Changi Airports International inks 10-year agreement to manage airport in Hainan, China

Changi Airports International, a subsidiary of Changi Airport Group, has signed a 10-year agreement to manage Hainan province’s Haikou Meilan International Airport’s (HAK) non-aeronautical businesses.

The shops, the food, and the lounges

Changi Airports International (CAI) will have the exclusive rights to manage HAK’s retail, food and beverage, advertising, leisure, and Commercially Important Person (CIP) services for the decade beginning in January 2025.

The joint venture splits ownership between CAI, which will have 49 per cent, and Hainan Meilan International Airport Co. Ltd., which will own 51 per cent.

The joint venture, CAI-Meilan, aims to transform HAK into an integrated consumer hub and encourage consumer spending to enhance commercial revenue.

It seeks to leverage Changi Airport’s reputation and expertise in airport commercial management, to give passengers a better experience, increase retail offerings, and introduce digital services such as e-commerce and loyalty programs.

This will be done by expanding the number and quality of available international and local brands, food and beverage offerings, and providing “premium passenger experiences” with world-class lounge offerings.

Vital gateway

HAK, located in Haikou City, the capital of Hainan province, is a vital gateway for domestic and international travellers, connecting 116 domestic and 30 International destinations.

The island of Hainan itself is also a popular business and tourism destination with the resort city of Sanya located on the island.

HAK has grown significantly over the years, with over 24 million passengers passing through the airport in 2023, making it the 18th most-used airport in mainland China.

The airport still has the capacity for another 11 million passengers per annum (MPPA).

In 2023, HAK handled 0.48 million international passengers, down from 2019 when it handled 1.4 million international passengers, six per cent of its overall traffic that year.

The joint venture believes that there are opportunities for further growth in that segment.

The joint venture will aim to enhance the airport’s ability to cater to both international and domestic travellers, foster better passenger satisfaction, drive revenue growth, and strengthen HAK’s position as a top regional hub.

Key milestone

Eugene Gan, Chief Executive of CAI, said that the joint venture “marked a key milestone” in the expansion of CAI’s global footprint.

The company, Gan said, looked forward to working closely with HAK “to transform the airport into a hub of choice for travellers and retailers alike”.

The partnership also supported Hainan's goal to become a global tourism and trade centre.

CAI is active across the world and bills itself as a leading consultant, manager, and investor in the global aviation market.

It has experience in over 20 countries and 60 airports worldwide, including Fuzhou Airport in China, the Bengal Aerotropolis in India, and Brunei Airport.

Top image via Haikou Meilan International Airport