No increase in airport construction fees for third runway, Hong Kong transport minister vows

Transport minister Anthony Cheung Bing-leung has vowed that there will be no further increases in the airport construction fees – in effect since August – for financing the HK$141b third runway project. The fees, ranging from HK$70 to HK$180 for travellers, will be charged until 2024, when the project is scheduled to be completed, providing HK$26b of the funds needed. “During the period, no further adjustments will be imposed,” Cheung said during a Legislative Council meeting on Wednesday. The transport chief made the pledge as legislator Abraham Shek Lai-him, from the real estate sector, asked if the Airport Authority could increase the fees as well as the landing charges imposed on airlines as it pleased in the future to fund the project. “This will greatly affect Hong Kong’s economic development,” Shek said. The landing fees – calculated using a formula based on aircraft weight – will be raised by up to 27% spread over three years from September 1. The authority has chosen to self-fund the entire project via three means without government subsidies, namely having the government forego its dividends until 2024, charging the airport construction fee and other levies on airlines, and borrowing from the market to the tune of about HK$69b.<br/>