Source: The Standard Author: Mandy Lo 12/04/2009
Subject Concerned: Airport Aviation Fuel Airlines
Airlines have been given an early Christmas gift - a 10 percent discount on landing and parking fees at Chek Lap Kok will be extended for three months.
Cathay Pacific Airways welcomed the Airport Authority Hong Kong's (AAHK) decision but said the extension was much shorter than the 12 months sought by the Board of Airlines Representatives two weeks ago.
"This decision will be seen as good news by all the airlines using Hong Kong International Airport (HKIA) as it will encourage them to maintain or even increase frequencies at a time when sustainable recovery in aviation still looks far from certain," Cathay's chief executive Tony Tyler said.
The extension will maintain Hong Kong's competitiveness as other Asian airports offer similar discounts, Tyler said.
"From a Cathay Pacific perspective, the news is a boost to our plans to restore some services we had to suspend earlier this year, and to the prospects of adding new destinations," said Tyler.
"However, notwithstanding recent seasonal pickup in our passenger and freight business, yields remain under pressure."
Cathay is cautious about the recovery outlook of aviation industry amid the rising fuel prices.
The authority said the concession will now last until March 31, 2010. "Such an extension, amounting to additional savings of up to HK$56 million, will give airlines further relief against possible uncertainty on their paths to recovery," said the authority.
The cut in landing and parking charges is part of the authority's HK$450 million relief package launched in April to aid carriers. Cathay shares rose 2.05 percent to HK$13.92 on December 3.