Chapter 14: Civil Aviation

Hong Kong is a major international and regional aviation centre. The Hong Kong International Airport (HKIA) is one of the busiest in the world. At the end of 2001, there were 64 scheduled airlines serving Hong Kong. These airlines together operated about 3 800 weekly scheduled flights between Hong Kong and some 130 cities world-wide. In addition, an average of about 30 non-scheduled flights were operated to and from Hong Kong each week.

Owing to the global economic slowdown and the terrorist attacks in the United States on September 11, there was a slight decrease in passenger throughput at the HKIA. In 2001, a total of 33 million passengers (including one million in transit) passed through the airport, representing a decrease of 0.9 per cent from 2000. Cargo traffic amounted to 2.1 million tonnes, representing a 7.4 per cent decrease compared with 2000. The corresponding value also fell by 4.4 per cent to $824.1 billion. On the other hand, aircraft movements continued to grow. In 2001, a total of 196 833 aircraft landed and took off at the HKIA, representing a growth of 8.2 per cent over 2000. To cater for the increase in aircraft movements, the runway capacity was increased from 45 to 47 movements per hour, starting from March.

Air transport continues to play an important role in Hong Kong's external trade. Goods carried by air accounted for about 30.6 per cent, 28.5 per cent and 22.7 per cent, in value terms, of Hong Kong's total imports, exports and re-exports respectively in 2001.

Owing to the September 11 incidents, insurers cancelled war and terrorist risk coverage for airlines and airports world-wide. The Government provided a stop-gap indemnity guarantee for the Airport Authority (AA) which was able to put in place commercial insurance cover. The incidents also led to heightened aviation security world-wide. While the HKIA's security measures such as 100 per cent baggage screening exceed international standards, the AA nonetheless introduced enhanced security measures in late September.

With all of its opening phase facilities in place, the AA focused its attention on building on the high level of services at the HKIA. In June, the AA announced a major upgrade of passenger terminal facilities and services, with an emphasis on relaxation and comfort for passengers. Shower facilities, mini-cinemas, massage chairs and more coffee lounges were just some of the new attractions, and a total of 8 300 square metres of new shops, restaurants, cafes and other attractions will be added to the terminal over the next three years. During the year, the airport's popularity with passengers was on the rise. In April, the HKIA was named the World's Best Airport for 2001 in a survey conducted by Skytrax Research.

On cargo handling facilities, early in the year a contract was awarded to Tradeport Hong Kong Limited to develop a logistics centre at the airport for processing time-critical air cargo. Operations are due to start in 2003. A Marine Cargo Terminal, which opened in March, provides a one-stop service linking the airport with 20 river ports in the Pearl River Delta. Together, these facilities will reinforce the HKIA's position as the premier gateway for China and the logistics service management centre of the region. Eight new cargo stands were completed in December, bringing the total to 21.

The AA announced in October that it would extend the 15 per cent reduction in airport landing and parking charges until September 30, 2002. At the start of the year, the AA introduced an incentive arrangement for airlines operating flights to new destinations. Airlines enjoy a 50 per cent rebate on landing charges for the first year on flights they operate to a new destination, and a 25 per cent rebate in the following year.

In October, the AA unveiled its Master Plan 2020 for the long-term development of the HKIA. The Master Plan includes proposals for expansion and enhancement of the passenger terminal building and cargo handling facilities, enhanced inter-modal connectivity for the HKIA, logistics development of services and a commercial project named the 'SkyCity' as well as co-operation with other airports in the Pearl River Delta area. Recognising the fast growth of express cargo throughput, the Master Plan also includes proposals for the development of a dedicated express cargo terminal. Tenders for this project were invited in December.

The Government and the AA will continue to work closely with the airlines and the airport community to strengthen Hong Kong's position as a centre of international and regional aviation, the preferred gateway of China and a world-class logistics hub.

In 2001, the Air Transport Licensing Authority granted five licences: one to Cathay Pacific Airways (CPA), two to Hong Kong Dragon Airlines (HDA) and two to Air Hong Kong (AHK). At the end of the year, CPA held 10 licences to operate scheduled services to 130 destinations, HDA held 11 licences to operate scheduled services to 104 destinations and AHK held seven licences to operate scheduled services to 56 cities.

CPA launched its new scheduled passenger services to Delhi in March, to Riyadh in October and to Sapporo in December. From July to October, the airline's services to some destinations were affected by its pilots' industrial action, necessitating some flights to be cancelled and others to be operated by wet-leased aircraft from other airlines. At the end of the year, CPA operated scheduled services to 46 destinations world-wide.

HDA's services continued to develop during the year. The airline commenced scheduled all-cargo services to Osaka in May and converted its non-scheduled cargo service to Shanghai to scheduled service in June. In addition, it resumed its passenger services to Ningbo in September. Following the delivery of its first purchased freighter in September and the second in October, HDA increased the frequency of its scheduled all-cargo services to Dubai, Amsterdam and Manchester as well as to Shanghai. At the end of the year, HDA operated scheduled services to a total of 29 destinations, including 18 cities in the Mainland.

AHK continued to operate scheduled all-cargo services to Dubai, Brussels, Manchester and Osaka and commenced scheduled all-cargo services to Seoul in May.

At the end of 2001, the fleets of the three airlines were as follows:

Three new airlines introduced scheduled passenger services to Hong Kong in 2001: Continental Airlines between New York and Hong Kong in March (marking a new era of non-stop service between the east coast of the United States and Hong Kong), Pacific Airlines between Da Nang and Hong Kong in April, and Cebu Pacific Air between Manila and Hong Kong in November. Three other airlines commenced scheduled all-cargo services to Hong Kong during the year: Transmile Air Services between Penang and Hong Kong in May, Air Freight Express between London and Hong Kong in July, and Singapore Airlines Cargo between Singapore, Hong Kong and the United States in July (taking over the air cargo operations from Singapore Airlines).

On the other hand, Ansett International suspended all its services to Hong Kong in September due to the company's financial difficulties. Alitalia suspended its scheduled passenger services to Hong Kong in October but continued to operate scheduled all-cargo services between Milan and Hong Kong. Royal Air Cambodge also suspended its scheduled passenger services to Hong Kong in October.

The overall air traffic control (ATC) equipment system continued to perform in a stable and reliable manner during the year. At present, the system has a capacity to cope with 50 runway movements per hour. With more than three years of working experience, a number of major ATC equipment systems will be enhanced for better operational efficiency and higher data processing capabilities so as to handle effectively the projected increase in air traffic movements in Hong Kong and the Pearl River Delta area. Funds amounting to $50.7 million were approved by the Legislative Council's Finance Committee in February. The enhancements are being carried out in phases and targeted for completion in early 2003.

Meanwhile, the existing Route Surveillance Radar (RSR) at Mount Parker, a long-range primary radar, has been in use for more than 22 years and is approaching the end of its operational life. Approval was also obtained from the Legislative Council's Finance Committee in February to replace the RSR at a cost of $104.7 million. Tender evaluation is under way with contract award targeted in early 2002. The replacement RSR is scheduled to be commissioned by end-2003.

Under the auspices of the International Civil Aviation Organisation (ICAO), an agreement was reached between China and Vietnam in respect of the reorganisation of airspace over the South China Sea. On November 1, the air route structure over the South China Sea area was revised. New direct air traffic services routes were implemented to replace some of the previous routes for increased air traffic management efficiency and capacity. Simultaneously, a new Sanya Area of Responsibility (AOR) was established to take over the provision of air traffic services within portions of the Hong Kong Flight Information Region and Area of Responsibility. As a result, the overall quality of service as well as the safety and efficiency of aircraft operations in the South China Sea area were enhanced with the provision of radar service and Very High Frequency communication services in the Sanya AOR. Throughout the planning and implementation process, the CAD maintained close co-ordination and a good working relationship with neighbouring aviation authorities and international aviation agencies, including the ICAO and the International Air Transport Association (IATA).

To follow up the recommendations of the United Kingdom Civil Aviation Authority (UKCAA) which was invited to review the ATC system in Hong Kong in 2000, the CAD continued to refine the management and organisation of the Air Traffic Management Division (ATMD), the ATC incident investigation procedures, and ATC staff training and operations. Improvement measures taken include stepping up the monitoring of front-line operations by introducing additional supervisory staff, refining the ATC incident investigation procedures so that staff involved can be reinstated to operational duties in a shorter time frame, implementing a Safety Management System (SMS) to ensure the highest safety standard can be maintained in the face of increased traffic and complexity.

To ensure the provision of efficient ATC services in the Pearl River Delta area, the CAD continued to maintain close liaison with the civil aviation authorities of the Mainland and Macau. In 2001, a series of tripartite meetings on ATC operations was held to refine the flight procedures of airports in the area, including Hong Kong, Shenzhen, Zhuhai and Macau, and to enhance ATC co-ordination arrangements among these airports.

Satellite-Based Communications, Navigation and Surveillance/Air Traffic Management (CNS/ATM) Systems

The CAD plans to convert the current ground-based ATC systems to satellite-based Communications, Navigation and Surveillance/Air Traffic Management (CNS/ATM) systems by around 2016. Given the scale and complexities of the CNS/ATM systems, the work will be implemented in three phases as follows:

Study Phase — Systems Study and Analysis (1999-2004)

Trial Phase — CNS/ATM Trial and Evaluation (2000-2007)

Implementation Phase — CNS/ATM Implementation and Transition (2003-2016)

Studies and trials of these next-generation ATC systems continued in 2001. With favourable feedback from the IATA, airlines and pilots, Digital-Automatic Terminal Information Service (D-ATIS) and Digital-Meteorological Information for Aircraft in Flight Service (D-VOLMET) were put into operational use on April 19 to disseminate airfield and meteorological information to aircraft via data links. Furthermore, upon the satisfactory operational trial in the delivery of Pre-departure Clearance to aircraft over data links, the service was also launched for operational use on December 4.

By eliminating the need for pilots to manually copy down important ATC information and messages, which were available previously only by voice communication, these new services employing digital technologies improve data accuracy, reduce the workload of pilots and controllers, enhance operational efficiency, and alleviate radio frequency congestion.

To gain operational experience, technical trials on an Aeronautical Telecommunication Network and an Air Traffic Services Message Handling System were conducted by the CAD with its counterparts in Thailand, Japan and Australia during the year, with encouraging results. Further trials on other CNS/ATM system elements are scheduled for 2002.

In Hong Kong, impact caused by aircraft noise is assessed on the basis of the internationally accepted 'Noise Exposure Forecast (NEF) Contour'. The determination of the contour takes into account factors including the decibel levels of aircraft noise, the tonal characteristics as well as the duration and frequency of overflying flights at different times of the day. The standard currently adopted in Hong Kong is the NEF 25 contour, which is more stringent than the standards adopted by some other airports.

The Government is mindful of the concern of some residents about aircraft noise. The CAD continued its effort in exploring and implementing all practicable aircraft noise mitigating measures. These include noise abatement take-off and landing procedures, prohibition of landing/take-off of relatively noisy aircraft at night and, whenever possible, use of flight paths which cover fewer residential areas. Furthermore, a plan is being implemented to further expand and upgrade the existing computer-based aircraft noise and flight track monitoring system to enhance its monitoring capability. Following the expansion, there will be a total of 18 monitors located at strategic locations under the flight paths or in the vicinity of the airport.