Hong Kong, mainland China liberalize bilateral routes

Hong Kong, mainland China liberalize bilateral routes    Hong Kong and mainland China will increase air passenger and cargo capacity in October under a new, more liberalized air services arrangement.
   Under the bilateral agreement, the total weekly flights between Hong Kong and the mainland will grow to 1,600 from the current 1,200. Freight capacity will double to 84 weekly freighter services.
   The limit on the total number of airlines allowed to participate in the market will be lifted immediately, according to a statement by the Hong Kong Economic and Trade Office in New York.
   Under the new air pact, airlines will also be allowed to combine two points in mainland China in one service and enter into code-share arrangement on all routes between Hong Kong and mainland China. Airlines from mainland China will be allowed to expand their services to airports in third countries cities via Hong Kong.
   Hong Kong authorities believe this arrangement will strengthen the hub position of the Hong Kong International Airport.
   “In the face of increasing competition from airports in the region, the Hong Kong Special Administrative Region government must firmly and actively implement its progressive liberalization policy on air services,” said Stephen Ip, Hong Kong Secretary for Economic Development and Labor.
   Since the initial bilateral arrangement was signed in 2000, annual reviews were conducted to address market needs. “Compared to previous exercises, the latest review covered a much wider spectrum of issues and achieved substantial progress on various fronts,” according to the statement from the Hong Kong Economic and Trade Office.
   The current arrangement provides for a wide route network covering a total of 44 destinations in mainland China. Under the new arrangement, a new route to Lijiang, in southwest China, has been added, and services will start once customs, immigration and quarantine facilities are in place and technical conditions fulfilled.