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Hong Kong airport fees asked to be waived by Airlines as demand falls

Multiple Airlines wrote to the Hong Kong Government asking for airport fee waivers

Many carriers together proposed to the Hong Kong government this month for waivers of airport fees as they fight to tackle the economic repercussions of anti-government protests which have caused a dramatic decrease in traveller demand.

According to a report from Reuters, the board of airline representatives (BAR) of Hong Kong, which includes more than 70 aircraft flying towards and from the Asian economic centre, has written to the govt requesting temporary assistance from landing and storage, as well as renting and other operating costs.

“In August we already saw a double-digit decrease in travellers relative to last year, and we hope it to get worse in the final months of the year,” said BAR Chairman Ronald Lam, a junior manager at Cathay Pacific Airways in a document from 16 September which had the South China Morning Post for the first time published on Monday (23 Sept).

“Many flights have decreased or shortened their service to and from Hong Kong, because of decreasing customer figures, as many flights have become unprofitable,” Lam said in a memo to the Government Secretary of Transport and Housing.

The Hong Kong Airport Authority and the Transport and Housing Bureau of Hong Kong did not react to applications for remark instantly.

Cathay, the most significant commercial loss of sometimes brutal demonstrations, said that this month, after announcing an 11.3% decrease in passengers by August owing to declining supply, it would reduce the ability for the upcoming summer semester.

In a declaration, the airline said that it endorsed BAR’s application for short-term aid policies to assist airline companies stay financially feasible.

According to its economic reports, landing, storage and path expenses, including fees charged outside Hong Kong to flights and aerial pollution safety charges, accounted for 16% of the working costs of Cathay, respectively.

Foreign airlines like Qantas Airways have also experienced a decline in supply with the Australian airline moving on the Hong Kong path to larger aircraft.

According to Airports Council International, the recent annual rating, Hong Kong was the world’s eighth-largest tourist airline in 2017, but the airline reported a decline in customer figures of 11.5% in August.

 

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