U.S. and Hong Kong (2002)

U.S., Hong Kong Agree on Expanded Air Services

Following is the text of the Department of Transportation's October 18
news release on expanded air services between the United States and
Hong Kong:

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Department of Transportation
Friday, October 18, 2002

United States, Hong Kong Reach Agreement On Expanded Air Services

The United States and Hong Kong today reached agreement on air service rights that represents a significant expansion in opportunities for the passenger and cargo carriers of both sides.

"This expansion of the U.S.-Hong Kong aviation relationship will provide enormous benefits for the airlines, travelers, shippers and economies of both sides," U.S. Transportation Secretary Norman Y. Mineta said. "We will continue to seek opportunities to further Liberalize air services in this important market."

The agreement provides a large increase in opportunities for all-cargo carriers, increasing the allowed number of daily flights between Hong Kong and third countries from eight to 64. These flights will be phased in over a three-year period with some limitations on the points that may be served.

In addition, the agreement makes available 28 additional weekly flights for U.S. passenger carriers between Hong Kong and third countries, including Japan, phased in over a two-year period. The additional flights permitted between Hong Kong and Tokyo would be limited to seven per week, and between Hong Kong and Osaka to four per week.

The agreement provides, for the first time, code-sharing rights between the United States and Hong Kong. Hong Kong carriers will receive the right, to be phased in over two years, to serve 25 U.S. cities on a code-share basis with U.S. partners. In addition, carriers of both sides will receive unlimited rights to place their codes on the flights of third-country carriers for U.S.-Hong Kong service.

Also, the passenger and cargo carriers of both sides will be allowed to fly between Hong Kong and any U.S. city. Previously, flights could serve only six U.S. gateways in the continental United States.

Except for where the agreement calls for a phase-in of rights, the Opportunities in the agreement take effect immediately.

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