HONG KONG AP Hong Kong needs to cut fees at its new airport to maintain the territory's position as a regional air hub after business rival Singapore slashed airport landing fees last week the chairman of Hong Kong's flag carrier said Tuesday. The request came a day after leading aircraft maintenance company Hong Kong Aircraft Engineering sacked 352 employees or 8 percent of its staff citing soaring operation costs at the newly opened Cheek Lap Kok airport. Speaking at a business gathering Peter Sutch chairman of Cathay Pacific Airways and Swire Pacific Ltd. said Hong Kong risks losing its competitiveness unless the government and Airport Authority cut fees even though it still has an important edge in terms of its geographic location. ``Unless we get our cost base right we'll lose our position to other hubs in the region'' Sutch said. Singapore's Civil Aviation Authority on Friday said it will cut aircraft landing fees at Changi Airport by 10 percent for a year beginning Jan. 1 as part of the government's package to reduce the cost of doing business in the city-state. By bringing the fees to about the level in 1981 when the airport was first opened airlines will be able to save about dlrs 11 million the authority said. Hong Kong's Airport Authority created a furor last year when it set landing and usage fees at Hong Kong's new airport which opened in early July at levels well above those at the old Kai Tak Airport. It later lowered the fees but they remain higher than those that had been charged at Kai Tak. The aircraft maintenance company said Monday it needed to cut staff partly due to the extra costs of 50 million Hong Kong dollars U.S. dlrs 6.4 million in rent at the new airport and 15 million Hong Kong dollars U.S. dlrs 1.9 million in royalties paid to the Airport Authority the South China Morning Post reported. ``We're not blaming the Airport Authority the issue of charges at Chek Lap Kok is ongoing. It's certainly one of the most expensive airports to operate from in the world'' commercial director John Paterson was quoted as saying. Swire Pacific has the controlling stake in both Cathay Pacific and the maintenance company. APW19981201.1414.txt.body.html APW19981201.1252.txt.body.html