Saudi Press

Saudi Arabia and the world
Thursday, Oct 02, 2025

Hong Kong reveals HK$1 billion package to help its aviation industry through the crisis

Hong Kong reveals HK$1 billion package to help its aviation industry through the crisis

Hundreds of companies to receive fresh financial aid as the city sector struggles during the pandemic. Authorities earlier accused of not doing enough to shield firms including airlines from the coronavirus impact

Hong Kong will shore up its aviation industry with an extra HK$1 billion (US$128 million) to help hundreds of companies through the Covid-19 pandemic, the authorities revealed on Monday following intense criticism over the levels of support previously offered to the sector.

The government and the operator of Hong Kong International Airport (HKIA), the Airport Authority, said the package would support about 400 firms including airlines and retailers.

“The aviation industry is an important driver for Hong Kong's economy. We are determined to maintain Hong Kong’s competitiveness as an international aviation hub, and even more so in challenging times,” a government statement said.

For the latest package, the government will chip in HK$670 million, sourced from the levying of air traffic control charges, with the Airport Authority stumping up HK$330 million, for the relief measures covering February to June this year.



Backdated from February and worth up to HK$630 million, airlines will receive a full waiver on five months of aeronautical charges involving parking and air bridge fees for grounded planes, as well as a 40 per cent reduction over four months on landing charges.

Airport shops and restaurants – left nearly deserted for months from the impact of Hong Kong’s anti-government protests and the pandemic – will get a 70 per cent discount on rent for the three months to May, and pay half for June. The total rental concessions will be worth HK$320 million.

Also available is a HK$50 million training fund to help boost the skills of up to 25,000 workers employed in and around the airport, many of whom are on unpaid leave.

Authorities had earlier been heavily criticised for not offering direct financial help during the huge downturn in air travel brought about by the worsening health crisis.

The industry previously received HK$1.6 billion worth of aid, but that did not include discounts on aeronautical charges, which form a major operating expense for airlines flying to and from HKIA.

The Transport and Housing Bureau denied it had been slow to respond to the health crisis, pointing to the earlier package as a “quick response in helping the business to alleviate liquidity and operational pressure.”

Following Monday's announcement, the total sum pledged by HKIA amounted to only 23 per cent of its HK$8.4 billion profit for the 2018/19 financial year, on HK$19.5 billion of revenue.

Some 27 per cent of the airport’s revenues come from aeronautical charges, including air traffic fees, which account for 17 per cent of Cathay Pacific’s expenses.

Although it faces financial pressure over Covid-19, HKIA has remained profitable for 19 years in a row, a period covering September 11, the severe acute respiratory syndrome outbreak in 2003 and the 2008/09 global financial crisis.

S&P Global Ratings said in its latest report on Monday that relief measures would strain HKIA’s cash flow at a time when it was spending HK$141.5 billion on the third runway project. It warned the airport faced a “lengthy recovery period.”

“We believe the financial buffer for AA … has been exhausted due to drastically low passenger traffic, still-high capital expenditure and operating expenses, and financial relief measures it will provide to airlines and tenants,” the report said.

HKIA, which handled 71.5 million passengers last year, could see traffic fall up to 40 per cent this year, the ratings agency added.

Alexandre de Juniac, the director general and CEO of the International Air Transport Association, welcomed the extra help from Hong Kong but said more cash was required.

IATA said the global airline industry needed a bailout in the region of US$200 billion.

“Looking at the number of airlines serving Hong Kong, perhaps we could see something additional,” de Juniac said.

“Considering the position of Hong Kong, US$129 million is a good sign but should probably be a little more if Hong Kong wants to maintain its connectivity with strong and dynamic companies.”

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
Top AI Researchers Are Heading Back to China as U.S. Struggles to Keep Pace
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Trump and Starmer Clash Over UK Recognition of Palestinian State Amid State Visit
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Kuwait opens bidding for construction of three cities to ease housing crunch.
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×