CHINA. Changi Airports International (CAI) yesterday (19 October) signed a joint venture agreement with Hainan Meilan International Airport Co to manage non-aeronautical commercial operations at Haikou Meilan International Airport.
The CAI-Meilan joint venture, in which Hainan Meilan International Airport Co owns 51% and CAI 49%, will have exclusive rights to manage retail, food & beverage, advertising, leisure and commercially important-person (CIP) services at the Hainan capital’s gateway for ten years, starting from January 2025.
CAI-Meilan aims to transform Haikou Meilan International Airport into an integrated consumer hub and drive consumer spending to enhance commercial revenues.
The partnership plans to leverage Changi Airport’s brand reputation and expertise in airport commercial management to optimise the passenger experience, increase retail offerings, and introduce new digital services such as ecommerce and loyalty programmes.
The airport serves as a key gateway for domestic and international travellers. As of October 2024, it connects 116 domestic and 30 international destinations, solidifying its position as a key player in China’s aviation industry, CAI said.
Key areas of focus for the CAI-Meilan joint venture include:
• Retail Operations: Expanding the variety and quality of both international and local brands, including the introduction of further offshore and international duty-free shopping.
• Food & Beverage: Curating a wide selection of dining options that cater to international and local tastes.
• Advertising and Leisure Services: Enhancing brand visibility through strategic advertising and leisure services, including passenger relaxation and entertainment facilities.
• CIP Lounge Services: Elevating premium passenger experiences with world-class lounge offerings.
The airport has seen strong passenger growth over the years, with a passenger throughput of 24.34 million passengers in 2023, ranking 18th among Mainland China airports.
The capacity to handle 35 million passengers annually highlights the airport’s importance and potential for expansion, CAI noted.
In addition, the airport houses offshore duty-free shops open to domestic travellers – a key component of non-aeronautical revenue growth potential, CAI emphasised. China Duty Free Group runs these operations in both T1 and T2.
In pre-pandemic 2019, Haikou Meilan served 1.4 million international passengers, representing 6% of overall traffic. In 2023, the gradual post-pandemic recovery saw that tally reach just 0.48 million, a difference that signals opportunities for further growth, CAI said.
Through this partnership, the CAI-Meilan joint venture will enhance the airport’s ability to cater to international and domestic travellers, foster better passenger satisfaction, drive revenue growth and strengthen its position as a top regional hub, CAI said.
CAI Chief Executive Eugene Gan said, “Our collaboration with Meilan Airport stems from the shared vision of creating a world-class airport environment that supports both passenger experience and economic development.
“It marks a key milestone in the expansion of CAI’s global footprint and we look forward to working closely with Haikou Meilan International to transform the airport into a hub of choice for travellers and retailers alike.
“With China’s growing economic and tourism potential, this partnership also supports Hainan’s goal to become a global tourism and trade centre.
“By harnessing CAI’s expertise, Haikou Meilan International Airport is poised to attract more international brands, enhance the airport’s infrastructure, and solidify its position as a leader in the region’s travel and trade sectors.” ✈
Note: Incorporated in 2004, Changi Airports International (CAI) is a leading airport investor, manager and consultant in the global aviation market. It designs integrated solutions designed to enable its clients and partners to fulfil their potential of being world-class airports.
CAI, a wholly owned subsidiary of Changi Airport Group, has extensive global experience that spans over 20 countries and more than 60 airports around the world, including Singapore Changi Airport. Also see www.cai.sg
