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Lam Ka-sing

Harvey Kong

Hong Kong authorities are coordinating with airlines to increase direct flight and transfer capacity, turning the challenges posed by the US-Israel war on Iran into opportunities, the transport minister has said.
Secretary for Transport and Logistics Mable Chan also said on Saturday that the ongoing Middle East turmoil had deeply disrupted global trade and aviation networks, underscoring the need for Hong Kong to reduce its reliance on traditional oil by expanding supply sources.
“We can increase our capacity in some direct flights to Europe and the United States, or we can increase our capacity in Hong Kong to provide transfer services,” she said.
“We will seize the opportunity presented by the war in the Middle East to do a good job.”
The three-runway system and the opening of a redeveloped second passenger terminal building in May would help boost the airport’s capacity to grasp the opportunities arising from the conflicts, Chan said.
As local airlines had raised fuel surcharges by up to double amid soaring global oil prices, the government mandated that operators clearly list these charges on their websites and tickets to ensure price transparency, she added.
“We also have a permanent fuel storage tank at Hong Kong International Airport, ensuring a stable and sufficient supply,” Chan said.
She also said the war and the recent price fluctuations of crude oil and refined oil products suggested a need to expand the supply pool.
To further mitigate reliance on volatile traditional oil, the city successfully completed its first green methanol bunkering operations with zero-carbon fuel supplied from mainland China, Chan said.
The administration planned to provide half-price or a 25 per cent discount on port and berthing fees for vessels using green fuels to attract international shipping lines, she said.
“I hope that in the future, Hong Kong can move towards normalising green methanol bunkering,” Chan said.
She said that while major petrol companies in the city had raised prices since the war broke out on February 28, the government had contacted several public transport operators to understand the impact on costs.

Chan said mechanisms existed to handle fare rise applications, taking into account overall operating revenue and costs and anticipated passenger growth.
“We will make sure that fares are affordable to the public, while also ensuring the financial sustainability of the operators,” Chan said.
Lawmaker Lothair Lam Ming-fung said that the maritime sector faced severe pressure as vessels bypassing the blocked Strait of Hormuz and the Red Sea added 15 to 20 days to their journeys.
The detour caused fuel costs to surge by US$200,000 to US$300,000 per voyage and pushed freight rates up by US$2,000 per 20-foot equivalent unit, Lam added.
“These increased freight rates will, as time slowly goes by … slowly be passed on to small and medium enterprises, and then passed on to consumers,” Lam said.
Lawmaker Perry Yiu Pak-leung said the travel industry suffered as rising aviation fuel surcharges dampened the desire of residents to travel overseas and halted outbound tour groups to the Middle East, North Africa and Europe.
“Now many of our peers say that those originally planning to fly may now choose the high-speed rail to return to the mainland,” Yiu said.
Lawmaker Jonathan Lamport said the conflict presented an opportunity to attract capital to this comparatively stable Asian financial centre.
Some Hong Kong businessmen were doing business or exploring alternative emerging markets in the Association of Southeast Asian Nations, Lamport said.
Businessmen from the Middle East were simultaneously asking about tax policies of Hong Kong and how to enter the Greater Bay Area via the city, he added.
Lamport said he heard family offices, some sovereign funds and even company headquarters were looking to see if they could move over to Hong Kong for stability.
Jason Li Hanming, a US-based independent aviation analyst, said it would be viable for Hong Kong to have more direct flights to destinations in the US or Europe, but it would depend on whether their governments imposed restrictions.
Li pointed to increased demand for more direct and transfer flights out of Hong Kong due to the closure of Middle Eastern airspace.
The city could accommodate more transfer flights as the airport had yet to reach its previous traffic peak, he added.
“Since passengers flying between Europe and Asia are suffocated by the closure of Middle East hubs, there will be demand for alternative connecting points,” he said. “Therefore, if Hong Kong added flights to Europe, then it can accept more passengers.”


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Hong Kong to boost direct flights, transfer capacity amid Middle East turmoil

A Cathay Pacific aircraft takes off at Hong Kong International Airport. Photo: Sam Tsang

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The Hong Kong-Zhuhai-Macau Bridge. More Hong Kong drivers are crossing to the mainland to refuel, automobile association governor Ringo Lee says. Photo: Eugene Lee

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Hong Kong Fire Services Department officers crack down on an illicit petrol station at Yick Fung Building in To Kwa Wan, where three 1,000-litre containers were used for unauthorised storage and refuelling operations. Photo: Dickson Lee

Prices at a petrol station in Mong Kok. Photo: Jelly Tse

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The government has said it is working to ensure a stable fuel supply. Photo: Sam Tsang

The government says it has been urging oil companies to provide more data on auto-fuel prices. Photo: Eugene Lee

News

Hong Kong

Transport

Transport chief Mable Chan says authorities ‘seizing opportunity’ presented by aviation disruption to coordinate with local airlines


Transport chief Mable Chan says authorities ‘seizing opportunity’ presented by aviation disruption to coordinate with local airlines.


Hong Kong to boost direct flights, transfer capacity amid Middle East turmoil

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Transport chief Mable Chan says authorities ‘seizing opportunity’ presented by aviation disruption to coordinate with local airlines

Transport chief Mable Chan says authorities ‘seizing opportunity’ presented by aviation disruption to coordinate with local airlines