TOP 10 AIRPORTS: BEIJING CAPITAL INTERNATIONAL


comments: “The next couple of years will depend completely on the minimum annual guarantee revenue. This will prevent duty free revenue from dropping off as international traffic migrates to Daxing Airport.” Wong also believes BCIA retail


revenue is unlikely to grow again until traffic exceeds the aforementioned 80% of 2019 levels. “The only way things might change


is if people actually start spending a lot more than expected and if China raises the duty free quota for arriving passengers.” Xuesong attributed the slowdown


of the global economy in 2019 to disruption from trade frictions and geopolitical tensions. Assessing the impact of Covid-19, he stated in the report: “Currently, the outbreak of Covid-19 has increased uncertainty in the weak global economy. The international spread of Covid-19 has prompted a new round of significant adjustment in the global financial market. “Although the Chinese economy


is suppressed by the outbreak of Covid-19 in the short-term, the situation is under effective control in China. “This has led to the resumption


of operations across various industries in an orderly manner, with the aim of minimising the


impact of the pandemic on the domestic economy.” Meanwhile, Beijing Capital


International Airport Company Limited has been forced to contend with various challenges stemming from the opening of the new Beijing Daxing International Airport. Xuesong said: “The entire


aviation market in Beijing has entered into a new ‘one city, two airports’ landscape. “As


“The entire aviation market in Beijing has entered into a new ‘one city, two airports’ landscape.”


Liu Xuesong, Chairman,


Beijing Capital International Airport Company Limited


the Civil Aviation


Administration of China further implements the plan for the transfer of flights and operations to Daxing Airport, the production capacity of Beijing Capital Airport will decrease. “As such, the revenue of the


company will be put under greater pressure.” Total retail space at Beijing Daxing


spans around 18,000sq m, of which 13,000sq m is duty paid and 5,133sq duty free. China Duty free Group secured the 10-year contract to operate two duty free concessions (tobacco and food and fashion and beauty) in March 2019, with the agreement signed a month later. Lagardère Travel Retail captured the key 1,100sq m fashion contract.


Business traveller appeal However, BCIA could appeal more to business travellers than


Daxing Airport, given its proximity to major business districts in northeast Beijing. Wong comments: “Air China and


its Star Alliance partners, which will continue to be based in BCIA, could boost flight frequencies for key business routes. China Eastern has also won approval to keep its Beijing- Shanghai route at BCIA.” In the meantime, BCIA should


fine-tune its amenities and service offerings to cater for business travellers, according to Wong. This may help mitigate against the loss of leisure and transit traffic to Daxing Airport. She concludes: “Business travellers tend to spend less time in the airport retail area, but will more be willing to pay for additional services. “These include wi-fi, priority


check-in and business lounges for better convenience, efficiency and comfort.” «


PEK – Beijing, CN


AUGUST 2020


TRBUSINESS 33


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