China-Hong Kong restrictions eased
More airlines are to be approved for flights between major cities in China and its Special Administrative Region of Hong Kong, following a further liberalisation of their previously restrictive air services regime.
Under the new arrangements, from the end of March capacity restrictions will be eliminated for passenger services on 14 additional routes, increasing to 49 the number of routes without restrictions. In addition, there will be a full liberalisation of all-cargo services from the start of the winter 2008 season.
For those that will still have restrictions over them, specifically Beijing, Chengdu, Dalian, Guangzhou, Kunming, Shenzhen and Shanghai, each side will be able to designate three airlines for passenger services and two for all-cargo services. This will increase to four for passenger services and three for all-cargo services from the end of October.
Passenger capacity allowances will also be "increased moderately" for Beijing, Chengdu, Dalian, Guangzhou, Kunming, Shanghai and Shenzhen. "The new arrangement will fully meet the needs of airlines of both sides," says the Hong Kong government.
Smaller airlines such as Hong Kong Express welcomed the new agreement, saying it will enable it to launch services to Beijing and Shanghai, complementing its operations to secondary cities. There are currently around 780 passenger flights and 60 freighter flights in each direction between Hong Kong International Airport and 42 Chinese destinations each week and demand has been growing rapidly.
Hong Kong has separately reached a breakthrough deal with India to allow for many more services, ending years of deadlock. The new agreement more than doubles frequency allowances between Hong Kong and both Delhi and Mumbai. In addition, new services will be allowed between Hong Kong and both Bangalore and Chennai, as well as flights beyond each side.
Cathay Pacific Airways quickly announced plans to launch new services to Chennai and significantly increase its Delhi and Mumbai services, while Dragonair announced plans to launch Bangalore services.
Source: Airline Business
