The world's most profitable airport, Hong Kong International Airport, is set to introduce a new charge for putting luggage onto the carousel.
The world's most profitable airport, Hong Kong International Airport, is set to introduce a new charge for each piece of baggage coming from planes onto conveyor belts.
It's projected that it would cost passenger airlines an additional HK$40 million (S$6.97 million) per year. This can potentially increase the cost of flights to the airport.
Sources say that starting July 6, the Airport Authority, operator of the HK International Airport, will be charging them HKD$1.32 (S$0.23) per bag placed on the conveyor belt.
Currently, airlines use ground handling companies in order to place the baggage from the plane onto carts, and then onto the conveyor belts in the baggage claim.
This means that airlines who have a contract with a ground handling company could potentially face two baggage costs. One for the ground handling, and another from the Airport Authority.
The change comes as the authority has decided to outsource the role of moving the bags to workers. They will then pass the cost on to the ground handling companies. The ground handling companies would in turn, pass this onto the airlines.
One source shares, "Most airlines are resisting. The authority said they consulted with airlines but it was all heavy-handed. Initially they were going to [make this change] at no cost but a few months before implementation, they said it would cost HK$1.32 per bag."
The charge might seem small, but it can quickly add up. In 2017 alone, 73 million passengers passed through the airport.
The increase in fees could potentially be passed on to passengers by the airlines. This means that flights going to Hong Kong can potentially be more expensive as a result.
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