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The Economic Development and Labour Bureau and the General Administration of Civil Aviation of China have concluded their annual review of the Mainland/Hong Kong Special Administrative Region (HKSAR) Air Services Arrangement and signed a new arrangement which substantially liberalises the aviation market between HK and the Mainland.
The Secretary for Economic Development and Labour, Mr Stephen Ip, said today (July 3) the new arrangement would not only strengthen the aviation links between Hong Kong and the Mainland, it will also enhance the competitiveness of Hong Kong International Airport and strengthen Hong Kong's status as an international and regional aviation centre.
The review has laid down a clear timetable for opening the aviation market. Starting from winter 2007, each side can designate three airlines to operate passenger and/or cargo flights and another airline to operate all-cargo flights on most of the routes, which will be sufficient to allow both HK and Mainland airlines to implement their respective expansion plans.
The arrangement currently covers 45 routes between Hong Kong and the Mainland. The new arrangement will add another 11 routes, extending coverage to all major cities on the Mainland.
Capacity constraints on most routes will also be relaxed. Between winter 2006 and summer 2007, the capacity limits for passenger services on 35 routes will be lifted completely in two phases. Capacity for the remaining routes will be substantially increased.
The cargo capacity limits for Beijing and Shanghai will be substantially increased, while the limits for all other routes will be completely removed by summer 2007.
Ends/Monday, July 3, 2006
Issued at HKT 16:30
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