Proposed levies for funding HKIA’s 3rd runway provoke trade ire

HONG KONG trade players are objecting to levies that the Airport Authority (AA) is proposing to impose on passengers and airlines, saying that the entity is capable of raising funds through other means.

Following the Executive Council’s approval to buid a third runway at Hong Kong International Airport (HKIA), AA has suggested a HK$180 (US$23) levy on departing passengers while airlines will have to pay an additional 15 per cent in airport charges from next year. The third runway wiill be situated on 650ha of reclaimed land and is expected to take eight years for construction.

Strongly opposing the levy, Gray Line Tours managing director, Michael Wu, said: “We support the new runway but AA should explore all funding options, like issuing bonds, before charging passengers.

“As far as I know, it hasn’t even tried to approach the Legislative Council for funding so it seems to me that AA hasn’t any strong reason for such a decision.”

Airlines have also chimed in. Home-grown LCC HK Express deputy CEO, Andrew Cowen, is concerned that increased landing fees and the introduction of an airport construction fee will affect business. “If there are additional charges on top of existing fees, more and more of our guests will end up paying more to use the airport than they do to actually fly with us. This doesn’t sound quite right, or how it should be.”

Meanwhile, Cathay Pacific Airways in a statement said it believes AA is fully capable of financing the construction of the runway through its own means without the need to impose a additional financial burden on travellers.

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