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Airlines to Benefit from Updated NDIA Scheme and Parking Charge Arrangements

Analysis

Hong Kong (AIRPORT AUTHORITY OF HONG KONG) - Airport Authority Hong Kong (AA) will introduce a revised New Destination Incentive Arrangement (NDIA) programme and new aircraft parking charge arrangements. The initiatives are designed to promote the development of new destinations and the efficient movement of small aircraft.

New Destination Incentive Arrangement

Effective 1 January 2007, the NDIA programme will rebate 75% of the landing charges during the first six months and 25% of the landing charges in the following six months on scheduled flights from Hong Kong International Airport (HKIA) to new destinations. The previous programme offered 50% and 25% rebates on charges during the first and second years, respectively. The new scheme, which will operate for two years, has been approved by the Chief Executive in Council and will be gazetted tomorrow (Friday, 20 October).

Airport Authority Chief Executive Officer, Dr David J Pang, said AA has been working closely with airlines to expand HKIA's network coverage. "The NDIA programme has been well received and will continue to encourage airlines to open new destinations. It further enhances HKIA's connectivity and Hong Kong's position as Asia's premier aviation hub," added Dr Pang.

The NDIA programme was introduced in 2001. From 2004 to 2006, it provided rebates of HK$82 million to 33 airlines serving 69 new destinations.

New Parking Charge Arrangement

Under the new charging programme, which is effective 1 January 2007, small passenger aircraft such as B737s and A320s will enjoy lower parking rates at the new, dedicated parking stands that are custom-built to facilitate quicker turnaround times.

Since 2005, six new frontal parking and direct taxi-in / taxi-out stands for small aircraft have been introduced. A revised charging structure offers rates that are 10% and 20% lower than the existing rates, respectively, for the frontal stand and direct taxi-in / taxi-out stand. For example, while the existing scheme costs a B737 $624 for parking at a dedicated frontal stand for one hour, the new rate will cost it $560.

Small aircraft now represent about 30% of total aircraft movements at HKIA.

Airport Authority of Hong Kong is a CAPA Member. For more information on the Centre for Asia Pacific Aviation's membership service, please click the icon below. capagold.gif capaplatinum.gif

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