Hong Kong and Iceland sign air services agreement

The first formal bilateral agreement between Hong Kong and Iceland was signed in Reykjavik today (August 9).

The Air Services Agreement will provide a legal framework for the establishment of scheduled air links between the two destinations.

Speaking at the signing ceremony, the Secretary for Economic Development and Labour, Mr Stephen Ip, said it marked a milestone in bilateral relations between Hong Kong and Iceland.

"It opens a new chapter in the development of aviation relations, as the air services market between Hong Kong and Iceland has good potential," Mr Ip said.

"Among the 6.8 million Hong Kong residents, many are frequent travellers who are keen to explore new and exotic places around the world. Iceland certainly presents an attractive choice for Hong Kong people to experience its culture, friendly people and pollution-free environment," he said.

The agreement allows Hong Kong's and Iceland's airlines to operate as many passenger and cargo flights between the two places as they wish.

Mr Ip said that since the opening of the Hong Kong International Airport in 1998, the Hong Kong Government had implemented a policy of progressive liberalisation of its air services regime to enhance Hong Kong's position as an international and regional aviation centre.

Each week, some 70 international airlines operate more than 4,500 flights into and out of Hong Kong to a network of more than 140 destinations.

"To further develop Hong Kong as a preferred transportation and logistics hub, we will continue to liberalise our air services regime and negotiate more new air services agreements with our aviation partners," Mr Ip said.

Representing the Republic of Iceland at today's ceremony was the Minister for the Environment and Nordic Co-operation, Ms Siv Fridleifsdottir.

Hong Kong has now signed 53 Air Services Agreements with foreign aviation partners.

Ends/Monday, August 9, 2004