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Airlines require Hong Kong airport tax rebate



In Hong Kong, after months of protests, which have increasingly affected the airport and airlines, there has been a huge drop in visitor numbers. Not only has the number of incoming passengers fallen, but also the number of connecting passengers has fallen in some cases in view of the disruptions noted by the airport.

How much has demand fallen in Hong Kong?

Demand has fallen in Hong Kong. Visitor numbers dropped sharply at Hong Kong airport, even though they were traveling through the airport:

  • In August Hong Kong airport recorded a 12% drop in takeoff instead of connecting flights)
  • In the first 1
    0 days of September, Hong Kong saw a 90% fall in travel groups from China, after falling 63% in August

Think August is still a high point It is very likely that the numbers will continue to deteriorate for the rest of the year.

Hong Kong

Some airlines have reduced their capacity.

We have seen that some airlines have adjusted capacity as a result. For example, Cathay Pacific has cut frequencies on some popular routes, while United has canceled the flight from Chicago to Hong Kong and downgraded its flights from Newark and San Francisco to Hong Kong.

I assume that airlines will continue to adapt As a result of this situation, capacity has been increased.

United has already canceled the flight from Chicago to Hong Kong.

Airlines want to be relieved from the airport.

Hoping to make flights to Hong Kong sustainable, the Hong Kong Board of Airline Representatives has asked the airport to cut fees.

The organization represents over 70 airlines flying to Hong Kong, and they propose reducing the cost of airlines flying to and from Hong Kong, and lowering the rental costs for office and airport lounges to the airlines to provide some relief.

While some relief measures have been taken in Hong Kong as a whole, there was nothing special for airlines yet. Aviation supports 330,000 jobs in Hong Kong and contributes over 10% to the city's GDP.

By letter:

"In light of the situation, the BAR urges the Hong Kong government to consider introducing short-term relief measures to help airlines survive this extremely difficult period.

It would certainly be helpful if the government could temporarily waive these operating costs so that Hong Kong-based airlines can remain economically viable.

Airport charges in the region. It is noted that approximately 16% of Cathay Pacific's operating costs consist of airport and airline security fees. So this is a significant amount.

Hong Kong is also known to be one of the highest fees in the region. On average, a Boeing 777-300ER flying to the airport would charge more than HKD 110,000, which is approximately $ 14,000. This includes landing, parking and passenger fees.

Airlines Want Hong Kong Airport to Lower Their Fees

Conclusion

It's a tough time in Hong Kong, and airlines are suffering. United President Scott Kirby has called the financial performance of Hong Kong flights "terrible" at the time, and I suspect that they are not alone in this at the moment.

It will be interesting to see if the airport is ready to enact some fees. To be fair, this would not be the first time they did so, as they offered similar relief during the SARS crisis and the financial crisis.

This is not the case considering that Hong Kong is one of the highest airport charges. It seems unreasonable that airlines want short-term facilities.


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