The aviation industry in Hong Kong will take a long road to recovery, according to the International Air Transport Association (IATA), as foreign airlines are reluctant to return to the city given its unpredictable Covid-19 travel restrictions. IATA sounded off a warning for the aviation hub recovery saying that carriers are tired of changing regulations at short notice and they no longer wanted to take that risk.
Willie Walsh, Director General, IATA said: “The recovery of Hong Kong as a global hub will take considerable time and other aviation hubs were, without question benefiting from the city’s travel curbs.”
Walsh also added that the airlines need to sense a feeling of stability and assurance that the curbs would not be reintroduced before starting operations in Hong Kong.
“The damage to the status of Hong Kong as a hub has been very significant. As we continue to look at the recovery and as airlines put more capacity back, I think there will be a greater sensitivity to those markets that are unpredictable,” Walsh added.
The latest statistics show that Singapore Changi Airport overtook Hong Kong as the top airport in the region, with 3.6 million passengers passing through in October 2022. In a Board of Airline Representatives of Hong Kong meeting held in September 2022, it was brought to light that out of 110 foreign airlines that flew to Hong Kong prior to the pandemic, about 48 foreign carriers had ceased operations citing stringent restrictions.
Marie Owens Thomsen, Chief Economist, IATA said: “Hong Kong remained a key variable” for the recovery of the airline industry. The longer China remains in various forms of lockdown, the higher the risk of a global recession and the longer it will take the airline industry to recover to where it needs to be.”
IATA expects the Asia-Pacific region to recover to pre-pandemic levels in 2025.