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Hong Kong, China agree to lift flight restrictions
LIBERALIZATION:
The two sides will ink an agreement that will increase the number of air routes, in a deal that is likely to give Cathay the lucrative route to Shanghai
AFP AND BLOOMBERG
Tuesday, Jul 04, 2006, Page 11
Hong Kong and China will sign an aviation liberalization pact that will see more routes open between the two and a relaxation of limits on passenger and cargo, a government statement said yesterday.
The move has been welcomed by Hong Kong's flag carrier Cathay Pacific, which is expected to win rights to fly the coveted Hong Kong-Shanghai route it was forced to relinquish 16 years ago.
A joint statement from the Economic Development and Labor Bureau in Hong Kong and the General Administration of Civil Aviation of China said talks on renewing the pair's Air Service Arrangement had been concluded.
The new pact will allow Hong Kong airlines to fly to 11 more destinations, including Lhasa in Tibet, bringing the total number to 56, Wilson Fung, Hong Kong's deputy secretary for economic development and labor, told reporters in Hong Kong yesterday. Starting October next year, Hong Kong and China will each be able to have up to four airlines, including at least one all-cargo carrier, serving 49 of the 56 destinations, Fung said. Seven destinations will have lower limits because of airport capacity constraints, Fung said, without adding further details.
The two sides also agreed to scrap passenger capacity restrictions on 35 of the routes by March next year. Capacity on the remaining 21 routes, including Shanghai and Beijing, will be increased by an average of 40 percent. Hong Kong economic development secretary Stephen Ip (葉澍) hailed the deal as a boost for the city.
"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 center," he said in the statement.
Under the terms of the pact, from winter next year each side will be able to designate three airlines to operate passenger and cargo flights between Hong Kong and Chinese cities. Another airline will be able to operate all-cargo flights.
It will also see the expansion of the arrangement, which presently covers 45 routes, to a further 11.
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