ACORD

31 May 2011

Cathay Pacific Chief Executive John Slosar told an Australian audience that a third runway at Hong Kong International Airport (HKIA) would be important not only for Cathay Pacific and the aviation industry, but for the long-term stability and sustainability of the economy of Hong Kong.

Giving the keynote speech today at a luncheon organised by the National Aviation Press Club in Sydney, Mr Slosar said that Hong Kong’s airport had become a victim of its own success and that the current two runways at HKIA will be saturated within the next seven to nine years - 15-20 years ahead of the original blueprint forecast for 2040.

“This is a good news story – the growth in flights to and from Hong Kong has way exceeded expectations. And Hong Kong as a destination, and as an economy, has certainly benefited from that,” Mr Slosar explained.

He added that: “In order to maintain the competitive edge required to sustain Hong Kong’s long-term future as an international centre for transport, trade, finance, and logistics, a third runway at HKIA is going to be needed.”

Mr Slosar said the Hong Kong community would need to debate the issue of the third runway and he was pleased to note that the consultation process for the Hong Kong International Airport Master Plan 2030 would begin this week.

“As Hong Kong’s home carrier, we will certainly play our part in the debate,” Mr Slosar said. “We will be vocal in putting forth our views and I guess you would expect nothing less from us. Connectivity with the rest of the world has made Hong Kong what it is today so we must be clear on how we can maintain and grow these linkages for tomorrow.”

Mr Slosar highlighted the fact that since Hong Kong opened the current airport at Chek Lap Kok in 1998, Cathay Pacific has spent a “huge amount of time, effort and treasure in growing it to be the region’s premier aviation hub”.

“We are true believers in Hong Kong and unabashed bulls on the future of China. And we continue to put our money where our mouth is,” he said, pointing to the investments Cathay Pacific is making to boost Hong Kong’s hub role. These include a new HK$5.5 billion cargo terminal, due to open in early 2013, significant investments in new products on the ground and in the air, and 87 new aircraft for delivery up to the end of the decade with a list price in the region of HK$180 billion.

“That’s quite an order book – and it may not be finished yet. Watch this space!” he added.

Cathay Boy

Problem with a third run-way is that it's going to be another major land-fill, and left-wing environmentalists are going to have a field day with this, both in protests and in the courts. Not sure how powerful they are in HK but they are quite powerful in US and a reason US is lagging behind in major infrastructural projects.

But I am always surprise how efficient HKG can be with only two runways, when you think about the amount of take-offs and landings it has as a major East-Asian hub.

But yeah, if HKG is going to be competitive, especially with the rise of Shenzhen, Zhuhai, and Guangzhou, they should really position themselves well with a third run-way. As it is easier and easier to transport to Shenzhen they have lost many intra-China pax to it, and the future bridges that connects HK-Macau-Zhuhai will only make the problem worst.

CX HK

A third runway is imperative to the future of HKG, especially if you see the kind of growth in China. Shanghai has a two capable airports with PVG and SHA, and more and more people are now electing to use airports close to HKG even if their destination is in HK. With land transport becoming easier and other Canton airports improving, not building a third runway would let other hubs catch up to us.

As for environmental concerns, there is always a debate between economic benefits and environmental damage, and without knowing the full report I can't comment. Anyone know the extent of the damage?

Connecta

And that's exactly why for example the future HKG-Zhuhai-Macau bridge is on ice. A 66-year old lady filed a lawsuit that the performed environmental impact analysis was insufficient, putting that HKD 70 billion project on hold...

Genius1

Try the UK We'll never build anything new over here at this rate

g.yau

I have a feeling that the 3rd runway might happen, however it will definitely be a long battle. If you think about it CX has quite a strong argument, they've ordered 96+ new aircrafts and a new cargo terminal is being made, they're pretty much promoting HK in all its' glory, a 5 star airline and just awarded no.1 in cargo through out the world. KA was Best Regional Airline in 2010.
If the 3rd runway isn't going to be made; flight slots would be very tight and limited, this would stop CXs' and KAs' growth in the future and their image as well

If CXs' argument isn't enough, I have a feeling that HX would also speak out; they've ordered a large amount of aircrafts as well (30 A320s, 16 A330-200s, 15 A350s, 30 B787-9) if slots are limited where would the undelievered aircraft go.

If CXs and HXs ordered aircraft are added together it would give an amount of 187; adding that amount to their current fleets and other airlines flying to HK from around the world, HKIA would just burst and go over the limit if the 3rd runway isn't built.

Also Slosar quoted that there might more new orders to come, can we expect the A380 or more 777-300ERs (Please order the A380, lol sorry I'm currently in my own world)

LOL that is so true. Our only hope is for Boris Island and we know that would never happen. LMAO

hau cheng

One option talked about is to integrate more with Shenzhen airport. However, HKG should really be aiming at its future capacity. I think they should build it.

Cathay Boy

Unless China will permit CX to use Shenzhen as a secondary hub, there won't be any real benefits for HK to integrate more with Shenzhen. In fact, Shenzhen will steal more pax away from HKG (if not already.) A third runway is a must for CX, KA, HX, and others to have a meaningful chance of competition against up and raisers in Shenzhen and Zhu Hai.

General_Flyer

Most of the times, 'greenist' just go in the way of progress.. The easier way instead of doing landfills, why not cut the mountains instead?

midlevels

While I'd hardly consider myself in the 'green camp', to be fair, the courts ruled that the environmental impact analysis was inadequate so one can hardly fault the lady for bringing government incompetence into the limelight.

Had the government done the analysis adequately, the lady would have had no case. But the government messed up and now they have to bear the consequences.

Connecta

Absolutely - fully agree! Just wanted to point out that it probably won't be that easy to get a third runway approved, especially with experience now that they have to do much more than just something superficial to tick the boxes in their project plans.

However, I don't think that CX's purchase/investment commitments will be decisive. If they have invested too much without considering potential constraints, then it's just a bad business decision like for any other company (which I don't claim for CX).

The very best argument for expansion (tried and tested in other countries like Germany with strong Green parties, etc.) will be significant contribution to sustained economic growth, which includes creating many jobs. This is something to go in line with 'public policy' - although more difficult if other sectors are booming already and job market is already hot (-> inflation).

g.yau

http://www.hkairport2030.com/tc/index.html
http://www.khl.com/magazines/interna...-third-runway/
WAAAHHH!! I'm so happy that the potential layout of the new runway includes a new terminal, the X shaped terminal is back; it looks like it will not be a separate terminal though i.e. terminal 3. But instead it's going to be connected with a people mover. With this layout HKIA is definitely reaching towards the top.

Option 1:


Option 2:



Video of the potential layout:
http://www.youtube.com/watch?v=xmD5H...layer_embedded
There's even a CX A380 at 2:45

For those who understand cantonese there's a better explanation on the masterplan
http://www.youtube.com/watch?v=rOAq3...mbedded#at=501
Another video in cantonese:
http://www.youtube.com/watch?v=94k-3...mbedded#at=112
I know that the 3rd runway is still not approved but looking at this layout just makes me happy

Flying Viking

Before this becomes another green vs development question, it is fair to say that the HK authorities have, at best, a spotted record in taking care of the small pieces of land they do have: The Lamar site in Central, which could have been an AWESOME outdoor space with greenery, pubs, bars and restaurants is instead being concreted to oblivion and a distinctly uncharming edifice is coming up. In that connection, they just as well built more road along the waterfront too, instead of making it a promenade a la Clarke's Quay in Singapore. Imagine how pleasant it could be to have a corridor along the waterfront from IFC and Star Ferry (don't get me started on the horrors of the new terminal!) to the Lamar site.

So, honestly, environment is much spoken of, done litte about, in HK - and you don't have to be a batik-wearing, Scholl-sandal donning enviro to see this. The concerns, whether they shave off mountaintops or build a new island or fill in seabed, are justified: Once done, it cannot really be undone if the consequences are worse than expected. Hence the strict focus on doing the homework properly before even sticking a shovel in the ground. If they want to do this, best do it properly and get in a world-class team of experts in Environmental Impact Assessments. This needs credibility.

If they really estimate the cost to HKD 80 billion (reported in SCMP), I just wonder how much high-speed rail straight to f.ex. Shenzhen airport they could get for that kind of money. And then use SZH to handle some or most of the China traffic. The transfer would of course have to be a h**l of a lot better than the transfer from Macau to HKIA, but that is a needlessly poor benchmark. Or use the underutilised Macau airport, assuming the transfer-issues can be sorted (go straight to your plane, no fussing about with security checks again and again, no need to do immigration in HK or Macau, etc.).

I just really hope that the authorities don't get too keen on concrete again until they have checked that they can not get better bang for their bucks by expanding the capacity of HK through different means.

Mrtnw

These plans have been on the drawing board for a long time. It`s just a matter of timing and managing the political element to it.

Another crazy, totally unrealistic idea would be to have a Pearl River Delta Airport, combing HKG, Shenzhen, Macau and Zhuhai airports with separate customs areas for the 3 governments involved. THAT would be a powerhouse

Connecta

A friend of mine working for the HKG gov't just sent me this link promoting the third runway:
http://www.hkairport2030.com/en/environment/index.html

And invited me to fill out the feedback questionnaire:
http://www.hkairport2030.com/en/listen/comments.html

Have already submitted mine