After consultation with representatives of local and foreign airlines, the Airport Authority Hong Kong (AAHK) launched the new Airport Network Development Programme in June to strengthen its status as an international air transport hub.
The scheme consists of two parts – the New Route Scheme and the Strategic Development Scheme – to incentivise domestic and foreign airlines to open more new routes and increase the frequency of services to Hong Kong. Rewards range from HK$10,000 to HK$20,000 (US$1,282 to US$2,564) per flight for routes operated continuously for over 20 weeks – that’s about HK$7 million to HK$8 million per year for each new route.
The new route program applies to all passenger and cargo airlines that serve new destinations with connections to Hong Kong International Airport with a defined continuity. Qualified airlines are eligible for financial incentives for two years. Applications are now open until December 31, 2027.
The Strategic Development Scheme rewards airlines that open new routes and/or increase their frequencies to the AAHK target regions or countries – namely North America, Europe and Australia/New Zealand – by providing them with financial incentives for three years.
According to AAHK, the program has already received positive response from airlines. As of June, five airlines have initially qualified for this program – Starlux Airlines, China Southern Airlines, Hong Kong Airlines, HK Express and Jin Air. They cover eight routes, including Taipei and Taichung in Taiwan, Xining, Harbin and Kashgar in China, Danang (Vietnam), Clark (Philippines) and Seoul (South Korea).
Wing Wong, sales and marketing director of Prince Travel, pointed out that while airlines have introduced new routes and increased flight frequencies to meet demand, the reality is that Hong Kong needs new arrivals from new destinations.
Welcoming the initiative, an Emirates spokesperson said: “These incentive programs will not only support airlines in expanding their route networks, but will also contribute to the recovery of air travel in the region. Emirates is committed to working with industry stakeholders to drive the recovery of the Hong Kong air travel market and provide passengers with improved travel options.”
“Financial incentives are certainly an important factor for airlines when evaluating route extensions or frequency increases, but the decision-making process also takes into account various factors such as market demand, operational feasibility and more. We will continue to monitor market dynamics and customer needs to optimize our route network and flight schedules.”
Domestic Cathay Group remains on track with its plan to reach 100 percent of pre-pandemic passenger flights in the first quarter of 2025. This year, Cathay Pacific Airways has already announced 10 new destinations, seven of which have already started operations. Ningbo, Riyadh and Cairns are set to follow in the coming months.
The Emirates spokesperson added: “Aviation is a highly competitive industry and before the pandemic we were already competing with more than 100 airlines in Hong Kong. We welcome competition and recognise that an active and vibrant air services market is critical to Hong Kong’s success as an international aviation hub.”
