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Cathay Pacific terminal charge concession aims to boost HKG’s competitiveness

Following a difficult year for cargo performance stemming from global trade uncertainty and local political unrest, Cathay Pacific Group is planning to introduce a new terminal charge concession, effective from April 1, 2020. The move is intended to help boost the competitiveness of Hong Kong International Airport (HKG), which has also seen a decline in cargo volumes.

The new terminal charge concession will consist of an HK$0.30 per kilogram savings on both general and special cargo for export shipment customers using one of the Group’s four airlines – Cathay Pacific, Cathay Dragon, AHK Air Hong Kong and HK Express, according to the press release. As a result, Cathay Pacific Group said the reduction in cost will range from 18% to more than 20% compared with current charge levels.

The concession will be partially funded by the Airport Authority of Hong Kong (AAHK), which will contribute 20% of the terminal charge concession amount offered by Cathay Pacific Group to freight forwarders, subject to agreement between the AAHK and Cathay Pacific Group’s individual airlines.

In addition to reducing terminal charge fees for freight forwarders, the charge concession is also intended to mitigate the cost impact of new International Civil Aviation Organization (ICAO) security regulations that are set to be rolled out progressively at the start of 2020, Cathay Pacific Group noted.

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