Airport Authority Hong Kong (AA) announced today a new round of relief package worth up to HK$2 billion, providing further support to airlines and aviation support services operators through helping to ease their liquidity pressure.
The AA will offer to purchase around 500,000 air tickets in advance from the four home-based airlines. The purchase will serve the purpose of injecting liquidity into the airlines upfront, while the tickets will be given away to global visitors and Hong Kong residents in the future market recovery campaign to be launched when the pandemic is over.
Another relief measure provides an option for aviation support services operators at Hong Kong International Airport (HKIA) to sell their ground services equipment (GSE) to the AA. The AA will buy the GSE from operators in cash and pay upfront, with the aim of helping to improve the cash flow of operators. Operators will also enjoy a rent free period for using the equipment after the sales. Operators providing services in ramp handling, maintenance, catering and into-plane fuel, etc, may participate in the scheme on a voluntary basis.
A spokesperson for the AA said: “During this difficult time, the AA 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 revenue because of the traffic plummet. The AA will go to the financial market in the next two months to raise the necessary funds, in order to maintain its own liquidity for funding the airport operation and the committed capital projects. The loan will also be used to finance the new relief package.”
The new package is put together by the AA on invitation from the Government to join hands in supporting the aviation industry further. To date the AA has introduced altogether four rounds of relief measures amounting to a total of $4.6 billion for supporting the airport community.