The authority, which operates the city's international airport, said Wednesday that its net profit for the year ended March 31 rose 15% to a record HK$6.45 billion ($832.1 million), up from HK$5.62 billion a year earlier, due to strong contributions from its retail and commercial operations and stringent cost controls. Revenue rose 13% to HK$14.81 billion from HK$13.13 billion.
The results come after the unlisted, government-owned authority called Friday for the public to express its view on the environmental impact of constructing a third runway at the airport at Chek Lap Kok.
Building a new runway would help expand capacity as the authority seeks to cope with growing air traffic in the region. The new runway project, estimated to cost HK$136.2 billion, would boost the airport's handling capacity by more than 40% when it becomes operational in 2023. However, environmental groups are concerned that the expansion, to be built on reclaimed land, would cause widespread pollution and damage the marine ecosystem.
The monthlong public consultation will end July 19, after which the government will make a decision on whether to grant an environmental permit to the project. The airport authority would also need to finalize funding for the runway, the city's most expensive infrastructure project ever, before it beg ins construction in 2016.
Chief Executive Stanley Hui said he expects the airport's existing two runways to reach maximum capacity in 2016, three years ahead of the initial estimation, because of stronger-than-expected demand for air travel.
Hong Kong's airport handled an average of 1,055 flights departing and arriving daily in the first five months of 2014, ranking it as the world's third busiest in terms of international air passengers, after Dubai International Airport and London Heathrow Airport, according to Airports Council International.
In recent years it has battled congestion, particularly during peak hours, because of limited availability of departure and arrival slots. Neighboring Shenzhen Bao'an International Airport, which is also planning to add a third runway, has for years been attracting passengers from Hong Kong with its more extensive network in mainland China and lower prices.
Still, in the near term earnings growth at Hong Kong's airport is expected to be tempered by softer air traffic volumes. "Growing constraints in handling capacity, weaker contribution from retail operations and the higher base that was created in the last fiscal year are all contributing factors," said Finance Director William Lo.
The airport operator estimates growth of passenger traffic to slow to around 3.8%, or a total of 63 million passengers, in the year ending March 2015. The airport handled 60.7 million passengers in the previous year, up 6.1% from 57.2 million a year earlier, while cargo throughput rose 3.5% to 4.18 million metric tons from 4.04 million tons.
The airport authority said it would pay the Hong Kong government a dividend of HK$5.3 billion, u p 21% from a year earlier. Its return on equity rose to 15.6% from 14.3%.
Source: Wall Street Journal by Joanne Chiu
from China Travel & Tourism News http://ift.tt/1iB6EFm
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