China Daily Global Weekly

Flying high over the bay

Hong Kong is now teaming up with other GBA cities to create the world’s biggest airport cluster

- By AO YULU in Hong Kong aoyulu@chinadaily­hk.com

When the central government, for the first time, voiced support in its national Five-Year Plan for Hong Kong to enhance the city’s status as an internatio­nal aviation hub, the city had just shown its enduring strength in the field as the world’s second-busiest internatio­nal cargo airport in 2020 despite the impact of the COVID-19 pandemic. It shipped 4.5 million metric tons of cargo, 145,000 tons less than the top-ranked Memphis Internatio­nal Airport.

The vigorous developmen­t of Hong Kong’s aviation industry could make it a big part of the country’s vision to build world-class port and airport clusters as outlined in the 14th FiveYear Plan (2021-25). Leading the pack will be the Guangdong-Hong KongMacao Greater Bay Area with 10 civilian airports, five of which handled more than 10 million passengers a year before the pandemic.

Local government­s in the Bay Area, including the Hong Kong Special Administra­tive Region government and the Zhuhai and Dongguan authoritie­s, have sped up cooperatio­n in aviation industrial line and air cargo services, connecting the country’s domestic and global markets and facilitati­ng the “dual circulatio­n” developmen­t pattern.

At the same time, Shenzhen and Guangzhou, the other pillar cities of the Greater Bay Area, are eager to contribute to the national plan on aviation. In their own municipal five-year plans, the cities have set out aggressive aviation strategies, including new airport infrastruc­ture and optimized management.

Competitio­n is inevitable when three major cities actively explore the limits of the sky they share, but experts believe that the simultaneo­us presence of the three hubs in the region will not only benefit each other, but also allow them to concentrat­e their efforts on making the region “the largest airport cluster in the world”.

The close links between Hong Kong and Zhuhai in the aviation industry have a natural cornerston­e: The Airport Authority Hong Kong, which operates Hong Kong Internatio­nal Airport, has been jointly operating and managing Zhuhai Airport under a franchise since 2006.

Two years after the Hong KongZhuhai-Macao Bridge went into operation, Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor said in her 2020 Policy Address that the mega bridge will be utilized to integrate the mainland aviation network of the Zhuhai Airport with the 26 internatio­nal networks of the Hong Kong Internatio­nal Airport, to “strengthen the competitiv­e edge of the entire Greater Bay Area in aviation”.

A year later, she announced the setting up of a high-end aviation industrial cluster in Zhuhai in collaborat­ion with Guangdong province. The industrial park will offer aircraft maintenanc­e engineerin­g services, assist in the distributi­on of aircraft parts and components, and promote aviation industry research and training, said Albert Yau, general manager of Hong Kong-Zhuhai Airport Management Company.

Zhuhai Airport also intends to build a new logistics center to transport fresh food produced in Guangdong to Hong Kong and Macao or other cities covered by the airport’s flight schedules, said Yau.

“We hope to see increased cooperatio­n in the region, making us more confident in competing with overseas airlines,” said Charles Lee, PwC’s South China (including Hong Kong) tax leader. “If we can find a junction point among the cities in the Greater Bay Area, it’s definitely good.”

In return, Hong Kong could offer profession­al services for both travelers and enterprise­s across the globe, he said.

On the other side of the Pearl River, the Airport Authority Hong Kong plans to set up a logistics park in Dongguan and an airside intermodal cargo handling facility at Chek Lap Kok.

“With the new facilities in operation, customs clearance, security screening, palletizat­ion, cargo acceptance and other services for mainland exports could be done in Dongguan before the goods are shipped to the cargo handling facility in the restricted area of HKIA by sea for air transshipm­ent to destinatio­ns worldwide,” Vivian Cheung, the Airport Authority’s executive director of airport operations, told China Daily.

“For imports to the mainland, the goods could be directly shipped from the HKIA restricted area to Dongguan. The procedures will comply with Hong Kong’s air cargo security regulation­s. A pilot scheme for the operations between Hong Kong and Dongguan will be carried out,” Cheung said.

The new facilities engaging mainland cities in the Greater Bay Area help Hong Kong save transport costs and the new facilities will promote the efficiency of the logistics sector if they run well, said Lee at PwC.

Hong Kong maintains two distinct advantages in becoming an internatio­nal aviation hub, said Wong Wai-hung, an associate professor in the Department of Supply Chain and Informatio­n Management at the Hang Seng University of Hong Kong. The first is its geographic­al position which provides global visitors easy transit to other destinatio­ns, she said.

The second is its “air freedom right”, Wong continued. Under the framework of “one country, two systems” and the Basic Law, Hong Kong can independen­tly negotiate and sign air services agreements with foreign aviation partners, offering great flexibilit­y for Hong Kong to make use of its strength to provide more diversifie­d air routes for air travelers and to expand cargo business.

Cooperatio­n also needs to be strengthen­ed in other cities in the region to address long-standing problems, capitalize on potential business opportunit­ies and achieve win-win outcomes, experts said.

There have been significan­t overlaps in the air routes to and from airports in Hong Kong, Shenzhen and Guangzhou due to limited airspace and flight paths over the years, which means the cooperatio­n cannot go deeper, said Wong.

Wong estimated that about 70 percent of the air routes in the airports in the Greater Bay Area are the same — much higher than those in Greater London or the New York metropolit­an area, where less than 40 percent of the airports’ businesses overlap.

“The differenti­ation in the airports’ functional orientatio­ns is particular­ly important,” said Yuen Chi-lok, director of the Aviation Policy and Research Centre at the Chinese University

of Hong Kong. Yuen added that the cooperatio­n space of the airports will be very limited if their functional orientatio­ns overlap.

The airports within the Greater Bay Area should split up the work to prevent having too many overlappin­g air routes, which creates vicious competitio­n in the industry, he said.

The Guangdong Provincial Developmen­t and Reform Commission also recognized the issue, saying in June that the airport clusters in the region have “homogeniza­tion problems in product services”, and calling for a stronger regional collaborat­ion in an all-around way.

The division of airport businesses could also help solve the long-standing problem of congestion in the skies of the Greater Bay Area, which has caused delays in flights, he said.

The situation is expected to improve slightly when HKIA’s third runway is completed in 2024 and speed up the efficiency of aircraft takeoffs and landings in the city.

Wong has proposed the concept of a “GBA Airport” alliance that would combine the functions of the region’s major airports by strengthen­ing coordinati­on and connectivi­ty. It could be the world’s biggest airport cluster if the three dominant airports — in Shenzhen, Guangzhou, and Hong Kong — are combined, and the total number of destinatio­ns served could be doubled, she envisioned.

According to statistics compiled by Civil Aviation Data Analysis, the total number of passengers using the five busiest airports in the Greater Bay Area — Hong Kong Internatio­nal Airport, Guangzhou Baiyun Internatio­nal Airport, Shenzhen Bao’an Internatio­nal Airport, Macao Internatio­nal Airport and Zhuhai Airport — had exceeded 200 million in 2018. Hong Kong alone handled more than 71.5 million passengers in 2019.

Citing London’s Heathrow Airport as an example, she said, one can now land at Heathrow Airport and easily go to another airport in the city for a second flight.

Facing an airport cluster, passengers would have more options, allowing them to make decisions based on factors such as air fares. She believes that fares will be reduced and further benefit residents and travelers. For example, it could cost a fortune to fly directly to Hong Kong, but travelers could land in another city in the region and arrive in Hong Kong through intercity transporta­tion and spend much less.

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 ?? PROVIDED TO CHINA DAILY ?? Zhuhai Airport is strengthen­ing cooperatio­n with Hong Kong Internatio­nal Airport to better integrate the former’s mainlandfo­cused aviation network with HKIA’s worldwide links.
PROVIDED TO CHINA DAILY Zhuhai Airport is strengthen­ing cooperatio­n with Hong Kong Internatio­nal Airport to better integrate the former’s mainlandfo­cused aviation network with HKIA’s worldwide links.

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