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AirAsia prepares for debut in Hong Kong

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Facing tough competition from regional rivals, Hong Kong's airport is now more eager to attract low-cost carriers.

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AirAsia will launch its first flight to Hong Kong as early as December from three cities in Southeast Asia after the Malaysian-based carrier scrapped plans to enter Hong Kong in 2005 because of high landing charges.

'We have been contemplating the plan [to come to Hong Kong] for six years,' AirAsia Group chief executive Tony Fernandes said yesterday.

Two years ago, instead of Hong Kong, AirAsia chose Macau as its first entry point into Greater China and later flew to Shenzhen. The airline, one of the most profitable low-cost carriers in the world, operates nine daily flights to Macau and two daily flights to Shenzhen, which will soon increase to four daily flights.

Saying he was rebuffed by past aviation officials in Hong Kong, Mr Fernandes said he found himself in a better position this time.

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'Stanley Hui Hon-chung , the chief executive of the Airport Authority, makes a big difference. He is down to earth and approachable,' Mr Fernandes said. 'Together with John Tsang Chun-wah, the financial secretary, who welcomes low-cost carriers, we think it is the best time to enter Hong Kong.'

Mr Fernandes said Hong Kong had offered an incentive package to bring flights to the city. He would not elaborate, other than saying they were not as generous as incentives given by Macau.

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