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Bsab 450 assignment 9.2
- 1. Hong Kong International Airport Done by : Cornelius Kang
- 2. Overview One of Asia’s busiest airports Connecting to over 220 countries Handling 74.7 million passengers in 2018 Over 230 retail shops and 60 restaurants (Facts & Figures n.d.)
- 3. Environmental (Political) February 2019, Extradition laws allowing extradition to mainland China Evolution of protest Caused significant reduction in tourism Airport was forced to cancel flights Cripples airport infrastructure Has affected states general stability (Ramzy 2019)
- 4. Environmental (Economic) Greater Bay Area, a megalopolis consist of surrounding cities like Guangdong, Hong Kong, Macau and Shenzhen Part of the 5 year plan for Economic and Social Development for China Improvement of infrastructure within the cities and to increase connectivity Taps on Mainland China’s growing resources to gain collective economic growth (HKTDC 2019)
- 5. Environmental (Social) Launch of EXTRA MILE project Platform for communal investment for local talent Provides initiatives and solutions for HKIA Launch of 2 week wellness programme. Annual summer internship (Airport Authority Hong Kong 2018).
- 6. Environmental (Technical) Extend its runway operations by building a third runway Expansion of Terminal 2 to support increasing passengers Installation of 2 new 5.2km aviation fuel pipelines Automated People Mover system (Airport Authority Hong Kong 2018).
- 7. Environmental (Environmental) Operational guideline to reduce carbon footprint In accordance to ISO14001 Use of monitoring programme Performance based contract for waste management (Airport Authority Hong Kong 2018).
- 8. Customer Segmentation HKIA as international airport and also a regional domestic hub 71% used HKIA as start or end point of their journey 29% used HKIA as a transiting terminal Biggest market segmented are SEA & Mainland China (Dynamics of connectivity 2019).
- 9. Customer Segmentation HKIA predominantly catered for business High volume of legacy carriers compared to LCC
- 10. 7Ps (Price) Competitive pricing Tax reduction Special incentive tax Parking rates Premium pricing
- 11. 7Ps (Product) To extend services beyond ground and in flight products Offering of service related products Application of e-commerce product
- 12. 7Ps (Place) Helicopter services Building of infrastructure Priority lane access
- 13. 7Ps (People) Customer satisfaction Quality training Personalized service
- 14. 7Ps (Process) Introduction of automation to improve processes RFID tagging Baggage collection service
- 15. 7Ps (Physical Evidence) Cleanliness Upgrading of furnishing every 5 years Art theme
- 16. 7Ps (Promotion) Building of alliances Use of celebrities to promote airport Public Relations
- 17. Reference AIRPORT AUTHORITY HONG KONG - ANNUAL REPORT 2018/19. (n.d.). Retrieved from https://www.hongkongairport.com/iwov-resources/file/airport- authority/publications/annual-and-interim-reports/en/18_19/flipping/index.html. ASIA’S HUBS – Dynamics of Connectivity. (2019). Retrieved from https://www.oag.com/hubfs/Free_Reports/Asias Hubs Dynamics of Connectivity/Asias- Biggest-Airport-Report.pdf. Facts and Figures, HKIA at a Glance. (n.d.). Retrieved from https://www.hongkongairport.com/en/the-airport/hkia-at-a-glance/fact-figures.page. Ramzy, A., & Mullany, G. (2019, August 12). Over 150 Flights Canceled as Hong Kong Airport Is Flooded by Protesters. Retrieved from https://www.nytimes.com/2019/08/12/world/asia/hong-kong-airport-protest- cancellations.html.
Editor's Notes
- 2 runways Guangzhou 69.8 Shanghai pudong 74.0 Shenzhen 49.35 Singapore 65.6
- -Protest started as protest to extradition bill, progressively became protest for HK to fight for democracy rights - Peaceful protest to violent looting, clashes with police, violence like gun shots, assault and arsony and even an attack on hk parliament to date has note been resolved Airport closed on 14 august Passenger revenue for month of august was significantly reduced by 12.5% -This also destabilizes the political stability in the country and creates high trade barriers as a result of a loss of investor confidence.
- -may also serve as a double edge sword in respect to emerging competition that may take away Hong Kong International Airport’s market share in terms of passenger revenue and investor relations -One example is Guangzhou’s Baiyan International Airport recording one of the fastest rising passenger numbers in the region sitting at 13th busiest airport internationally. This is especially prominent because a new terminal was only opened last year with calls for further expansion in the runways to support its growing operations, a stark warning sign to Hong Kong’s strong foothold in the region’s market share.
- -This creates a job placement programme within the community for youth and non-Chinses speakers and to also allow the community in Hong Kong to experience on-job-training within the airport to acquire practical skills -1700 participants in a health and fitness initiative to promote healthy living within the airport community - Furthermore, the annual summer internship offered by HKIA also engages the younger talents within the community by sparking their interest in aviation through a customized on-the-training that transcends the experience of classroom learning
- Costing 141.5 billion HK$, this project increases HKIA capacity to serve 100 million passengers and 9 million ton worth of cargo A new passenger concourse with more than 280,000 square metres of floor area, with over 100 parking stands including 62 frontal and 43 remote stands and an apron will be built to support the new runway new concourse are targeted to serve an addition of 30 million passengers annually, providing arrivals, departures and full-fledged passenger services. receives fuel from a fuel farm house in Sha Cha will be installed, reduces the reliance of bowser and increases the efficiency of operations Automated People Mover system to support baggage handling operations will be installed to create a higher level of automation when transporting and supporting luggage operations Both the pipeline and mover system is the move for the airport to increase autonomy and increase airport efficiency. This cuts labour cost and increases airport capacity to handle more volume
- -ISO 14001 is the international standard that specifies requirements for an effective environmental management system (EMS). It provides a framework that an organization can follow, rather than establishing environmental performance requirements. -monitoring programme ensures airport with better visibility in how business partners comply with environmental requirements in contract and agreements, and drives additional improvements -the airport also looks to manage its waste materials by introducing a performance based contract for main waste management contractors, this is to ensure all materials are fully utilised to its maximum ability with the incorporation of reuse, recycle and reduce
- Make sense for Greater bay area to be established as HKIA is then able to target passengers who would spend more time on ground in the airport, with the greater bay area offering a more extensive range of retail option for such passengers to spend on retail therapy. This explains the higher emphasis on the airport to invest more on retail outlets than on rest amenity infrastructure that may appeal more to transit passengers. Make sense for HKIA to buy into the greater bay area plan, so as to strengthen the network link between HKIA and mainland china to bring in more passenger revenue. That being said, the improved road and railway infrastructure may offer low cost passengers an additional option away from air travel that may not work in favour to HKIA
- The high percentage of legacy carrier traffic in HKIA in the form of Cathay pacific provides inference that HKIA predominantly caters for business travelers with 66% of traffic dominated by Cathay Pacific which explains why the facilities within the airport and the charges within the airport remains relatively high due to the price inelasticity of such passenger the airport attracts. As such LCC like HK airlines and cathay dragon comprise of 34% of the market share
- Maintain competitive pricing of Airport Tax and parking fees for aircraft to encourage airlines to operate within HKIA Reduction of service and government service tax within airport to encourage spending Special tax incentives for mainland china since they make up the bulk of passengers Ensure affordable parking rates in view of the new terminal 2 extension to attract retail consumers Premium pricing for business traveler products to ensure business travelers experience and alleviated status based on affordability
- Traditional involve ground service like retail options and restaurant options To recommend going beyond the sterotype and offering movie option in transit area for transiting passengers Childcare services and transit hotels that charge by the hour for Cross fit or Spin class services e-commerce products Airport serving as a collection point
- Place Building of 3rd runway and extension of terminal 2 Introduction of helicopter service at location for affluent travelers for more expeditious travelling option Building of additional highways connecting to the city to reduce congestion Priority lane for business travelers , using limousine service.
- Employee to customer satisfaction through service quality, this is achieved by exceeding customers expectation by producing quality service through active engagements Accomplished through proper training Creation of loyalty through quality service and problem solving initiatives Focus on building personal relationship with repeat passenger This is done through profiling various passengers and catering specific service and recommendation through a registered database for employees to access when dealing with high profile passengers
- Self check in baggage service to reduce labour cost and increase autonomy Introduction of RFID tagging to luggages to increase operational efficiency and expedite process. Baggage collection service extended to premium passengers, where luggages are collected at hotels and tagged to passenger , security check for luggages will be automated and accomplished by designated baggage handlers
- Cleanliness forms the most immediate impression when it comes to customer satisfaction levels, it is therefore imperative that the cleanliness of the airport is placed of a high priority The upgrading of furnishing within the airport every 5 years ensures that the airport’s physical environment is kept up to date and modern. The application of art works to be incorporated into the airport surrounding allows an added theme to the airport and also promotes local artist works
- Building of alliances with hotel, taxi or limousine services, car rental services that would buy into the greater bay area network, this creates monopoly within the region. Any foreign participating member that would like to enter the network will be obligated to pay a participation fee. Additionally, such alliances would offer passengers additional services with a reduced bundle rate Use of celebrities to promote airport, and use of mainland and china superstars to gain publicity and reach out to mainland china market
- Shenzhen using innovative technology