Gate One event focuses on privatisation issue – 25/05/05

SINGAPORE. Candid debate among the panellists and with the audience characterised the second annual GATE ONE Global Airport Trade Event in Singapore last week.

The two-day conference on 19 and 20 May was opened by keynote speaker Airport Authority Hong Kong CEO David Pang, who gave an impassioned address.

Speaking without notes he set the scene by reminding the audience that every element of the airport experience should be memorable and enjoyable for the traveller and visitor, with examples of how Hong Kong is achieving that with its ambitious SkyMart and SkyPlaza projects.

The discussion on “˜A Changing Environment’ moderated by Doug Newhouse of Travel Retail Business was also stimulating, with delegates responding to the views on market liberalisation expressed by panellists Alessandra Piovesana, Managing Director, Nuance Watson and Robbie Gill, Managing Director, Design Solution

Peter Harbison, Managing Director of the Centre for Asia Pacific Aviation, a specialist aviation management consulting company, is one of the region’s foremost aviation and tourism strategists. He presented a detailed analysis of the drivers of privatisation, its potential benefits and problems.

“˜Expanding Commercial Opportunities’ was the subject of another strong panel discussion moderated by Martin Moodie of The Moodie Report. The panellists were Colin Hargrave, MD UK Airport Retail, BAA; Stephen Vineburg, Head of Infrastructure Investment, Colonial First Estate; Rene Riedi, COO Eurasia & Asia, Dufry; and Nadine Heubel, Travel Retail Manager, Hugo Boss.

The basic message was that it is not a question of ownership being private or state – what matters is the quality and commitment of the management process.

The discussion on “˜A Changing Environment’ moderated by Doug Newhouse of Travel Retail Business was also animated, with delegates responding positively to the views on market liberalisation expressed by panellists Alessandra Piovesana, Managing Director, Nuance Watson and Robbie Gill, Managing Director, Design Solution.

The “˜tiger of the low cost industry’ Tony Davis, CEO Tiger Airways, gave a lively illustration of how a low-cost no-frills carrier can quickly become a force to be reckoned with in Asia. He said that to be successful “˜low cost carrier’ has to be more than just a label; it needs to be a philosophy. “Everything we do is focused on keeping costs down,” he underlined.

Keen debate was the feature of a panel discussion on “˜Expanding Commercial Opportunities’, moderated by Martin Moodie of The Moodie Report. The panellists were Colin Hargrave, MD UK Airport Retail, BAA; Stephen Vineburg, Head of Infrastructure Investment, Colonial First Estate; Rene Riedi, COO Eurasia & Asia, Dufry; and Nadine Heubel, Travel Retail Manager, Hugo Boss

Kerrie Mather, CEO, Macquarie Airports, Mike Tyquin, General Manager – Regional, Analysis & Development SE Asia, EYE Corp and Bruce Musick, Executive Director, SkyServ Holdings each presented their take on how best to exploit the “˜Sources of Opportunity’ at airports.

– Kerrie Mather said that non-aeronautical revenues, the fastest growing income stream, currently generates on average 40-50% of airport revenues and should be actively managed.

– Mike Tyquin outlined the apparent benefits of strategically managed advertising – “˜it should be easy to buy, effective and accountable’.

– Bruce Musick urged landlords and suppliers to “˜push the envelope’ and combine high standards of design with high quality food and beverage including local food concessions, packages designed to suit the passenger profile and mobile units for gate lounges.

– Lars Crone of Select Service Partner added that short contracts awarded to F&B suppliers were a disincentive to investment and that they should be consulted at the design stage of the airport construction

Animated debate and a varied programme characterised the second annual GATE ONE Global Airport Trade Event

Allen Chien, Managing Director and Head of Transport & Logistics Sector Investment Banking in Asia, HSBC gave a well-informed appraisal of the air transport scene in China which he described as “growing at a very exciting pace in terms both of passengers and cargo”.

He identified key challenges including the desperate need for investment, the lack of infrastructure, staff efficiency and product quality.

In an honest and amusing presentation Anindya Roychowdhury, Associate Director, KPMG India outlined the enormous problems facing India as it tries to bring its air transport sector into the 21st century. Key to this is the call for US$50 billion in investment in 2005-6 alone, much of which is expected to come from privatisation of airports.

Of the 12 international airports, 89 domestic and 26 civil enclaves at military airfields, only 10 airports made a profit last year. To date only one – Cochin – is in private ownership.

The presentations from this conference will shortly be available from the organiser’s website at www.tfwa.com

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