HONG KONG. The Hong Kong Airport Authority (AA) has announced a HK$363m (US$47 million) relief package to airport partners, including reduced charges and interest-free deferred payments.
The wide-ranging package for retailers, airlines and other concession holders affected by SARS includes almost HK$100m (US$13 million) worth of reductions for some charges, with the remainder comprising interest free deferred payments.
For the three months starting from April, retailers and food & beverage operators at the passenger terminal will be offered HK$70m (US$9 million) rent reductions and HK$70m (US$9 million) worth of deferred payments.
Airport franchisees whose businesses have been badly affected by SARS can defer for 10 months 50% of three months’ rent, worth in total about HK$15m (US$2 million).
In addition airlines can defer 50% of aviation fees incurred during the next three months. There will be a 10-month grace period before any payments are due. Other measures apply to long-term parking agreements and office rents.
Airport authority chairman Victor Fung said that AA, like its business partners, airlines and other airport businesses was suffering significantly because of SARS. Passenger traffic has declined rapidly since early April and the number of flights for April so far is down -24% compared with the same period last year. Daily passenger flow is now down by -65%.
“We are most concerned with our business partners’ situation,” Fung said. “We will discount fees for the most vulnerable sectors whose survival is threatened if measures are not taken. For others, we will give them the option of deferred payment to help them deal with a liquidity issue until the market recovers. We believe in the circumstances this is most reasonable, equitable and responsible approach. It is in line with prudent commercial principles and within our means.
“Looking ahead, we will work closely with the entire airport community to ensure that, at the appropriate time, we implement plans to attract passengers back to Hong Kong. In our business, passenger flow is our lifeblood. Reviving our passenger flow is the only long-term solution to this difficult business environment we are all facing.”
