Contents. Introduction 4-5. HKIA and Hong Kong The Challenges and Opportunities Ahead. Growth Strategies 20-27

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Contents Introduction 4-5 HKIA and Hong Kong 6-11 The Challenges and 12-19 Opportunities Ahead Growth Strategies 20-27 A Process, Not a Destination 28

28 29 HKIA 2025

2 3 HKIA 2025

4 5 HKIA 2025 Introduction HKIA 2025 HKIA 2025 charts a course for the long-term development of Hong Kong International Airport (HKIA). It continues a process that began with 1992 s New Airport Master Plan, which provided a framework for building Hong Kong s new airport at Chek Lap Kok. And it builds on the work done in Strategic Overview of Major Airport Development, a set of studies that were completed in 2001 and that formed the basis for Master Plan 2020. Purpose Under the Airport Authority Ordinance, the Airport Authority must operate HKIA as a regional and international aviation centre, maintain a safe facility and run it according to prudent commercial principles. In this context, HKIA 2025 re-examines the airport s long-term vision, growth strategy and facility planning directions, in light of the competitive environment and projected supply and demand.

6 7 HKIA 2025 CHAPTER ONE HKIA and Hong Kong

1 HKIA and Hong Kong SUPPORTING THE FOUR PILLARS Hong Kong is a leading international financial centre, a logistics and communications hub, and a bridge between the Mainland and the world. By facilitating the flow of people, trade, capital and information, HKIA actively supports the four pillars of Hong Kong s economy: financial services, trading and logistics, tourism, and producer and professional services.

8 9 HKIA 2025 HKIA actively supports the four pillars of Hong Kong s economy In 2005, HKIA handled a record 40.7 million passengers and 3.4 million tonnes of cargo, figures that made Hong Kong the world s fifthbusiest airport for international passenger traffic and the world s busiest airport for international cargo throughput 1. Aircraft movements reached 264,000, over four times the level of two decades ago. Eighty-five airlines now link Hong Kong to more than 150 destinations, including about 40 Mainland cities. Recent years have seen a shift in traffic patterns at HKIA. Previously, HKIA was primarily an origin and destination (O&D) airport, serving travellers who were arriving or departing from Hong Kong. Today, about one-third of the passengers using HKIA are on their way to another destination. Non-O&D passengers bring incremental revenue to Hong Kong and encourage carriers to operate more flights, which reinforces HKIA s status as a regional and international aviation hub. A Strategic Asset for Hong Kong HKIA plays a significant role in Hong Kong s economy. In 2004, the aviation industry accounted for about 3 per cent, or HK$36 billion 2, of Hong Kong s gross domestic product (GDP). If indirect contributions are included, it is likely that the contribution is close to 8 per cent, based on analysis on the industry s role in global GDP 3. HKIA provides direct employment to about 60,000 people The airport also provides direct employment to about 60,000 people. Based on the UK experience, total airport-related employment (including suppliers of goods and services to airport companies) could be over three times that number 4. An organisation-wide commitment to quality and service ensures that HKIA maintains a critical mass of carriers, destinations and commercial infrastructure. This in turn gives travellers and shippers a wide range of choices and makes Hong Kong a convenient, competitive location for business. These efforts have earned numerous awards in international competitions and customer surveys and from industry associations and trade journals. In October 2006, Travel Trade Gazette named HKIA the Best Airport for the fourth year. And in 2005, HKIA was voted the world s best airport for the fifth consecutive year in the annual Skytrax survey.

1 HKIA and Hong Kong

10 11 HKIA 2025 HKIA, ONE OF THE MOST IMPORTANT GATEWAY HUBS OF CHINA North Korea Japan China South Korea India Laos Macao Taiwan Hong Kong Thailand Vietnam Philippines Malaysia Cambodia Singapore Indonesia Toward 2025 With China s growing economic influence and Hong Kong s increasing integration with the Mainland, the Airport Authority envisions Hong Kong International Airport as one of the most important gateway hubs of China in 2025. In this way, HKIA will continue to contribute to Hong Kong s sustainable economic growth and its integration with the Mainland. Hong Kong International Airport aspires to be one of the most important gateway hubs of China in 2025 By 2025, the Airport Authority envisions that HKIA will: Serve an expanded home market, comprising the Pearl River Delta, the Pan-PRD region 5 and the Mainland as a whole Operate a comprehensive network serving Mainland destinations Provide an unrivalled international network connecting China to the world

12 13 HKIA 2025 CHAPTER TWO The Challenges and Opportunities Ahead

2 The Challenges and Opportunities Ahead HKIA s operating environment is shaped by three key factors: demand, competition and supply. DEMAND Over the next 20 years, the general demand for aviation services is expected to remain positive. The pace of crossborder economic integration will quicken and world trade is expected to experience annual growth of 7-8 per cent, driven by exports from Eastern Europe, Asia and the Mainland 6. The global population is forecast to reach 7.8 billion by 2025, with Asia remaining the world s most populous continent 7 and China the most populous nation 8.

14 15 HKIA 2025 REAL GDP GROWTH FORECAST: CAGR 2005-2025F 8% 7% 6% 5% 4% 3% 2% 1% 0% MAINLAND S TRAVEL POTENTIAL Trips * per Capita 10 1 0.1 0.01 6.9% MAINLAND 4.3% ASIA PACIFIC 2.9% 2.9% 2.9% 2.1% 1.8% HONG KONG US EUROPE JAPAN WORLD Note: CAGR = Compound Annual Growth Rate Source: MVA forecast based on IMF, Economist Intelligence Unit Country Forecasts, International Energy Outlook Singapore New Zealand Qatar Hong Kong UK US Saudi Spain Netherlands Malaysia Australia Sweden Arabia South Korea Germany Japan Thailand Turkey Portugal Canada France Tunisia South Africa Mexico Costa Rica Argentina World average Brazil Vietnam Mainland Indonesia Pakistan India INTERNATIONAL TIONAL TOURIST ARRIVALS ALS BY RECEIVING REGION Million 2,000 1,500 1,000 500 0 Africa Middle East Americas 808 1,561 2005 2020F Asia Pacific Europe Source: World Tourism Organization (WTO) Tourism 2020 Vision, World Tourism Barometer Jan 2006 CAGR 2005-2020F World 4.5% Africa 5.0% Middle East 4.1% Americas 5.1% Asia Pacific 6.8% Europe 3.2% 0.001 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Real GDP per Capita (in 1997 US$) * Passengers carried by airlines domiciled in the country Source: Global Market Forecast 2004-2023, Airbus Analysis based on ICAO, Global Insight, data of 2002 Increasing globalisation characterised by faster communications, improved transportation, increased flows of goods and services, labour mobility, the proliferation of technology and ever-more rapid financial flows should hasten the pace of cross-border economic activities. By 2020, Hong Kong is expected to receive nearly 57 million visitors each year The integration of Hong Kong and Guangdong Province, which has been under way for the last two decades, is likely to accelerate. Services, which comprise nearly 90 per cent of Hong Kong s GDP, will keep growing in importance, while the industrial and economic development of the Pearl River Delta (PRD) will continue. In this environment, Hong Kong s role as a service centre will remain critically important to the Mainland s development. Tourism With a positive economic environment, tourism will continue to grow. International tourist arrivals are forecast to approach 1.6 billion in 2020. The Asia-Pacific region is expected to receive over 400 million arrivals by 2020, with the Mainland attracting 130 million and Hong Kong nearly 57 million. In 2020, the Asia-Pacific region is expected to generate over 400 million outbound journeys, of which the Mainland will represent 100 million 9. In 2005, just 31 million 10 Mainland residents about 2 per cent of the population travelled abroad. Compared with countries like the US, where outbound departures represent over 15 per cent of the population, the Mainland has enormous growth potential.

2 The Challenges and Opportunities Ahead Aviation The aviation industry will benefit from these positive economic and tourism trends. Boeing s long-term forecast shows global passenger traffic increasing at about 5 per cent per annum to 2024, with the Asia-Pacific region growing faster, at nearly 6 per cent. GLOBAL LONG TERM PASSENGER SENGER FORECAST BY BOEING Intra-N America 3.5% Intra-Europe 3.4% Asia Pacific-Middle East 6.2% Similarly, global cargo traffic is expected to expand at around 6 per cent a year. According to an Airbus study, cargo flows from Asia will continue to show the fastest growth, Asia Pacific-N America 5.7% Asia Pacific-Europe 5.3% Asia Pacific-Africa 7.3% Intra-Asia Pacific 5.1% particularly traffic from the Mainland to the US and Europe 11. A long-term forecast by the General Administration of Civil Aviation of China (CAAC) also predicts robust growth. Between 2005 and 2020, both passenger and cargo traffic at Mainland airports are expected to enjoy annual growth rates of over 10 per cent. By 2020, total annual traffic will approach 1.4 billion passengers and 30 million tonnes of cargo nearly five times current numbers. RPKs (Bn) 2005E 2024F CAGR 2005-24 World 3,897 9,497 4.8% Asia Pacific* 1,168 3,484 5.9% * Asia Pacific includes China, Southeast Asia, Southwest Asia, Northeast Asia, Oceania related region flows in Boeing report RPKs = Revenue Passenger Kilometres Source: Current Market Outlook 2005, Boeing CAAC 2020 TRAFFIC FORECAST FOR MAINLAND AIRPORTS Passenger (M) Cargo (M Tonnes) 1,500 1,400 40 1,000 30.0 30 500 284 6.3 540 11.8 20 10 0 2005 2010F 2020F 0 Passenger (M) Cargo (M Tonnes) Source: The General Administration of Civil Aviation of China (CAAC) CAGR 2005-10 CAGR 2010-20 CAGR 2005-20 Passenger 13.7% 10.0% 11.2% Cargo 13.3% 9.8% 10.9%

16 17 HKIA 2025 COMPETITIVE ENVIRONMENT The Mainland HKIA s competitive landscape has become increasingly complex and dynamic. The rapid liberalisation of the Mainland s air services regime allows more international flights to serve Mainland airports, reducing the need for passengers to transfer through Hong Kong. With this in mind, HKIA cannot simply wait for traffic; it must work to attract cargo and passengers in a highly competitive market. HKIA & MAINLAND AIRPORTS INTERNATIONAL DESTINATIONS TIONS AND FREQUENCIES 2000 vs 2005 Year 2000 Year 2005 Weekly Frequencies Weekly Frequencies 4,000 3,000 2,000 HKIA 4,000 3,000 2,000 HKIA Shanghai Beijing 1,000 1,000 Beijing Macao Macao Guangzhou Shanghai Guangzhou Shenzhen 0 Shenzhen 0 0 20 40 60 80 100 120 0 20 40 60 80 100 120 Number of International Destinations Note: Excluding Mainland destinations in HKIA and Macao Int l Airport Source: OAG week 11 Dec 2000 & 12 Dec 2005 HKIA must work to attract cargo and passengers in a highly competitive market That competition is unlikely to diminish. Some RMB140 billion has been budgeted for the expansion of the Beijing, Shanghai and Guangzhou airports and the construction of 42 new airports. By 2010, the Mainland is expected to have three mega hubs, seven large hubs, 24 medium-sized airports and 124 small airports 12. Major Mainland airports continue to enjoy strong growth in passenger and cargo traffic. In terms of total passenger traffic, both Beijing and Shanghai 13 surpassed Hong Kong in 2005. By 2020, the Shanghai, Beijing and Guangzhou airports are expected to top the 2005 passenger volumes at Atlanta and Chicago/O Hare the world s busiest airports and the Mainland aviation market could approach the scale of the US market. 2005 PASSENGER SENGER TRAFFIC HKIA vs MAINLAND AIRPORTS Million Trips 50 40 30 20 10 4 3 2 1 0 0 41.5 41.0 40.7 23.6 16.3 35% 23% 79% 13% 3% 69% SHANGHAI BEIJING HKIA GUANGZHOU SHENZHEN MACAO 2005 CARGO TRAFFIC HKIA vs MAINLAND AIRPORTS Million Tonnes 3.4 2.2 0.8 0.6 0.5 90% 72% 32% 23% 14% 71% HKIA SHANGHAI BEIJING GUANGZHOU SHENZHEN MACAO 4.3 0.2 International Domestic/Mainland Note: Percentage shown refers to international traffic as a percent of total traffic. Shanghai refers to total traffic of Hongqiao and Pudong airports Source: The General Administration of Civil Aviation of China (CAAC), ACI, MIA, AAHK estimates International Domestic/Mainland Note: Percentage shown refers to international traffic as a percent of total traffic. Shanghai refers to total traffic of Hongqiao and Pudong airports. Mainland airport figures include mail Source: The General Administration of Civil Aviation of China (CAAC), ACI, MIA, AAHK estimates

2 The Challenges and Opportunities Ahead HKIA & REGIONAL AIRPORTS INTERNATIONAL DESTINATIONS TIONS AND FREQUENCIES 2000 vs 2005 Weekly Frequencies 4,000 3,000 2,000 KLIA 1,000 1,000 60 80 100 120 60 80 100 120 Regional Hubs Many regional airports are aspiring to be leading hubs in the Asia Pacific. Incheon International Airport plans to become a global top-five hub and a key northeast Asia gateway for passengers and cargo by 2010 14. Singapore and Bangkok are aggressively courting lowfare carriers, developing transfer traffic and targeting growth from both the Mainland and India. Major expansion plans are put in place. Over the long term, for instance, Incheon and Bangkok are targeting 100 million annual passengers. In view of these developments, HKIA s challenge will centre on working with airlines and other business partners to establish a strong network that facilitates more transfer flows through Hong Kong. SUPPLY Narita Taipei Year 2000 Year 2005 Singapore HKIA Bangkok Incheon/Gimpo Weekly Frequencies 4,000 3,000 2,000 Taipei Number of International Destinations Airport capacity is determined by many factors, including airspace, terrain, air traffic control and airport procedures, traffic mix, facilities, access systems, and environmental considerations. HKIA s role as a gateway hub means it must cater to everything from commuter aircraft to jumbo jets, and from business jets to freighters. The scale and complexity of HKIA s operations create unique capacity challenges. HKIA Singapore Bangkok Narita Incheon/ Gimpo KLIA HKIA s role as a gateway hub means it must cater to everything from commuter aircraft to jumbo jets Airspace Constraints Note: Exclude Mainland destinations Source: OAG week 11 Dec 2000 & 12 Dec 2005 There are five major airports in the PRD competing for limited civilian airspace, which comprises two flight information regions (FIR) controlled by Hong Kong and Guangzhou. Hong Kong handles approach control for the Hong Kong and Macao airports, while Guangzhou handles approach control for the Guangzhou, Shenzhen and Zhuhai airports. Several factors including the location of the PRD airports, the orientation of their runways, environmental considerations and the proximity of the FIR boundaries to the airports result in complex approach and departure procedures. In addition, usable airspace for civilian traffic north of Hong Kong s boundary is limited, and flow control measures on flights operating to the east and northeast of the Mainland cause significant delays. The CAAC estimates that total daily runway movements at the five PRD airports will approach 5,000 by 2020, more than double current figures. A working group comprising officials from the Mainland, Hong Kong and Macao governments is exploring possible solutions to these constraints. Runway Capacity Runway capacity is the maximum number of aircraft movements per hour, based on a given service standard. The service standard has two aspects: delays for departure-ready aircraft, which are usually capped at 15-20 minutes in normal conditions, and capacity for contingencies and long-term growth. If airspace constraints were resolved, adjusting HKIA s air traffic control procedures could increase runway capacity. The Civil Aviation Department is seeking ways to make these adjustments. To grow, HKIA must address capacity constraints on the ground and in the air AIRSPACE ISSUE SUE IN THE PRD Vietnam GUANGZHOU FIR PEARL RIVER DELTA Zhuhai Macao China Hong Kong HK FIR About 276 000 km Hainan 2 SANYA FIR HO CHI MINH FIR SINGAPORE FIR MANILA FIR Airspace Boundary the Invisible Wall Shenzhen Hong Kong Taipei Taiwan Gaoxiong TAIPEI FIR Philippines

18 19 HKIA 2025

20 21 HKIA 2025 CHAPTER THREE Growth Strategies

3 Growth Strategies Demand for aviation services is robust. However, demand does not flow naturally to HKIA, because Mainland and regional airports are targeting the same markets. To grow, HKIA must work with key partners and stakeholders to extend its catchment area, improve its network coverage and address its capacity constraints. The Airport Authority has identified the following strategies to consolidate and enhance HKIA s role as one of the most important gateway hubs of China. Expand HKIA s Catchment Area The effective size of HKIA s catchment area is influenced by boundary-control procedures between Hong Kong and the Mainland and by the transportation infrastructure that links the airport to the Pearl River Delta. With the support of the Hong Kong Government, the Airport Authority is making cross-boundary travel more convenient, with initiatives like upstream check-in and simplified customs, immigration and quarantine processes. With the support of the Hong Kong Government, the Airport Authority is making cross-boundary travel more convenient

22 23 HKIA 2025 An efficient surface transport network is essential to the airport s role as a regional hub, and HKIA benefits from the government s transport development activities. The opening of the Hong Kong-Shenzhen Western Corridor in 2007 will enhance road connections to the eastern PRD, while the Hong Kong-Zhuhai- Macao Bridge will provide direct access to the western PRD. Ultimately, these new roads will enhance the flow of passengers to and from eastern Guangdong. High-speed rail networks can expand an airport s catchment area, and the Airport Authority supports the development of a link between HKIA and the regional rail network. Ferries will remain an important mode of cross-boundary transport, contributing to HKIA s position as a multimodal hub. Strengthen HKIA s Mainland Network By expanding to more Mainland destinations, HKIA will become a more convenient gateway for people travelling to and from the Mainland. The Airport Authority s recent joint venture with Hangzhou Xiaoshan International Airport and new management agreement with Zhuhai Airport are important first steps in enhancing HKIA s Mainland network. While the immediate focus will be on maximising the effectiveness of these new initiatives, the Airport Authority will continue to explore opportunities to extend HKIA s Mainland network. Enhance HKIA s International Network One of the Airport Authority s main growth strategies is to work with its airline partners to expand HKIA s international network. HKIA is becoming a more convenient gateway for people travelling to and from the Mainland By increasing the number of destinations and flight frequencies, passengers, freight companies and shippers will enjoy more competitive prices and a greater range of value-added products and services. Over the next 20 years, the Airport Authority will continue to encourage Hong Kong-based carriers to expand their networks and support the introduction of new services through initiatives like the New Destination Incentive Arrangement 15. Promote Hong Kong as a Cargo and Logistics Hub Continuous improvements in freight systems and infrastructure are essential to expanding Hong Kong s position as a regional logistics hub and a cargo gateway for the Mainland. In addition to co-ordinating the air cargo service supply chain, HKIA must maintain a competitive environment for cargo operators, one where capacity is available when required and where operators can develop new, valueadded logistics services to meet customer needs. Streamlined software and systems for Mainland shipments is a key to expanding air-to-air and inter-modal transhipments via HKIA. This includes working with operators and government bodies to enhance the userfriendliness of HKIA s cargo operations, using enhanced customs-clearance technologies and introducing a common e-platform.

3 Growth Strategies SkyCity The Airport Authority works closely with cargo operators to ensure that HKIA offers the right mix of physical infrastructure. In the short term, the Asia Airfreight Terminal expansion will soon be completed, DHL s Phase 2/3 expansion will be commissioned ahead of schedule in 2007 and both the Airport Freight Forwarding Centre and Tradeport have room to grow. A precious metals depository and a new cargo terminal are now under consideration and, in the longer term, the Airport Authority supports the development of a logistics park near Lantau, which will complement the further growth and development of HKIA. Build the SkyCity Development SkyCity will transform HKIA into a comprehensive, service-oriented business, offering a unique airport experience to customers and stakeholders. It is also part of a global trend where businesses, entertainment and residential developments cluster around airports to take advantage of their accessibility and facilities. These airport cities which deliver economic benefits as much as 75 kilometres from the airports at their core can be found in Amsterdam, Dallas-Fort Worth, to name just a few examples 16. SkyCity will transform HKIA into a vibrant, round-the-clock community SkyCity is designed to be a vibrant, roundthe-clock community for passengers, airlines, tourists, local and international businesses and the airport workforce. Its key objectives are to: Promote economic growth, trade and tourism in Hong Kong and the region Generate air traffic to strengthen HKIA s position as a regional and international aviation hub Provide additional facilities and services for passengers

24 25 HKIA 2025 Anticipate and fix problems before they affect services AsiaWorld-Expo Terminal 2/SkyPlaza Hong Kong SkyCity Marriott Hotel SkyCity Nine Eagles Golf Course Using these principles, HKIA introduced one of the world s largest airport wireless LAN networks in 2003 and pioneered the use of radio frequency identification (RFID) baggage management in 2004. HKIA s future development priorities include: Enhancing security with smart card and biometric-based employee and passenger identification systems Simplifying business processes with RFID, 2D barcodes, common-use self-service kiosks, e-tickets, and geographical and traveller information systems Using standardised hardware and software to strengthen HKIA s capabilities as an IT infrastructure provider to airlines, groundhandling agents and other tenants SkyCity Phase 1 features AsiaWorld- Expo (AWE); Terminal 2/SkyPlaza; office developments including the Airport Authority Headquarters (HKIA Tower) and the Airport World Trade Centre; a hotel; SkyPier; and the SkyCity Nine Eagles Golf Course. AWE opened in December 2005, while the remainder of SkyCity Phase 1 will be completed by 2008. Further development is under review. Perfect the E-airport Information technology has evolved from a way to save money into an indispensable part of airport management. In recognition of SkyPier this fact, the Airport Authority introduced an e-airport strategy to ensure HKIA uses new technologies in the most efficient, reliable and cost-effective manner possible. E-airport is based on six management principles: Deploy technology slightly ahead of justin-time to meet business demands Ensure there is no single point of failure in the design of critical airport systems Develop and share airport system architecture with other airports Take ownership of systems and develop core competency without outsourcing Adopt best practices in IT services management and systems delivery Support the Co-ordinated Development of a PRD Airport System There are five major civilian airports in the Pearl River Delta. While demand for aviation services is strong, airspace constraints and differing customer requirements and utilisation levels suggest the PRD could benefit from a co-ordinated airport system. A co-ordinated approach has many potential benefits. It can help to optimise the use of existing facilities and resources, promote economies of scale and allow member airports to tailor their services to specific market segments. In 2006, the Airport Authority established a strategic partnership with Zhuhai Airport, an important step toward better coordination among airports in the PRD.

3 Growth Strategies PRD MULTI-AIRPORT SYSTEM GUANGZHOU Guangzhou Baiyun Int l Airport Shenzhen Baoan Int l Airport The Airport Authority will work with the Civil Aviation Department to maximise runway capacity, assess the feasibility of a third runway and support the development of a PRD airport system PRD AIRPORTS TRAFFIC CHARACTERISTICS IN 2005 Hong Kong (HKG) Guangzhou (CAN) Shenzhen (SZX) Macao (MFM) Scheduled Airlines (#) 72 29 20 9 3 Destinations (#) Within Mainland 38 81 57 12 11 International 104 34 16 20 0 Passengers (M) 40.7 23.6 16.3 4.3 0.7 Cargo (M Tonnes) 3.4 0.6 0.5 0.2 0.0 ATM ( 000) 264 211 151 45 23 Zhuhai (ZHU) Note: Mainland airport cargo figures include mail Source: OAG week 12 Dec 2005, The General Administration of Civil Aviation of China (CAAC), ACI, MIA, AAHK estimates Optimise Supply Zhuhai Airport ZHUHAI Current long-term forecasts estimate that by 2025, HKIA will serve 80 million passengers, handle 8 million tonnes of cargo and 490,000 aircraft movements 17 each year. To meet this demand and continue to support the Mainland s economic expansion and the four pillars of Hong Kong s economy the Airport Authority is focusing on optimising supply. HKIA s original design was based on the 1992 New Airport Master Plan. This document estimated that by 2040 HKIA would handle 87 million passengers, 9 million tonnes of cargo and 380,000 aircraft movements, the majority of which would be from origin and destination traffic. Macao Int l Airport MACAO SAR HONG KONG SAR HKIA Over the past decade, demand has increased dramatically and the mix of aircraft has changed. As a hub airport, HKIA now serves a significant volume of transfer/transit traffic and a growing number of small aircraft. These changes, coupled with supply constraints, mean HKIA must optimise runway capacity to meet growing demand. To provide additional capacity, in January 2006 the Airport Authority announced a HK$4.5 billion investment programme, which includes $1.5 billion in improvements to the Passenger Terminal Building. The remainder will be invested in the airfield, including the construction of a new satellite concourse for smaller aircraft. In the longer term, it is critical to enhance HKIA s runway capacity. The Airport Authority will soon begin engineering and environmental feasibility studies on the construction of a third runway at HKIA. The decision to build a new runway will depend on the results of the feasibility studies. It will also consider stakeholders views and Hong Kong s long-term competitiveness and role as a leading aviation hub. At the same time, the Airport Authority will continue to work closely with the Civil Aviation Department to maximise existing runway capacity and support the co-ordinated development of a PRD airport system.

26 27 HKIA 2025 HKIA 2025 POTENTIAL LAND USE Potential Site for Third Runway Additional Aircraft Stands (up to 2025) Cargo and Aviation Support Facilities (up to 2007) Cargo and Aviation Support Facilities (up to 2025) Commercial District Development Area

NOTES: 1 Airports Council International, 2005 2 Value-added of Air Transport Industry in 2004, CSD, Hong Kong Government; Hong Kong s GDP at 2004 current market prices 3 The Economic & Social Benefits of Air Transport, The Air Transport Action Group, 2005 4 Heathrow Airport Interim Master Plan, 2005 7 Global Tectonics, Fariborz Ghadar and Erik Peterson, 2005 8 World Bank population projection 9 World Tourism Organization Tourism 2020 Vision 10 People s Republic of China, 2005 National Economic and Social Development Statistics, National Bureau of Statistics, 2006 14 Incheon International Airport Website 15 A new, two-year New Destination Incentive Arrangement programme will begin on 1 January 2007 16 Aerotropolis The Rising Airport City, presented by Dr John Kasarda at the 16 th ACI Pacific Regional Conference, 2006 17 MVA Hong Kong Limited and GHK (Hong Kong) Ltd 5 The Pan-PRD region includes Fujian, Jiangxi, Guangxi, Hainan, Hunan, Sichuan, Yunnan, Guizhou and Guangdong provinces; and Hong Kong and Macao 11 Airbus Global Market Forecast 2004-2023 12 People s Republic of China, 11 th Five-Year Plan 6 The Economist Intelligence Unit, 2006 13 Pudong and Hongqiao airports combined HKIA 2025 allows the Airport Authority to plan ahead and enhance the airport s long-term competitiveness

AIRPORT AUTHORITY HONG KONG HKIA Tower 1 Sky Plaza Road Hong Kong International Airport Lantau, Hong Kong Telephone: (852) 2188 7111 Facsimile: (852) 2824 0717 Website: www.hongkongairport.com HKIA 2025 was printed on environmentally friendly paper