HK$7 million payouts on offer to airlines as Hong Kong airport bids to fill new runway slots

Cash carrot part of two-pronged plan to encourage airlines to add new destinations and boost number of long-haul flights

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Airlines have been offered cash incentives to add new destinations and boost the number of long-haul flights from Hong Kong. Photo: May Tse

Published: 7:26pm, 16 Jul 2024Updated: 9:08pm, 16 Jul 2024

Hong Kong’s Airport Authority has offered a subsidy carrot of up to HK$7 million (US$897,000) a year to airlines that launch a new daily route as part of a bid to fill up extra capacity created by a third runway.

Chapman Fong Shui-man, the authority’s deputy director of operations, on Tuesday explained the incentive was part of a two-pronged plan designed to encourage airlines to add new destinations and increase the number of long-haul routes as the airport prepared to open its three-runway system before the end of the year.

“We will accept as many flights and routes as possible to fulfil the target of returning to pre-pandemic passenger traffic by the end of the year,” he said.

“Once the new routes are available, transit passengers will come back [and choose Hong Kong to transit to their next flight]. Airlines will see the business opportunities and value in operating in Hong Kong.”

Fong said five airlines had added a total of eight destinations since the new routes scheme launched on June 1.

The carriers are HK Express, the budget wing of city flag carrier Cathay Pacific Airways, Taiwan’s Starlux Airlines, China Southern Airlines, Hong Kong Airlines and Jin Air of South Korea.