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venture with the Zhuhai Municipal People's Government to manage the Zhuhai Airport. The arrangement went into effect on October 1, 2006.

Airport Services

HKIA fulfils the ever-increasing expectations of customers by offering the highest standard of service. In addition to state-of-the-art facilities to support hassle-free flow of passenger and cargo, the airport's shopping mall, Hong Kong SkyMart, currently home to over 200 shops and restaurants including 25 top-line brand names, gives customers a shopping experience comparable to that offered by any high-end city centre shopping mall.

Indeed, HKIA itself is one of Hong Kong's most successful brand names, thanks to the dedication and commitment of the whole airport community. In 2006, HKIA received Travel Trade Gazette's Best Airport Award, for the fourth year in a row.

Preparation for Growth

The Mainland's fast-growing aviation market brings growth opportunities as well as new challenges to HKIA. 'HKIA 2025', the latest Master Plan of the Airport Authority published in December 2006, re-examined the airport's long-term vision, growth strategy and facility planning directions, in the light of growing demand and intensifying competition.

With China's fast-growing international trade, the demand for aviation service between Mainland cities and international destinations will see continuous strong growth in the coming 20 years. Leveraging on its well established international network, HKIA aspires to be one of the most important gateway hubs of China, maintaining at the same time its status as a leading international aviation hub in Asia. The Airport Authority envisages that by 2025, HKIA will handle 80 million passengers and 8 million tonnes of air cargo each year.

To meet the challenges and opportunities ahead, HKIA will continue to expand its catchment area in the PRD region through cross-boundary ferry and coach. connections and make cross-boundary travel more convenient. The Airport Authority will continue to encourage airlines to expand their networks of both Mainland and international destinations. Furthermore, the Airport Authority is working with the Civil Aviation Department (CAD) to maximise the existing runway capacity. The studies on the engineering and environmental feasibility of building a third runway will soon be initiated.

On facility planning, to cater for the increasing traffic demand between HKIA and the Pearl River Delta region, a permanent cross-boundary ferry terminal, SkyPier, will be built to link up with passenger terminal buildings using the Automated People Mover system. In December 2006, the Airport Authority issued invitations for pre- qualification proposals for building a new cargo terminal at HKIA. The new terminal will provide the needed extra capacity in time to meet the additional demand in the 2010s. A precious metals depository will be set up in HKIA to provide a central, secure storage facility for traders and institutional investors, and to serve as a physical settlement platform for Asian markets. The Airport Authority has signed an

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