Cathay Pacific will introduce a new terminal charge concession, effective from April 1, 2020, to reinforce Hong Kong International Airport (HKIA)’s competitiveness, following a difficult 2019 for cargo operation caused by persisting global trade risks and the ongoing political unrest in the city.
The Hong Kong flag carrier said the new terminal charge concession will provide HK$0.3 per kilogramme savings for both general cargo and special cargo for export shipment customers using one of the Group’s four airlines – Cathay Pacific, Cathay Dragon, AHK Air Hong Kong and HK Express.
The reduction ranges from 18% to more than 20% compared with the current charge levels, according to Cathay Pacific and 20% of the concession will be contributed by the HK Airport Authority (AA).
Cathay said in a statement that the planned concession will also benefit shippers according to their commercial agreements with freight forwarders.
Boosting HKIA's competitiveness
“We are driving the Terminal Charge concession to reinforce the competitiveness of Hong Kong International Airport ... we take it upon ourselves as the home carriers to ensure that our hub continues to grow with increasing volume. By offering great service, world-class niche solutions, attractive value and unrivalled connectivity across the globe, we continue to give our passenger and cargo customers more reasons to choose Cathay Pacific and Hong Kong,” said Cathay Chief Customer and Commercial Officer Ronald Lam.
Cissy Chan, executive director, commercial of the HK Airport Authority said: “Over the years, the AA has been working closely with airlines and business partners to enhance air cargo facilities and services, making HKIA the leading global air cargo hub. The new initiative will help maintain the cost efficiency of the industry and strengthen our cargo volume growth, ultimately reinforcing HKIA’s competitiveness.”
The HKAA noted that the TC concession will also help mitigate the cost impact from the gradual increase in air cargo screening requirement starting early next year in preparation for the implementation of the International Civil Aviation Organisation's new security regulation.
Other airlines welcome to join TC concession scheme
The Authority also said Cathay Pacific is the first airline group to approach the Airport Authority for support on its TC concession to its freight forwarders for export cargo. It added that other airlines are welcome to join the scheme to offer their TC concession on a voluntary basis.
HKIA has been the world’s busiest airport in terms of air cargo volume for nine consecutive years. In 2018, the total cargo volume handled at HKIA reached 5.1 million tonnes.
