Hong Kong’s Airport Authority has indicated that it intends to raise its fees to fund the construction of a third runway at the airport.
The authority’s chief executive Stanley Hui Hon-chung told reporters Wednesday that the airport will follow the user-pays principle as it expands the facilities, the Hong Kong Economic Journal reported.
The new runway will cost HK$136.2 billion (US$17.57 billion), according to a projection made in 2011.
At a news conference to discuss the Airport Authority’s financial results for the year ended March, Hui on Wednesday did not comment when asked if the new runway project will still be within the initial budget. The company is still undertaking financial studies on the plan, which will be submitted to the government by the end of this year, he said.
The runway’s environmental assessment report was released last week for public inspection.
According to a document obtained by HKEJ previously, the authority has suggested to the government a few options to raise the aircraft landing and parking fees at the airport in three phases starting 2016.
It is expected that by the end of 2023 when the construction of the third runway is completed, the fees will have been increased by 18 percent, bringing a total of HK$8 billion income to the authority over eight years.
An extra infrastructure fee of about HK$100 may also be levied on outbound travelers, creating another HK$28 billion in eight years’ time.
For the year ended March 2014, the Airport Authority announced a record net profit of HK$6.45 billion (U$832 million), up 15 percent from the previous fiscal year, thanks to strong contributions from its retail and commercial operations and stringent cost controls. Revenue rose 13 percent to HK$14.81 billion.