The Economic Development & Labour Bureau plans to develop a new Civil Aviation Department Headquarters at Chek Lap Kok. The $3.16-billion project will be completed by 2012.
In a Legislative Council paper today, the bureau said the department's headquarters and five functional divisions are currently scattered in four different locations.
The new headquarters will be located on a site at the southeastern part of the island, to the north of Dragonair Tower.
Housing the whole department and the updated air traffic control system, the new headquarters will enhance productivity through speedy service provision and effective regulation of the aviation community.
Details of the building project will be tabled to lawmakers in the fourth quarter.
On manpower deployment, the bureau proposed to form a dedicated team, headed by an Assistant Director-General of Civil Aviation, to ensure the project's timely completion and the new air traffic control system's smooth commissioning. The posts will be created in 2007-09.
The bureau also suggested an air traffic management standards office be formed to oversee the safety of air traffic control operations. It will be led by a chief air traffic control officer, supported by two air traffic control officers. The posts will be created in this year's third quarter.
Under the "user-pays" principle, the amortised project cost and the recurrent cost for providing air traffic control services will be recovered through the air traffic control service charges collected from the Airport Authority and en-route navigation charges collected directly from airlines by the Government.
The total air traffic control service charges collected from the authority are estimated to rise from the existing level of $638 million to $845 million in 2013. However, since the number of flights using the airport is expected to rise from 140,000 to 176,000 during the same period, it is likely that the cost per flight will only see a mild increase of less than $300, or about 6% of the existing figure.
The en-route navigation charge, currently at $4.80 per nautical mile, will not see any significant change arising from the project when the increased costs are expected to be cancelled out by the increased traffic.
The proposal to update the air traffic control system will ensure the continued provision of safe and reliable services in line with traffic growth. The estimated additional cost transferred to the industry is not significant.
Consequential to increased flights permitted by the proposal, the growth in value added of air transport activities will reach $16.2 billion a year in current market prices by 2020. In addition, there will be indirect positive impact on the trading, logistics and tourism sectors.