Indonesia Commits to Developing Low-Cost Airport Terminals

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The Ministry of Transportation has given its support for the development of airport terminals specifically catering to low-cost carriers, as part of Indonesia’s efforts to lower travel costs and boost tourism.

“Be it specialized terminals or airports for low-cost carriers, we will certainly explore the matter further,” the ministry’s civil aviation director general, Agus Santoso, said on Tuesday (24/07), as quoted by Antara.

Indonesia took a cue from Malaysia and Singapore, which have been operating low-cost terminals over the past several years. The two neighboring countries last year attracted 26 million and 17 million foreign tourist arrivals, respectively. Indonesia only managed to attract 14 million.

Low-cost terminals, which provide only basic amnesties, could allow airlines make significant cost savings. This may allow them to offer cheaper tickets and in turn, attract more travelers, Agus said.

“The low costs are derived from minimal services, but we will nonetheless always uphold safety, whether it be for low-cost airlines, terminals, or even airports,” he said.

The country’s largest airport operator, Angkasa Pura II, earlier announced a plan to transform Terminal 1 and Terminal 2 at Soekarno-Hatta International Airport outside Jakarta into Indonesia’s first low-cost terminals.

The terminals are undergoing a massive revamp to update and expand facilities dating back to their opening in 1985 and 1992, respectively. Angkasa Pura II president director Muhammad Awaluddin said the company will use the opportunity to transform them into low-cost terminals.

Awalludin said he will reduce human involvement in low-cost terminal services, which would further trim costs. Terminal 4 of Singapore’s Changi Airport has managed to achieve that by implementing automated machines from the check-in counters, through baggage storage to immigration counters.

“Is Changi low in quality? No. Did Changi abolish many of its functions? No. So we will match that standard,” he said.

Awaluddin said Soekarno-Hatta Airport’s low-cost terminals would further benefit budget airlines currently operating from there, including the country’s largest, Lion Air and Citilink.

Note: Angkasa Pura is the name used by two separate state enterprises of the Indonesian Department of Transport that are responsible for the management of airports in Indonesia. The two companies are PT Angkasa Pura I and PT Angkasa Pura II. Angkasa Pura I has its head office in Jakarta, while Angkasa Pura II has its head office at Soekarno-Hatta International Airport in Tangerang, Banten.

Source: Retailnews Asia

Mapping Africa’s biggest airport projects

Airport development is surging across Africa, as a number of factors drive aviation demand across the continent. With IATA projecting a 5.1% growth in passenger numbers across the region by 2035, what are some of the most exciting African airport projects set to drive further growth across the continent?
Cape Town International has received the green light for a host of works, including expansions at both its domestic and international terminals.
Until recently, Africa’s aviation market was faring poorly, due to several decades of underinvestment and mismanagement, as well as poor safety records in air transportation.

But with sweeping changes brought in by regional and global development banks, including the World Bank and the International Finance Corporation in the early 2000s, accountability and transparency flourished, along with foreign investment.

In 2015, the International Air Transport Association’s (IATA) director general Tony Tyler highlighted the true potential for growth across the continent, stating that aviation is the “lifeblood of Africa”, supporting 6.9 million jobs and $80bn in GDP.

In the same speech, at the IATA Africa-Middle East Aviation Day in Nairobi, he also acknowledged the challenges and troubles that remained, such as ill-conceived regulation, poor safety oversight, inadequate and costly infrastructure, and restrictive air-service agreements.

This year, that potential was officially recognised by the signing of a Memorandum of Understanding (MoU) between IATA and the African Airline Association (AFRAA), with the two committing to work together to deliver capacity building projects, promote regional air connectivity, and encourage data exchange among aviation stakeholders – all with the view to advance the sector.

New Addis Ababa International Airport

Africa’s flagship aviation project is currently taking place in Ethiopia, where a brand new $4bn airport is being built in the capital city Addis Ababa.

Estimated for completion in 2024, the New Addis Ababa International Airport will be built at a yet undisclosed location, but with four runways, it aims to be bigger than London Heathrow and serve as many as 120 million passengers every year.

The new airport is hoped to consolidate the market position of the country’s most profitable airline Ethiopian Airlines, while also turn Ethiopia into a major aviation hub for East Africa.

The city’s current airport, Bole International, is also currently undergoing a $350m restoration, expected to be ready later this year.

Cape Town International Airport

As Africa’s third largest airport, Cape Town International got the green light for a host of works, including expansions at both its domestic and international terminals, as well as runway rehabilitation at a cost of $540m. The scheme is expected to spell new growth not just for the airport, but for the whole region, as well as accommodate extended passenger processing capacity in South Africa.

As part of the undertaking, the existent runway is to be realigned, and it will receive new parallel and rapid exit taxiways. The improvement works will allow some of the world’s largest aircraft to land, spurring new tourism and freight transport into South Africa.

Johannesburg OR Tambo International Airport

As South Africa’s biggest international airport, Johannesburg Tambo handles around 1.2 million passengers per month.

In June, UK-based consultancy Mace announced a new contract with Airport Company South Africa for airport improvement projects, valued at $70m. These will refurbish two of the region’s most prominent airports, namely OR Tambo International and Cape Town International Airport. According to a press release from the consultancy, the improvements will include five new seating areas, and the renovation of a portion of its airside corridor at Tambo.

Next year will mark a decade since Tambo completed its biggest renovation project to date, which turned it from a disjointed series of buildings to the global hub it is today.

Beyond the current restoration, the Ekurhuleni Aerotropolis vision plans to put Tambo at the heart of a bone-fide aerocity, complete with retail outlets, hotels, leisure and entertainment, conference, convention and exhibition venues, office buildings, medical facilities and industrial, manufacturing and distribution complexes.

Casablanca Mohammed V International Airport

Morocco’s Mohammed V International Airport is currently preparing to open its doors to millions more passengers as soon as a decade-long refurbishment of its Terminal 1 building wraps up in July.

The revamped facility is expected to double the airport’s capacity from seven to 14 million passengers. According to local news sources, the terminal consists of 84 check-in counters and 17 boarding gates, while Moroccan tourism giant Atlas Hospitality plans to build two hotels in the airport’s vicinity.

On 1 July, Oman Air opened a new route into the airport, between Casablanca and Muscat, which is hoped to strengthen the bilateral relationship between the two countries. The news comes after the annual Airport Service Quality awards rated Mohammed V International the best in Africa.

Entebbe International Airport

Uganda’s Entebbe International Airport is also undergoing vast expansion works at a total cost of $552.9m, the first phase of which is currently nearing completion, according to the Civil Aviation Authority.

The project, backed by the Export Import Bank of China, includes runway construction and rehabilitation, terminal construction and modernisation, airfield lighting and communication solutions.

In July, the airport will celebrate the completion of the first phase, which involved the bulk of the works, such as the construction of a new passenger terminal building, the relocation and expansion of the cargo terminal building and the lengthening of the main runway, among others.

The last phase, to be completed in 2033, will also bring a new control tower and the rehabilitation of the current runways.

Source: Airport Technology

Philippines: large business groups offer to operate regional airports

Big business groups, including those led by businessman Dennis A. Uy and the Aboitiz family, are again seeking to operate and develop select provincial airports that were once part of the public-private partnership (PPP) pipeline.
This came after the Department of Transportation (DOTr) rejected earlier offers seeking to operate and develop multiple airports in one go.
Interested groups were told the DOTr would now only entertain offers for individual air gateways, said Manuel Antonio L. Tamayo, DOTr undersecretary for aviation.

He said Uy’s Chelsea Logistics Holdings Corp. submitted an offer for the Davao International Airport, the country’s third busiest air gateway, while a unit of Aboitiz Equity Ventures submitted an unsolicited proposal for the New Bohol International Airport in Panglao, opening this August.
Ruben Reinoso, DOTr undersecretary for planning, also noted a group called “Mega Seven” submitted a separate unsolicited offer for the Kalibo International Airport, one of two gateways to Boracay Island.
“These are being evaluated,” Tamayo said.
As noted, the DOTr had earlier rejected separate offers from Chelsea and Aboitiz.
Last February 5, Uy-led Chelsea Logistics submitted a P67-billion offer to expand and operate Davao, the country’s largest gateway after Manila and Cebu, and New Bohol via a 30-year concession.
On March 7, Aboitiz InfraCapital offered to expand and operate the airports in Iloilo, Bacolod, Laguindingan and New Bohol. Its offer involved a P148-billion investment and a 35-year concession.

“We don’t like to bundle. Many of these airports like Panglao and Davao can stand on their own. They are financially viable,” Tamayo said.
Davao, for example, handles between three to four million passengers per year versus its capacity of two million passengers annually.

The Aquino administration initially packaged the regional airports in bundles. Its rationale was to entice private sector investments in less viable airports since these would be offset by airports with better business prospects.
Tamayo said they would also separately bid out airports in Iloilo, Bacolod and Laguindingan, which currently have no offers.

Source: Inquirer.net

Video New Bohol International Airport in Panglao:

 

Siem Riap (Cambodia): new airport to break ground after election

Construction of a new international airport in Siem Reap will start after the national election at the end of this month, according to a project representative.

Zou Yuhui, vice president of China’s state-run Yunnan Investment Holdings Ltd., the company in charge of the project, told news agency AKP last week that the main construction work for the project will definitely start this year, later adding that it is most likely to begin after the national polls at the end of this month.

Work to prepare the site – including clearing, compacting and levelling the ground – has already been going on for months, he said.

The new airport, which is expected to cost close to $1 billion, is being built on a 750-hectare property in Sotr Nikom district on the outskirts of Siem Reap City. The project is expected to be completed in two to three years.

The airport will be built in three phases. The company will invest $500 million for the first and second phases, which will allow medium-sized passenger aircraft like the Boeing 737 and Airbus A320 to land. Another $300 million will be allocated for the third phase.

Last October 2017, the agreement to build the new airport was signed between the Cambodian government and Yunnan Investment Holdings. The agreement gave the Chinese firm the exclusive right to run and manage the airport concession for 55 years under a build-operate-transfer (BOT) scheme.

Source: Khmer Times