What's behind Hong Kong International Airport's expansion delays?

Hong Kong's mega billions airport expansion, initially planned to finish by the end of 2024, is reportedly facing delays.

What's behind Hong Kong International Airport's expansion delays?
Source: REUTERS/Bobby Yip

The backstory: In 2016, Hong Kong International Airport kicked off a big upgrade known as the Three-runway System (3RS) to make things more efficient. The project, costing around HK$141.5 billion (around US$18.1 billion), involves adding a new runway, creating a new travel zone and making extra taxiways. When it's all done, the airport aims to handle over 100 million passengers every year. 

Before COVID, Hong Kong's airport was a big deal, ranking third globally for international passengers and adding US$33 billion each year, around 10% of Hong Kong's GDP, according to the International Air Transport Association in 2018. But then, COVID happened, bringing restrictions and leading to airline staff cuts. Unlike Singapore and Japan, Hong Kong took it slower to ease those tough rules, like waiting until 2022 to lift hotel quarantine for new arrivals. Even now, the number of passengers coming through each month is still 25% less than before the pandemic.

More recently: Hong Kong airport has also been grappling with a staff shortage, which is especially affecting the Hong Kong-based airline Cathay Pacific. For instance, the airline is reducing about 12 flights every day until the end of February. In response, Hong Kong's leader, John Lee, said the government is actively working with Cathay Pacific's management to make things easier for passengers.

The development: Hong Kong's mega billions airport expansion, initially planned to finish by the end of 2024, is reportedly facing delays. Insider info reported by Bloomberg suggests the project won't be done until at least the end of 2025. Part of the second terminal won't be ready for another year, and the second passenger concourse is now expected in 2026. Now, about the runways. Those in the know said all three won't be fully ready until mid-2025 due to ongoing upgrades on one of the middle runways.

Despite this, the Airport Authority Hong Kong has assured that progress is steady. The goal? To complete the three-runway project by 2024, passenger facilities will be introduced gradually as part of the post-COVID recovery, according to its response to Bloomberg. The Transport and Logistics Bureau also backs this up in a statement, saying that the remaining works are on schedule. 

Key comments: 

"It is a clear target of AAHK to complete all the building and infrastructure works of the 3RS and put all three runways into operation within 2024. The AAHK will open relevant passenger facilities progressively in the light of passenger traffic demand," said the Transport and Logistics Bureau in a press release. 

"These measures have led to cancellations and chronic staff shortages which undermine Hong Kong's position as a global hub," said The Hong Kong Aircrew Officers Association, referring to Cathay Pacific's staffing issue