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Speech by Director-General of Civil Aviation at the Meet-the-Media Session

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Following is the full text of the speech by Director-General of Civil Aviation, Mr Albert Lam at the Meet-the-Media Session today (February 28):

Introduction

Good afternoon, ladies and gentlemen. Thank you very much for attending this session on the review of the major work of the Civil Aviation Department (CAD) in 2001. I would also like to take this opportunity to highlight the plans of my Department this year.

2. 2001 was an exceptionally challenging year to the aviation industry. In Hong Kong, the labour dispute between the pilots of Cathay Pacific Airways Limited (CPA) and the company management caused some flight schedule disruptions and inconvenience to air passengers from July to October. In the USA, the September 11 attacks which used civil aircraft as a weapon resulted in the loss of many lives and had a global impact on air transportation. Not only did the event raise major security concerns, it also had adverse impact on the confidence of the public in air travel. On the other hand, airlines experienced a very tough year because of the worldwide economic downturn. However, with the passing of the worst time, it is expected that a resumption of growth in air traffic at the Hong Kong International Airport (HKIA) will occur in the second half of 2002.

Aviation Security

3. Stringent security measures had already been in place at HKIA before the occurrence of the September 11 incident. Following the tragic event, CAD requested the concerned parties to step up aviation security and help restore confidence in air travel.

4. In the last few months, my Department worked closely with the Airport Authority (AA), airlines, Tenant Restricted Area operators, the Aviation Security Company (AVESCO) and various government law enforcement agencies to implement increased security measures at HKIA, including secondary search of passengers and their carry-on bags, increasing vigilance, patrol and guarding, etc. Security Directives were issued to prohibit the carriage of knives or bladed items into the airport restricted area and the aircraft cabin.

5. Meanwhile, CAD liaised with foreign aviation authorities, the Federal Aviation Administration (FAA) of the USA in particular, to exchange security related information and help airlines to carry out additional security measures such as random physical searches of check-in baggage, passengers, their hand luggage and shoes at the boarding gates at HKIA as required by their respective authorities.

6. In October 2001, CAD mandated the locked cockpit door policy for CPA and Hong Kong Dragon Airlines Limited (HDA). Passenger access into the cockpit during flight has since been prohibited. Last month, CAD officials attended a Conference on Cockpit Security in Kuala Lumpur, Malaysia organised by the FAA. The FAA indicated that it was their expectation that all foreign carriers operating into the USA would comply with the FAA rules, which require two phases of implementation. The first phase, to be in place by mid-March 2002, mandates either the placing of a bar across the inside of the cockpit door, or bolts located on the inside of the cockpit door, and either system being controlled by the pilots. The second phase, to be in place by April 9, 2003, requires further reinforcement of the cockpit door. The two phases will require the development of various security procedures for flight deck access and additional procedures in the event of emergency evacuation. Subsequent to the meeting, CAD issued a new Flight Operations Notice which defined the latest FAA regulations regarding the strengthening and locking of the cockpit door on all passenger aircraft flying into the USA, and further mandated the CAD locked cockpit door procedures, including requiring the door locking mechanism to be secure to the extent that tempering with the lock or door handle from the passenger cabin does not unlock the door.

7. On February 19 and 20, a HKSAR team led by myself participated in a High-Level Ministerial Conference on Aviation Security convened by the International Civil Aviation Organization (ICAO) in Montreal, Canada as part of the People's Republic of China delegation. The objectives of the Conference were to prevent, combat and eradicate acts of terrorism involving civil aviation. As a result of the meeting, the responsibility of the Contracting States to provide aviation security for their territories was reaffirmed, and an ICAO plan of action for strengthening aviation security, including the establishment of a security audit programme was endorsed. The Conference adopted a financial and human resource plan for the purpose, identified resources for remedial action in Contracting States, and obtained specified commitments by governments, international organisations and industry to implement the programme. In addition, the Conference also reviewed the mechanisms for the identification and analysis of new, emerging and potential threats to civil aviation and examined the progress on strengthening both Annex 17 - Security - Safeguarding International Civil Aviation against Acts of Unlawful Interference to the Convention on International Civil Aviation and security-related provisions of other Annexes to the Convention.

8. CAD will continue to work with all parties concerned to ensure that the high standard of security at HKIA are maintained and if necessary, strengthened by implementing new ICAO requirements such as those relating to enhancement of quality control and certification of security screeners, participating in ICAO security related activities including the Aviation Security Panel and working group activities, as well as hosting a seminar on aviation security for the Asia Pacific Region in May. On behalf of the Asia Pacific Economic Cooperation (APEC), CAD will also conduct a survey and study on the region's security training requirements and capabilities as well as hosting a conference/workshop on the screening of passenger baggage.

Air Traffic at HKIA

9. Despite the weakening demand in air travel due to the global economic downturn and the impact of the September 11 incident, there was only a slight decrease in passenger throughput at HKIA in 2001. A total of 33.1 million passengers were handled at HKIA in 2001, a decrease of 0.9 per cent when compared with 2000. Air cargo, however, was more seriously affected by the slowdown in the trade environment. HKIA handled a total of 2.1 million tonnes of cargo in 2001, a drop of 7.4 per cent. The shrinkage was due mainly to the slowdown in economic growth in the USA and Europe and the economic contraction in Taiwan and Japan. Annual aircraft movements, however, amounted to 196,800, i.e. a 8.2 per cent increase despite the downturn in passenger and cargo traffic. This reflects the increasing use of smaller passenger aircraft at HKIA and the overall decrease in aircraft load factor. According to the preliminary traffic figures for 2001 released by ICAO, world passenger and freight traffic in terms of passenger-kilometres and tonne-kilometres decreased by 5 per cent and 8 per cent respectively. The performance of HKIA, therefore, still compares favourably with that of other airports in the world.

10. In 2001, HKIA was ranked number one in international air cargo, number five in international passengers (after London Heathrow, Paris Charles De-Gaulle, Frankfurt and Amsterdam), and number one in international network in Asia Pacific (serving some 130 destinations including about 40 points in the Mainland).

11. The runway capacity at HKIA was increased from 45 to 47 movements per hour in March 2001 to accommodate increased demand in traffic whilst maintaining the highest level of safety and efficiency.

12. With the accession of China into the World Trade Organisation, the anticipated recovery of the economy in the USA as well as the various development strategies implemented by the HKSARG and AA to enhance the competitive edge of HKIA, the outlook for the growth in aviation in Hong Kong remains positive. It is forecast that the resumption of growth in air traffic at HKIA will occur in the second half of 2002.

13. In line with the Government and AA's plan to develop HKIA into a major aviation hub, CAD will ensure that there will be adequate runway capacity available to meet traffic growth. Subject to traffic demand and a feasibility study, the runway capacity may be further increased to 50 movements per hour.

HKIA Operations

14. As CAD is the authority issuing Aerodrome Licence to AA to manage and operate HKIA, we continue close monitoring of the safety and security standards adopted by AA in respect of HKIA to ensure that all aerodrome licensing requirements are fully met.

15. On airport facilitation matters, CAD officials attended the Third ICAO Facilitation Panel Meeting held in Montreal, Canada in February 2001, and coordinated inputs in respect of compliance with the Standards and Recommended Practices of ICAO Annex 9. With increasing traffic at HKIA, it is essential that all facilitation matters at the airport be well coordinated. CAD will increase coordination and monitoring of airport facilitation matters for compliance with the Standards and Recommended Practices laid down in ICAO Annex 9, and in accordance with the Government policy.

Aircraft Operations and Maintenance

16. Hong Kong would not have been able to maintain its status as a major international and regional aviation centre without the long-standing support of the many international airlines serving Hong Kong. In the 2001/02 Winter Season (i.e from October 28, 2001 to March 30, 2002), four new scheduled passenger carriers commenced services at HKIA. They are Cebu Pacific Air (from November 22, 2001), Ethiopian Airlines (from January 1, 2002), Orient Thai Airlines (from February 1, 2002), and Finnair (from February 7, 2002). Some airlines also operate to new destinations, namely Addis Ababa (by Ethiopian Airlines), Helsinki (by Finnair), and Sapporo and Riyadh (by CPA).

17. Delivery of new aircraft, which requires certification by CAD's Flight Standards and Airworthiness Division, increased by 17 per cent last year as compared with the previous year. There were more than 20 new aircraft registered in Hong Kong in 2001, with 14 and five of them acquired by CPA and HDA respectively. This year, CPA will bring in two new A340-600 aircraft, while HDA plans to add five aircraft to its fleet - one A320, one A321, two A330s and one B747 freighter. The introduction of new aircraft and services reflects Hong Kong airlines' confidence in the economy.

18. A new operator, Jet Aviation Business Jets (HK) Limited, plans to use its Bombardier Global Express BD700 (long range business jet aircraft) for public transport operation later this year.

19. As prescribed by ICAO, aircraft registered in Hong Kong are regulated by Hong Kong CAD. This implies that aircraft registered in Hong Kong must be maintained by maintenance organisations approved by Hong Kong CAD. Likewise, other ICAO states apply similar ruling. Under a new scheme, with the mutual recognition of aircraft airworthiness and maintenance standards among civil aviation authorities, an aircraft component maintenance organisation when approved by one of the civil aviation authorities, will then be recognised by the other civil aviation authorities as an acceptable source for aircraft components to be installed on their registered aircraft without carrying out individual technical investigations and approvals. The scheme will be implemented as a pioneer project amongst CAD, the Civil Aviation Administration of China (CAAC), and the Civil Aviation Authority of Macao in May 2002. This mutual acceptance scheme will allow local air operators to have more flexibility in selecting their maintenance contractors which are located in the Mainland and Macao, without requiring the contractors to apply for direct approvals from CAD. Such acceptance will also enhance the overall safety, standard and efficiency in the region through international cooperation.

Helicopter Operations

20. CAD also continues to monitor the helicopter and other fixed-wing aircraft operations in Hong Kong. The Government Flying Service started its fleet replacement programme in the last quarter of 2001, while the local helicopter operators have plans to expand their fleet. A new helicopter operator, CR Airways Limited will start its operations by introducing one Sikorsky S76C+ helicopter.

21. The expansion of the Hong Kong aviation industry necessitates additional inspections and monitoring to ensure that the respective operations comply with the regulatory requirements in accordance with ICAO standards and recommended practices.

22. At present, Hong Kong offers both domestic helicopter services and cross-boundary helicopter flights to and from Macao. Domestic services are operated for a variety of purposes such as sightseeing, aerial survey, filming/photography, and maintenance/construction work, etc. In 2001, a total of 4,363 domestic flights were operated, averaging about 12 per day. As regards helicopter services between Hong Kong and Macao, 18,382 flights with a passenger throughput of 107,696 were recorded, representing increases of 5.4 per cent and 14 per cent respectively when compared with 2000. It is also worth to note that between 1995 and 2001, the number of helicopter passengers between Hong Kong and Macao increased from 37,469 to 107,696, a significant growth of some 187 per cent.

23. While the operation of helicopter services is a commercial decision, it is the Government's policy to facilitate the development of such services. Specific measures taken by CAD to assist the development of helicopter services include the provision of technical advice to helicopter operations especially on safety issues, and regular review of air traffic procedures to enhance the efficiency of helicopter operations.

24. Hong Kong's expanding economic and sociological ties with the Pearl River Delta Region will call for enhanced transport links. In this regard, helicopter services will play a role and further development of the services may require additional heliport facilities in the urban area. CAD therefore embarked on a consultancy study in April 2001 to assess the demand for helicopter services between Hong Kong and the Mainland/Macao, as well as the demand for domestic helicopter services; establish the need for new heliport facilities in the urban area and the corresponding economic costs and benefits; evaluate the shortlisted heliport sites and identify the best option for heliport development in the urban area; and formulate a comprehensive plan for the development, funding and future management of any new heliport.

25. The study is approaching the final stages and its findings will assist us in considering how to facilitate the development of helicopter services in future years.

Air Carriage of Dangerous Goods

26. In line with the new ICAO Annex 18 requirements for individual countries/administrations to provide dangerous goods (DG) information to passengers about the types of goods which are forbidden to be carried on board aircraft, CAD is now conducting a DG Awareness Programme to educate the travelling public. Starting off with the hosting of a DG seminar to strengthen airlines' knowledge in identifying and screening DG inside baggage in May 2001, we then produced information leaflets in the second half of last year. In January 2002, a video was produced and is now being shown by travel agents at the tourist group tea gatherings. The video will also be screened very soon at a display booth at the departure hall of HKIA to heighten the DG awareness of the travelling public. Commonly found DG items inside passenger baggage and the small amount of DG items which are exempted for the carriage by passengers will also be shown at the display booth.

Air Traffic Control Operations

27. Under the auspices of ICAO, the airspace and air route structure over the South China Sea was reorganised on November 1, 2001 with the objective of enhancing the efficiency and quality of ATC service in the region. A shorter new air route has been established between Hong Kong and Bangkok and the flying time between the two cities has been reduced by approximately 10 minutes. The transition to the new airspace structure was smooth and the operation of the revised air route system has been satisfactory.

28. As part of the initiative to further optimise airspace utilisation by reducing the vertical separation standard between suitably equipped aircraft flying at altitudes above 29,000 feet, Hong Kong will implement Reduced Vertical Separation Minima (RVSM) in October 2002. The new standard will enable more efficient aircraft operations, achieve better fuel economy and help to minimise ground delay. Sufficient training on the new procedures will be provided to air traffic controllers before the implementation of RVSM.

29. All ATC systems continue to function properly with equipment availability well exceeding our performance pledge of 99.9 per cent. With further experience gained in operating the systems, orders for the enhancement of six critical systems have been placed. The enhancement will expand the capacity and improve the operational efficiency of the systems. The ready for service dates range from May 2002 to March 2003.

30. The existing long range primary surveillance radar at Mount Parker has been used for more than 20 years and is approaching the end of its operational life. Tender for its replacement has been invited and contract award is expected in the first half of this year. Its ready for service date is around end 2003.

31. With close liaison and dedicated joint efforts by CAD, Office of the Telecommunications Authority and the Mainland counterparts, the extent of radio frequency interference (RFI) to aeronautical radio communications has been significantly reduced. Full cooperative effort will continue to be exerted with a view to early eradication of the RFI problem.

Satellite-based Communications, Navigation and Surveillance/Air Traffic Management (CNS/ATM) Systems

32. To comply with the Global Implementation Plan of ICAO for the CNS/ATM Systems, CAD has obtained funding for the Study and Trial Phases of the project during periods 1999-2004 and 2000-2007 respectively. So far, work has progressed in a satisfactory manner. Trials have been conducted for Automatic Dependent Surveillance (ADS), Controller-Pilot Data Link Communications (CPDLC), Satellite Communications (Satcom), Aeronautical Telecommunication Network (ATN), Digital-Automatic Terminal Information Services (D-ATIS) and Digital-Meteorological Information for Aircraft in Flight (D-VOLMET), Pre-Departure Clearance (PDC) Delivery via Data Link, etc. Encouraging results and favourable feedback from pilots and airlines have been received.

33. D-ATIS and D-VOLMET was put into operational use in April 2001, while PDC Delivery via Data Link was put into use in December 2001. Instead of delivering the information by voice broadcast, these services allow direct display/printout of relevant airfield and weather information as well as ATC instructions in the cockpit via data transmission, and hence help reduce the workload of controllers and pilots, as well as enhance data accuracy. Hong Kong is one of the leading ATC authorities in the world offering such services. This helps to maintain Hong Kong as a centre of international and regional aviation.

34. Additional trials on Aeronautical Telecommunication Network (ATN), Surface Movement Guidance and Control System (SMGCS), Electronic Flight Strips (EFS), Secondary Surveillance Radar Mode S Data Link and Very High Frequency Data Link (VDL) are planned for this year.

Conclusion

35. As in the past, CAD is committed to a safe and efficient air transport system. We are glad to see that Hong Kong-registered aircraft and airline operators continue to achieve a good safety record despite the expansion in services. All my staff are dedicated to serving the aviation community and the related businesses in Hong Kong. We will continue to endeavour to ensure our vision is achieved, and spare no efforts in maintaining Hong Kong's status as a leading international and regional aviation centre.

36. Thank you very much. I and my deputy, Mr Alex Au, are happy to answer any questions you may have.

End/Thursday, February 28, 2002

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