(a)
(b)
53
the progress of negotiation for the renewal of the air services agreement between the territory and Taiwan which will expire at the end of April this year, and whether any discussion has been held regarding the extension of the agreement beyond 1997; and
the implications on the local economy as well as the benefits to consumers resulting from Taiwan's proposed plan to designate air transportation services as "authorised enterprise", which will enable such enterprises, irrespective of whether Chinese-held shares of these enterprises exceed 20%, to invest in Taiwan as long as they are registered in the territory, thus providing airlines registered locally not yet operating Taiwan flights with the opportunity to join the competition?
Answer:
(a)
(b)
Air services between Hong Kong and Taiwan are conducted under the terms of an inter- airline agreement between CPA & CAL. The current agreement expires on 29 April 1995 and discussions on this renewal are underway between the two airlines. The Hong Kong Government has no involvement in these discussions.
The Hong Kong/Taiwan route is already well- served, with Cathay Pacific Airways and China Airlines operating close to 200 frequencies per week and five other airlines providing about 25 services per week. We have no indication that other Hong Kong airlines are interested in serving this route. An assessment of the impact on the market of such an operation would in any case depend on a number of variables, e.g. the operator concerned, frequency of services, quality of services, destinations, etc.
End/Wednesday, March 1, 1995
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