Dec 11 (Reuters) – Hong Kong’s airport authority said on Wednesday it would help subsidise airline plans to discount charges paid by freight forwarders on air cargo as it seeks to bolster the world’s biggest air freight airport by volume.
With passenger demand to the airport plunging by 13% in October after months of sometimes violent protests in the city, and the cargo market weak globally all year, airlines have been seeking concessions from the government.
Cathay Pacific Airways Ltd 0293.HK said it would cut terminal charges on general cargo and special cargo by HK$0.3 ($0.0383) per kilogram, a discount of 18% to 20% from current levels, from April 1.
Airport Authority Hong Kong (AAHK) said it would contribute 20% of the concession amount, with Cathay the first carrier to approach it about the scheme.
The airport authority said the concession would also help offset the cost impact of a gradual increase in air cargo screening requirements starting early next year, ahead of the implementation of new global security regulations.
AAHK said it would review the concession scheme in a year.
($1 = 7.8249 Hong Kong dollars)
(Reporting by Jamie Freed in Sydney; Editing by Kim Coghill)
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