The Airport Authority's New Destination Incentive Arrangement - a scheme to re-introduce rebate incentives on landing charges - will take effect from September 8 for two years to attract airlines to operate flights to new destinations from Hong Kong International Airport.

The arrangement will offer airlines a 50% rebate on landing charges for the first year on flights they operate to a new destination, and 25% the following year.

A similar scheme introduced in March 2001 lapsed in March 2002. As a result, 17 airlines operating to 23 new destinations enjoyed total savings of $44 million in landing charges.

Connectivity crucial to airport business growth

New destinations will increase the connectivity of the airport's home market, the greater Pearl River Delta, to the world, and will further enhance Hong Kong's position as Asia's premier hub.

Airport Authority Chief Executive Officer Dr David Pang said airport business draws its growth from the increasing flow of people, goods, capital and information.

"Connectivity is one of the major competitive advantages to enhance these flows. With the renewed incentives, we are aiming to extend ourselves to more diverse and versatile markets," he said.

Airport business to grow with airlines

The authority's Airport Management Director Howard Eng said the re-introduction of the scheme will allow us to grow with our major business partners, the airlines.

"Hong Kong airport's high service standards and operation efficiency coupled with the diversified services provided by the airlines will offer passengers the reliability, flexibility and connectivity that are most crucial in designing their journeys," he said.

"We believe airlines will take advantage of the Government's policy of progressive liberalisation of the air services regime. Given the rapid development of the greater Pearl River Delta market and the demand for air travel in the region, the renewed incentives will encourage existing and new carriers to connect our airport with many more new destinations."

Board of Airline Representatives Vice-chairman Gilbert Chow welcomed the initiative, saying it will add impetus for carriers to extend their coverage and expand their customer base to the Pearl River Delta region and beyond.

"I am quite certain airlines will work with the authority to take the airport global route network to the next level," he said, adding the scheme will strengthen the airport's position as a regional aviation hub and bring economic benefits to Hong Kong.