ENG-2018 — Page 283

14.

Transport

arrangements with 51 countries. The government will continue to discuss with other countries. along the Belt and Road and other aviation partners with a view to initiating new air services agreements and expanding existing arrangements.

During the year, the Air Transport Licensing Authority renewed the licences of Cathay Pacific Airways Limited, Hong Kong Airlines Limited and AHK Air Hong Kong Limited.

In 2018, Cathay Pacific Airways operated direct services to 83 destinations worldwide, while Hong Kong Dragon Airlines operated direct services to 49 destinations in Asia. Air Hong Kong operated direct all-cargo services to 12 destinations in Asia. Hong Kong Airlines operated direct services to 43 destinations worldwide. Hong Kong Air Cargo Carrier operated direct all-cargo services to 12 destinations in Asia. Hong Kong Express Airways, the only local low-cost carrier, operated direct services to 28 destinations in Asia and the US (Saipan). All the local airlines. combined had a fleet of 288 aircraft.

Six non-Hong Kong airlines launched new scheduled passenger services to Hong Kong: Shandong Airlines launched services from Jinan in January, Air Belgium rolled out services from Brussels in June, EgyptAir started services from Cairo in September, Thai Smile Airways began services from Bangkok and Phuket in October, SpiceJet commenced services from Delhi in November, and Interglobe Aviation Limited began services from Bengaluru in December.

As regards all-cargo services launched by non-Hong Kong airlines, SpiceJet started services from Kolkata in December.

Air Traffic Management

The Civil Aviation Department's Air Traffic Management System, equipped with enhanced capacity and state-of-the-art design, is capable of handling projected rapid growth in air traffic, including that to be brought about by the 3RS development. The system has been continuously providing safe and reliable air traffic control services to flights operating within. the Hong Kong Flight Information Region since being fully commissioned in 2016. It recorded a 7.1 per cent rise in the number of aircraft movements handled in 2018 compared with 2017.

Aviation Security

Conventions and agreements on aviation security, promulgated by the International Civil Aviation Organisation, are implemented through the Aviation Security Ordinance. The Hong Kong Aviation Security Programme stipulates the aviation security requirements for the various operators and service providers at the airport. The Civil Aviation Department monitors the implementation of these requirements to ensure international standards are met.

International Transport and Logistics

Logistics is an important sector of the economy, accounting for 3.2 per cent of Hong Kong's Gross Domestic Product. Given its strategic location, world-class infrastructure and business- friendly environment, the territory is a preferred transport and logistics hub in Asia, aided by its efficient, reliable and well-connected airport and seaport. It also has one of the world's busiest international air cargo centres and container ports. These achievements are attributed to the

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