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Airport Authority Hong Kong CEO Dr David J Pang (pictured, left) remains positive on the outlook as HKIA should continue to benefit from the exponential growth in the Chinese Mainland’s burgeoning economy and air traffic |
HONG KONG. Airport Authority Hong Kong yesterday announced record profits of HK$1,615 million (US$ 207.8 million) for the year ended 31 March 2006.
This represents a +33% rise year-on-year. Turnover grew +10% to HK$7,076 million (US$910.6 million). The Board declared a final dividend of HK$1,300 million (US$167.3 million) to the Government, a +30% increase over last year.
A total of 41.6 million passengers passed through Hong Kong International Airport (HKIA), a year-on-year rise of +9%, compared with a claimed global average growth of +5%.
Airport Authority Hong Kong CEO Dr David J Pang said: “While HKIA benefited from the strong market for air transport, it takes a safe, secure and consistently well-run operation to fully exploit the potential of the robust market environment.”
Despite the healthy growth in turnover, Airport Authority Hong Kong’s operating expenses increased less than +1% from HK$2,803 million (US$360.7 million) to HK$2,820 million (US$362.9 million) in FY2005/06, boosting earning before interest, taxes, depreciation and amortisation (EBITDA) to a record HK$4,256 million (US$547.7 million), a +16% rise over the previous year. Operating expenses have remained consistently flat over the last five years despite strong annual growth in revenue close to +8%.
“HKIA remains the world’s fifth busiest airport in terms of international traveler throughput, and have been the busiest international cargo airport for the last decade. During the year under review, we also welcomed eight new scheduled carriers to our network. HKIA now offers flights from about 80 airlines servicing more than 140 destinations worldwide,” added Dr Pang.
According to Dr Pang, Airport Authority Hong Kong is undergoing a wide-ranging study to re-examine HKIA’s growth strategies by critically assessing the demand, supply and competition/co-operation dynamics that the airport will face over the next two decades. Targeted for completion in the fourth quarter of the year, Master Plan 2025 will articulate a strategy to position HKIA to ensure sustainable growth.
Dr Pang said the outlook is positive as HKIA will continue to benefit from the “exponential” growth in the Chinese mainland’s burgeoning economy and air traffic. The General Administration of Civil Aviation of China expects that the country’s air passenger traffic will grow at an annual rate of +11%, outpacing Airports Council International’s forecast of +4% annual growth in global passenger traffic until 2020.
“I am confident that China’s ever-growing aviation market will provide HKIA with enormous growth momentum for the years to come. We will continue to explore new opportunities and bring added value to Hong Kong and the Chinese mainland by strengthening the competitiveness of HKIA and integrating with airports on the mainland,” said Dr Pang. ”
One of the planned efforts to enhance HKIA’s competitive facilities and services is Terminal Two, scheduled for soft opening before the end of 2006. T2 will also house a cross-boundary coach station and an extended Automated People Mover System that links to the existing passenger terminal (T1).
It will provide additional handling capacity to cope with the increasing passenger volumes and further strengthen HKIA’s role as a “fusion point for multimodal transport”, linking Hong Kong and the Chinese mainland. T2 will also feature SkyPlaza – a 35,000sq m facility embracing retail, catering and entertainment.
T2 is part of a larger HKIA development called SkyCity, in which new facilities being developed include a permanent terminal for ferries servicing the Pearl River Delta, two office towers, a hotel and a nine-hole golf course.
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