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Airport Authority Hong Kong Annual Report 2012/13

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Airport Authority Hong Kong Annual Report 2012/13 AIRPORT AUTHORITY HONG KONG ANNUAL REPORT 2012/13 Annual Report 2012 / 13 Hong Kong International Airport (“HKIA”) aims to maintain a leadership position in airport management and aviation-related businesses to strengthen Hong Kong as a centre of international and regional aviation by: + upholding high standards of safety and security + operating efficiently with care for the environment + applying prudent commercial principles + striving to exceed customer expectations + working in partnership with stakeholders + valuing human resources + fostering a culture of innovation AIRPORT AUTHORITY HONG KONG (the Airport Authority) is a statutory corporation wholly owned by the Hong Kong SAR Government. The Airport Authority is responsible for the operation and development of HKIA. Cover design: Hong Kong International Airport (HKIA) celebrates its 15th anniversary in 2013. The cover design uses HKIA’s core values and major achievements to create the shape of the airport island. CONTENTS 08 15 Years of Growth and Achievements 48 Passenger Services 10 Core Values 54 Cargo and Aviation Services 11 HKIA Facts/Performance Highlights 58 Airfield and Systems 12 Chairman’s Statement 62 Mainland Projects 16 Chief Executive Officer’s Statement 66 Corporate Sustainability 20 The Board 72 Looking Forward 22 Executive Directors 76 Financial Review 23 Financial and Operational Highlights 82 Report of the Members of the Board 24 Corporate Governance 85 Independent Auditor’s Report 42 Risk Management Report 86 Financial Statements 46 Event Highlights 131 Five-year Financial and Operational Summary 132 Airlines and Destinations THE NUMBER OF AIRLINES GREW FROM 60 IN 1998 TO 108 IN 20121 1 These are calendar year figures PASSENGER VOLUME INCREASED FROM 28.6 MILLION IN 1998 TO 56.5 MILLION IN 20121 1 These are calendar year figures A NEW CHAPTER IN HONG KONG’S AVIATION HISTORY BEGAN 15 YEARS AGO, WHEN AN ISLAND WAS TURNED INTO A WORLD-CLASS AIRPORT 2011 2012 A groundbreaking ceremony was held AAHK released Hong Kong International AAHK received a study brief from the Director of for the Midfield development. Airport Master Plan 2030 and began public Environmental Protection for the Environmental consultations for HKIA’s expansion plans. Impact Assessment (EIA) for the three-runway Surpassing Memphis International system. The EIA had to be completed before Airport, HKIA became the world’s HKIA had been recognised as the world’s an environmental permit could be issued and busiest cargo airport for the first time. best airport more than 50 times. project approval could be sought. 1998 15 YEARS OF Hong Kong International Airport (HKIA) opened GROWTH AND with a ceremony officiated by the then President ACHIEVEMENTS Jiang Zemin. 1998 2010 2011 2012 1999 2009 2010 HKIA’s second runway, the North Hong Kong Aircraft Engineering Co. Ltd (HAECO) opened its third AAHK led an airport-wide Runway, began hangar and China Aircraft Services Ltd (CASL) opened its first aircraft pledge to reduce carbon operations. maintenance hangar at HKIA. emissions by 25% per workload unit by 2015, the AAHK signed a cooperation agreement with Shanghai Airport (Group) first commitment of its kind 2009 Co., Ltd, to manage part of Shanghai Hongqiao International Airport. in Hong Kong and among 1999 airports worldwide. 2000 The North Satellite Concourse The Northwest and a new, permanent SkyPier Concourse officially opened. in Terminal 1 opened. 2000 2008 2007 2001 Eight new aircraft stands were 2008 2007 2006 added to the air cargo apron. AAHK provided consulting and HKIA celebrated the Grand AAHK began a training services to assist Beijing Opening of Terminal 2 HK$4.5 billion 2006 The Marine Cargo Terminal opened, Capital International Airport as and the 10th Anniversary capacity and facility enhancing services between HKIA it commissioned a new, third of the Hong Kong Special enhancement 2005 and the Pearl River Delta (PRD). terminal ahead of the Beijing Administrative Region programme. 2008 Olympic Games. (HKSAR). 2001 2002 Airport Authority Hong Kong (AAHK) awarded a franchise to build and operate an express cargo terminal, strengthening the airport’s logistics capabilities. 2002 2003 2004 2003 2004 2005 SkyPier opened, providing a The airport community joined The International Air HKIA was the first airport to adopt an convenient link for passengers forces to bring travellers back to Transport Association end-to-end radio frequency identification travelling between HKIA and Hong Kong after the outbreak named HKIA the (RFID) sorting and reconciliation system four ports in the PRD. of the severe acute respiratory world’s best airport. for all departing baggage. syndrome (SARS) crisis. 8 Hong Kong International Airport Annual Report 2012/13 9 At Hong Kong International Airport (“HKIA”), six core values guide our staff and business partners in their day-to-day work and long-term plans. In a rapidly changing business environment, these principles are both constant and non-negotiable. Safety Security Environment Quality The safety of our passengers, Effective security is an HKIA is committed to An airport-wide passion employees and business ongoing process that achieving high environmental for customer service helps partners is paramount. involves the entire airport standards. This includes us maintain international Through training, accident community. We work minimising pollution, using standards of quality and reporting and analysis, closely with the police energy and other resources customer satisfaction. As communications and staff and other government efficiently, recycling and a result, HKIA has been recognition programmes, departments to protect reusing wherever possible, named the world’s best our goal is to achieve a zero- passengers, staff and and continually improving our airport over 50 times. injury rate at HKIA. business partners. environmental performance. Efficiency By efficiently serving our customers and business partners, we reinforce Hong Kong’s position as an aviation centre. That contributes to Hong Kong’s social and economic development and its competitiveness in financial services, trading CORE and logistics, and tourism. People Top-quality people are the key to our high service standards. We use long-term training and development plans to ensure our staff are prepared VALUES to meet future challenges. 10 Hong Kong International Airport HKIA Facts Airport Site Area 1,255 hectares Total Terminal Area 750,000 square metres Airlines Over 100 Destinations Around 180 Runways 2 Performance Highlights Passenger Traffic (millions of passengers) 6060 57.2 54.9 51.5 5050 48.9 47.7 46.9 45.1 41.6 4040 38.3 33.8 33.1 34.2 30.9 27.7 3030 21.6 2020 98/991 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Cargo Throughput (millions of tonnes) 5 5 4.2 3.9 4.0 4 4 3.8 3.5 3.6 3.4 3.6 3.1 3 3 2.7 2.5 2.1 2.2 2.1 2 2 1. 2 1 1 98/991 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Air Traffic Movements (thousands) 400400 355 350350 339 316 300 296 300300 283 280 270 242 250250 212 198 190 200 186 200 169 150150 122 100100 98/991 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 1 Period from 6 July 1998 to 31 March 1999 Annual Report 2012/13 11 CHAIRMAN’S STATEMENT Dear Stakeholders, Hong Kong International Airport (HKIA) accomplished many achievements during the year ended 31 March 2013. Passenger volumes, air traffic movements and cross-boundary passenger trips set new records. In the face of market uncertainties, HKIA’s cargo throughput increased 2.9% making us the world’s busiest cargo airport for the third consecutive year. Our performance was recognised with many accolades received during the year. For the 10th year running, HKIA was named the world’s best airport by TTG. We were recognised as the best airport in Asia by Frequent Business Traveller and FinanceAsia. 12 Hong Kong International Airport AN ECONOMIC A WORLD-CLASS 15 YEARS ENGINE FOR airport + OF GROWTH = HONG KONG HKIA delivered strong financial results, with profit attributable to equity shareholder rising 5.4%, to HK$5,624 million. Of that amount, HK$4,400 million will be paid to our shareholder, the Hong Kong SAR Government, as a dividend in respect of the profit for that year. In the 15 years since the airport opened, Airport Authority Hong Kong (AAHK) will have returned a total of HK$30,380 million to the Hong Kong SAR Government in repaid capital and dividends. Fifteen Years of Growth HKIA’s operations have grown dramatically since the airport opened in 1998. Passenger volumes, flight movements and cargo throughput have more than doubled. Our destination network has increased from 120 to about 180 cities, while the number of airlines serving Hong Kong has risen from 60 to over 100. The relocation of the airport from Kai Tak, which had a single runway, to Chek Annual Report 2012/13 13 Chairman’s Statement “HKIA’s operations have grown dramatically since the airport opened in 1998. Passenger volumes, flight movements and cargo throughput have more than doubled. Our destination network has increased from 120 to about 180 cities, while the number of airlines serving Hong Kong has risen from 60 to over 100.” Lap Kok enabled this expansion. The new airport’s two-runway system allowed Hong Kong’s aviation industry to develop and make a large contribution to the local economy. Additional capacity also helped us increase efficiency and customer satisfaction. In retrospect, we are fortunate that the right decision was made two decades ago.
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