Pivoting to remain profitable
Over in Chongqing Jiangbei International Airport (CKG), where CAI has a commercial joint venture with Chongqing Airport Group to manage and develop the non-aeronautical business of the airport, traffic was similarly decimated by the pandemic. At the height of the pandemic in 2020, more than 90% of the commercial outlets closed.
Following Changi Airport’s practice, CKG focused on retaining tenants and conserving cash. CKG also quickly shifted the commercial strategy to target local residents, helping airport tenants recover lost sales and generate new revenue streams through e-commerce. With these measures and a robust cost management system, CKG was able to remain profitable in 2020, indicating the resilience of the commercial joint venture throughout the pandemic.
Continued efforts in wooing airlines and engaging regulatory authorities
Traffic development remains an utmost priority as airports prepare for post-Covid recovery.
Teo Chin Leong, Chief Commercial Officer (Aero) at Fukuoka Airport (FUK), shared that they are engaging the relevant authorities in Japan to try to shape the best regulatory outcomes that are conducive for traffic recovery. Meanwhile, efforts to woo airlines have seen results, as slots application from Chinese carriers increased by more than 40%. “This shows that Fukuoka Airport continues to be an attractive destination for airlines in Asia,” Teo enthused.
Like Changi Airport, FUK’s operator is determined to ensure the safety of passengers and airport users. With CAI’s support, FUK recently obtained the ACI Airport Health Accreditation, becoming the second airport in Japan to achieve this. The certification, which evaluates an airport’s health measures and industry best practices, affirmed the airport’s commitment to the safety of airport users.
FUK has also moved up the ranks in the annual Skytrax Best Airport Award since CAI’s involvement in its operations in 2019. This year, it ranks 27th, up from 39th place in 2020.