London Daily

Focus on the big picture.
Saturday, May 31, 2025

Hong Kong reveals HK$1 billion package to help its aviation industry through the crisis

Hong Kong reveals HK$1 billion package to help its aviation industry through the crisis

Hundreds of companies to receive fresh financial aid as the city sector struggles during the pandemic. Authorities earlier accused of not doing enough to shield firms including airlines from the coronavirus impact

Hong Kong will shore up its aviation industry with an extra HK$1 billion (US$128 million) to help hundreds of companies through the Covid-19 pandemic, the authorities revealed on Monday following intense criticism over the levels of support previously offered to the sector.

The government and the operator of Hong Kong International Airport (HKIA), the Airport Authority, said the package would support about 400 firms including airlines and retailers.

“The aviation industry is an important driver for Hong Kong's economy. We are determined to maintain Hong Kong’s competitiveness as an international aviation hub, and even more so in challenging times,” a government statement said.

For the latest package, the government will chip in HK$670 million, sourced from the levying of air traffic control charges, with the Airport Authority stumping up HK$330 million, for the relief measures covering February to June this year.



Backdated from February and worth up to HK$630 million, airlines will receive a full waiver on five months of aeronautical charges involving parking and air bridge fees for grounded planes, as well as a 40 per cent reduction over four months on landing charges.

Airport shops and restaurants – left nearly deserted for months from the impact of Hong Kong’s anti-government protests and the pandemic – will get a 70 per cent discount on rent for the three months to May, and pay half for June. The total rental concessions will be worth HK$320 million.

Also available is a HK$50 million training fund to help boost the skills of up to 25,000 workers employed in and around the airport, many of whom are on unpaid leave.

Authorities had earlier been heavily criticised for not offering direct financial help during the huge downturn in air travel brought about by the worsening health crisis.

The industry previously received HK$1.6 billion worth of aid, but that did not include discounts on aeronautical charges, which form a major operating expense for airlines flying to and from HKIA.

The Transport and Housing Bureau denied it had been slow to respond to the health crisis, pointing to the earlier package as a “quick response in helping the business to alleviate liquidity and operational pressure.”

Following Monday's announcement, the total sum pledged by HKIA amounted to only 23 per cent of its HK$8.4 billion profit for the 2018/19 financial year, on HK$19.5 billion of revenue.

Some 27 per cent of the airport’s revenues come from aeronautical charges, including air traffic fees, which account for 17 per cent of Cathay Pacific’s expenses.

Although it faces financial pressure over Covid-19, HKIA has remained profitable for 19 years in a row, a period covering September 11, the severe acute respiratory syndrome outbreak in 2003 and the 2008/09 global financial crisis.

S&P Global Ratings said in its latest report on Monday that relief measures would strain HKIA’s cash flow at a time when it was spending HK$141.5 billion on the third runway project. It warned the airport faced a “lengthy recovery period.”

“We believe the financial buffer for AA … has been exhausted due to drastically low passenger traffic, still-high capital expenditure and operating expenses, and financial relief measures it will provide to airlines and tenants,” the report said.

HKIA, which handled 71.5 million passengers last year, could see traffic fall up to 40 per cent this year, the ratings agency added.

Alexandre de Juniac, the director general and CEO of the International Air Transport Association, welcomed the extra help from Hong Kong but said more cash was required.

IATA said the global airline industry needed a bailout in the region of US$200 billion.

“Looking at the number of airlines serving Hong Kong, perhaps we could see something additional,” de Juniac said.

“Considering the position of Hong Kong, US$129 million is a good sign but should probably be a little more if Hong Kong wants to maintain its connectivity with strong and dynamic companies.”

Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×