July 2018 ACI Asia-Pacific HR Bulletin – Issue 15

Issue 15 – July 2018

• Airport’s Corner Narita International Airport Taoyuan International Airport

• Regional HR Committee Spring Meeting Concluded in Narita, Japan

• Another Two DNA Seminars Delivered in the Asia-Pacific Region

• ACI Asia-Pacific Announces Young Executive of the Year Award 2018

• Human Resources Excellence Recognition Program 2019 is Open for Application

• Sharing from ACI Global Training: Launch of the new Airport Financial Management course

• ACI Asia-Pacific Regional HR Committee Members

• ACI Global Training Course Calendar 2018 (Jul – Dec) in the Asia-Pacific Region

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 2

Airport’s Corner - Narita International Airport

Changes in Management Practices at Narita Airport Narita Airport is facing huge challenges such as expansion projects and preparation for the Tokyo 2020 Olympic / Paralympic Games and has to secure more labor force. However, as Japan faces a long-term decline in the working-age population, it is getting difficult to obtain labor at the airport. In the situation, Narita Airport is implementing change management initiatives. 1. Figures for Narita International Airport

Narita Airport has been the gateway to the Tokyo Metropolitan Area as well as to Japan since its opening in 1978, and it has been accommodating increasing demand for air transportation. There are three terminal buildings and two runways at Narita Airport. It handled 250 thousand landings and departures in 2017, with 40 million passengers and 2.2 million tons of cargo. Today approximately 670 companies and organizations are operating in Narita Airport, with as many as approximately 43 thousand of their staff. With more airlines operating at Narita Airport, staff numbers have increased recently.

2. Impact of Demographic Changes in Japan

The working-age population in Japan has been decreasing while the percentage of elderly in the population has been steadily increasing. This trend causes serious problems not only at Narita Airport but all over Japan. One of these is a shortage of workers. It is difficult to obtain labor at the airport and Narita Airport need to offer an environment that will attract more diverse human resources such as female and older members of society.

3. Demand Forecast at Narita Airport

With the country’s dwindling population, the Japanese government is boosting the tourism industry and working to expand inbound tourism numbers as one of its growth strategies. Therefore, Narita Airport is required to adapt itself to increasing inbound tourists. According to demand forecasts by the Ministry of Land, Infrastructure, Transport and Tourism, Narita can expect more than 300 thousand aircraft movements in the 2020s and may have 500 thousand in the early 2030s. This forecast is consistent with the target set by the government of 40 million inbound tourists to Japan in 2020, and 60 million in 2030. This forecast also means that Narita Airport must expand its capacity to handle 75 million passengers annually in the 2030s.

4. Enhancement of Narita Airport Capacity

The capacity enhancement at Narita Airport has been discussed at the Four Party Council on Narita Airport, which consists of the MLIT, Chiba Prefectural government, local municipality governments around the airport and NAA. In March 2018, the Council reached a final conclusion regarding the expansion plan as follows:

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 3

1. Construction of a third runway (Runway C) 2. Expansion of the second runway (Runway B) 3. Relaxation of the restriction on nighttime flights

To realize this plan, NAA needs to obtain specialist human resources for the expansion projects and recruit more staff to handle the increasing number of flights and passengers associated with the expansion of the capacity.

5. Preparation for the Tokyo 2020 Olympic and Paralympic Games In addition to capacity expansion, Narita Airport is also required to improve its terminal buildings and other facilities as well as its level of services in preparation for the Tokyo 2020 Olympic / Paralympic Games. But because we do not have enough time to recruit and train personnel, we need to boost the motivation of existing staff by raising staff engagement and sense of unity as NAA employees to increase productivity.

6. Obtaining of Labor Force NAA hires most of its employees when they graduate from universities or graduate schools. However, to obtain expertise necessary for capacity expansion, NAA is now doing more hiring of mid-career recruits who can make an immediate contribution. With the difficulty of obtaining a workforce in the shrinking productive sector of the population, NAA is striving to hire competent personnel by rehiring retirees and converting fixed-term contact employees to indefinite-term hires. Furthermore, in order to secure airport staff in the long run, NAA is conducting airport tours as well as workshops to introduce jobs in the airport to the students living in the neighboring communities.

7. Development of an Environment for Diverse Labor Force

There is a daycare center in Narita Airport that was established to take care of babies and children whose parents are working at the airport. This spring, the capacity of the daycare center was expanded from 46 to 105 children to decrease children who cannot enter the center in spite of their necessity.

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 4

8. Improvement of Efficiency and Productivity In addition to increasing airport staff, advanced technologies are being applied to provide more sophisticated services at the expanded airport. A new digital signage information system was introduced that provides multilingual information such as directions to check-in counters and departure gates by reading boarding passes communicating interactively. Several trials have been conducted to introduce further technologies such as robots to serve drinks and food and power-assist suits to ease the burden of working with heavy loads.

9. Improvement of the Engagement and Unity of Employees for More Productivity (1) Several measures have been introduced to increase the motivation of staff at Narita Airport. Seasonal CS Awards are presented to airport staff who provided excellent services beyond the expectations of our customers. At the end of every year, an annual grand-prix winner is chosen from the seasonal CS Award recipients. Recipients are rewarded at their workplace and their photographs and award details are posted in the terminal buildings to motivate other airport staff.

10. Improvement of the Engagement and Unity of Employees for More Productivity (2) There are 20 recess rooms where airport staff can relax behind the scene. These rooms are equipped with microwaves for light meal and reclining chairs to take a nap. Recently, these recess rooms were renovated to provide more comfort. NAA is encouraging its employees to leave their offices on time and to take paid leave, so that they can feel refreshed. “Switching Off Day” is set every Wednesday and Friday before the end of every month. Office lights are turned off at 6:20 PM to encourage employees to go home as early as possible. In addition, employees are encouraged to plan and announce paid leave at the beginning of every quarter. This makes it easier for employees to take paid leave.

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 5

11. Improvement of the Engagement and Unity of Employees for More Productivity (3) NAA provides training programs to promoted employees to better understand NAA management policy. In the training programs, executive directors who participated in making the management policy explain the histories and backgrounds behind the policy to help staff gain an understanding. The participants then discuss the policy with the executive directors and give presentations about how to achieve the goals of the policy.

12. Improvement of the Engagement and Unity of Employees for More Productivity (4) NAA held Narita Airport’s THANKS festival in September 2017. NAA invited airport staff to the festival as an expression of appreciation for their contribution to the operation and growth of the airport, and to foster an exchange views and ideas. Approximately, 4,700 staff joined the festival and the president, executive directors and employees of NAA served free drinks and food. Original Narita Airport towels were also distributed to all participants, and a movie was screened which showed airport employees working in various situations in the airport. This cultivated a sense of unity among Narita Airport staff.

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 6

Airport’s Corner - Taoyuan International Airport

Change Management of Taoyuan Airport Taoyuan International airport corporation (TIAC) has faced the external and internal challenges, such as the rapid growth of passenger & cargo traffic volume, and a lot of new employees join the team in recent years. TIAC needs a solution that guides how to prepare, equip and support individuals for successful adopt change in order to drive organizational success. Clarify ‘‘Why we have to change’’

Based on the organizational research result, TIAC tries to solve some problems on 5 dimensions, such as “organization structure”, “manpower allocation”, “talent development”, “compensation and benefit”, and “corporate culture”. There are some key issues following below.

Organization

structure

Enhance efficiency cross-departmental communication & coordination mechanism; it could impact emergency response & services integration.

Relatively wide spin of control for top management; it could impact operational efficiency.

Manpower allocation

Need subjective statistics base and long-term development point-of-view in terms of headcounts & recruiting planning.

Make roles equal to responsibilities as well as workloads.

Talent development

Strengthen efficiency in Promotion, Rotation, and Performance Management System; define clear picture/career paths designed for employees.

Strengthen linkage between core business and required competency; rebuild well-rounded planning & execution for training resources.

Compensation and benefit

Packages for entry-level positions superior to general market standard; packages for executive-level positions are relatively less competitive.

Make what employees earned link to their actual contribution.

Corporate culture

Enhance the satisfaction with Performance Management & Promotion system. Build proper communication channels between the Management & employees. Reduce the communication gap between different generations.

Activate “What we plan to do” TIAC managed some executable actions and provided a structured approach for supporting employees to move from their own current status to the future states of TIAC.

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 7

First, TIAC is restructuring a strategic organization and optimizing manpower allocation. In 2017, TIAC did some organizational adjustment before change, including set-up three departments and integrate planning function related department. Till 2018, TIAC focuses on coordination of change resources and review SOP and workload, then activate the integration. About manpower allocation, TIAC assesses the mainly manpower headcounts is core operation related department, including airside and landside operation and security department. By using dual-direction manpower demand assessing structure to analyze and clarify the best-fit manpower allocation. The assessing structure was applied 8 Parameters include the passenger volume, cargo volume, number of flights taking-off/landed, outsourcing, number of runway, number of terminal, revenue, and personnel cost into the estimating model to come up with total headcount for TIAC as growing.

Second, based on core competency (Security, Integrity, Profession, innovation, enthusiasm), TIAC developed managerial competency for each level of manager, and made the function-specific competency in progress.

Last, TIAC strives for the culture change started with establishing a center for innovation and practicing the core value by creating new service for the airport. Furthermore, TIAC is establishing a Baby care center at Taoyuan Airport to support employees and working partners.

Work as one Change is a requirement for airport continued success and involves all of the stakeholders. The best solution to integrate with the content change (such like the organizational structure) and people change (such like cultural change) is always communication, communication and communication.

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 8

Regional HR Committee Spring Meeting Concluded in Narita, Japan The Regional HR Committee Spring Meeting was held on 22 - 23 April 2018 in Narita, Japan, with the kind support of the host, Narita International Airport Corporation. The meeting was held in conjunction with the 13th ACI Asia-Pacific Regional Assembly, Conference & Exhibition.

The meeting’s theme was “Change Management” and was well attended by 40 participants, representing 14 members from across the region. The meeting adopted an interactive format and participants took part in small group discussions based on case studies from Narita International Airport Corporation, Oman Airports Management Company and Taoyuan International Airport Corporation Limited. In the end, the participants developed a route map for change by pointing out the issues to take note of during the stages of ‘Planning’, ‘Implementation’, and ‘Monitoring and Sustaining’ when it comes to “Change Management.”

The next meeting will be held in December 2018 in Abu Dhabi, UAE. For further information about the Committee, please contact the Committee Secretary, Vivian Fung at vivian@aci-asiapac.aero.

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 9

Another Two DNA Seminars Delivered in the Asia-Pacific Region

• ACI-ICAO Aerodrome Certification Compliance and Auditing DNA Seminar in Nadi, Fiji

The ACI Developing Nations Airport Assistance Programme (ACI-DNA) organized the year’s first training seminar in cooperation with the International Civil Aviation Organization (ICAO), namely the ACI-ICAO Aerodrome Certification Compliance and Auditing DNA Seminar, held on 22 - 26 January 2018 in Nadi, Fiji. The training seminar was organized with support from the host, Fiji Airports. Twenty-one participants representing airports and civil aviation authorities from the South Pacific Islands, including Cook Islands, Fiji, Kiribati, Nauru, Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu attended.

The seminar was conducted by two ACI Instructors, Mr. Owen Ryan and Mr. Natrajan Chandra Sekhar. Mr. Ryan is an Aerodrome Operational Expert of the ICAO Technical Co-operation Bureau, and Mr. Sekhar is an ICAO-trained Safety Oversight Auditor.

During the 5-day seminar, participants discussed topics including but not limited to Safety Management Systems, Aerodrome Physical Characteristics, Emergency Planning and Wildlife Hazard Management.

As part of the programme, participants were also given the chance to promptly apply what they learnt in class. The group visited the airside of Nadi International Airport where participants applied different auditing tools and techniques they learnt in class. On the last day, the participants made group presentations to share their analyses on audit findings and recommendations for follow-up actions.

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 10

• ACI-DNA Seminar on Airport Security Operations in New Delhi, India

GMR Aviation Academy hosted this year’s second ACI-DNA Seminar on Airport Security Operations in New Delhi, India on 28 - 30 May 2018. The 3-day seminar was attended by 19 airport representatives from Bhutan, Cambodia, India, Maldives, Myanmar, and the Philippines.

The seminar was conducted by ACI Instructor, Ms. Sara Gladstone, who is a certified instructor at the Department for Transport of the UK. Discussions centred around passenger and staff screening, landside security measures, security culture, case studies and best practices sharing. • Upcoming DNA Seminar on Airport Customer Service in Haikou, China Another ACI-DNA Seminar, organized in cooperation with HNA Airport Group Co., Ltd will take place on 30 - 31 August 2018 in Haikou, China. The topic will be Airport Customer Service. For further information about the seminar and program, please visit ACI website on http://www.aci.aero/Services/DNA-Assistance-Programme.

ACI Asia-Pacific Announces Young Executive of the Year Award 2018 ACI Asia-Pacific Young Executive of the Year Award is a research paper competition, introduced in 2009, encouraging and promoting innovative ideas and solutions addressing challenges in the aviation industry. The outstanding young talent who contributes the best research paper on a selected topic will be honored as the ACI Asia-Pacific Young Executive of the Year. This year’s candidates were required to submit research papers on the topic “How do airport commercial offerings maintain competitiveness in the era of E-Commerce?”

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 11

Mr. Andrew Warrender of Northern Territory Airports Pty Ltd was recognized as the ACI Asia-Pacific Young Executive of the Year 2018. Nine submissions were received this year and the Panel of Judges concluded that Mr. Warrender’s submission demonstrated substantial research effort and provided thoughtful recommendations on airport’s response to the trend of e-commerce. The Panel also unanimously decided to give Honorable Mentions to Mr. Kyoji Fukuda of Narita International Airport and Mr. Manish Agnihothri of GMR Hyderabad International Airport. Their submissions were also very comprehensive and shared unique insights on the topic. The Regional Office would like to thank the Panel of Judges, which includes Mr. Emmanuel Menanteau of Kansai Airports, Tan Sri Bashir Ahmad Abdul Majid of Delhi International Airport Ltd, Mrs. Sue Doyle of Adelaide Airport Limited and Mr. Arun Mishra of ICAO 's Asia and Pacific Office for their time and effort.

“I am honoured to be chosen as the Young Executive of the Year for 2018. I was pleasantly surprised to be chosen given the standard of my fellow nominees submissions, each of which I feel would also deserve the recognition of the award. When I completed my submission, I was focused on the research and as an exercise I found this extremely rewarding. There have already been several benefits for my company from completing this process. The YEA programme is an excellent programme to recognise and encourage the young executives in our region who are the future of our industry. I am passionate about the airport world and despite the significant challenges we collectively face, with the creative and dedicated thinkers evidently in our sector I feel confident that we will remain a fantastic dynamic successful industry to work in. I would strongly recommend the Young Executive Award programme to anyone who wants to make a valuable contribution to our collective future, and commend ACI Asia-Pacific for running such an excellent programme.” Andrew Warrender Head of Commercial – Terminals Northern Territory Airports Pty Ltd

Details for the Young Executive of the Year Award 2019 will be announced in due course. Stay Tuned! Human Resources Excellence Recognition Program 2019 is Open for Application

The ACI Asia-Pacific Human Resources Excellence Recognition Program 2019 is now open for application. Since its introduction in 2014, the program acknowledges airports’ outstanding achievements in HR management in the region. All airport members are welcomed to take part. To participate in the program, each interested airport member can submit one paper demonstrating the respective airport’s recent HR efforts on the topic of “Change Management” to hr_recognition@aci-asiapac.aero on or before 23 November 2018 (Friday) 12:00 noon Hong Kong Time (GMT +8). Please refer to the program details and the application form on our website or contact Ms. Sharmaine Li at hr_recognition@aci-asiapac.aero.

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 12

Sharing from ACI Global Training: Launch of the new Airport Financial Management course By Melisa Monje, Manager, Global Training, ACI World The Airport Financial Management course was developed based on the feedback and input from the ACI World Economics Standing Committee on the training needs of our members. With the emphasis on airports moving towards more independent, financially sustainable models, this course was developed to provide participants with a more thorough understanding of how to optimize financial management and capital programming by applying investor engagement principles. For this pilot programme that was launched in Abu Dhabi, we were pleased to receive such a great support from senior airport financial controllers and managers from diverse airports from countries such as Argentina, Bahrain, France, Maldives, Nepal, Nigeria and Romania as well as the United Arab Emirates.

Course overview The course started with a broad discussion on the strategic financial issues facing airports, both in terms of how to find the resources to serve growing passenger and cargo demand, as well as recognizing that stakeholder engagement is vitally necessary in these times of economic, political, and social turmoil. One of the key discussion areas covered was how modern airports use a wide variety of tools to manage working capital, and at the same time establish careful policies to report on airport management best practices to the outside world. For many participants on the course, the most challenging debate was how to best engage both public treasury and private asset markets for attracting debt and equity to fund continued industry growth, while recognizing investor relations remains a responsibility in the ever-increasing world of financial transparency. We were very happy to have the support and presence for the course opening by Mr. Abdul Majeed Al Khoori, Acting Chief Executive Officer of Abu Dhabi Airports. In referring to this course, he stated: "Aviation, and airport industry in particular, have a unique framework of operations and managing business, which makes it challenging to apply standard practices when it comes to financial management. Therefore, I strongly support and welcome this initiative from ACI.”

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 13

During the week, participants worked together in teams to assess best-practice case study airports on their financial management activities, with the participants providing a brief presentation of their findings. All in all, for the first undertaking, Dr. Joe Sulmona, the course facilitator indicates "the new ACI Airport Financial Management course pretty much hit the right mark, and we are grateful to all the participants for their feedback so we can enhance the course material in time for the next offering to be held in Munich, Germany in July.” Testimonials:

“The Airport Financial Management course expanded my professional horizons and improved my understanding of financial management principles. This experience will allow me to use the knowledge gained according to my professional needs and expectations. The course was well structured, with challenging and stimulating core sessions that combined both financial theory and application to real-airport situations through various case studies.” Beatrice Constantin Financial Analyst, Bucharest Airports National Company

“I was expecting to simply attend a course, instead I received a complete learning experience. Day by day, each participant added more and more value on Airport Financial Management. The course used a comprehensive approach for all 3 pillars of Financial Management - Investment, Financing and Dividend decision making process. Although there was a cultural diversity of attendees, Joe managed to “speak” everyone’s language, sharing enough examples in order to provide insights about airport financial management. I would recommend Global Training courses to stay informed on new industry practices and continuous professional improvement!” Eugen Marian Dogaru Head of Commercial Department, Bucharest Airports National Company

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 14

ACI Asia-Pacific Regional HR Committee Members

Please meet our new Chair and Vice-Chairs elected since April 2018!

Chair

Ms. Justina TAN Changi Airport Group

(Singapore) Pte Limited

First Vice Chair Ms. Florence CHUNG

Airport Authority Hong Kong Second Vice Chair Ms. Hind MAHMOOD

Bahrain Airport Company Other Committee Members also include:

• Mr. Sultan AL MANSOORI, Abu Dhabi Airports Company • Mr. Abdullah Saleh AL YAFAEI, Oman Airports Management Company • Mr. Hong CHEN, Beijing Capital International Airport Co Ltd. • Mrs. Sue DOYLE, Adelaide Airport Limited • Mr. Jon EBINA, Kansai Airports • Ms. Rosemarie ERENETA, Manila International Airport Authority • Mr. Geesuk HONG, Korea Airports Corporation • Mr. Vincent HSU, Taoyuan International Airport Corporation Ltd. • Mr. Taichi ISOGAWA, Narita International Airport Corporation • Mr. Sanjay JAIN, Airports Authority of India • Mr. Azman Shah MOHAMED, Malaysia Airports Holdings Berhad • Mr. Montri MONGKOLDAO, Airports of Thailand Public Company Ltd. • Mr. Socheat PHOURNG, Cambodia Airports • Mr. Dong Hwa SHIN, Incheon International Airport Corporation • Mr. Murli Dhar SHYAM, Delhi International Airport (P) Ltd.

ACI Global Training Course Calendar 2018 (Jul - Dec) in the Asia-Pacific Region

AIRPORT SAFETY COURSES 6 - 10 August ACI-ICAO Aerodrome Certification* Incheon, South Korea 6 - 10 August GSN 3 – Emergency Planning & Crisis Management Kuala Lumpur, Malaysia 12 - 16 August GSN 4 – Working with Annex 14 Abu Dhabi, UAE 16 - 20 September GSN 5 - Advanced Safety Management Systems Abu Dhabi, UAE 15 - 19 October GSN 1 – Safety Management Systems Kuala Lumpur, Malaysia 15 - 19 October ACI-ICAO Aerodrome Certification* Port Vila, Vanuatu 28 Oct. - 1 Nov. GSN 2 – Airside Safety & Operations Abu Dhabi, UAE 19 - 23 November ACI-ICAO Aerodrome Certification*

Bangkok, Thailand

July 2018 ACI Asia-Pacific HR Bulletin – Issue 15 Page 15

OPERATIONAL & TECHNICAL 23 - 27 July Airport Master Planning Incheon, South Korea 12 - 16 August Airport Collaborative Decision Making (A-CDM)

Abu Dhabi, UAE

AIRPORT LEADERSHIP & MANAGEMENT COURSES 23 - 27 September Airport HR Management* Abu Dhabi, UAE 14 - 18 October Airport Communications & Public Relations*

Abu Dhabi, UAE

AIRPORT SECURITY COURSES 4 - 8 November Airport Security Operations Abu Dhabi, UAE 9 - 13 December ACI-ICAO Management of Airport Security*

Abu Dhabi, UAE

AIRPORT ECONOMICS COURSES 30 Sep. - 2 Oct. Airport Business Development and Planning Abu Dhabi, UAE 30 Sep. - 2 Oct. Introduction to Airport Economics Abu Dhabi, UAE 2 - 4 October Airport Air Service Development Abu Dhabi, UAE 7 - 11 October Airport Revenue Generation* Abu Dhabi, UAE 21 - 25 October Airport Business Analytics

Abu Dhabi, UAE

AIRPORT CUSTOMER EXPERIENCE COURSES 17 - 19 September Passengers with Reduced Mobility Workshop Kuala Lumpur, Malaysia 15 - 19 October Implementing Branded Customer Service Programmes at Airports

Incheon, South Korea

AIRPORT ENVIRONMENT COURSES 26 - 30 November Airport Environmental Management*

Kuala Lumpur, Malaysia

*Can be taken as an elective for the Airport Management Professional Accreditation Programme (AMPAP)

To read previous issues of ACI Asia-Pacific HR Bulletin, please click here.

To subscribe/ unsubscribe, please click here.

ACI Asia-Pacific Unit 13, 2/F, Airport World Trade Center,

1 Sky Plaza Road, Hong Kong International Airport, Hong Kong www.aci-asiapac.aero