Press Release
 
 


Right formula makes HK Asia's aviation hub

The Government is committed to enhancing Hong Kong's position as an international aviation hub and as the hub of Asia, Permanent Secretary for Economic Development Sandra Lee said today (October 21).

Speaking at the Aviation Forum organised by the Foreign Correspondents' Club, Ms Lee said that today over 70 airlines operate 4,500 weekly scheduled flights between Hong Kong and 140 destinations around the world.

"This extensive network forms the backbone of our hub. It represents a very good mix between long and short-haul services; between international services and services to the Mainland; and between point-to-point traffic and transfer traffic," she said.

However, no one in the industry could afford to be complacent because of the rapidly changing environment and fierce competition, particularly from other major airports in the region and the emerging low-cost carriers.

Ms Lee said Hong Kong could remain Asia's hub if it adopted the right formula - infrastructure, investment, and institution.

"Hong Kong already has one of the best airports in the world. This great piece of architecture is indeed the very foundation supporting our aviation development. To stay ahead, we are continually improving its hardware, enhancing its service quality, and adding value to its business model," Ms Lee said.

SkyPlaza, which will increase passenger handling capacity and add new shopping facilities, office space and a much-needed transport interchange, is due to open next year. AsiaWorld Expo will open within two years to provide a world-class exhibition facility at the airport. And two new tourist attractions, Hong Kong Disneyland and the Ngong Ping cable car are under construction in the vicinity of the airport island.

"In short, the airport will soon be the focal point of a cluster of trade, tourism and commercial facilities," Ms Lee said.

She said that while Hong Kong's population was relatively small to support a super hub, the industry was developing the vast potential market of transfer traffic.

This was being achieved by a multi-pronged approach to expand the catchment area through developing cross-boundary intermodal connections, particularly with the Pearl River Delta.

Infrastructure projects such as the Western Corridor, the Lok Ma Chau Spur Line, an express rail link with Guangzhou, the Hong Kong-Zhuhai-Macau bridge, and the cross-boundary coach and ferry services would provide seamless connections between the airport and major cities in the PRD.

To further stretch Hong Kong International Airport's reach beyond the PRD, steps were being taken to better link its international and Mainland air networks.

Ms Lee said Hong Kong would continue to promote the aviation industry through progressive liberalisation, a policy which was clearly bearing fruit.

"Since the opening of HKIA in 1998, we have achieved remarkable growth both in traffic volume and network size. Passenger traffic has grown by 34%, cargo traffic by 77%, number of scheduled services by 50%, and number of destinations by 40%. And behind all these numbers is a far more important development - competition," she said.

"Some may be concerned about competition, in particular that posed by the new Baiyun Airport in Guangzhou. But the old days of having to turn away traffic because of capacity constraints at Kai Tak have long gone. Hong Kong has always thrived on competition. The key to our success is doing the right things at the right time," Ms Lee said.

Ends/Thursday, October 21, 2004

* Link to full speech by Ms Sandra Lee


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