Changi Airports International (CAI) has entered a joint venture agreement with Hainan Meilan International Airport (HAK) in China to manage its non-aeronautical commercial operations.
The joint venture, in which Hainan Meilan International Airport 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.
Through the joint-venture partnership, CAI-Meilan aims to transform HAK into an integrated consumer hub and increase consumer spending to enhance its commercial revenue. It will leverage Changi Airport’s brand reputation and expertise in airport commercial management to optimize passenger experience, increase retail offerings, and introduce new digital services such as e-commerce and loyalty programs.
Transforming Haikou Meilan
Located in Haikou city, the capital of Hainan province, HAK serves as a vital gateway for both domestic and international travelers. 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: expanding the variety and quality of both international and local brands, including the introduction of offshore and international duty-free shopping; curating a wide selection of dining options that cater to international and local tastes; enhancing brand visibility through strategic advertising and leisure services, including passenger relaxation and entertainment facilities; and elevating premium passenger experiences with world-class lounge offerings.
Enhancing economic impact and passenger experience
While HAK previously handled 1,400,000 international passengers in 2019, contributing to 6% of overall traffic, the recent figure of 480,000 international passengers in 2023 signals opportunities for further growth in this segment. Through this partnership, the CAI-Meilan joint venture plans to 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.
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 travelers 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 center. 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.”
For more of the top insights into Changi Airport’s airport experience expertise, read Passenger Terminal World’s exclusive feature, “How does Changi Airport’s revamped T2 redefine the airport experience?”, here.