HKIA named Asia Pacific's most efficient airport

Hong Kong International Airport (HKIA) was once again recognized as the most efficient airport in Asia Pacific.

The Air Transport Research Society (ATRS) bestowed on HKIA the “Asia-Pacific Airport Efficiency Excellence Award” at the 2010 ATRS World Conference in Porto, Portugal. This is the fourth consecutive year that HKIA received the honor, proving its long-time consistency in operational efficiency.

The results of the award are obtained after year-long research by 13 top aviation experts from Europe, Asia Pacific, North America and Australia, and are published annually in the ATRS Global Airport Benchmarking Report. Airports are benchmarked among peer airports on their performance, productivity, efficiency, unit cost competitiveness and other factors. The report also provides more than 30 performance measures identifying effects of the operating environment of the airport, business diversification efforts, outsourcing and service quality.

The Chief Executive Officer of Airport Authority Hong Kong, Stanley Hui, saw the award as a great encouragement to the 60,000-strong airport community members, whose diligence and professionalism have made HKIA the most efficient in Asia Pacific. “It is particularly meaningful to us, as we operate one of the busiest international passenger airports and the busiest international cargo facilities in the world. We will continue to do our best to provide efficient, reliable, safe and cost-effective services to our passengers and other airport users.”

Passenger and cargo traffic set new records

Passenger and cargo traffic of Hong Kong International Airport (HKIA) hit record highs of 24.5 million and 2 million metric tons during the first six months of the year, representing yearly growth of 9.3% and 35.1%, respectively. Air traffic movements also rose 4.9% during the same period last year, to 144,970.

The strong first-half performance was supported by robust traffic in June. During the month, passenger traffic recorded a yearly increase of 26.2%, reaching 4.2 million; air traffic movements were up 15.3% to 24,795; and cargo throughput surged 28.6% to 347,000 metric tons. This was the first time since July 2005 that the airport saw double-digit growth in all three traffic categories, partly due to the low base for comparison in 2009.

Almost all of HKIA’s key cargo markets recorded double-digit growth last month, driven mainly by strong exports, which registered overall growth of more than 40%. In particular, exports to Europe and North America grew 44% and 81%, respectively, as the global economy continued to rebound. During the month, imports grew 26%, while transhipments rose 4%.
           
Monocle sets up new Hong Kong headquarters

London-based global affairs magazine Monocle opened its new Hong Kong headquarters on July 20. Located on bustling Star Street in Wan Chai, the new Monocle Hong Kong hub serves dual functions for the expanding media brand: the Monocle standalone shopfront and its editorial bureau at the back of the shop.

This new retail shop is Monocle’s fourth after London, Los Angeles and Tokyo, and sells its popular selection of fashion and design collaborations with brands like Comme des Garçon, Porter, Valextra, Malmsten and Hackett. The editorial bureau is the headquarters for news gathering across mainland China and Asia Pacific, headed by its new Hong Kong correspondent, Liv Lewitschnik. In a unique move for a magazine brand, profits from the shop sales will be used to support the bureau.

The Director-General of Investment Promotion at Invest Hong Kong, Simon Galpin, warmly welcomed the establishment of Monocle’s new headquarters in the territory. “We are very pleased that Hong Kong is one of the largest markets for this global affairs magazine and the decision to expand into Hong Kong has always been on its agenda,” he said. “The arrival of Monocle in Hong Kong highlights the unique advantages of this international city: at the heart of Asia Pacific and as a gateway to China, a shopping paradise for internationally renowned brands, offering a cosmopolitan lifestyle and free flow of information. We look forward to working closely with Monocle to support its expansion plans in Hong Kong and beyond.”

Hong Kong airlines report increased traffic

The combined June traffic figures for Cathay Pacific and Dragonair showed significant year-on-year increases in both the number of passengers and the amount of cargo and mail carried.

The two airlines carried a total of 2,216,215 passengers in June, up 27.5% year-on-year. The passenger load factor was 85.4%, a rise of 8.6 percentage points, while capacity for the month, measured in available seat kilometers (ASKs), was up 7.7%. In the first half of 2010, the number of passengers carried rose 8.5%, while capacity dropped 0.1%.

The two airlines carried a total of 148,520 metric tons of cargo and mail last month, up 19.9% year-on-year. The cargo and mail load factor was 75.4%, a rise of 4.1 percentage points, while capacity, measured in available cargo/mail metric ton kilometers, was up 19.2%.

In the first half of 2010, tonnage rose 24.4%, while capacity increased 7.1%.

Airport Authority records strong performance

On June 30, the Airport Authority Hong Kong (AA) declared US$576.92 million in dividends, composed of an ordinary dividend of US$294.87 million and a special dividend of US$282.05 million — to its sole shareholder, the Hong Kong Special Administrative Region Government for the 2009 — 2010 financial year.

AA Chief Executive Officer Stanley Hui explained that due to AA’s strong financial position, the special dividend was declared out of the previous accumulated retained profits.

During the financial year ended March 31, 2010, the profit attributable to its equity shareholder grew 9.9% to US$364.61 million. Revenue rose 1.5% to US$1,155.76 million, and return on equity rose to 7.8%.

Passenger traffic and air traffic movements at Hong Kong International Airport (HKIA) recorded year-on-year declines of 1.7% and 5.4%, to 46.9 million and 280,000, respectively, while cargo throughput grew 4.4% to 3.6 million metric tons.

Despite the volatile operating environment, productivity gains and revenue growth from retail operations helped AA offset a revenue reduction of US$31.02 million, resulting from a relief package introduced between April 2009 and March 2010 that allowed HKIA to weather the impact of the financial crisis, according to Mr. Hui. 

AA Financial Controller Eric Leung commented that the emphasis on safety, security and service standards helped AA reduced the airport's operating expenses by 2.7% to US$436.15 million.

HKIA continues to strengthen its competitive edge as an international and regional aviation center and preferred gateway to mainland China through hardware and software enhancements, including the new SkyPier cross-boundary ferry terminal, the North Satellite Concourse, the HKIA Precious Metals Depository and phase 1A of the Permanent Aviation Fuel Facility.

HKIA’s service excellence was recognized by several organizations during the financial year. This year, Airports Council International named HKIA the world's best airport for the 4th consecutive year; the airport won best airport in the TTG Travel Awards for the 7th time since 2002, as well as the 2009 top service brand award from the Hong Kong Brand Development Council and the Chinese Manufacturers' Association of Hong Kong.

HKIA will continue to improve its infrastructure. A midfield expansion program will be launched in phases, increasing the handling capacity of the airport to 70 million passengers and 6 million metric tons of cargo, with the aim to cope with air traffic demand up to 2020.

The HKIA is currently working on a development blueprint for the coming 20 years, HKIA Master Plan 2030, which includes studies on the engineering and environmental feasibility of a new runway and passenger concourse. The master plan exercise also includes studies assessing traffic demand forecast and economic impact.

In addition to the ongoing Mainland joint ventures at Zhuhai Airport and Hangzhou Xiaoshan International Airport, the AA also set up a new joint venture with Shanghai Airport (Group) Company Limited in October 2009 to manage Shanghai Hongqiao International Airport’s two passenger terminals, Hongqiao’s east transportation center and retail business.