TERMINAL 2 ANNUAL REPORT 2006/07



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TERMINAL 2 To meet future increases in passenger throughput, in 2006/07 we began the phased opening of a new passenger terminal. A few minutes walk from the existing passenger terminal, Terminal 2 (T2) is a multi-modal transport hub where rail, road, sea and air transport converge seamlessly. T2 includes 56 airline check-in counters and a 36-bay coach station that primarily serves buses connecting HKIA to 70 cities and towns in the Pearl River Delta (PRD) and Guangdong Province. 43

FACILITIES AND SERVICES PASSENGER CARGO AIR TRAFFIC To enhance the passenger experience, the new passenger terminal is home to SkyPlaza, a 35,000-square-metre shopping, dining and entertainment complex. Located in the landside area of T2, its 130 retail and dining outlets appeal to a wide range of customer segments and complement the outlets in Terminal 1 (T1). The new terminal adds to the growing number of attractions on Lantau Island and created more job opportunities. T2 also features multi-media walls. The first advertising and promotion platform of its kind in Hong Kong, the multi-layer walls enhance T2 s overall ambience. In addition to taxis, buses and private cars, T2 is served by the Airport Express, a high-speed train that connects HKIA with downtown. Airport Express passengers can disembark on the left side of the train to reach T1 or on the right side for T2. Airport Ambassadors are stationed in both terminals to assist passengers. PASSENGER Every year, millions of people pass through Hong Kong International Airport (HKIA) on their way to destinations around the globe. We smooth their journey with facilities that are safe, secure and efficient, and we add services and attractions that help enhance their experience. With careful planning today, we ensure that HKIA will delight travellers for years to come. A FRESH LOOK FOR TERMINAL 1 In January 2006, the Airport Authority announced a HK$4.5 billion enhancement programme that includes HK$1.5 billion in improvements for T1. The upgrades, which will ensure HKIA is able to serve growing passenger numbers and keep the airport looking fresh, will be completed in phases by 2010. To ease capacity constraints, the Departures Immigration Hall in T1 is being reconfigured so passengers will complete immigration formalities after they have undergone security screening. Twelve new security screening channels will also be added. The reconfiguration is scheduled to be completed by early 2009. The East and West Arrivals halls will be enlarged to meet passenger demand to 2015, while an additional 3,400 square metres of lounge and office space will be added on Level 6, above the Baggage Reclaim Hall. Additional commercial space will be created in the East Arrivals Hall to provide a wider range of duty free and other merchandise for arriving and transfer passengers. During the year, the seating capacity in the T1 food court 44 HONG KONG INTERNATIONAL AIRPORT

PASSENGERS BY MARKET year ended 31 March 2007 7% 9% 8% 5% 8% 18% 24% 21% Total passengers 45.1 million South East Asia Mainland China Taiwan Japan Europe USA & Canada Australasia Others with a capacity for expansion to eight berths. With a capacity of 2,000 passengers per hour, the new facility will improve our ability to serve sea-to-air and air-to-sea traffic, making HKIA a multi-modal transport hub. NORTH SATELLITE CONCOURSE Today, about one-third of the aircraft using the airport are smaller jets, like the Airbus A320 and Boeing 737. To cater to this growing market, the Airport Authority began work on a two-storey North Satellite Concourse in March 2007 that will include 10 bridge-served stands. With an annual capacity of five million passengers, the new concourse is scheduled to open by the third quarter of 2009. was increased to 1,200, and the seating capacity of the T2 food court will be expanded. While these changes are taking place, a series of smaller renovation projects will be carried out. Carpets, toilets, lifts, lighting, airline counters, lounges and other facilities of T1 will be replaced or refurbished to ensure the terminal continues to look pleasant and attractive. SKYPIER SkyPier is a service that lets passengers originating in the PRD clear customs and immigration on the Chinese Mainland before boarding a high-speed ferry to HKIA. When they arrive at HKIA, passengers are immediately transferred by coach to the Departures Hall of T1, where they board flights without having to clear Hong Kong customs or immigration. Over 4.5 million travellers have used the temporary SkyPier since it was introduced three years ago, and passenger volumes increased 25 per cent during 2006/07 to 1.8 million. As the number of passengers and PRD ports served by SkyPier continues to grow, the Airport Authority is replacing the existing ferry pier with a new, permanent facility. Scheduled to open in 2009, the permanent SkyPier will connect to T1 and T2 via the automated people mover and will have four ferry berths, BAGGAGE SYSTEMS HKIA operates one of the world s most sophisticated baggage handling systems. In July 2006, the Airport Authority signed a HK$30 million consultancy contract that will double the system s capacity to 16,000 bags per hour. The Airport Authority is also replacing existing X-ray machines with new models that offer a multi-view screening function. Scheduled for completion by 2009, the HK$750 million enhancement programme will meet projected demand up to 2015. T2 is a multi-modal hub where rail, road, sea and air transport converge seamlessly. 45

FACILITIES AND SERVICES In 2005, HKIA became the world s first airport to implement an end-to-end radio frequency identification (RFID) sorting and reconciliation system for all departing baggage. RFID is faster and more accurate than the barcode technology it replaced, resulting in quicker reconciliation of baggage on departing aircraft and fewer misdirected bags. The first phase of this project used read-only RFID baggage tags and separate barcode labels. The second phase uses a tag that combines a read-write RFID tag and a barcode label, further increasing sorting efficiency. All check-in counters in T2 are equipped with the new label printers, and RFID-capable printers are being gradually installed in T1. PASSENGER SERVICES In addition to new infrastructure, the Airport Authority continually looks for ways to augment the services provided at HKIA. By creating a unique airport experience, we strengthen HKIA s position as a gateway of China, create more jobs and burnish Hong Kong s reputation as Asia s World City. In conjunction with the Hong Kong Immigration Department and Cathay Pacific Airways, in January 2007 we launched SPEED, a trial programme to smooth travel between Hong Kong and London. Part of the International Air Transport Association s Simplifying Passenger Travel SYSTEM AVAILABILITY percentage (%) 06/07 05/06 04/05 03/04 02/03 95.6 95.6 95.3 95.3 96.2 90 92 94 96 98 Air Conditioning System (T1)* Automated People Mover System Baggage Handling System (arrivals) 99.8 99.8 100 * Maintain 95% of the system to ensure an average temperature of about 25 o C within T1. initiative, SPEED integrates airport, immigration and airline processes in real time and enhances passenger identification through the use of biometrics. Participants in the pioneering programme enjoy a variety of benefits, including enhanced Internet check-in and designated channels for restricted area access, immigration control, security clearance and aircraft boarding. To increase efficiency and passenger convenience, the Airport Authority is installing common-use self-service (CUSS) terminals at HKIA. The first CUSS terminals, which let passengers self-check luggage and obtain a boarding pass, are scheduled to enter service by the third quarter of 2007. To enhance service to more discerning individual travellers, in 2005 we introduced the SkyLimo limousine service for passengers requiring point-to-point service to and from destinations in the PRD. SkyLimo has become popular with business travellers, who value its comfort and speed. In 2006/07, SkyLimo made about 400,000 round trips between HKIA and the PRD. RFID technology increases the efficiency of HKIA s baggage handling system. To further boost HKIA s connectivity, the Airport Authority is introducing upstream check-in at ports served by SkyPier. The service is currently provided at the Shenzhen port of Shekou, and will be extended to Fuyong, another port in Shenzhen, and Macao. 46 HONG KONG INTERNATIONAL AIRPORT

In support of the Hong Kong SAR Government s plan to create a Wi-Fi city, the Airport Authority began offering free wireless Internet access throughout the airport in December 2006. HKIA is the world s first airport to offer this service on a facility-wide basis. The new Wi-Fi service is part of a larger initiative to blanket the airport in a high-speed, wireless local area network, which allows Airport Authority employees, as well as staff from airlines, ground handling agents, retailers and other business partners to quickly and efficiently share information in the two terminals, HKIA Tower as well as on the passenger and cargo aprons. In May 2006, HKIA s advanced use of wireless technology was recognised at Computerworld Mobile & Wireless World s Best Practices in Mobile & Wireless awards. The Airport Authority was the only winner from outside North America. In April 2007, we launched a full-service business centre near Gate 24 in the Departures Hall. Powered by PCCW, the business centre provides a range of communication solutions and value-added business services. Hong Kong s geographic location makes it vulnerable to typhoons, which can severely interrupt operations at the airport. During the year, we enhanced our ability to manage service disruptions by enlarging and providing additional training for our Passenger Care Team. We also reviewed and refined our contingency plans for looking after stranded passengers. To celebrate Christmas, New Year and the Lunar New Year holidays, we invited members of the Hong Kong The new Wi-Fi service gives passengers round-the-clock wireless connection to the Internet. Federation of Youth Groups and the Tung Chung Community Centre to give dance and choir performances. We also arranged for volunteer handicraft workshops to be held near the children s play area during peak travel periods and weekends. 47