ACI Asia-Pacific & Middle East’s manager for communications and brand marketing, Yuman Lau, provides the quarterly news round-up.
KEY COMMERCIAL INSIGHTS AT THE TRINITY FORUM 2024
ACI Asia-Pacific & Middle East’s director general, Stefano Baronci, unveiled a number of key insights from our latest survey on non-aeronautical revenues at The Trinity Forum 2024.
He pointed at uneven traffic recovery, with growth in some markets over 10% above 2019 levels. Commercial revenues have outpaced 2019 but remain 10% to 30% below pre-pandemic for 48% of airports. F&B leads revenue growth, up 20%, while luxury lags.
He also reminded delegates about the importance of international passengers, who spend 200% more than domestic passengers at airport shops and restaurants.
SECURITY IN THE SPOTLIGHT
Human factors in security screening, the adoption of smart technology at security checkpoints, liquid screening, emergency exercises, and cargo security were the central topics of discussion at the recent ACI APAC & MID Regional Aviation Security Committee (RASC) meeting in Da Nang, Vietnam.
The two-day meeting saw a record participation of 65 security experts from across the region, underscoring the critical importance of aviation security. These sessions highlighted the evolving challenges in aviation security and the innovative approaches airports are implementing to enhance safety and efficiency.
A significant portion of the meeting focused on the concept of security-by-design, emphasising the importance of integrating security considerations during the design phase of new airport infrastructure to save unnecessary costs and improve operational efficiency. The committee will consolidate the discussion points into a reference document for the benefit of all members.
PILOT OF NET ZERO ROADMAP
ACI APAC & MID has formulated a new programme, Net Zero Roadmap, to help airports reach their net zero goals.
The Net Zero Roadmap is an on-demand service which complements the Airport Carbon Accreditation programme, and is designed to to help airports create structured plans, including carbon footprint projections, governance frameworks, and recommendations across areas like assets, fuels, and operations.
Seen as crucial to our efforts to assist airports in the Asia-Pacific and Middle East regions in developing comprehensive roadmaps to achieve net-zero emissions, the programme also offers guidance on CAPEX planning, implementation strategies, and offsetting measures,
while connecting airports with global financial institutions for potential funding. In line with this, ACI APAC & MID has signed agreements with Mactan-Cebu International Airport (MCIA) and Riyadh Airports Company to run a pilot of the programme.
KUWAIT HOSTS 5th ICAO MIDDLE EAST SAFETY SUMMIT
ACI APAC & MID was honoured to participate at the 5th International Civil Aviation Organization Middle East Safety Summit 2024 in Kuwait.
Hosted by the Directorate General of Civil Aviation (DGCA) of Kuwait, we were represented by environment manager, Adeeb Mobaraki, who addressed the challenges and experiences involved in establishing and implementing Aerodrome SMS and Aerodrome Certification, and Runway Safety Team Implementation.
SAVE THE DATE FOR OUR FLAGSHIP EVENT OF 2025
ACI Asia-Pacific & Middle East Regional Assembly, Conference and Exhibition
Mark your diaries, next year’s ACI Asia-Pacific & Middle East Regional Assembly, Conference and Exhibition will take place in New Delhi, India, on 15-17 April 2025.
Hosted by Delhi Airport, the event would be a great opportunity for you to meet the global aviation leaders, experts, and stakeholders.
A HOLISTIC APPROACH TO AIRPORT CHARGES IS CRITICAL
At the recent ICAO Workshop on Airports and Air Navigation Services Charges in Qatar, ACI APAC & MID called for more effective economic regulation strategies to enable socio-economic growth, sustain operational excellence, and meet future capacity needs while maintaining a sustainable, competitive aviation ecosystem. The Civil Aviation Authority of Qatar hosted the event.
AVIATION’S CHALLENGES OUTLINED AT TAOYUAN AIRPORT FORUM
At the 2024 Taoyuan Airport Forum in Chinese Taipei, DG, Stefano Baronci, shared insights on the evolving aviation landscape in Asia-Pacific.
Drawing on trends from the past two decades, he likened passenger traffic trends to The Great Wave of Kanagawa.
Despite a global decline in inflation, he said the aviation industry faces growing risks, including geopolitical tensions, strict monetary policies, and economic slowdowns.
SAF ON THE AGENDA AT CHINESE TAIPEI FORUM
ACI Asia-Pacific & Middle East’s head of sustainability, Ken Lau, was also in Chinese Taipei for the Taoyuan Airport Forum, using his time on the podium to speak about how airports from the region could support and facilitate the transition to Sustainable Aviation Fuel (SAF).
He provided glimpses into the findings of our survey on environment and an overview of ACI’s environmental programme to help airports become climate resilient and achieve net zero goals.
CONCERN OVER HIGH AIRFARES
The topic of rising airfares was one of the focal points of discussions among airport leaders during the Board Meeting of the ACI APAC & MID, hosted by Cambodia Airports, in Phnom Penh.
While international air traffic is rebounding, with seat capacity expected to surpass pre-pandemic levels by the end of the year, airfares remain more than 10% higher in several markets.
Several markets experienced significant airfare increases. The study showed a sharp rise in domestic airfares during the first half of 2024 compared to 2019 levels. Notable increases were seen in key domestic markets such as India (+43%), Vietnam (+63%), Malaysia (+36%), Thailand (+26%), and Australia (+21%), all of which heavily rely on domestic air travel.
In the Middle East, traffic volumes had surpassed pre-pandemic levels in most countries by Q2 2024. Countries such as Bahrain (+24%), Qatar (+27%), Saudi Arabia (+30%), and the United Arab Emirates (+39%) have experienced robust traffic growth. However, despite this recovery, international airfares in some countries remain elevated. In the UAE, fares increased by 22%, while Oman saw a rise of 10%.
NEW LEADERSHIP FOR ACI APAC & MID REGIONAL BOARD
A well-known face in the industry, SGK Kishore, executive director and chief innovation officer of the GMR Group, will become the new president of ACI Asia-Pacific & Middle East on January 1, 2025.
Kishore will succeed Emmanuel Menanteau, the board director of Cambodia Airports and regional director of VINCI Airports, upon completion of his two-year term.
In other changes to the executive committee, Mohamed Yousif Al-Binfalah, CEO, Bahrain Airport Company, will become first vice president; the newly elected second vice presidents are Fred Lam, chairman of Airport Authority Hong Kong, and Akihiko Tamura, president and CEO of Narita International Airport; and Gert-Jan de Graaff, CEO, Brisbane Airport Corporation, will succeed Al-Binfalah as secretary treasurer.
Newly elected Board Directors are Ali Salim Al-Midfa, chairman of Sharjah International Airport Authority; Cyril Girot, CEO, Cambodia Airports; Elena Sorlini, managing director and CEO of Abu Dhabi Airports; Dato’ Mohd Izani Ghani, managing director of Malaysia Airports Holding Berhad (MAHB); and Yam Kum Weng, CEO of Changi Airport Group.
All begin their three-year terms on January 1, 2025, ending December 31, 2027.
Congratulating the new president and the newly elected members, Menanteau, said: “It has been an exceptional two years, during which we’ve made significant steps in advancing our key initiatives and strategic priorities, especially with regard to economic and environmental sustainability of airports.
“I am grateful to our Board for their support, which has allowed us to strengthen our advocacy across the region. As I hand over the leadership to Mr Kishore, I am confident that under his guidance, ACI Asia-Pacific & Middle East will continue to be a powerful advocate for our region’s airports. I also extend my sincere congratulations to all newly elected Board members.”
Commenting on his new role, Kishore said: “I am deeply honoured to take on the role of president and to continue the remarkable work of my predecessor, Emmanuel Menanteau.
“As we look toward the future, our collective focus will be on driving environmental sustainability, innovation, and ensuring the economic resilience of airports as aviation industry in our region is set for the next big phase of growth.”
INTERNATIONAL CONFERENCE ON GREEN AVIATION
Head of sustainability, Ken Lau, gave a presentation on the topic ‘Airports Sustainability in Asia-Pacific & Middle East’ at the 2nd International Conference on Green Aviation, in Chengdu, China.
During the lecture, he emphasised our association’s environmental sustainability’s efforts in strengthening the advocacy in the regions through our flagship programme: Green Airports Recognition and biennial environmental survey. He previewed the Net Zero Roadmap project and study on climate adaptation approach in 2025. Lau also moderated three lectures in ‘Green Airport Technologies and Operation Forum’.
ACI APEX SECURITY REVIEW IN FIJI
Fiji has successfully hosted an Airport Excellence Programme (APEX) Review in Security.
Hosted by Fiji Airports in Nadi, Fiji, in late November 2024, it was the first such review conducted in the country. Representing ACI Asia-Pacific & Middle East, senior manager for security and facilitation, Gary Leung, was part of the review team to share insights and offer recommendations to help the airport enhance security compliance and efficiency.
ACI APAC & MID PARTICIPATES IN IFALPA
ACI APAC & MID was honoured to participate at the 2024 security committee of The International Federation of Air Line Pilots’ Associations (IFALPA) in Fukuoka, Japan, in mid-November.
Marking a significant milestone, this was the first time ACI APAC & MID had been invited to attend IFALPA’s annual security committee, which is held for commercial airline pilots to discuss aviation security-related matters.
ALL CHANGE AT TOP FOR ECONOMICS COMMITTEE
Riyadh Airports Company’s chief commercial officer, Abdulaziz Al-Asaker, and Bahrain Airport Company’s Leena Faraj have been appointed chair and vice chair respectively of ACI APAC & MID’s Regional Economics Committee.
It is hoped that the leadership transition will help usher in a new era of collaboration and a strategic focus on the evolving landscape of airport economics.
NEW LEADERS FOR REGIONAL ENVIRONMENT COMMITTEE
Kristy Tan, senior manager for climate resilience at Airport Authority Hong Kong, and Dana Ismaeel, acting head of environment and sustainability at Bahrain Airport Company, have been appointed as chair and vice chair respectively of the ACI Asia-Pacific & Middle East Regional Environment Committee (REC). They will lead the committee for two years in 2025-2026.
AI-DRIVEN HUMAN RESOURCES MANAGEMENT
AI Driven Innovation in Human Resources Management was the central topic of discussion at the ACI APAC & MID Regional Human Resources Committee meeting in Taipei.
Hosted by Taoyuan International Airport, more than 40 airport HR leaders discussed how AI will impact the workforce and reshape human resources at airports and across other industries.
ASEAN AIR TRANSPORT WORKING GROUP
ACI APAC & MID spoke about smart airports and digital transformation at the 50th ASEAN Air Transport Working Group meeting and an associated Sustainability Forum held in Chiang Mai, Thailand.
Representing ACI APAC & MID, Ken Lau, our head of sustainability, highlighted the work and application of ACI and airports in the areas of cybersecurity, touchless technology, biometrics, artificial intelligence and robotics.
He emphasised that introducing new technologies without robust cybersecurity measures in place poses a risk to the industry. In addition, he touched on Sustainable Airport Management as a key element of becoming a smart airport.
ECONOMIC SUSTAINABILITY AND FINANCIAL RESILIENCE KEY TO FUTURE GROWTH
ACI APAC & MID has reiterated its call for economic sustainability and financial resilience as critical components for infrastructure development to support the expected growth in the region’s air transport sector.
At the 59th Conference of Directors General of Civil Aviation for Asia and Pacific Regions in Cebu, Philippines, ACI APAC & MID presented an outlook on the future of the aviation industry, as well as made several recommendations.
ACI APAC & MID’s proposals were supported by ICAO urging states to consider implementing the recommended initiatives.
Airport economic sustainability and financial resilience are key pillars for infrastructure development.
With the Asia-Pacific region growing at an annual rate of 5.8%, more than the global average of 4.3%, the region is expected to account for 40% of global passengers over the next two decades. The 3.4 billion passengers that took to the skies in 2023 are expected to swell to over 8.7 billion by 2042.
Meeting this demand requires significant investment in infrastructure. ACI APAC & MID’s long-term forecast estimates a capital expenditure of $2.4 trillion globally, with Asia-Pacific alone needing $1.3 trillion, including $579 billion for greenfield airport development.
ACI APAC & MID highlighted the financial stress airports are facing, especially following the economic blow of the COVID-19 pandemic.
In conclusion, the Conference encouraged States and Administrations to support, as appropriate, the operations and infrastructure investment in airports.
– SECURITY-BY-DESIGN
With the significant forecasted growth in airport infrastructure investment, ACI APAC & MID, through an Information Paper, stressed the need to integrate security considerations into the design phase for any new infrastructure to improve eventual operational performance.
– ENVIRONMENTAL SUSTAINABILITY
The Conference urged States to engage in ACI APAC & MID’s Net Zero Roadmap programme to ensure sustainable air transport. ACI APAC & MID has recently partnered with Riyadh Airports Company and Mactan Cebu International Airport to assist the airports establish a net zero roadmap.
– SAFETY
ACI APAC & MID, in partnership with industry associations such as CANSO, Flight Safety Foundation, International Federation of Air Line Pilots Associations, and International Federation of Air Traffic Controllers’ Associations, regulators and airport operators to encourage safety culture. Recognising the critical role safety plays in the long-term resilience and growth of the aviation sector, the Conference urged States and Administrations to adopt the positive safety culture indicators as part of their safety assessments.
Stefano Baronci, director General of ACI Asia-Pacific & Middle East, said: “With the Asia-Pacific region driving the global growth in air travel, investing in modern, efficient, and sustainable airport infrastructure is no longer an option – it is now become a necessity. As airports continue to play a crucial role in the socio-economic development of their regions, they must be equipped to meet growing demand while maintaining financial viability for decades to come.
“At the same time, as the industry evolves, we must also prioritise enhanced safety, explore innovative ways to strengthen aviation security, promote diversity, and inclusion, and greater sharper focus on environmental sustainability.”