Introduction

In an ambitious move to establish Hong Kong International Airport as a leading global hub, the Airport Authority is ramping up its initiatives to attract foreign airlines. This proactive strategy comes as the airport prepares to roll out its revolutionary three-runway system, anticipated to significantly boost capacity while awaiting Cathay Pacific Airways to restore its operations to pre-pandemic levels.

Airport Authority's Strategy

Vivian Cheung Kar-fay, acting CEO of the Airport Authority, shared insights in a recent interview with the South China Morning Post about these initiatives. She emphasized that the authority is undertaking measures 'beyond what an airport would normally do,' which includes offering enticing financial incentives to airlines for launching new routes, distributing free air tickets to bolster tourism, and hosting prestigious conferences aimed at business travelers.

Three-Runway System

Set to debut this Thursday, the HK$141.5 billion three-runway system will enhance passenger capacity by 50%, catering to an annual total of 120 million travelers. Additionally, cargo capacity is slated to double, increasing from 5 million tonnes to an impressive 10 million tonnes by around 2035.

Challenges with Cathay Pacific

In contrast, Cathay Pacific has revised its timeline for returning to pre-pandemic passenger levels, delaying its recovery from the end of 2023 to the first quarter of 2025. Cheung expressed concern about Cathay's significant market share, stating, 'They have 50% of our market share… so they affect us.' However, Hong Kong's transport authorities are determined not to rely solely on Cathay and are actively pursuing other airlines.

Airline Incentive Program

The Airport Authority has dispatched outreach teams to engage with governments globally to negotiate air service agreements, supplemented by a new airline incentive program designed to entice overseas carriers. The authority's approach involves personalized outreach, with team members traveling to meet airline executives to explain how they can benefit from these incentives.

Financial Incentives for Airlines

Launched in June, the incentive scheme allocates up to HK$7 million annually to airlines introducing new daily routes for two years, with long-haul routes benefiting for an additional year. Airlines can earn between HK$10,000 to HK$20,000 per tonne of the aircraft's maximum take-off weight during the first year of operation, promoting the establishment of routes predominantly to Europe and the United States.

Current Airline Operations

Cheung noted that while the financial incentives might not single-handedly sway airline decisions, they do play a crucial role in encouraging carriers to consider Hong Kong. Currently, 26 airlines operate from Hong Kong to 52 destinations, facilitating 238 flights per week.

Cathay Pacific's Developments

In the midst of these developments, Cathay Pacific's budget carrier HK Express has launched ten new routes, including destinations in Malaysia and Japan, while Greater Bay Airlines has expanded its reach to Japan and selected cities in mainland China. Hong Kong Airlines is set to resume its North American services by early next year, with a return to Vancouver already in the works.

Geopolitical Challenges

Despite challenges posed by geopolitical tensions affecting certain airlines’ operations, the Airport Authority is pushing boundaries, even venturing into tourism promotion. One notable effort included the distribution of 500,000 free tickets through the 'Hello Hong Kong' campaign in 2022, which achieved global media coverage and reached an audience of 3 billion people.

Future Initiatives