Traffic figures fall for airlines

The combined September traffic figures for Cathay Pacific and Dragonair show a decrease in passenger numbers and cargo and mail tonnage compared with the same month last year.

Cathay Pacific and Dragonair carried a total of 1,840,082 passengers in September, down 2% compared to the same month in 2008, while capacity for the month, measured in available seat kilometers (ASKs), was down by 9.7%. The month’s load factor was up 7.9 percentage points to 80.2%. For the first nine months of the year, the number of passengers carried has fallen by 3.8% compared to a capacity decline of 3.9%.            

The two airlines carried a total of 133,301 metric tons of cargo and mail in September, down 5.8% year-on-year, while the cargo and mail load factor rose by 7.9 percentage points to 74.4%. Capacity for the month, measured in available cargo/mail tonne kilometers, was 13.6% down. For the first nine months of the year, tonnage has fallen by 12.3% against a capacity reduction of 13.9%.
           

Hong Kong-Shanghai airports to collaborate

On October 12, Shanghai Airport Authority (SAA) and Airport Authority Hong Kong (AAHK) signed a cooperation agreement in Shanghai for the establishment of the Shanghai Hong Kong Airport Management Co., Ltd (JV). The joint-venture company will enhance collaboration between and further develop strengths of the airports in Shanghai and Hong Kong.

In October 2003, SAA and AAHK signed a letter of intent (LOI) on closer cooperation under the Shanghai Municipal People’s Government’s call for enhancing Shanghai-Hong Kong collaboration in eight areas, including airports, marine logistics and the World Expo. Under the LOI signed in Hong Kong, a series of cooperation initiatives, from training and development to business consultation, have been launched in recent years.

The establishment of the JV marks further cooperation between the two parties in airport management, which will be strengthen the economic and trade development between Hong Kong and Shanghai.

Shanghai is the first mainland China city to have two international airports. Pudong Airport, an international hub airport with an extensive global flight network, is supplemented by Hongqiao Airport, a domestic hub airport serving point-to-point coverage. Together, the two airports form the Shanghai aviation hub, handling the world’s 11th-largest passenger volume, 3rd-highest airfreight tonnage and 16th-busiest flight movements in 2008.

Upon the completion of Hongqiao Airport’s expansion in March 2010, the two airports in Shanghai will have a total of four terminals and five runways for a combined annual capacity of 90 million passenger trips and 5.2 million metric tons of cargo. This places Shanghai as one of the world’s largest aviation hubs, with hardware of top-tier international standard.

SAA Chairman and President Wu Nianzu said forming the JV would enable SAA to leverage on Hong Kong International Airport (HKIA)’s wealth of management experience and skills in operating a renowned hub airport, thereby further improving its own operating efficiency and management for the upcoming World Expo.

AAHK Chairman Marvin Cheung said that the agreement is founded on years of partnership. “Both Shanghai and Hong Kong are China’s major cities in terms of economy and trade,” said Dr. Cheung. “They also serve as major aviation hubs for China. The development and management experiences of the two airports are invaluable to each other.”

Dr. Cheung also thanked the CPC Shanghai Municipal Committee, Shanghai Municipal Government and HKSAR Government for their support, which he said made possible the establishment of the JV.

AAHK Chief Executive Officer Stanley Hui said Shanghai is an important hub for the Yangtze River Delta. He added that the JV will help AAHK better understand the operations of Mainland airports and gain experience in managing and operating a national hub facility. He believes it will help Hong Kong further integrate with the Mainland.

The joint-venture company will manage Hongqiao Airport’s east and west terminals, the east traffic control center of Hongqiao’s integrated transport center and other business areas relating to passenger flow. The JV will also manage the retail business of the two terminals and will ensure the airport will provide high-quality airport service for visitors and delegates of World Expo 2010 Shanghai.

Air traffic narrows decline

Passenger throughput at Hong Kong International Airport (HKIA) reached 3.5 million passenger trips in September 2009, 3.5% below the same period in 2008. Cargo throughput also dropped 4.3% year-on-year to 304,000 metric tons, while air traffic movements recorded a decline of 8% to 22,570. Declines in air traffic volumes have continued to narrow over the last three months.

The fall in passenger volume was largely due to weak visitor traffic, particularly from markets like Taiwan and North America. Transfer/transit passengers also dropped 11% year on year, which was mainly the result of declining traffic from mainland China and Taiwan markets. Travel made by Hong Kong residents, however, recorded year-on-year growth of 9%. Compared with cargo figures from September 2008, exports and transshipments saw declines of around 4% and 15% respectively, while imports grew by about 6%.

Chief Executive Officer of Airport Authority Hong Kong Stanley Hui pointed out that the mild year-on-year reductions of 3.5% and 4.3% in passenger and cargo traffic indicated that contractions continue to narrow.

HKIA handled about 34.2 million passenger trips and 2.4 million metric tons of cargo between January and September this year, representing year-on-year decreases of 6.6% and 15.1%, respectively. Air traffic movements dropped 7.9% to 207,850.

Jersey Finance opens Hong Kong office

On October 22, Jersey Finance opened its office in Hong Kong to support the promotion of Jersey’s financial services industry in the Asia Pacific region.

Jersey is a self-governing U.K. crown dependency with its own laws and responsibility for setting its own fiscal rules. Jersey Finance is a Jersey-based non-profit organization jointly funded by members of the local financial services industry and the island’s government, and was formed in May 2001. Its key objective is to promote and develop the benefits of Jersey as an international financial center.

The main role of Jersey Finance’s Hong Kong operations, which becomes the organization’s second overseas office, is to serve as a hub for communicating the breadth and depth of Jersey’s financial services across the Asia Pacific region. The new Hong Kong office will become a base for Jersey's financial industry to develop its contacts with leading financial intermediaries, regulators and government officials both in the city and in mainland China.

Technical Director of Jersey Finance Robert Kirkby, commented, “Hong Kong is regarded as a key global financial location. We are delighted to have a physical presence in Hong Kong to help spearhead our increasing participation in financial services in the region. Jersey Finance has been visiting the region since 2005 with delegations from Jersey, and the opening of an office in this city illustrates a natural extension of our growing commercial links with the Asia Pacific region.

“In addition, companies from Jersey Island have been approved, in principle, for future listing in Hong Kong. This is good news for Jersey's financial industry and is a significant step forward in our ability to attract new business from the region. This move adds weight to Jersey's reputation and demonstrates how the market in Asia views the quality and robustness of Jersey company law. Moreover, it gives further impetus to the formal opening of our office in Hong Kong,” Mr. Kirkby said.

Associate Director-General of Investment Promotion at Invest Hong Kong Charles Ng warmly welcomed the establishment of Jersey Finance’s office in Hong Kong. He said, “Hong Kong is Asia’s undisputed international financial center, with a well-regulated financial infrastructure and the presence of a large number of financial services companies.   We believe that the opening of this new Hong Kong branch will contribute to Jersey Finance's successful expansion into the Mainland and the region.”