AIRPORTS DOING BUSINESS IN ASIA PACIFIC

The 17th ACI (Airports Council International) Asia-Pacific Regional Environment Committee meeting was held in Kobe, Japan, on May 14-15, 2023. The event brought together more than 35 environmental sustainability experts from airports and World Business Partners in the Asia-Pacific and Middle East regions.

Key highlights of the meeting included a keynote speech and presentation on airport climate resilience delivered by Mathieu Boutitie, corporate executive vice president of Kansai Airports. Additionally, a foresight discussion took place, featuring guest speakers from Airbus Japan and IATA Asia-Pacific, who delved into advanced topics such as aircraft Sustainable Aviation Fuel (SAF) and the use of hydrogen fuel for aircraft and related infrastructure at airports.

During the interactive afternoon session, the ACI Asia-Pacific Regional Environment Committee collaborated with the Operational and Safety Committee, resulting in constructive outcomes for actions on airport climate change adaptation and wastewater management. Furthermore, discussions were held on initiatives to support smaller airports and airports in Small Island Developing States, as well as future topics for Green Airports Recognition. The Committee approved the establishment of a Climate Change Adaptation Working Group, tasked with developing the next guidance, with a specific focus on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Moreover, the Committee agreed to provide support and facilitate the adoption of Sustainable Aviation Fuel (SAF) at airports, subject to further investigations into costs, demand, availability, and ethical considerations.

ACI Asia-Pacific serves as a voice for 132 airport members, operating 623 airports across 47 countries/territories in APAC and the Middle East.

Thai ‘Aviation City’ development

Thailand’s government spokesperson, Tipanan Sirichana, has announced that the construction of an ambitious ‘Aviation City’ in the eastern Rayong province is set to commence this year. With an estimated budget of $8.8 billion, this project aims to propel the growth of Thailand’s aviation industry while transforming U-Tapao Airport, located south of Pattaya, into a prominent international hub.

Anticipated to generate approximately 15,600 job opportunities within the initial five years, the development of this 1,040-hectare enterprise received approval in 2020. However, progress was impeded by the COVID-19 pandemic, causing temporary delays.

The Eastern Airport City initiative is seeking private investment and encompasses various ongoing ventures, such as the expansion of the airport itself and the introduction of key endeavours like air cargo, Maintenance Repair and Overhaul (MRO) and the establish- ment of the Aircraft Industry Business Group within a Free Trade Zone. Notably, this project serves as the third primary international airport in Thailand, bolstering business continuity and functioning as a promotion zone within the Eastern Special Economic Zone. With connections to 34 cities worldwide and seamless access to all ASEAN countries, U-Tapao airport holds historical significance as it was originally constructed by the US Air Force in 1966, serving as a base for B-52 bombers during the Vietnam War.

Eight time zones

IATA Asia Pacific is the leading representative and service provider for its airline members in the region, operating from its regional office in Singapore. With a presence in 37 countries and the support of 19 country and area offices spanning eight time zones, a dedicated team at IATA drives the industry’s priorities.

It claims to foster strong collaborative relationships with governments, airports, air navigation service providers, and regional industry organisations to ensure the effective co-ordination and advancement of aviation interests.

Its primary focus is on serving the 45 airline members based in the region, as well as contributing to the growth and development of the aviation industry as a whole. IATA Asia Pacific actively engages with governments, advocating for the recognition of aviation’s immense value, which includes supporting over 47 million jobs and contributing approximately $1 trillion to the regional GDP.

To enhance infrastructure and streamline operations, it spearheaded industry initiatives such as OneID and Digital Cargo, aimed at improving efficiency and reducing costs.

Additionally, IATA prioritises the development of human capital for the future of air transport. In 2019 alone, IATA Asia Pacific’s Regional Training Centre in Singapore provided training to more than 1,650 aviation professionals from over 100 countries, ensuring a skilled workforce capable of meeting the evolving demands of the industry.

Chinese airport developments

On the afternoon of April 19, CAAC (Civil Aviation Administration of China) administrator Song Zhiyong met in Beijing with a delegation led by Lam Sai-hung, secretary of Transport and Logistics Bureau of the Hong Kong SAR. The two sides exchanged views on further promoting the development of civil aviation in Hong Kong and deepening exchanges and co-operation in civil aviation between the mainland and Hong Kong.

Chinese gateway Nantong Xingdong International Airport is strategically located ten km away from the city’s urban area and 100 km from Shanghai Hongqiao International Airport. Situated in close proximity to entrances onto Shanghai-Xi’an Highway and Shenyang-Haikou Highway, which connect Sutong Yangtze River Bridge and Chongqi Bridge, the airport enjoys good accessibility from the southwest. The well-developed ground transportation facilities in Nantong ensure smooth traffic flow to and from the airport. Recognised by CAAC as a “Shanghai international aviation hub auxiliary airport,” Nantong Xingdong International Airport serves as a vital transportation hub in the region.

While the airport’s international and domestic cargo business thrives, it is actively accelerating the growth of this aviation industry. Notably, projects such as the regional distribution centres of SF Express, CAMECO and Apex Air have been successfully completed. Additionally, more than ten prominent navigation organisations and enterprises, including the oriental base of the Flight Inspection Center of the CAAC and Shanghai YTO Express (Logistics) have established their presence at the airport. In line with its expansion plans, the airport has commenced construction of a new terminal building spanning 52,000 sq m, along with related ancillary facilities. This state-of-the-art terminal will feature 11 air bridges, enabling a capacity of five million passenger trips and 200,000 tonnes of cargo. Furthermore, despite the challenges posed by the pandemic, airport construction in China has persevered. As of the end of 2021, the country boasted nearly 250 operational commercial airports. According to the Australia-based CAPA – Centre for Aviation, most airports experienced a decline in passenger numbers compared to 2020, resulting in financial losses. However, ten new airports were inaugurated during the year, with the most significant being in Chengdu, the country’s fifth most populous city. Chengdu’s existing airport, Shuangliu, was already one of the busiest in China. The newly established Tianfu Airport has the potential to surpass Shuangliu in terms of prominence, although the distribution of differing business models in a city designated as a “central hub” for the entire country remains uncertain.

The financing of new airports has raised questions, considering the Chinese government’s constrained revenue due to a sharp economic contraction, resulting in an infrastructure funding gap of nearly $1 trillion, which is comparable to the US economic rescue package. CAPA highlights that the shift in rankings, with Guangzhou Baiyun International Airport overtaking Atlanta as the world’s busiest airport in 2020, was unforeseen, given that Guangzhou is the country’s third-largest city. The unprecedented events and twists in the air transport industry during the chaotic first year of the COVID19 pandemic played a significant role in reshaping airport rankings. While Baiyun International Airport has slipped in global ratings since then, it remained the busiest airport in China in 2021.