"Higher landing fees seen as threat to Hong Kong hub status"

Tuesday, November 23, 2004

Higher landing fees seen as threat to hub status
The South China Morning Post


The Airport Authority will have to keep landing and parking charges at Chek
Lap Kok in line with regional rivals after it is listed on the stock
exchange or Hong Kong will lose its status as a premier hub, the government
was warned yesterday.

Legislators yesterday met with a panel of government officials, led by
Secretary for Economic Development and Labour Stephen Ip Shu-kwan, to
discuss the launch of a public consultation paper on the airport's
privatisation.

It includes a proposal to raise airline charges at Chek Lap Kok to boost
profitability and ensure a better return for investors.

"Airlines are now opposed to the privatisation plan," said Howard Young, a
legislator for the tourism sector who also serves as Cathay Pacific Airways'
general manager for government affairs.

"They haven't said much on the topic until now, but I think you will find
increasing opposition."

Other legislators said discussion would need to focus on how the airport
would be regulated as a monopoly supplier.

Officials said the privatisation of the airport operator would lead to
greater transparency and regulatory oversight, as well as help to ensure
that Hong Kong remained a competitive aviation hub.

"We're not saying we have to raise charges ... we're consulting the public
over that," Mr Ip said.


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