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Following is a question by the Hon Fred Li and a written reply by the Secretary for Economic Services, Ms Sandra Lee, in the Legislative Council today (July 4):

Question:

Will the Government inform this Council of the respective countries or territories with which it has concluded Air Services Agreements involving fifth freedom traffic rights (i.e. rights of the airlines of one party to carry traffic between the territory of the second party and the territory of a third party whilst operating from or to the territory of the first party) in each year since January 1999 and, for each Agreement, state whether it is about passenger or cargo services?

Reply:

Madam President,

From January 1999 to the end of June 2001, the Government of the Hong Kong Special Administrative Region (HKSARG) has renewed bilateral arrangements with 16 aviation partners to expand and provide new fifth freedom traffic rights for airlines of both sides. Of the above bilateral arrangements, five provide for passenger services, five for cargo services and six for both passenger and cargo services in respect of additional fifth freedom rights. The number of renewals per year is as follows:

Year No. of partners

1999 3*

2000 8 + 1*

2001 (until the end of June) 5

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Net Total 16

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* Fifth freedom rights in the bilateral arrangement with one of the partners were expanded in both 1999 and 2000.

If the new and expanded fifth freedom rights in the above arrangements are fully utilised, it would enable airlines of both sides to provide together on a weekly basis more than 100 passenger services, 70 cargo services, and 50 passenger/cargo services to and from a large number of destinations in the world, including points in Asia, the Middle East, Europe, North America and Australia and New Zealand.

As regards details of each of the arrangements with our aviation partners, especially in relation to destinations and capacity, they are generally set out in a confidential memorandum of understanding between Hong Kong and the aviation partner. The relevant document contains confidential government-to-government negotiation records and sensitive commercial information. The HKSARG follows international practice of not disclosing the substance of the arrangement.

In Hong Kong's overall economic interests and for the further development of Hong Kong as an international and regional aviation centre, we will continue to implement a policy of progressive liberalization of our air services. We will continue to exchange and expand traffic rights (including fifth freedom rights) with our aviation partners on a fair, equitable and mutually beneficial basis.

End/Wednesday, July 4, 2001

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