Hong Kong airport launches new incentive programme to boost inbound services

After consultation with local and foreign airlines’ representatives, the Airport Authority Hong Kong (AAHK) has launched the new Airport Network Development Programme in June to strengthen its international aviation hub status.

The programme consists of two parts – New Route Scheme and the Strategic Development Scheme – to incentivise home-based and foreign airlines to open more new routes and increase the frequency of flights connecting to Hong Kong. Rewards range from HK$10,000 to HK$20,000 (US$1,282 to US$2,564) per trip, for routes continuously operated for over 20 weeks – this means about HK$7 million to HK$8 million for each new route per year.

Hong Kong aims to increase inbound flight services by introducing two new incentive schemes (Photo: Hong Kong International Airport)

The New Route Scheme covers all passenger and cargo airlines that launch new destinations connecting to Hong Kong International Airport with a defined continuity, and qualified carriers will be eligible to receive financial incentives for two years. Applications are open from now to December 31, 2027.

The Strategic Development Scheme rewards airlines that launch new routes and/or increase frequencies to AAHK’s targeted regions or countries – namely North America, Europe and Australia/New Zealand – will be granted financial incentives for three years.

According to AAHK, the programme has already received positive response from airlines. Since June, five airlines have initially qualified for this scheme – Starlux Airlines, China Southern Airlines, Hong Kong Airlines, HK Express and Jin Air, covering eight routes, including Taipei and Taichung in Taiwan; Xining, Harbin and Kashgar in China; Danang (Vietnam); Clark (the Philippines); and Seoul (South Korea).

Prince Travel, director of sales and marketing, Wing Wong noted that while airlines have introduced new routes and increased flight frequency to meet demand, what Hong Kong really needs are arrivals from new destinations.

Welcoming the initiative, an Emirates spokesperson said: “These incentive programmes not only support airlines expanding their route networks but also contribute to the recovery of air travel in the region. Emirates is dedicated to working collaboratively with industry stakeholders to drive the recovery of Hong Kong’s aviation market and deliver enhanced travel options for passengers.

“While financial incentives are certainly a compelling factor for airlines to consider when evaluating route expansions or frequency increases, the decision-making process also takes into account various factors such as market demand, operational feasibility, and more. We will continue to monitor market dynamics and customer needs to optimise our route network and flight schedules.”

Home-grown Cathay Group remains on track with their plan to reach 100 per cent of pre-pandemic passenger flights within 1Q2025. So far this year, the Cathay Pacific Airways has already announced 10 new destinations, seven of which have commenced services with Ningbo, Riyadh and Cairns set to follow over the coming months.

The Emirates spokesman added: “Aviation is a very competitive industry and before the pandemic we were already competing with more than 100 carriers in Hong Kong. We welcome competition and recognise that an active and vibrant market for air services is critical to the success of Hong Kong as an international aviation hub.”

Sponsored Post