Airport Authority to invest for Hong Kong

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MAR 18, 2015: Airport Authority Hong Kong (AA) welcomes the Executive Council’s (ExCo) approval for expanding Hong Kong International Airport (HKIA) into a three-runway system (3RS). Vincent Lo Hong-sui, Chairman of the AA, said, “Expanding HKIA into a three-runway system provides obvious benefits. It will consolidate our city’s status as an international and regional aviation hub, spur economic development and create hundreds of thousands of jobs. This is a project for Hong Kong, and we are committed to taking it forward.” The 3RS, which situates on 650 hectares of reclaimed land, will cost the AA HK$141.5 billion at money-of-the-day prices. The project’s key facilities include a new runway, taxiways and aprons, a third runway concourse, an expanded Terminal 2, an automated people mover and a baggage handling system. The project will need eight years for construction. If the AA can commence work in 2016, it can be completed by 2023. As outlined in “Hong Kong International Airport Master Plan 2030”, the 3RS will be able to serve 30 million more passengers annually upon its completion. Land will be reserved for further airport expansion, depending on future demand. The AA also unveiled its funding proposal for the project, which is based on a “joint contribution and user-pay” principle. According to the AA, the project will be funded through three channels: bank loans and bonds .HKIA’s operational surplus, which has typically been paid to the Government as dividends end-users, including passengers and airlines. According to Fred Lam, Chief Executive Officer of the AA, “Around 70 percent of HKIA’s passengers are non-Hong Kong residents. Our suggested user-pay principle makes good sense, because subsidising the project through the Government means local taxpayers would be footing the bill for overseas passengers.”

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