HKIA records double-digit growth

The strong summer traffic momentum continued for Hong Kong International Airport (HKIA), with all three traffic categories recording double-digit growth in July. Passenger throughput and aircraft movements rose 17.5% and 14.7%, respectively, from a year ago, reaching new monthly highs of 4.7 million and 26,720, respectively. Cargo tonnage also jumped 24.5% year-on-year, to 363,000 metric tons during the period.

Passenger traffic to/from mainland China and Southeast Asia performed particularly well in July, with overall visitor numbers registering a 29% yearly increase and Hong Kong resident traffic up 21% year-on-year.

Almost all of Hong Kong’s major trading markets showed yearly double-digit growth in July. Exports, especially those to North America and Europe, continued to be the dominant growth driver, surging 36% compared with the same period last year. Import and transhipment volume also saw year-on-year growth of 23% and 2%, respectively.

The Chief Executive Officer of Airport Authority Hong Kong, Stanley Hui, noted that the market rebound during the summer holiday travel season has been particularly strong. “July saw a high average load factor of close to 80% for passenger flights at HKIA,” he said. “To meet increased demand, both foreign and base carriers have been active in adding more flights, launching new destinations, or restoring flights that had been suspended during the financial crisis. All these increased aviation activities will further strengthen the airport’s position as an international and regional aviation center.”

According to the latest report by Airports Council International, HKIA has retained its position as the world’s busiest international cargo airport for the 14th consecutive year, as well as handled the world’s third-largest international passenger volume in 2009.
           
Château Margaux opens Hong Kong office

Château Margaux, a classified First Growth from Bordeaux, France, has set up a representative office in Hong Kong, with Thibault Pontallier appointed as its brand ambassador in Asia.

This is the first time in Château Margaux’s history that a representative has been based abroad, reflecting the importance of the Chinese market for its business development.      

“As the trade and distribution hub of wine in Asia, the importance of Hong Kong is undoubted, particularly after the wine duty was abolished,” Mr. Pontallier said. “Château Margaux’s first representative office in Hong Kong and my relocation here certainly play a positive role in raising our brand profile in order to tap the Chinese market. I frequently travel between Hong Kong and the major Mainland cities. The decision to set up our Asian base in this city is easy: it's the strategic location in Asia and it has unparalleled connectivity to mainland China.”

Mr. Pontallier also noted that there is a keen interest in food and wine in Hong Kong and mainland China, adding that, “With its huge potential, China is probably Château Margaux’s second market in terms of volume and may soon become the first.”

Invest Hong Kong’s Associate Director-General of Investment Promotion, Andrew Davis, underscored the importance of Hong Kong as the regional hub for wine trading and distribution. “Since the exemption of all local wine duties in February 2008, there has been a marked growth in wine consumption,” he said. “The 2010 International Wine and Spirits Record showed that the annual per capita consumption among the legal drinking age stands at 3.6 liters, well ahead of both Japan and Singapore, which have a per capita consumption of 2.5 and 2.1 liters, respectively.

“We warmly welcome Château Margaux to establish its business operations in our city. Its presence not only enriches the portfolio of our wine industry but also further enhances Hong Kong's position as a wine hub in Asia. We wish Château Margaux every success in its business,” Mr. Davis said.

Airlines record significant growth

The combined July traffic figures for Cathay Pacific Airways and Dragonair showed a significant increase in the number of passengers and amount of cargo and mail carried compared with the same month last year.

The two airlines carried a total of 2,485,244 passengers in July, up 19.5% year-on-year. The passenger load factor was 87.5%, a rise of 4 percentage points, while capacity for the month, measured in available seat kilometers (ASKs), was up by 8.8%. For the first seven months of 2010, the number of passengers carried was up by 10.1%, compared with an ASK rise of 1.1%.

The two airlines carried a total of 157,374 metric tons of cargo and mail last month, up 18.1% year-on-year. The cargo and mail load factor was 76%, an increase of 3.4 percentage points, while capacity, measured in available cargo/mail tonne kilometers, rose 21.3%. For the year to date, tonnage was up 23.4%, compared with a capacity increase of 9.2%.
         
Cathay Pacific to purchase 36 new aircraft

On August 4, Cathay Pacific Airways announced that it has entered into a letter of intent with the Airbus Company to buy 30 Airbus A350-900 aircraft. The airline has also expressed its intention to exercise existing purchase rights in respect of six Boeing 777-300ER aircraft.

The total value of the intended aircraft purchases at list price is about US$9.6 billion. This is in addition to the significant investment Cathay Pacific will make between now and 2013 that includes aircraft already on firm order, the new cargo terminal at Hong Kong International Airport and enhanced products in the cabin and on the ground.

The letter of intent with Airbus relates to the purchase of 30 Rolls-Royce-powered Airbus A350-900 aircraft, which will form the backbone of Cathay Pacific’s future mid-size wide-body fleet, with the new acquisitions scheduled to be delivered between 2016 and 2019.

Cathay Pacific Chief Executive Tony Tyler said, “The A350-900 is a perfect fit for the development of our fleet - a mid-size long-haul aircraft that is fuel efficient, environmentally friendly, and which provides the kind of capacity, range and operating economics that we need to complement and enhance our existing fleet.”

He added that the delivery schedule fits Cathay Pacific’s requirements very neatly, with the 30 new aircraft to be deployed to replace older aircraft and help grow its fleet to meet the challenges of the future.

Separately, Cathay Pacific intends to exercise existing purchase rights in respect of six General Electric-powered Boeing 777-300ER aircraft, subject to the satisfactory outcome of negotiations with the Boeing Company. This would be in addition to the 30 of this aircraft type the airline already has on firm order. Eighteen 777-300ERs have already been delivered and are in operation, with the remaining 12 scheduled to arrive by 2013.

Cathay Pacific will make the Boeing 777-300ER the backbone of its ultra-long-haul and long-haul fleet, chiefly serving destinations in North America and Europe with greatly improved operating economics compared to the older aircraft in its fleet.

The Hong Kong-based airline currently operates a fleet of 128 wide-body aircraft, including 25 freighters.

Hactl’s July cargo throughput up

July tonnage throughput for Hong Kong Air Cargo Terminals Limited (Hactl) grew 27.7% year-on-year to 256,838 metric tons of air cargo. Cumulative tonnage from January to July was 1,646,609 metric tons, up 36.7% year-on-year.

Export volume in July was 140,030 metric tons, representing an increase of 35.5% year-on-year. The aggregate export volume for the first seven months was 892,852 metric tons, up 44.6% compared with the same period last year.

Import volume for July and for the first seven months was 67,952 metric tons and 434,113 metric tons, respectively, representing a 22.5% and 33.2% increase year-on-year for the respective periods.

The transhipment volume in July rose 15.3% year-on-year to 48,856 metric tons. The cumulative transhipment volume for the first seven months was 319,644 metric tons, representing an increase of 22.2% year-on-year.