HONG KONG
-
CHINA AIR SERVICES
ESSENTIAL FACTS
1. At present, the General Administration of Civil Aviation of
China (CAAC) have a near monopoly of air services operating some 50
scheduled services a week and numerous charter services to Hong Kong
from Peking, Shanghai, Canton, Tianjin, Kunming and Hangchou. They
also operate one weekly service between Peking and London via Sharjah and Frankfurt. British Airways (BA)'s weekly London-Peking
service operate via Hong Kong but without traffic rights between
Hong Kong and Peking. Cathay Pacific Airways (CPA also a British
airline) operate two services a week between Hong Kong and Shanghai.
2.
Since
Unsatisfactory situation arises from terms of Confidential
Memorandum of Understanding (CMU) signed in July 1979.
Chinese not prepared to have Hong Kong treated as point in UK
territory in UK-China Air Services Agreement, air services between
Hong Kong and China depend entirely on CMU and later amendments. Despite its unsatisfactory provisions in air services terms we have,
on advice of Governor of Hong Kong, not been prepared to risk possible wider consequences of terminating CMU.
3.
Main provisions of CMU are:
(a) Uk and China may each designate an airline to operate services
between Hong Kong and Shanghai: Chinese airline operating two
thirds and UK airline one-third of capacity on route. UK airline must be based in Hong Kong and must not operate services between Hong Kong and London as well (because, Chinese
argue, this would give UK second trunk route between China and
UK).
(b) As long as BA routes London-Peking service via Hong Kong,
Chinese airline may operate five services per week from Peking
to Hong Kong but there are no traffic rights for any UK airline
between Hong Kong and Peking. When BA ceases to route London-Peking sevice via Hong Kong, UK may designate same
No comments yet.
Private notes are available after approval.