Airport People
Hong Kong International Airport was once one of the busiest airports in the world. In 2019, HKIA handled 71.4 million passengers; the figure was 5.7 million last year.
These days HKIA is seeking a reboot after Covid as it strives to regain its leading position. Thankfully there are positive signs; in February 2023, passenger throughput registered around 2.1 million. Meanwhile, the airport authority predicts that air passenger traffic will climb to 70 per cent of pre-pandemic levels by the end of this year and return to normal by 2024.
Also, not too long ago, HKIA matched the best in customer satisfaction surveys. In 2018, the SkyTrak survey had HKIA in 4th position. Yet, the latest results saw HKIA slip to the 33rd. Moreover, the survey placed HKIA behind our immediate neighbours, Shenzhen and Guangzhou. This fall in standing is a painful reminder that unless Hong Kong improves, competitors will bypass us.
But here's the thing, I'm somewhat sceptical of these surveys. Personal experience tells me that some top-rated airports do not live up to the billing. For instance, at Paris CDG last summer, I saw pickpockets operating in the terminals, and an audacious beggar approached me at the check-in counter. That is a first.
Likewise, Heathrow T3 is pretty grim — crowded, poorly designed, with over-stretched, grumpy staff. Granted, T5 is better. That these airports get better ratings than HKIA is thus surprising. Still, on a more positive note, HKIA comes 8th on the list of the world's cleanest airports.
No doubt, Covid and the restrictions on travel hit HKIA hard with the impact felt by those let go; these are two interrelated issues. First, many laid-off staff found new careers, with some aggrieved at their treatment and reluctant to return. At the same time, pay and travel costs are a factor. For instance, anecdotal evidence suggests that many baggage handlers found new lucrative jobs delivering food.
According to official figures, more than 35 per cent of the HKIA staff, about 16,550 people, left the industry by the end of 2021. At the same time, the workforce at Cathay Pacific, the territory's flagship carrier, fell nearly 40 per cent to about 16,000 employees in the first half of last year from the end of 2019.
Thus airlines are struggling to ramp up flights because of staff shortages. During a recent radio phone-in show, a ground handling agent admitted a need to recruit 1,200 people within three months. It seems this number may prove a challenge.
Government data indicates that 370,000 people have disappeared from the workforce due to various factors such as retirement and emigration. Plus, in the bigger picture, Hong Kong's population fell to 7.26 million, down 65,000 from a year ago.
The importation of labour provides a potential solution. But the government has established that imported labour must get paid at the mid-point of Hong Kong salaries for the specific role. Hence, employers looking to reduce costs will be disappointed.
One of the ways that HKIA is reaching out to potential employees is by partnering with universities and schools. This includes setting up job fairs and other events to showcase the wide variety of job opportunities available at the airport. Besides, by connecting with students early on, HKIA can build relationships with potential candidates and encourage them to consider a job at the airport.
Also, the airport offers professional development and growth opportunities, including on-the-job training and membership in professional organisations.
For sure, HKIA's approach to attracting and retaining staff is on the right track. I'm sure the airport can claw back its forfeited status by investing in professional development and offering competitive compensation and benefits packages.
The air transport sector and tourists arriving by air previously contributed about US$33 billion a year, accounting for about 10 per cent of Hong Kong's GDP, a 2018 IATA report showed. That is income Hong Kong can ill afford to lose in a fraught economic climate.
In the longer term, with fertility rates dropping precipitously across East Asia, including in China, HKIA will need even more innovative solutions to address staffing issues. This demographic decline is already reshaping the world economy, with more to come.