CHINA (HONG KONG). Airport Authority Hong Kong has introduced new relief measures for its airport partners in light of the serious downturn in passenger traffic caused by the Novel Coronavirus outbreak.
In a statement to The Moodie Davitt Report, Airport Authority Hong Kong said: “Since the Novel Coronavirus outbreak, the number of passengers at Hong Kong International Airport has decreased significantly, causing impact of different extent to businesses operating at the airport.
“Airport Authority Hong Kong is introducing a new round of relief measures, including rental concessions, reduction or waiver of fees, among others, to relieve the pressure on business operations for the industry.
“The new round of relief measures will benefit different airport business partners, such as airport retail and catering outlets, airlines, ground handling agents, ramp handling services companies, and aviation support service companies, etc.”
The relief package is the second to be introduced by Airport Authority Hong Kong in recent months to alleviate pressure on its partners caused by external events. In September 2019 the authority introduced rent concessions and other relief measures to help businesses impacted by the Special Administrative Region’s continuing social unrest.
“It is hoped that the two rounds of relief measures would be of help to the industry during this difficult period,” said Airport Authority Hong Kong.
“The relief measures which commenced last year and the new round of measures, coupled with rental adjustment and concessions, amount to about HK$1.6 billion (US$205.3 million).”
|Other airports to have announced relief measures
Airports of Thailand: On 19 February the operator of six Thai airports unveiled a wide-ranging relief package. Elements included a 20% discount on fixed monthly fees during the period 1 February 2020 – 31 January 2021. Discount guidelines for 1 February 2021 – 31 March 2022 are to be further proposed to the Airports of Thailand Board of Directors for consideration
Airports of Thailand also offered a discount on percentage-based fees with monthly/annual minimum guarantees. The percentage-based fees, except for monthly/annual minimum guarantees, shall only be collected during 1 February 2020 – 31 March 2022. For full details of the relief package click here.
Changi Airport Group: On 20 February the operator of Changi Airport in Singapore said that its retail, food & beverage and service concessionaires will receive rental assistance as part of a relief package to support businesses affected by the COVID-19 outbreak.
The assistance package, which is part of a S$112 million (US$79.97 million) programme, will see concessionaires across the airport offered a 50% rebate on their monthly basic rental costs for six months, effective 1 February 2020.
The reduction in base rental comes on top of an automatic rental offset tied to passenger movements at the airport. For full details click here.
Source: Moodie Davitt Business Intelligence Unit