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HK Strives to Maintain Its Position as Asia's Aviation Center
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Hong Kong Airport Authority (AA) Chairman Victor Fung pledged Friday to do everything possible to maintain HK's aviation leadership in Asia.

Speaking at a luncheon hosted by the Hong Kong Exporters Association, Fung said Hong Kong's competitiveness depends on maintaining its position as Asia's premier aviation center, and the AA will do everything possible to contribute to the success of Hong Kong.

He said as the Hong Kong International Airport (HKIA) faces new competition from other airport hubs in the region, it has undertaken a series of measures to ensure its continuing leadership position.

These include the Air Cargo Consolidation Center set up at the Shenzhen Futian Free Trade Zone, the start of operations of the Marine Cargo Terminal, the expansion at the Asia Airfreight Terminal and express air cargo services by DHL.

Fung said "the competition has never been so intense. But, until now, Hong Kong's airport, as well as its shipping and logistics industries, still enjoy a significant edge when it comes to convenience and quality of service."

He cited a recent study by research consultant GHK that showed the factors affecting the competitiveness of an airport are frequency of flights, efficiency of customs clearance, connectivity, facilities, operational efficiency, services and cost.

Talking about the airport charges and their role in enhancing the AA's financial performance, Fung said," the AA will likely be able to achieve our financial targets without substantial increases in airport charges, thanks to rapid traffic growth projected in the next few years."

"The AA will achieve a reasonable rate of return through robust traffic growth, cost control and an increase in non-aeronautical revenues," he added.

He said, in 2004, the total cargo throughput at the airport is expected to exceed 3 million tons, a 14 percent increase over last year. The share of air cargo as a portion of total external trade has increased from 20 percent to 30 percent in the last decade.
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(Xinhua News Agency December 11, 2004)

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