Hong Kong/Australia call a truce

AUSTRALIA AND Hong Kong have called a truce in their dispute over Qantas' fifth-freedom rights beyond Hong Kong to Singapore and Bangkok.

The two Governments have now taken the unusual step of agreeing to scrap their air-services agreement ahead of its expiry date, assenting to a six-month truce on proposed mutual sanctions, during which they plan to negotiate a new memorandum of understanding.

At the same time, both Governments agreed to drop proposed mutual sanctions, and Qantas and Cathay Pacific withdrew from their court challenges to the respective Government decisions (Flight International, 28 June- 4 July).

Source: Flight International