Changi Airports International signs agreement with Hainan Meilan International Airport to manage Haikou Meilan International Airport’s non-aeronautical business
The 10-year cooperation starting from 2025 aims to transform the Chinese airport into a premier travel and retail hub.
SINGAPORE, 20 October 2024– Changi Airports International (CAI) has entered into a joint venture agreement with Hainan Meilan International Airport Co., Ltd. (00357.HK) to manage the non-aeronautical commercial operations at Haikou Meilan International Airport (HAK). The joint venture, in which Hainan Meilan International Airport Co., Ltd. owns 51% and CAI 49%, will have exclusive rights to manage retail, food and beverage, advertising, leisure, and commercially important-person (CIP) airport services at the Chinese airport for a period of 10 years, starting from January 2025.
The partnership will leverage Changi Airport’s expertise in airport commercial management to transform Haikou Meilan International Airport into an integrated consumer hub.
Through the joint-venture partnership, CAI-Meilan aims to transform HAK into an integrated consumer hub and level up consumer spending to enhance its commercial revenue. It will leverage Changi Airport’s brand reputation and renowned expertise in airport commercial management to optimise passenger experience, increase retail offerings, and introduce new digital services such as e-commerce and loyalty programmes.
Transforming Haikou Meilan International Airport into a premier travel hub
As of October 2024, Haikou Meilan International Airport connects 116 domestic destinations and 30 international destinations.
Located in Haikou city, the capital of Hainan Province, HAK serves as a vital gateway for both domestic and international travellers. As of October 2024, the airport connects 116 domestic destinations and 30 international destinations, solidifying its position as a key player in China’s aviation industry.
Key areas of focus for the CAI-Meilan joint venture include:
Retail Operations: Expanding the variety and quality of both international and local brands, including the introduction of offshore and international duty-free shopping.
Food & Beverage: Curating a wide selection of dining options that cater to international and local tastes.
Advertising and Leisure Services: Enhancing brand visibility through strategic advertising and leisure services, including passenger relaxation and entertainment facilities.
Enhancing economic impact and passenger experience
HAK has shown significant growth over the years, with a passenger throughput of 24.34 million passengers in 2023, ranking 18th among all airports in China's mainland. The airport's capacity to handle 35mppa [1] highlights its importance and potential for further expansion. In addition, the airport houses offshore duty-free shops where domestic travellers are able to purchase duty-free merchandise, which is a key component of non-aeronautical revenue growth potential.
Haikou Meilan International Airport saw a passenger throughput of 24.34 million passengers in 2023, ranking 18th among all airports in China
While HAK previously handled 1.4 million international passengers in 2019, contributing to 6% of overall traffic, the recent figure of 0.48 million international passengers in 2023 signals opportunities for further growth in this segment. Through this partnership, the CAI-Meilan joint venture will enhance the airport’s ability to cater to both international and domestic travelers, foster better passenger satisfaction, drive revenue growth and strengthen its position as a top regional hub.
Mr Eugene Gan, Chief Executive of CAI, said, “Our collaboration with Meilan Airport stems from the shared vision of creating a world-class airport environment that supports both passenger experience and economic development. It marks a key milestone in the expansion of CAI’s global footprint and we look forward to working closely with HAK to transform the airport into a hub of choice for travellers and retailers alike.
“With China’s growing economic and tourism potential, this partnership also supports Hainan’s goal to become a global tourism and trade centre. By harnessing CAI’s expertise, HAK is poised to attract more international brands, enhance the airport’s infrastructure, and solidify its position as a leader in the region’s travel and trade sectors.”
Changi Airport Group (Singapore) Pte Ltd (CAG) (www.changiairportgroup.com) was formed on 16 June 2009 and the corporatisation of Singapore Changi Airport (IATA: SIN, ICAO: WSSS) followed on 1 July 2009. As the company managing Changi Airport, CAG undertakes key functions focusing on airport operations and management, air hub development, commercial activities and airport emergency services. It also manages the Changi East development project, which includes the building of a new Terminal 5 for Changi Airport. CAG also operates Seletar Airport (IATA: XSP, ICAO: WSSL) and through its subsidiary Changi Airports International, invests in and manages airports around the world.
As one of Asia’s most connected international aviation hubs, Changi Airport links Singapore to some 150 cities globally, with close to 100 airlines operating more than 6,900 flights weekly. Jewel Changi Airport, a multi-dimensional lifestyle destination, opened in April 2019, bringing Changi Airport’s shopping and dining offering to over 600 F&B and retail outlets. The world’s most awarded airport, Changi has won 680 accolades for its consistent and excellent airport staff service, passenger experience and safety standards.
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