CHIEF EXECUTIVE OFFICER’S STATEMENT

Hong Kong International Airport

08

Annual Report 2019/20

09

DEAR STAKEHOLDERS,Hong Kong International Airport (HKIA) encountered unexpected headwinds in fiscal 2019/20, ended 31 March 2020. The international trade dispute and social unrest in Hong Kong reduced passenger and cargo throughput at HKIA in 2019. Then the COVID-19 pandemic brought passenger traffic to a standstill as quarantine and travel restrictions were widely introduced in major destinations and in Hong Kong.

In 2019/20, passenger numbers and cargo throughput were 60.9 million and 4.7 million tonnes, representing decreases of 18.9% and 7.3%, respectively. Flight movements fell 12.0% year-on-year, to 377,420.

SAFEGUARDING OUR PEOPLEWhen COVID-19 struck Hong Kong, we responded quickly to ensure the safety of passengers and airport staff. We stepped up cleaning schedules and deployed cutting-edge robots to thoroughly disinfect the terminal buildings and passenger facilities. Extra hand-sanitiser dispensers were installed in high-traffic areas and we used public address system announcements, posters, videos and social media to strengthen awareness of pneumonia and respiratory tract infections.

As of May 2020, it was still difficult to tell when passenger demand would recover materially. Amid these challenges, the Airport Authority launched four rounds of relief measures worth some HK$4.6 billion for the airport community, including airlines, retailers, caterers and franchisees. However, owing to a significant revenue shortfall and committed operating and capital expenditures, we will soon need to raise funds from the financial markets to strengthen our financial capacity.

The present downturn is unprecedented, but we are confident that when the disease subsides, air passenger demand will rebound. For this reason, we are maintaining our long-term development plans to meet future demands.

The present downturn is unprecedented, but we are confident that when the

disease subsides, air passenger demand will rebound. For this reason, we are

maintaining our long-term development plans to meet future demands.

CHIEF EXECUTIVE OFFICER’S STATEMENT

Hong Kong International Airport

10

UNVEILING A NEW EXPERIENCEDuring the year, we continued to work on a series of enhancement projects that will enrich the airport experience and prepare HKIA for future demand.

In 2019/20, we made solid progress upgrading Terminal 1 (T1) with a vibrant new look and an elevated ambience.

We finished the revamp of the East Hall food court with an interior design inspired by Hong Kong’s hills and peaks. Three hundred seats were added, bringing the total to 1,200. Fresh dining concepts, such as a sushi bar and a celebrity chef-branded outlet, were introduced. The food court now offers a pre-ordering service to make dining even more convenient.

This year, we began redesigning HKIA’s washrooms. When renovations are completed in mid-2021, a total of 108 washrooms in the terminal buildings will have bright, modern interiors with innovative features, such as basins with built-in hand dryers.

Meanwhile, works continued on the Sky Bridge, which will link T1 and the North Satellite Concourse (NSC) when it opens in 2020. During the year, prefabrication of the bridge was completed and we began installing its equipment and systems. The 200-metre span, which is expected to be the world’s longest airside bridge, will make connections to the NSC fast and easy. It will also provide spectacular views of the apron, making HKIA a memorable part of travellers’ journeys.

BUILDING A FUTURE-READY AIRPORTAirport development is increasingly shaped by new technologies. At HKIA, we constantly explore technological innovations to optimise our operations.

In December 2019, for example, we launched an autonomous electric tractor for baggage delivery in the airport restricted area. Equipped with optical radar, cameras and GPS, the driverless tractor can avoid obstacles and operate in all weather conditions. HKIA is the first airport to use a fully autonomous electric tractor for baggage delivery in a live operating environment.

During the year, we doubled the number of high-speed Wi-Fi zones in the terminal buildings from 15 to 30 and started adding 600 new Wi-Fi access points. Meanwhile, we developed an independent mobile network to ensure reliable and secure connectivity for airport operations, and are rolling out the use of 5G technology at HKIA.

Annual Report 2019/20

11

Every day, the airport produces vast amounts of data that can be mined for operational insights and better understanding of passenger behaviours. We are making use of this data in a wider range of airport operations. In 2019/20, we established a department to accelerate HKIA’s transformation into a data-driven airport, thereby enhancing efficiency and delivering a more seamless, personalised travel experience.

A BRIGHT FUTUREIn 2019/20, HKIA faced the most difficult year in its history. I would like to express my deep gratitude to the airport community and our business partners for their perseverance and support during this crisis.

As trying as it was, the past year would only be a temporary setback. HKIA is a leading international hub, and I am confident that our traffic levels will recover. I look forward to working with the airport community to revitalise our city’s economy and take HKIA to new heights.

Fred LamChief Executive OfficerHong Kong, 25 May 2020