Sarah Campbell takes a closer look at the ambitious development plans of Abu Dhabi International Airport.

It appears that almost anything is possible in the United Arab Emirates with Abu Dhabi and Dubai constantly unveiling new projects that are bigger and better than what came before.

The $40 billion transformation of Yas Island into one of the hottest tourist tickets in the Gulf, with its own Ferrari Theme Park, Formula 1 circuit, water park, golf courses, lagoon hotels and over 300,000sqm of shops and restaurants, is typical of Abu Dhabi’s ambitions.

And Abu Dhabi International Airport doesn’t disappoint as the gateway – which recorded a 30% rise in traffic last year when nine million passengers passed through its facilities – is undergoing a $6.5 billion facelift to ensure that it is equipped to handle over 20mppa.

The key project of the first phase of the gateway’s transformation into a “brand new airport” is the opening of its much anticipated new Midfield Terminal complex in 2012. But it doesn’t stop there. The total capacity for the new airport could reach as high as 50mppa once all works are complete, making the UAE capital’s gateway truly competitive with neighbouring aviation behemoth Dubai.

“Abu Dhabi International Airport is currently undergoing one of the largest aviation infrastructure developments in the world today and, at a cost of $6.8 billion, is certainly one of the most ambitious projects undertaken in aviation history,” says Abu Dhabi Airports Company (ADAC) chairman, Khalifa Al Mazrouei.

The development of Abu Dhabi International Airport has been an ongoing project since ADAC took over operations in 2006. The government-owned entity has already added a $275 million Terminal 3 and an A380 compatible runway, boosting the airport capacity by five million to a 12 million passenger per annum facility. The 4,100 metre-long runway, opened in October 2008, also came with a $275 million price tag.

Elsewhere on the airfield, ADAC has built extra taxiways, added two new fire stations and upgraded the original runway’s status to CAT III B to ensure that it useable on the rare occasions when visibility falls below 200 metres. The changes mean that the airport is now capable of handling up to 70 aircraft movements per hour as opposed to a maximum of 18 when it had a single runway.

Adds Al Mazrouei: “We have achieved significant progress in the journey to transform Abu Dhabi International into a world-class gateway airport. The new runway is a key part of our plan to raise the airport’s capacity that will culminate with the construction and completion of the Midfield Terminal facility.”

Other major components of the airport’s master plan include a new 110-metre ATC tower, a new cargo complex capable of handling 2.5 million tones of cargo a year, and a 4,000sqm duty free retail and food and beverage village.

The Midfield Terminal, designed by international architectural practice Kohn Pedersen Fox, is being developed to the north of the existing airport, and will replace the current operation when it opens in 2012. Designed in the shape of a gently curved X, the 5.9 million-square-metre facility will include 42 gates in its first phase, with plans to increase this to more than 90 gates when fully completed.

It is to be complemented by verdant landscaping and a pond near the building’s entrance, while a series of repeating steel arches will guide passengers through to the check-in desks and security.

Additional plans could also include a 12-kilometre circular rail transport system linking Abu Dhabi with the airport and free trade zones. Aldar, the company behind the Yas Island project, insists that its mega-resort will have direct transport links to the gateway.

“The opening of the Midfield Terminal will raise the airport’s capacity to 20 million passengers per year which we can grow, with demand, to a 40 million passenger per annum facility,” says Al Mazrouei, who notes that the airport could ultimately handle up to 50mppa.

Etihad Airways and the Abu Dhabi Tourism Authority (ADTA) are key partners in the new airport development, which has been carefully mapped out to complement Abu Dhabi’s tourism ambitions of attracting 2.7 million visitors by 2012.

“Etihad Airways is the national airline of the UAE and home airline at Abu Dhabi International Airport and so it is a key partner in the consultation processes on how design and benchmarking of services are applied for the new the airport,” says Sheikha Al Maskari, ADAC’s vice president of corporate affairs.

“ADTA has a clear mandate from the Abu Dhabi Government to boost tourism activity into the UAE capital and wider Emirate and, along with the partner airlines increasing frequencies and services to the airport, we work with them closely to understand their targets and needs.”

Terminal 3, which partly opened to Etihad services in mid 2008, became fully operational in February in a soft opening, and celebrates its grand opening in March.

The new “best-in-class facility” will be predominantly used by Etihad Airways, which due to its rapid development over the past few years, is now widely recognised as one of the world’s fastest growing airlines.

Etihad currently serves 50 destinations worldwide with a fleet of 44 aircraft. However, Etihad has been on a spending spree and plans to increase its fleet to more than 250 aircraft, with 116 planes on firm orders, 54 more options to buy and an additional 50 with purchase rights. Its hugely ambitious expansion plan really gave ADAC little option other than to build T3.

In addition to the enhanced capacity it will bring, Terminal 3 will also offer a brand new retail and F&B environment. Featuring more than 2,600sqm of retail space, a range of 19 boutiques such as Jimmy Choo, Hugo Boss, Swarovski and Montblanc, and dedicated areas for a range of categories, including fragrances, cosmetics, liquor and tobacco.

The Etihad business and first-class lounges both feature spa facilities, operated by Six Senses, a new highlight for the terminal. Arabic culture and art pervades the common areas, blending modern themes with traditional ones. One example is the connecting walkway for transit passengers, linking T1 with T3, which features a collection of giant photographs showing different aspects of emirate culture, crafts, history, landscapes and religion.

ADAC’s aspirations are clear and even the current economic crisis being felt worldwide appears to be of little concern.

“The aviation industry in the Gulf is one of the stand-out successes of recent years and, out of all the world’s regions despite global economic concerns, the Middle East remains best placed of all to maintain robust growth rates,” enthuses Al Maskari.

“Abu Dhabi has an important part to play in the growth of the regional aviation market and, as a natural and strategic location between East and West, this is expected to grow in the future as more airlines acknowledge the convenience and capacity the region now offers both as a destination and transit hub.”

ADAC’s expansion plans for Abu Dhabi, however, stretch far beyond the capital city, with the airport operator opening a new dedicated air terminal in December on Sir Bani Yas Island, off the coast of Abu Dhabi.

The terminal was built by Tourism Development & Investment Company (TDIC), which is developing the Sir Bani Yas Island tourism proposition as part of its multi-experiential Desert Islands destination.

Under a partnership agreement between TDIC and ADAC, the island's airport is being additionally upgraded to be a fully certified airport capable of receiving domestic and short-haul international commercial flights. The full schedule of further upgrade work is due for completion by the end of 2010.

The new terminal began receiving scheduled flights from Abu Dhabi International Airport to Sir Bani Yas Island in late December with the route served by TDIC's two Cessna Caravan aircraft. The 240 kilometre flight takes 45 minutes.

Sir Bani Yas Island, the former private nature reserve of the late UAE President, Sheikh Zayed Bin Sultan Al Nahyan, is at the core of the Desert Islands proposition.

TDIC recently launched the first phase of the eight-island destination when it opened Sir Bani Yas Island to tourists for the first time. Guests can now stay at the boutique Desert Islands Resort & Spa, and take part in a number of adventure activities including 4x4 guided tours of the Arabian Wildlife Park, which is home to a range of previously endangered species and one of the world's largest herds of Arabian Oryx.

ADAC is also responsible for operating and developing Al Ain International Airport elsewhere in the Emirate. It is equipped with a 4,000-metre runway, a new-look terminal building and one of the region’s most modern cargo terminals, leaving ADAC free to concentrate its efforts on the continued expansion of Abu Dhabi International Airport.

It has world-class ambitions for Abu Dhabi International Airport, of course, but can it ever truly compete against Dubai International Airport and the new Dubai World Central project at Jebel Ali? ADAC chairman, Khalifa Al Mazrouei, has no doubt that it can.

“Competition is healthy and should be celebrated as it is this very dynamic that helps all service providers to continually improve their services for their customers. It should not be forgotten, however, that as with many other businesses in their respected industry, we often complement as well as being in competition with each other,” he says.

“Speaking for Abu Dhabi International Airport, I firmly believe that our advantage will be in the differentiation of quality services, customer experiences and unique offerings provided to all our passengers and airline partners.

“The opening of Terminal 3 and the new retail offering in the building is one of many examples of the airport’s unique customer experiences, with some stores unavailable at other regional airports or high street stores.

“For many other reasons, I am convinced that we have the right strategy in place to realise our ambition, over the coming years, of being the airport of choice for those looking to travel to, or through, the UAE.”

ASIA-PACIFIC AIRPORTS/JANUARY-MARCH 2009

Beijing Capital International Airport’s new logistics park is fast taking shape, Joe Bates reports.

Covering an area of three square kilometres at the north end of Beijing Capital International Airport’s second runway, the newly opened Airport City Logistics Park is a key component of the gateway’s airport city development plans.

Part of the newly created Beijing Tianzhu Integrated Free Trade Zone, the $585 million logistics park comprises five major zones and serves as a “one-stop customs clearance” centre for companies involved in the import and export of goods into China.

The five functioning zones of the Airport City Logistics Park (ACLP) are the airport’s air cargo terminal, an international express cargo complex, a bonded logistics centre, import/export warehousing and an office complex.

The ultra-modern facility is managed by Airport City Development Co Ltd (ACL), which is said to have set a new benchmark for co-operation between an airport authority and local government in China as its stakeholders include Capital Airport Holdings Company, Shunyi District People’s Government and Beijing City.

With the focus of the country’s economic development increasingly shifting towards northern China in the recent years, there is certainly no doubting that Beijing’s importance as a cargo and logistics hub can only grow in the years ahead.

Indeed, its rapidly expanding economy and growing competitive edge meant that more than 1.4 million tonnes of cargo passed through the gateway in 2008 as Beijing cemented its status as the key economic powerhouse driving the growth of the Beijing– Tianjin–Hebei Metroarea and the Bohai Rim Economic Circle.

ACL’s vice chairman and CEO, Desmond Shum, enthuses: “Beijing is the one of the most important cargo distribution centres in China and northeast Asia.

It has very strong geographic and infrastructure foundations and is well connected by road, rail and its aviation transportation network.

“In essence, it has all the criteria required to make it the aviation hub of northeast Asia and the development of the logistics park can only enhance Beijing’s air cargo capabilities and accelerate the establishment of an international air cargo core.”

There is certainly no disputing that Beijing’s comprehensive rail, road and air transportation networks extend to the port cities of Tianjin, Dalian, Qingdao, Lianyungang, Weihai, Yantai and Rizhao, as well as the inland cities of Changchun, Shenyang, Harbin, Shijiazhuang, Zhengzhou and Xi’an.

Furthermore, connectivity between Beijing and the surrounding regions of east China will be further strengthened upon the completion of the planned Beijing–Shanghai Express Railway. Shum is confident that the logistic park’s range of facilities will appeal to a wide range of tenants. “Each of the five zones has its own potential list of customers,” he explains.

“The Air Cargo Terminal’s potential tenants would be ground handlers such as BGS and Air China.

The Express Centre is aimed at the major international express courier companies and local express operators such as DHL, FedEx, UPS and TNT.

While for the import/export customs supervision area and export cargo consolidation areas, customers would be third-party logistics companies and freight forwarders.

“Tenants for the bonded logistic centre and office complex would be more diversified, including manufacturers in electronics, IT, medical devices, pharmaceuticals and luxury goods.

These companies provide high valued-added products and have demands for air transportation and also bonded logistic facilities.”

The Beijing Tianzhu Integrated Free Trade Zone is the first of its kind at a Chinese airport, according to Shum, who claims that it offers a unique “three-in-one” combination of functions.

He says: “Beijing Tianzhu Integrated Free Trade Zone serves as port, a bonded logistics centre and processing facility.

The port function includes port operation, entrepôt trade, international sourcing and international transfers.

Corporations located in the bonded logistics area will be able to carry out bonded warehousing, packing and sorting, dealing and distribution, consignment and maintenance.

“Modern service and high-tech industries are encouraged to establish facilities in the processing area. Operations in this zone will include manufacturing, display and exhibition, research and development, consignment and maintenance.”

ACL will invest in excess of $1.5 billion in a three-phase development plan for the logistics park, which will help ensure that Beijing Airport City generates around $8 billion per annum in economic activity by 2015.

The logistics park’s development is supported by the Chinese Government, which hopes that it and Beijing Capital’s other airport city projects will prove to be major success that helps drive the nation’s economy in the years ahead.

Beijing Capital’s airport city plans are certainly highly ambitious, with operator Beijing Capital International Airport Co Ltd intending to create its own aerotropolis on a 100-square kilometre site between the Sixth Ring Road in the north, Litian Road in the south and the Wunyuhe and Jingcheng Expressway to the west.

In addition to the logistics park it will contain Bonded City, International Industrial City, Exhibition City, Education City, Automobile City and Gardening City, as Beijing Capital aims to evolve into a mega-city with shopping malls, tourism and leisure centres and industrial development.

Priority will be given to industries that are closely linked to air transportation and aeronautical activity, such as cargo and logistics, high-tech manufacturing and service industries that range from aircraft cleaning companies and maintenance facilities to hotels and convention and exhibition centres.

It will also vigorously promote value-added industries, supporting services and special projects, and feature entertainment and educational facilities as the gateway looks to make maximum use of the land available.

Ultimately, it will become an inland free-trade port of China and an international gateway for economic development in Beijing, Tianjin, Hebei, and the Bohai circle.

An ACL subsidiary, Beijing Airport City Real Estate Development Co Ltd (Airport City Real Estate), has been set up to manage the various land development and real estate projects associated with Beijing Airport City.

The airport itself is China’s gateway to the world and a key aviation hub of northeast Asia, with the most comprehensive and extensive route network in China.

It currently boasts 127 domestic routes and 172 international services that result in over 1,000 aircraft movements daily. Indeed, Beijing Capital International Airport handled 55.6 million passengers (+1.3%) and 1.4 million tonnes of cargo in 2008, making it the eighth busiest passenger gateway in the world and 20th biggest cargo hub.

It is already a vital economic generator and its influence is set to grow exponentially over the next decade as the logistics park and Beijing Airport City take shape.

In terms of facts and figures, it is estimated that the annual output value of Beijing Airport City will reach $8 billion by 2015, and double in the longer term, generating 15% of Beijing’s GDP despite occupying only 1.5% of the Chinese capital’s land mass.

Chinese economic experts have even gone as far to predict that Beijing Airport City will contribute between $585 million and $880 million in tax revenue every year, create up to 400,000 jobs and house between 200,000 to 300,000 residents. Potential rewards such as these would make the airport city a major catalyst for growth, not just for Beijing but the entire Chinese economy.

Asia-Pacific Airports 2009 Issue 3

 

Keith Strandberg reports on the continued development and growth of Hong Kong International Airport.

A decade on from its much-trumpeted opening, Hong Kong International Airport continues to set the standards that other Asian gateways strive to follow.

The gateway, which replaced Kowloon-located Kai Tak in 1998, handled 47.8 million passengers (+7.5%) last year to maintain its status as Asia-Pacific’s third busiest airport after Tokyo Haneda and Beijing Capital.

While the 3.7 million tonnes of cargo (+4.5%) to pass through its facilities in 2007 ensured that it maintained its lofty position as the region’s leading cargo hub and the world’s second biggest cargo airport after FedEx’s Memphis home base.

The importance of the gateway to the Hong Kong economy has also grown significantly over the last 10 years according to official figures, which reveal that the aviation activity now accounts for over 3% of the Special Administrative Region’s gross domestic product (GDP).

Air cargo has been bringing huge economic value to Hong Kong. In the first nine months of 2007, the industry handled more than HK$1,404 billion worth of air cargo, representing about 35% of the total external trade of Hong Kong.

And the best is yet to come, as Stanley Hui – CEO of Airport Authority Hong Kong – has big plans for the airport.

“To meet rising demand and to enhance the airport experience, a number of projects and investments, estimated to cost billions of dollars, are being planned to ensure we have sustainable growth,” Hui says.

“We budgeted about HK$4.5 billion in early 2006 for a series of large-scale projects to enhance the capacity of Terminal 1 and the airfield. Construction works are being implemented in phases and are expected to be completed by the end of 2010. One of the highlights is a new 10-bridge-served North Satellite Concourse. Custom-built to cater to the growing market of narrow-bodied aircraft, the new facility is designed to handle five million passengers annually and is expected to be in service at the end of 2009.”

In addition, the airport is reviewing plans for a midfield concourse, to satisfy demand for more parking bays and terminal capacity.

After these enhancement projects are completed, Hong Kong International Airport (HKIA) will have a total of around one million square metres of terminal areas, including the existing Terminals 1 and 2, the future midfield concourse, the North Satellite Concourse and the permanent ferry terminal.

The airport and Hong Kong’s Civil Aviation Department (CAD) have also commissioned UK-based consultant, National Air Traffic Services (NATS), to look into possible ways of enhancing airfield efficiency at the gateway.

“The findings suggests that the number of hourly aircraft movements at Hong Kong International Airport can be increased, subject to the implementation of a number of changes in air traffic management procedures,” explains Hui.

“The Financial Secretary of the Hong Kong SAR Government announced at the end of February 2008 that the government is confident the capacity of the existing runways can be gradually increased to 68 aircraft movements per hour by 2015 with support of the airport authority and the industry.”

“NATS is now conducting a study to determine how many additional aircraft movements a third runway might handle,” says Hui. “We will also study the technical and environmental feasibilities of building a third runway before making any decisions.”

Currently, HKIA connects Hong Kong with more than 150 destinations worldwide, including about 40 mainland cities, but Hui has no qualms in admitting that he wants more to “maintain the airport’s international and regional aviation hub status”.

“We are committed to expanding our international and mainland route network as the over 85 airlines operating here today play a crucial role in making Hong Kong a leading regional and international air hub,” he says.

The airport is certainly no stranger to marketing campaigns aimed at attracting new carriers or encouraging existing operators to launch new services, having had a new destination incentive arrangement (NDIA) in place since 2001.

Enthuses Hui: “The current NDIA programme repays the airlines 75% of the landing charges during the first six months of operation and 25% of the landing charges in the following six months on scheduled flights from HKIA to new destinations.”

And it appears to be paying dividends as seven airlines launched services from HKIA in 2007 – Aeroflot Cargo, Yangtze River Express, Jett 8, China Cargo Airlines, Thai Global Cargo, Uni Air and East Star – and Royal Jordanian commenced scheduled flights between Amman and Hong Kong earlier this year.

Hui insists that the support of home-based carriers Cathay Pacific Airways, Dragonair, Hong Kong Airlines, Hong Kong Express Airways and Air Hong Kong (all-cargo) all have a vital role to play in ensuring that the airport continues to provide a “world-class service” to passengers.

The notable absentee from that list is long-haul, low-cost carrier Oasis Hong Kong Airlines, which stopped flying in April after going into liquidation just 18 months after its launch.

The airport’s geographical location means that its future development is inevitably linked to the giant neighbour on its doorstep, and with this in mind, the airport has adopted an ambitious policy of investing in Mainland Chinese gateways.

“To be an integral part of the mainland aviation industry, we have invested in Hangzhou Xiaoshan International Airport, taking out a 35% stake in the airport and entering into a management joint venture for the Zhuhai Airport for the next 20 years,” says Hui.

“We also provided consultancy services to Beijing Capital International Airport (BCIA) for the commissioning of its newly opened Terminal 3. In addition, the Hong Kong and Shenzhen governments have plans to build a direct rail link to connect Hong Kong and Shenzhen airports, and we are also participating in the feasibility study now.”

Hui is particularly proud of HKIA’s efforts to enhance its facilities and services – through infrastructure upgrades like the opening of Terminal 2 and initiatives such as the use of radio frequency identification technology (RFID) in baggage handling.

Enthuses Hui: “Hong Kong is an airport pioneer in the adoption of RFID technology. At the end of last year, we started using an integrated bag tag combining an embedded RFID chip with a traditional barcode. RFID tags can be quickly read from a distance and at an angle, with enhanced read-rates of 97% versus an average of 80% for the barcode-only tags.”

Hui and HKIA also work hard to be a truly multi-modal transport hub that integrates air, sea, rail and land transport. For HKIA not only connects the SAR with over 150 worldwide destinations, it also provides a comprehensive sea and land transport network to the Pearl River Delta (PRD).

Indeed passengers can take high-speed cross-boundary ferries to travel between HKIA and six PRD ports – Jiuzhou, Macau, Fuyoug, Shekou, Humen and Zhongshan. While cross-boundary coaches make 240 round trips between HKIA and 70 mainland destinations everyday, cross-border limousine services are also available at HKIA to provide direct and fast link services.

So what does Hui believe the future holds for Hong Kong International Airport?

“It is all good,” says Hui. “I believe that in ten years’ time we will still be a key international and regional hub and a major gateway hub of Mainland China, but with a massively enhanced route network of sea and land connections to the mainland.

“Most importantly, the airport will continue to contribute to the economies and social development of both Hong Kong and Mainland China.”

In line with this prediction, Hui is confident that the airport will continue to set new records, handling up to 80 million passengers, eight million tonnes of cargo and 490,000 aircraft movements annually by 2025.

With the Civil Aviation Administration of China (CAAC) estimating that Chinese airports will enjoy average annual growth rates of 10% up to 2020, who would bet against it?

Asia-Pacific Airports 2008 Issue 1

Teresa Andrews reports on Fiji’s efforts to finalise the master plan for the development of the island nation’s key gateways.

After a period of political uncertainty and huge social change, a new day is dawning for Airports Fiji Limited. The company’s new Board and management team, in place for less than a year, are pressing ahead with far reaching plans to make major changes to the country’s airports.

Airports Fiji Limited (AFL) is a fully owned government commercial company (GCC), established in April 1999 following the reorganisation of the Civil Aviation Authority of Fiji (CAAF) into separate commercial and regulatory authorities.

Tasked with profitably operating two international airports and 13 other non-profit public airports located at outer island airstrips, AFL is required to provide a minimum 10% return on commercial assets per annum.

This is no small task, especially given that its $184 million in fixed assets are spread over the 18,000 square kilometre country, albeit in the vicinity of its 15 commercial airports.

The original 20-year master plan for Fiji’s two international airports – Nadi and Nausori – was completed in 2006, but has not been implemented due to changes to the Board and the airport’s management team.

The former blueprint for the future is currently being reviewed by the new management team, which has promised to unveil an amended version later this year. Big changes are expected.

AFL’s two international airports are both located on Fiji’s main island of Viti Levu, which is both the main tourism destination and location of the capital city, Suva.

However, with less than 200 kilometres between the two airports and a total throughput of only around 1.2 million passengers per annum, is the development of both airports financially viable?

AFL certainly thinks so if the planned investment was to enhance Nadi’s status as the established tourism gateway to Fiji and Nausori’s position as the country’s main airport for business travel.

“It will take around $50 million to redevelop Nausori as a full international airport and that scale of capital investment is currently hard to justify,” admits AFL’s commercial general manager, Lavinia Kaumaitotoya.

“However it might be viable if the we were to reposition it as a premium domestic airport, building on the strong air shuttle connections between Nadi and Nausori that are already established and growing both the pure domestic and the domestic connecting passenger markets.”

If AFL was to reinvent Nausori as a ‘premium domestic airport’, the existing terminal building would need to undergo a major facelift and its airfield would require modification.

However, it may be the way forward for Fiji as the increasing number of business and VFR travellers flying into Nadi and taking internal flights to Nausori are seen by AFL as a primary growth area.

Additionally Northern Air Services Charter Limited has begun operating scheduled flights between Fiji’s airports, representing significant increased revenue possibilities on the domestic market.

“We believe the repositioning of Nausori will create a strong profit centre for AFL and turn the airport around,” says Kaumaitotoya. “We are also currently analysing its non-aeronautical revenue potential. The domestic market is price driven, but the right product will sell. Unlike Nadi, where brand names are important for the international market, Nausori’s commercial offering is more concerned with economies of scale and price sensitivity.”

Nadi International Airport, home base to Fijian national flag carrier Air Pacific, is the country’s biggest gateway with 24-hour operating status and main 3,200m runway capable of handling widebody aircraft.

The airport handled around 73,000 aircraft movements last year with the bulk of overseas tourists coming from Australia, New Zealand and the United States.

“It has been a steep learning curve for the new AFL management team, but we are confident that we will be able to build on the extensive 20-year master plan for Nadi put together by Australian aviation consultancy Airbiz,” comments Kaumaitotoya.

“The development of non-aeronautical revenue at Nadi represents significant potential for AFL. Under the new master plan, the terminal is likely to be expanded and redeveloped, with one side of the building offering an increase in the number of gates available and concentrating passenger facilities in an efficiently arranged specially designed section of the building.

“We are also looking at creating space for commercial real estate and concession development in a wing of the terminal. Currently we have concept drawings of these facilities, awaiting final Board approval.”

Air Pacific – a full code sharing partner with Qantas – recently signed an agreement with Boeing for an additional three B787-9 Dreamliners meaning that it now has eight aircraft on order in a record breaking $1.5 billion deal.

“Air Pacific has proven itself to be a very visionary airline,” enthuses Stan Deal, vice president, Asia Pacific Sales for Boeing Commercial Airplanes, of the deal – the largest transaction ever undertaken by a Fijian company.

But the plans to develop Nadi Airport don’t end there, as AFL is thinking big and admits that it is interested in developing longerterm plans for an airport city.

“In June 2008 around 1,200 acres of land adjoining the airport will revert to our ownership and provide us with a possibility of developing real estate,” adds Kaumaitotoya. “There is already a local community on this area of land and we are looking to work in partnership with them, ultimately creating an airport city.”

Has AFL found it difficult to attract new carriers to Fiji or encourage commercial investment in its airports since the 2006 political coup?

“Actually the pattern of restoration following each coup is quite predictable and our regular business partners are able to count on Fiji’s ability to recover quickly following unrest,” says Kaumaitotoya. “Currently the outlook for Fiji is very positive, with the whole country gearing up economically and psychologically towards the 2009 elections.

“Route development is an area the new management team is just starting to look at but clearly we would like more international carriers operating into Nadi. We are quite visible internationally as a tourism destination as we are popular with celebrities, particularly from the US, who talk about how beautiful it is here. That is an excellent form of endorsement and promotion for us.

“We will continue working closely with the Fiji tourism industry to market our country around the world and by creating demand we hope to influence more carriers to considering flying to Fiji.”

AFL is also looking to develop its FBO operations in order to better accommodate an ever increasing number of small jets flying to the islands from the US.

Adds Kaumaitotoya: “We’ve looked at the marketing models from other island tourism destinations, such as the Caribbean and Bahamas, and I believe we have a product here that has an infrastructure and individual safety record which exceeds many of them.”

Other areas targeted for future development include air cargo. Currently sea cargo has around 95% of the market for all goods carried into Fiji, but certain high value or delicate cargoes might be attracted to air freight if the right pricing and facilities were available.

“There is a great deal to do and we are really at the start of everything, with a fledgling Board and management team guiding the airports,” enthuses Kaumaitotoya.

“We have great enthusiasm about how our business and tourism industries will develop and look forward to what the future may bring. These are exciting times for both Fiji and AFL.”

Asia-Pacific Airports 2008 Issue 1

Planned airport development in Mainland China shows no sign of slowing down, writes Joe Bates.

China has announced plans to build the highest airport in the world in Tibet, and its construction is likely to be a daunting task given the altitude and climate, with average temperatures staying below zero throughout the year.

According to Chinese state news agency Xinhua, the new Nagqu Dagring Airport will open in 2014 and its planned location at 4,436 metres (14,553ft) above sea level will make it the world’s highest gateway, beating neighbouring Qamdo Bamda Airport by 102m (300ft).

The airport – which will be just 764 metres lower than the Mount Everest base camp on the Chinese side – is set to become Tibet’s sixth gateway serving Nagqu Prefecture and a population of around 400,000.

Whether it will have the longest runway in the world – the title also currently belongs to Tibet’s Qamdo Bamda courtesy of its 4,200m long runway – remains to be seen.

“The airport construction is planned for 2011 with a construction period of three years,” says Xu Jian, director of the Nagqu committee of development and reform.

“It is expected to cost 1.8 billion yuan [€1.85 million] and cover an area of 233-266 hectares.”

The airport is just one of nearly 100 new airports that China has stated that it intends building by 2020 in a bid to meet future demand, which is expected to soar over the next decade as the nation’s economy grows.

The vastly ambitious development programme comes with a $68 billion price tag and, in terms of new cities getting airports for the first time or new state-of-the-art gateways replacing out of date facilities, is quite simply, mind-boggling.

No other country can match the huge development programme, but then again nobody else has China’s population – 1.3 billion people or 20% of the world’s population – or, its future economic growth potential.

If the big build is going to happen, an average of nine or ten new airports per year will have to be completed over the next decade.

The new airports will mean that 80% of the nation’s population live within 100 kilometres of an airport – a remarkable achievement for a country the size of China.

The government decided to embark on the massively ambitious development programme in 2008 after a decade of rapid economic growth began to create bottlenecks in China’s aviation infrastructure.

And with demand expected to grow by at least 10% per annum between now and 2020, the need for new airports cannot be understated.

Among the 92 projects currently being considered by the Chinese government, are plans for a second gateway in Qingdao (Shandong Province) and new gateways at Guyuan (Ningxia Hui Autonomous Region), Wushan (Sichuan Province), Hefei (Anhui Province) and Xigaze, Nagqu and Yushu in Tibet.

Elsewhere, the Yunnan Airport Group is reported to be on the look out for a global strategic investor to fund a new $2.9 billion airport in Kunming while GE Capital Aviation Services (GECAS) has set up a joint venture with Guangdong Airport Management Corporation to build a new $500 million airport at Chaoshan (Guangdong Province).

Xu Bo, director of the Tibetan branch of the China civil aviation administration, notes: “The objective for the next stage of development is to open direct air routes from Tibet to south Asian countries”

A recent economic stimulus package from the Chinese Government is expected to act as a catalyst for large-scale airport development in China, with many new capacity-enhancing projects either being launched or their completion accelerated, triggering a new wave of real estate development programmes either within or just outside the perimeter fence.

Indeed, many cities are expected to use the economic stimulus package as an opportunity to upgrade their ground transportation links and, in this regard Hongqiao International Airport in Shanghai provides an eye-catching illustration.

For in addition to the airport’s master plan to add a new terminal, runway and 600,000 tonne capacity cargo complex by March 2010, the municipal government has unveiled plans to build an enormous ground transportation hub (the Hongqiao Comprehensive Transport Centre) that will be capable handling over one million passengers daily as well as boasting a residential area and office complex.

Other Chinese cities and airports are watching the project with interest and are expected to try and follow Shanghai’s concept and approach in their own ‘airport city’ developments, though few may match the magnitude or duplicate the value of the Hongqiao programme.

Elsewhere, Shenzhen Bao’an International Airport has unveiled plans to build a second runway and new 500,000sqm terminal on land reclaimed from the sea by 2012 and Zhengzhou Xinzheng International Airport and Shenyang Airport are planning new terminals.

In western China, Chengdu Shuangliu International Airport recently completed its capacity doubling $2 billion runway.

Hangzhou, Changsha, Chongqing, Wuhan, Nanjing and Xiamen are among quite a few airports in China about to reach the ‘magic threshold’ of 10mppa, and all have planned or ongoing development projects designed to ensure that they keep pace with demand.

Though most regional airports in China do not make an ‘operating profit’ because they are viewed as key economic assets by local governments, support for the projects and, consequently, funding is not expected to pose much of a problem.

Indeed, most airports and their owners (provincial and municipal governments) are likely to take advantage of the cheap commercial loans available from China’s domestic banks.

‘Non-profitable’ regional airports are also expected to receive additional funding from central government via the General Administration of Civil Aviation of China (CAAC).

Foreign investment is encouraged, although there has not been much take-up to date.

Reasons for the lack of overseas investment in Chinese airports vary from ‘cultural differences’ to higher than expected internal rates of return (IRRs).

However, there is certainly no indication that airport development in China has suffered as a consequence.

China really is the land of opportunity.

Asia-Pacific Airports 2010 Issue 1

Jesh Rajasingham takes a closer look at the development potential of India’s airport system.

India enjoyed a booming economy for over a decade and three consecutive years of near 10% growth in its gross domestic product (GDP) before the global financial crisis led to a slowdown last year.

However, the country’s economy remains the twelfth largest in the world and the fourth largest by purchasing power parity (PPP), ensuring that India is still the land of opportunity for many investors and companies involved in upgrading its aging infrastructure.

To put things in perspective, India still recorded an official GDP growth rate of 6.1% in 2009, and international recognition of its growing geo-political importance and G20 membership means that the nation has well and truly arrived on the world stage.

In terms of aviation, sustained and pronounced economic growth has heralded the arrival of a host of new domestic and international carriers such as Kingfisher, Spicejet, Go Air, Paramount, IndiGo and Jet Airways and its subsidiaries Jet Konnect and JetLite.

Competition is particularly fierce in the domestic market where the new start-ups have brought down ticket prices and made aviation more accessible to millions of Indians.

However, it is estimated that only 4% of Indians travel by air, so there is still vast potential for growth, particularly in the domestic market where Air India, Jet Airways (+JetLite) and Kingfisher between them handle close to 70% of all passengers.

Internationally there has also been explosive growth in the number of services between India and the UK, the figure rising from around 19 flights per week in 2004 to over 130 weekly services today.

A common perception amongst the international business community is that poor transport infrastructure in India acts as an impediment to doing business.

Like many perceptions, this contains a kernel of truth, which has been acknowledged by the Indian government and many states.

Indian airport operator, Airports Authority of India (AAI), was formed in the mid-1990s by merging the International Airports Authority of India and the National Airports Authority with a view to expedite the expansion and modernisation of India’s airports.

And, year-on-year percentage increases in both domestic and international travel have made this process an absolute necessity to ensure that the country’s airports are equipped to meet future demand and therefore continue to act as a catalyst for growth for the entire Indian economy.

Indeed, India recognises the central importance of a world-class aviation infrastructure, particularly the huge impact this could have on the competitiveness of Indian exports.

The government is also well aware that enhancing the country’s aviation infrastructure will put India in a better position to serve the entire Asia-Pacific region, which now accounts for around 30% of all global passenger traffic.



Other reasons for upgrading the nation’s airport infrastructure include the desire to maintain the territorial integrity of India’s outlying regions, improve safety levels and make air travel more accessible.

In 2008, India’s Ministry of Civil Aviation announced its intention to build a number of new airports on greenfield sites, as well as redeveloping existing smaller airports.

The country currently boasts 24 major international passenger and cargo airports and 36 regional airports, and the ambitious target is to more than double the number of major international and regional hubs within twelve years.

To achieve this goal, the government will almost certainly require private sector involvement to fund and drive the projects and possibly a number of international companies with global aviation industry experience to design and build the new infrastructure.

UK design, construction and consultancy companies, for example, are likely to be at the forefront of these ambitious plans having already worked on projects at three of India’s five major privatised gateways – Hyderabad– Rajiv Gandhi, Delhi–Indira Gandhi and Mumbai–Chattrapati Shivaji.

India’s other privatised gateways are Bangalore’s Bengaluru International Airport and Cochin International Airport.

Arup’s flexible design of the new Rajiv Gandhi International Airport – located 22 kilometres south west of Hyderabad – ensure that the gateway can easily be expanded in the future to accommodate up to 40mppa.

While Mott MacDonald acted as the lead technical advisor for the preparation of the master plan and preliminary design for the development of Delhi–Indira Gandhi International Airport and also contributed to the landside master planning and flood modelling at Mumbai–Chattrapati Shivaji International Airport.

Mott MacDonald performed the tasks while working for Delhi International Airport Ltd (DIAL) and Mumbai International Airport Pvt Ltd respectively.

Delhi–Indira Gandhi operator, DIAL, is aiming to equip the gateway to handle 80mppa by 2025.

Halcrow is another British company hoping to join them soon, based on its significant experience of working on large-scale transport and infrastructure projects in India as well as at nearly 40 additional airports worldwide.

UK India Business Council (UKIBC) CEO, Sharon Bamford, is acutely aware of the Indian government’s plans to upgrade the nation’s airport system and the potential business opportunities that its plans could provide for overseas companies.

“The first thing that strikes some international travellers about India and China is the disparity in transport infrastructure, although this is changing fast as India has ambitious and far sighted plans for the development of its transport infrastructure,” says Bamford.

“I believe that the design and construction skills and experience of UK companies should mean that they have a major role to play in helping shape the future of India’s airport system.”

She notes the British India Roads Group (BIRG) was formed as a direct response to Indian government targets on its future road requirements, and believes that the UK India Business Council can fulfil a similar role for the aviation industry.

Perhaps the final comment on the ongoing development of India’s airports system should be left to the conclusion drawn by Manuj Ohri in his recently published discussion paper ‘Airport Privatisation in India’.

The University of Delhi’s Ohri says: “Although the analysis shows that Indian airports are way behind foreign peers in terms of infrastructure and performance, the government has taken corrective action in order to improve their state.

The sheer potential of air travel in India makes it a very lucrative market.

This has increased interest in the sector.

“The government is still in a learning mode as far as airport infrastructure provision is concerned.

It has experimented with BOO (Build- Own-Operate) in the past through Cochin Airport and recently with 30-year concessions for Delhi and Mumbai Airports.

It will be interesting to see how the government balances the expectations of its coalition partners and at the same time ensure efficient and world-class airports for its populace.

“The good news is that the government realises the opportunity and is prepared for taking decisive decisions for the same.

The future growth and performance of airports will depend to a large extent on the political will and the ability of the government to garner support for the ongoing initiative.”

Asia-Pacific Airports 2010 Issue 1

Louise Driscoll and Joe Bates discover that airport development continues at a pace across the Middle East despite the global economic slowdown.

With an estimated $86 billion being spent on expansion projects, there is no denying that the Middle East region is one of the hottest places on earth for airport development. According to the latest research by Frost & Sullivan, 90% of the big spend will be concentrated on the expansion or creation of new airports at 12 destinations across the region – Abu Dhabi (UAE), Amman (Jordan), Bahrain (Bahrain), Beirut (Lebanon), Cairo (Egypt), Doha (Muscat), Dubai (UAE), Jeddah (Saudi Arabia), Kuwait (Kuwait), Muscat (Oman), Riyadh (Saudi Arabia) and Sharjah (UAE).

“The current economic slowdown will not impact on the Middle East commercial aviation industry and airport development activities will persist, despite the slowdown as most expansion activities are funded by governments in these countries,” notes Frost & Sullivan’s research analyst Gautam Ratan Kanal.

And in many cases the ambitious expansion plans go hand-in-hand with the rapid growth of the airport’s home carriers with Etihad (Abu Dhabi), Emirates (Dubai) and Qatar Airways (Doha) being among the fastest growing airlines in the world.

Dubai’s new $8.1 billion Al Maktoum International Airport – the centrepiece of Dubai World Central, a planned ‘urban aviation community’ spread across a huge 140 square kilometre site – will officially open for cargo operations on June 27.

Although yet to set a date for the launch of passenger operations, a 7mppa capacity terminal is currently under construction.

When complete, it is expected to handle low-cost, regional and charter flights, providing some relief for Dubai International Airport, which handled 40.9 million (+9.2%) passengers last year and predicts 13.6% growth in 2010.

Both airports will eventually be linked by high-speed rail and, in the long-term, Al Maktoum is set to boast two mega terminals, six runways and six concourses capable of handling more than 120mppa.

Elsewhere in the UAE, the nation’s second largest gateway, Abu Dhabi International Airport, is constructing a new Midfield Terminal as part of its $6.8 billion expansion programme.

The new Midfield Terminal, which will effectively replace today’s existing facilities, will raise the gateway’s capacity to 20mppa when it opens in 2015.

The massive project is in-line with the Abu Dhabi government’s ‘Plan 2030’ to diversify the Emirate’s economy to decrease its dependence on oil and gas.

Abu Dhabi Airport Company’s vice president of corporate marketing and communications, George Karamanos, says: “We already have 45 airlines here and the number is growing.

This growth, coupled with Etihad’s fast expanding network and frequencies, means that we have simply outgrown our existing facilities.

We anticipate steady passenger growth for the next five years and beyond.

” The airport has more than doubled its passenger numbers in the six years since Etihad Airways has been operational.

Perhaps central to this rapid growth, the Middle East is geographically well positioned to develop as a primary logistics and transfer hub, feeding passenger traffic and trade between Europe and Asia.

As the Gulf airports transform themselves into ultra-modern new gateways, mega terminals are springing up to serve the world’s biggest passenger aircraft.

One will be in Qatar, where the government is funding the construction of a new $14 billion gateway for capital city, Doha, which is claimed will be one of the first gateways in the world designed to accommodate the A380.

Due to open in July 2011, the New Doha International Airport will initially be capable of handling 24 million passengers and 1.3 million tonnes of cargo per annum.

Its multi-level 350,000sqm passenger terminal – an area equivalent in size to 50 football pitches – will boast 40 gates, a distinctive wave shaped roof to reflect Qatar’s seafaring past and its own 100-room transit hotel and public mosque.

Also aligning airport development with the needs of its airline customers, Oman’s largest gateway, Muscat International Airport, has begun the first phase of its modernisation programme designed to raise its capacity to 12mppa by 2012.

And further expansion is planned in three phases in a bid to boost the airport’s capacity to 48 million passengers by 2050.

Building market share continues to fuel yet more airport expansion.

Elsewhere in the Gulf, state-owned Bahrain Airport Company (BAC) plans to triple its handling capacity to 27mppa and become a ‘mega airport’ for the region through multi-billion dollar investments.

Major construction is due to start this year and includes the addition of two new terminals: Terminal 1A – (adjacent to the existing facility) and demolishing and rebuilding the present terminal with a new Terminal 1B.

BAC is now tendering a design contract for the overall development and has started receiving bids from HOK Architects, Naco, Aéroports de Paris Ingenierie, Mott Macdonald, Jacobs Gibb and Dar al Handasah.

In Amman, Jordan, Airport International Group’s 25 year concession (awarded in 2007) to redevelop and expand Queen Alia International Airport (QAIA) includes overseeing a $750m redevelopment and expansion project, as well as the construction of a state-of-the-art 100,000sqm passenger terminal in readiness for a spring 2012 opening.

The long-term objective is to transform QAIA into a key regional hub, while raising capacity from 3.5 to 9mppa.

“We are continuing to experience strong traffic growth despite the dire global economic conditions of the past year,” says AIG’s CEO, Curtis Grad, who notes that passenger throughput increased by 6.5% to 4.7mppa in 2009 while aircraft movements soared by 12.6%.

In Saudi Arabia, major new facilities are planned in Jeddah, Riyadh and Dammam and the General Authority of Civil Aviation (GACA) has unveiled plans to invest up to $5 billion on five new gateways, including a possible fourth airport designed to serve the Muslim holy city of Medina.

GACA estimates that in excess of $13 billion needs to be invested on modernising and expanding Saudi Arabia’s airports, with Jeddah– King Abdulaziz being the main beneficiary of the largely government funded upgrade.

In addition to a new 400,000sqm crescent-shaped passenger terminal in Jeddah, the gateway’s $1.5 billion upgrade includes new runways, a state-of-the-art 450,000 tonnes per annum capacity cargo complex, new ATC tower and railway station in readiness for a rail link to both downtown Jeddah and the holy cities of Mecca and Medina.

A planned Automated People Mover (APM) will provide the ground transportation links between the new 42-gate terminal and the Hajj Terminal, which is being expanded and redeveloped by the Hajj and Umrah Terminals Construction and Development Co (HTDC) on behalf of concessionaire SBG.

In addition to King Abdulaziz, a master plan currently being drawn up by NACO will involve increasing the capacity of Riyadh–King Khaled International Airport from 14mppa to 40mppa by 2038.

“We are also conducting studies at King Fahd International Airport (Dammam) and 13 other regional gateways which we believe are most in need of extra capacity.

Of these, Abha is our top priority as it is the fifth busiest airport in the Kingdom,” says HH Prince Turki Faisal Al-Saud, GACA’s vice president of international organisation affairs and ACI Asia-Pacific’s acting first vice president.

Meanwhile Kuwait International Airport is planning to upgrade its airfield and construct a 90,000sqm second terminal that will treble its capacity to in excess of 20 million passengers per annum by 2013.

Additional expansion plans include a two million square metre cargo and logistics complex that when complete will be capable of simultaneously accommodating up to 70 A380s and around six million tonnes of freight annually.

The hugely ambitious development programme, being drawn up by the airport as it prepares its master plan for the next 30 years, would create an impressive new ‘front door’ to Kuwait that will help the airport cope with rising demand of up to 17% per annum.

In the short and medium-term, the greater need for capacity and the drive towards airport infrastructure development will continue as the home carriers in the Middle East continue their growth paths across pan-Arabian and Intercontinental networks.

Asia-Pacific Airports 2010 Issue 1

Joe Bates reports on the ambitious development plans of Mumbai’s international gateway.

Many airports may envy Mumbai Chhatrapati Shivaji International Airport’s potential, but few would relish the challenges it has to overcome in order for it to fulfil its promise.

For although it is India’s busiest gateway – handling 37% of the country’s air traffic – and serves one of the world’s biggest and fastest growing cities, its location at the heart of Mumbai ensures that it has little room to expand.

Indeed, it is hemmed in on all sides by the Mumbai metropolitan area’s fast expanding population of 20 million people, and squatter camps currently occupy nearly 300 acres of the airport site.

The latter situation needs to be resolved and the land ‘reclaimed’ for operational use if the gateway’s ambitious $1.7 billion Masterplan, which hinges on the development of a new 40mppa capacity terminal, is to come to fruition.

India’s empowered group of ministers (EGoM) has given operator, Mumbai International Airport Ltd (MAL), clearance to remove the squatters, however, the state government has yet to decide on how many people are “eligible for rehabiliation”, let alone an eviction date.

The lack of action on the removal of the squatters has nevertheless failed to quash MIAL’s ambitions to enhance its key infrastructure, the company recently announcing that it now favours the construction of two new terminals to replace today’s passenger facilities.

It wants a new 30mppa capacity international/domestic terminal to become the gateway’s new ‘showpiece’ facility and, such is MIAL’s confidence in the success of its plan, that it expects work on the new facility to begin later this year.

And it plans to build a new domestic terminal (Terminal 1C) by December 2008 that will eventually become the gateway’s dedicated new low-cost facility when all other domestic flights move to the new showpiece terminal.

Terminal 1C’s construction is likely to lead to the demolition of Terminal 1B, the most modern and popular passenger facility at the airport , because it is located on land that MIAL is likely to need for aircraft operations/maintenance.

If Terminal 1B is razed – it only opened its new 10,000sqm departures area in October 2006 and handles six of the eight domestic airlines serving Mumbai – the new low-cost terminal will be created from terminals 1A and 1C.

MIAL has pledged to invest $175 million on “interim terminal developments” at the airport. And it is in no doubt that the total transformation of Mumbai Chhatrapati Shivaji International Airport is vital to the gateway’s long-term success as the location and services provided in today’s passenger facilities, with the notable exception of Terminal 1B, don’t meet international standards.

It is hardly ideal, for example, that the international terminal (Terminal 2) and the domestic terminals (T1A and T1B) are actually located in different parts of Mumbai – the former in Sahar in the eastern Andheri suburbs of the city and the latter between the districts of Vile Parle and Santa Cruz. The four kilometre distance between them means that it can take up to 35 minutes to drive between the facilities during rush hour.

There is also a very real need to raise the airport’s capacity with passenger throughput expected to rise by at least 20% per annum over the next five years – 30% of the growth predicted to come from domestic travellers.

Mumbai’s booming economy, expanding population and growing importance as a financial and cultural hub have proven the catalyst for the recent dramatic upturn in passenger throughput.

The gateway currently welcomes around 20mppa. It actually handled a record 22.2 million passengers (+21%) and 480,000 tonnes of cargo in the 12 months ending March 2007, but experts believe this is nothing compared to what the future might hold.

In fact with forecasts projecting that Mumbai could be handling 27.5mppa by 2010, upwards of 40mppa by 2015 and many as 80mppa by 2026, the Indian Government has given the green light for the construction of a new $2.5 billion airport for the city.

Tenders for the new greenfield gateway, which is to be called Navi Mumbai International Airport, are expected to be sought next year, with work on its construction possibly starting as early as 2011.

MIAL has the first right of refusal on the project if its bid is within 10% of the “best offer”, but is remaining tight lipped about its intentions, instead preferring to concentrate its efforts on upgrading Mumbai’s existing gateway.

Chief operating officer, Rudy Vercelli, certainly appreciates the need for change, but acknowledges that with so much at stake – for both MIAL and local residents – the airport expansion issue has to be handled sensitively and with care.

“The lack of space at Chhatrapati Shivaji and the fact that it is completely surrounded by the city, with some people actually living on the airport site, possibly makes our Masterplan one of the most challenging ever,” says Vercelli. “We understand what is involved and that it will mean relocating some people and inconveniencing others, at least during the construction process, but the successful redevelopment of the airport is vital for Mumbai, the region and entire country.”

The lack of space that Vercelli refers to means that the new international terminal will have to be built close to the current one that it is set to replace. Its opening is also expected to be phased to allow the airlines to move in at different times to minimise operational disruption.

One proposal is for a semi-circular shaped complex that is designed to raise the airport’s capacity to more than 40 million passengers and one million tonnes of cargo per annum. The proposed facility has been designed in conjunction with the Netherlands Airport Consultants (NACO).

Other key projects, the bulk of which are slated for completion by 2015, include the construction of a new hotel and office complex, new ATC tower, cargo facilities and elevated expressway to connect the airport with the main highway.

And with Mumbai set to get its first Metro transit train station soon, a connection from other parts of the city to link up to the new terminal building is on the drawing boards.

A new duty-free shopping area is scheduled to open in Terminal 2 before the end of the year as MIAL continues to invest in enhancing the gateway’s existing facilities. It will be operated by a joint venture company formed by Spanish duty free operator, Aldeasa, and Indian company, ITDC.

Adds Vercelli: “The modernisation and expansion programme is on schedule and we are slowly but surely getting where we want to be in terms of getting the right infrastructure in place and raising service standards. We want to create an airport that meets the demands of all travellers.”

The creation of a new, more professional identity for Mumbai Chhatrapati Shivaji International Airport was one of the first things that MIAL worked on after assuming responsibility for operating the gateway in May 2006.

The airport authority – a joint venture company owned by the GVK-led consortium (74%) and the Airports Authority of India (26%) – opted for a peacock feather as its new logo.

Adds Vercelli: “We chose the peacock because it is India’s national bird and we believe it best reflects our wish to create something stylish, professional and memorable in Mumbai.”

MIAL will certainly ruffle a few feathers across India and the entire Asia-Pacific region if it does succeed in transforming Mumbai Chhatrapati Shivaji International Airport into one of the world’s most modern gateways over the next decade.

Asia-Pacific Airports 2007 Issue 1

Tom Withington discovers that India’s airport infrastructure is undergoing a major transformation.

India’s airport sector is enjoying major growth with a combination of private and public sector collaboration propelling the expansion of existing airports, and the development of new facilities, across the country.

The investment boom has moved hand-in-hand with the growth of the Indian economy and the continued liberalisation of the airline market which has seen the birth of a host a new domestic carriers over the last 10 years.

And with the Indian economy expected to grow by about 8.5% per annum for the next 20 years, and air travel becoming affordable to an ever-increasing percentage of the country’s population of 1.2 billion people, there is no reason to think that the investment trend will end any time soon.

One such expert who finds it hard to believe that India is anywhere near its full potential in terms of airport development is Philip Butterworth-Hayes, an aviation consultant at bespoke aerospace research company, PMI Media.

“Beyond the economic growth, you’re seeing the liberalisation of the domestic airline industry, which is contributing to the development of the low-cost airline sector.

“You don’t have to build railways or motorways to link cities to one another in India as domestic air travel is being used for this purpose instead.

“Meanwhile, the proximity of the Gulf States to India, with their major hubs such as Dubai International Airport, are providing access to global destinations which had not always been possible through major Indian international  airports such as Mumbai.”

As well as hedging for future growth, the development of the country’s airport sector reflects the expansion in both domestic and international air traffic witnessed there over the last decade:

“The majority of the volume growth in air traffic this past decade has occurred at the metropolitan airports of Delhi, Mumbai and Bangalore; and to a lesser degree at Chennai, Kolkata and Hyderabad. This has created the need for major airport development programmes at these cities,” comments Joeri Aulman, Dutch airport planner NACO’s regional manager for India. New greenfield airports The development programme at Bangalore’s Bengaluru International
Airport in the State of Karnataka, southwest India, commenced in 2005 and was completed in May 2008 at a cost of $600 million.

The expansion of the city’s airport should enable it to eventually handle up to 17 million passengers annually by 2015, and the facility is well on the way to reaching this target.

During its first year of operation (2008), it handled 8.5 million, with this figure rising to 9.3 million one year later.

The need to design and build a new airport for Bangalore had been imperative given the city’s strategic importance as home to India’s software and high technology sectors, including the country’s aerospace industry.

Meanwhile, Bangalore is also working hard to attract tourists.

Bengaluru was developed using a Public-Private Partnership where the stakeholders include the Airports Authority of India (AAI), the government of Karnataka, Larsen and Tourbo, Zurich Airport and Siemens Project Ventures.

Plans are afoot to extend Bengaluru in the future with the possibility of building a new runway once the airport reaches its target of around 18 million passengers per year. The airport is expected to reach this figure in 2015.

At present, it has a single runway (09/27) with a length of 4,900m (16,076ft). This future expansion of the airport’s physical size will be helped in no small measure by its position on greenfield land 40 kilometres outside the city.

Like Bangalore, Hyderabad has involved the private sector in developing the city’s new airport. The city is located in the state of Andra Prahdesh on the eastern coast of India.

Work on the new greenfield site gateway commenced in 2003 and was co-ordinated by GM-Hyderabad Airport Limited (GHIAL), which involves GMR Group, a large Indian infrastructure company and the majority stakeholder of the GHIAL joint venture, controlling 63% of the stake, along with Malaysia Airports Holdings Berhad (MAHB), which possesses eleven percent.

The public sector composition of GHIAL comprises AAI and the government of Andhra Pradesh, which each hold a 13% stake.

This public-private partnership has allowed the total required investment of $500 million to be raised and the facility to open in March 2008.

Much like the airport at Bangalore, the new facility at Hyderabad is located some distance from the city centre, with a journey of 22 kilometres required.

Hyderabad, like Bangalore, is also playing a key part in India’s dramatic expansion as an information technology centre of excellence. The new airport could have an appreciable effect on local economic growth, with initial capacity slated at 12 million passengers annually.

Although the facilities in Hyderbad and Bangalore represent new facilities, other recent airport initiatives have concentrated on developing the capacity at existing airports.

Chennai
One such example is the airport at Chennai, in the state of Tamil Nadu, southeastern India; the country’s third biggest airport vis-à-vis annual passenger numbers.

In 2008, the go ahead was given to build a new terminal at the airport to handle domestic flights, which will take the airport’s annual capacity to 23 million passengers.

Along with construction of this new facility, the existing domestic terminal was modernized and the international terminal expanded. The latter terminal’s capacity will be taken from three to seven million passengers per year.

Imperative to this expansion will be the construction of a new, third runway to augment the existing two runways (07/25) and (12/30) which have a length of 3,658 metres (12,011 feet) and 2,045 metres (6,709 feet) respectively.

The augmentation of the airport’s terminal facilities is being performed by the Consolidated Construction Consortium Limited, which includes Larsen and Toubro, Nagarjuna Construction, and the Punj Lloyd engineering and  construction group.

Asia-Pacific Airports 2008 Issue 2