Regional rebound

After several crises affecting air travel worldwide, Asia Pacific's aviation industry is booming. For the CEI sector, opportunities abound Kenny Coyle reports

Figures show that the Asia Pacific region is experiencing a growth in air travel many times that of the global average. Airline deregulation, huge investment in airport infrastructure and a growing middle class are all fuelling regional air travel. For event planners, air travel is a key component of ensuring a smooth, punctual and cost-effective meeting or incentive programme and keeping track of new routes, new airlines and new airports at destinations is increasingly daunting. According to figures from travel information specialist OAG, airlines provided 9 per cent more services to, from and within the Asia Pacific region in January 2006 compared with the same month last year. This is in contrast to a worldwide growth in services of 2 per cent and four per cent growth in seats, according to OAG. Not surprisingly, China leads the pack, with 3,200 extra scheduled services to and from the country, up 11 per cent on last year, and a 22 per cent leap in domestic services on the mainland, with 21,700 additional services. Over the past couple of years one of the major factors transforming Asia Pacific travel has been the emergence of low-cost carriers (LCC). Although many event organisers are still reluctant to commit themselves to using LCCs, preferring the higher quality of service and more regular schedules of the established carriers, this may change. LCCs in Europe were instrumental in opening up a number of new destinations, especially in Eastern and Central Europe. The potential to do develop routes to small islands and off-the-beaten-track destinations in places such as the Mekong Delta, provincial China and India is enormous and incentive planners are forever seeking out new fresh, unexplored destinations. The LCCs, whatever their other limitations, may prove to be pioneers in this regard. Certainly the figures are phenomenal. LCCs are operating 27 per cent more services within Asia this year compared with last with just over 7,000 services. China China's airline passenger volume is expected to rise 15 percent to just under 160 million, following 33 percent and 20 percent growth in 2004 and 2005 respectively. Already, massive capacity augmentation projects are underway in Beijing, Tianjin, Shanghai, Guangzhou and other key cities. The CAAC has also foreshadowed development and upgrades of key inland hubs at Urumqi, Chengdu and Xi'an in 2006. Shanghai Hongqiao Airport announced plans to undertake an expansion project, including the construction of a new terminal and runway by 2010, subject to CAAC approval. Shanghai Pudong Airport is currently development of a new terminal with capacity for 40 million passengers annually. Hong Kong Airport Authority Hong Kong (AA) has earmarked US$4.5 billion for enhancement projects at Hong Kong International Airport (HKIA) until 2010. Transfer desks and immigration counters at arrivals level will be increased from 44 to 70 and from 125 to 147 respectively. Security channels at both arrivals level and departures level will also be increased from nine to 15 and 16 to 22 respectively. Five new parking stands tailored for low fare carriers and other carriers that require quick turnaround are under construction and will be ready for operation in April. These enhancement projects will tie in with the development of the SkyCity project comprising SkyPlaza, AsiaWorld-Expo, a fourstar hotel, a golf course and a cross boundary ferry pier. India The Indian government has agreed to bring in an international consortium headed by Fraport to handle a 30-year contract to modernise, expand and operate Delhi Airport. Leela Group, a Mumbai-based hospitality firm, announced plans to construct a new international airport in Kannur, Kerala State. Indonesia Singapore Airlines, Lufthansa, KLM Royal Dutch Airlines and Thai Airways International Airlines expressed interest in forming a strategic partnership with PT Garuda Indonesia, which may include injecting funds into the carrier. Garuda has also announced plans to set up its own low-cost carrier brand. Japan Located on man-made Kobe Port Island, the new Kobe Airport is scheduled to open for business on February 16,2006. In March Kitakyushu Airport opens in northeast Kyushu, southernmost of the four main islands of Japan. Malaysia Malaysia's low-cost aviation hub will begin business early in March. Malaysia's government hopes the new facility will help turn Kuala Lumpur International Airport (KLIA) into a regional aviation hub. Construction of the terminal for low-cost airlines began last June. The terminal can handle 4,000 passengers an hour. Its 30 aircraft parking bays and 72 check-in counters would be fully operational by the launch date. Philippines Philippine Airlines (PAL) is undergoing a major fleet modernisation programme by ordering nine Airbuses and leasing a further two. Meanwhile, Manila's third international terminal, completed some years ago, still remains idle. Adispute between the Philippines government and Fraport the German firm involved in its construction has kept the state-of-the-art terminal closed. Thailand Thailand's newest facility Suvarnabhumi Airport is a US$4billion investment. Much delayed, the airport is due to open in the middle of this year but skeptics abound. When the facility does open it will be able to handle around 45 million passengers annually and on completion of the final phase up to 100 million. the 563,000sqm terminal building will be the largest single building in the world. the complex will also include a 600- room hotel. Avastly increased number of customs and immigration/emigration counters is aimed to drastically cut waiting times as will the modern baggage-handling system. Vietnam The Civil Aviation Administration of Vietnam is planning a number of developments. Hanoi Noi Bai International Airport will have a second terminal constructed to boost capacity; Ho Chi Minh City's Tan Son Nhat International Airport will complete an extensive upgrade by the end of 2006; Long Thanh Airport in Dong Nai Province is being expanded to handled up to 15 million passengers per year.