Essay Example on the Hong Kong Airport Business

Air transport is one of the most modern and efficient means of transport. As it is today, almost every nation has an airport that is meant their transportation. Airports have become new hubs for individual countries' economies. This is no different in Hong Kong as there is the dependence of the Hong Kong International airport for their transport activities. One of the main reasons why airports have been associated with economic development is the multiple businesses that are linked with the airport. In any case, business is the way forward for any as there is the creation of employment. In as much as Airport management has numerous challenges, the positive side of it has rewards. The success of the HKIA can be associated with proper management policies as well as their choice of location.

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One of the parameters that can be used to indicate the tremendous growth that the airport has undergone is the number of people that it serves within a year. As of 2015, the airport was handling over sixty-five million passengers per year (Tsui, Balli, Gilbey & Gow, 2014). There is a huge possibility that the numbers have risen to larger figures. The fact that such a young airport can handle such a huge number shows the reason for profitability. Comparing the airport with others of a similar age, the HKIA is far ahead. At the same time, the services provided are of high quality and thus makes the customers have a preference in the airport. The huge traffic experienced in the airport eventually converts to revenue thus economic growth.

The other factor that can be used to show the levels of growth within the airport is a large number of employees within the facility. It is approximated to have around sixty-five thousand employees. In most international airports, it is difficult to find such a huge number of employees. It happens that most airports are struggling to pay the few employees that they can accommodate and still end up making profits. The act that the organization can maintain such a huge workforce at this day and age means that the levels of profitability are extraordinary. On the other hand, a huge workforce promotes easier and better service delivery (Loo, 2008). Additionally, the workforce is never overworked, and thus their levels of competitiveness are high.

The flight destinations are the other factor that can be used to gauge the success story of HKIA. The airport has in most cases been used as a stopover by other airlines while flying to other corners of the earth. In one way or the other, these stopovers have contributed to the huge traffic experienced at the airport. On the same note, other world leading airlines among them Singapore and Ethiopian airlines have formed a partnership with the HKIA thus no conflicts about the stopovers (Gardiner, Ison and Humphreys, 2005). If anything, the stopovers help market Hong Kong to the rest of the world. At the same time, Hong Kong has established its space in the Asian market that was previously dominated by China. The fact that a small nation like Hong Kong can compete on the same platform as the world powers shows how marketed it is.

The other prominent feature used to describe the achievements of HKIA is the cargo traffic evident in the airport. As of 2010, the airport was documented as the leading in cargo traffic (Zhang, 2011). This is to show that a variety of goods are being transported in and out of the Hong Market. While other nations have primarily invested in passenger planes, Hong Kong has gone an extra mile and invested in the cargo plane. Cargo plane made it easier for the transport of goods from one point of the earth to another. At the same time, it is these cargo planes that have helped in the marketing of Hong Kong and Asian products to the outside world. The presence of cargo services has helped to generate more cash inflows and thus economic development.

On the same note, the large number of private companies that operate their aircrafts within the airport can be used as a symbol; of development. Unlike other smaller entities that cannot accommodate other flight companies, the HKIA has over 100 companies within it. However, they operate in contract bases depending on the pre-negotiated terms. The fact that the airport operates in conjunction with these small companies and remain profitable shows the levels of organization within the airport.

On the other hand, the said success of the airport could never be possible were it not for some factors. Among the most prominent factor is the location of the airport. The HKIA is located on an island. By nature, islands are known as a source of tourist attraction. This has offered a double advantage to Hong Kong. This is because the airport that is to service the tourists is within the same destination. The location of this particular airport has played a vital role in its vibrant growth. The location has helped in the increment of both cargo and human traffic. At the same time, ships dock in the island meaning there is the transfer of cargo from the ships to the aircrafts. There is a high possibility that if the airport were in a different location, the traffic would not be as immense as it is today.

The availability of a huge and vibrant workforce is the other aspect that has led to the success of the company (Journal of Air Transport Management, 2004). In normal circumstances, airports are operated by an average workforce. The HKIA has however gone a step ahead and employed a large number of both skilled and unskilled workers. It is the hard work of these individuals that has led to the success story of the airport. While most airports are of the view that a large workforce is unhealthy for business, the airport has capitalized on this strategy to remain competitive. The other important factor that aid the activities of the airport is the transport facilities available within and around the airport. They range from the roads to the sea and rails (Cervero and Murakami, 2009). These alternative forms of transport have been vital to the airport. This because customers can use the rails and roads to access the airport. This is an indication that the alternative forms of transport have been of help as far as the growth of the air sector is concerned. At the same time, there are individuals who access the airport from the seas through the ferries. They later connect to the airport through the roads or rail. The success of the airport can there be credited to the other transport forms.

In as much as other logistics have been vital in the running of the airport, policy generation and implementation stand out. It is due to the various policies that some factors that positively impact the airport have come into place. Issues such as the number of employees as well as the choice of location are a consequence of policies and planning. At the same time, it is through proper policies that the airport has been able to establish larger terminals; thus the airport can accommodate more passengers and cargo. Policies are generated through consultations that involve both the stakeholders as well as other experts in the sector (Zhang and Yuen, 2008). As it is now, the airport management is on a vision 2030 blueprint where it intends to enlarge the runways give room for more aircrafts.

Conclusion

The Hong Kong International Airport is a typical representation of how good policies and reputable management practices can lead to the growth of a business. The fact that the airport is competing at the same level as other international airports in the world shows that their policies are well implemented. However, the airport has made good use of other transport sectors to ease accessibility. The location of the airport has also been vital in its marketing. For any business to do well, the location has to be favorable for business. At the same time, there is enough security in the airport; thus more passengers flock the airport. Similar the HKIA, other airports have to adopt policies that make sense in business.

References

Cervero, R., & Murakami, J. (2009). Rail and property development in Hong Kong: Experiences and extensions. Urban Studies, 46(10), 2019-2043.

Chi-Lok, A. Y., & Zhang, A. (2009). Effects of competition and policy changes on Chinese airport productivity: An empirical investigation. Journal of Air Transport Management, 15(4), 166-174.

Gardiner, J., Ison, S., & Humphreys, I. (2005). Factors influencing cargo airlines' choice of the airport: An international survey. Journal of Air Transport Management, 11(6), 393-399.

Loo, B. P. (2008). Passengers' airport choice within multi-airport regions (MARs): some insights from a stated preference survey at Hong Kong International Airport. Journal of Transport Geography, 16(2), 117-125.

O'Connor, K. (2010). Global city regions and the location of logistics activity. Journal of Transport Geography, 18(3), 354-362.

Tam, M. L., & Lam, W. H. (2004). Determination of service levels for passenger orientation in Hong Kong International Airport. Journal of Air Transport Management, 10(3), 181-189.

Tsui, W. H. K., Balli, H. O., Gilbey, A., & Gow, H. (2014). Forecasting of Hong Kong airport's passenger throughput. Tourism Management, 42, 62-76.

Zhang, A. (2009). Analysis of an international air-cargo hub: the case of Hong Kong. Journal of Air Transport Management, 9(2), 123-138.

Zhang, A., & Yuen, A. (2008). Airport policy and performance in mainland China and Hong Kong. Aviation Infrastructure Performance: A Study in Comparative Political Economy, 159-192.