Air traffic sees growth in fourth quarter

Improved performance in the fourth quarter of 2009 indicates that recovery is underway despite full-year contractions in passenger traffic, cargo volume and aircraft movements of 46.1 million (-5.0%), 3.35 million (-7.7%) and 279,505 (-7.2%), respectively.           

In the first three quarters of the year, year-on-year cargo throughput was down 22.9%, 17.1% and 5.9% from Q1 to Q3, but a 16.2% gain in Q4 helped narrow the decline for the full year.            

Passenger traffic in the fourth quarter fell just 0.2% compared with the same period last year, a noticeably smaller drop than the Q1-Q3 year-on-year declines of 7.1%, 9.2% and 3.5%.    Aircraft movements showed a similar trend, seeing drops of 6.7%, 8.8% and 8.2% over the first three quarters of the year, but only a 5.1% decline in the fourth quarter.           

Chief Executive Officer of the Airport Authority Hong Kong (AA) Stanley Hui said Hong Kong’s aviation industry faced a number of challenges in 2009. “We saw contractions in all three air traffic categories, which were due in large part to the global financial crisis that began in the latter part of 2008,” he said. “The outbreak of H1N1 and the gradual increase in the number of cross-strait direct flights also had negative effects on HKIA.           

“In addition, volatile fuel prices, yield erosion from significantly reduced demand in front-end business traffic, and low cargo yields for most of 2009 caused airlines to reduce frequencies and suspend services to destinations, which continued to result in financial losses.”           

In December 2009, cargo throughput saw an increase to 330,000 metric tons, up 35.5% from a year earlier.　Recovery in foreign trade between China and Western economies, as well as the need to replenish inventories in the U.S. and European markets, quickly led to surge in demand for air cargo transportation.           

During the same month, passenger traffic increased 3.4% to 4.18 million, which was mainly attributed to the 16% year-on-year growth in travel made by Hong Kong residents. Visitor numbers grew 4%, while transfer/transit passengers declined 6%. The number of air traffic movements reached 24,225, representing a year-on-year drop of 2.1%.           

Mr. Hui said the across-the-board improvements in air traffic figures for the last quarter, especially compared with the first three quarters, indicate that business is gradually flowing back to HKIA. He noted that airlines have also been increasing or restoring flight frequencies that had been previously suspended. 

In light of signs of improvement in the global economy and continued strong growth on the Mainland, Mr. Hui said he expects growth to return in 2010, adding that with the hard work and support of the entire airport community — including airlines, freight handlers, retailers and government bodies — he is confident that HKIA will emerge stronger and better, maintaining its status as the airport of choice for global travelers and freight operators.

Airlines show traffic growth

The combined December 2009 traffic figures for Cathay Pacific and Dragonair show a rise in passenger volumes and sharp growth in cargo and mail tonnage compared with the same month in 2008. For 2009 as a whole, both passenger and cargo traffic showed a decline compared with the previous year. 

Cathay Pacific and Dragonair carried a total of 2,216,131 passengers in December — a 5% rise year-on-year. The month’s passenger load factor was 83.9%, an increase of 4.9 percentage points, while capacity for the month, measured in available seat kilometers (ASKs), was down 2%. For the year as a whole, the number of passengers carried fell 1.6% compared with a capacity decline of 3.7%. 

The two airlines carried a total of 144,000 metric tons of cargo and mail in December 2009, up 25% compared with December 2008, when the full impact of the financial crisis was being felt. The cargo and mail load factor rose 15.7 percentage points to 78.6%, while capacity for the month, measured in available cargo/mail tonne kilometers , was down 3.3%. For 2009 as a whole, tonnage fell 7.1% against a capacity reduction of 13.1%.

Vincent Lo appointed to APEC council

The Hong Kong Special Administrative Region Government announced the appointment of Vincent Lo, Chairman of Shui On Holdings, as Hong Kong, China's representative to the Asia Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC), starting January 1, 2010, until the end of 2011.

Mr. Lo will replace Dr. Raymond Ch'ien, Chairman of MTR Corporation, who has served on ABAC since 2004. Hong Kong, China’s other incumbent representatives to ABAC are the Managing Director of Jardine Matheson Group, Anthony Nightingale, and the Chairman of PCCW, Richard Li.

Speaking highly of the service rendered by Dr. Ch'ien, Hong Kong Secretary for Commerce and Economic Development Rita Lau said, “The Government is very grateful to Dr. Ch'ien for his wise counsel and active participation as Hong Kong, China’s representative to ABAC for the last six years.  His contributions had been held in high esteem, and had helped raise Hong Kong's profile in ABAC.

“We also warmly welcome Mr. Lo as our new ABAC representative. Together with Mr. Nightingale and Mr. Li, I am sure the wealth of business experience of Hong Kong’s ABAC team will inject further impetus into the work of ABAC. I have no doubt that they will ensure that APEC’s work continues to be relevant to the interests of the business community.”

ABAC was established in 1996 as a permanent business advisory body to provide advice to APEC on business-sector priorities for implementing its goal toward free and open trade and investment in the Asia Pacific region.