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Old September 13th, 2013, 03:53 PM   #4381
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Hong Kong's Cathay Skies
13 September 2013
The Wall Street Journal Asia

The Hong Kong government faces a decision that will have a major impact on competition in the territory -- but cartels or price-fixing have nothing to do with it. An airline that wants to base itself in Hong Kong has encountered regulatory resistance.

Jetstar, a unit of Qantas, has applied to start a franchise low-cost carrier at Chek Lap Kok airport. If allowed to start operating, the airline promises to bring Hong Kongers and visitors lower fares to mainland China, Japan and elsewhere. A decision had been expected by the end of this year, but may now be delayed as deliberations continue.

Debate hinges on whether Jetstar Hong Kong's "principal place of business" would be in Hong Kong. That is the legal standard set by the territory's mini-constitution, the Basic Law, for licensing new air carriers.

Jetstar says the Hong Kong offshoot is one-third owned by local firm Shun Tak, a majority of its board will be Hong Kongers, and its executive offices and base of operations will be in the territory. The dominant local carrier Cathay Pacific and its allies argue that all important decisions on routes and pricing would still be made in Australia, making the principal place of business Down Under.

The license matters because all of Jetstar's flights would come under the auspices of bilateral agreements Hong Kong negotiates with other governments to govern traffic rights. Cathay says allowing Jetstar to benefit from Hong Kong's agreements if it's not truly a Hong Kong carrier would open a backdoor to circumvent the existing bilateral system. That, Cathay claims, would reduce the Hong Kong's leverage to secure new routes or expand existing ones.

Perhaps not coincidentally, Jetstar also would exert significant competitive pressure on Cathay. It is a well-managed low-cost carrier whose franchises have a good track record elsewhere in Asia.

Which is why allowing Jetstar Hong Kong to open for business is the right move. Not only will consumers enjoy lower prices, but the increased activity at Hong Kong's airport will create jobs and cement its role as a regional hub. That benefits a host of other industries.

Cathay's argument based on the importance of bilateral agreements might once have made some sense. But the global trend in aviation is toward increasing openness and competition. "Open skies" agreements, such as that between the U.S. and European Union, are gaining traction as a way to free traffic from the confines of strict bilateral deals. Hong Kongers can only benefit if their government embraces the liberalization trend by opening investment in the industry, even if unilaterally. Unilateral elimination of trade barriers has served the territory well in every other economic sphere.

Meanwhile, this fight illustrates why antitrust laws are not worth the disruption to business. The biggest threat to competition is always government power harnessed to the interests of influential incumbents. If Hong Kong's government is serious about competition, it will approve Jetstar's application.
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Old September 15th, 2013, 07:08 AM   #4382
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yeah yeah, approve it and see HK's death as a hub

Jetstar will only cannibalize slots and have point to point passengers

look at SQ- they are reducing the number of long-haul cities they fly to, but they still can compete long term for reasons explained below

I am generally pro competition- but HK aviation is different as it is slot restricted- due to an incompetent government-started third runway consultation only when airport reached 64/68 landing slots per hour-most forward thinking governments start preparing much earlier-yeah the China wall just got dismissed this week in SCMP as the main reason (trying to find online version of article)

it is much easier for SQ to launch LCC's- there are heaps of slots in SIN- lots more runways being planned- this is the case all over asia- Incheon,CAN etc

not the case for HKG- so if HKG wants to be connected to more cities they need to have some restrictions

besides Jetstar is only 33% HK owned and can operate international flights- CX cannot do the same in Aussie- how is this fair??
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Old September 15th, 2013, 07:50 AM   #4383
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So, how do consumers in HKG benefit? JQ will bring with it low fares.
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Old September 15th, 2013, 07:59 AM   #4384
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Quote:
Originally Posted by CBXLHRKGA View Post
yeah yeah, approve it and see HK's death as a hub

Jetstar will only cannibalize slots and have point to point passengers

look at SQ- they are reducing the number of long-haul cities they fly to, but they still can compete long term for reasons explained below

I am generally pro competition- but HK aviation is different as it is slot restricted- due to an incompetent government-started third runway consultation only when airport reached 64/68 landing slots per hour-most forward thinking governments start preparing much earlier-yeah the China wall just got dismissed this week in SCMP as the main reason (trying to find online version of article)

it is much easier for SQ to launch LCC's- there are heaps of slots in SIN- lots more runways being planned- this is the case all over asia- Incheon,CAN etc

not the case for HKG- so if HKG wants to be connected to more cities they need to have some restrictions

besides Jetstar is only 33% HK owned and can operate international flights- CX cannot do the same in Aussie- how is this fair??
Every major international airport worldwide is slot-restricted. There are never enough slots at prime times to satisfy demand. It's nothing new. The HK airport authority has started consultations for a 3rd runway years before the current setup reaches capacity. Jetstar is not likely to add to congestion as they will go for off-peak slots to justify their lower fares.

There have always been LCC's operating out of HK. These are mainland carriers that are far cheaper than CX/KA. Not only do they compete for China and North Asia routes, they are also a very cheap 1-stop alternative to Europe, oftentimes competitive against the Middle Eastern carriers.

Meanwhile, LCC's have cannibalized SQ's yields. More runway capacity there means more headaches for SQ, especially now that the kangaroo route has moved to Dubai.
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Old September 15th, 2013, 03:55 PM   #4385
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Seatbelts for third runway landing
13 September 2013
China Daily - Hong Kong Edition

The main trouble with our legislators' freebie to France with Cathay Pacific is that somebody opened their big mouth about it. And now we know who, where, what, when and how - the only part of the jigsaw with the slightest tinge of doubt about it is why. Frankly, Cathay's supposed reason - to "introduce" them to the Airbus 330 and visit the Airbus factory because Cathay intends to change to an all-Airbus fleet - is a bit airy-fairy.

It is no surprise to learn that our lawmakers have been accepting free trips from airlines since 2005, to mark such events as the delivery of a new jetliner or the opening of a new route, theoretically gaining a better grasp of aviation development and its latest technical advances.

We also learned from neo-democrat Gary Fan Kwok-wai, who was not invited and may have been suffering from a mild attack of sour grapes, that "it was rare" for Cathay to invite only some of the lawmakers. The inference here is that in previous cases the airline has invited all members of the Legislative Council (LegCo) - but, if that really did happen, nobody blabbed about it afterwards. Fan added that "lawmakers should judge prudently whether to accept such an invitation, to avoid giving the public the impression that they will benefit from the trip."

Claudia Mo Man-ching pointed out that none of the six Civic Party legislators was invited - which, in a way, could be interpreted as an inverted compliment. She added that the guest list gave a false impression because "they accepted the invitation as lawmakers yet took along their families". The same point also peeved her colleague Professor Kenneth Chan Ka-lok: "Visiting an Airbus factory is a business trip and it's inappropriate for the family to tag along".

Let's get down to basics. First, there is absolutely nothing wrong with Cathay Pacific offering free "jollies" to anybody it chooses. Second, if we are absolutely honest about it, there is hardly one of us who wouldn't have put up his or her hand for a free return ticket to Paris or any other Cathay destination, especially if we were to be wined and dined in Business Class there and back. Third, if, for reasons of courtesy or whatever, Cathay chose to invite the politicians' spouses, too, that's their prerogative.

But each and every one of those legislators is, for the term of his or her office, in a position of trust and honor to serve the Hong Kong public to the best of their ability, and should therefore be bound not to be swayed or influenced in any way in future decision-making on subjects involving Cathay, or the aviation industry generally.

Right now Cathay is involved in a bitter fight to protect its interests against an attempt by the family of Macao casino czar, Stanley Ho Hung-sun, to horn into the Hong Kong budget airline bonanza via an aerial interloper from Australia named Jetstar, the cheap younger brother of the Australian national carrier Qantas. Leveraging on their conglomerate, Shun Tak Holdings, Ho has moved with dizzying speed on the deal, plunking down a cool $66 million into Jetstar from its previous 50-50 owners, Qantas and China Eastern Airlines, registering Jetstar Hong Kong, lodging an application with the Hong Kong government for an aviation license to operate out of Hong Kong, and getting Ho's daughter Pansy Ho Chiu-king appointed the new airline's chairman. (Ms Ho is already Shun Tak's managing director.)

Cathay Pacific is 43 percent owned by the Swire conglomerate, with the next biggest investor being the State-owned Chinese flag carrier Air China with 30 percent.

In total, 83 airlines operate from Hong Kong International Airport, which in 2012 handled 56 million passengers. The airport is also the world's busiest for cargo traffic, handling 4 million tons last year. Cathay is the airport's biggest user, flying from Hong Kong to 51 destinations.

In March last year, after a painstaking study of future requirements, the Airport Authority decided that a third runway was needed. Obviously the key factor in this decision was the assumption that still more airlines, including airfreight providers, would wish to fly to and from Hong Kong. The decision also affected Cathay's future planning, and the airline plans to buy 50 Airbus aircraft over the next eight years, taking full advantage of the extra runway.

As Hong Kong's flag carrier, and with its long-standing record of serving Hong Kong since soon after the end of World War II in 1945, Cathay should, on the one hand, be entitled to expect some preferential treatment from the government but, on the other, not want new rivals frozen out of opportunities, especially if they will offer cheaper fares. Why go to the expense of building a third runway if its use is to be restricted? And if airlines are to dictate policy, why have an Airport Authority?

Albert Lin is a PR and media consultant.
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Old September 15th, 2013, 03:55 PM   #4386
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By wwk9010 from dcfever :

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Old September 16th, 2013, 04:57 AM   #4387
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Jetstar gives the lowdown
The Standard
Thursday, September 12, 2013

Budget carrier Jetstar Hong Kong Airways has sparked strong interest from travel agencies, keen to sell cheaper tickets and offer more packaged tours.

"Budget airlines aren't confined to individual travelers but group tours too," Jetstar Hong Kong chairwoman Pansy Ho Chiu-king, said at a luncheon yesterday.

Ho, also managing director of Shun Tak Holdings, added travelers would rather save on flights and hotels and spend on other items, industry findings show. "We should offer more choices to customers. I think most people hate taking a shuttle bus before boarding a plane but they have to be prepared for that with Jetstar, which is going to be 50 percent cheaper [than conventional airlines]."

She said passengers have different expectations depending on how much they are paying for the fare. "Our existence will prove the value of the biggest operator, which they will distinguish from us."

Jetstar Hong Kong hopes to start operating this year but it is still waiting for a license from the government. Chief executive Edward Lau Chung- wai said it can start operating immediately as it has acquired 18 Airbus A320 and has hired enough staff in Hong Kong.

Jetstar's application for the license has been gazetted but Cathay Pacific Airways, Hong Kong Airlines and HK Express have filed formal objections. Cathay said Jetstar does not meet Basic Law Article 134 that its principal place of business must be Hong Kong as it is a franchise of Jetstar, Australia. Both Hong Kon
g Airlines and HK Express are controlled by Hainan Airlines and have investments from Ho's father Stanley Ho Hung-sun.

HK Express is to outline its latest business plan as a budget airline today.

Pansy Ho yesterday said the two airlines are her father's private investment and do not operate under Shun Tak.

Lau said Jetstar Hong Kong will continue to make procurements via Australia to save costs. But that does not mean it is an Australian operation. He reiterated he himself is a local who reports to a board of seven directors, which only has two non-locals. They are representatives of the other two shareholders, China Eastern Airlines and Qantas Group.

"Jetstar Hong Kong will offer point- to-point five-hour flight in Asia and China. Ninety percent of our passengers will spend some time in the SAR bringing economic benefit, which could amount to HK$8 billion with five million people we target to carry each year."

Pansy Ho said a thorough study of the business model has been made. "The time our aircraft will spend on the ground will be two times less than that of traditional carriers. Parking fees in Hong Kong airport are high but not unaffordable," Lau added.

Both Ho and Lau stressed Jetstar Hong Kong will be better at using existing resources of the airport, which still has capacity to spare during off- peak hours.

Local airline operators must create a bigger customer base before the Hong Kong-Zhuhai-Macau bridge is completed in 2017, when people can have easy access to other large airports in the Pearl River Delta, Ho said.
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Old September 17th, 2013, 06:58 PM   #4388
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Source : http://pic.feeyo.com/posts/593/5935221.html







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Old September 19th, 2013, 09:05 PM   #4389
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Passengers and Flight Movements at HKIA Set New Monthly Records for Two Consecutive Months
Press Release

(HONG KONG, 15 September 2013) – Traffic at Hong Kong International Airport (HKIA) continued to grow significantly in August 2013. During the month, passenger throughput reached 5.6 million, while flight movements recorded 32,395 – achieving remarkable year-on-year growth of 8.2% and 6.3%, respectively, and setting new passenger traffic and flight movement records for the second month in a row. Cargo handled also grew by 2.7% over the same month last year to 337,000 tonnes.

The growth in passenger volume in August was driven mainly by visitor traffic and Hong Kong resident traffic, which saw 8% and 13% gains respectively year on year. Passenger traffic to and from Mainland China and South East Asia performed particularly well.

An 8% year-on-year increase in transshipments led the growth in cargo tonnage last month. Cargo throughput to and from Mainland China and South East Asia improved most significantly compared to other key regions.

Stanley Hui Hon-chung, Chief Executive Officer of Airport Authority Hong Kong, said, “We are pleased to see such strong growth in both passengers and flight movements during the peak summer season. SkyPier also set a new monthly record in August 2013, servicing more than 278,000 passengers – a 4.8% increase compared to last August, when the previous record was set.

On the cargo front, Mr Hui noted that cargo performance at HKIA continued to outperform the rest of the world, and has maintained growth for five consecutive months despite the challenging global economic situation. The result is indicative of HKIA’s competitiveness as an air cargo centre.

“Recent economic data suggests a slow recovery in manufacturing activities in China, as well as trade with key trading partners. Shipping freight rates have increased on some routes with rising demand expected over the coming seasonal peak months. We therefore remain cautiously optimistic regarding cargo performance in the near future. As part of our on-going capacity expansion plans at HKIA, we are pleased to announce that 28 additional parking stands will become available by end 2014,” added Mr Hui.

For the first eight months of 2013, passenger traffic registered a year-on-year increase of 5.6% to 40.0 million. Cargo volume grew by 2.1% to 2.6 million tonnes, while flight movements increased by 5.6% to 245,205 over the same period last year.

On a rolling 12-month basis, the number of passengers reached 58.6 million and 4.08 million tonnes of cargo was handled, representing growth of 4.8% and 3.5% respectively. Flight movements also rose by 5.5% year on year to 364,610.
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Old September 22nd, 2013, 07:36 AM   #4390
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Speaking of Hong Kong International Airport, super typhoon Usagi--the strongest typhoon to threaten Hong Kong since Hope in 1979--is on a direct path to the former British colony as I type this (2135 hours Pacific Daylight Time on 21 September 2013 in the USA). Has Cathay Pacific moved their planes to a safer location, especially given that the current Hong Kong airport location is located to much more open water and the typhoon is supposed to arrive during high tide, which means huge potential for storm surge damage?
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Old September 24th, 2013, 07:55 AM   #4391
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Hi, I'm a newcomer in here.

I would like to know something about Hong Kong airport.

When they planned the current airport in 1980s and 1990s, they originally planned to build "X" building next to the existing "Y" building.
I wonder what will they do with the lot of land which was originally intended for "X" building?
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Old October 2nd, 2013, 04:27 PM   #4392
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Granting licences to foreign budget airlines will harm Hong Kong's interests
Albert Cheng says a green light for Jetstar and others will create unfair competition for our home carriers and infringe the city's air sovereignty
27 September 2013
South China Morning Post

Hong Kong Express Airways, a sister company of Hong Kong Airlines, has announced its first batch of budget flights to seven popular destinations, including cities in Japan, Thailand and Taiwan. Some of its prices were two-thirds cheaper than the usual, lower even than those of other budget airlines in the region.

Hong Kong is undoubtedly the most important aviation hub in the Asia-Pacific region. Tourism, as one of Hong Kong's four major pillar industries, brings in tens of billions of dollars of revenue annually. Aviation, both in passenger demand and on the cargo side, is a highly competitive market. Budget airlines are certainly the way forward for the aviation sector the world over.

According to the International Air Transport Association, this year's net profits for airlines are projected to increase to around US$11.7 billion.

Budget airlines have really taken off around the world in the past few years. In Hong Kong, the sector is getting ready for take-off, which is why it has attracted quite a lot of potential investors. Singapore Airlines' low-cost carrier, Scoot, is ready to follow in the footsteps of HK Express and launch budget flights between Hong Kong and Singapore in November.

Consumers, of course, will always welcome low-cost airfares; the cheaper the prices, the better it is for travellers. But there are pros and cons.

Budget airfares do not cover essential charges such as fuel surcharges and baggage charges. Even though some offer free baggage handling, there is a very limited quota. Flight times are often very unfriendly to users, with many in the middle of the night or during non-peak hours. Because the tickets are cheap, there are many restrictions.

I am not against low-cost airlines per se, but to give foreign budget airlines such a free hand to expand their services is somehow putting Hong Kong-based airlines at a disadvantage, creating unfair competition and hurting their business operation.

It will also indirectly affect the livelihoods of hundreds of thousands of workers here, not forgetting other negative by-products, such as environmental pollution and noise pollution.

Furthermore, the existing two runways in Hong Kong are becoming saturated in terms of aircraft handling capacity, with a total of 64 aircraft movements per hour. The capacity is expected to rise to 68 aircraft movements by 2015.

And there will be no improvement until then because the Civil Aviation Department is too conservative to make innovative adjustments.

Already overstretched, the airport now has to handle additional budget flights late at night, which has caused unnecessary noise and environmental pollution. All these may not be offset by the economic benefits of budget airfares.

The introduction of budget airlines is like the expansion of the individual visit scheme for mainland travellers to Hong Kong, which has caused more harm than good because of the differentials in quality of these travellers. Simply put, this aviation version of the individual visit scheme will taint our aviation industry.

Fundamentally, I'm opposed to the pretentious posturing by some of the budget airlines that claim to be locally based.

Jetstar Hong Kong is now applying for a licence to operate in Hong Kong, a move that has been vehemently opposed by Cathay Pacific Airways and other Hong Kong-based airlines. As pointed out by Cathay, Jetstar's licence application goes against Article 134 of the Basic Law, which requires airlines seeking licences to be incorporated in Hong Kong and having their principal place of business in the city.

Jetstar Airways is a wholly owned subsidiary of the Qantas Group. Hence its principal place of business is in Australia, not Hong Kong. Most importantly, issuing such a licence to Jetstar will cause irreversible damage to our air sovereignty.

Air sovereignty is the fundamental right of a sovereign state to regulate the use of its airspace and enforce its own aviation law. It is a right that should not be given up easily.

Article 128 of the Basic Law states that the Hong Kong government shall provide conditions and take measures for the maintenance of the status of Hong Kong as a centre of international and regional aviation, which goes to show how important the central government views the city's air sovereignty.

Jetstar's plan to operate in Hong Kong should be nipped in the bud; otherwise it would set a bad precedent and open the floodgates for others. It would create unhealthy competition and cause serious damage to our own flagship carrier.

If the government unilaterally opens up our airspace to foreign airlines, it could end up hurting the long-term business interests of genuine local airlines, forcing them to cut back less popular routes. This would not be in the public interest.

Albert Cheng is chairman of the Hong Kong Institution of Engineers (Aircraft Division)
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Old October 2nd, 2013, 04:28 PM   #4393
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Quote:
Originally Posted by bagus70 View Post
Hi, I'm a newcomer in here.

I would like to know something about Hong Kong airport.

When they planned the current airport in 1980s and 1990s, they originally planned to build "X" building next to the existing "Y" building.
I wonder what will they do with the lot of land which was originally intended for "X" building?
Currently U/C for a terminal extension.



Photo taken on 6/27.
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Old October 3rd, 2013, 07:39 AM   #4394
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Will that terminal extension be built according to original "X-building" masterplan, or would it have completely new design?
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Old October 3rd, 2013, 08:11 AM   #4395
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This is the current masterplan for airport expansion:

Source: http://en.wikipedia.org/wiki/File:Up...ernational.jpg

You can read more from here:
http://www.threerunwaysystem.com/en/
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Old October 3rd, 2013, 01:27 PM   #4396
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I see. It turned out that the "X" building will never be built after all. Instead, they will built new expansion on a reclaimed land next to the current airport site.
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Old October 3rd, 2013, 06:05 PM   #4397
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Quote:
Originally Posted by bagus70 View Post
I see. It turned out that the "X" building will never be built after all. Instead, they will built new expansion on a reclaimed land next to the current airport site.
The "X" is now the "I" building on the same site.
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Old October 4th, 2013, 03:13 AM   #4398
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Quote:
Originally Posted by hkskyline View Post
The "X" is now the "I" building on the same site.
Oh...yes
I forgot to mention that. So in place of X building, they will built I building.
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Old October 5th, 2013, 04:30 AM   #4399
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Low-cost travel to boost Hong Kong economy
The Standard
Monday, September 30, 2013

Hong Kong International Airport retained its title as the world's busiest cargo terminal last year, when it served a record 56 million passengers.

Indeed, passenger numbers, flight and cargo movements have all more than doubled since HKIA opened 15 years ago, with positive effects on the aviation sector and the wider economy.

The downside of this extraordinary growth is that HKIA is congested, with limited new slots available until the planned third runway is complete.

With no new slots, airline growth stalls. Worse, economic activity and jobs bypass Hong Kong to boost our regional rivals.

Our problem today is that HKIA is approaching capacity sooner than anticipated and certainly earlier than the 2020 forecast perhaps even as early as 2016, according to some estimates.

What can be done? A greater emphasis on low-cost aviation may be the answer.

Making best use of off-peak slots

Low-cost carriers or LCCs are inherently better placed to maximize use of HKIA's limited capacity.

Whereas traditional airlines use a hub-and-spoke model that requires them to coordinate multiple connecting flights at busy times, LCCs operate point-to-point that is, single-leg journeys. They are more flexible as they are able to schedule flights without regard for onward connections. LCC flights also generate greater value for the wider economy.

Typically, 90 percent of their passengers are point-to-point. This means that almost all passengers disembark and spend money here, rather than taking a connecting flight to another airport.

Furthermore, many passengers of low-cost carriers are holidaymakers. Leisure travellers tend to stay longer and spend more widely than those on business.

LCCs typically stimulate more frequent travelling with greater availability of low fares. Experience in Europe suggests that many consumers elect to save on air fares in order to spend more on accommodation, dining and shopping.

This fly cheap, stay chic trend would see high-spending tourists coming to Hong Kong on low-cost air tickets.

LCCs also stimulate new demand for air travel. Lower-cost fares have been shown to change consumer behavior.

They allow people to indulge in one- day shopping trips, or attend sports events or concerts they may not have previously considered.

This supports Hong Kong's status as a shopping haven and its investments in arts and culture infrastructure.

Low-cost fares also enable visits to relatives or friends and stimulate business travel among small and mid-size enterprises for which full-price travel is cost prohibitive.

Satisfying the growing middle class

LCCs will also help Hong Kong capitalise on the regions growing appetite for overseas travel. According to industry figures, Asia Pacific's middle class will see the strongest growth in spending globally in the next two decades predominately from China. As China's middle class continues to expand, further dramatic growth in outbound travel seems inevitable.

By 2022 more than 75 percent of China's urban households will be categorized as middle class, representing a market of over 630 million people.

Rather than focusing on busy traditional routes, LCCs will open new routes to regional cities.

In the case of China, growth is now concentrated in the smaller northern and western cities, presenting a substantial opportunity for LCCs.

This also applies to other emerging economies such as Indonesia, Vietnam and Myanmar.

Preserving status as an aviation hub

A stronger LCC sector in Hong Kong will also help the city maintain its status as a world-leading aviation hub. Since low-cost airlines stimulate new demand, supporting both LCC and full-service airlines at HKIA could be an effective means of encouraging competition and growth.

Experience shows that seat capacity booms after routes are opened to low- cost travel, with both LCCs and full- service carriers growing on the shared routes.

Singapore, Seoul and Kuala Lumpur make compelling cases for embracing both types of airlines to enable high growth.

Japan is the newest market to welcome the LCC revolution which stimulated growth in the domestic market for the first time in six years.

Moreover, foreign LCCs will continue to fly into Hong Kong to meet the growing appetite for low cost travel to capture the many opportunities in the region.

Without a home-based LCC in Hong Kong, the job opportunities and economic benefits associated with an LCC boom would bypass Hong Kong.

With airports in Guangzhou and Shenzhen being actively developed and the Hong Kong-Zhuhai-Macau Bridge connecting Hong Kong to the underutilized Zhuhai airport, adding weight to the Pearl River Deltas economic clout, Hong Kong cannot afford to delay.

Edward Lau Chung-wai is chief executive officer of Jetstar Hong Kong
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Old October 8th, 2013, 06:14 PM   #4400
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Source : http://pic.feeyo.com/posts/596/5962128.html



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