Acting under specific authorisations from the Central People's Government, the Hong Kong Special Administrative Region Government may:
renew or amend Air Service Agreements and arrangements previously in force; in principle, all such Agreements and arrangements may be renewed or amended with the rights contained in such previous Agreements and arrangements being as far as possible maintained;
negotiate and conclude new Air Service Agreements providing routes for airlines incorporated and having their principal place of business in the Hong Kong Special Administrative Region and rights for overflights and technical stops; and
negotiate and conclude provisional arrangements where no Air Service Agreement with a foreign state or other region is in force.
All scheduled air services to, from or through the Hong Kong Special Administrative Region which do not operate to, from or through the mainland of China shall be regulated by Air Service Agreements or provisional arrangements referred to in this paragraph.
The Central People's Government shall give the Hong Kong Special Administrative Region Government the authority to:
negotiate and conclude with other authorities all arrangements concerning the implementation of the above Air Service Agreements and provisional arrangements;
issue licences to airlines incorporated and having their principal place of business in the Hong Kong Special Administrative Region;
designate such airlines under the above Air Service Agreements and provisional arrangements; and
issue permits to foreign airlines for services other than those to, from or through the mainland of China.