298 Transport
suppliers of airport services new business opportunities in the Mainland. Airport services that are covered under CEPA II include contract airport management, airport management training and consultancy, and seven types of air transport ground services.
Excellent airport services
To meet the ever-increasing customer expectations, HKIA spares no effort to attain the highest service standards in all areas of airport operation. Facility enhancements and service improvements are ongoing. The airport's shopping mall, Hong Kong SkyMart, which was substantially expanded in March, offers customers a shopping experience that matches any high-end downtown shopping mall. SkyMart currently is home to a wide array of over 200 shops and restaurants, including 25 top-line brand names.
The AA also launched the Customer Services Excellence Programme with participation by all major service providers in the airport, including government departments, airlines and retail and catering licensees, to promote the culture of providing the best possible level of hospitality and services to the airport's customers.
With the dedication and commitment of the whole airport community, the HKIA itself is fast becoming one of Hong Kong's most successful brand names. For the fourth year in a row, it was voted Airport of the Year (2004) in a poll conducted by UK Skytrax Research. In recognition of it HKIA's high service standard, the International Air Transport Association awarded it the title of Best Airport Worldwide (Special Recognition).
Preparation for Growth
The fast growing aviation market in the Mainland brought growth opportunities as well as new challenges to HKIA. In the face of intensifying competition from other airports in the region, HKIA has been taking proactive measures to maintain its competitive edge.
In September, the AA re-introduced the New Destination Incentive Arrangement (NDIA) to encourage existing and new airlines to operate flights from HKIA to new destinations. In respect of all qualifying flights, a 50 per cent landing charge rebate is offered for the first year of operation, followed by a 25 per cent rebate in the second year.
To cope with the robust growth in demand for air cargo services, various enhancements of air cargo facilities and services were made. A new express cargo terminal, DHL's Central Asia Hub, was opened at HKIA in August. As the largest facility of its kind in the region, the 18 200 sq.m. terminal provides an annual handling capacity of 160 000 tonnes. Asia Airfreight Terminal (AAT) has also signed an agreement with the AA to expand its handling capacity from the present 0.4 million tonnes per annum to over 1.3 million tonnes in 2006. Also, four additional freighter parking stands will be built, bringing the total number to 25 by 2006.
Other value-added facilities are in the pipeline to meet the diverse needs of HKIA's customers. Construction of AsiaWorld-Expo is in progress; it will provide more