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Following is the speech by the Acting Chief Executive, Mr Rafael Hui, at the opening ceremony of the 49th Assembly of Presidents of the Association of Asia Pacific Airlines (AAPA) at the Four Seasons Hotel this (November 18) morning (English only):
Mr Turnbull, Mr Chen, Presidents of AAPA member airlines, Mr Herdman, distinguished guests, ladies and gentlemen,
It gives me great pleasure to join you this morning at the 49th Assembly of Presidents of the Association of Asia Pacific Airlines. I would like to congratulate Cathay Pacific for hosting this prestigious event and to extend my warmest welcome to our overseas guests.
Few industries are as exciting and glamorous as the aviation industry. Indeed, I have been told that there are only two businesses that are truly addictive – airlines and making movies. Around the world, state-of-the-art airports have become major landmarks of the cities where they are located. Leading airlines are among the most recognized global brandnames and, in some instances, the pride of the economies concerned. The launch of every new generation of aircraft also marks a major breakthrough in the advance of our science and aero-space technology. But aviation is also an exceptionally challenging and risky business. In recent years, the industry has been plagued by a stream of unpredictable events – the 911 terrorist attack, SARS, staggering oil prices, to name but a few. This year, the global airline industry is forecasted to incur a total loss of almost US$8 billion.
Set against this harsh backdrop, the Asia Pacific region stands shining bright, thanks to its rapidly growing market, the vibrant economies within the region, increasingly liberal-minded governments, and, not least, the hard work of AAPA member airlines. AAPA airlines now carry about 20% of the global passenger traffic and a-third of the global cargo traffic. It is a testimony of your management skills and business vision that Asia Pacific carriers have remained profitable and compared so favourably with your competitors around the world.
Hong Kong is fortunate enough to be located at the heart of this region and right at the gateway of China. Our unique geographical position has enabled Hong Kong to develop into a major aviation hub. Today, Hong Kong is connected to over 140 cities worldwide through 5,200 weekly flights operated by 80 airlines. The Hong Kong International Airport and our home-based carriers are repeatedly voted the best airport and airlines in internationally renowned surveys and publications.
The Hong Kong SAR Government is committed to strengthening our status as an aviation hub. Hand in hand with industry partners, we continue to expand and up-grade our airport facilities to better serve the travelling public and the freight forwarding communities. We spare no efforts in improving our inter-modal connections with the Mainland, in particular the thriving Pearl River Delta area, so as to enlarge our passenger and cargo catchment area. We maintain a credible and business friendly regulatory regime which benchmarks the best international standards.
Hong Kong is a true believer in free economy and open markets. The same philosophy pervades throughout our aviation sector. Airlines are able to plan and develop their businesses in a liberalised, transparent and predictable environment. And our market allows airlines to compete solely on their own strengths. The Government provides absolutely no subsidy but some support to our local airlines in whatever form or shape.
In the last two years or so, we have reached substantially liberalised arrangements with about 30 aviation partners. Negotiations are underway with many more, including countries in the Asia Pacific region, Europe and the US. As a result of our liberalisation efforts in recent years, we have witnessed the entry of a number of new carriers, both local and foreign, to the Hong Kong market. Our aviation network has continued to expand and there has been healthy growth in both passenger and cargo throughput. These pleasing outcomes owe much to the support of key stakeholders such as AAPA members.
Ladies and gentlemen, the sustained development of civil aviation relies largely on the concerted efforts of the industry, the Government and international organisations to respond to the many challenges we are facing. AAPA has done a marvellous job in providing a focal point for member airlines to share views and drive changes. For the conference this year, I notice that you have programmed "severe turbulences" in your agenda, including the threat of flu pandemic, changing insurance market and aviation security. With expert and experienced piloting by members, I am sure you will overcome the turbulences, have a smooth flight and a safe and above all profitable landing. In closing, I wish you all a successful conference and a most pleasant stay in Hong Kong.
Thank you.
Ends/Friday, November 18, 2005
Issued at HKT 10:34
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