ENG-2004 — Page 347

Transport 297

Air Traffic in 2004

After Hong Kong has fully recovered from the impact of the Severe Acute Respiratory Syndrome (SARS), passenger traffic at the HKIA surpassed the pre-SARS level by December 2003. A record high of 37.14 million passengers (including 850 000 in transit) passed through HKIA during 2004, representing a significant increase of 35.4 per cent from 2003. Aircraft movements also increased by 26.6 per cent to a total of 237 308.

Air cargo throughput at HKIA also set a record as a result of the continued strong demand for goods from North America, Europe and the Mainland. In 2004, the airport handled 3.09 million tonnes of air cargo, representing an increase of 16.9 per cent from 2003. The corresponding value also increased by 24.7 per cent to $1,340 billion.

Air transport continues to play an important role in Hong Kong's external trade. Goods carried by air accounted for about 36.4 per cent, 31.7 per cent and 28 per cent in value terms of Hong Kong's total imports, exports and re-exports respectively in 2004.

Home Market Extension

Enhancement of connectivity with the Pearl River Delta (PRD) through the development of multi-modal transport links remains the Airport Authority's (AA) dominant strategy to extend HKIA's catchment area to cover a population of over 40 million in the PRD region. During the year, two more ports in the PRD (Zhongshan and Guangzhou Lianhuashan) were added to HKIA's highly-popular network of cross- boundary ferry transfer services, which now cover six PRD ports. As the passengers of these ferry services are only in transit through Hong Kong, they need not go through. customs and immigration procedures in Hong Kong, resulting in significant savings in total travel time.

Cross-boundary coach services remain the dominant mode of connection between HKIA and the PRD. In 2004, coverage of these services continued to expand to over 40 destinations throughout the PRD, with about 200 daily services.

During the year, the AA launched the 'Fly via Hong Kong' service platform in the form of a website (www.flyviahk.com) that provides customers with information on all flights operating at HKIA and details of promotional packages, as well as useful travel and tourist information. Bundled tickets comprising air tickets from HKIA and transit to PRD destinations are also offered to customers via some 200 participating travel agencies located in the PRD.

To better integrate passenger and air cargo flows in the region, HKIA continued to work closely with airports in the Mainland to explore cooperation opportunities. During the year, the AA signed agreements with Beijing Capital International Airport and Shanghai International Airport to provide consultancy services on various aspects of airport management.

The inclusion of the airport services sector in Phase II of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA II) has provided Hong Kong