ENG-2008 — Page 326

262 Transport

Departure Immigration halls in Terminal 1; expansion of the East Hall transfer area; consolidation of the two Arrivals Immigration halls; and construction of a new North Satellite Concourse. These projects are scheduled for completion before 2011. In addition, a total of 42 'Self check-in' kiosks were installed at Terminal 1 in 2008 to further enhance passenger flow.

To encourage airlines to add new destinations, HKIA has extended the New Destination Incentive Arrangement for one year to the end of 2009. Airlines operating scheduled flights to new destinations can enjoy a rebate on the landing charge.

Preparation for Growth

To ensure HKIA continues to meet increasing demand for aviation services and serve the best interests of the community, the airport appointed a consultant in July to draw up the Hong Kong International Airport Master Plan 2030 — a 20-year blueprint that will assess the operational requirements and constraints of HKIA. The study will also look into the feasibility of building a new runway at HKIA.

Air Services

Under the specific authorisation of the Central People's Government, the HKSAR Government continues to negotiate and conclude bilateral air services agreements with aviation partners to provide the legal framework for scheduled air services between Hong Kong and other places. At present, there are 58 such agreements.

The Government also reviews the traffic rights arrangements with its partners to expand Hong Kong's aviation network and to allow more competition in the market. In 2008, the Government expanded traffic arrangements with 16 aviation partners.

During the year, the Air Transport Licensing Authority (ATLA) granted six new licences: three to Cathay Pacific Airways, one to Hong Kong Dragon Airlines, one to Air Hong Kong, and one to Oasis Hong Kong Airlines. The Procedural Guide on ATLA's procedures for processing licence applications is available at: www.thb.gov. hk/eng/boards/transport/air/atla_procedural_guide.pdf.

Cathay Pacific Airways (CPA) added three Airbus A330-300 and four Boeing B777-300ER passenger aircraft to its fleet and started to take delivery of two B747- 400ERF freighters during the year. With the expanded fleet, CPA launched scheduled all-cargo services to Hanoi and Dhaka in March and to Miami and Houston in September. The airline also enhanced its regional services to India and Japan by increasing frequency of services. However, in response to the high fuel prices in the first half of the year, CPA implemented capacity redeployment measures in the winter season by reducing frequencies to North America while increasing services to Australia and Europe. As of the end of the year, CPA operated scheduled services to 59 destinations worldwide.

Hong Kong Dragon Airlines (HDA) continued to focus on regional routes. The airline launched scheduled passenger air services to Bangalore, Hanoi and Manila in July, October and December respectively. It suspended its passenger services to Sendai and Haikou in March and July respectively and its all-cargo services to Osaka