a consortium of consultants comprising Safdie Architects, Benoy and local architects, RSP. The five storey high complex will be built above ground and include five basement storeys, including two basement storeys of mainly retail and car park spaces and another three storeys for the car park.

Lee Seow Hiang, CEO of CAG, explains: “Project Jewel is a significant game-changing APA Issue 3, 2014

KEY FACTS AIRPORT:

Singapore Changi

PROJECT:

Project Jewel

KEY PLAYERS:

CapitaMalls Asia, Safdie Architects,

Benoy and RSP

COMPLETION:

End of 2018

project for CAG in our journey to strengthen Changi Airport’s status as a major global air hub.

“In today’s highly competitive landscape where airports around the world are actively competing for passengers’ mindshare, we cannot stop innovating - Project Jewel will give us this additional edge.

“With its strategic location at Changi Airport’s doorstep, we are able to integrate this exciting destination seamlessly with the airport’s offerings, to serve both international travellers and local visitors.”

Leisure attractions and activities are a key part of the Project Jewel development, and will include a large lush indoor garden with a central cascading waterfall, a central communal facility, and a hotel.

Retail and F&B concessions will also be enhanced and the project includes concepts new to Singapore and top international brands, along with popular homegrown brands.

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There will also be facilities dedicated to the fly-cruise and fly-coach passenger segment, as well as training facilities and communal event spaces for the 32,000-strong airport employee community.

The basement car park will almost treble the capacity of the current T1 car park to about 2,500 parking spaces, and redevelopment of the T1 car park will allow CAG to meet a critical objective of increasing Changi Airport’s passenger handling capacity.

As part of the works, T1, which was previously hemmed in by roadways, will also be expanded, allowing more space for the arrivals and greeters hall, baggage claim areas and taxi bays.

Changi Airport says additional facilities for its operations are also being built in Project Jewel, which will further strengthen the hub’s existing service offerings and further improve passengers’ travel journey.

Lee Seow Hiang, continues: “For the many Singaporeans who already enjoy coming to the airport for leisure, Project Jewel will offer an unprecedented experience of another level.

“Together with our partner, CapitaMalls Asia, a very established player in the arena of lifestyle and retail developments regionally, we are confident that Project Jewel will be a world-class attraction near home that Singaporeans will not only enjoy immensely, but be proud of.

“This, together with our other key expansion projects: Terminal 4 and Changi

East, positions the airport very strongly for growth over the long-term.”

The gateway’s partner in the development, shopping mall developer CapitaMalls Asia, says it is excited about being involved and is aiming to deliver a “landmark project” that will be the pride of Singapore.

The firm’s CEO, Lim Beng Chee, says the focus is to create a must-visit destination for tourists to Singapore and passengers transiting through Changi Airport, as well as a “unique place” that Singaporeans and local residents can enjoy with their families and friends.

He adds: “Located at the airport, the site presents an ideal opportunity for global and local retailers and F&B operators to create one-of-a-kind stores and dining concepts, to cater to a ready cosmopolitan catchment, with more than 50 million passenger movements from 270 cities every year.

“This will provide an ideal platform both for American and European retailers to introduce and promote their offerings in Asia, as well as Asian retailers to do likewise with a global audience.

“The integration of indoor gardens, attractions and retail offerings in a single venue will also give brands that have yet to enter Singapore or even Asia, a good reason to be here.”

Last year, Changi Airport handled 53.7 million passengers, and by the completion of Project APA Jewel, it aims to be serving 85mppa. www.aci-apa.com

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WBP NEWS

WORLD BUSINESS PARTNERS

IN THE SPOTLIGHT MELBOURNE’S RUNWAY PLANS Melbourne Airport has selected CH2M HILL to provide project management services for the first phase of its ambitious Runway Development Programme (RDP).

With forecasts predicting that the Australian gateway will need to be equipped to handle 64mppa by 2033, a new third runway is seen as vital to ensuring its long-term future.

It is hoping to add a new 3,000m runway capable of supporting the A380 and other

next-generation aircraft such as the Boeing Dreamliner.

If it gets the go-ahead, the runway will be built parallel to an existing east-west aligned runway, which will be lengthened and widened to facilitate simultaneous operations on the airfield.

CH2M HILL will provide project management services for this phase of the runway development programme, including feasibility design.

SECURITY DRIVE Hactl has enhanced its security operations at Hong Kong International Airport with the introduction of two electric vehicles to enable security staff to increase the frequency of patrols, and respond to any incidents more quickly.

Security for the massive Hactl SuperTerminal 1 facility – the largest single cargo terminal in the world – is a major task involving some 260 staff deployed in various duties, including perimeter and premises patrols and guarding, and cargo scanning.

The environmentally friendly electric vehicles are limited to 15kph for safety reasons, but still significantly reduce travel times around the giant 174,600sqm Hactl site, which has a perimeter of 1,850m.

APA Issue 3, 2014

The new vehicles are now used around the clock, and have proven a big hit with security staff, according to Hactl’s head of security, Andrew Sin. Sin (pictured above) says: “The introduction of our mobile patrol vehicles has significantly increased our visible

security presence throughout SuperTerminal1. We are making more efficient use of our patrol staff, speeding incident response and even improving our efficiency in dealing with related matters such as clamping of illegally parked vehicles.”

ASIA-PACIFIC AIRPORTS MAGAZINE

BIG IN JAPAN Oshkosh Airport Products Group, a division of Oshkosh Corporation, has placed 24 new generation Oshkosh Striker aircraft rescue and fire fighting (ARFF) vehicles on duty at airports in Japan.

The vehicles are serving at Japan Air Self-Defense Force (JASDF) bases, Japan Maritime Self-Defense Force (JMSDF) bases, Japan Ground SelfDefense Force (JGSDF) bases, as well as at Tottori and Yamagata civilian airports.

“This significant delivery of 24 new generation Oshkosh Striker ARFF apparatus speaks volumes about the vehicle’s growing popularity and acceptance in Japan and across the Asia-Pacific region,” says Jeff Resch, Oshkosh Airport Products Group’s vice president and general manager.

“The Striker sets a new benchmark for performance, innovation and reliability, and we’re very excited to have them in service.”

The new generation Striker ARFF vehicles each feature a

6x6 axle configuration with Oshkosh TAK-4 all wheel independent suspension.

The Tier 3 and Tier4i/Euro5 emissions-compliant engines (used to power the military and civilian trucks respectively) achieve a top speed greater than 113km/h. The engine power pack components are readily accessed through walk-in doors on either side of the engine compartment for easier servicing.

All have dual agent fire suppression capabilities, as well as a powerful roof turret, an Oshkosh low attack bumper turret, dry chemical capabilities, and pre-connected hoses with hand nozzles on both sides of the vehicles.

“We are honoured that the Oshkosh Striker ARFF vehicles are playing an important role in protecting lives and property at these airports across Japan,” remarks Desmond Soh, Oshkosh Corporation’s president, Asia operations.

Friedmann Pacific Asset Management Limited Contact: Sophia Wang Address: 28F Far East Finance Centre, 16 Harcourt Road, Admiralty, Hong Kong Tel: +852 66 20 6894 Email: sophiawang@fpigp.com Website: www.fpigp.com/en Friedmann Pacific Asset Management Limited (FPAM) is an international investment and asset management company which actively invests in industry projects of strategic importance. With a primary presence in Asia and Europe, FPAM aims to create superior investment return for investors as well as drive the growth of the real economy of the region invested in. Major businesses of FPAM include aircraft leasing; leasing and structured finance; and direct investment and private equity, focusing on infrastructure.

Safran Morpho Contact: Christine Riveau Address: 11 Boulevard Gallieni, Issy Les Moulineaux, 92445, France Tel: +33 158 11 7687 Email: christine.riveau@morpho.com Website: www.morpho.com MORPHO is the security division of SAFRAN, an international high-technology group operating in Aerospace, Defense and Security. MORPHO is a world leader in multi-biometric technologies (fingerprint, iris, face), smartcards, secure transactions, identity management, and detection equipment for explosives and narcotics. In the airport market, the company is particularly active in border control and detection solutions. www.aci-apa.com

WBP NEWS

WBP PROFILES

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SOCIAL MEDIA

Being social

Andrew Fraser, director of marketing, Tourism New Zealand, says embracing social media is vital to destination marketing.

What role do you see social media playing in your overall marketing strategy?

Social media is about storytelling and advocacy. It’s a key channel for us to tell the world about New Zealand as a destination and provide a real-time window to the destination.

It’s also a great place for current and past visitors to share stories about their holiday here.

Why has Tourism New Zealand managed to be so successful and innovative with its social media?

We try to always look at social media from a user’s perspective. What would they want to see? Why would they care and why would they share? What would make them inspired to consider New Zealand as a holiday destination?

More importantly, if they’re already here, what would make them recommend it to their friends and family? Regardless of our message, story or objective, the above questions are always on our minds to provide guidance for us to use social media in an effective and a meaningful way that achieves our objectives, engages our community and sustains best practice on our social channels.

Have you ever partnered with an airline or an airport on social media campaigns?

Not on a social campaign specifically, but we have recently collaborated with Auckland Airport on hosting Indonesian celebrity chef, Farah Quinn on an experience across New Zealand. Farah raved about her experience here using her social channels generating hundreds of thousands of impressions that would have cost no less than NZ$65,000 to generate via advertising.

APA Issue 3, 2014

What is the next big thing in terms of social media channels or approaches?

For travel in particular, Instagram is going to be key. So far, it’s a rather closed platform with not much insight or reporting and limited opportunities for advertising. But soon enough it will open its arms wide with more opportunities for destination marketing organisations. On the other hand, it’s a great playground for social influence, with many influencers or opinion leaders who can help drive preference to specific destinations by informing their large following about it.

What is your advice for airports looking to work more closely with their destinations on social media campaigns?

Establish common objectives with your destination marketing organisation and work towards building advocacy for the destination on social media. Look at what others in your shoes are doing and learn from them. And finally, be aware that trial and error is a common theme in social media marketing.

APA It is a continuously evolving landscape.

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