ENG-2007 — Page 314

262 Transport

and

for narrow-body aircraft, expansion of the baggage handling system, construction of new taxiways. These projects will be completed in phases before 2012. Meanwhile the AA is building a new air cargo terminal at HKIA. It is expected to be operating by 2011 at a time when demand for space in the existing terminals will surpass supply.

To ensure an uninterrupted supply of aviation fuel, the AA is building a permanent aviation fuel facility at Tuen Mun Area 38. The Director of Environmental Protection gave the go-ahead to build the facility after an extensive risk assessment study showed the proposed facility was safe. The facility has to be in place by 2009 when the existing facility can no longer meet the needs of the fast growing aviation traffic.

Air Services

Under the specific authorisation of the Central People's Government, the HKSAR Government continues to negotiate and conclude bilateral air services agreements with aviation partners to provide the legal framework for scheduled air services. between Hong Kong and other places. At present, there are a total of 58 such agreements.

The Government also reviews actively the traffic rights arrangements with its partners to expand Hong Kong's aviation network and to allow more competition in the market. In 2007, the Government expanded traffic arrangements with 14 aviation partners.

During the year, the Air Transport Licensing Authority (ATLA) granted 27 new licences: two to Cathay Pacific Airways

Airways (CPA), four to Hong Kong Dragon Airlines (HDA), two to AHK Air Hong Kong (AHK), one to Hong Kong Airlines (HKA), eight to Hong Kong Express Airways (HKE), nine to Oasis Hong Kong Airlines (Oasis) and one to Heli Express. The Procedural Guide

ATLA's procedures for processing licence applications is

applications is available on: www.thb.gov.hk/eng/boards/transport/air/atla_procedural_guide.pdf.

on

CPA took delivery of two Airbus A330-300, three Boeing B747-400 and five B777-300ER aircraft during the year. With the expanded fleet, CPA increased the frequency of its long haul services to destinations in North America, Australia and New Zealand. The airline also increased freighter services to destinations in Europe, and Dallas and Atlanta in the United States using its newly added B747-400BCF freighters, converted from passenger aircraft. By the end of the year, CPA operated scheduled services to 53 destinations worldwide.

HDA continued to focus on regional routes after its integration with CPA. The airline launched scheduled passenger air services to Busan, Fukuoka and Kathmandu in January, October and December respectively. It also resumed operations to Sendai in October. Its all-cargo services to New York and passenger services to Tokyo were, however, suspended in April and October respectively. By the end of the year, HDA operated scheduled services to a total of 30 destinations, including 19 cities on the Mainland.