Even though there are direct flights between the mainland and Taiwan, it will have little impact on the city's air traffic, the Hong Kong Airport Authority (HKAA) said yesterday.

Daily direct flights from Hong Kong to Taiwan are more frequent than from the mainland, said Stanley Hui, CEO of HKAA.

He was speaking on the speculation that the number of Hong Kong's air passengers will drop substantially after the central authorities announced on Sunday more residents would be able to fly directly to Taiwan soon.

Mainlanders with permits to travel to Taiwan will be able to travel to and back from the island through the islands of Jinmen, Mazu and Penghu, State Council Taiwan Affairs Office said on Sunday.

Residents from nine provinces and municipalities on the mainland have been allowed to visit Taiwan in group tours since July 20 this year.

"In Hong Kong, mainland tourists have more flights to choose from. They are likely to stop by Hong Kong on their way to Taiwan," Hui told reporters after a luncheon yesterday.

However, Cho Fook-tat, an aviation analyst at Taifook Securities, warned the number of passengers from and to Hong Kong will decline by 10 percent to 20 percent once the cross-Strait flight resumes and Hong Kong's tourism industry would earn as much as HK$3 billion less a year than before.

Cho said Hong Kong airport is facing growing competition in the region, and that it should team up with airports on the mainland to channel mainland travelers flying overseas.

"As the airports in both Beijing and Guangzhou have aggressively expanded their size and capacities, and Pearl River Delta is now home to five airports, Hong Kong airport should secure its leading position in the region. Cooperation among airport operators is very necessary for the long-term growth," Cho said.

To maintain Hong Kong's status as Asia's prime air hub, HKAA said it hopes to maximize the two existing runways' capacity to 68 takeoffs and landings per hour in 2015 from current 55 movements.

The airport operator is also launching a feasibility study on the construction of a third runway, which is expected to take two years.

"The construction will be very expensive," said Marvin Cheung, chairman of the airport authority Hong Kong.

"The project also involves additional reclamation from deep waters and many other technical problems," said Hui, adding the budget required is yet to be ascertained.

The robust economic growth on the mainland and the rest of Asia helped achieve an 8 percent jump in traffic last year. Asia-Pacific airline traffic may grow an average of 5.8 percent a year until 2025, according to the Airports Council International.

(HK Edition 09/09/2008 page2)