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(Bloomberg) — Air passengers from so-called Group A, or designated high-risk nations, are set to be banned from transiting by way of Hong Kong Worldwide Airport, in line with individuals conversant in the matter, one other transfer within the monetary hub’s aggressive effort to defend itself from omicron.
Airport officers just lately briefed carriers in regards to the plan, the individuals stated, asking to not be recognized as a result of the small print aren’t but public. The suspension will begin on Jan. 15 and run by way of Feb. 14, although the top date shall be topic to assessment, one of many individuals stated. Procedures for the way the ban will function are nonetheless to be laid out, one other individual stated.
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Whereas visitors volumes are skinny now as a result of pandemic, the transfer is more likely to disproportionately have an effect on Cathay Pacific Airways Ltd., town’s flagship service that handles the overwhelming majority of passenger transfers. Previous to Covid, Hong Kong was a busy hub for transits from mainland China, Taiwan and a number of other different areas within the area, in addition to lengthy hauls such because the U.S. and U.Okay.
Hong Kong is grappling with a comparatively small outbreak of the omicron variant in the neighborhood, imposing recent curbs on a broad vary of actions because it strives to stay to a zero-tolerance Covid technique. The federal government stated Tuesday that in-person courses at kindergartens and first colleges can be suspended from Friday till after the Lunar New 12 months holidays subsequent month.
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There are round 150 nations and territories in Hong Kong’s Group A listing, together with the eight nations which have particular route flight bans in place on account of Covid instances on board. These eight are Australia, Canada, France, India, the Philippines, Pakistan, the U.Okay. and the U.S.
“Cathay Pacific’s money burn could improve in 1Q as its capability is lower additional on account of Hong Kong’s border restrictions. However it could have enough liquidity to face up to this, with HK$7.8 billion in authorities loans nonetheless undrawn.”
Sharon Chen, BI credit score analyst
Hong Kong prohibited all passenger airport transfers in March 2020, within the early days of the pandemic, however step by step resumed them within the subsequent months, aside from into mainland China. Whereas journey restrictions have severely restricted visitors all through the Covid disaster, Cathay had stated it was experiencing wholesome demand on transit flights.
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The suspension on passenger switch companies received’t apply to diplomats, authorities officers and athletes and employees taking part within the Winter Olympics in Beijing, in line with the individuals. The 2022 Winter Olympics begin on Feb. 4.
“We’re in shut communication with the airport group on measures to strengthen an infection management on the airport,” Airport Authority Hong Kong stated in an emailed assertion.
Nations within the Group A bloc embody historically common Hong Kong transit routes, together with Singapore, Australia and a raft of European nations.
©2022 Bloomberg L.P.
Bloomberg.com
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