ASIA PACIFIC: HANGZHOU INTERNATIONAL AIRPORT
permit foreign companies to operate duty free shops. China Duty Free Group already operates outlets in Hangzhou’s existing terminals. As Jea intimates, it stands in a good position to expand its retail footprint into T4. However, in terms of the duty
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paid operations, there are likely to be several tenders, breaking up the business into sections. Jea explains: “Breaking up the duty paid business and opening it up to more bidders does places the onus on the airport, which has to have clear vision of what will be placed where. “We are in the planning stages
right now and have taken on an international consultant.” For the first sub-phase, with a
completion date in 2020, Jea tells TRBusiness he expects a duty free concession award to be announced around September 2020. “Typically, for duty free, we award
the business at least a year-and-a-half before opening, so that would mean around September 2020. “Before then, we’ll have to go
through the design process, get that vetted and then seek approval… we will then have to give companies time to bid. So, I believe the tender will take place early next year, probably around March, so that by September we can award.”
China opening up? Looping back to Chinese government regulation concerning foreign
One of CDFG’s duty free stores at Hangzhou Airport in an area restricted to international travellers.
companies bidding for duty free contracts in China, TRBusiness asks Jea if there was any truth to the rumour that this might change in the future. “They’ve been talking about it
for the last three or four years,” says Jea. “There is reason to believe that changes are coming.” This would go some way to
explaining China Duty Free Group’s acquisition drive in China – most recently of Sunrise Duty Free in 2017 – providing them with a huge advantage over any foreign competition should the market open up. At the moment, numerous operators who might be interested in this sort of opportunity have expressed their doubts that this will ever happen, in exchanges with TRBusiness.
“We are in favour of promoting healthy competition…In Korea, for example, I hear that the Incheon Airport encourages foreign companies to bid and I believe that can only be a good thing.”
David Jea, Former Deputy General Manager for Hangzhou International Airport
However, Jea tells TRBusiness that increasing CDFG’s competition would not be such a bad thing. “We are in favour of promoting
healthy competition…In Korea, for example, I hear that the Incheon Airport encourages
companies to bid and I believe that can only be a good thing.” «
Hangzhou’s David Jea moves back to Hong Kong after five-year secondment
David Jea has left his position as Deputy General Manager at Hangzhou International Airport and has taken on the role of Senior Manager, Business Continuity Planning for Airport Authority Hong Kong (AAHK), transferring back to the company following a five-year secondment to Hangzhou. Jea, who was part of the speaker
line-up at the TFWA China’s Century Conference in Hainan in March, was seconded from AAHK in 2014 to Hangzhou International Airport and appointed as the Deputy General Manager. He was tasked with assisting the
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operations, non-aeronautical business management and development, retail/ advertising business and property management, as well as customer service quality delivery. Jea was also responsible for
communication and liaison with Airport Authority Hong Kong. Prior to joining Hangzhou International
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Airport, Jea held several managerial posts at Airport Authority Hong Kong, overseeing the management and operations of the terminal, landside traffic, estate, and integrated airport control centre. Tommy Lai (pictured right), who has
General Manager in the areas of passenger terminal management and
OCTOBER 2019
over 30 years’ experience working in the aviation industry covering airlines and
TRBUSINESS 83
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foreign
airport operations, will replace Jea in the position of Deputy General Manager Hangzhou International Airport.
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