"Hong Kong airport offers 50pc rebate on fees for new routes"

Friday, July 9, 2004

Airport offers 50pc rebate on fees for new routes
United Kingdom - The Standard


Hong Kong's Airport Authority plans to offer up to a 50 per cent rebate
on landing fees to airlines that run flights to a new destination over
the next two years to fend off threats from Guangzhou, Bangkok and
Singapore to the SAR's status as an international hub.

The 50 per cent rebate begins on September 8 and a 25 per cent discount
will be offered for the second year. The authority said the rebate offer
was approved by the Chief Executive in Council and will be gazetted
today.

``The Hong Kong airport is facing an increasingly competitive
environment. The development of new large airports nearby and other
airports in the region that offer progressive incentives created intense
competition for the Airport Authority,'' the Economic and Labour
Development Bureau said in a document submitted to the Legislative
Council about the plan.

Guangzhou's Baiyun airport will open next month while Bangkok's new
international airport is expected to become operational in September
next year, the bureau said.

Singapore, which has cut fees and lured budget airlines, is spending
S$240 million (HK$1.1 billion) to expand Changi Airport's terminal two
by next year.

Hong Kong's Chek Lap Kok airport charges about US$3,690 (HK$28,782) to
land a Boeing 747-400. It charges the third-highest landing fees among
11 leading Asian airports, a report by the International Air Transport
Association said. Chek Lap Kok is behind only Tokyo's Narita and all
international Chinese airports. Singapore and Bangkok, on the other
hand, had the second and third-lowest charges, the report said. ``This
timely re-introduction of the incentives will add an impetus for
carriers to extend their coverage and expand their customer base to the
Pearl River Delta region and beyond,'' said Gilbert Chow, vice- chairman
of the board of airline representatives in Hong Kong.

The Airport Authority said a similar year-long rebate programme launched
in March 2001, attracted 17 airlines to create 23 new destinations, and
saved HK$44 million in landing charges.

As of April, 72 carriers, including 15 all-cargo carriers, operated
flights from Hong Kong's airport to 136 destinations. ``With renewed
incentives, we are aiming to extend ourselves to more diverse and
versatile markets,'' authority chief executive David Pang said.

Dragon Airlines, which runs flights mostly to China and Asia, is set to
be among the beneficiaries. It is planning to start flights between Hong
Kong and Sydney by the second half of next year.

``We welcome the initiative taken by the Airport Authority . . . to
ensure that travellers have the widest number of destinations from which
to choose,'' a Dragonair spokeswoman said.


 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dcfp/dcboard.php


*****************************************