Can I say that today's airport, according to your explanation, is much more than a place where aircraft, passengers, and cargo arrive and depart?

Yes. First, let me tell you about my work in China. I worked on the Shanghai Pudong, Beijing Capital, and Zhuhai airports. China is placing emphasis on being the hub in the global supply chain. The supply chains are increasingly connected by air. These supply chains need to be operated very efficiently. Whether it is micro-electronics, pharmaceuticals or digitized components, all those products move around the world by air. Thus, the airport becomes much more than infrastructure where planes land and people and cargo are moved; it also provides a tremendous competitive advantage for a locality.

So if you can improve your accessibility, speed, and agility, you improve your competitiveness. In the 21st century, connectivity and speed are as important as the quality of your product.

How can you improve these elements in a "flat" world so that companies can deliver their products on time to customers all over the world? I work with countries to show them how to improve their airport enterprise so that it can become more attractive to business and industry.

There are two complaints related to airport service that are widely discussed in China. One is the mandatory 50 yuan "airport construction fee" that each passenger is charged. Another is that high cost of merchandise in the airport sometimes 2 or 3 times higher than street prices. What's your comment on these phenomena?

First, let me clarify your question. When you travel in the U.S., the "airport construction fee" is already included in the price of the ticket. It has been this way for decades. The passengers just don't realize it. The "airport construction fee" is turned in to the federal government, which then redistributes the fees to the airports for their construction and expansion. The U.S. has the same kind of passenger fee as China.

Regarding the price of food and merchandise, such a situation also existed in the U.S. for a long time. The cost of food in the airport would be twice as expensive as street prices. Now this has changed with the introduction of "street pricing." BAA USA, a subsidiary of the British company that owns and operates airports in London, developed the Air Mall concept of "street pricing"--prices no higher than in comparable stores in the surrounding area. The move is designed to dispel the price-gouging image that airport shops have earned over the years.

This concept is now recognized in China as larger and larger percentage of airport revenue comes from non-air related business--commercial related services. Air travelers tend to be a selective group. Their incomes are 2 to 4 times higher than the national average, and they purchase goods at a higher value. Look at Hong Kong airport, there are lots of luxury stores because there are more wealthy passengers.

Airport plays an important role in making the first impression of a city or the country on visitors. With the development of China's economy, large cities such as Beijing, Shanghai and Hong Kong have built world-class airports. However, many small and medium cities in China do not have an airport. How important is airport construction to a local economy?

It is essential for small cities and outlying areas to have airports. China is very fast in building certain areas of infrastructure, however, the logistics are still far behind what is needed to be globally competitive.

The country still faces the challenge of the lag between coastal areas and inland cities. If the inland cities can have their own airports, and be intimately connected to hub airports in Beijing, Shanghai, and even Hong Kong, they will be able to receive and ship goods quickly and efficiently through the air-network. If inland cities have their own airports and are able to build supporting industrial and commercial areas around them, the large influx of migrants to the costal cities can be decreased.