Asian governments have begun offering assistance to airlines in a bid to contain losses caused by the sharp drop in demand due to the Severe Acute Respiratory Syndrome (SARS) outbreak.
Taiwan was the first to announce cuts to airport user charges, while also offering domestic airlines additional concessions such as reductions on building and land rentals.
Singapore followed suit by saying it would give airlines a 30% rebate on landing fees at Changi International Airport - in addition to a 15% discount that was announced late last year.
Rental charges are also being cut by a further 10% at Changi. A 15% reduction on rentals is already in place.
Authorities in Hong Kong, where Cathay Pacific Airways and Dragonair are suffering particularly badly, were also expected to announce concessions for the aviation industry.
The Association of Asia Pacific Airlines (AAPA), which represents 17 Asia-Pacific carriers, and the International Air Transport Association praised the moves to reduce charges, which both associations had been pressing for.
"The outbreak of Severe Acute Respiratory Syndrome has hit aviation with a full body blow on top of our struggle to cope with the aftermath of the Iraq war and a global economic slowdown," says IATA director general and chief executive Giovanni Bisignani.IATA is again calling on the operator of Tokyo Narita airport to lower its charges, which it says are the highest in the world.
AAPA has said that the sharp drop in traffic caused by the spread of the SARS virus since March is posing the most serious threat ever to Asia-Pacific airlines, many of which have slashed capacity - some by up to 50%.
Source: Flight International
