|Hong Kong government is providing fund to airlines based on fleet size Photo: From Web|
The Hong Kong government has decided to distribute funding of HKD $236 million, equivalent to $30.4 million, to Cathay Pacific Group based on fleet size.
For each large aircraft registered in Hong Kong, the government will provide funding at a rate of HKD $1 million ($129,000) per aircraft. Whereas, airlines will get HKD $200,000 for smaller planes.
Officials at Hong Kong have decided to consider a aircraft with a “maximum total weight authorised” of more than 54.5 tonnes as large aircraft.
According to reporters, officials have decided that the Airbus A320 would be considered as a large aircraft, as the aircraft has an MTOW of 68 tonnes.
|Airbus A320 have been counted as a large aircraft Photo: JetPhotos|
Cathay Pacific Group includes flag carrier, Cathay Pacific, Cathay Dragon, Hong Kong Express and cargo airline Air Hong Kong.
The group currently have 236 aircraft registered and are expecting to receive HKD $236 million.
Along with Cathay Pacific Group, its hometown rival, Hong Kong Airlines is also expecting to receive funding of HKD $32 million.
|Hong Kong Airlines to receive HKD $32 million Photo: JetPhotos|
The total funding of HKD $236 million expected for Cathay Pacific Group includes HKD $24 million for its budget carrier Hong Kong Express, HKD $48 million for regional airline Cathay Dragon and HKD $9 million for the cargo carrier Air Hong Kong.
This funding is part of a HKD $137.5 billion large citywide coronavirus pandemic relief package announced on Wednesday to keep the Hong Kong economy afloat.
“Given the epidemic’s catastrophic impact on Hong Kong’s economy, the Government has to dig deep into its fiscal reserves accumulated over the years to help our businesses and people. With Hong Kong’s fundamental strengths and our people’s resilience, we are confident that our city can ride out this storm and Hong Kong can be relaunched,” said Mrs. Carrie Lam, Chief Executive of Hong Kong Special Administration Region.
|Cargo Airlines Air Hong Kong to receive HKD $9 millon Photo: JetPhotos|
In addition to his funding, the Airport Authority has said that it would buy 500,000 air tickets to inject cash into the ailing local carries as part of a HKD $2 billion scheme for the aviation industry.
“During this difficult time, the Airport Authority has been trying its best to support business partners. As an integral part of the aviation industry, the AA is also facing a significant shortfall in revenues because of the traffic plummet,” said Hong Kong Airport Authority spokesman.
Cathay welcomed this financial aid provided by the government, which also included HKD $2.6 billion from the Airport Authority before the pandemic relief fund was announced.
|Aircraft parked at Hong Kong Airport Photo: From Web|
However, this funding is short of the estimated HKD $46.5 billion ($7 billion) in lost passenger revenue this year.
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