Airport Authority slashes fees to encourage new flights

Airport Authority slashes fees to encourage new flights

Spurred by competition from Guangzhou, Bangkok and Singapore, the Hong Kong Airport Authority is offering a 50 per cent cut in landing fees to carriers starting flights to new destinations.

Rebates begin on September 8 for the first year, for the second year, a 25 per cent discount will be offered.

The Hong Kong International Airport has been facing ever increasing competition with Baiyun airport at Guangzhou opening next month and Bangkok's new international hub scheduled to start operation in autumn 2005.

Singapore has slashed fees to lure budget airlines and is spending about US$140 million to expand the terminals at Changi Airport.

At present, 72 carriers, including 15 cargo airlines, fly from Hong Kong to 136 destinations.