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The General Administration of Civil Aviation of China and the Transport and Housing Bureau of the Hong Kong Special Administrative Region have completed the latest round of consultations on the Mainland/Hong Kong Special Administrative Region Air Services Arrangement, and have decided to further liberalise the aviation market between Hong Kong and the Mainland by signing a new memorandum of understanding.
Warmly welcoming the outcome of the consultations, Ms Eva Cheng, Secretary for Transport and Housing, said today (December 27), "The new memorandum of understanding will further strengthen the aviation link between the Mainland and Hong Kong as more airlines can be designated to operate services. The new arrangement is significant as capacity restrictions are further eliminated, achieving full liberalisation for all-cargo services with effect from winter/spring 2008/09 (i.e. end October 2008).
"The new memorandum of understanding will also enhance the competitiveness of the Hong Kong International Airport and strengthen the status of Hong Kong as an international and regional aviation hub."
On operating rights on individual routes, starting from summer/autumn 2008 (i.e. end March 2008), there will not be any restriction on the number of designated airlines on most of the routes. As for the Beijing, Shanghai, Guangzhou, Shenzhen, Kunming, Dalian and Chengdu routes, each side may designate three airlines to operate passenger/all-cargo services and two other airlines for all-cargo services with effect from summer/autumn 2008. With effect from winter/spring 2008/09, the designations will increase to four airlines to operate passenger/all-cargo services and three other airlines for all-cargo services. The new arrangement will fully meet the needs of airlines of both sides.
As regards capacity, the two sides decided to further eliminate capacity restrictions. For passenger services, the frequency limit for 14 routes will be lifted starting from summer/autumn 2008, such that airlines of both sides can operate without any capacity restriction on a total of 49 routes. As for the Beijing, Shanghai, Guangzhou, Shenzhen, Kunming, Dalian and Chengdu routes, the capacity will be increased moderately.
For all-cargo services, the present capacity limit, which only applies to the Beijing and Shanghai routes, will be completely lifted starting from winter/spring 2008/09, achieving full liberalisation for all-cargo services.
Ends/Thursday, December 27, 2007
Issued at HKT 16:55
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