17^th TRANSPORTATION WORKING GROUP MEETING
Singapore 27-31 March 2000 

TPT/WG/17/SC …

 Steering Committee on More Competitive Transportation Industry
(including Infrastructure)
 Report on Air Services
HONG KONG, CHINA
 REPORT BY HONG KONG, CHINA
TO THE STEERING COMMITTEE

ON MORE COMPETITIVE TRANSPORTATION INDUSTRY
(INCLUDING INFRASTRUCTURE) ON IMPLEMENTATION OF

AIR SERVICES GROUP RECOMMENDATIONS

Introduction

At the 7^th APEC Economic Leaders Meeting in New Zealand in September 1999, Leaders expressed support for the implementation of the eight steps for more competitive air services. These steps, which had been developed by the APEC Air Services Group (ASG), were endorsed by the Steering Committee on More Competitive Transportation Industry during the APEC 13^th Transportation Working Group Meeting in Mexico in April 1998. The Committee also recommended that Member Economies provide progress reports on implementation on a voluntary basis.

This report describes the progress made by Hong Kong, China (HKC) in implementing the eight steps for more competitive air services.

Substantial ownership and effective control by the government or nationals of HKC’s partner are the designation criteria that have been adopted in most of HKC’s bilateral air services agreements (ASAs). In a few other ASAs, incorporation and principal place of business are the designation criteria that have been adopted.

A double approval regime for tariffs is currently adopted in HKC’s bilateral ASAs. HKC supports the removal or progressive easing of tariff regulations under bilateral ASAs to promote competitive pricing. For this purpose, HKC is considering relevant measures such as the adoption of a double disapproval regime.

3. Doing Business Matters

HKC adopts a non-discriminatory and liberal approach to "doing business" matters, including all the five areas that have been referred to by the ASG.

HKC implements a liberal policy for air cargo services. HKC has included, where appropriate, provisions in bilateral arrangements for additional flexibility and capacity for airlines to operate all-cargo services in addition to passenger services. These provisions are reviewed from time to time to facilitate service expansion and promote competition.

HKC adopts multiple airline designation in bilateral ASAs and has multiple designation in all its ASAs with APEC economies.

HKC adopts a liberal approach to facilitate the operation of ad hoc charter services. Applications for such services are considered positively, having regard to the principle of reciprocity.

HKC adopts a liberal approach towards airlines’ cooperative arrangements and would not normally be involved unless they have implications for bilateral ASAs. Where airlines’ cooperative arrangements have such implications, as in the case of code-sharing, we would consider applications on a case-by-case basis, having regard to factors such as impact on competition, benefits to consumers and airlines and the provision of reciprocity.

HKC adopts an approach of progressive liberalization of air services under the bilateral regime. On an ongoing basis, HKC seeks to negotiate more air services agreements with new aviation partners to develop new air links. HKC also reviews from time to time its bilateral air services arrangements with existing aviation partners to facilitate the expansion of services and promote competition.

Hong Kong, China
March 2000

This page was last updated on 12 March, 2008