Fashion
Airport Authority Hong Kong (AAHK) has reported ‘a solid financial performance’ in its fiscal year ending 31 March 2017, with a marginal 1.1% increase in passengers to 70.5m, plus ‘higher revenues from airport charges, airside support services franchises and retail concessions’.
AAHK said that total revenue rose by 2.4% to HK$18,627m ($2,385m) thanks to increased passenger and flight numbers, higher landing and parking charges, plus ‘a strong retail performance’
Retail licences and advertising revenue accounted for 41.9% of total revenue, up 3.7%, to HK$7,803m ($999.3m), with this result bolstered by higher revenue from better licence terms, passenger growth at HKIA and new retail outlets in the Midfield Concourse. These results were also stimulated by promotional retail campaigns throughout the year.
Further expanding HKIA’s extensive network, 14 new destinations were added in 2016/17, including London Gatwick, New York LaGuardia, Portland, Madrid, Saipan, Ahmedabad (India), Chiang Rai (Thailand), Daegu (South Korea), Manado (Indonesia), Mandalay (Myanmar), Toowoomba (Australia), and Ishigaki, Takamatsu and Yonago (Japan). Four new carriers also began operations, including Austrian Airlines, Bismillah Airlines, T’way Air and Vietjet Air.
Airport Authority also said in its annual report that it is planning to introduce automation and mobile technologies to create a smoother and more ‘hassle-free passenger experience’, as Fred Lam, CEO of the AA explained: “We are introducing more technology-based self-service facilities, which are increasingly popular.
“For example, in addition to the self-bag drop service that debuted in 2016, a new smart luggage tag is to be launched in 2017/18. With the smart tag, passengers will receive an alert through the ‘HKG MyFlight’ mobile app shortly before their bags arrive at the carousel at baggage reclaim.
In 2016/17, the AA began installing approximately 10,000 iBeacon transmitters at HKIA that enable the sending of directions and boarding alerts to passengers’ mobile phones and other Bluetooth-enabled devices via the upgraded ‘HKG My Flight’ mobile app. Several other new features will be added to the app, including airport signage translation and retail functions, including car park booking.
Commenting generally on the retail performance, AA said that the ‘I Love Hong Kong’ retail zone in the East Hall focusing on well-known local brands has proved very popular with travellers. As a result, management said it will now also feature a unique concept that combines both shopping and fine dining.
AAHK management added: “In 2016/17, we introduced an array of retail innovations, including pop-up stores showcasing new retail categories such as drones and aerial photography systems, and a distinctive beer truck where travellers can enjoy a cold one before their flight.
