SWOT Analysis of Hong Kong International Airport

Running head: Aviation Management

Aviation Management 1
Contents
Answer to Q1..............................................................................................................................................2
Strengths......................................................................................................................................................2
Weaknesses.............................................................................................................................................2
Opportunities...........................................................................................................................................3
Threats.....................................................................................................................................................3
Answer to Q2..............................................................................................................................................4
Answer to Q 3.............................................................................................................................................4
Answer to Q4..............................................................................................................................................5
Answer to Q 5.............................................................................................................................................6
Answer to Q6..............................................................................................................................................7
Government sector owned business model of airports.............................................................................7
Private sector owned business model of airports.....................................................................................7
Answer to Q7..............................................................................................................................................8
Answer to Q8..............................................................................................................................................9
Answer to Q9............................................................................................................................................10
Answer to Q10...........................................................................................................................................11
References.................................................................................................................................................12

Aviation Management 2
Answer to Q1
The SWOT analysis of the Hong Kong Airport is as follows:
Strengths
1. Consistent and competent on-airport amenities: According to Lee (2017) the Hong Kong
International Airport (HKIA) has a strong competitive advantage in the market. It has secured
fifth position in the best terminals as per a recent survey. It has secured top position for dinning
and has been in the top 10 for its hotels, cleanliness, staff service and shopping.
2. Fully- developed logistics infrastructure and freight management capacity: While in the
best airport category, it has been on the fifth position amongst the world’s most profitable
airports. The HKIA delivered a profit of HK$ 8.35 Billion in the FY 2015-2016. In the year
2016, the airport managed 70.5 Million passengers and more than 410000 flights. It has claimed
to be the world’s busiest cargo hub managing the cargo of 4.52 Million tons in 2016.
3. Well-organized passenger facilities: The HKIA catering to the diverse necessities of the
passengers, the airport has enhanced many of its facilities such as enhancement in the capacity of
the automatic passenger clearance system through the addition of 18 e-channels in the arrival and
departure immigration halls. With the addition of these e –channels, the waiting time of the
passengers will be decreased thereby helping in smooth customer flows. In the year 2016, a
caring corner of 140 square meter has been opened for passengers with special needs and those
with decreased mobility including the elderly and pregnant women (Hong Kong International
Airport, 2017).
Weaknesses
1. High terminal cost of the cargo: Due to the lack of government subsidies and initiatives,
the terminal cost of the cargo has increased as compared to the previous years. Besides this, a
major expansion is construct a run way is due in 2023 costing HK$ 141.5 Billion.
2. Inefficiency in handling the customer and cargo load: As HKIA is becoming more
developed, the number of travellers moving to and from the territory has increased. In the year
2015 it saw the movement of 68 million customers and it is the busiest cargo hub in the world.
As a result, the total travel time from Hong Kong has increased by half an hour as compared to

Aviation Management 3
1999. So, the limitations will also affect the mobility of the transport planes which will slow
down the economic growth of the territory.
3. Lack of proper management: According to Cheng (2015) the existing runways are
underutilized and HKIA is planning to construct another runway. The construction of third
runway would increase the depletion of the natural environment and is a mere wastage of
resources. The director general of civil aviation has restricted the aircraft movements to 64
flights per hour which is below the international standards. The efficiency can only be improved
by enhancing the efficiency of the runway so that it can manage more aircraft movements.
Opportunities
1. Increased demand for budget airlines: According to Sze et al. (2015) there is an
increasing demand for budgeted airlines. As per the recent research executed by the Public
Opinion Program at the University of Hong Kong, about 70 % of citizens of Hong Kong
expressed their interest in travelling on a lost cost carrier. So, there are huge possibilities for the
growth of the budgeted airlines on the HKIA.
2. Competitive geographical location: The duration to reach the HKIA from countries
including India and China is less than five flying hours. It has made HKIA competitive in the
budget airline industry.
Threats
1. Limitations of the Hong Kong International Airport and its policies: The Hong Kong
International Airport is a challenging market for budget carriers as it has high servicing costs and
is more restricted. The HKIA being a single airport has high landing fees. The airport does not
grant any discounts on the landing fees to the budgeted airlines. So as a result there are
problems relating to the competitive from allotment for slots and high landing fees which can
hamper the development of the airport.
2. Slot congestion and traditional modes of air traffic control: The HKIA is already running
at its full capacity. With the warning of the aviation officials, drastic measures are needed to
divert the air traffic and cargo air carriers.