New Cathay Pacific Airways chief executive, Tony Tyler, reflects on the challenges ahead for Asia-Pacific airlines.

Name: Tony Tyler

Age: 52

Job title: Chief executive of Cathay Pacific Airways

Nationality: British

Time in aviation industry: 29 years

Best known for: Rising up the ladder at Cathay Pacific after joining parent company, Swire, upon graduating from Oxford University in 1978

Little known fact: Playing the guitar and singing in rock band, Night Flight.

Are you concerned at a potential future capacity shortfall at Asia-Pacific airports?
We are already seeing capacity restraints in Hong Kong, and we have serious air space issues in the region, but they are being addressed at the official and industry level. Airports in the Asia-Pacific region are actually quite supportive of industry growth and have proactively supported new projects.

Are airport charges too high?
All airlines would like to see lower airport charges – they have such a big impact on our bottom line. As a commercial operation that has never received a penny piece from the public purse, we try to keep our costs as low as we can. It is important for airports to understand that airlines are their customers, although we recognise that a healthy airport-airline partner relationship ultimately contributes to the overall benefit of passengers and the overall economy. Airports should keep themselves competitive and continuously look for efficiency gains that can be shared with airlines.

Does Cathay support emissions trading?
We certainly do. But we also strongly believe that emissions trading schemes should be worldwide, not regional. Cathay Pacific was the first airline in our region to commit to a carbon offset scheme, which we are now implementing. Our aim is to ‘neutralise’ a percentage of our carbon emissions by investing in projects in our neigbouring Pearl River Delta of mainland China that will help improve the environment.

Are you worried that the 'hassle factor' will put people off flying?
There is nothing more important to Cathay Pacific than the safety of our passengers and crew. So we must strike the right balance between the requirements of security in a changed world and the comfort and convenience of our passengers. There is no simple answer other than to minimise that inconvenience. As a major international carrier, we will do whatever is necessary to ensure our passengers have a safe and pleasant journey. I believe our passengers agree with that.

How do you plan to develop the airline?
The integration of Dragonair into the Cathay Pacific group last year has given us a marvellous mainland China network of more than 20 destinations to connect with our international long-haul network. We are now the carriers of choice for people wanting to travel to and from the mainland and, as part of our strategy of profitable growth, we are now taking delivery of the first of 23 B777-300ERs that will form the backbone of our long-haul fleet, which is one of the youngest in the industry.

Is the airline's future growth inextricably linked to the development of mainland China?
China is a huge market with an enormous potential for growth. Its economy is growing at more than 9% annually, and last year the number of passengers passing through the country’s airports jumped by 17% to 332 million. Aviation is expected to grow at an average of 14% a year until 2010. Mainland China is where the future lies, and we are perfectly positioned to take advantage of that through Cathay Pacific/Dragonair synergies and our growing strategic and financial relationship with Air China.

What do you see as the biggest challenge to aviation today?
With increasing awareness about environmental issues, concern about climate change is one of biggest challenges. Fuel costs remain a worry as jet fuel prices continue to rise. And with consumer behaviour and expectations changing, there is even tougher competition among traditional carriers. We also need to look at the emergence of newcomers and LCCs, which are operating different business models. But we welcome competition – it’s good for all of us.

Asia-Pacific 2007 Issue 1

Asia-Pacific airports are discovering the benefits of wireless internet technology, writes Edward Russell.

Have you ever been frustrated or even infuriated by not being able to get online at an airport to send that final email before boarding a flight? If the answer is no, you are probably a business executive or frequent flyer with access to airline lounges or possibly even VIP facilities.

It is more of a lottery for the rest of us, although websites like Travelpost.com offer ‘airport wireless internet guides’ for the traveller prepared to do a bit of advance planning.

Things are changing, however, with an ever-growing number of airports across the Asia-Pacific region responding to passenger demand for more widely available wireless internet technology and services to eliminate the global disconnect.

Indeed, airports are increasingly offering free wireless internet services while simultaneously beefing up their broadband networks to improve operations.

“Airports facilitate the flow of people, cargo, capital and information and wireless internet networks are one form of facilitating the information flow, becoming a ‘must’ for any modern international airport,” insists Hong Kong International Airport’s chief information officer, Joseph Lai.

Lai is right, wireless internet networks are a must for today’s aviation hubs, although it appears as if airports are only just beginning to wake up to the benefits.

Hong Kong is a leader in wireless and broadband offerings in Asia-Pacific. It began offering wireless internet for a fee in December 2000, but exactly six years later opted to make the service free. The decision means that it is one of the first airports in the world to offer free wireless internet access throughout the gateway.

The airport uses the network for passenger convenience – it will never again be the cause of unsent emails – and also for internal communication and security.

AAWLAN, the gateway’s closed operations wireless communications network, is a multi-use system used for baggage reconciliation, ground communications, mobile airline check-in and aircraft maintenance.

“Providing the world’s first airport-wide WiFi service is in line with our ‘e-airport’ initiative, which is a strategy that guides the deployment of new technology to meet business demands,” comments Lai.

And the strategy certainly appears to be succeeding – ACI’s Airport Service Quality (ASQ) customer satisfaction survey showing that passengers rated Hong Kong International Airport’s telecom facilities highly. The actual satisfaction level rising 7.8% in the first quarter of 2007.

Randy Pizzi, vice president and managing director of the Asia Pacific division of communications company, ARINC, explains how its products and services can help airports and airlines improve their operations and costs.

Says Pizzi: "Airports compete with one another, especially in Asia-Pacific where the industry is facing very aggressive growth. The ability to improve operational effectiveness, speed up passenger processing and optimise human resources will be key competitive differences for airports.”

Airports and airlines throughout Asia-Pacific are certainly taking advantage of new wireless and network capabilities to improve the passenger experience and airport operations.

With the opening of the new South Terminal at Tokyo Narita, Star Alliance deployed the largest self-service CUSS kiosk implementation in Asia-Pacific with over 200 kiosks in service. The next airport in Asia-Pacific to get CUSS ready check-in kiosks is Nagoya’s Central Japan International Airport.

While not yet offering terminal-wide free wireless internet service, Singapore Changi has taken to offering over 300 internet enabled PCs to travellers at no cost. Though this will not save you when you need to send those emails after an eight-hour flight from Sydney, Changi has implemented an iConnect area where passengers even have access to six Xbox consoles.

Wireless check-in, like that offered by SITA or ARINC, is an opportunity both to speed up passenger flow and improve airport efficiency made possible by wireless internet networks.

A spokesperson at Singapore Changi comments that the airport has used wireless check-in to improve “operational efficiency through wireless applications.”

Airports and passengers, however, are not the only winners from wireless internet networks as airlines are also beginning to reap significant cost saving benefits themselves.

Star Alliance’s debut of multi-user check-in kiosks at Tokyo Narita is just one example of airlines being able to reduce their check-in footprint and combine forces through the use of wireless technology.

And in India, Singapore Airlines started using a portable check-in system at five airports that formerly lacked CUSS-enabled technology. While there still may not be too many examples of the utlisation of such technology across the region, they do demonstrate the efficiency improvements airlines can make by using an airport’s wireless internet network.

As airports increasingly become aware of the benefits of airport-wide wireless internet access for passengers, airlines and airport operations, the move into the digital world will become ever more obvious as airports’ wireless systems come of age.

As Lai stated, wireless internet access is a must have for airports today, from the point of view of the passenger, airport and airline. "Wireless environments allow airports to deploy passenger processing equipment where they need it and greater conveniences and a smoother travel experience for passengers," says Pizzi.

In today’s wireless world, it is becoming increasingly clear that airports need to get with the programme. And while they probably don’t have to transform themselves into a surfer’s heaven, they do need to wise up to the benefits of WiFi and finally end the days of passengers searching for rogue signals outside airline lounges.

Asia-Pacific 2007 Issue 1

Peta Tomlinson reports on the creation of Australia’s first residential community built around a runway.

A man who once dreamed he could fly has become Australia’s most innovative airport developer. Passionate about aviation since boyhood, Jeffrey Ruddell ended up not only buying his own airport, but transforming it so that others too could live the dream.

And what better place for a visionary residential ‘airpark’ than one of the world’s natural wonders – the Great Barrier Reef.

Ruddell is the sole investor in the $65 million WAVE (Whitsunday Aviation Village Estate) project at Airlie Beach in tropical north Queensland, which is not surprising to those who know him. “I’ve always had a reputation for sticking my neck out,” admits the sugarcane farmer who was just 14 years old when he quit school to go and earn a living.

An airpark is a residential community built around a runway. The homes are usually designed to include an aircraft hangar. The concept is hugely popular in the US, where over 500 airparks have been developed, but Australian authorities have not been so keen. Despite grandiose proposals from various developers in various locations, WAVE is the only one yet to gain all the necessary government approvals.

And Ruddell is in little doubt that Australia’s first airpark will give the best in the US “a run for their money”.

“Through extensive research and working with expert engineers, we have designed an airpark that offers the ultimate lifestyle for those just as passionate about aviation as myself,” enthuses Ruddell. “Where else in the world can you stroll down the stairs of your architecturally designed tropical home, climb into your aircraft and within minutes reach famous island resorts and coral reefs?”

A Whitsunday local, Ruddell couldn’t wait to explore the Great Barrier Reef by air. By 16 he had obtained his private pilot’s licence, and nearly three decades later, his enthusiasm hasn’t paled.

“It’s just awesome to fly like a bird over this tremendous living thing that’s one of the world’s natural wonders. And it’s so spectacular,” he says. “Where else could you find 74 magic islands with the Great Barrier Reef on the doorstep?”

Though farming is his business – having bought the first in a series of cane farms when he was 28 – Ruddell had long flirted with the idea of owning an airfield. He “didn’t think it would come to anything”, but opportunity knocked when he went to his local Whitsunday Airport to see about doing some charter flights. The previous owner mentioned that the airport was for sale, prompting Ruddell to make what he maintains was the best move of his life.

Immediately he began growing the commercial precinct of the airport, investing $1.7 million in seven new buildings (including hangars) and related infrastructure. This allowed for the introduction of various new businesses including a flying school and helicopter sales, as well as expansion of existing businesses.

Tenants now include HeliBiz, Australia’s leading helicopter business selling 50 per year, and Air Whitsunday, with the largest fleet of sea planes in the southern hemisphere.



Ruddell admits that he had “heard about airparks”, but never seen one – and as a businessman he thought this could be the solution for the part of his 60-acre site that couldn’t be used for commercial aviation.

As part of his research, Ruddell visited over 50 airparks in the US and “incorporated the best bits of each” into his WAVE masterplan. And, as a pilot himself, he also knew what not to do – hence the decision to spend $3.4 million on a 15-metre wide sealed runway made of asphalt, not bitumen, for safer, quieter and smoother landings.

Each of the village’s 57 homes will have its own hangar with space for a rotary or fixed wing aircraft up to the size of a small jet. All are located on a dual taxi-way to eliminate the hassle of driving to the airport and finding parking.

It’s no coincidence that the architect tasked with designing the hangar homes is a pilot himself. Gary Hunt, like Ruddell, also understands the aviation culture and recognises how important it is for aircraft to be both secure and easily handled. He’s also the architect behind some of the Whitsundays’ most innovative developments, Peppers resorts and the new Port of Airlie marina precinct.

“Our design solution was a series of hangar homes uniquely tropical and reminiscent of traditional Queensland homes and values,” Hunt says. “The homes incorporate lots of shade and are designed to capture the sea breezes but are carefully thought out and user-friendly so the owner can safely hangar their aircraft.”

The village also has an eco-focus. Existing mature trees have been maintained and natural creeks enhanced, and noise minimised through double glazing, insulation and extensive landscape buffering. It’s a gated, self-sufficient community with its own supermarket, restaurants and shops.

Ruddell believes his decision to assemble the best planning and engineering teams possible played a key role in securing a permit for what he confidently says is Australia’s first purposebuilt airpark community (a few hangar homes do exist in rural areas, but these are add-ons to existing airfields).

And, there will be no more in the Whitsundays. WAVE’s permit allows only for 57 lots, and there is no scope for future airport development in the region.

WAVE’s approval came through in April, after three and a half years of planning and a significant investment. Ruddell withstood long periods of stress and offers from developers to buy his land, and was rewarded when a waiting list of buyers were quick to snap up many of the lots, which range from 1,000sqm to 1,400sqm and sell for $430,000-$780,000 (land only).

Owners can then either build their own designs within the covenant guidelines, or choose from four of Hunt’s designs.

Ruddell is a little coy when asked for details about buyers, admitting that most of his new neighbours are from other Australian states and “the kind of people who want a luxury holiday home with their plane or helicopter in the hangar and a boat in the marina.”

Being the creator of the village has entitled Ruddell to one very important perk – the right to select the best plot of land and home for himself. Well, you would, wouldn’t you?

Asia-Pacific Airports 2007 Issue 1

Victor Murray takes a closer look at the challenges ahead for Tokyo’s airport system.

Tokyo’s airports are doing all they can to keep pace with rising demand that has now soared to over 100 million passengers per annum.

The greater metropolitan area of Tokyo is home to 34 million people and boasts the fifth largest economy in the planet, but with space at a premium and the cost of building a new gateway almost prohibitive, it has relied on just two airports to meet demand.

And neither Narita International Airport – the country’s international gateway to the world, located about one hour outside of Tokyo – or downtown Haneda International Airport have disappointed.

Haneda, located around 20 minutes from the city centre, is essentially a domestic airport, although it handled all traffic into Tokyo until the 1978 opening of Narita.

The Japanese Government’s policy is to primarily assign domestic traffic to Haneda and international traffic to Narita.

The management format of the two is also very different. For while Narita is 100% owned and operated by Narita International Airport Corporation (NAA), the Ministry of Land, Infrastructure and Transport owns and operates the airfield facilities at Haneda and the Japan Airport Terminal Building Co Ltd (JATCO) operates its terminal buildings.

Narita is used by 57% of all passengers travelling abroad and handles 66% of international cargo shipments. This translated to over 190,000 flights, 35 million passengers and 2.2 million tonnes of cargo last year.

Narita Airport Authority took the first steps towards privatisation in April 2004 when it became Narita International Airport Corporation. It immediately set out on a vast range of improvements and introduced drastic cost cutting measures throughout its organisation.

In 2005, it significantly reduced landing fees through the adoption of an innovative noise index that favours quieter aircraft. The final step in the privatisation process will take place in the not too distant future when the government begins releasing its shares and the company is listed publicly.

CEO, Kosaburo Morinaka, was brought in from the private sector earlier this year to lead NAA through this final, crucial phase of the privatisation process.

Originally, Narita was to have two parallel runways and one crosswind runway. However, intense opposition to attempts to compulsory purchase the land needed for the project developed into a nationwide movement and forced the government to abandon the policy and enter into dialogue with the local community groups.

As a result, NAA has to hammer out an agreement with its neighbouring communities before any capacity enhancing airfield development can take place and, even today, there are land owners that will not sell up to make way for construction of the originally planned facilities.

The experience has certainly taught NAA that it has to focus on community relations and environmental strategies to win support for its capacity enhancing projects and guarantee the airport’s long-term future.

Until April 2002 when the 2,180m Runway B was eventually opened, Narita was limited to 135,000 slots a year. Local residents then agreed to an increase to a total of 200,000 slots for Runways A and B. And as a direct result of NAA’s far-reaching noise abatement measures and efforts toward building consensus in the community, a further 20,000 slots will be made available after the extension of Runway B to 2,500 metres in 2010.

The longer runway will allow aircraft to fly non-stop to more distant destinations on the US West Coast. Capacity development beyond that will depend mainly on building consensus with local residents and NAA’s ability to acquire the necessary properties.

Says Morinaka: “Although we will have greater airfield capacity in Tokyo with the completion of the extension to Runway B and the new runway at Haneda, ever increasing demand ensures that we are fast approaching our limits. We must, therefore, build more capacity at Narita. The Chiba region supports this need so we must look for ways to achieve this with the support and co-operation of all affected parties.”

If NAA does manage to persuade the landowners at the southern end of Runway B to sell up, it would be possible to further extend the runway to around 3,600 metres.

Retailing is now a major source of non-aeronautical revenue for the airport. In June 2006, NAA opened ‘narita nakamise’ in Terminal 1. The long, spacious mall is lined with shops from some of the most famous fashion names in the world. It has produced around $130 million in sales in its first year of operation. This is about 27% of the total commercial revenue generated in Terminal 1.

‘Narita 5th Avenue’ opened in Terminal 2 in April this year with a different design theme but featuring the same type of exclusive fashion shopping.



Indeed NAA is going all out to improve customer services with an extensive new range of facilities and services. The airport has just completed an innovative airline relocation programme following the $2.3 billion revamp of Terminal 1 South that has allowed the world’s biggest alliances to consolidate their operations in different terminals.

The British Airways-led oneworld alliance now occupies Terminal 2, Star Alliance the North Wing of Terminal 1 and SkyTeam the South Wing. The merry-go-round of airlines has enabled NAA to reduce the airport’s minimum connection times and made it easier for transit passengers to catch connecting flights.

Just after the opening of the longer Runway B in 2010, a new rail service will come on line. The Narita Rapid Railway will link Narita with downtown Tokyo in about 35 minutes, reaching speeds of up to 160 kilometres per hour during the 51km long trip.

Tokyo Haneda is Japan’s main domestic hub, busiest airport in Japan and the fourth busiest in the world.

Indeed, more passengers fly from Haneda to Chitose in the country’s north than on any other route in the world. Its three runways provide approximately 296,000 slots a year, and the airport is used by 63.5mppa.

Haneda maintained a small number of international services after Narita opened, but has been used principally for domestic services ever since. Its few international flights include a shuttle service to Seoul-Gimpo and a number of charter flights in the late night/early morning periods.

Haneda’s response to the upturn in traffic over the last decade has been to build a third runway and a new terminal building, which opened in February 2006.

The new Terminal 2 is now occupied principally by All Nippon Airways and has taken a great burden off the original Terminal 1.

With the pressure to provide more capacity for international travel in the greater metropolitan area of Tokyo, the Japanese Government has looked at a number of expansion options that include the possibility of a third airport located offshore.

However, with large-scale expansion and modification projects already underway at Haneda, the government has decided that further expansion at the gateway is its preferred “mid-term alternative” to a third airport.

A fourth runway, currently under construction offshore at a cost of $6 billion, is the core project of the gateway’s $8.1 billion expansion programme. The runway – which will raise Haneda’s capacity from the current 296,000 air traffic movements a year to in excess of 400,000 – is expected to open in 2010.

The government had wanted it up and running by 2009, but in a country where space is at a premium and expansion projects are almost always opposed, the opening date has since slipped a year. The opposition this time is being provided by the fishing and shipping industries because of the runway’s proximity to fishing grounds and major shipping lanes in Tokyo Bay.

A new passenger terminal, cargo complex and additional apron will also be constructed under a PFI (private finance initiative) arrangement as part of Haneda’s development programme.

Up to 30,000 extra slots made available by the new runway will be allocated for short-haul international services, which may pave the way for certain flights to switch from Tokyo Narita. The possible swap allowing Narita to accommodate more long-haul services.

Eventually, of course, demand will outstrip supply in the Tokyo metropolitan region and a decision will need to be made on a third airport.

Seven of the candidate sites are located offshore in Tokyo Bay and the eighth site is off the Chiba coastline in the Pacific Ocean.

In addition, Tokyo governor, Shintaro Ishihara, is pushing the idea of sharing the US Air Force Base at Yokota for use by commercial aircraft. The government is in the process of studying the feasibility of this proposal as well as another for the commercial use of Hyakuri Airport, a military airport located further north of Narita.

Whatever happens, operational efficiency at Tokyo’s existing gateways will certainly be boosted by the fact the US military is due to hand back much of the airspace surrounding the city in September 2008.

The decision effectively means that commercial flights will no longer have to detour around the Yokota radar approach control area – which covers Tokyo and the surrounding prefectures – to reach Narita and Haneda. More direct routes, of course, means reduced flight times and operating costs. It is also expected to dramatically ease air traffic congestion in Tokyo’s skies.

All the talk right now might be about a possible future new $35 billion gateway in Tokyo Bay, but write Haneda and Narita off at your peril. Both airports are ambitious, fiercely determined to succeed and here to stay.

Asia-Pacific Airports 2007 Issue 1

With close to $30 billion being spent on new gateways and improvement projects, the Gulf region is the hottest place on earth for airport development, writes Mark Chivers.

It says something for the dynamism of the Gulf and Middle East region when July’s near 20% rise in passenger traffic raises few eyebrows. It took the growth rate for the first seven months of 2007 to 16.8%, way above global norms, and follows on from the success of last year when traffic across the region soared by 8.6%.

Muscat (+26%), Bahrain (+20%) and Dubai (+16%) led the way in terms of showing the strongest growth in 2006 – Dubai International Airport handling a record 28.7 million passengers. No surprise then that airport expansion in the region is nothing short of staggering. Indeed some observers see the scale of development as a harbinger of overcapacity, but Peter Harbison, managing director of the Centre for Asia-Pacific Aviation (CAPA) disagrees.

A report recently issued by CAPA suggests the fundamentals of the aviation industry are changing. It points out that the Gulf’s excellent geographical position is being enhanced by liberalisation efforts – allowing what were once intermediate or technical stops to become primary international hubs – and new long-haul aircraft, facilitating non-stop service to and from just about anywhere.

“Together these features should help the region’s major airlines and airports to be at the forefront of the next-generation aviation evolution,” says Harbison. “In this environment, growth rates can be achieved at levels which were previously impossible.” If there is one location in the Middle East that’s influencing the balance of global aviation, it has to be Dubai. There are three elements to the Emirate’s airport development programme – expansion at the existing Dubai International Airport (DXB), a new cargo mega-terminal and construction of a brand new gateway (Dubai World Central) at Jebel Ali.

DXB is building Terminal 3 and Concourses 2 and 3 for the exclusive use of home carrier, Emirates. The airline will expand its 108 aircraft to 180 over the coming years, 55 of which will be the massive A380. Expansion at DXB will mean a near tripling of its passenger capacity to 70mppa. The new 1.4 million tonne per annum capacity cargo facility will double the airport’s freight handling capability.

It all sounds highly impressive until you view the plans for Dubai’s new airport. JXB – Dubai World Central International Airport – is part of its $33 billion, 140 square kilometre ‘airport city’ project that also includes Logistics City, Commercial City, Residential City, Aviation City and Golf City.

Situated near Jebel Ali, some 40km from DXB, the new $8.1 billion gateway will partially open in 2008 to serve cargo flights. On final completion in 2017, it will feature six parallel runways, have capacity for 120-150mppa and be capable of handling some 12 million tonnes of cargo.

“Considering that investments in tourism, hospitality, leisure and entertainment projects under construction in Dubai exceed $365 billion, the number of visitors here will rise dramatically over the next few years,” says HH Sheikh Ahmed bin Saeed Al Maktoum, president of Dubai Department of Civil Aviation and Chairman and CEO of Emirates. “Our multi-billion dollar investments in the aviation sector are in line with this projected growth.”

Just down the road, Abu Dhabi, is also preparing for a future as an international hub. Home to rapidly expanding Etihad Airways, it has a $6.8 billion development programme planned. Terminal 3 will come online in 2008 and will enable the airport to meet traffic increases until the new midfield terminal opens in 2010. On final completion, its capacity will be 40mppa.



Work also includes a second, 4,200m runway and a new air traffic control complex, both of which will be operational in 2008. A new cargo terminal, complete with a seven million square metre free trade zone, will be ready in 2010.

The recently formed Abu Dhabi Airports Company (ADAC) – what many believe is the government’s first step in an airport privatisation strategy – is being advised by Changi Airports International (CAI) on all developments. CAI will also review work undertaken by ADAC’s other contractors.

Says CAI CEO, Chow Kok Fong: “Our clients are very clear in their intentions. They know that Changi is one of the few mega-airports in the world that has been developed very close to a proper Masterplan. Our approach to airport planning is well known – it is disciplined, yet flexible and sensitive to the evolving dynamic of the industry.”

While Abu Dhabi is home to one of the largest oil reserves on the planet, Qatar is set to become the world’s biggest supplier of liquified natural gas (LNG). And the wealth generated by its oil and gas reserves has allowed it to commence the construction of a new $5.5 billion gateway.

Situated some four kilometres east of the existing gateway and with 50% of its 2,200-hectare site reclaimed from the Arabian Gulf, New Doha International Airport is designed with A380 operations in mind.

Phase 1 of the project will finish in 2009, providing an initial 12mppa capacity. Both runways will be operational and the 24 gates will include two specifically designed for A380 operations. There will be a 750,000 tonnes per annum capacity cargo terminal, a free trade zone and a business park. Some 25,000sqm will be devoted to retail space, lounges, and parking facilities.

Phase 2 was scheduled for 2012 but is now being brought forward and is expected to finish late in 2009. This includes a terminal expansion and 16 more gates. When fully completed in 2015 it will be have 80 gates and be equipped to accommodate up to 50mppa.

Elsewhere in the region, the Government of Oman has announced plans to construct three new airports at Ras Al Hadd, Duqm and Sohar and awarded National Engineering Services of Pakistan and Aéroports de Paris (ADP) subsidiary, ADPi, a contract to provide project management consultancy services for the expansion of Seeb and Salalah airports.

Seeb will be developed to handle some 12 million passengers by 2010, with a vision for a 48mppa facility at some future point. This might sound like a severe case of overcapacity, but the Sultanate has big plans to develop the route network of newly nationalised carrier, Oman Air.

The airline recently announced plans to serve London Gatwick and will lease three A330-200 aircraft in 2008 and a further two in 2009 to reach destinations such as Bangkok and Beijing. Around 11 long-haul destinations are on the cards along with a strengthening of regional routes.

Oman Air’s expansion effort and the government’s dedication to improving the country’s gateways will determine the future success of Omani aviation.

Manama’s Bahrain International Airport is also committed to upgrading its facilities, although the need for greater capacity has eased in recent years following Gulf Air’s decision to scale back services at its home base to cut costs.

The Government of Bahrain has pledged to increase the gateway’s capacity to 15mppa by 2015, with further shifts to 22mppa and 25mppa happening by 2020 and 2050 respectively. The performance of national flag carrier, Gulf Air, will ultimately decide the timings, but with increased government investment in the airline and strong support for the tourism sector, things are definitely on the up.



It is also thought that AirAsia X – the long-haul version of Malaysia’s low-cost carrier – may use Bahrain as a Middle Eastern hub.

In Saudi Arabia, Jeddah International Airport will benefit from a $1.5 billion project to increase capacity from the current 13mppa to 30mppa by 2011, with two subsequent phases enlarging throughput to 60mppa and then 80mppa.

The country is also planning a fourth international airport to support Riyadh-King Khalid, Dammam-King Fahd and Jeddah-King Abdulaziz. It is expected to provide the foundation for the planned King Abdullah Economic City in Rabigh, north of Jeddah.

Saudi Arabia has been drifting towards privatisation in recent years and has licensed two new LCCs – Sama and Nasair. CAPA believes these will thrive as Saudi Arabia is one of the most promising countries for LCC growth due to the long distances between cities and the largest population in the Gulf (27 million residents).

Neighbour Kuwait is already witnessing the benefits of the LCC phenomenon, with Jazeera Airways having started up a number of regional routes. Growth at the airport is averaging 12-17% annually and the airport’s Masterplan, essentially a five-year rolling programme of inter-related projects, is on track.

The next five years will see a number of airfield improvements brought online, such as the lengthening of runways and taxiway upgrades to handle A380 operations, as well as a second state-of the-art passenger terminal at Kuwait International Airport.

The 90,000sqm structure with 30 gates will enable the gateway to handle 20mppa. A third runway, further expansion of the new terminal and a new cargo city are also envisaged. Ultimate build-out of the facility will give it a capacity of 55mppa.

As the respective airport development plans show, the Gulf region’s gateways are certainly confident of the future. And their optimism appears to be shared by both ACI and ICAO, the former predicting an average yearly increase in passenger traffic of 4.5% across the whole of the Middle East until 2025.

It seems that whatever convention holds about aviation growth, the Middle East is breaking free. The air traffic increases are likely to be as breathtaking as the infrastructure that supports them.

Asia-Pacific Airports 2007 Issue 1

Kevin Rozario reports on Vancouver’s vision to become one of the world’s leading gateways.

Summer 2007 marked the 15th anniversary of the creation of Vancouver International Airport Authority, a community based not-for-profit organisation entrusted to enhance the fortunes of Canada’s second busiest airport.

 

In that time Vancouver International Airport (YVR) has grown from a cramped and infrastructure-constrained airport to one of Canada’s most modern gateways, with a newly extended international terminal and ample capacity that will mean another runway is not likely to be needed until 2025.

 

Fifteen years ago the vision was to make Vancouver a premier global gateway, and that remains very much the ambition today, although airport CEO, Larry Berg, concedes that the task won’t be easy.

 

For despite the introduction of Canada’s “breakthrough” Blue Sky air policy – which allows market conditions instead of regulators to dictate which cities airlines can serve as well as the frequency and routing – he is somewhat critical of the government’s negotiating choices to date.

 

“Eliminating old restrictions is critical to this airport’s future, but negotiating choices to date such as Serbia, Croatia, Jordan and the Dominican Republic which will not help us build Canada’s Pacific gateway,” explains Berg.

 

Berg’s preference is for deals with Singapore, Taiwan, the Philippines, South Korea and Malaysia because they are all in “expansion mode”, but remain unserved from Vancouver because of the lack of an air agreement.

 

The gateway theme underpins much of the policy and planning at Vancouver International Airport Authority (VIAA), and Berg insists that liberal aviation agreements are the best way forward. “Air carriers only have so many aircraft – if they can’t use them on a Vancouver route they’ll deploy them elsewhere,” citing Air France’s recent decision for a new Paris CDG-Seattle service as a prime example of how YVR is losing out.

 

On the ground, the Sea Island located airport has also been laying the foundations for better transport inter-modality. By autumn 2009, the much-heralded Skytrain rapid transit system section linking YVR to downtown Vancouver will be ready. Its timing a year ahead of the 2010 Winter Olympics appears perfectly planned, although Berg insists that this is purely coincidence.

 

He says: “Discussions for the project started a decade ago as part of the infrastructure requirement Vancouver set out in its plans to be an Asian gateway.” The success of the city’s Olympic bid no doubt eased the approvals process.

 

The service will be paid for by the federal and provincial governments, local transport authority and VIAA, which according to Berg, is responsible for the spur to the airport. The link will include three stops for the cargo area, car park and terminals.

 

“The project is on time and on budget,” enthuses Berg. “We expect it will be a heavily used line and a critical link to the local community.”

He also believes that the new transport link will take the hub another step forward in its bid to become an potential ‘airport city’ of the future. “The rail service will make us more multi-modal,” says Berg.

The airport CEO does, however, realise that as a port city, much of Vancouver’s cargo will still be transported by sea. Nevertheless, with a workforce of 26,000 and generating $7 billion annually in economic activity, Berg claims that YVR is “generating growth and reaching a critical mass at which the boundaries of the airport and surroundings are starting to blur”.

In terms of revenue generation, the airport is particularly proud of the performance of its retail and F&B offering. Indeed, YVR’s completely revamped international departures area shows how this income earner is being fined-tuned – to Asian tastes in particular.

Following a change of retail concessionaire from Switzerland’s Nuance Group to Spain’s Aldeasa, a complex of more than a dozen new shops covering around 4,000sqm, have been opened since early summer, with many luxury boutiques such as Bulgari, Burberry, Cartier, Escada, Hermès Lulu Guinness and Montblanc now in place to appeal to highspending, brand-conscious Asian travellers.

The shopping represents just a fraction of the 36,000sqm expansion of the international terminal, which opened this summer. The $200 million project, the cornerstone of the VIAA’s $1 billion construction programme, is the airport’s largest expansion in more than 10 years.

Four new gates in this area opened in March and it also has 2,200 seats, 400 metres of moving walkways and 27 plasma signs that switch between multiple languages.

Berg insists that being closer to China, in terms of distance, compared to west coast competitors such as Los Angeles (LAX) or San Francisco (SFO), will be a major benefit when expanding in this major growth market.

“We are two hours closer to Beijing and, with the fuel price situation, we are the best choice for airlines,” insists Berg.

At the moment the three west coast hubs of SFO, LAX and YVR equally share seat capacity to China (including Hong Kong) at roughly one third each. But YVR has more departures at around 65 direct weekly flights to China and Kong Kong (split almost 50:50) compared to LAX’s approximately 40 services.

A problem for YVR is that, while services to China are on the increase, the whole Pacific gateway concept is being over-shadowed with the arrival of longer range aircraft and more polar routes giving many US airports direct services to Beijing and Shanghai.

Last year, in fact, Asian traffic fell at Vancouver, in part thanks to new direct services to the region from Toronto, while SFO overtook YVR to take second place for the west coast’s share of international traffic. And when Seattle opens a third runway next year, competitive pressure on Pacific routes will intensify.

In the circumstances, Berg says that YVR may have to settle for being a niche gateway to secondary Chinese cities such as Chengdu, Shenyang, Wuhan, Xi’an and Tianjin, although even the smallest of these has a population of more than seven million people.

In the airport’s favour is the expansion of the Transit Without Visa Program, which has allowed nationals from Indonesia, the Philippines, Taiwan and Thailand to transit through YVR to the US without a Canadian visa.

A further pilot now allows transferring Chinese passengers the same benefits, putting YVR on a more level playing field with LAX and SFO and making economically borderline services such as Guangzhou-Vancouver-New York a viable daily proposition. “We need to make the border as seamless as possible,” says Berg.

In this regard another pilot called E-Pil (electronic primary inspection line) starts this autumn which allows arriving Canadian passengers from international destinations to complete border formalities at a self service kiosk and selfscan their passports to shorten processing time.

So what of future infrastructure development at the airport? YVR’s 20-year Masterplan includes plans for two parallel runways, a new north-south taxiway and expansion of the terminal, with work on the latter project possibly starting in 2017.

In typical understated Canadian fashion, VIAA appears to have everything under control and, with the addition of a few more international routes and the possible wooing of Asian traffic away from SFO and LAX, things would be almost perfect. In the circumstances then, its 15-year report card should probably read, ‘On the right course – A minus’.

Asia-Pacific Airports 2007 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