1990-16-03

0.1.5

P.07-09

demand is

questionable.

Indeed, if We are

prepared

to

continue

to

put in more and more

stringent restraints

to

reduce the excess air

traffic demand as suggested in case (c). we may

just as well keep

Kai Tak indefinitely. But

quite obviously a congested airport with highly

operations at a high level of charges

restrictive

would not be conducive to the well-being of the

economy. We will have much to lose by

Ilong Kong

maintaining

an airport in such a state. The gist

of having હ new airport is precisely that it

should

have

sufficient

capacity

to

meet

unconstrained growth in demand for a considerable

length of time.

Furthermore, given that the operations of the dit

service industry are bound by international

agreements, the extent to which airport charges

can be adjusted upwards

the mere purpose of curtaliing

and

air

unilaterally

fares

for

growth in demand 1S

the possibility

of

rather limited. (In fact,

using the price mechanism to

regulate demand had also been explored in the Kal

Tak Consultancy Study. The conclusion was Chat

there were practical limits to the feasibility of

adopting such an approach.)

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