Hong Kong SAR Government approves new airport charges

(HONG KONG, 21 January 1998) -- The Hong Kong Special Administrative Region Government will gazette on Friday 23 January the Airport Authority's (AA) Scheme of Airport Charges for the new Hong Kong International Airport at Chek Lap Kok.

The Scheme will comprise three charges: a Landing Charge, a Parking Charge, and a Terminal Building Charge (TBC).

The Landing Charge, for the use of runways and taxiways, will be at a flat rate per aircraft of HK$2,600 for up to 20 tonnes Maximum Take Off Weight (MTOW), and HK$74 per additional tonne.

The Parking Charge, for the use of aircraft parking stands, is calculated by the length of the parking period (measured in 15-minute parking units) and the type of parking stand used:

Type of stands Rate -- per parking unit

a. Terminal building frontal parking stands -- HK$183

b. Terminal building remote parking stands -- HK$147

c. Cargo apron parking stands -- HK$117

d. Maintenance apron parking stands -- HK$94

The minimum charge is four parking units per stay. A lower rate is set for parking between midnight and 7:00 am where ground handling services are not required.

The TBC, for the use of the passenger terminal building and related facilities, will be HK$39 per departing passenger, excluding transit passengers. Aircraft that do not use these facilities, such as all-cargo carriers, will not be required to pay the TBC.

In determining the structure of user charges at the new airport care has been taken to ensure that charges are simple, non-discriminatory and based on the "user pays" principle, and that they are comparable with those at other major international airports. The charges represent, in aggregate, an increase of about 20 per cent over those at Hong Kong's existing international airport at Kai Tak in real terms -- and even less for cargo aircraft. In return, the new airport will provide greater capacity and operational flexibility, and a wider choice of world-class facilities, than Kai Tak. The new airport, capable of operating round the clock in all weather, will play a pivotal role in the continuing development of the SAR economy, in particular the vital areas of air cargo and tourism, and will help to maintain Hong Kong's role as a centre of international and regional aviation.

The AA estimates that the total revenue required from airport user charges for the financial year 1998-99 will represent 37 per cent of its total commercial and aeronautical revenue. This proportion compares favourably with many other international airports around the world. According to a survey conducted by the Airports Council International in 1996, the average proportion of revenue raised from airport user charges was 64 per cent in respect of Asian airports, 44 per cent for Pacific airports, and between 50 per cent and 60 per cent at airports in other regions.

Over the period it was devising the Scheme, the AA held eight rounds of consultations with local and international airlines, including freight operators, through the Hong Kong User Charges Board of the International Air Transport Association (IATA) between February 1996 and October 1997.

Ref. PR-327