Mailand, HK sign accord to open aviation markets
(Reuters)
Updated: 2006-07-04 06:45 HONG KONG, July 3 -
Chinese mainland and Hong Kong signed a new arrangement on Monday to
liberalise their aviation markets and lay down a clear timetable for further
opening them, the Hong Kong government said.
Eleven routes will be
added, extending coverage to all major cities and adding to the 45 routes
already linking Hong Kong with the mainland.
Both Cathay Pacific Airways Ltd. and Hong Kong Dragon Airlines Ltd., the
city's two main airlines, welcomed the move and said further liberalisation
would provide them with greater growth potential in the mainland market.
Cathay has applied to the Hong Kong government to request the re-launch of
passenger flights to Shanghai, additional services to Beijing and increased
all-cargo operations to the mainland, tentatively in the fourth quarter of this
year, it said after the new arrangement was announced.
Last month, Cathay Pacific announced a US$1.05 billion buyout of smaller
river Hongkong Dragonair to expand its access to the fast-growing mainland China
aviation market.
The Hong Kong government also said that starting from winter 2007, each side
could designate three airlines to operate passenger and/or cargo flights and
another airline to operate all-cargo flights on most of the routes, allowing
both Hong Kong and mainland airlines to pursue their expansion plans.
Capacity constraints on routes will be relaxed with the capacity limits for
passenger services on 35 routes to be completely lifted in two phases between
winter 2006 and summer 2007, and capacity for the remaining routes will be
increased, the government added.
The government also said the cargo capacity limits for Beijing and Shanghai
would be raised, while the limits for other routes would be removed by summer
2007.
Stephen Ip, Hong Kong's secretary for Economic Development and Labour, said
the new arrangement would strengthen the aviation links between Hong Kong and
the mainland and would enhance competitiveness of Hong Kong International
Airport as an international and regional aviation centre.
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