Bangkok--17 Oct--Centre for Asia Pacific Aviation The entry of an airline into a global alliance has profound implications for airport operators. Alliance members generally seek to cohabitate at a single terminal to enhance connectivity between flights. In a year of surging alliance activity (eg oneworld has had its biggest year of expansion in 2007 since its launch), coupled with rapid international traffic expansion and shifting airline strategies (including new airline models), the pressures on airports are intensifying. Meanwhile, calls for reductions in airport charges continue unabated. (Following on from last week’s series of Perspectives in Airport Business Daily on the charges issue, Canada’s Toronto Airport — among the world’s most expensive — has announced plans to cut landing charges by 3.1% and terminal charges by 4.7% from 01-Jan-08, “in order to remain competitive", according to the Greater Toronto Airports Authority). Cairo is one of the airports to receive the global alliances spotlight soon. EgyptAir has been accepted to join the Star Alliance within 18 months and in order to implement the Star Alliance’s “Move under one Roof” concept, EgyptAir and the Star Alliance member carriers operating to Cairo will relocate to the new Terminal 3 once it opens in 3Q08. According to Star, talks to this effect are already under way with the airport authorities, “to ensure the creation of another hub with an optimal customer experience”. Cairo’s forward infrastructure plans were a key factor in the selection of EgyptAir as a Star candidate. At the end of 2004, Cairo Airport awarded an eight-year contract to Fraport to develop the 165,000 sqm Terminal 3, which will have capacity for 11 million international and domestic passengers p/a. In addition to the new Terminal 3, Cairo Airport is also constructing a fourth runway, developing a Cargo City, constructing a new Air Traffic Control Tower and increasing its parking facilities. New service facilities are also planned, including a hotel, business and shopping centres. Meanwhile, the Chinese government has stated it intends to maintain three major airline groups in the Mainland, signaling consolidation of the sector is unlikely, at least in the short term. Even so, Chinese airports face the challenge of accommodating rapid demand growth and the imminent entry into the Star Alliance of Air China and Shanghai Airlines, as well as China Southern into SkyTeam. Beijing Capital International Airport has already announced a reshuffle of carriers at its facilities to meet the changing dynamics. The new Terminal 3 (opening in 29-Feb-08) will house Air China and its Star partners. T2 will be used jointly by China Eastern and China Southern (which is currently using T1, which it acquired exclusive use over a few years ago, but is rapidly outgrowing). T1 will now be used by Hainan Airlines, which has also made Beijing its adoptive home. Note to editors: About Centre for Asia Pacific Aviation The Centre for Asia Pacific Aviation (CAPA) was founded in 1990 and has since built an international reputation as the leading specialist aviation consultancy in the Asia Pacific, the Indian Subcontinent and Middle East regions. CAPA Consulting’s strategic advisory services are supported by the extensive information and data services provided by the Centre’s Market Research Unit to aviation industry leaders every day. The Centre also holds regular Aviation Leadership Summits, which provide unique opportunities for the exchange of ideas and experiences. Head Office, Sydney: Derek Sadubin, Chief Operating Officer Aurora Place, Level 4, 88 Phillip St Sydney PO Box N777, Grosvenor Place Sydney, NSW Australia 2000 Email: [email protected] Southeast Asia Regional Office: Richard Pinkham, Regional Director, Southeast Asia Email: [email protected] Indian Subcontinent and Middle East Office: Kapil Kaul, CEO Indian Subcontinent & Middle East Email: [email protected] UK/Europe Office: David Bentley, UK Associate Email: [email protected] North America Regional Office: Martti Raito, Regional Director, North America Email: [email protected] North Asia Representatives: Korea: Kyung-sup Lee. Email: [email protected] Japan: Reiko Sonoyama. Email: [email protected] More information is available on the Centre’s website: www.centreforaviation.com