Topics: Cathay Pacific, Hong Kong, Hong Kong International Airport Pages: 2 (436 words) Published: December 5, 2012
ISOM4750 Assignment 1 Topic: Due date: To do: Managing the HKIA Project 1st Oct (23:59) (A) Watch the “Building HKIA” video on LMES (B) Answer the two questions at the end of this paper (limited to one page) (C) Submit your answers in either Word or pdf format to “Drop Box” in LMES

Hong Kong International Airport (HKIA) was built to replace the older Kai Tak Airport, situated in the center of urban Hong Kong. Population congestion dictated that the majority of the new airport would come from a sea reclamation project. The project was massive in scope, involving the creation of the world’s largest indoor covered area (for the terminals), the longest suspension bridge, and a high speed rail system, and so on. Original financing for the project was set at US$6.4 billion, and the cost of the additional project elements added another US$2.5 billion to overall cost. When completed, the airport was slated to accommodate over 87 million passengers and 9 million tons of cargo each year. The opening of the new airport in 1998, after one year delay in completion and an actual cost of around US$20 billion, faced many technical problems; for example, the baggage handling equipment was not ready. The first two weeks of the new airport’s operation were nightmarish, as aircrafts experienced huge delays, planes took off with the wrong luggage or none at all, baggage was lost, and flight information systems did not work. It was difficult to determine which of the multiple subcontractors for the project were responsible for each miscue or technical problem, because the project’s organization chart was complex, with multiple responsibility paths. It was also discovered that the Airport Management Division, responsible for organizing these systems, did not have any contingency plans and had done no risk management whatsoever. No real integration existed between different subsystems within the airport’s management and inadequate training of personnel. Following a lengthy problem...
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