HONG KONG - HONG Kong International Airport (HKIA) on Monday announced a US$58 million (S$86.8 million) relief package to help airlines struggling with dwindling demand.

The Airport Authority said it would cut 10 per cent off landing and parking charges until the end of the year, in a move worth HK$200 million (S$38.9 million).

It also said it would allow airlines to defer 50 per cent of rental payments for lounges, office premises and storage areas for up to one year. That measure would be worth around US$250 million, it said.

Stanley Hui, chief executive officer of the Airport Authority, said that traffic volumes at the travel and cargo hub have been in decline since August last year as a result of the global slowdown.

The first quarter of 2009 showed year-on-year decreases in passenger numbers of 7.1 per cent, and a 22.8 drop in cargo volume, the statement said.

'The operating environment facing the global aviation industry is expected to remain challenging for the rest of 2009,' Mr Hui said in a statement.

'We hope the relief measures will help airlines to better be able to maintain their flight schedules at HKIA in support of our efforts to maintain HKIA as a regional and international aviation centre.' -- AFP