ENG-2020 — Page 267

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Transport

formation of some 650 hectares of reclaimed land; the construction of the third runway, taxiways and aprons; the Terminal 2 Concourse; a new automated people mover system; a new high-speed baggage handling system; an expanded Terminal 2; and associated support infrastructure.

When in full operation, the Three-Runway System will have the capacity to handle over 100 million passengers and around nine million tonnes of cargo annually, meeting anticipated air traffic demand up to at least 2030.

Air Services

Under the Basic Law, the HKSAR Government negotiates and concludes bilateral air services agreements with aviation partners to provide the legal framework for scheduled air services between Hong Kong and other places. There are 67 such agreements. The HKSAR Government also reviews traffic rights and air services arrangements with its aviation partners to expand the territory's aviation network and allow more competition in the market. In 2020, the government reviewed or expanded air services arrangements with the United Kingdom and Bahrain. Hong Kong has concluded air services agreements or international air transit arrangements with around 50 of the roughly 140 countries along the Belt and Road.

The global outbreak of COVID-19 in 2020 severely impacted the aviation industry and air services in Hong Kong were inevitably affected. As at 31 December, Cathay Pacific Airways Limited (CPA), Hong Kong Airlines Limited and Hong Kong Express Airways Limited operated direct services to 61, 11 and two destinations worldwide, a drop from 78, 29 and 25 destinations respectively pre-COVID. In June, the government announced an investment of around $27 billion in CPA to protect Hong Kong's role as a leading international aviation hub in the region and the city's long-term economic development. The CPA Group also underwent a major restructuring under which around 5,300 local-based employees were laid off and Hong Kong Dragon Airlines Limited ceased operations with effect from 21 October. The operations of the two local all-cargo carriers, AHK Air Hong Kong Limited and Hong Kong Air Cargo Carrier Limited, remained robust, however, with direct services to 14 and 11 destinations respectively as at 31 December, compared to 13 and 12 destinations respectively pre-COVID. By 31 December, the local airlines maintained a total fleet of 253 aircraft.

In July, Greater Bay Airlines applied to the Civil Aviation Department for an Air Operator's Certificate to operate scheduled flights in Hong Kong. Four non-Hong Kong airlines launched new scheduled all-cargo services to Hong Kong in 2020: Air Transport International started services to Guam in July; Aerovias de Mexico, SA de CV commenced services from Mexico City in October; CAL-Cargo Airlines Limited started services from Tel Aviv in November; and AirAsia X Berhad began services from Kuala Lumpur in December.

Air Traffic Management

The Civil Aviation Department's Air Traffic Management System provides safe and reliable air traffic control services to flights operating within the Hong Kong Flight Information Region. Because of COVID-19, the number of aircraft movements handled in 2020 was 65 per cent lower than in 2019.

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