Hong Kong and Australia reach new deal on air services

Air services between Hong Kong and Australia are to be substantially liberalised under a new bilateral air services agreement reached today (April 15).

The new arrangement provides for a completely open regime for air services between Hong Kong and all regional points in Australia, such as Adelaide and Cairns. It also provides for a 100% increase over two years in the capacity for services between Hong Kong and the four Australian gateway cities -- Sydney, Melbourne, Brisbane and Perth.

"The much expanded capacity will enable an additional Hong Kong carrier to launch services to Australia. This will enhance competition on this popular route, and the travelling public will certainly benefit from the deal," said the Deputy Secretary for Economic Development and Labour, Mr Wilson Fung.

"Australia is an important aviation partner for Hong Kong. The liberal arrangement we have just concluded provides enormous opportunities for airlines of both sides to expand their services on a route that is extremely popular to both the people of Hong Kong and Australia," he said.

The Hong Kong government has also designated Dragonair as the third Hong Kong airline to operate services between the two destinations.

The new arrangement also includes a comprehensive code-share facility for airlines to co-operate with their aviation partners, which will enhance their marketing capability and offer better connected services for the travelling public.

In addition, it will facilitate Australian carriers to establish their hub in Hong Kong for their traffic to and from Europe.

"This is an important step for Hong Kong to compete with other regional hubs to attract more traffic to hub through Hong Kong on the Kangaroo Route; and will further strengthen its position as an aviation hub in the region," Mr Fung said.

Ends/Thursday, April 15, 2004