The Airport Authority has posted its first operating profit from Chek Lap Kok airport after making a significant adjustment to its depreciation policy.
It reported an operating profit of HK$291 million for the year to March 31, after a change in depreciation policy saved it HK$538 million in depreciation charges.
The authority booked an operating loss of HK$36 million in the previous accounting period, from the airport's opening in July 1998 to March last year.
Spokesman Chris Donnolley defended the move, saying the previous policy of depreciating its land and other fixed assets over 50 years would have meant a tremendous burden on profitability in the years ahead.
'We have close to HK$50 billion in fixed assets,' Mr Donnolley said.
'Depreciation at 40 per cent of revenues is a pretty big charge.' Under the new policy, the authority will write off its land over 100 years instead, or 1 per cent per annum, and write off its runways, the airfield, passenger terminal and other buildings over 75 years.