Travel Industry reacts to Hong Kong Airports' relief package

Dragonair has said the measures announced today by the Airport Authority of Hong Kong to defer payment of charges and offer a special long-term parking rate for grounded aircraft are not sufficient to relieve the heavy burden currently being felt by airlines in Hong Kong.

"The temporary measures announced today are a step in the right direction, but more needs to be done given the seriousness of the current situation," said Dragonair Chief Executive Officer Stanley Hui. "We call on the Airport Authority to reduce regular charges, such as landing and parking fees, as these are the most significant airline cost components among all levies. Such a move would also be in line with what has been done at a number of airports around this region."

He continued: "We hope that the Board of Airline Representatives of Hong Kong and the Airport Authority will discuss these issues further and as a matter of urgency, to enable the aviation community to weather this difficult period."

The Director General of the Association of Asia Pacific Airlines (AAPA), Richard Stirland had even stronger words, calling the relief package "pathetically inadequate".

Mr Richard Stirland, said in a statement today, "Naturally, in the acute circumstances, any sort of concession is welcome, but a mere deferral of payment for ten months is hardly significant: it represents the cost of interest on the cash in a world of low interest rates,"

"We did request consideration of parking fee reductions, and welcome a move on this issue. However, it is unclear what "up to 75%" actually means in absolute percentage terms, and how much cash it represents," continued the Director General.

"The Airport Authority claims these concessions are worth in total HK$208 million to the whole industry. There is no indication how this figure is arrived at, and to put it into perspective, one airline alone claims it is losing HK$25 million a day. It is self-evident that this package is pathetically inadequate."

"Sadly, a comparison with the real cash concessions made by other airports in the region does not cast a very favourable light on Hong Kong, to put it mildly. Others, no doubt, will express themselves more forcefully." Mr Stirland concluded.

Giovanni Bisignani, IATA's Director General and CEO, said "The news of today's announcement by Hong Kong is disappointing. The severe crisis facing the industry requires emergency measures. This is not the time for the half-measures revealed today. The offer of a 50% deferral of fee payments is nowhere near the relief needed for the airlines. It is a placebo for a serious illness. We are not asking for hand-outs. All Hong Kong needs to do is look around to its neighbours for examples of the kind of meaningful support that can be offered," emphasized Bisignani.

IATA said the announcement is particularly disappointing after IATA took its message to the attention of the very highest levels of Government in Hong Kong in a personal note to Chief Executive Tung Chee Hwa earlier this week. "Air transport is a strategic pillar of the Hong Kong economy. In order to enjoy the wide economic benefits that the air transport industry brings to Hong Kong in good time, it is essential that we get some meaningful support in our hour of need," concluded Bisignani.

IATA is also targeting Seoul's Incheon International Airport and Tokyo Narita to lower their fees in line with airline efforts to reduce costs.