XN000022-1992-07-08 — Page 38

WEDNESDAY, JULY 8, 1992

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GOVERNMENT ANSWERS IATA'S VIEWS ON AIRPORT CHARGES

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THE SECRETARY FOR ECONOMIC SERVICES, MRS ANSON CHAN, TODAY I WEDNESDAY) REJECTED CRITICISMS MADE BY THE DIRECTOR-GENERAL OF THE INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA) ABOUT THE GOVERNMENT'S APPROACH ON AIRPORT CHARGES AT KAI TAK AND CHEK LAP KOK.

MRS CHAN MET DR GUNTER O.ESER, THE

DIRECTOR-GENERAL

AND EXPLAINED THE GOVERNMENT'S POLICY ON AIRPORT CHARGES,

YESTERDAY

SHE NOTED THAT THE FINANCIAL PLAN FOR THE AIRPORT DREW HEAVILY ON TAXPAYERS' FUNDS FOR EQUITY AND SAID AIRLINES SHOULD ALSO CONTRIBUTE THEIR FAIR SHARE.

IF AIRLINES WERE TO PAY LESS. THE TAXPAYER WOULD HAVE то PAY MORE. SHE SAID SHE SAW "NO JUSTIFICATION TO ASK THE TAXPAYER IN EFFECT TO SUBSIDISE THE AIRLINES IN THIS WAY.

"IT IS ONLY FAIR THAT THOSE WHO BENEFIT SHOULD ALSO CONTRIBUTE WHICH MEANS THAT AIRLINES SHOULD CONTRIBUTE THROUGH THE PAYMENT OF AIRPORT CHARGES AT KAI TAK TOWARDS THE COSTS OF THE CHEK LAP KOK.

"CHARGES AT AN AIRPORT INEVITABLY INCREASE WHEN CAPACITY HAS TO BE EXPANDED AND CAPITAL HAS TO BE RAISED TO HELP FINANCE EXPANSION.

"WHENEVER AN AIRPORT ADDS A TERMINAL OR RUNWAY ΤΟ EXPAND CAPACITY - JUST LIKE AN ELECTRICITY COMPANY BUILDING A NEW POWER STATION COSTS GO UP AND THIS IS TAKEN INTO ACCOUNT WHEN SETTING CHARGES.

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"THIS IS BASICALLY ALL THAT IS HAPPENING IN THE CASE OF KONG'S INTERNATIONAL AIRPORT," SAID MRS CHAN.

HONG

"THE ONLY WAY WE CAN EXPAND CAPACITY AT HONG KONG INTERNATIONAL AIRPORT IS TO RELOCATE IT FROM KAI TAK TO CHEK LAP

KOK.

T

"FOR ACCOUNTING PURPOSES AND THIS IS WHAT DR ESER SHOULD BE FOCUSING ON THERE ARE NOT TWO HONG KONG INTERNATIONAL AIRPORTS: ONE IS REPLACING THE OTHER.

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MRS CHAN REFUTED AS "MISLEADING" A NUMBER OF

STATEMENTS WHICH

HAD BEEN MADE PUBLICLY BY DR ESER.

TAK ARE FULLY

"THE INCREASED CHARGES WE ARE MAKING AT KAI JUSTIFIED AND ARE IN ACCORDANCE WITH ALL THE RELEVANT GUIDELINES SET BY THE WORLD BODY GOVERNING SUCH ISSUES

THE INTERNATIONAL CIVIL AVIATION ORGANISATION (ICAO).

"IT SHOULD ALSO BE BORNE IN MIND THAT SUCH CHARGES CONTRIBUTE ONLY A VERY SMALL PART OF OVERALL AIRLINE COSTS · ICAO HAS ESTIMATED THAT, ON AVERAGE, LANDING AND ASSOCIATED AIRPORT CHARGES REPRESENT LESS THAN 4 PER CENT OF AIRLINE COSTS.

"THE INCREASE IN CHARGES IN HONG KONG IS THUS UNLIKELY то AFFECT ADVERSELY THE COMPETITIVE POSITION OF THE AIRPORT, OR ΤΟ HAVE ANY IMPACT ON THE COMMERCIAL VIABILITY OF THE AIRLINES CONCERNED.

/"THE LEVEL